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Deere & Company

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FY2023 Annual Report · Deere & Company
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2023 ANNUAL REPORT

UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
WASHINGTON, D.C. 20549 

FORM 10-K 

(Mark one) 
(cid:1409)  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the fiscal year ended October 29, 2023 

or 

(cid:1407)  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the transition period from ____ to ____ 

Commission file number 1-4121 
DEERE & COMPANY 
(Exact name of registrant as specified in its charter) 

Delaware 
(State of incorporation) 

36-2382580 
(IRS Employer Identification No.) 

One John Deere Place, Moline, Illinois 
(Address of principal executive offices) 

61265 
(Zip Code) 

(309) 765-8000 
(Telephone Number) 

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT 

Title of each class 
Common stock, $1 par value 
6.55% Debentures Due 2028 

Trading symbol 
DE 
DE28 

Name of each exchange on which registered 
New York Stock Exchange 
New York Stock Exchange 

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: NONE 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes (cid:1409) No (cid:1407) 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. 
Yes (cid:1407) No (cid:1409) 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during 
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for 
the past 90 days. 
Yes (cid:1409) No (cid:1407) 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of 
Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 
Yes (cid:1409) No (cid:1407) 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging 
growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in 
Rule 12b- 2 of the Exchange Act. 

Large accelerated filer (cid:1409) 
Non-accelerated filer (cid:1407)  

  Accelerated filer (cid:1407) 
  Smaller reporting company (cid:1407) 
  Emerging growth company (cid:1407) 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or 
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. (cid:1407) 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over 
financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit 
report. (cid:1409) 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing 
reflect the correction of an error to previously issued financial statements. (cid:1407) 

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any 
of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). (cid:1407) 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes (cid:1407) No (cid:1409) 

The aggregate quoted market price of voting stock of the registrant held by non-affiliates at April 28, 2023 was $110,752,079,592. At November 30, 2023, 
280,255,442 shares of common stock, $1 par value, of the registrant were outstanding. 

Documents Incorporated by Reference. Portions of the proxy statement for the annual meeting of stockholders to be held on February 28, 2024 are incorporated 
by reference into Part III of this Form 10-K. 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
TABLE OF CONTENTS 

BUSINESS 
RISK FACTORS 
UNRESOLVED STAFF COMMENTS 
PROPERTIES 
LEGAL PROCEEDINGS 
MINE SAFETY DISCLOSURES 

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER 
PURCHASES OF EQUITY SECURITIES 
[RESERVED] 
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 
CONTROLS AND PROCEDURES 
OTHER INFORMATION 
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 
EXECUTIVE COMPENSATION 
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED 
STOCKHOLDER MATTERS 
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 
PRINCIPAL ACCOUNTANT FEES AND SERVICES 

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 
FORM 10-K SUMMARY 

Page 

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PART I 
ITEM 1. 
ITEM 1A. 
ITEM 1B. 
ITEM 2. 
ITEM 3. 
ITEM 4. 

PART II 
ITEM 5. 

ITEM 6. 
ITEM 7. 
ITEM 7A. 
ITEM 8. 
ITEM 9. 
ITEM 9A. 
ITEM 9B. 
ITEM 9C. 

PART III 
ITEM 10. 
ITEM 11. 
ITEM 12. 

ITEM 13. 
ITEM 14. 

PART IV 
ITEM 15. 
ITEM 16. 

1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART I  

ITEM 1.  

BUSINESS.  

This Annual Report on Form 10-K contains forward-looking statements that are subject to risks and uncertainties. All statements other 
than statements of historical fact included in this Annual Report on Form 10-K are forward-looking statements. Forward-looking 
statements provide our current expectations and projections relating to our financial condition, results of operations, plans, 
objectives, future performance, and business. You can identify forward-looking statements as they do not relate to historical or 
current facts and by words such as “believe,” “expect,” “estimate,” “anticipate,” “will,” “aim,” “should,” “plan,” “forecast,” “target,” 
“guide,” “project,” “intend,” “could,” and similar words or expressions.  

All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that 
we expected. Important factors that could cause actual results to differ materially from our expectations, or cautionary statements, 
and other important information about forward-looking statements are disclosed under Item 1A, “Risk Factors,” and Item 7, 
“Management’s Discussion and Analysis of Financial Condition and Results of Operations–Forward-Looking Statements,” in this 
Annual Report on Form 10-K.  

As used herein, the terms “John Deere,” “we,” “us,” “our,” or “the Company” refer to Deere & Company and its subsidiaries unless 
designated or identified otherwise. All amounts are presented in millions of dollars, unless otherwise specified. 

Products 

The John Deere enterprise has manufactured agricultural equipment since 1837. Deere & Company was incorporated under the laws of 
Delaware in 1958. Our business is managed through the following four business segments: production and precision agriculture (PPA), 
small agriculture and turf (SAT), construction and forestry (CF), and financial services (John Deere Financial or FS). 

BUSINESS SEGMENT 

PRODUCTION AND 
PRECISION 
AGRICULTURE 

SMALL 
AGRICULTURE 
AND TURF 

CONSTRUCTION 
AND FORESTRY 

FINANCIAL 
SERVICES 

PRODUCTS 

CROPS/FUNCTION 

• 

• 
• 

• 

• 

• 

• 

• 
• 
• 
• 

Large and Certain  

Mid-Size Tractors 

Combines 

Cotton Pickers and 

Cotton Strippers  

Sugarcane 

Harvesters 

Sugarcane Loaders 

and Pull Behind 

Scrapers 

Soil Preparation, 

Seeding, 

Application, and 

Crop Care 

Equipment 

Tillage Equipment  

Corn and Soy 

Small Grain 

Cotton 

Sugarcane 

• 

• 

• 

• 
• 
• 

• 

• 
• 

• 

• 

Certain Mid-Size, 

Utility, and Compact 

Utility Tractors 

Self-Propelled 

Forage Harvesters 

Hay and Forage 

Equipment  

Rotary Mowers  

Utility Vehicles  

Riding Lawn 

Equipment and 

Commercial 

Mowing Equipment 

Golf Course 

Equipment   

Dairy and Livestock 

Lawn and Property 

Maintenance  

Golf Course 

Maintenance  

High-Value Crop 

Solutions 

2 

• 
• 

• 

• 

• 

• 

• 

• 
• 
• 

Backhoe Loaders 

Crawler Dozers and 

Loaders  

Four-Wheel-Drive 

Loaders and 

Compact Track 

Loaders  

Excavators and 

Compact Excavators  

Equipment used in 

Timber Harvesting  

Road Building and 

Road Rehabilitation 

Equipment  

Articulated Dump 

Trucks and Motor 

Graders  

Earthmoving 

Forestry 

Roadbuilding 

• 
• 

Retail Notes  

Revolving Charge 

Accounts 
•  Wholesale 
Receivables 

• 
• 

Leases  

Extended Warranties  

• 

Financial Solutions  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Smart Industrial Operating Model and Leap Ambitions 

In fiscal year 2020, we announced our Smart Industrial Operating Model. The model is based on the following three focus areas:  

1.  Production Systems. A strategic alignment of products and solutions around our customers’ production systems. Production 
systems refer to the series of steps our customers take to execute different tasks, operations, and projects to grow an 
agricultural product or execute a project.  

2.  Technology Stack. Investments in technology, as well as research and development, that deliver intelligent solutions to our 

customers through hardware and devices, embedded software, connectivity, data platforms, and applications. The technology 
stack leverages the core technologies mentioned in the previous sentence across the enterprise, including digital capabilities, 
automation, autonomy, and alternative power technologies. The stack has the potential to unlock economic and sustainable 
value for customers by optimizing jobs, strengthening decision-making, and better connecting the steps of a production system.  
3.  Lifecycle Solutions. The enterprise integration of our aftermarket and support capabilities to more effectively manage customer 
equipment, service, and technology needs across the full lifetime of a John Deere product, and with a specific lifecycle solution 
focus on the ownership experience. This integrated support seeks to enhance customer value through proactive and reactive 
support, easy access to parts, value-add services, and precision upgrades, regardless of when a customer purchases our 
equipment. 

Building upon the Smart Industrial Operating Model, we announced our Leap Ambitions framework in fiscal year 2022. The Leap 
Ambitions are designed to boost economic value and sustainability for our customers. The ambitions align across our customers’ 
production systems seeking to optimize their operations to deliver better outcomes with fewer resources.  

The Leap Ambitions framework has three components: (i) size the incremental market opportunity, quantifying the value that can be 
created; (ii) identify the key actions required to guide investment in digitalization, autonomy, automation, and alternative power 
technologies; and (iii) define the desired financial and sustainable outcomes we hope to achieve to help investors and stakeholders 
understand the opportunities that can be unlocked in the future through present investments. Applying this framework, the Leap 
Ambitions set goals to measure the results under our Smart Industrial Operating Model. Current financial and sustainability goals for the 
Leap Ambitions relate to workforce safety, agriculture customer outcomes, product circularity, environmental footprint, Solutions as a 
Service, and equipment operations operating return on sales (OROS).  

We aim to deliver ongoing value across our product lines by digitally connecting certain equipment we produce, enabling our customers to 
leverage technology for better economic and more sustainable outcomes in their businesses. We are introducing viable alternative power 
technologies for various product families. We also plan to enhance how we deliver value by introducing and scaling a Solutions as a Service 
business model. 

We also aim to enable our agriculture customers to be more sustainable in their production steps by providing technology solutions that 
help to improve their nitrogen use efficiency, increase their crop protection efficiency, and reduce their CO2e emissions.  

We believe we will deliver ongoing value to our SAT customers by increasing the connectivity of their equipment, offering electric options 
where feasible in our product families, and working toward production of a fully autonomous, battery powered electric agricultural tractor. 
For our CF customers, we aim to deliver ongoing value by offering electric and hybrid-electric options where feasible in our product 
families and increasing the use of grade management control for earthmoving customers, intelligent boom control for forestry customers, 
and precision roadbuilding solutions for our roadbuilding customers.  

We anticipate enabling sustainable outcomes for our customers. Specifically, we aim to enable our agriculture customers to be more 
sustainable in their production steps by providing technology solutions that help to improve their nitrogen use efficiency, increase their 
crop protection efficiency, and reduce their CO2e emissions.  

Available Information  

Our internet address is http://www.deere.com. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on 
Form 8-K, and amendments to those reports are available on our website free of charge as soon as reasonably practicable after they 
are filed or furnished with the United States Securities and Exchange Commission (SEC or Commission). The information contained on 
our website is not included in, nor incorporated by reference into, this Annual Report on Form 10-K. 

Equipment Operations 

Our equipment operations consist of three of our business segments: PPA, SAT, and CF. In fiscal year 2023, PPA generated $26,790 
net sales and revenue, or 48 percent of equipment operations net sales and revenues; SAT generated $13,980 net sales and revenues, 
or 25 percent of equipment operations net sales and revenues; and CF generated $14,795 net sales and revenues, or 27 percent of 
equipment operations net sales.  

3 

Production and Precision Agriculture  

As compared with fiscal year 2022, PPA net sales for fiscal year 2023 were: 

(In millions of dollars) 

Net Sales 

2023 

$26,790 

2022 

$22,002 

% Change 

22% 

The PPA segment is committed to meeting the fundamental needs of our customers through a combination of equipment and 
technology designed to enable our customers to overcome some of their biggest challenges: doing more with less, labor shortages, 
volatile input costs, and executing jobs in tighter timeframes. This segment defines, develops, and delivers global equipment and 
technology solutions for production-scale growers of crops like large grains (such as corn and soy), small grains (such as wheat, oats, 
and barley), cotton, and sugarcane. Equipment manufactured and distributed by the segment includes large and certain mid-size 
tractors, combines, cotton pickers, cotton strippers, sugarcane harvesters, related harvesting front-end equipment, and pull-behind 
scrapers. In addition, the segment includes tillage, seeding, and application equipment, including sprayers and nutrient management 
and soil preparation machinery. 

We have been bringing innovations to agriculture for nearly 200 years and continue to invest in the development and production of 
advanced technology through integrated agricultural solutions and precision technologies across our portfolio of equipment. We 
have developed a differentiated, production system-level approach that helps us understand how customers operate, focusing on 
their costs, identifying the opportunities for them to reduce inputs, and increasing productivity, yield improvement, and sustainability. 
This approach directs our work. Advancements such as precise global navigation satellite systems technology, advanced connectivity 
and telematics, on-board sensors and computing power, automation software, digital tools, applications, and analytics provide 
seamless integration of information designed to improve customer decision-making and job execution. Our advanced telematics 
systems remotely connect equipment owners, business managers, and dealers to equipment in the field. This provides real-time alerts 
and information about equipment location, utilization, performance, and maintenance to improve productivity and efficiency, as well 
as to monitor agronomic job execution.  

We aim to support our customers and their equipment throughout the entire equipment lifecycle. To prevent downtime, we offer a wide 
variety of aftermarket and customer solutions to keep equipment running, including machine monitoring, remote diagnostics, predictive 
maintenance alerts, and e-commerce solutions.  

Examples of recent developments to unlock customer value and address challenges in the field include ExactShot™ and FurrowVision, 
which help customers reduce inputs during planting applications, generating cost savings, and lowering their environmental footprint; 
our fully autonomous 8R tillage tractor with a GPS guidance system and stereo cameras to execute tillage work without an in-cab 
operator, which helps to address farmers’ labor challenges and time constraints; and See & Spray™ Ultimate, which targets the 
application of non-residual herbicides on weeds in corn, soybean, and cotton fields. 

In addition to John Deere brand names, the table below provides a list of PPA products and their associated brand names: 

PRODUCT 

Sprayers 

Planters and Cultivators 

Sprayers and Planters 

Carbon Fiber Sprayer Booms 

Sugarcane Harvester Aftermarket Parts 

BRAND NAME 

Hagie, Mazzotti 

Monosem 

PLA 

King Agro 

Unimil 

Aftermarket Parts for PPA Products 

Vapormatic, A&I, Unimil, Alternatives by John Deere 

4 

 
 
 
 
 
 
 
 
 
 
 
Small Agriculture and Turf  
As compared with fiscal year 2022, SAT net sales for fiscal year 2023 were: 

(In millions of dollars) 

Net Sales 

2023 

$13,980 

2022 

$13,381 

% Change 

4% 

SAT is committed to meeting the needs of our customers through defining, developing, and delivering global equipment and 
technology solutions designed to unlock customer value and sustainability for dairy and livestock producers, high-value crop 
producers, and turf and utility customers. The segment works to provide product leadership while extending integrated agricultural 
solutions and precision technologies across its portfolio of equipment to unlock incremental value for customers. Similar to PPA, the 
SAT segment aims to support customers and their equipment through the entire equipment lifecycle. 

Equipment manufactured and distributed by the segment includes certain mid-size, small and utility tractors, and related loaders and 
attachments; turf and utility equipment, including riding lawn equipment, commercial mowing equipment, golf course equipment, 
utility vehicles, implements for mowing, tilling, snow and debris handling, aerating, and other residential, commercial, golf, and sports 
turf care applications; and hay and forage equipment, including self-propelled forage harvesters and attachments, balers, and 
mowers. SAT equipment is sold primarily through independent retail dealer networks, although the segment also builds turf products 
for sale by mass retailers, including The Home Depot and Lowe’s. Our turf equipment is sold primarily in North American, Western 
European, and Australian markets. 

In the small agriculture market, we have introduced autonomous solutions, connectivity capabilities, and a path to electrifying our future 
by delivering a portfolio that helps current customers meet sustainability goals while finding innovative ways to serve new customers and 
unlock new markets for mechanization, at scale. For example, our joint venture with GUSS Automation, LLC in fiscal year 2022 added to 
our portfolio an autonomous sprayer to target our high value crop customers’ needs. In fiscal year 2023, we announced the acquisition of 
Smart Apply, Inc., a precision spraying equipment company. The Smart Apply Intelligent Spray Control System™ stacked with GUSS 
Automation’s remote sprayer is aimed at the needs of our high-value crop customers to improve their productivity and optimize inputs. On 
the turf side of the business, in fiscal year 2023 we launched two battery-powered walk behind mowers and announced certain hybrid 
innovations.  

In addition to John Deere brand names, the table below provides a list of SAT products and their associated brand names: 

PRODUCT 

Equipment Attachments 

Aftermarket Parts for SAT 

BRAND NAME 

Frontier, Kemper, GreenSystem, Smart Apply 

Vapormatic, A&I, Sunbelt, Alternatives by John Deere 

Agriculture and Turf Operations 

Smart Industrial Operating Model. Our PPA and SAT segments offer a full line of agriculture and turf equipment and related service 
parts. As part of our Smart Industrial Operating Model, the segments are aligned around production systems, enabling focus on 
delivering equipment, technology, and solutions across all the jobs customers execute during a season. Sales and marketing support 
for both the PPA and SAT segments continues to be organized around four geographic regions: U.S., Canada, and Australia; Latin 
America and South America; Europe, Middle East, and the Commonwealth of Independent States (CIS); and Africa and Asia. 

Business Environment. Sales of agricultural equipment are affected by total farm cash receipts, which reflect levels of farm 
commodity prices, acreage planted, crop yields, and government policies, including global trade policies, the amount and timing of 
government payments, and policies related to climate change. Sales also are influenced by general economic conditions, farmland 
prices, farmers’ debt levels and access to financing, interest and exchange rates, agricultural trends, including the production of and 
demand for renewable fuels, labor availability and costs, energy costs, tax policies, and other input costs associated with farming. 
Other key factors affecting new agricultural equipment sales are the value, age, and level of used equipment, including tractors, 
harvesting equipment, self-propelled sprayers, hay and forage equipment, and seeding equipment. Weather and climatic conditions 
also can affect buying decisions of agricultural equipment purchasers. 

Innovations in machinery and technology also influence agricultural equipment purchasing. For example, larger, more productive 
equipment is well accepted where farmers are striving for more efficiency in their operations. Large, cost-efficient, highly mechanized 
agricultural operations account for an important share of worldwide farm output. These customers are increasingly adopting and 
integrating precision agricultural technologies like guidance, telematics, automation, and data management in their operations. The 
large-size agricultural equipment used on such farms has been particularly important to us. A large proportion of the equipment 

5 

 
 
 
 
 
 
 
 
 
 
operations’ total agricultural equipment sales in the U.S. and Canada, as well as in many countries outside the U.S. and Canada, are 
comprised of tractors over 100 horsepower, self-propelled combines, self-propelled cotton pickers, self-propelled forage harvesters, 
self-propelled sprayers, and seeding equipment. However, small tractors are also an important part of our global business. Further, we 
offer a number of harvesting solutions to support development of the mechanized harvesting of grain, oilseeds, cotton, sugarcane, 
forage, and biomass. 

Retail sales of lawn and garden tractors, compact utility tractors, residential and commercial mowers, utility vehicles, and golf and turf 
equipment are influenced by the housing market, weather conditions, consumer spending patterns, and general economic conditions 
like unemployment, interest, and inflation rates. 

Seasonality. Seasonal patterns in retail demand for agricultural equipment can result in substantial variations in the volume and mix of 
products sold to retail customers during the year. Seasonal demand must be estimated in advance, and equipment must be 
manufactured in anticipation of such demand to achieve efficient utilization of personnel and facilities throughout the year. The PPA 
and SAT segments can incur substantial seasonal variations in cash flows to finance production and inventory of agricultural and turf 
equipment. The segments also incur costs to finance sales to dealers in advance of seasonal demand. 

For certain equipment, we offer early order programs, which can include discounts to retail customers that place orders well in 
advance of the use season. Production schedules are based, in part, on these early order programs; however, during periods of high 
demand, some factories may still produce after the use season. New combine and cotton harvesting equipment has been sold under 
early order programs with waivers of retail finance charges available to customers who take delivery of machines during non-use 
seasons.  

In Australia, Canada, and the U.S., there are typically several used equipment trade-in transactions that take place in connection with 
most new agricultural equipment sales. To provide support to our dealers in these countries for carrying and ultimately selling this 
used inventory to retail customers, we provide these dealers with pools of funds awarded as a percentage of the dealer cost for 
eligible new equipment sales at the time of the new equipment settlement. 

Retail demand for turf and utility equipment is normally higher in the second and third fiscal quarters. We have pursued a strategy of 
building and shipping such equipment as close to retail demand as possible. Consequently, to increase asset turnover and reduce the 
average level of field inventories throughout the year, production and shipment schedules of these product lines are normally 
proportionately higher in the second and third fiscal quarters of each year, corresponding closely to the seasonal pattern of retail 
sales. However, the patterns of seasonality have been affected by the supply chain disruptions experienced during fiscal year 2022. 

Construction and Forestry 

As compared with fiscal year 2022, CF net sales for fiscal year 2023 were: 

(In millions of dollars) 

Net Sales  

2023 

$14,795 

2022 

$12,534 

% Change 

18% 

Our CF segment is committed to meeting the need for smart and more sustainable solutions to help our customers meet industry 
challenges, including jobsite safety, a shortage of skilled labor, volatile input costs, reducing rework, maximizing uptime, and 
minimizing their environmental footprint. CF also aims to support customers and their equipment through the entire equipment 
lifecycle (see PPA section above). 

To address these challenges and unlock value for customers, we deliver a robust portfolio of construction, roadbuilding, and forestry 
products with precision technology solutions. Our smart solutions such as SmartWeigh™, grade control offerings, machine and system 
automation, and operations center, are designed to allow customers to complete more functions with fewer inputs, reduce rework and 
guesswork, and transform data into insights to allow for better decisions. Obstacle detection solutions such as SmartDetect™ supplements 
operator visibility on the jobsite through a combination of cameras, radar, and machine learning. Additionally, we plan to deliver hybrid-
electric and battery electric equipment solutions to help customers reduce tailpipe emissions without sacrificing power and performance. 
We currently have the 644X four-wheel-drive loader and 944X four-wheel-drive loader in production with an electric drive coupled with a 
diesel engine.  

Our primary construction products include excavators, wheel loaders, motor graders, dozers, backhoes, articulated dump trucks, compact 
construction equipment including skid steers, compact excavators, and compact track loaders, along with a variety of attachments. Our 
Wirtgen roadbuilding products include milling machines, pavers, compactors, rollers, crushers, screens, and asphalt plants. Similar to the 
construction product lineup, the Wirtgen brand also provides a technology stack aimed at allowing customers to make smarter and more 
sustainable decisions. Technology offerings include Wirtgen Performance Tracker, Mill Assist, Level Pro, Vögele Roadscan, Smart 
Compact, WITOS Paving, Spective Connect, AutoTrac™, and John Deere Connected Support™. 

6 

 
 
 
 
 
 
In forestry, our primary products include skidders, wheeled and tracked feller bunchers, forwarders, knuckleboom loaders, wheeled and 
tracked harvesters, swing machines, and precision forestry technology solutions such as Intelligent Boom Control, TimberMatic™ maps, 
and TimberManager™. These solutions allow customers to closely track jobsite progress and provide visibility into fleet location, utilization, 
performance, and maintenance information.  

We have a number of initiatives in the rent-to-rent, or short-term rental, market for construction, earthmoving, roadbuilding, and 
material handling equipment. These include specially designed rental programs for our dealers and expanded cooperation with major 
national equipment rental companies.  

We own retail forestry sales operations in Australia, Brazil, Finland, Ireland, New Zealand, Norway, Sweden, and the United Kingdom. 
In addition, the Wirtgen Group sells its products primarily through company-owned sales and service subsidiaries in many markets 
worldwide (most significantly in Europe, India, and Australia). In most other geographies, we sell through an independent dealer 
channel.  

The prevailing levels of residential, commercial, and public construction, investment in infrastructure, and the condition of the 
forestry products industry influence retail sales of our construction, roadbuilding, and forestry equipment. General economic 
conditions, interest rate levels, the availability of credit, and certain commodity prices, such as those applicable to oil and gas, pulp, 
paper, and saw logs, also influence sales. 

In addition to John Deere brand names, the table below provides a list of CF products and their associated brand names: 

PRODUCT 

Roadbuilding Equipment 

BRAND NAME 

Wirtgen, Vögele, Hamm, Kleemann, Benninghoven, and 
Ciber 

Forestry Attachments 

Waratah 

Competition 

The equipment operations sell products and services in a variety of competitive global and regional markets. The principal competitive 
factors in all markets include product performance, innovation, quality, distribution, sustainability, customer service, and value. John 
Deere’s brand recognition is a competitive factor in North America and many other parts of the world. 

The agricultural equipment industry continues to change and is becoming even more competitive through the emergence and 
expanding global capability of many competitors. The competitive environment for the agriculture and turf operations includes some 
global competitors, including AGCO Corporation, CLAAS KGaA mbH, CNH Industrial N.V., Kubota Tractor Corporation, Mahindra & 
Mahindra Limited, and The Toro Company, as well as many regional and local competitors. These competitors have varying numbers 
of product lines competing with our products and each has varying degrees of regional focus. Additional competition within the 
agricultural equipment industry has come from a variety of short-line and specialty manufacturers, as well as local or regional 
competitors, with differing manufacturing and marketing methods. As technology increasingly enables enhanced productivity in 
agriculture, the industry is also attracting non-traditional competitors, including technology-focused companies and start-up 
ventures.  

Our forestry and roadbuilding businesses operate globally. The construction business operates in competitive markets in North and 
South America, as well as other global markets. Global competitors of the CF segment include Caterpillar Inc., CNH Industrial N.V., 
Doosan Infracore Co., Ltd. and its subsidiary Doosan Bobcat Inc., Fayat Group, GOMACO Corporation, Hitachi Construction 
Machinery, Komatsu Ltd., Kubota Tractor Corporation, Ponsse Plc, SANY Group Co., Ltd., Terex, Tigercat Industries Inc., Volvo 
Construction Equipment (part of Volvo Group AB), and XCMG.  

Manufacturing and Assembly 

Common manufacturing processes and techniques are used in producing components for PPA, SAT, and CF equipment sold by us and our 
dealers. The equipment operations also pursue external sales of selected parts that can be manufactured and supplied to third parties on a 
competitive basis, including engines, power train components, and electronic components. The equipment operations’ manufacturing 
strategy involves four elements: Build a Stronger Business, Deliver Innovation, Excite the Customer, and Live the Team.(cid:3031) 

Build a Stronger Business refers to our ability to execute lean initiatives supported by safety, quality, delivery, and productivity goals.  

Deliver Innovation refers to implementing our digitally connected factory projects to improve efficiency and differentiated value.(cid:3031)We 
implement technology solutions to support our factories across the globe to increase our speed of manufacturing innovation and allow 
the workforce to focus on high-value tasks.  

7 

 
 
 
 
Excite the Customer refers to designing operations to be flexible and accommodate product design changes to meet market conditions 
and changing customer requirements.  

Live the Team refers to building a safety culture by ensuring that employees are safe at work.  

To utilize manufacturing facilities and technology more effectively, the equipment operations pursue continuous improvements in 
manufacturing processes, including steps to streamline manufacturing processes and enhance responsiveness to customers. Our flexible 
assembly lines can accommodate a wider product mix and deliver products in line with dealer and customer demand. Additionally, 
considerable effort is being directed to manufacturing cost reduction through process improvement and improvements in product design, 
advanced manufacturing technology, and supply management and logistics, as well as compensation incentives related to productivity 
and organizational structure.  

See Item 2 “Properties” in this Annual Report on Form 10-K for more information about our manufacturing facilities. 

Patents, Trademarks, Copyrights, and Trade Secrets 

We own a significant number of patents, trademarks, copyrights, trade secrets, and intellectual property licenses related to our 
products and services and expect the number to grow as we continue to pursue technological innovations. We further our 
competitive position by filing patent and trademark applications in the U.S. and internationally to protect technology, improvements 
considered important to the business, and our brand. We believe that, taken together, our rights under these patents and licenses are 
important to our operations and competitive position, but do not regard any of our businesses as being dependent upon any single 
patent or family of patents. See “Risk Factors- Our business could be adversely affected by the infringement or loss of intellectual 
property rights” for more information. 

Sales and Distribution  

Through the U.S. and Canada, we market products to approximately 2,050 independent dealer locations. Of these, approximately 
1,600 sell agricultural equipment, while approximately 450 sell construction, earthmoving, material handling, roadbuilding, and/or 
forestry equipment. In addition, roadbuilding equipment is sold at approximately 90 roadbuilding-only locations that may carry 
products that compete with our construction, earthmoving, material handling, and/or forestry equipment. Turf equipment is sold at 
most John Deere agricultural equipment locations, a few construction, earthmoving, material handling, roadbuilding, and/or forestry 
equipment locations, and about 280 turf-only locations, many of which also sell dissimilar lines of non-John Deere products. In 
addition, certain lawn and garden product lines are sold through The Home Depot and Lowe’s. 

Outside the U.S. and Canada, our agriculture and turf equipment is sold to distributors and dealers for resale in over 100 countries. 
Sales and administrative offices are in Argentina, Australia, Brazil, China, France, Germany, India, Italy, Mexico, Poland, Singapore, 
Sweden, South Africa, Spain, Ukraine, and the United Kingdom. Turf equipment sales outside the U.S. and Canada occur primarily in 
Western Europe and Australia. Construction, earthmoving, material handling, and forestry equipment is sold to distributors and 
dealers primarily by sales offices located in Australia, Brazil, Finland, New Zealand, Singapore, and the United Kingdom. Some of these 
dealers are independently owned while we own others. Roadbuilding equipment is sold directly to retail customers and independent 
distributors and dealers for resale. As of November 1, 2022, we did not renew dealer agreements in Russia, and in October 2023, we 
sold our roadbuilding business in Russia. Consequently, we no longer sell equipment in Russia. The Wirtgen Group operates company-
owned sales and service subsidiaries in Australia, Austria, Belgium, Bulgaria, China, Denmark, Estonia, Finland, France, Georgia, 
Germany, Hungary, India, Ireland, Italy, Japan, Latvia, Lithuania, Malaysia, the Netherlands, Norway, Poland, Romania, South Africa, 
Sweden, Taiwan, Thailand, Turkey, Ukraine, and the United Kingdom. The equipment operations operate centralized parts distribution 
warehouses in the U.S., Brazil, and Germany in coordination with regional parts depots and distribution centers in Argentina, Australia, 
China, India, Mexico, South Africa, Sweden, and the United Kingdom. 

We market engines, power trains, and electronic components worldwide through select sales branches or directly to regional and 
global original equipment manufacturers and independently owned engine distributors. 

Raw Materials 

We purchase raw materials, manufactured components, and replacement parts for our equipment, engines, and other products from 
leading suppliers both domestically and internationally. These materials and components include a variety of steel products, metal 
castings, forgings, plastics, hydraulics, electronics, and ready-to-assemble components made to certain specifications. We also 
purchase various goods and services used for production, logistics, offices, and research and development. We develop and maintain 
sourcing strategies for our purchased materials and emphasize long-term supplier relationships at the core of these strategies. We 
use a variety of agreements with suppliers intended to drive innovation, ensure availability and delivery of industry-leading quality raw 
materials and components, manage costs on a globally competitive basis, protect our intellectual property, and minimize other supply-
related risks. We actively monitor supply chain risks to minimize the likelihood of business disruptions caused by the supply base, 

8 

including supplier financial viability, capacity, business continuity, labor availability, quality, delivery, cybersecurity, weather-related 
events, and natural disasters. We have implemented mitigation efforts to minimize the impact of potential and actual supply chain 
disruptions on our customers. Examples include working with the supply base to prioritize allocations to improve material availability, 
multi-sourcing selected parts and materials, entering long term contracts for some critical components, and using alternative freight 
carriers to expedite delivery.  

Backlog Orders 

The dollar amount of backlog orders as of October 29, 2023 was approximately $7.9 billion for the PPA segment and $3.3 billion for the 
SAT segment, compared with $9.7 billion and $4.6 billion, respectively, at October 30, 2022. The agriculture and turf backlog are generally 
highest in the second and third quarters due to seasonal buying trends in these industries. The dollar amount of backlog orders for the CF 
segment was approximately $6.4 billion at October 29, 2023, compared with $8.2 billion at October 30, 2022, including, for both periods, 
backlog orders for roadbuilding equipment, which had not historically been included in discussions of the CF segment’s backlog orders. 
Backlog orders for equipment operations include all orders deemed to be firm as of the referenced date. Backlog orders decreased as 
demand has declined. 

Financial Services 

U.S. and Canada. The financial services segment primarily provides and administers financing for retail purchases from our dealers of 
new equipment manufactured by our agricultural and turf and construction and forestry markets, as well as used equipment taken in 
trade for this equipment. The Company and John Deere Construction & Forestry Company (a wholly owned subsidiary of the 
Company) are referred to as the “sales companies.” John Deere Capital Corporation (Capital Corporation), a U.S. financial services 
subsidiary, generally purchases retail installment sales and loan contracts (retail notes) from the sales companies. In Canada, John 
Deere Financial Inc., a Canadian financial services subsidiary, purchases and finances retail notes acquired by John Deere Canada ULC, 
our Canadian sales company. The terms of retail notes and the basis on which the financial services operations acquire retail notes 
from the sales companies are governed by agreements with the sales companies. The financial services segment also finances and 
services revolving charge accounts, in most cases acquired from and offered through merchants in the agricultural and turf markets. 
Additionally, the financial services operations provide wholesale financing to dealers of our agriculture and turf equipment and 
construction and forestry equipment (wholesale notes), primarily to finance inventories of equipment for those dealers. The various 
financing options offered by the financial services operations are designed to enhance sales of our products and generate financing 
income for the financial services operations. In the U.S. and Canada, certain subsidiaries included in the financial services segment 
offer extended equipment warranties. 

Retail notes acquired by the sales companies are immediately sold to the financial services operations. The equipment operations are 
the financial services operations’ major source of business, although many retail purchasers of our products finance their purchases 
outside our organization through a variety of sources, including commercial banks and finance and leasing companies. 

The financial services operations offer retail leases to equipment users in the U.S. A small number of leases are executed with units of 
local governments. Leases are usually written for periods ranging from less than one year to seven years, and typically contain an 
option permitting the customer to purchase the equipment at the end of the lease term. Retail leases also are offered in a generally 
similar manner to customers in Canada. 

The financial services operations’ terms for financing equipment retail sales (other than smaller items financed with unsecured 
revolving charge accounts) generally provide for retention of a security interest in the equipment financed. Finance charges are 
sometimes waived for specified periods or reduced on certain John Deere products sold or leased in advance of the season of use or in 
other sales promotions. The financial services operations generally receive compensation from the sales companies at approximate 
market interest rates for periods during which finance charges are waived or reduced on the retail notes or leases. The cost is 
accounted for as a deduction in arriving at net sales by the equipment operations.  

We have an agreement with Capital Corporation to make payments to Capital Corporation such that its consolidated ratio of earnings 
to fixed charges is not less than 1.05 to 1 for any four consecutive fiscal quarterly periods. We also have committed to continuing to 
own, directly or through one or more wholly-owned subsidiaries, at least 51 percent of the voting shares of capital stock of Capital 
Corporation and to maintain Capital Corporation’s consolidated tangible net worth at not less than $50 million. Our obligations to 
make payments to Capital Corporation under this agreement are independent of whether Capital Corporation is in default on its 
indebtedness, obligations, or other liabilities. Further, our obligations under the agreement are not measured by the amount of 
Capital Corporation’s indebtedness, obligations, or other liabilities. Our obligations to make payments under this agreement are 
expressly stated not to be a guaranty of any specific indebtedness, obligation, or liability of Capital Corporation and are enforceable 
only by or in the name of Capital Corporation. As of October 29, 2023, we were in compliance with all of our obligations, and no 
payments were required under this agreement in fiscal year 2023 or fiscal year 2022. At October 29, 2023, we indirectly owned 

9 

100 percent of the voting shares of Capital Corporation’s capital stock and Capital Corporation’s consolidated tangible net worth was 
$5,901.6 million. 

Outside the U.S. and Canada. The financial services operations also offer financing, primarily for our products, in Argentina, Australia, 
Brazil, China, India, Mexico, New Zealand, and in several other countries in Africa, Asia, Europe, and Latin America. John Deere 
Financial sold its financial services business in Russia during the second quarter of fiscal year 2023. In certain markets, financing is 
offered through cooperation agreements or joint ventures with other financial institutions. The way the financial services operations 
offer financing in these countries is affected by a variety of country-specific laws, regulations, and customs, including those 
governing property rights and debtor obligations, which are subject to change, and which may introduce greater risk to the financial 
services operations. 

The financial services operations also offer to select customers and dealers credit enhanced international export financing primarily 
for the purchase of our products. 

Additional information on the financial services operations is provided in the “Management’s Discussion and Analysis of Financial 
Condition and Results of Operations” (MD&A) section in this Annual Report on Form 10-K.  

Environmental Matters 

We are subject to a variety of local, state, and federal environmental laws and regulations in the U.S., as well as the environmental 
laws and regulations of other countries in which we conduct business. We strive to comply with applicable laws and regulations; 
however, in the event of noncompliance, we could be subject to fines and other penalties. Compliance with these laws and regulations 
adds to the cost of our production operations. Compliance with emissions regulations adds to the cost of our products. However, we 
do not expect to incur material capital expenditures for environmental control facilities during fiscal year 2024. In addition to ensuring 
compliance with laws and regulations, we aim to reduce our environmental footprint through our Leap Ambitions framework and seek 
opportunities to reduce environmental impacts on the communities where we operate. 

The U.S., the European Union (EU), India, and other governments throughout the world have enacted, and continue to enact, laws and 
regulations to reduce off-road engine emissions. Compliance with these regulations requires significant investments in the 
development of new engine technologies and after-treatment systems.  

Governments also are implementing laws regulating products across their life cycles, including raw material sourcing and the storage, 
distribution, sale, use, and disposal of products at their end-of-life. These laws and regulations include requirements to develop less 
hazardous chemical substances and products, right-to-know, restriction of hazardous substances, and product take-back laws.  

We are evaluating, cleaning-up, or conducting corrective action at a limited number of sites. We do not expect that these matters or 
other expenses or liabilities we may incur in connection with any noncompliance with environmental laws, regulations, or the clean-up 
of any additional properties, will have a material adverse effect on our consolidated financial position, results of operations, cash 
flows, or competitive position. 

We continue to monitor and review developing sustainability frameworks, standards, and global regulations and work to incorporate 
those most applicable to our business into our sustainability reporting.  

With respect to properties and businesses that have been or will be acquired, we conduct due diligence into potential exposure to 
environmental liabilities but cannot be certain that we have identified, or will identify, all adverse environmental conditions. 
Compliance with these laws and regulations adds to the cost of our production operations. Compliance with emissions regulations 
adds to the cost of our products. However, we do not expect to incur material capital expenditures for environmental controls 
facilities during fiscal year 2024. In addition to ensuring compliance with laws and regulations, we aim to reduce our environmental 
footprint through our Leap Ambitions framework and seek opportunities to reduce environmental impacts on the communities where 
we operate. 

New regulations applicable to John Deere products 

California promulgated regulations prohibiting the use of small off-road spark-ignition engines under 25 horsepower. These 
regulations go into effect in 2024 and will impact some of our products, such as our turf care and golf course maintenance products. 
Even though we do not expect a material impact to our business from these regulations, to comply with new laws and regulations that 
limit off-road gasoline and diesel-powered engines, we intend to offer an electric option in each turf and compact utility tractor 
product family by 2026. However, compliance with emissions regulations has added, and will continue to add, to the cost of our 
products. 

10 

 
 
Government Regulations 

We are subject to a wide variety of local, state, and federal laws and regulations in the countries where we operate. These laws and 
regulations include a range of trade, product, foreign exchange, employment, tax, environmental, safety, data privacy, antitrust, and 
other laws and regulations.  

Compliance with these laws and regulations often requires the dedication of time and effort of our employees, as well as financial 
resources. In fiscal year 2023, compliance with the regulations applicable to us did not have a material effect on our capital 
expenditures, earnings, or competitive position. At this time, we do not expect to incur material capital expenditures related to 
compliance with regulations during fiscal year 2024. Additional information about the impact of government regulations on our 
business is included in Item 1A, “Risk Factors – Strategic Risks” and “Legal and Compliance Risks.” 

Human Capital 

Higher Purpose 

Our employees are guided by our higher purpose: We run so life can leap forward. Employees are further guided by our Code of 
Business Conduct (Code), which helps them to uphold and strengthen the standards of honor and integrity that have defined us since 
our founding. Our world and business may change, yet we continue to be guided by our core values — integrity, quality, commitment, 
and innovation.  

Employees 

At October 29, 2023, we had approximately 83,000 employees, including approximately 33,800 employees in the U.S. and Canada. 
We also retain consultants, independent contractors, temporary, and part-time workers. Unions are certified as bargaining agents for 
approximately 80 percent of our U.S. production and maintenance employees. Approximately 11,500 of our active U.S. production and 
maintenance workers are covered by a collective bargaining agreement with the International Union, United Automobile, Aerospace 
and Agricultural Implement Workers of America (UAW), with an expiration date of November 1, 2027. A small number of U.S. 
production employees are represented by the International Association of Machinists and Aerospace Workers (IAM). Collective 
bargaining agreements covering our employees in the U.S. expire between 2024 and 2027. Unions also represent the majority of 
employees at our manufacturing facilities outside the U.S. 

There is no guarantee that we will be able to renew collective bargaining agreements or whether such agreements will be on terms 
satisfactory to us. For further discussion, see “Risk Factors—Disputes with labor unions may adversely affect our ability to operate in 
our facilities as well as impact our financial results.”  

Code of Business Conduct 

We are committed to conducting business in accordance with the highest ethical standards. We require all employees to complete 
training on our Code and, where permitted by law, also require that employees regularly certify compliance with the Code. The Code 
provides specific guidance to all our employees, outlining how they can and must uphold and strengthen the integrity that has defined 
John Deere since its founding. In addition, we maintain a global compliance hotline to allow for concerns of potential violations of the 
Code, global policies, or the law to be brought forward.  

Health and Safety 

We strive to achieve safety excellence through increased focus on leading indicators, risk reduction, health and safety management 
systems, and prevention. We have made progress on implementing best practices and leading indicators for enabling employee safety 
over recent years with our Health and Safety Management System. 

We utilize a safety balanced scorecard, which includes leading and lagging indicators, and is designed to enable continuous 
measurement of safety performance and drive continuous improvement. Leading indicators include incident corrective action closure 
rates, ergonomic scorecard, and risk reduction from safety and ergonomic risk assessment projects. Lagging indicators include total 
recordable incident rate, ergonomic recordable case rate, and near-miss rate. Leading indicators are tracked by most of our 
manufacturing facilities and internally reported. In fiscal year 2023, we reported a total recordable incident rate of 2.08 and a lost time 
frequency rate of 0.65. To improve our total recordable incident rate, we will prioritize risk and injury reduction strategies, improve 
ergonomic programs, and focus on prevention through design. 

We also updated our new employee onboarding in fiscal year 2023 to include training labs, hands-on-training, tooling and process 
exposures on the shop floor, operator checklists, and training videos of workstations. 

Diversity, Equity, and Inclusion (DEI) 

We adhere to the principle of equal employment opportunity and we believe that a diverse workforce is essential to our long-term 
success and solving our customers’ most pressing challenges. We strive to foster a diverse, equitable, and inclusive culture. We 

11 

embrace employees’ differences in race, color, religion, age, sex, sexual orientation, gender, gender identity and expression, marital or 
partnership status, family status, citizenship, national origin, ancestry, geographic background, military or veteran status, disability 
(mental or physical), and any other characteristics that make our employees unique. 

Our leadership team works to set a consistent and transparent tone on DEI issues and strategy. We also create spaces for open 
conversations and learning through our Employee Resources Groups (ERGs) speaker series and micro-learnings. We sponsor 13 ERGs 
that are run by employees, open to all employees, and are a key driver of inclusion. ERGs build organization-wide networks that allow 
employees to come together and discuss shared interests. The global chapters work with local teams to support efforts to attract, 
retain, and develop the best talent. In addition, our global DEI strategy focuses on embedding DEI into world-wide business 
operations and people processes. 

In addition to recruiting from a wide array of colleges and universities, we partner with several professional organizations to support 
our diversity recruitment strategy, including AnitaB.org – a global organization for women in technology, Minorities in Agriculture 
Natural Resources and Related Sciences, the National Association of Black Accountants, Inc., the National Black MBA Association, Inc., 
the National Society of Black Engineers, the Society of Women Engineers, the Thurgood Marshall College Fund Leadership Institute, 
and the Society of Hispanic Professional Engineers. Our broad recruiting strategy helps us identify talent from all backgrounds. 

Compensation & Benefits 

Our total rewards are intended to be competitive, meet the varied needs of our global workforce, and reinforce our values. We are 
committed to providing comprehensive and competitive pay and benefits to our employees. We invested, and continue to invest, in 
employees through growth and development and well-being initiatives. 

Our work environment is designed to promote innovation, well-being, and reward performance. Our total rewards for employees 
include a variety of components that aim to support sustainable employment and the ability to build a strong financial future, 
including competitive market-based pay and comprehensive benefits. In addition to earning base pay, eligible employees are 
compensated for their contributions to our goals with both short-term cash incentives and long-term equity-based incentives. 

Eligible full-time employees in the U.S. have access to medical, dental, and vision plans; savings and retirement plans; parental leave 
and paid time off; and other resources, such as the Employee Assistance Program, which provides mental health and wellness services. 
We also offer a variety of working arrangements to eligible employees, including flexible schedules, remote work, and job sharing to 
help employees manage home and work-life situations. Programs and benefits differ internationally for a variety of reasons, such as 
local legal requirements, market practices, and negotiations with works councils, trade unions, and other employee representative 
bodies. 

Training and Development  

Employees are critical to the long-term success of our business. We encourage employees to identify the paths that can build the 
skills, experience, knowledge, and competencies needed for career advancement. We support employees by creating purpose-driven 
work opportunities, comprehensive performance reviews and development plans, mentoring opportunities, and professional and 
personal development opportunities. 

We encourage employees to provide feedback across the enterprise through our internal voluntary employee experience survey, ad-
hoc “pulse” surveys, and new-hire and exit surveys. Reports from these surveys help equip us to address needs across the employee 
lifecycle to improve the overall experience and engagement of our workforce. 

Around the world, we offer internships, training, upskilling, apprenticeships, and leadership development at all stages of an 
employee’s career. Training programs are tailored to different geographic regions and job functions and include topics such as 
technical operation of equipment, equipment assembly, relationships with customers and dealers, our culture and values, compliance 
with the Code, compliance with anti-bribery/corruption laws and policies, compliance with management of private data and 
cybersecurity, conflicts of interest, discrimination and workplace harassment policies, sexual harassment policies, and leadership 
development. 

Human Rights and Our Code of Conduct 

We honor human rights and respect the individual dignity of all persons globally. Our commitment to human rights requires that we 
understand and fulfill our responsibilities consistent with our values and practices. We strive to ensure that human rights are upheld 
for our employees and workers in our supply chain. Our commitment to human rights is defined in the Code, our Supplier Code of 
Conduct, our Dealer Code of Conduct, related policies and procedures, and our statement “Support of Human Rights in our Business 
Practice,” each of which is available on our website under “Governance.” These documents establish guidelines for our employees, 
suppliers, and dealers. We do not tolerate human rights abuses, such as forced labor, unlawful child labor, and human trafficking.  

12 

 
 
INFORMATION ABOUT OUR EXECUTIVE OFFICERS 

The following are our executive officers as of December 6, 2023. All executive officers are elected or appointed by the Board of Directors 
and hold office until the meeting of the Board of Directors following the annual meeting of stockholders each year. 

Name (Age)  

John C. May (54)  

Joshua A. Jepsen (46)  

Ryan D. Campbell (49)  

Mary K.W. Jones (55)  

Rajesh Kalathur (55)  

Present Deere Position (Effective Date)   

Business Experience (Effective Date)  

Chairman, Chief Executive Officer, and President 
(2020)  

-  Chief Executive Officer and President (2019)  
-  President and Chief Operating Officer (2019) 
-  President, Worldwide Agriculture & Turf Division 

Global Harvesting and Turf Platforms, Ag 
Solutions Americas, and Australia (2018)  

Senior Vice President and Chief Financial Officer 
(2022)  

-  Deputy Financial Officer (2022) 
-  Director, Investor Relations (2018)  

President, Worldwide Construction & Forestry Division 
and Power Systems (2022)  

Senior Vice President, General Counsel and Worldwide 
Public Affairs (2019)  

-  Senior Vice President and General Counsel (2013)  

President, John Deere Financial, and Chief Information 
Officer (2022)  

Jahmy J. Hindman (48)  

Senior Vice President and Chief Technology Officer 
(2023)  

-  Senior Vice President and Chief Financial Officer 

(2019)  

-  Deputy Financial Officer (2018)  

-  Chief Technology Officer (2020) 
-  Global Director Tractor Platform Engineering (2018) 
-  Global Manager, Architecture, Systems, Modules 

(2018)  

-  President, John Deere Financial and Senior Vice 
President, Global Information Technology and 
Chief Financial Officer (2022)  

-  President, John Deere Financial, and Chief 

Information Officer (2019)  

-  Senior Vice President, Chief Financial Officer and 

Chief Information Officer (2018)  

-  Vice President, Production Systems, Production & 

Precision Ag (2023) 

-  Vice President, Production Systems (2020) 
-  Director, Operation Station (2018)  

-  Executive Vice President & Chief Human 
Resources Officer, BorgWarner Inc (2022)  
-  Global Vice President Human Resources, 
BorgWarner, Inc. - Morse Systems (2019)   
-  Vice President Human Resources ASEAN, Ford 

Motor Company (2016)  

-  President, Worldwide Agriculture & Turf Division, 
Americas and Australia, Global Harvesting and Turf 
Platforms, Agricultural Solutions (2019)  
-  President, John Deere Financial (2016)  

-  Senior Partner and Managing Director at the 
Boston Consulting Group (BCG) (2020) 

-  Various roles of increasing responsibility from 
Associate to Partner and Managing Director at 
BCG (2002)  

Deanna M. Kovar (45)  

President, Worldwide Agriculture & Turf Division, 
Small Ag & Turf, Sales and Marketing Regions of 
Europe, CIS, Asia, and Africa (2023)  

Felecia J. Pryor (49)  

Senior Vice President and Chief People Officer (2022)  

Cory J. Reed (53)  

President, Worldwide Agriculture & Turf Division, 
Production & Precision Ag, Sales and Marketing 
Regions of the Americas and Australia (2020)  

Justin R. Rose (44)  

President, Lifecycle Solutions, Supply Management, 
and Customer Success (2022) 

13 

 
 
 
 
 
 
 
 
ITEM 1A.  RISK FACTORS. 

The following risks are considered material to our business based upon current knowledge, information, and assumptions. This 
discussion of risk factors should be considered closely in conjunction with the MD&A, including the risks and uncertainties described in 
the Forward-Looking Statements, and the Notes to Consolidated Financial Statements. These risk factors and other forward-looking 
statements relate to future events, expectations, trends, and operating periods. They involve certain factors that are subject to 
change and important risks and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties 
could affect particular lines of business, while others could affect all our businesses. Although the risks are organized by headings and 
each risk is discussed separately, many are interrelated. The risks described in this Annual Report on Form 10-K and the Forward-
Looking Statements in this report are not the only risks faced by us.  

STRATEGIC RISKS 

We may face risks associated with international, national, and regional trade laws, regulations, and policies, and government farm 
programs and policies which could significantly impair our profitability and growth prospects. 

International, national, and regional laws, regulations, and policies directly or indirectly related to or restricting the import and export 
of our products, services, and technology, or those of our customers, or for the benefit of favored industries or sectors, could harm 
our global business. We are subject to various regulatory risks including, but not limited to, the following:  

•  Restricted access to global markets could impair our ability to export goods and services from various manufacturing 
locations around the world. Restricted access could limit the ability to access raw materials and high-quality parts and 
components at competitive prices on a timely basis. For example, expanding export controls or limits on foreign investment 
can impact global supply of key materials and components, and actions taken within the US-China trade conflict can impact 
business in China, as well as sales, import/exports, and/or business engagement with Chinese entities globally. 

• 

• 

• 

• 

Trade restrictions, negotiation of new trade agreements, non-tariff trade barriers, local content requirements, and imposition 
of new or retaliatory tariffs against certain countries or covering certain products, including developments in U.S.-China 
trade relations, export control and sanctions against Russia, have limited, and could continue to limit, our ability to capitalize 
on current and future growth opportunities in international markets. These trade restrictions, and changes in, or uncertainty 
surrounding global trade policies, may affect our competitive position.  

Trade restrictions could impede those in developing countries from achieving a higher standard of living, which could 
negatively impact our future growth opportunities arising from increasing global demand for food, fuel, and infrastructure.  

Policies impacting exchange rates and commodity prices, or those limiting the export or import of commodities, could have a 
material adverse effect on the international flow of agricultural and other commodities that may result in a corresponding 
negative effect on the demand for agricultural and forestry equipment in many areas of the world. Our agricultural 
equipment sales could be harmed by such policies because farm income influences sales of agricultural equipment around the 
world.  

Changes in government farm programs and policies can influence demand for agricultural equipment as well as create 
unequal competition for multinational companies relative to domestic companies.  

We may be unable to manage increasing political, economic, and social uncertainty in certain regions of the world, which could 
significantly change the dynamics of our competition, customer base, and product offerings globally. 

Efforts to grow our businesses depend in part upon access and developing market share and profitability in additional geographic 
markets, including, but not limited to, Argentina, Brazil, China, India, and South Africa. There are various risks associated with our 
global footprint, including, but not limited to, the following: 

• 

In some cases, these countries have greater political and economic volatility, greater vulnerability to infrastructure and labor 
disruptions, and differing customer product preferences and requirements than our other markets. In fiscal year 2023, as a 
result of the war in Ukraine, we suspended shipments of machines and service parts to Russia. The suspension of shipments 
to Russia reduced actual and forecasted revenue for the region and resulted in impairments of most long-lived assets, among 
other impacts. In addition, we initiated a voluntary separation program for employees in Russia in the third quarter of fiscal 
year 2022. 

•  Having business operations in various regions and countries exposes us to multiple and potentially conflicting business 

practices and legal and regulatory requirements that are subject to change. These practices and legal requirements are often 
complex and difficult to navigate, including those related to tariffs and trade regulations, investments, property ownership 
rights, taxation, repatriation of earnings, and advanced technologies.  

14 

• 

Expanding business operations globally also increases exposure to currency fluctuations, which can materially affect our 
financial results.  

•  While we maintain a positive corporate image and our brands are widely recognized and valued in our traditional markets, the 
brands are less known in some emerging markets, which could impede our efforts to successfully compete in these markets. 

• 

Changing U.S. export controls and sanctions on various foreign countries and on various parties could affect our ability to 
collect receivables, provide aftermarket warranty support for our equipment, sell products, and otherwise impact our 
reputation and business.  

We may be impacted by general negative economic conditions and outlook, causing weakened demand for our equipment and services, 
limiting access to funding, and resulting in higher funding costs. 

The demand for our products and services depends on the fundamentals in the markets in which we operate and can be significantly 
reduced in an economic environment characterized by high unemployment, high interest rates, cautious consumer spending, inflation, 
lower corporate earnings, and lower business investment. Negative or uncertain economic conditions that cause our customers to lack 
confidence in the general economic outlook can significantly reduce their likelihood of purchasing our equipment. These economic 
events adversely affected and may continue to adversely affect our operations.  

Sustained general negative economic conditions and outlook also affect housing starts, energy prices and demand, and other 
construction, which dampens demand for certain construction equipment. Our turf operations and our construction and forestry 
segments are dependent on construction activity and have also been affected by recent adverse economic conditions. Decreases in 
construction activity and housing starts could have a material adverse effect on our financial results.  

If negative economic conditions affect the overall farm economy, there could be a similar effect on our agricultural equipment sales. 
Uncertain or negative outlook with respect to pervasive U.S. fiscal issues as well as general economic conditions and outlook, such as 
market volatility and continuing interest rate increases by the Federal Reserve, have caused and could continue to cause significant 
changes in market liquidity conditions. Such changes could impact access to funding and associated funding costs, which could reduce 
our earnings and cash flows.  

We may be affected by changing worldwide demand for food and different forms of renewable energy, which could impact the price of 
farm commodities and consequently the demand for our equipment. This could result in higher research and development costs related 
to changing machine fuel requirements. 

Changing worldwide demand for farm outputs to meet the world’s growing food and renewable energy demands, driven in part by 
government policies, including those related to climate change, and a growing world population, are likely to result in fluctuating 
agricultural commodity prices, which directly affect sales of agricultural equipment. Lower agricultural commodity prices directly affect 
farm incomes, which could negatively affect sales of agricultural equipment and result in higher credit losses. While higher commodity 
prices benefit our crop-producing agricultural equipment customers, they could result in greater feed costs for livestock and poultry 
producers, which in turn may result in lower levels of equipment purchased by these customers. In addition, changing energy 
renewable demands may cause farmers to change the types or quantities of the crops they raise, with corresponding changes in 
equipment demands. Finally, changes in governmental policies regulating bio-fuel utilization could affect commodity demand and 
commodity prices, demand for our diesel-fueled equipment, and result in higher research and development costs related to equipment 
fuel standards.  

We may not realize the anticipated benefits of our Smart Industrial Operating Model and Leap Ambitions. 

Failure to realize the anticipated benefits of our Smart Industrial Operating Model and related business strategies in production 
systems, precision technologies, and aftermarket support could adversely affect results of our operations and financial condition. 
Several factors could impact our ability to successfully execute our Smart Industrial Operating Model, including, among other things:  

• 

• 

• 

• 

Failure to accurately assess market opportunities and the technology required to address such opportunities;  

Failure to develop and introduce new technologies or lack of adoption of such technologies by our customers;  

Failure to holistically provide lifecycle solutions; and  

Failure to optimize our capital allocation in connection with the Smart Industrial Operating Model.  

15 

Similarly, we may not realize the anticipated benefits of our Leap Ambitions and related goals within the expected timelines, or at all. 
As part of our Leap Ambitions we adopted various goals we expect to achieve by 2026 or 2030. We may not be able to achieve these 
goals for a variety reasons, some of which may be beyond our control. Examples include: 

•  Our estimates and assumptions related to efficiency of our products and the adoption of precision technology may not be 

accurate;  

• 

• 

• 

Certain materials, such as quality battery cells and cameras, may become unavailable or too costly;  

The infrastructure required to achieve our goals, such as sufficient charging stations or fuel availability, may become too 
costly or may not be developed on the expected timeline; and  

The actual or perceived failure to achieve our Leap Ambitions could negatively impact our ability to execute the Smart 
Industrial Operating Model.  

We may not realize all anticipated benefits of acquisitions, joint ventures, and divestitures, or these benefits may take longer to realize 
than expected.  

From time to time, we make strategic acquisitions and divestitures and participate in joint ventures. Acquisitions and joint ventures we 
have entered, or may enter in the future, may involve significant challenges and risks, including that the acquisitions or joint ventures 
do not advance our business strategy, or fail to produce satisfactory returns on investment. Other risks include: 

•  We may encounter difficulties in integrating acquisitions with our operations, applying internal control processes to these 
acquisitions, managing strategic investments, assimilating new capabilities to meet the future needs of our businesses, 
and/or combining business cultures; 

•  We may choose not to fully integrate businesses and may face regulatory or compliance exposure until appropriate processes 

and controls are put in place; 

• 

Integrating acquisitions is often costly and may require significant attention from management and personnel;  

•  We may not realize all the anticipated benefits of acquisitions or joint ventures, or the realized benefits may be significantly 

delayed; and 

•  Due diligence evaluations of potential transactions include business, legal, and financial reviews with the goal of identifying 
and evaluating the material risks involved. These due diligence reviews may not identify all of the issues necessary to 
accurately estimate the cost and potential risks of a particular acquisition or joint venture, including potential exposure to 
regulatory sanctions resulting from an acquisition target’s or joint venture partner’s previous activities or costs associated 
with any quality issues with an acquisition target’s or joint venture’s products or services.  

We may also decide to divest businesses if in the best interests of our shareholders and joint ventures may be terminated at or before 
their stated expiration. For example, in March and October 2023, we sold our financial services and roadbuilding businesses in Russia 
following the outbreak of the war in Ukraine. Divestitures of businesses or dissolutions of joint ventures may involve significant 
challenges and risks, including failure to advance our business strategy, costs or disruptions to us, and negative effects on our product 
offerings, which may adversely affect our business, results of operations, and financial condition. Divestitures of businesses and 
dissolutions of joint ventures may result in ongoing financial or legal involvement in the divested business through indemnifications or 
other financial arrangements, such as retained liabilities, which could affect our future financial results.  

Our ability to understand our customers’ preferences and requirements and to develop, manufacture, and market products that meet 
customer demand could significantly affect our business results. 

Our ability to match new product offerings to global customers’ preferences for different types and sizes of equipment and various 
equipment features and functionality, at affordable prices, is critical to our success. This requires a thorough understanding of our 
existing and potential customers on a global basis, particularly in growth markets such as Argentina, Brazil, and India. Failure to deliver 
quality products that meet customer needs at competitive prices could have an adverse effect on our business. 

In addition, customer preferences in the markets we serve are changing as a result of ongoing social and regulatory focus on 
sustainability as these markets transition to less carbon-intensive business models. As regulations and social pressure drive change, we 
must continue to proactively monitor trends and develop alternatives and enhancements that elevate and complement our product 
offerings. For example, even though we plan to offer electric, hybrid-electric, and battery electric equipment solutions, we may be 
unable to keep up with the rising demand for electric agriculture, turf, and construction equipment. 

16 

The development of alternative farming techniques, carbon sequestration technologies, and new low-carbon biofuels are changing 
farmers’ business models and equipment needs. If we fail to continue to develop or invest in emerging technologies to meet changing 
customer demands, we will be at risk of losing potential sources of revenue, which could affect our future financial results.  

If we are unable to deliver precision technology and agricultural solutions to our customers, it could affect our business, results of 
operations, and financial condition.  

Our approach to precision technology involves hardware and software, guidance, connectivity and digital solutions, automation and 
machine intelligence, and autonomy. Customers continue to adopt technology integrated in our portfolio of “smart” machines, 
systems, and solutions. We expect this trend to persist for the foreseeable future. To create and maintain a competitive 
differentiation, we need to successfully develop and introduce new precision technology solutions that improve profitability and 
sustainability for our customers. We may make significant investments in research and development, connectivity solutions, digital 
security for precision technology solutions, and dealer and employee training. These investments may not produce solutions that 
provide the desired results for customers’ profitability or sustainability outcomes. We utilize automation and machine learning and 
intelligence in some of our products. While the use of these emerging technologies can present significant benefits, it also creates 
risks and challenges. Data sourcing, technology, integration and process issues, program bias into decision-making algorithms, 
security problems, and the protection of privacy could impair the adoption and acceptance of autonomous machine solutions. If the 
output from these solutions is deemed to be inaccurate or questionable, our brand and reputation may be harmed and we may be 
subject to legal liability claims. Automation and machine learning and intelligence may also become the subject of local, state, federal, 
and foreign regulatory efforts limiting the features and capabilities of the technology. If we are not able to deliver precision 
technology solutions with differentiated features and functionality, or these solutions are not effective, customers may not adopt 
technology solutions, which could have a material adverse effect on our reputation and business. 

We could be impacted by changes to or reallocation of radio frequency (RF) bands which could disrupt or degrade the reliability of our 
high precision augmented Global Positioning System (GPS) or other RF technology, which could impair our ability to develop and 
market GPS- and RF-based technology solutions, as well as significantly reduce agricultural and construction customers’ profitability. 

Our current and planned integrated agricultural business and equipment management systems, as well as our fleet management 
telematics solutions for construction equipment, depend upon the use of RF signals. These signals include, but are not limited to, GPS 
signals, other GPS-like satellite signals, augmented GPS services, and other RF technologies that link equipment, operations, owners, 
dealers, and technicians. These radio services depend on frequency allocations governed by international and national government 
agencies. Any international or national reallocation of frequency bands, including frequency bands segmentation and band spectrum 
sharing, or other modifications concerning the regulation of frequency bands, could significantly disrupt or degrade the utility and 
reliability of our GPS-based products, which could negatively affect our ability to develop and market GPS-based technology solutions.  

In addition, disruptions with GPS signals or the failure of telecommunications network operators to supply the bandwidth we need to 
support our products could interfere with the speed, availability, and usability of our equipment and services. If these GPS signals or 
RF signals become unavailable, our customers could be unable to use their equipment indefinitely. For our agricultural customers, this 
could result in lower crop yields, decreased operational efficiency, and higher equipment maintenance, seed, fertilizer, fuel, and wage 
costs. For construction customers, this could result in higher fuel and equipment maintenance costs, as well as lower construction 
design and project management efficiencies. These cost increases could significantly reduce customers’ profitability, sustainability, 
and demand for our products. As a result, our sales and revenue could significantly decrease, which would have a material adverse 
effect on our results of operations and our business. 

Our ability to adapt in highly competitive markets could affect our business, results of operations, and financial condition. 

We compete in a variety of highly competitive global and regional markets with other manufacturers and distributors that produce and 
sell similar products. In addition, our industry is attracting non-traditional competitors, including technology-focused companies and 
start-up ventures. We compete on product performance, innovation and quality, distribution, sustainability, customer service, and 
price. Aggressive pricing or other strategies of competitors, unanticipated product or manufacturing delays, or our failure to price 
products competitively could adversely affect our business, results of operations, and financial condition. 

We rely on a network of independent dealers to manage the distribution of our products and services. If dealers are unsuccessful with 
their sales and business operations, it could have an adverse effect on our overall sales and revenue.  

We rely on the capability of our dealers to develop and implement effective sales plans to create demand among purchasers for the 
equipment and related products and services that dealers purchase from us. If our dealers are unsuccessful in these endeavors, we will 
be unable to grow our sales and revenue, which would have an adverse effect on our financial condition.  

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In addition, the dealer channel’s ability to support and service precision technology solutions and emerging power solutions may affect 
customers’ acceptance and adoption rates of these products. The unavailability of specialized technicians to service our equipment 
may result in overburdening dealers’ servicing capacity.  

Dealers may have trouble funding their day-to-day cash flow needs and paying their obligations due to adverse business conditions 
resulting from negative economic effects or other factors. Dealers may exit or we may seek to terminate relationships with certain 
dealers if they are unable to meet customer needs. The unplanned loss of any of our dealers could lead to inadequate market coverage, 
negative customer impressions, and may adversely impact our ability to collect receivables that are associated with that dealer.  

ENVIRONMENTAL, CLIMATE, AND WEATHER RISKS 

Unfavorable weather conditions or natural catastrophes that reduce agricultural production and demand for agriculture and turf 
equipment could directly and indirectly affect our business. 

The purchasing decisions of our customers, particularly the purchasers of agriculture and turf equipment, can be significantly affected 
by poor or unusual weather conditions. Such conditions include:  

• 

• 

• 

Insufficient levels of rain, which prevent farmers from planting new crops and may cause growing crops to die or result in 
lower yields;  

Excessive rain or flooding can prevent planting from occurring at optimal times and may cause crop loss through increased 
disease or mold growth;  

Temperatures outside normal ranges, which can cause crop failure or decreased yields and may also affect disease incidence;  

•  Natural disasters such as regional floods, hurricanes or other storms, droughts, diseases, wildfires, and pests, either as a 

physical effect of climate change or otherwise, which have had, and could in the future have, significant negative effects on 
agricultural and livestock production; 

•  Adverse weather conditions in a particular geographic region, particularly during the important spring selling season; and 
•  Drought conditions can adversely affect sales of certain mowing equipment and can similarly cause lower sales volume. 

Each of these conditions could have a negative impact on farm income which can affect demand for agricultural equipment and the 
financial condition and credit risk of our dealers and customers.  

Governmental actions designed to address climate change based on the emergence of new technologies and business models in 
connection with the transition to a lower-carbon economy could adversely affect John Deere and our customers.  

There is global scientific consensus that greenhouse gas (GHG) emissions continue to alter the composition of Earth’s atmosphere in 
ways that are affecting and are expected to continue to affect the global climate. These considerations have led to new international, 
national, regional, and local legislative and regulatory responses. Various stakeholders, including legislators and regulators, 
shareholders, and non-governmental organizations, as well as companies in many business sectors, including us, are continuing to look 
for ways to reduce GHG emissions. The regulation of GHG emissions from certain stationary or mobile sources or the imposition of 
carbon pricing mechanisms could result in additional costs to us in the form of taxes or emission allowances, required facilities 
improvements, and increased energy costs. These results would increase our operating costs through higher utility, transportation, 
and materials cost and could prevent us from selling products into certain markets. Increased input costs, such as fuel and fertilizer, 
and compliance-related costs could also affect customer operations and demand for our equipment.  

Further, our financial services segment is subject to additional international and national European regulations relating to climate and 
environmental risk, which are continually evolving and could affect the financing operations and climate-risk processes developed by 
the segment. Regulators in Europe and the U.S. have also focused efforts on increased disclosure related to climate change and 
mitigation efforts. The EU recently adopted the European Sustainability Reporting Standards (ESRS) and the Corporate Sustainability 
Reporting Directive (CSRD) that will impose disclosure of the risks and opportunities arising from social and environmental issues, and 
on the impact of companies’ activities on people and the environment. The CSRD will need to be transposed into Member State law 
before it becomes effective, which is expected to occur in 2024. Similarly, the State of California recently passed the Climate Corporate 
Data Accountability Act and the Climate-Related Financial Risk Act that will impose broad climate-related disclosure obligations on 
certain companies doing business in California, including us, starting in 2026. The SEC has included in its regulatory agenda potential 
rulemaking on climate change disclosures that, if adopted, could significantly increase compliance burdens and associated regulatory 
costs and complexity.  

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Increasingly stringent engine emission regulations or bans on internal combustion engines may impact our ability to manufacture and 
distribute certain engines or equipment, which could negatively affect business results. 

Our equipment operations must meet increasingly stringent engine emission reduction regulations throughout the world, including the 
European Union’s Stage V standard, which limits the amount of certain substances in exhaust gases that off-road engines can emit 
into the environment. Governmental agencies throughout the world are enacting more stringent laws and regulations to reduce off-
road engine emissions. These laws and regulations are applicable to engines we manufacture, including those used in agriculture and 
CF equipment.  

We have incurred, and continue to incur, substantial research and development costs related to the implementation of these more 
rigorous laws and regulations. While we have developed and are executing comprehensive plans to meet these requirements, these 
plans are subject to variables that could delay or otherwise affect our ability to manufacture and distribute certain equipment or 
engines, which could negatively impact business results. Additionally, in certain locations governments have banned, or may in the 
future ban, internal combustion engines for some types of products completely. To the extent these bans affect products 
manufactured and sold by us, our business, results of operations, and financial condition could be negatively affected. 

FINANCIAL RISKS  

Changes in government banking, monetary, and fiscal policies could have a negative effect on us. 

Policies of the U.S. and other governments regarding banking, monetary, and fiscal policies intended to promote or maintain liquidity, 
stabilize financial markets, and/or address local deficit or structural economic issues could have a material impact on our customers 
and markets. Central bank policy interest rates continued to increase in fiscal year 2023. Most of our retail receivables are fixed rate, 
while wholesale financing receivables are variable rate. We have both fixed and variable rate borrowings. Historically, rising interest 
rates impact our borrowings sooner than the benefit is realized from the financing receivable and equipment on operating lease 
portfolios.  

Our operations and results could also be affected by financial regulatory reform that could, among other things, have an adverse 
effect on the financial services segment and on our customers by limiting their ability to enter hedging transactions or to finance 
purchases of our products. Government policies on spending can also affect us, especially the CF segment, due to the impact of 
government spending on infrastructure development. Our operations, including those outside of the U.S., may also be affected by 
non-U.S. regulatory reforms being implemented to further regulate non-U.S. financial institutions and markets.  

Changes in tax rates, tax legislation, or exposure to additional tax liabilities could have a negative effect on our business. 

We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Our domestic and international tax liabilities are 
dependent upon the location of earnings among these different jurisdictions. Tax rates in various jurisdictions may be subject to 
significant change. Our effective tax rates could be affected by changes in the mix of earnings in countries with differing statutory tax 
rates, changes in the valuation of deferred tax assets and liabilities, or changes in tax laws or their interpretations. If our effective tax 
rates were to increase, or if the ultimate determination of taxes owed is for an amount more than amounts previously accrued, our 
operating results, cash flows, and financial condition could be adversely affected.  

Our consolidated financial results are reported in U.S. dollars while certain assets and other reported items are denominated in foreign 
currencies, creating currency exchange and translation risk. 

We are a global company with transactions denominated in a variety of currencies. We are subject to currency exchange risk to the 
extent that our costs are denominated in currencies other than those in which we earn our revenues.  

Additionally, the reporting currency for our consolidated financial statements is the U.S. dollar. Certain of our assets, liabilities, 
expenses, and revenues are denominated in other countries’ currencies, which are then translated into U.S. dollars at the applicable 
exchange rates and reported in our consolidated financial statements. Therefore, fluctuations in foreign exchange rates affect the 
value of those items as reflected in our consolidated financial statements, even if their value remains unchanged in the original 
currencies. While the use of currency hedging instruments may provide us with some protection from adverse fluctuations in currency 
exchange rates, by utilizing these instruments we potentially forego any benefits that may result from favorable fluctuations in such 
rates. In Argentina, we have employed mechanisms to convert Argentine pesos into U.S. dollars to the extent possible. These 
mechanisms are short-term in nature, leaving us exposed to long-term currency fluctuations. 

Changes in interest rates or market liquidity conditions could adversely affect our financials and our earnings and/or cash flows.  

Central bank policy interest rates continued to increase in fiscal year 2023. Rising interest rates could have a dampening effect on 
overall economic activity and/or the financial condition of our customers, either or both of which could negatively affect customer 
demand for our equipment and customers’ ability to repay their obligations to us. Rising interest rates may cause credit market 

19 

dislocations, that can impact funding costs, which can affect the financial services segment’s ability to offer customers competitive 
financing rates. While we strive to match the interest rate characteristics of our financial assets and liabilities, changing interest rates 
have had an adverse effect on our net interest rate margin—the difference between the yield we earn on our assets and the interest 
rates we pay for funding, which has affected our net interest income and earnings.  

In addition, actions by credit rating agencies, such as downgrades or negative changes to ratings outlooks, can affect the availability 
and cost of funding for us and can increase our costs of capital and hurt our competitive position. 

Because the financial services segment provides financing for a significant portion of our sales worldwide, negative economic 
conditions in the financial industry could materially impact our operations and financial results. 

Negative economic conditions could have an adverse effect on the financial industry in which the financial services segment operates. 
The financial services segment provides financing for a significant portion of our sales worldwide. The financial services segment is 
exposed to the risk that customers and others will default on contractual obligations and may experience credit losses that exceed our 
expectations and adversely affect our financial condition and results of operations. The financial services segment’s inability to access 
funds at cost-effective rates to support our financing activities could have a material adverse effect on our business. The financial 
services segment’s liquidity and ongoing profitability depend largely on timely access to capital to meet future cash flow requirements 
and to fund operations and costs associated with engaging in diversified funding activities. Additionally, negative market conditions 
could reduce customer confidence levels, resulting in declines in credit applications and increases in delinquencies and default rates, 
which could materially impact the financial services segment’s write-offs and provision for credit losses. The financial services segment 
may also experience residual value losses that exceed our expectations caused by lower pricing for used equipment and higher-than-
expected equipment returns at lease maturity. 

We may sustain increases in funding obligations under our pension plans which may impair our liquidity or financial condition. 

We maintain certain defined benefit pension plans for certain employees, which impose funding obligations. We use various 
assumptions in calculating our future payment obligations under these plans. Significant adverse changes in credit or market 
conditions could result in actual rates of return on pension investments being lower than expected. Regulatory changes could cause a 
deterioration in the statutory funded status of our plans. We may be required to make significant contributions to our pension plans in 
the future. These factors could significantly increase our payment obligations under the plans and adversely affect our business, 
results of operations, and financial condition. 

MANUFACTURING AND OPERATIONAL RISKS 

We may be unable to accurately forecast customer demand for products and services, and to adequately manage inventory, which 
could adversely affect our operating results. 

To ensure adequate inventory supply, we must forecast inventory needs and expenses and place orders sufficiently in advance with 
suppliers and contract manufacturers. These forecasts are based on estimates of future demand for products and services. Failure to 
accurately forecast our needs may result in unmet market demand, parts shortages, manufacturing delays, increased costs, or excess 
inventory. In fiscal year 2022, supply chain disruptions resulted in higher inventory levels. Although production schedules in fiscal year 
2023 were more aligned with the customers’ seasonal use of our products, marking a return to historical seasonal production patterns, 
our ability to accurately forecast demand in the future could be affected by many factors, including changes in customer demand for 
our products and services, changes in demand for the products and services of competitors, unanticipated changes in general market 
conditions, and the weakening of economic conditions or customer confidence in future economic conditions. If the forecasts used to 
manage inventory are not accurate, we may experience excess inventory levels, shortage of available products, or reduced 
manufacturing efficiencies. 

Changes in the availability and price of certain raw materials, components, and whole goods have resulted and could continue to result 
in disruptions to the supply chain causing production disruptions, increased costs, and lower profits on sales of our products. 

We require access to various raw materials, components, and whole goods at competitive prices to manufacture and distribute our 
products. The price and availability of these materials have varied significantly in the last 36 months. For example, in fiscal year 2022, 
supply chain disruptions impacted many aspects of our business, including receiving past due deliveries from suppliers, parts 
availability, increased production costs, and higher inventory levels. We experienced supply chain improvements in fiscal year 2023 
with a return to normal in the second half of the fiscal year.  

While we have seen stabilization in the supply chain and some commodity pricing improvements, we anticipate potential fluctuations 
due to inflation, geopolitical and economic uncertainty, and regulatory and policy instability, including import tariffs and trade 
agreements. The latter have the potential to significantly increase production and logistics costs and have a material negative effect 
on the profitability of the business, particularly if we are unable to recover the increased costs due to market considerations or other  

20 

 
 
factors. We have experienced changes in the availability and prices of these raw materials, components, whole goods, and freight over 
the past several years, especially in fiscal years 2021 and 2022.Global logistics network challenges resulted in delays, shortages of key 
manufacturing components, increased order backlogs, increased transportation costs, and production inefficiencies from a higher 
number of partially completed machines in inventory, which increased our overall production and overhead costs. Increases in such 
costs have had an adverse effect on our business operations. 

We rely on our suppliers to acquire the raw materials, components, and whole goods required to manufacture their products. 
Significant disruptions to the supply chain resulting from shortages of raw materials, components, and whole goods have and could 
continue to adversely affect our ability to meet commitments to our customers. In addition, certain materials and components used in 
our products are acquired from a single supplier or are proprietary in nature and cannot be alternatively sourced expeditiously. 
Furthermore, if our customers are unwilling to accept price increases for our products, or if we are unable to offset the increases in 
costs, raw material costs or shortages could have a material adverse effect on our operational or financial results.  

Disputes with labor unions may adversely affect our ability to operate in our facilities as well as impact our financial results.  

Many of our production and maintenance employees are represented by labor unions under various collective bargaining agreements 
with different expiration dates. Our failure to successfully renegotiate labor agreements as they expire has from time to time led, and 
could in the future lead, to work stoppages or other disputes with labor unions. For example, the UAW initiated a labor strike that had 
an adverse effect on our results of operations in fiscal 2022 because of reduced productions and shipments. Certain of our labor 
agreements expire as early as 2024. Disruptions to our manufacturing and parts-distribution facilities through various forms of labor 
disputes could adversely affect us. Any strike, work stoppage, or other dispute with a labor union distracts management from 
operating the business, may displace employees from ordinary job positions to fill in vacant positions, may affect our reputation, and 
could materially adversely affect our business, results of operations, and financial condition.  

Our business may suffer if our equipment fails to perform as expected. 

If our equipment does not perform as expected, we may receive warranty claims and have to perform post-sales repairs or recalls. We 
may also be subject to regulatory requirements and penalties that will impact our ability to develop, market, and sell equipment. This 
may result in product delivery delays. It could also lead to product liability, breach of warranty, and consumer protection claims. These 
claims and warranty expenses could be significant. As a manufacturer of equipment, we must manage the cost and risk associated with 
product warranties, post-sale repairs and recalls, regulatory penalties, and product liability, breach of warranty, and consumer 
protection claims with respect to our products. In addition to post-sale repairs or recalls initiated by us for various reasons, 
investigations into our products by government regulators may compel us to initiate product recalls or may result in negative public 
perceptions about the safety of our products, even if we disagree with the regulator’s determination. Such post-sale repairs or recalls, 
whether voluntary or involuntary, could result in significant expense, supply chain complications, and may harm our brand, business, 
prospects, financial condition, and operating results. 

RESOURCES RISKS  

Our ability to attract, develop, engage, and retain qualified employees could affect our ability to execute our strategy. 

Our continued success depends, in part, on our ability to identify and attract qualified candidates with the requisite education, 
background, and experience as well as our ability to develop, engage, and retain qualified employees. Failure to attract, develop, 
engage, and retain qualified employees, whether as a result of an insufficient number of qualified applicants, difficulty in recruiting 
new employees, or inadequate resources to train, integrate, and retain qualified employees, could impair our ability to execute our 
business strategy and could adversely affect our business, results of operations, and financial condition. In addition, while we strive to 
reduce the impact of the departure of employees, our operations or ability to execute our business strategy and meet our business 
objectives may be affected by the loss of employees, particularly when departures involve larger numbers of employees, such as those 
we could experience if a surge occurs in the number of employees voluntarily leaving their jobs. Higher rates of employee separations 
may adversely affect us through decreased employee morale, the loss of knowledge of departing employees, and the devotion of 
resources to recruiting and onboarding new employees.  

Security breaches and other disruptions to our information technology infrastructure could interfere with our operations and could 
compromise our information as well as information of our employees, customers, suppliers, and/or dealers, exposing us to liability that 
could cause our business and reputation to suffer. 

In the ordinary course of business, we rely upon information technology networks and systems, some of which are managed by third 
parties, to process, transmit, and store electronic information and to manage or support a variety of business processes and activities, 
including supply chain, manufacturing, distribution, invoicing, and collection of payments from dealers and other purchasers of our 
equipment and from customers of the financial services segment. We use information technology systems to record, process, and 

21 

summarize financial information and results of operations for internal reporting purposes and to comply with regulatory financial 
reporting, legal, and tax requirements.  

Additionally, we collect and store sensitive data, including intellectual property, proprietary business information, and the proprietary 
business information of our customers, suppliers, and dealers, as well as personally identifiable information of our customers and 
employees in data centers which are often owned by third parties and on information technology networks. The secure operation of 
these information technology networks and the processing and maintenance of this information is critical to our business operations 
and strategy. 

Despite security measures, including a vulnerability disclosure program, and business continuity plans, our information technology 
networks and infrastructure have been and may be vulnerable to intrusion, damage, disruptions, or shutdowns due to attacks by cyber 
criminals, employees’, suppliers’, or dealers’ error or malfeasance, supply chain compromise, disruptions during the process of 
upgrading or replacing computer software or hardware, power outages, computer viruses, ransomware or other malware, 
telecommunication or utility failures, terrorist acts, natural disasters, or other events. Although we have not suffered any significant 
cyber incidents that resulted in material business impact, we have from time to time been the target of malicious cyber threat actors. 
The occurrence of any significant event could compromise our networks, and the information stored there could be accessed, 
obtained, publicly disclosed, lost, altered, misused, or stolen. Any such access, disclosure, alteration, misuse, or other loss of 
information could result in legal claims or proceedings, government investigations, liability or regulatory penalties, disruption or shut 
down of our operations, and damage to our reputation, which could adversely affect our business, results of operations, and financial 
condition. Furthermore, as security threats continue to evolve and increase in frequency and sophistication, we may need to invest 
additional resources to protect information security. 

Any unauthorized control or manipulation of our products’ systems could result in loss of confidence in us and our products.  

Some of our products include connectivity hardware and software typically used for remote system updates. While we have 
implemented security measures intended to protect against unauthorized remote access to these products, malicious threat actors 
have attempted, and may attempt in the future, to gain unauthorized access to such products in order to gain control of the products, 
change the products’ functionality, user interface, or performance characteristics, interfere with the products’ operations, or gain 
access to data stored in or generated by the products or to systems to which they connect. In addition, reports of unauthorized access 
to our products, systems, and data, regardless of their reliability, may result in the perception that the products, systems, or data are 
vulnerable to malicious or unauthorized modifications. Any unauthorized access to or control of our products or systems, any loss of 
data, or any perception that products, systems, or data are vulnerable could result in legal claims or proceedings against us, 
government investigations, liability, or regulatory penalties, which could adversely affect our business, results of operations, and 
financial condition.  

Our business could be adversely affected by the infringement or loss of intellectual property rights. 

We protect our intellectual property with a combination of patents, trademarks, copyrights, trade secret laws, and legal agreements. 
We heavily rely on certain trademarks to protect our identity and customer recognition of our products and services, including, but not 
limited to, the “John Deere” mark, the leaping deer logo, the “Nothing Runs Like a Deere” slogan, and the green and yellow color 
combination. These trademarks, as well as the many patents that protect innovations used in our products, are integral to our 
business, and their loss could have a material adverse effect on us.  

Additionally, third parties may initiate legal proceedings to challenge the validity of our intellectual property or allege that we infringe 
on their intellectual property. We may incur substantial costs if third parties initiate such legal proceedings, or if we initiate legal 
proceedings to protect or enforce our intellectual property. If the outcome of any such legal proceedings is unfavorable to us, our 
business could be adversely affected.  

LEGAL AND COMPLIANCE RISKS  

Our global operations are subject to complex and changing laws and regulations, the violation of which could expose us to potential 
liabilities, increased costs, and other adverse effects. 

We are subject to numerous international, federal, state, and local laws and regulations, many of which are complex, frequently 
changing, and subject to varying interpretations. These laws and regulations cover a variety of subjects, including advertising, anti-
money laundering, antitrust, consumer finance, environmental, climate-related, health and safety, foreign exchange controls and cash 
repatriation restrictions, foreign ownership and investment, import/export and trade, human rights, labor and employment, product 
liability reporting, cybersecurity, data privacy, telematics, and connectivity.  

These laws may vary substantially within the different markets in which we operate. Compliance with these laws and regulations is 
expensive and may further increase the cost of conducting our global operations. In addition, we must comply with the U.S. Foreign 

22 

Corrupt Practices Act and all applicable foreign anti-corruption laws, including the U.K. Bribery Act. These laws generally prohibit 
companies and their intermediaries from making improper payments or providing anything of value to improperly influence 
government officials or private individuals for the purpose of obtaining or retaining a business advantage, regardless of whether those 
practices are culturally expected in a particular jurisdiction. Although we have a compliance program in place designed to reduce the 
likelihood of potential violations of these laws and regulations, there can be no assurance that our employees, contractors, or agents 
will not violate such laws and regulations or our policies and procedures. Violations of these laws and regulations could result in 
criminal or civil sanctions and have a material adverse effect on our reputation, business, results of operations, and financial condition. 

Changes to existing laws and regulations, or changes to how they are interpreted, or the implementation of new, more stringent laws 
or regulations, could adversely affect our business by increasing compliance costs, limiting our ability to offer a product or service, 
requiring changes to our business practices, or otherwise making our products and services less attractive to customers. Legislative 
and regulatory changes, and other actions that could potentially affect our business may be announced with little or no advance notice 
and we may not be able to effectively mitigate all adverse effects from such measures. 

We are subject to governmental laws, regulations, and other legal obligations related to privacy and data protection. Any inability or 
perceived inability of addressing these requirements could adversely affect our business. 

The legislative and regulatory framework for privacy and data protection issues worldwide is rapidly evolving and is likely to remain 
uncertain for the foreseeable future. We collect personal information and other data as integral parts of our business processes and 
activities. This data is subject to a variety of U.S. and foreign laws and regulations, including oversight by various regulatory and other 
governmental bodies. Many foreign countries and governmental bodies, including the EU, China, Canada, and other relevant 
jurisdictions where we conduct business, have laws and regulations concerning the collection and use of personal information and 
other data obtained from their residents or by businesses operating within their jurisdictions. The EU General Data Protection 
Regulation (GDPR), the California Consumer Privacy Act, and the China Personal Information Protection Law, among others, impose 
stringent data protection requirements and provide significant penalties for noncompliance. New privacy laws will continue to come 
into effect around the world in the future. Any inability or perceived inability to adequately address privacy and data protection 
concerns (even if unfounded), or comply with applicable laws, regulations, policies, industry standards, contractual obligations, or 
other legal obligations (including at newly acquired companies) could result in additional cost and liability to us, damage our 
reputation, inhibit sales, and otherwise adversely affect our business. 

Legal proceedings and disputes in which we are, and may in the future be, involved could harm our business, financial condition, 
reputation, and brand.  

We routinely are a party to claims and legal actions incidental to our business. These include claims for personal injury or property by 
users of our equipment, environmental, health, and safety claims, disputes with distributors, vendors and others with respect to 
commercial matters, and disputes with taxing and other governmental authorities regarding the conduct of our business. The defense 
of lawsuits and government inquiries or investigations has resulted and may result in expenditures of significant financial resources 
and the diversion of management’s time and attention away from business operations.  

We are currently subject to a consolidated multidistrict class action lawsuit in the Northern District of Illinois alleging that we have 
engaged in attempted monopolization, exclusionary conduct, and restraint of the market for repair services for John Deere brand 
agricultural equipment by limiting repair resources only to our authorized technicians or independent authorized John Deere dealers. In 
addition, the Federal Trade Commission (FTC) is investigating whether we have violated laws in connection with the repair of John 
Deere brand agriculture equipment, as well as our information security practices and statements as they relate to the risk of 
unauthorized access to our computer systems, products, and services. We are fully cooperating with the FTC. We are currently unable 
to predict the outcome of these matters. The development and resolution of these matters could have a material adverse effect on our 
business, operations, and financial results. 

GENERAL RISKS 

Our reputation and brand could be damaged by negative publicity.  

Our brand has worldwide recognition and significantly contributes to the success of our business. Our reputation is critical to growing 
our customer base. Our brand depends on the ability to maintain a positive customer perception of the business, including the core 
values of integrity, quality, innovation, and commitment. Negative claims or publicity involving us, our products or services, our culture 
and values, our stance on environmental, social, and governance topics, customer data, or any of our key employees or suppliers, could 
damage our reputation and brand image, regardless of whether such claims are accurate. In addition, our stance on environmental, 
social, and governance topics damage to our reputation could adversely impact the ability to attract new and maintain existing 
customers, employees, dealers, and business relationships. For example, we have been the subject of negative media articles relating 
to our customers’ right to maintain and safely repair their equipment.  

23 

Additionally, negative or inaccurate postings, articles, or comments on social media and the internet about us could generate negative 
publicity that could damage the reputation of our brand. Further, adverse publicity about regulatory or legal action against us, or legal 
proceedings initiated by us, could also damage our reputation and brand image, undermine customer confidence, and reduce long-
term demand for equipment, even if the regulatory or legal action is unfounded or not material to our operations. If the reputation, 
culture, or image of our brands are damaged, or we receive negative publicity, then our sales, financial condition, and results of 
operations could be materially and adversely affected. 

Unexpected events have increased and may in the future increase our cost of doing business or disrupt our operations.  

The occurrence of one or more unexpected events, including war, acts of terrorism, epidemics and pandemics (such as the COVID 
pandemic), civil unrest, fires, tornadoes, tsunamis, hurricanes, earthquakes, floods, and other forms of severe weather in the United 
States or in other countries in which we operate, or in which our suppliers are located, have adversely affected and could in the future 
adversely affect our operations and financial performance. Such events have caused and could cause complete or partial closure of one 
or more of our manufacturing facilities or distribution centers, temporary or long-term disruptions in the supply of component 
products from some local and international suppliers, and disruption and delay in the transport of products to dealers, end-users, and 
distribution centers. Existing insurance coverage may not provide protection from all the costs that may arise from such events. 

The potential physical impacts of climate change on our facilities, suppliers, and customers, and therefore on our operations, are highly 
uncertain and will be particular to the circumstances developing in various geographic regions. These potential physical effects may 
adversely affect the demand for our products and the cost, production, sales, and financial performance of our operations.  

ITEM 1B. 

UNRESOLVED STAFF COMMENTS. 

None. 

ITEM 2. 

PROPERTIES. 

In the U.S. and Canada, the equipment operations own and operate 23 factory locations and lease and operate another 3 locations. 
Outside of the U.S. and Canada, the equipment operations own or lease and operate 45 factory locations in Argentina, Austria, Brazil, 
China, Finland, France, Germany, India, Israel, Italy, Mexico, the Netherlands, New Zealand, and Spain.  

In addition, the equipment operations own or lease 12 facilities comprised of three locations supporting centralized parts distribution 
and nine regional parts depots and distribution centers throughout the U.S. and Canada. Outside the U.S. and Canada, the equipment 
operations also own or lease and occupy 11 total facilities with centralized parts distribution centers in Brazil, Germany, and India  and 
regional parts depots and distribution centers in Argentina, Australia, China, India, Mexico, South Africa, Sweden, and the United 
Kingdom. We also own or lease eight facilities for the manufacture and distribution of other brands of replacement parts. 

Our manufacturing facility in Russia was shut down in 2022. Our Eurasian parts distribution center in Russia was also closed, and the 
leased premises were returned to the landlord in the second quarter of fiscal year 2023. Premises owned by Wirtgen in Russia 
operating in the roadbuilding business were sold in the fourth quarter of fiscal year 2023. 

We own or lease 53 administrative offices and research facilities globally as well as many other smaller, miscellaneous facilities. 

Overall, we own approximately 70.0 million square feet of facilities and lease approximately 13.1 million additional square feet in various 
locations. These properties are adequate and suitable for our business as presently conducted and are well maintained. 

ITEM 3. 

LEGAL PROCEEDINGS. 

We are subject to various unresolved legal actions that arise in the normal course of business, the most prevalent of which relate to 
product liability (including asbestos related liability), retail credit, employment, patent, trademark, and antitrust matters. Currently we 
believe the reasonably possible range of losses for other unresolved legal actions would not have a material effect on our financial 
statements; however, the outcome of any current or future proceedings, claims, or investigations cannot be predicted with certainty. 
Adverse decisions in one or more of these proceedings, claims, or investigations could require us to pay substantial damages or fines, 
undertake service actions, initiate recall campaigns, or take other costly actions. It is therefore possible that legal judgements could 
give rise to expenses that are not covered, or not fully covered by our insurance programs and could affect our financial position and 
results. 

ITEM 4. 

MINE SAFETY DISCLOSURES. 

Not applicable. 

24 

 
PART II 

ITEM 5. 

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF 
EQUITY SECURITIES. 

(a)  Our common stock is listed on the New York Stock Exchange (NYSE) under the symbol “DE.” We have a history of paying quarterly 
cash dividends. While we currently expect a cash dividend to be paid in the future, future dividend payments will depend on our 
earnings, capital requirements, financial condition, and other factors considered relevant by our Board of Directors. See the 
information concerning the number of stockholders in Note 21 to the Consolidated Financial Statements. 

(b)  Not applicable. 

(c)  Purchases of our common stock during the fourth quarter of 2023 were as follows: 

ISSUER PURCHASES OF EQUITY SECURITIES 

Period 
Jul 31 to Aug 27 
Aug 28 to Sept 24 
Sept 25 to Oct 29 

Total  

  Total Number of 
Shares 
Purchased (2) 
(thousands) 

682    $ 

2,204   
3,593   
6,479   

Average Price 
Per Share 

424.30    
410.43    
384.94    

  Total Number of 
  Shares Purchased 
   as Part of Publicly 
  Announced Plans 
or Programs (1) 
(thousands) 

Maximum 
  Number of Shares   
that May Yet Be 
  Purchased under    
the Plans or 
Programs (1) 
(millions) 

681    
2,204    
3,593    
6,478   

42.3   
39.8   
35.9   

(1)  We have a share repurchase plan that was announced in December 2022 to purchase up to $18.0 billion of shares of our common 

stock. The maximum number of shares that may yet be repurchased under this plan was 35.9 million based on the closing price of our 
common stock on the NYSE as of the end of the fourth quarter of $361.15 per share. At the end of the fourth quarter of 2023, 
$13.0 billion of common stock remains to be repurchased under this plan. 

(2)  In the fourth quarter of 2023, 1 thousand shares were acquired from a plan participant at a market price of $431.68 to pay payroll 

taxes on the vesting of a restricted stock award. 

STOCK PERFORMANCE GRAPH 

The graph compares the total shareholder returns (TSR) of Deere & Company, the Standard & Poor’s (S&P) 500 Construction 
Machinery & Heavy Transportation Equipment Index, the S&P 500 Industrials, and the S&P 500 Stock Index over a five-year period. It 
assumes $100 was invested on October 26, 2018 and that dividends were reinvested. Our stock price at October 27, 2023, was $361.15. 
Going forward, we intend to use the S&P 500 Industrials to replace the S&P 500 Construction Machinery & Heavy Transportation 
Equipment. We believe the S&P 500 Industrials provides a better benchmark to compare our cumulative total returns against the 
industry because it comprises those companies included in the S&P 500 that are classified as members of the GICS industrials sector, 
and therefore, have many characteristics similar to us, regardless of the specific types of products they offer. In contrast, the 
S&P’s 500 Construction Machinery & Heavy Transportation Equipment Index is made up of only four companies (Caterpillar (CAT), 
Cummins (CMI), Paccar (PCAR), and Wabtec (WAB)). The stock performance shown in the graph is not intended to forecast and does 
not necessarily indicate future price performance. 

25 

 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
       
 
     
 
     
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
  
  
  
 
  
  
 
 
 
ITEM 6. 

[RESERVED] 

ITEM 7. 

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

See the information under the caption “Management’s Discussion and Analysis.” 

ITEM 7A. 

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. 

We are exposed to a variety of market risks, including interest rates and currency exchange rates. We attempt to actively manage 
these risks. See the information under “Management’s Discussion and Analysis,” under “Financial Instrument Market Risk Information” 
and in Note 26 to the Consolidated Financial Statements. 

ITEM 8. 

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. 

See the Consolidated Financial Statements and notes thereto and supplementary data. 

ITEM 9. 

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. 

Not applicable. 

ITEM 9A. 

CONTROLS AND PROCEDURES. 

Disclosure Controls and Procedures 

Our principal executive officer and our principal financial officer have concluded that our disclosure controls and procedures (as 
defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act)) were effective as of 
October 29, 2023, based on the evaluation of these controls and procedures required by Rule 13a-15(b) or 15d-15(b) of the Exchange 
Act. 

Management’s Report on Internal Control Over Financial Reporting 

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control 
system was designed to provide reasonable assurance regarding the preparation and fair presentation of published financial 
statements in accordance with generally accepted accounting principles. 

26 

 
 
 
 
 
 
All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be 
effective can provide only reasonable assurance with respect to financial statement preparation and presentation in accordance with 
generally accepted accounting principles. 

Management assessed the effectiveness of our internal control over financial reporting as of October 29, 2023, using the criteria set 
forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway 
Commission. Based on that assessment, management concluded that, as of October 29, 2023, our internal control over financial 
reporting was effective. 

Our independent registered public accounting firm has issued an audit report on the effectiveness of our internal control over financial 
reporting. That report is included herein. 

Changes in Internal Control Over Financial Reporting 

During the fourth quarter, there were no changes that have materially affected or are reasonably likely to materially affect our internal 
control over financial reporting. 

ITEM 9B. 

OTHER INFORMATION. 

Director and Executive Officer Trading Arrangements 

None. 

ITEM 9C.  

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS. 

Not applicable. 

PART III 

ITEM 10. 

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. 

The information regarding directors required by this Item 10 will be set forth in the definitive proxy statement for our 2024 annual 
meeting of stockholders (proxy statement) to be filed with the Commission in advance of such meeting. Information regarding 
executive officers is presented in Item 1 of this report under the caption "Information about our Executive Officers." 

We have adopted a code of ethics that applies to our executives, including our principal executive officer, principal financial officer, 
and principal accounting officer. This code of ethics and our corporate governance policies are posted on our website at 
http://www.deere.com/governance. We intend to satisfy disclosure requirements regarding amendments to or waivers from our code 
of ethics by posting such information on this website. The charters of the Audit Review, Corporate Governance, Compensation, and 
Finance committees of our Board of Directors are available on our website as well. This information is also available in print free of 
charge to any person who requests it. 

ITEM 11. 

EXECUTIVE COMPENSATION. 

The information required by this Item 11 will be set forth in the proxy statement to be filed with the Commission. 

ITEM 12. 

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER 
MATTERS. 

The information required by this Item 12 will be set forth in the proxy statement to be filed with the Commission. 

ITEM 13. 

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. 

The information required by this Item 13 will be set forth in the proxy statement to be filed with the Commission. 

ITEM 14. 

PRINCIPAL ACCOUNTANT FEES AND SERVICES. 

Information required by this Item 14, including aggregate fees billed to us by our principal accountant, Deloitte & Touche LLP (PCAOB 
ID No. 34), will be set forth in the proxy statement to be filed with the Commission. 

27 

 
 
PART IV 

ITEM 15. 

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. 

(1)  Financial Statements 

Statements of Consolidated Income for the years ended October 29, 2023, October 30, 2022, and October 31, 2021 

Page

44

Statements of Consolidated Comprehensive Income for the years ended October 29, 2023, October 30, 2022, and October 31, 2021  45

  Consolidated Balance Sheets as of October 29, 2023 and October 30, 2022 

Statements of Consolidated Cash Flows for the years ended October 29, 2023, October 30, 2022, and October 31, 2021 

Statements of Changes in Consolidated Stockholders’ Equity for the years ended October 31, 2021, October 30, 2022, 

and October 29, 2023 

  Notes to Consolidated Financial Statements 

(2) Exhibits 

See the “Index to Exhibits” on pages 83 – 86 of this report 

46

47

48

49

  Certain instruments relating to long-term borrowings constituting less than 10 percent of registrant’s total assets are not filed 
as exhibits herewith pursuant to Item 601(b)4(iii)(A) of Regulation S-K. Registrant agrees to file copies of such instruments 
upon request of the Commission. 

Financial Statement Schedules Omitted 

  The following schedules for the company and consolidated subsidiaries are omitted because of the absence of the conditions 

under which they are required: I, II, III, IV, and V. 

ITEM 16. 

FORM 10-K SUMMARY. 

None. 

28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MANAGEMENT’S DISCUSSION AND ANALYSIS 

Management’s Discussion and Analysis of Financial Condition and 
Results of Operations (MD&A) is intended to promote 
understanding of our financial condition and results of operations. 
The MD&A is provided as a supplement to, and should be read in 
conjunction with, the consolidated financial statements and the 
accompanying Notes to Consolidated Financial Statements. All 
amounts are presented in millions of dollars, unless otherwise 
specified. For comparison of 2022 to 2021 results, refer to the 
“Management’s Discussion and Analysis” section of our 2022 
Form 10-K. 

OVERVIEW 

Deere & Company is a global leader in the production of 
agricultural, turf, construction, and forestry equipment and 
solutions. John Deere Financial provides financing for John Deere 
equipment, parts, service, and other input costs customers need to 
run their operations. Our operations are managed through the 
production and precision agriculture (PPA), small agriculture and 
turf (SAT), construction and forestry (CF), and financial services 
operating segments. References to “equipment operations” include 
PPA, SAT, and CF, while references to “agriculture and turf” include 
both PPA and SAT. 

Net Sales and Revenues by Segment in 2023 

Smart Industrial Operating Model and Leap Ambitions 
We announced the Smart Industrial Operating Model in 2020. This 
operating model is based on three focus areas: 
(a)  Production systems: A strategic alignment of products and 

solutions around our customers’ operations. 

(b)  Technology stack: Investments in technology, as well as 

research and development, that deliver intelligent solutions 
to our customers through digital capabilities, automation, 
autonomy, and alternative power technologies. 

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

Our Leap Ambitions were launched in 2022. These ambitions are 
designed to boost economic value and sustainability for our 
customers. The ambitions align across our customers’ production 
systems seeking to optimize their operations to deliver better 
outcomes with fewer resources. 

TRENDS & ECONOMIC 
CONDITIONS 

Industry Sales Outlook for Fiscal 2024 

Company Trends – Customers seek to improve profitability, 
productivity, and sustainability through technology. Integration of 
technology into equipment is a persistent market trend. Our Smart 
Industrial Operating Model and Leap Ambitions are intended to 
capitalize on this market trend. These technologies are 
incorporated into products within each of our operating 
segments. We expect this trend to persist for the foreseeable 
future. The investments in these technologies and in establishing 
a Solutions as a Service business model might increase our 
operating costs and may decrease operating margins during the 
transition period. Most notably in 2023, we introduced See & 
Spray™ Ultimate and a new model of See & Spray™ Premium. These 
technologies were introduced on a limited basis and did not 
represent a significant percentage of our sales in 2023. 

Company Outlook for 2024 
•  Demand is expected to decline in 2024. 
•  Production volumes will decline to more normal levels in 2024. 

Agriculture and Turf Outlook for 2024 
•  We expect large agricultural equipment sales to decline in 2024 

in North America, Europe, and South America.  

•  Demand for small agricultural equipment is expected to 

moderate in Europe. 

•  Turf and utility equipment product sales are expected to be 

lower due to the overall U.S. economic condition and elevated 
interest rates.  
Market Conditions: 
•  Agricultural fundamentals are expected to moderate in 2024 
due to lower commodity prices and elevated interest rates, 
offset by declining input costs and improved customer 
financials. 

29 

 
 
 
 
 
 
 
 
 
receivables are financed with fixed and floating rate borrowings. 
We manage our exposure to interest rate fluctuations by matching 
our receivables with our funding sources. We also enter into 
interest rate swap agreements to match our interest rate 
exposure.  

Rising interest rates have historically impacted our borrowings 
sooner than the benefit is realized from receivable and lease 
portfolios. As a result, our financial services operations 
experienced $170 (after-tax) less favorable financing spreads in 
2023 compared to 2022. If interest rates continue to rise, we 
expect to continue experiencing spread compression in 2024. 

Demand for our products is negatively impacted by rising interest 
rates. We expect higher borrowing costs for our customers to 
primarily affect discretionary and residential product sales in 2024. 

Rising interest rates are driven by factors outside of our control, 
and as a result, we cannot reasonably foresee when this condition 
will subside. 

Agricultural Market Business Cycle. The agricultural market is 
affected by various factors including commodity prices, acreage 
planted, crop yields, and government policies. These factors affect 
farmers’ income and may result in lower demand for equipment. 
We may experience any of the following effects during 
unfavorable market conditions: lower net sales, higher sales 
discounts, higher receivable write-offs, or losses on equipment on 
operating leases. A potential benefit is that customers may invest 
in integrated technology solutions and precision agriculture to 
lower input costs and improve margins. 

Other Items of Concern and Uncertainties – Other items that could 
impact our results are: 
•  global and regional political conditions, including the war in 

Ukraine and the Israel-Hamas war,  
•  economic, tax, and trade policies,  
•  new or retaliatory tariffs, 
•  capital market disruptions,  
•  foreign currency and capital control policies,  
•  regulations and legislation regarding right to repair, 
•  weather conditions, 
•  marketplace adoption and monetization of technologies we 

have invested in, 

•  our ability to strengthen our digital capabilities, automation, 

autonomy, and alternative power technologies, 

•  changes in demand and pricing for new and used equipment,  
•  significant fluctuations in foreign currency exchange rates,  
•  volatility in the prices of many commodities, and  
•  slower economic growth or possible recession.  

•  The dairy and livestock sector continues to benefit from 

elevated protein and hay prices. 

•  Farm input costs in Europe are declining. Grain prices vary from 
favorable in Western Europe to depressed in Eastern Europe 
due to the Russia/Ukraine war. 

•  Dealer inventories are elevated in Brazil due to inventory 

oversupply driven by weakening demand in the second half of 
2023. 

•  Industry sales in Asia are impacted by moderating demand in 
India, the world’s largest tractor market by number of units. 
•  The fleet average age is older than in prior business cycles. 
Combines are in line with the historical average age, while 
tractors are slightly older than historical averages. 

Construction and Forestry Outlook for 2024 
Market Conditions: 
•  Construction equipment industry sales are forecasted to be 

down from 2023 levels.  

•  Benefits from rental fleet replenishment, the energy industry, 

and U.S. infrastructure spending are expected to partially offset 
moderation in residential home, office, and retail construction. 

•  Roadbuilding demand remains strong, similar to 2023 in the 

U.S., largely offset by softening demand in Europe.  

Financial Services Outlook for 2024 
Net Income 

+ Nonrecurring prior period special items 
+ Higher average portfolio 
(-) Financing spreads 
(-) Recoveries on operating lease dispositions   

Up moderately   
Favorable   
Favorable   
Unfavorable   
Unfavorable   

Additional Trends – We experienced supply chain disruptions and 
inflationary pressures in 2022. While these issues moderated in 
2023, the effect on production schedules and central bank policy 
interest rates continued in 2023. These changes are discussed 
below.  

Supply Chain Impact on Production Schedules. We experienced 
supply chain improvements compared to 2022, with a return to 
normal in 2023. The ease in supply chain disruptions contributed 
to higher levels of production compared to prior year. As a result, 
our production schedules in 2023 were more aligned with the 
customers’ seasonal use of our products, marking a return to 
historical seasonal production patterns and on-time product 
delivery. Additionally, supply chain improvements contributed to 
reductions in premium freight costs, moderation in material cost 
increases, and disciplined inventory management in 2023. In 2022, 
supply chain disruptions impacted many aspects of our business, 
including receiving past due deliveries from suppliers, parts 
availability, increased production costs, and higher inventory 
levels. 

Interest Rates. Central bank policy interest rates increased in 2022 
and 2023. Increased rates impacted us in several ways, primarily 
affecting the financing spreads for the financial services 
operations, and may impact future demand for our products. 

Most retail customer receivables are fixed rate. Wholesale 
financing receivables generally are variable rate. Both types of 

30 

 
 
 
 
 
 
CONSOLIDATED RESULTS 

2023 compared to 2022 

Highlights 
•  Net income rose in 2023 compared to 2022, driven by strong 

market conditions. 

•  We continue to focus on structural profitability and strategically 

investing in solutions that deliver value to our customers. 

Net Sales and Revenues 

2023

2022

61,251 

52,577 

Net Sales (Equipment Operations)  

2023

2022

• 

55,565 

47,917 

Favorable industry fundamentals and strong demand for farm 
and construction equipment drove the sales increases in 
2023. 

Net Income (Attributable to Deere & Company) 

2023

2022

10,166 

7,131 

Diluted Earnings Per Share (EPS) ($ per share) 

2023

2022

34.63 

23.28 

•  Net income and diluted EPS grew at a faster rate than sales 
due to our ability to keep cost increases below price 
realization. 

Other Significant Statement of Consolidated Income Changes –  
An explanation of the cost of sales to net sales ratio and other 
significant statement of consolidated income changes follows: 

22022 
73.7%   

  %% Change  
-8 
Favorable   
Unfavorable   

Deere & Company 
Cost of sales to net sales 

2023 
    67.9%    

+ Price realization 
(-) Production costs 
Price realization was 12 percent driven by strong demand. 
Production costs increased due to a moderate rise in material 
cost and manufacturing overhead. These factors were partially 
offset by lower freight costs and production efficiencies 
generated by easing supply chain disruptions. 

Other income 

 1,295   
Other income was lower due to a non-cash gain on the 
remeasurement of the previously held equity investment in the 
Deere-Hitachi joint venture in 2022. 

 1,003    $ 

  $ 

-23 

Research and development 

expenses 
Research and development expenditures were higher due to 
continued focus on developing new technology solutions and 
new product introductions. 

 2,177     

 1,912   

+14   

Selling, administrative and 

 3,863   

 4,595     

general expenses 
Selling, administrative and general expenses rose due to higher 
salary expenses driven by inflationary conditions, profit-sharing 
incentives, and an increase in expenses to support the Leap 
Ambitions framework. Also impacting the current year was a 
cumulative correction of the accounting treatment for financing 
incentives offered to John Deere dealers (see Note 4). 

+19   

Interest expense 

 2,453     

 1,062   

+131   

Interest expense increased due to higher average borrowing 
rates and higher average borrowings. 

Other operating expenses 

 1,292     

 1,275   

+1   

See Note 9 for more information. 

Provision for income taxes 

 2,871     

 2,007   

+43   

Consistent with higher pretax income. 

31 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
   
 
 
 
   
 
   
 
 
 
   
 
 
   
 
   
 
 
 
   
 
 
   
 
   
 
 
 
   
 
 
   
 
   
 
 
 
   
 
 
   
 
   
 
 
 
   
 
 
 
 
 
 
 
Price realization was 8 percent in the U.S. and Canada driven by 
inflation and 12 percent in Western Europe driven by strong 
demand. 

BUSINESS SEGMENT RESULTS 

2023 compared to 2022 

Each equipment operation segment experienced price realization 
during 2023, as orderbooks were full and most product lines were 
on allocation. These factors contributed to higher shipment 
volumes for large agriculture and construction equipment.  
Production costs were unfavorable in 2023 due to higher material 
costs, profit-sharing incentive compensation, and manufacturing 
overhead costs, partially offset by lower freight costs and 
improved production efficiency. Material costs were higher in the 
first three quarters of 2023 but continued to moderate through the 
year. In the fourth quarter of 2023, material costs were lower than 
in the prior year. 

Production and Precision Agriculture Operations 

Net sales 

Sales volume and other 
Price realization 
Currency translation 

Operating profit 
Operating margin 

22023 

22022 

  $   26,790   $   22,002  

  %% Change 
+22  
+7  
+15  

 6,996    
26.1%    

 4,386  
19.9%    

+60  

Sales volumes increased 10 percent in the U.S. and Canada, 
32 percent in Australia, and 9 percent in Western Europe, partially 
offset by the effect of suspension of shipments to Russia. Price 
realization was 17 percent in the U.S. and Canada and 12 percent 
outside the U.S. and Canada, driven by strong demand. Prior 
period results were impacted by special items (see Note 4).  

Construction and Forestry Operations 

Net sales 

Sales volume and other 
Price realization 
Currency translation 

Operating profit 
Operating margin 

22023 
 14,795   $ 

  $ 

 2,695    
18.2%    

22022 
 12,534  

  %% Change 
+18  
+9  
+10  
-1  
+34  

 2,014  
16.1%    

Sales volumes increased 18 percent in the U.S. and Canada but 
decreased 6 percent outside the U.S. and Canada driven by lower 
sales in Brazil and the suspension of shipments to Russia. Price 
realization was 12 percent in the U.S. and Canada driven by strong 
demand, and 7 percent outside the U.S. and Canada. Results in 
both periods were impacted by special items (see Note 4).  

Small Agriculture and Turf Operations 

Net sales 

Sales volume and other 
Price realization 
Currency translation 

Operating profit 
Operating margin 

2023 
  $   13,980   $ 

 2,472    
17.7%    

2022 
 13,381  

  % Change 
+4   
-4   
+9  
-1   
+27   

 1,949  
14.6%    

Sales volumes decreased 8 percent in the U.S. and Canada but 
increased 18 percent in Mexico and 2 percent in Western Europe.  

32 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
 
   
 
   
 
 
   
 
   
 
 
 
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
 
   
 
   
 
 
   
 
   
 
 
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
 
   
 
   
 
 
   
 
   
 
 
   
   
 
 
 
 
 
Financial Services Operations 

Revenue (including intercompany) 

  $ 

Average balance of receivables and 

leases 

Interest expense 

Average borrowings 
Average borrowing rates 

Net income 

22023 
 5,554   $ 

22022 
 4,085  

  %% Change  
+36  

 2,362    

 799  

 619    

 880  

+19  
+196  
+20  
+143  
-30  

Average wholesale receivables increased 72 percent and retail 
notes increased 13 percent driven by higher equipment sales. 
Revenue also increased due to higher average financing rates. Net 
income declined as a result of unfavorable financing spreads and a 
correction of the accounting treatment for financing incentives 
offered to John Deere dealers (see Note 4). In 2022, financial 
services increased the provision for credit losses in Russia and 
recorded an intercompany benefit from the equipment operations, 
which guarantees financial services’ investments in certain 
international markets, including Russia (see Note 4). The Russia-
related impacts are displayed in the “Other” bar below.  

are forecasting lower operating cash flows in 2024 compared with 
2023 as identified previously in Trends and Economic Conditions.  

We operate in multiple industries, which have unique funding 
requirements. The equipment operations are capital intensive. 
Historically, these operations have been subject to seasonal 
variations in financing requirements for inventories and 
receivables from dealers. However, the patterns of seasonality 
have been affected by the supply chain disruptions experienced 
during fiscal year 2022.  

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

Key Metrics and Balance Sheet Changes 

Cash, Cash Equivalents and Marketable Securities 

2023

8,404 

5,508 

2022
•  See the detailed cash flow discussion in the next section.  
•  The increase was primarily driven by higher operating cash 

flow. 

Trade Accounts and Notes Receivable – Net 

2023

7,739 

2022
•  Receivables are generated from the sales of goods to 

6,410 

customers.  

•  The increase was driven by higher sales. 

Financing Receivables and Equipment on Operating Leases 

2023

57,925 

2022
49,193 
•  Acquisition volumes were 30 percent higher driven by higher 

retail volumes due to increased retail sales and higher 
wholesale receivables. 

BUSINESS SEGMENT RESULTS 

2022 compared to 2021 

Please refer to the “Management’s Discussion and Analysis” 
section of our 2022 Form 10-K. 

Inventories 

2023

8,160 

CAPITAL RESOURCES AND 
LIQUIDITY 

2023 compared to 2022 

We have access to global markets at a reasonable cost. Sources of 
liquidity include:  
•  cash, cash equivalents, and marketable securities on hand,  
•  funds from operations,  
•  the issuance of commercial paper and term debt,  
•  the securitization of retail notes, and  
•  bank lines of credit.  
We closely monitor our cash requirements. Based on the available 
sources of liquidity, we expect to meet our funding needs in the 
short term (next 12 months) and long term (beyond 12 months). We 

2022
•  Inventories decreased due to easing of supply disruption 

8,495 

constraints and moderation of future demand. 

Property and Equipment 

2023

6,879 

2022
•  Cash expenditures were $1.5 billion in 2023.  
•  Capital expenditures are forecast to be $1.9 billion in 2024. 

6,056 

33 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
 
   
   
 
   
 
 
   
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
DEBT RATINGS 

To access debt markets, we rely on credit rating agencies to assign 
short-term and long-term credit ratings to our debt. These ratings 
are an indicator of credit quality for fixed income investors. A debt 
rating is not a recommendation by the rating agency to buy, sell, or 
hold. A credit rating agency may change or withdraw company 
ratings based on its assessment of our current and future ability to 
meet interest and principal repayment obligations. Lower credit 
ratings or negative changes to ratings outlooks generally result in 
higher borrowing costs, including costs of derivative transactions, 
and reduced access to debt capital markets, and may adversely 
impact our liquidity. 

The senior long-term and short-term debt ratings and outlook 
currently assigned to unsecured company securities by the rating 
agencies engaged by us are as follows: 

Senior 

  Long-Term   Short-Term    Outlook 

Fitch Ratings 
Moody’s Investors Service, Inc.    
Standard & Poor’s  

A+ 
A2 
A 

F1 
Prime-1 
A-1 

Stable 
   Positive 
Stable 

CONTRACTUAL OBLIGATIONS 
AND CASH REQUIREMENTS 

2024 and Beyond 

Our material cash requirements include the following: 

Borrowings – As of October 29, 2023, we had $21.2 billion of 
payments due on borrowings and securitization borrowings in the 
next year, along with interest payments of $2.2 billion. The 
securitization borrowing payments are based on the expected 
liquidation of the retail notes. See Notes 12 and 19 for additional 
borrowing details. These payments will likely be replaced with new 
borrowings to finance the receivable and lease portfolio, which is 
expected to grow in 2024. 

Purchase Obligations – As of October 29, 2023, our outstanding 
purchase obligations were $4.5 billion, with $4.1 billion payable 
within one year. These purchase obligations are noncancelable. 

Other Cash Requirements – In addition to our contractual 
obligations, we have the following commitments: 
• 
• 

capital expenditures of $1.9 billion are planned for 2024, 
expected quarterly cash dividend throughout 2024 (subject 
to change at the discretion of our Board of Directors), and 
total pension and OPEB contributions in 2024 are expected 
to be approximately $225. 

Share repurchases will be considered as a means of deploying 
excess cash to shareholders, once the previously mentioned 
requirements are met.  

Borrowings 

2023

63,411 

2022
51,899 
•  Borrowings increased corresponding with the level of the 

financing receivable and lease portfolios.   

Unused Credit Lines 

2023

841 

2022
3,284 
•  The decrease in unused credit lines was due to an increase in 

commercial paper outstanding to fund growth in the receivable 
portfolios. 

Financial Services Ratio of Interest-Bearing Debt to Stockholder’s 
Equity 

2023

2022

8.4  to 1

8.5 to 1

CASH FLOWS 

2023, 2022, and 2021 

Net cash provided by operating activities   $ 
Net cash used for investing activities 
Net cash provided by (used for) 

22023 
 8,589   $ 
 (8,749)   

22022 
 4,699   $ 
 (8,485)   

22021 
 7,726  
 (5,750) 

financing activities 

 2,808    

 826    

 (1,078) 

Effect of exchange rate changes on cash, 
cash equivalents, and restricted cash 
Net increase (decrease) in cash, cash 
equivalents, and restricted cash 

  $ 

 31    

 (224)   

 55  

 2,679   $ 

 (3,184)  $ 

 953  

Operating cash flows in 2023 were higher due to an increase in net 
income and lower inventory offset by higher receivables related to 
sales, while operating cash flows in 2022 were impacted by a 
$1 billion other postretirement benefit (OPEB) contribution.  

Cash outflows from investing activities were $8.7 billion in 2023 
due to growth in the financing receivable and lease portfolios, and 
purchases of property and equipment. 

Cash inflows from financing activities were $2.8 billion in 2023, as 
higher borrowings were partially offset by repurchases of common 
stock and dividends paid. 

Cash Returned to Shareholders 

• 

2023

1,427 

7,216 

2022

1,313 

3,597 

2021

1,040 

2,538 

Dividends

Share Repurchases

Cash returned to shareholders increased $3.7 billion in 2023. 

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
 
 
 
 
 
 
 
 
    
   
 
    
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
CRITICAL ACCOUNTING 
ESTIMATES 

The timely preparation of financial statements requires 
management to make estimates and assumptions. Those estimates 
affect reported amounts in these financial statements. Changes in 
those estimates and assumptions could have a significant effect. 
The following estimates are the most critical to our financial 
statements:  
•  sales incentives, 
•  product warranties, 
•  postretirement benefit obligations, 
•  allowance for credit losses, 
•  operating lease residual values, and 
•  income taxes.  

These items require the most difficult, subjective, or complex 
judgments. Our accounting policies are described primarily in 
Note 2 of our consolidated financial statements. 

Sales Incentives 
We provide sales incentives to dealers. These incentives are 
offered in two forms: 
•  volume bonuses – awarded based on a dealer’s sales volume 

and performance, and 

•  retail sales incentive programs – discounts or financing 

programs that are due when the dealer sells the equipment to a 
retail customer.  

The estimated cost of these programs is based on: 
•  historical data,  
•  announced and expected incentive programs,  
•  field inventory levels, and  
•  forecasted sales volumes.  

At the time a sale is recognized, we record an estimate of the sales 
incentive costs. The final cost is determined at the end of the 
volume bonus measurement period or at the time of the retail sale.  

There are numerous programs available at any time, and new 
programs may be announced after we record the equipment sale 
to the dealer. Changes in the mix and types of sales incentive 
programs affect these estimates, which are reviewed quarterly. 
Actual cost differences from the original cost estimate are 
recognized in “Net sales.” 

Sales Incentive Accruals 

2,286 

1,243 

1,320 

1,044 

880 

800 

2023

2022

2021

Trade A/R

A/P and accrued expenses

The accruals recorded against receivables relate to programs where 
we have the contractual right and the intent to offset against 
existing receivables. The increase in each of 2023 and 2022 
primarily resulted from higher retail sales. Additional factors in 

2023 were higher incentives for dealer market share and incentives 
provided to offset elevated interest rates.  

A key assumption of the retail sales incentive accrual is the 
predictive value of the historical percent of retail sales incentive 
costs to retail sales. Over the last five fiscal years, this percent has 
varied by an average of .7 percent. Holding other assumptions 
constant, .7 percent change would have modified the sales 
incentive accrual by $105. 

Product Warranties 
A standard warranty is provided as an assurance that our equipment 
will function as intended. The standard warranty period varies by 
product and region.  

At the time a sale is recognized, we record an estimate of future 
warranty costs, based on the following calculation: 
•  historical claims rate experience – multiplied by – 
•  the estimated population.  

The historical claims rate is determined by a review of five-year 
claims costs. The estimated population is based on dealer inventories 
and retail sales. These estimates are reviewed quarterly. Adjustments 
are also made for current quality developments.  

Product Warranty Accruals 

2023

2022

2021

1,610 

1,427 

1,312 

The increase in each of 2023 and 2022 related to higher sales 
volumes, partially offset by a decrease in the warranty rate.  

Product warranty accrual estimates are affected by the historical 
percent of warranty claims costs as a percentage of gross sales. 
During this time, the percent has varied plus or minus .12 percent. 
Holding all other assumptions constant, if this estimated cost 
experience percent would have increased or decreased .12 percent, 
the warranty accrual at October 29, 2023 would have changed by 
approximately $81. 

Postretirement Benefit Obligations 
The pension and OPEB plan obligations (defined benefit) and 
expenses require the use of estimates. The main estimate is the 
present value of the projected future benefit payments. These 
future benefit payments extend several decades. 

The estimates are based on existing retirement plan provisions. No 
assumption is made regarding any potential changes to benefit 
provisions beyond those to which we are presently committed 
(e.g., in existing labor contracts).  

The key assumptions used by our actuaries to calculate the 
estimates include: 
•  discount rates,   
•  health care cost trend rates,   
•  expected long-term return on plan assets,   
•  compensation increases,   

35 

 
 
 
 
 
 
 
•  retirement rates,   
•  mortality rates, and   
•  expected contributions.   
Assumptions are set each year-end. These assumptions are not 
changed during the year unless there is a significant plan event. 
Actual results that differ from the assumptions affect future 
expenses and obligations. 

The key pension and OPEB amounts follow: 

Pension and OPEB net 

(benefit) cost 

  $ 

 (13)  $ 

 176   $ 

 197  

22023 

2022 

2021 

Long-term expected return 
on pension and OPEB 
plan assets (as a percent)   

Long-term expected return 
on pension and OPEB 
plan assets 

Actual return (loss) on 

pension and OPEB plan 
assets 

Pension assets, net of 
pension liabilities 

OPEB liabilities, net of OPEB 

6.2  

5.0  

5.9  

 995  

 836  

 876  

 (395) 

 (3,565) 

 3,616  

 2,076  

 2,690  

 2,665  

assets 

 1,001  

 1,205  

 3,175  

The reduction in the 2023 pension and OPEB net (benefit) cost was 
due to increased expected long-term return rates on plan assets 
and increased discount rates. 

The effect of hypothetical changes to selected assumptions on our 
major U.S. retirement benefit plans would be as follows: 

  OOctober 29, 2023   
Increase 
(Decrease) 
     PBO/APBO* 

22024 
Increase 
  (Decrease)  
     Expense    

  Percentage 
      Change 

+/-.5 

  $ 

(414)/456 

  $ 

3/(3)  

+/-.5 

+/-.5 

+/-.5 

(63)/63  

(120)/130 

(4)/5  

(10)/10  

Assumptions 
Pension 
Discount rate** 
Expected return on 

assets 

OPEB 
Discount rate** 
Expected return on 

assets 

Health care cost  
trend rate** 

   39/(34)  
*  Projected benefit obligation (PBO) for pension plans and accumulated 

231/(202) 

+/-1.0 

postretirement benefit obligation (APBO) for OPEB plans. 

**  Pretax impact on service cost, interest cost, and amortization of gains 

or losses. 

Allowance for Credit Losses 
The allowance for credit losses is an estimate of the credit losses 
expected over the life of the receivable portfolio. The allowance is 
measured on a collective basis for receivables with similar risk 
characteristics. Receivables that do not share risk characteristics 
are evaluated on an individual basis. Risk characteristics include: 
•  finance product category,  

36 

•  market,  
•  geography,  
•  credit risk, and  
•  remaining balance.  

We utilize the following loss forecast models to estimate expected 
credit losses: 
•  Transition matrix models are used for large and complex retail 
customer receivable pools. These models are used for more 
than 90 percent of retail customer receivables. Historical 
portfolio performance and current delinquency levels are used 
to forecast future defaults. Estimated recovery rates are 
applied to the estimated default balance to calculate the 
expected credit losses.  

•  Weighted average remaining maturity (WARM) models are 
used for smaller and less complex retail customer receivable 
pools.  

•  Historical loss rate models are used on wholesale receivables, 
with consideration of current economic conditions and dealer 
financial risk.  

The model output is adjusted for forecasted economic conditions, 
which may include the following economic indicators:  
•  commodity prices,  
•  industry equipment sales,  
•  unemployment rates, and  
•  housing starts.  
Management reviews each model’s output quarterly, and 
qualitative adjustments are incorporated as necessary. 

2023

2022

2021

Allowance for Credit Losses 

232 

207 

361 

The allowance decreased in 2023 due to the disposition of the 
receivable portfolio in Russia (see Note 11). Excluding the portfolio 
in Russia, the allowance increased slightly as higher portfolio 
balances and higher expected losses on turf and construction 
customer accounts. The allowance increased in 2022 due to higher 
reserves related to the economic uncertainty in Russia.  

While we believe our allowance is sufficient to provide for losses 
over the life of our existing receivable portfolio, different 
assumptions would result in changes to the allowance for credit 
losses, specifically: 
•  For the wholesale receivable portfolio: Changes in economic 

conditions have historically had limited impact on credit losses. 

•  Within the retail customer receivable portfolio: Credit loss 
estimates are dependent on a number of factors, including 
historical portfolio performance, current economic conditions, 
current delinquency levels, and estimated recoveries on 
defaulted accounts.  

 
 
 
    
     
     
  
 
 
 
 
 
 
  
 
 
 
 
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
  
 
  
  
 
 
 
 
  
  
 
  
 
 
 
Holding all other factors constant, a 10 percent increase in the 
transition matrix models’ forecasted defaults and a simultaneous 
10 percent decrease in recovery rates would have resulted in a $53 
increase to the allowance for credit losses at October 29, 2023. 

Operating Lease Residual Values 
Equipment on operating leases is depreciated to the estimated 
residual value over the lease term. The residual values are based on 
several factors, including: 
•  lease term,  
•  expected hours of usage,  
•  historical wholesale sales prices,  
•  return experience,  
•  intended equipment use,  
•  market dynamics and trends, and  
•  dealer residual value guarantees.  

We review residual value estimates during the lease term. 
Depreciation is adjusted over the remaining lease term if residual 
estimates are revised. Impairments are recorded when events or 
circumstances necessitate.  

At the end of the majority of leases, the equipment is disposed in 
the following sequence:  
•  The lessee has the option to purchase the equipment for the 

contractual residual value.  

•  The dealer has the option to purchase the equipment. 
•  The equipment is sold to a third party at the equipment’s fair 
value. In this situation, we may record a gain or a loss for the 
difference between the residual value and the sale price.  

Operating Lease Residual Values 

2023

2022

2021

4,864 

4,640 

5,025 

Hypothetically, if (a) future market values for this equipment were 
to decrease 10 percent from our present estimates and (b) all the 
equipment on operating leases were returned to us for 
remarketing at the end of the lease term, the total unfavorable 
impact after consideration of dealer residual value guarantees 
would be approximately $90. This amount would be recognized as 
higher depreciation expense over the remaining term of the 
operating leases, or potentially as an impairment. 

Income Taxes 
We are subject to federal, state, and foreign income taxes. These 
tax laws can be complex. Significant judgment and interpretation is 
required to implement them. Changes in tax laws could materially 
affect our consolidated financial statements. We record our tax 
positions in the following categories: 
•  current taxes, 
•  deferred taxes, and 
•  uncertain tax positions. 

Deferred income taxes represent temporary differences between 
the tax and the financial reporting basis of assets and liabilities. 

This will result in taxable or deductible amounts in the future. Loss 
carryforwards and tax credits are significant components of 
deferred tax asset balances. These assets are reviewed regularly for 
the following:  
•  the likelihood of recoverability from future taxable income,  
•  reversal of deferred tax liabilities, and  
•  tax planning strategies.  

Valuation allowances are established when we determine that the 
deferred tax benefit may not be realized. The recoverability 
analysis requires significant judgment and relies on estimates. The 
valuation allowance as of October 29, 2023 was $1.6 billion. 
Changes in foreign income tax laws, income for certain 
jurisdictions, or our tax structure could impact the valuation 
allowance balance. 

Some tax positions contain significant uncertainties. These 
positions may be challenged or disallowed by taxing authorities. If 
it is likely the position will be disallowed, no tax benefit is recorded. 
If it is likely the position will be sustained, a tax benefit is 
recognized. The ultimate resolution could take many years. This 
may result in a payment that is significantly different from the 
original estimate. 

See Note 8 for further information on income taxes. 

FORWARD-LOOKING STATEMENTS 

Certain statements contained herein, including in the section 
entitled “Overview” relating to future events, expectations, and 
trends constitute “forward-looking statements” as defined in the 
Private Securities Litigation Reform Act of 1995 and involve 
factors that are subject to change, assumptions, risks, and 
uncertainties that could cause actual results to differ materially. 
Some of these risks and uncertainties could affect all lines of our 
operations generally while others could more heavily affect a 
particular line of business. 

Forward-looking statements are based on currently available 
information and current assumptions, expectations, and 
projections about future events and should not be relied upon. 
Except as required by law, we expressly disclaim any obligation to 
update or revise our forward-looking statements. Many factors, 
risks, and uncertainties could cause actual results to differ 
materially from these forward-looking statements. Among these 
factors are risks related to:  
•  changes in U.S., foreign and international laws, regulations, 
and policies relating to trade, spending, taxing, banking, 
monetary, environmental (including climate change and engine 
emission), and farming policies;  

•  political, economic, and social instability of the geographies in 
which we operate, including the ongoing wars between Russia 
and Ukraine and between Israel and Hamas; 

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

37 

 
 
Further information concerning our businesses, including factors 
that could materially affect our financial results, is included in our 
filings with the SEC (including, but not limited to, the factors 
discussed in Item 1A. “Risk Factors” of this Annual Report on 
Form 10-K). There also may be other factors that we cannot 
anticipate or that are not described herein because we do not 
currently perceive them to be material. 

•  growth and sustainability of non-food uses for crops (including 

ethanol and biodiesel production); 

•  the ability to execute business strategies, including our Smart 
Industrial Operating Model, Leap Ambitions, and mergers and 
acquisitions; 

•  the ability to understand and meet customers’ changing 
expectations and demand for our products and solutions; 
•  accurately forecasting customer demand for products and 

services and adequately managing inventory; 

•  our 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); 

•  our ability to adapt in highly competitive markets; 
•  dealer practices and their ability to manage distribution of our 

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 our products and solutions; 
•  stress in the banking sector may have adverse impacts on 

vendors or customers as well as on our ability to access cash 
deposits; 

•  availability and price of raw materials, components, and whole 

goods; 

•  delays or disruptions in our supply chain; 
•  labor relations and contracts, including work stoppages and 

other disruptions; 

•  the ability to attract, develop, engage, and retain qualified 

personnel; 

•  security breaches, cybersecurity attacks, technology failures, 

and other disruptions to our information technology 
infrastructure and products;  

•  loss of or challenges to intellectual property rights;  
•  compliance with evolving U.S. and foreign laws, including 

economic sanctions, data privacy, and environmental laws and 
regulations; 

•  legislation introduced or enacted that could affect our 

business model and intellectual property, such as so-called 
right to repair or right to modify legislation; 

•  investigations, claims, lawsuits, or other legal proceedings; 
•  events that damage our reputation or brand; 
•  world grain stocks, available farm acres, 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. 

38 

 
SUPPLEMENTAL CONSOLIDATING DATA 

The supplemental consolidating data presented on the subsequent pages is presented for informational purposes. The equipment 
operations represents the enterprise without financial services. The equipment operations includes production and precision agriculture 
operations, small agriculture and turf operations, construction and forestry operations, and other corporate assets, liabilities, revenues, 
and expenses not reflected within financial services. Transactions between the “equipment operations” and “financial services” have been 
eliminated to arrive at the consolidated financial statements. 

The equipment operations and financial services participate in different industries. The equipment operations generate earnings and cash 
flows by manufacturing and selling equipment, service parts, and technology solutions to dealers and retail customers. Financial services 
finances sales and leases by dealers of new and used equipment that is largely manufactured by us. Those earnings and cash flows 
generally are the difference between the finance income received from customer payments less interest expense, and depreciation on 
equipment subject to an operating lease. The two businesses are capitalized differently and have separate performance metrics. The 
supplemental consolidating data is also used by management due to these differences. 

INCOME STATEMENTS 
For the Years Ended October 29, 2023, October 30, 2022, and October 31, 2021 
Unaudited 

EEQUIPMENT 
OOPERATIONS 
22022 

  22023 

FFINANCIAL  
SSERVICES 
  22022 

  22021 

22021 

22023 

 $  55,565  $  47,917  $  39,737  

EELIMINATIONS 
  22022   

22023 

22021 

CCONSOLIDATED 
22022 

22023 

22021 

Net Sales and Revenues 
Net sales 
Finance and interest income 
Other income 

Total 

 636  
 858  
 57,059  

 213  
 1,261  
 49,391  

 133   $  5,055   $  3,583   $  3,442   $  (1,008)  $  (431)  $  (279) 
 (302) 
 352  
 941  
 (581) 
 3,794  
 40,811  

 502  
 4,085  

 (354) 
 (1,362) 

 499  
 5,554  

 (468) 
 (899) 

 4,683  
 1,003  
 61,251  

 3,365  
 1,295  
 52,577  

 1   
 991   2, 3  

 44,024  

  $  55,565   $  47,917   $  39,737   
 3,296  

Costs and Expenses 
Cost of sales 
Research and development expenses 
Selling, administrative and 

general expenses 

Interest expense 
Interest compensation to Financial Services  
Other operating expenses 

Total 

 37,739  
 2,177  

 35,341  
 1,912  

 29,119  
 1,587  

 (24) 

 (3) 

 (3) 

 37,715  
 2,177  

 35,338  
 1,912  

 4   

 29,116  
 1,587  

 3,611  
 411  
 687  
 217  
 44,842  

 3,137  
 390  
 299  
 350  
 41,429  

 2,887  
 368  
 217  
 181  
 34,359  

 994  
 2,362  

 735  
 799  

 504  
 687  

 1,396  
 4,752  

 1,386  
 2,920  

 1,453  
 2,644  

 (10) 
 (320) 
 (687) 
 (321) 
 (1,362) 

 (9) 
 (127) 
 (299) 
 (461) 
 (899) 

 (8) 
 (62) 
 (217) 
 (291) 
 (581) 

 4,595  
 2,453  

 3,863  
 1,062  

 1,292  
 48,232  

 1,275  
 43,450  

 3,383  
 993  

 4   
 1   
 1   
 1,343  5, 6  

 36,422  

Income before Income Taxes 
Provision for income taxes 

 12,217  
 2,685  

 7,962  
 1,718  

 6,452  
 1,386  

 802  
 186  

 1,165  
 289  

 1,150  
 272  

 9,532  

 6,244  

 5,066  

 616  

 876  

 878  

 13,019  
 2,871  

 9,127  
 2,007  

 7,602  
 1,658  

 10,148  

 7,120  

 5,944  

Income after Income Taxes 
Equity in income 

of unconsolidated affiliates 

Net Income 
Less: Net income (loss) attributable to 

noncontrolling interests 
Net Income Attributable to 

Deere & Company 

 4  

 6  

 18  

 3  

 4  

 3  

 7  

 10  

 21  

 9,536  

 6,250  

 5,084  

 619  

 880  

 881  

 10,155  

 7,130  

 5,965  

 (11) 

 (1) 

 2  

 (11) 

 (1) 

 2  

 $ 

 9,547  $  6,251  $  5,082   $ 

 619   $  880   $  881  

  $   10,166   $

 7,131   $  5,963  

1 Elimination of intercompany interest income and expense.   
2 Elimination of equipment operations’ margin from inventory transferred to equipment on operating leases (see Note 6). 
3 Elimination of financial services’ income related to intercompany guarantees of investments in certain international markets and intercompany service revenues. 
4 Elimination of intercompany service fees. 
5 Elimination of financial services’ lease depreciation expense related to inventory transferred to equipment on operating leases. 
6 Elimination of equipment operations’ expense related to intercompany guarantees of investments in certain international markets and intercompany service expenses. 

39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
  
 
  
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
    
     
     
      
     
     
      
     
     
      
     
      
  
 
 
   
    
 
 
   
   
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
   
   
 
 
 
 
 
SUPPLEMENTAL CONSOLIDATING DATA (continued) 

CONDENSED BALANCE SHEETS 
As of October 29, 2023 and October 30, 2022 
Unaudited 

EEQUIPMENT 
OOPERATIONS 

FFINANCIAL 
SSERVICES 

EELIMINATIONS 

2023 

2022 

2023 

2022 

2023 

2022 

CCONSOLIDATED 

2023 

2022 

ASSETS 
Cash and cash equivalents  
Marketable securities  
Receivables from Financial Services  
Trade accounts and notes receivable – net  
Financing receivables – net  
Financing receivables securitized – net  
Other receivables  
Equipment on operating leases – net  
Inventories  
Property and equipment – net  
Goodwill  
Other intangible assets – net  
Retirement benefits  
Deferred income taxes  
Other assets  
Total Assets  

LIABILITIES AND STOCKHOLDERS’ EQUITY 

LIABILITIES 
Short-term borrowings  
Short-term securitization borrowings  
Payables to Equipment Operations  
Accounts payable and accrued expenses  
Deferred income taxes  
Long-term borrowings  
Retirement benefits and other liabilities  

Total liabilities  

Commitments and contingencies (Note 20) 
Redeemable noncontrolling interest (Note 3) 

STOCKHOLDERS’ EQUITY 
Total Deere & Company stockholders’ equity  
Noncontrolling interests  
Financial Services' equity 

Adjusted total stockholders' equity 
Total Liabilities and Stockholders’ Equity  

  $ 

 5,720   $ 
 104  
 4,516  
 1,320  
 64  

 3,767   $ 
 61  
 6,569  
 1,273  
 47  

 1,813  

 1,670  

 8,160  
 6,843  
 3,900  
 1,133  
 2,936  
 2,133  
 1,948  
 40,590   $ 

 8,495  
 6,021  
 3,687  
 1,218  
 3,666  
 940  
 1,794  
 39,208   $ 

  $ 

  $ 

 1,230   $ 

 1,040   $ 

 14,862  
 452  
 7,210  
 2,032  
 25,786  

 12,962  
 380  
 7,917  
 2,351  
 24,650  

 97  

 92  

 21,785  
 4  
 (7,082) 
 14,707  
 40,590   $ 

 20,262  
 3  
 (5,799) 
 14,466  
 39,208   $ 

  $ 

 1,738   $ 
 842  

 1,007  
 673  

   $

 8,687  
 43,609  
 7,335  
 869  
 6,917  

 6,434  
 36,587  
 5,936  
 832  
 6,623  

 36  

 35  

 (4,516)  $  (6,569) 
 (1,297) 
 (2,268) 

 (59) 

 (10) 

  $ 

 7,458   $ 
 946  

 4,774  
 734  

 7,739  
 43,673  
 7,335  
 2,623  
 6,917  
 8,160  
 6,879  
 3,900  
 1,133  
 3,007  
 1,814  
 2,503  

 7   
 8   

 8   

 6,410  
 36,634  
 5,936  
 2,492  
 6,623  
 8,495  
 6,056  
 3,687  
 1,218  
 3,730  

 9   
 824    10  
 2,417  
 90,030  

 72  
 68  
 559  
 70,732   $ 

 66  
 45  
 626  
 58,864   $ 

 (1) 
 (387) 
 (4) 
 (7,235)  $ 

 (2) 
 (161) 
 (3) 

 (8,042)  $   104,087   $ 

 16,709   $ 
 6,995  
 4,516  
 3,599  
 455  
 31,267  
 109  
 63,650  

 11,552  
 5,711  
 6,569   $ 
 3,170  
 276  
 25,679  
 108  
 53,065  

  $ 

 17,939   $ 
 6,995  

 12,592  
 5,711  

 (4,516)  $ 
 (2,331) 
 (387) 

 (6,569) 
 (1,310) 
 (161) 

 (1) 
 (7,235) 

 (2) 
 (8,042) 

 16,130  
 520  
 38,477  
 2,140  
 82,201  

 14,822  

 7   
 8   
 495    10  

 33,596  
 2,457  
 69,673  

 9   

 7,082  

 5,799  

 (7,082) 

 (5,799) 

 7,082  

 5,799  

 97  

 92  

 21,785  
 4  

 20,262  
 3  

 11   

 11   

 7,082  
 70,732   $ 

 5,799  
 58,864   $ 

 (7,235)  $ 

 (8,042)  $   104,087   $ 

 21,789  

 20,265  
 90,030  

7  Elimination of receivables / payables between equipment operations and financial services. 
8  Primarily reclassification of sales incentive accruals on receivables sold to financial services.  
9  Reclassification of net pension assets / liabilities. 
10 Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions. 
11  Elimination of financial services’ equity. 

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
   
 
 
    
    
 
    
 
    
 
     
   
 
 
                     
                     
                   
                    
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
  
  
 
 
 
 
 
 
  
 
 
 
  
  
 
 
 
  
 
 
 
 
  
  
 
 
 
 
  
 
 
  
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
  
 
 
 
 
  
 
 
 
  
  
 
 
 
 
 
 
  
 
 
 
  
  
 
 
 
  
 
 
 
 
  
 
 
 
  
  
 
 
 
  
 
 
 
 
  
 
 
 
  
  
 
 
 
 
  
 
 
  
  
 
 
 
 
  
 
 
  
  
 
 
 
 
  
 
 
 
 
 
 
  
 
  
 
  
 
   
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
  
 
 
 
 
  
  
 
 
 
 
  
 
 
  
  
 
 
 
 
  
 
 
  
  
 
 
 
 
 
 
  
 
 
 
  
  
 
 
 
 
  
 
 
  
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
  
 
 
 
 
  
 
 
  
  
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
  
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
SUPPLEMENTAL CONSOLIDATING DATA (continued) 

STATEMENTS OF CASH FLOWS 
For the Years Ended October 29, 2023, October 30, 2022, and October 31, 2021 
Unaudited 

EEQUIPMENT 
OOPERATIONS 
  2022 

  22023 

22021 

22023 

FFINANCIAL 
SSERVICES 
2022 

22021 

EELIMINATIONS 
  2022 

2023 

22021 

CCONSOLIDATED 
2022 

22021 

2023 

Cash Flows from Operating Activities 
Net income 
Adjustments to reconcile net income to net cash 

provided by operating activities: 

Provision (credit) for credit losses 
Provision for depreciation and amortization 
Impairments and other adjustments 
Share-based compensation expense 
Gain on remeasurement of previously held equity 

investment 

Distributed earnings of Financial Services 
Provision (credit) for deferred income taxes 
Changes in assets and liabilities: 
Receivables related to sales  
Inventories 
Accounts payable and accrued expenses 
Accrued income taxes payable/receivable 
Retirement benefits 

Other 

Net cash provided by operating activities 

 $  9,536    $  6,250    $  5,084    $ 

 619    $ 

 880    $ 

 881   

  $   10,155    $ 

 7,130    $ 

 5,965   

 7   
 1,123   
 18   

 3   
   1,041   
 88   

 7   
   1,043   
 50   

 (23) 
 1,016   
 173   

 189   
 1,050   

 (13) 
 1,140    $ 

 (135)  $ 

 (196)  $ 

 (133) 

 130   

 85   

 82   

 (215) 

 (444) 

 (555) 

 (16) 
 2,004   
 191   
 130   

 (6) 
 2,050   
 50   
 82   

 192   
 1,895   
 88   
 85   

 (326) 

 12   

 13   

 14   

 (326) 
 444   
 8   

 555   
 (369) 

 (189) 
  (1,924) 
  1,444   
 166   
  (1,016) 
 250   
  6,239   

 (105) 
  (1,835) 
   1,589   
 13   
 30   
 (162) 
  5,900   

 215   
 (959) 

 (58) 
 474   
 1,352   
 8   
 (164) 
 367   
 11,919   

 169   

 (74) 

 (72) 

 (790) 

 (66) 

 (441) 

 449   
 (31) 
 (6) 
 (51) 
 2,315   

 143   
 (25) 
 1   
 (287) 
 1,877   

 57   
 (2) 
 (1) 
 (25) 
 1,965   

 (4,195) 
 (195) 
 (971) 

 (2,294) 
 (167) 
 (454) 

   1,074   
 (662) 
 238   

 (64) 
 (5,645) 

 53   
 (3,417) 

 (183) 
 (139) 

 (4,253) 
 279   
 830   
 (23) 
 (170) 
 252   
 8,589  

 (2,483) 
 (2,091) 
 1,133   
 141   
 (1,015) 
 16   
 4,699   

 969   15, 17, 18   
 16   
 17   

 (2,497) 
 1,884   
 11   
 29   

 (370) 12, 13, 16   
 7,726   

 15   

 15   

 16   
 19   
 15   

18   

 19   
 14   

Cash Flows from Investing Activities 
Collections of receivables (excluding receivables related 

to sales) 

Proceeds from sales of equipment on operating leases 
Cost of receivables acquired (excluding receivables 

related to sales)  

Acquisitions of businesses, net of cash acquired 
Purchases of property and equipment 
Cost of equipment on operating leases acquired 
Increase (decrease) in investment in Financial Services 
Decrease (increase) in trade and wholesale receivables 
Collateral on derivatives – net  
Other 

Net cash used for investing activities 

Cash Flows from Financing Activities 
Net proceeds (payments) in short-term borrowings 

(original maturities three months or less) 
Change in intercompany receivables/payables 
Proceeds from borrowings issued (original maturities 

 24,128   
 1,981   

 22,400   
 2,093   

 20,527   
 2,094   

 (1,077) 

 (1,493) 

  (1,568) 

 23,051   
 1,981   

 20,907   
 2,093   

 18,959   
 2,094   

 (82) 
 (1,494) 

   (498) 
 (1,131) 

 (244) 
 (845) 

 (870) 

 7   

 (8) 

 (1) 
 (290) 
 (2,737) 

 5   
 (213) 
  (1,830) 

 (7) 
 70   
  (1,034) 

 (29,229) 

 (26,903) 

 (25,305) 

 457   

 603   

   1,652   

 (4) 
 (3,234) 

 (3) 
 (2,879) 

 (3) 
 (2,627) 

 (5,783) 
 (11) 
 (160) 
 (12,312) 

 (3,601) 
 (647) 
 (81) 
 (9,621) 

 1,364   
 (274) 
 (84) 
 (4,308) 

 264   
 870   
 5,783   

 225   
 (7) 
 3,601   

 895   
 8   
  (1,364) 

 3   
 6,300   

 37   
 2,966   

 (31) 
   (408) 

 (28,772) 
 (82) 
 (1,498) 
 (2,970) 

 (26,300) 
 (498) 
 (1,134) 
 (2,654) 

 (23,653) 
 (244) 
 (848) 
 (1,732) 

 (12) 
 (447) 
 (8,749) 

 (642) 
 (257) 
 (8,485) 

 (281) 
 (45) 
 (5,750) 

 (113) 
 2,090   

 136   
  (1,633) 

 65   
 (354) 

 4,121   
 (2,090) 

 3,716   
 1,633   

 753   
 354   

 4,008   

 3,852   

 818   

greater than three months) 

 342   

 138   

 11   

 15,087   

 10,220   

 8,711   

 15,429   

 10,358   

 8,722   

Payments of borrowings (original maturities greater 

than three months) 

Repurchases of common stock 
Capital investment from Equipment Operations 
Dividends paid 
Other 

Net cash provided by (used for) financing activities 

Effect of Exchange Rate Changes on Cash, Cash 

Equivalents, and Restricted Cash 

Net Increase (Decrease) in Cash, Cash Equivalents, and 

 (901) 
 (7,216) 

  (1,356) 
 (3,597) 

 (94) 
  (2,538) 

 (1,427) 
 (7) 
 (7,232) 

   (1,313) 
 6   
  (7,619) 

  (1,040) 
 87   
  (3,863) 

 (7,012) 

 (7,089) 

 (6,996) 

 870   
 (215) 
 (66) 
 10,695   

 (7) 
 (444) 
 (35) 
 7,994   

 8   
 (555) 
 (37) 
 2,238   

 (870) 
 215   

 7   
 444   

 (8) 
 555   

 (655) 

 451   

 547  

 (7,913) 
 (7,216) 

 (8,445) 
 (3,597) 

 (7,090) 
 (2,538) 

 (1,427) 
 (73) 
 2,808   

 (1,313) 
 (29) 
 826   

 (1,040) 
 50   
 (1,078) 

 24   

 (209) 

 41   

 7   

 (15) 

 14   

 31   

 (224) 

 55   

Restricted Cash 

 1,974   

  (3,419) 

   1,044   

 705   

 235   

 (91) 

 2,679   

 (3,184) 

 953   

Cash, Cash Equivalents, and Restricted Cash at 

Beginning of Year 

 3,781   

  7,200   

   6,156   

 1,160   

 925   

 1,016   

 4,941   

 8,125   

 7,172   

Cash, Cash Equivalents, and Restricted Cash at 

End of Year 

 $   5,755    $   3,781    $  7,200    $ 

 1,865    $ 

 1,160    $ 

 925   

  $ 

 7,620    $ 

 4,941    $ 

 8,125   

Components of Cash, Cash Equivalents, and Restricted 

Cash 

Cash and cash equivalents 
Restricted cash (Other assets) 
Total Cash, Cash Equivalents, and Restricted Cash 

 $  5,720    $  3,767    $   7,188    $ 

 35     

 14     

 12   

 $   5,755    $   3,781    $  7,200    $ 

 1,738    $ 
 127     
 1,865    $ 

 1,007    $ 
 153     
 1,160    $ 

 829   
 96   
 925   

  $ 

  $ 

 7,458    $ 
 162     
 7,620    $ 

 4,774    $ 
 167     
 4,941    $ 

 8,017    
 108    
 8,125    

12 Elimination of depreciation on leases related to inventory transferred to equipment on operating leases (see Note 6). 
13 Reclassification of share-based compensation expense. 
14 Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations operating activities. 
15 Primarily reclassification of receivables related to the sale of equipment. 
16 Reclassification of direct lease agreements with retail customers. 
17 Reclassification of sales incentive accruals on receivables sold to financial services. 
18 Elimination and reclassification of the effects of financial services partial financing of the construction and forestry retail locations sales and subsequent collection of those amounts. 
19 Elimination of investment from equipment operations to financial services. 

41 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
    
     
     
       
     
     
      
     
     
      
     
     
  
 
 
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
 
 
  
 
   
 
   
 
 
 
 
   
 
 
 
 
 
 
 
   
 
   
 
 
 
 
   
 
 
 
 
  
 
    
     
     
 
   
     
     
 
   
     
     
 
   
     
     
  
 
   
     
     
 
  
 
   
     
     
 
 
 
 
   
   
 
 
 
SELECTED FINANCIAL DATA 

Net sales and revenues  
Net sales  
Finance and interest income  
Research and development expenses 
Selling, administrative and general expenses  
Interest expense  
Net income*  
Return on net sales  
Return on beginning Deere & Company 

2017 

  2018 

  2021 

  2016 

  2019 

  2020 

       2023        2022 
  $ 61,251   $  52,577  $ 44,024  $  35,540  $  39,258  $  37,358  $  29,738  $ 26,644  $ 28,863  $ 36,067  
 31,272     34,886      33,351      25,885      23,387      25,775      32,961  
 2,282  
 2,732    
 3,450    
 1,437  
 1,373    
 1,644    
 3,266  
 3,098    
 3,477    
 664  
 899    
 1,247    
 3,162  
 2,159    
 2,751    
9.6%  
8.3%   
8.8%   

 47,917      39,737    
 3,296    
 3,365    
 1,587    
 1,912    
 3,383    
 3,863    
 993    
 1,062    
 5,963    
 7,131    
15.0%   
14.9%   

   55,565     
   4,683     
2,177     
   4,595     
2,453     
10,166     
18.3%   

 2,381    
 1,410    
 2,868    
 680    
 1,940    
7.5%   

 3,107    
 1,658    
 3,455    
 1,204    
 2,368    
7.1%   

 3,493    
 1,783    
 3,551    
 1,466    
 3,253    
9.3%   

 2,511    
 1,394    
 2,791    
 764    
 1,524    
6.5%   

  2015 

  2014 

stockholders’ equity  
Comprehensive income*  

  50.2%   
   10,099     

38.7%   
 6,629    

46.1%   
 8,963    

24.1%   
 2,819    

28.8%    24.8%   
 3,222    
 2,081    

33.1%   
 3,221    

22.6%   
 627    

21.4%   
 994    

30.8%  
 2,072  

Net income per share – basic*  

  – diluted*  

Dividends declared per share  
Dividends paid per share  
Average number of common shares 
outstanding (in millions) – basic  

  – diluted  

  $ 34.80   $  23.42  $  19.14  $
 18.99    
 3.61    
 3.32    

 23.28    
 4.36    
 4.28    

34.63     
5.05     
4.83     

 8.77  $  10.28  $  7.34  $
 7.24    
 10.15    
 8.69    
 2.58    
 3.04    
 3.04    
 2.49    
 2.97    
 3.04    

 6.76  $
 6.68    
 2.40    
 2.40    

 4.83  $
 4.81    
 2.40    
 2.40    

 5.81  $
 5.77    
 2.40    
 2.40    

 8.71  
 8.63  
 2.22  
 2.13  

292.2     
   293.6     

 304.5    
 306.3    

 311.6    
 314.0    

 313.5    
 316.6    

 316.5    
 320.6    

 322.6    
 327.3    

 319.5    
 323.3    

 315.2    
 316.6    

 333.6    
 336.0    

 363.0  
 366.1  

Total assets  
Trade accounts and notes receivable – net    
Financing receivables – net  
Financing receivables securitized – net  
Equipment on operating leases – net  
Inventories  
Property and equipment – net  
Short-term borrowings 
Short-term securitization borrowings 
Long-term borrowings 
Total Deere & Company stockholders’ equity   

 4,171    

 3,011    

 7,739    

 6,410    

 3,925    

 4,208    

 5,230      5,004    

  $ 104,087  $ 90,030  $  84,114  $  75,091  $  73,011  $  70,108  $  65,786  $  57,918  $  57,883  $  61,267  
 3,278  
    43,673      36,634      33,799      29,750      29,195     27,054      25,104      23,702     24,809      27,422  
 4,602  
 4,016  
 4,210  
 5,578  
 8,018  
 4,553  
 3,957  
 33,596     32,888      32,734      30,229      27,237      25,891      23,703      23,775      24,318  
 9,063  

 4,159    
 4,383    
 4,022    
 4,703    
 6,594    
 7,567    
 7,165    
 7,298    
 3,904    
 6,149    
 5,975    
 4,999    
 5,817    
 5,068    
 5,973      5,868    
 8,582      10,784      11,062      10,035    
 4,119  
 4,682  

 7,335    
 6,917    
 8,160    
 6,879    
 17,939  
 6,995  
   38,477  
   21,785       20,262    

 5,936    
 6,623    
 8,495    
 6,056    
 12,592    
 5,711  

 4,659    
 6,988    
 6,781    
 5,820    
 10,919    
 4,605  

 5,127    
 5,902    
 3,341    
 5,171    
 6,911    
 4,998  

 4,835    
 4,970    
 3,817    
 5,181    
 8,425    
 4,585  

 11,413      11,288    

 12,937    

 18,431    

 6,520    

 6,743    

 9,557    

 3,051    

 4,321  

Book value per share*  
Capital expenditures  
Number of employees (at year end)  
*     Attributable to Deere & Company.. 

  $
  $

77.37   $  67.82  $  59.83  $  41.25  $  36.45  $  35.45  $  29.70  $  20.71  $  21.29  $  26.23  
 655  $  1,004  
1,537   $
   82,956       82,239      75,550     69,634      73,489      74,413     60,476      56,767      57,180     59,623  

 762  $  1,084  $

 1,176  $

 668  $

 969  $

 586  $

 867  $

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
  
  
 
 
  
 
  
 
  
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Foreign Currency Risk 
In the equipment operations, the practice is to hedge significant 
currency exposures. Worldwide foreign currency exposures are 
reviewed quarterly. Based on the anticipated and committed 
foreign currency cash inflows, outflows, and hedging policy for 
the next twelve months, we estimate that a hypothetical 
10 percent strengthening of the U.S. dollar relative to other 
currencies through 2024 would increase the 2024 expected net 
cash inflows by approximately $25. At October 29, 2023, a 
hypothetical 10 percent strengthening of the U.S. dollar under 
similar assumptions and calculations indicated a potential $125 
decrease on the 2023 net cash inflows. The estimated impacts by 
currency follow:  

Australian dollar 
Brazilian real 
British pound 
Canadian dollar 
Euro 
Japanese yen 
Mexican peso 
Polish Zloty 
All other 
Total increase (decrease) 

  $ 

  $ 

22024 

22023 

 (75)  $ 
 25  
 (50) 

 75  
 75  
 25  
 (25) 
 (25) 
 25   $ 

 (100) 
 (150) 
 (25) 
 (25) 
 50  
 125  
 25  
 (25) 

 (125) 

In the financial services operations, our policy is to manage 
foreign currency risk through hedging strategies if the currency 
of the borrowings does not match the currency of the receivable 
portfolio. As a result, a hypothetical 10 percent adverse change 
in the value of the U.S. dollar relative to all other foreign 
currencies would not have a material effect on the financial 
services cash flows. 

FINANCIAL INSTRUMENT MARKET RISK INFORMATION 

We are naturally exposed to various interest rate and foreign 
currency risks. As a result, we enter into derivative transactions 
to manage this exposure and not for speculative purposes. 

From time to time, we enter into interest rate swap agreements 
to manage our interest rate exposure. We also have foreign 
currency exposures at some of our foreign and domestic 
operations related to buying, selling, and financing in currencies 
other than the functional currencies. We have entered into 
derivative agreements related to the management of these 
foreign currency transaction risks. 

Interest Rate Risk 
Results of Operations – Central bank policy rates increased in 
2022 and 2023. Rising interest rates have historically impacted 
our borrowings sooner than the benefit is realized from the 
financing receivable and equipment on operating lease 
portfolios. As a result, our financial services operations 
experienced spread compression in 2023. If interest rates 
continue to rise, we expect to continue experiencing spread 
compression in 2024. 

Fair Value Measurement – Quarterly, we use a combination of 
cash flow models to assess the sensitivity of our financial 
instruments with interest rate exposure to changes in market 
interest rates. The models calculate the effect of adjusting 
interest rates as follows:  
•  cash flows for financing receivables are discounted at the 
current prevailing rate for each receivable portfolio,  
•  cash flows for marketable securities are discounted at the 

applicable benchmark yield curve plus market credit spreads,  

•  cash flows for unsecured borrowings are discounted at the 
applicable benchmark yield curve plus market credit spreads 
for similarly rated borrowers,  

•  cash flows for securitized borrowings are discounted at the 
swap yield curve plus a market credit spread for similarly 
rated borrowers, and  

•  cash flows for interest rate swaps are projected and 

discounted using forward rates from the swap yield curve at 
the repricing dates.  

The net impact in these financial instruments’ fair values which 
would be caused by decreasing or increasing the interest rates 
by 10 percent from the market rates at October 29, 2023 and 
October 30, 2022 would have been approximately $10 and $50, 
respectively. 

Reference Rate Reform – We transitioned our financing, 
funding, and hedging portfolios from the London Interbank 
Offered Rate (LIBOR) to alternative reference rates in 2023. In 
2024, we will transition certain portfolios from the Canadian 
Dollar Offered Rate (CDOR) to an alternative reference rate. 
These transition activities did not / are not expected to have a 
material impact on our financial statements. 

43 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEERE & COMPANY 
STATEMENTS OF CONSOLIDATED INCOME 
For the Years Ended October 29, 2023, October 30, 2022, and October 31, 2021 

Net Sales and Revenues 
Net sales  
Finance and interest income  
Other income  
Total  

Costs and Expenses 
Cost of sales  
Research and development expenses  
Selling, administrative and general expenses  
Interest expense  
Other operating expenses  

Total  

Income of Consolidated Group before Income Taxes  
Provision for income taxes  

Income of Consolidated Group  
Equity in income of unconsolidated affiliates 

Net Income  

Less:  Net income (loss) attributable to noncontrolling interests 

Net Income Attributable to Deere & Company  

Per Share Data 
Basic  
Diluted  
Dividends declared  
Dividends paid 

Average Shares Outstanding (In millions of shares)  
Basic  
Diluted  

The notes to consolidated financial statements are an integral part of this statement. 

2023 

2022 

2021 

  $ 

  $ 

  $ 

 55,565  
 4,683  
 1,003  
 61,251  

 37,715  
 2,177  
 4,595  
 2,453  
 1,292  
 48,232  

 13,019  
 2,871  

 10,148  
 7  

 10,155  
 (11) 
 10,166  

34.80   
34.63   
5.05   
4.83   

292.2   
293.6   

$ 

$ 

$ 

 47,917  
 3,365  
 1,295  
 52,577  

 35,338  
 1,912  
 3,863  
 1,062  
 1,275  
 43,450  

 9,127  
 2,007  

 7,120  
 10  

 7,130  
 (1) 
 7,131  

 23.42  
 23.28  
 4.36  
 4.28  

 304.5  
 306.3  

$ 

 39,737  
 3,296  
 991  
 44,024  

 29,116  
 1,587  
 3,383  
 993  
 1,343  
 36,422  

 7,602  
 1,658  

 5,944  
 21  

 5,965  
 2  
 5,963  

 19.14  
 18.99  
 3.61  
 3.32  

 311.6  
 314.0  

$ 

$ 

44 

 
 
     
             
             
 
 
 
 
 
 
  
  
  
 
  
  
  
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
  
  
  
 
  
  
  
 
  
  
  
 
  
  
  
 
  
  
  
 
 
 
 
 
 
 
 
 
  
  
  
 
  
  
  
 
 
 
 
 
 
 
 
 
  
  
  
 
  
  
  
 
 
 
 
 
 
 
 
 
  
  
  
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
  
  
  
 
 
 
2023 

2022 

2021 

  $ 

 10,155  

$ 

 7,130  

$ 

 5,965  

 (456) 
 443  
 (29) 
 (16) 
 (58) 
 10,097  
 (2) 
 10,099  

 645  
 (1,116) 
 63  
 (109) 
 (517) 
 6,613  
 (16) 
 6,629  

$ 

 2,884  
 118  
 16  
 (18) 
 3,000  
 8,965  
 2  
 8,963  

$ 

DEERE & COMPANY 
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME 
For the Years Ended October 29, 2023, October 30, 2022, and October 31, 2021 

Net Income 

Other Comprehensive Income (Loss), Net of Income Taxes 

Retirement benefits adjustment 
Cumulative translation adjustment 
Unrealized gain (loss) on derivatives  
Unrealized loss on debt securities  

Other Comprehensive Income (Loss), Net of Income Taxes 
Comprehensive Income of Consolidated Group 

Less: Comprehensive income (loss) attributable to noncontrolling interests  

Comprehensive Income Attributable to Deere & Company 

  $ 

The notes to consolidated financial statements are an integral part of this statement. 

45 

 
 
 
 
 
 
 
 
 
 
 
 
 
     
             
             
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
  
 
  
 
  
 
  
 
 
 
2023 

2022 

  $ 

  $ 

  $ 

 7,458  
 946  
 7,739  
 43,673  
 7,335  
 2,623  
 6,917  
 8,160  
 6,879  
 3,900  
 1,133  
 3,007  
 1,814  
 2,503  
 104,087  

 17,939  
 6,995  
 16,130  
 520  
 38,477  
 2,140  
 82,201  

$ 

$ 

$ 

 4,774  
 734  
 6,410  
 36,634  
 5,936  
 2,492  
 6,623  
 8,495  
 6,056  
 3,687  
 1,218  
 3,730  
 824  
 2,417  
 90,030  

 12,592  
 5,711  
 14,822  
 495  
 33,596  
 2,457  
 69,673  

 97  

 92  

 5,303  
 (31,335) 
 50,931  
 (3,114) 
 21,785  
 4  
 21,789  
 104,087  

  $ 

 5,165  
 (24,094) 
 42,247  
 (3,056) 
 20,262  
 3  
 20,265  
 90,030  

$ 

DEERE & COMPANY 
CONSOLIDATED BALANCE SHEETS 
As of October 29, 2023 and October 30, 2022 

ASSETS 
Cash and cash equivalents  
Marketable securities  
Trade accounts and notes receivable – net  
Financing receivables – net  
Financing receivables securitized – net  
Other receivables  
Equipment on operating leases – net  
Inventories  
Property and equipment – net  
Goodwill  
Other intangible assets – net  
Retirement benefits  
Deferred income taxes  
Other assets  
Total Assets  

LIABILITIES AND STOCKHOLDERS’ EQUITY 

LIABILITIES 
Short-term borrowings  
Short-term securitization borrowings  
Accounts payable and accrued expenses  
Deferred income taxes  
Long-term borrowings  
Retirement benefits and other liabilities  

Total liabilities  

Commitments and contingencies (Note 20) 
Redeemable noncontrolling interest (Note 3) 

STOCKHOLDERS’ EQUITY 
Common stock, $1 par value (authorized – 1,200,000,000 shares;  

issued – 536,431,204 shares in 2023 and 2022), at paid-in amount  

Common stock in treasury, 254,846,927 shares in 2023 and 237,659,289 shares in 2022, at cost  
Retained earnings  
Accumulated other comprehensive income (loss)  
Total Deere & Company stockholders’ equity  
Noncontrolling interests  

Total stockholders’ equity  

Total Liabilities and Stockholders’ Equity  

The notes to consolidated financial statements are an integral part of this statement. 

46 

 
 
 
 
 
 
 
 
 
 
     
                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2023 

2022 

2021 

  $ 

 10,155  

$ 

 7,130  

$ 

 5,965  

 (16) 
 2,004  
 191  
 130  

 (790) 

 (4,253) 
 279 
 830 
 (23) 
 (170) 
 252  
 8,589  

 23,051  
 1,981  
 (28,772) 
 (82) 
 (1,498) 
 (2,970) 
 (12) 
 (447) 
 (8,749) 

 4,008  
 15,429  
 (7,913) 
 (7,216) 
 (1,427) 
 (73) 
 2,808  

 31  

 2,679  
 4,941  
 7,620  

 7,458  
 162  
 7,620  

 192  
 1,895  
 88  
 85  
 (326) 
 (66) 

 (2,483) 
 (2,091) 
 1,133  
 141  
 (1,015) 
 16  
 4,699  

 20,907  
 2,093  
 (26,300) 
 (498) 
 (1,134) 
 (2,654) 
 (642) 
 (257) 
 (8,485) 

 3,852  
 10,358  
 (8,445) 
 (3,597) 
 (1,313) 
 (29) 
 826  

 (224) 

 (3,184) 
 8,125  
 4,941  

 4,774  
 167  
 4,941  

$ 

$ 

$ 

 (6) 
 2,050  
 50  
 82  

 (441) 

 969  
 (2,497) 
 1,884  
 11  
 29  
 (370) 
 7,726  

 18,959  
 2,094  
 (23,653) 
 (244) 
 (848) 
 (1,732) 
 (281) 
 (45) 
 (5,750) 

 818  
 8,722  
 (7,090) 
 (2,538) 
 (1,040) 
 50  
 (1,078) 

 55  

 953  
 7,172  
 8,125  

 8,017  
 108  
 8,125  

$ 

$ 

$ 

DEERE & COMPANY 
STATEMENTS OF CONSOLIDATED CASH FLOWS 
For the Years Ended October 29, 2023, October 30, 2022, and October 31, 2021 

Cash Flows from Operating Activities 
Net income  
Adjustments to reconcile net income to net cash provided by operating activities: 

Provision (credit) for credit losses  
Provision for depreciation and amortization  
Impairments and other adjustments 
Share-based compensation expense  
Gain on remeasurement of previously held equity investment 
Credit for deferred income taxes 
Changes in assets and liabilities: 
Receivables related to sales  
Inventories  
Accounts payable and accrued expenses  
Accrued income taxes payable/receivable  
Retirement benefits  

Other  

Net cash provided by operating activities  

Cash Flows from Investing Activities 
Collections of receivables (excluding receivables related to sales)  
Proceeds from sales of equipment on operating leases  
Cost of receivables acquired (excluding receivables related to sales)  
Acquisitions of businesses, net of cash acquired  
Purchases of property and equipment  
Cost of equipment on operating leases acquired  
Collateral on derivatives – net 
Other  

Net cash used for investing activities  

Cash Flows from Financing Activities 
Net proceeds in short-term borrowings (original maturities three months or less) 
Proceeds from borrowings issued (original maturities greater than three months) 
Payments of borrowings (original maturities greater than three months) 
Repurchases of common stock  
Dividends paid  
Other  

Net cash provided by (used for) financing activities  

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash  
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year  
Cash, Cash Equivalents, and Restricted Cash at End of Year  

Components of Cash, Cash Equivalents, and Restricted Cash 
Cash and cash equivalents 
Restricted cash (Other assets) 
Total Cash, Cash Equivalents, and Restricted Cash 

The notes to consolidated financial statements are an integral part of this statement. 

  $ 

   $ 

  $ 

47 

 
 
 
 
 
 
 
 
 
 
 
 
 
     
             
             
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEERE & COMPANY 
STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY 
For the Years Ended October 31, 2021, October 30, 2022, and October 29, 2023 

Total Stockholders’ Equity 

Deere & Company Stockholders 

      Accumulated       
Other 

Common 
Stock 

Treasury 
Stock 

Retained 
Earnings 

  Comprehensive    Noncontrolling   
  Income (Loss) 

Interests 

  Redeemable   
  Noncontrolling  
Interest 

Total 
  Stockholders’   
Equity 

Balance November 1, 2020 

  $ 

 12,944   $ 

 4,895   $ 

 (18,065)   $ 

 31,646   $ 

 (5,539)  $ 

ASU No. 2016-13 adoption 
Net income 
Other comprehensive income 
Repurchases of common stock   
Treasury shares reissued  
Dividends declared  
Share based awards and other   
Balance October 31, 2021 

Acquisitions (see Note 3) 
Net income (loss) 
Other comprehensive loss 
Repurchases of common stock   
Treasury shares reissued  
Dividends declared  
Share based awards and other   
Balance October 30, 2022 

Net income (loss) 
Other comprehensive income 

(loss) 

Repurchases of common stock   
Treasury shares reissued  
Dividends declared  
Share based awards and other   
Balance October 29, 2023 

  $ 

 (35)  
 5,965  
 3,000  
 (2,538)  
 70  
 (1,127)  
 155  
 18,434  

 7,133  
 (517)  
 (3,597)  
 36  
 (1,329)  
 105  
 20,265  

 10,168  

 (58)  
 (7,274)  
 33  
 (1,477)  
 132  
 21,789   $ 

 (35) 
 5,963  

 (1,125) 

 (2,538)  
 70  

 3,000  

 159  
 5,054  

 (20,533)  

 36,449  

 (2,539) 

 7,131  

 (1,327) 
 (6) 
 42,247  

 10,166  

 (517) 

 (3,056) 

 (58) 

 (3,597)  
 36  

 111  
 5,165  

 (24,094)  

 (7,274)  
 33  

 138  
 5,303   $ 

 (31,335)   $ 

 (1,472) 
 (10) 
 50,931   $ 

 (3,114)  $ 

 (5) 
 4  
 4  

  $ 

 7  

 2  

 (2) 
 (4) 
 3  

 2  

 (2) 

 3  

 2  

  $ 

 104  
 (3) 
 (15) 

 6  
 92  

 (13) 

 9  

 9  
 97  

The notes to consolidated financial statements are an integral part of this statement. 

48 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
      
 
      
 
      
 
 
          
 
 
 
 
 
 
 
  
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

Note Listing 
1. 
2. 

Organization and Consolidation 
SSummary of Significant Accounting Policies and 

Page 
49 

New Accounting Standards 
Acquisitions and Dispositions 
SSpecial Items 
Revenue Recognition 
SSupplemental Cash Flow Information 
Pension and Other Postretirement Benefits 
IIncome Taxes 
Other Income and Other Operating Expenses 
MMarketable Securities 
Receivables 
SSecuritization of Financing Receivables 
Inventories 
PProperty and Depreciation 
Goodwill and Other Intangible Assets (cid:3013) Net 
OOther Assets 
Short-Term Borrowings 
AAccounts Payable and Accrued Expenses 
Long-Term Borrowings 
CCommitments and Contingencies 
Capital Stock 
SShare-Based Compensation 
Other Comprehensive Income Items 
LLeases 
Fair Value Measurements 
DDerivative Instruments 
Segment Data 
SSubsequent Event 

3. 
4. 
5. 
6. 
7. 
8. 
9. 
10. 
11. 
12. 
13. 
14. 
15. 
16. 
17. 
18. 
19. 
20. 
21. 
22. 
23. 
24. 
25. 
26. 
27. 
28. 

49 
52 
54 
55 
57 
57 
61 
62 
63 
63 
67 
68 
68 
68 
68 
68 
69 
69 
69 
70 
70 
71 
73 
74 
76 
77 
78 

1. ORGANIZATION AND CONSOLIDATION 

References to “Deere & Company”, “John Deere”, “Deere”, “we”, 
“us”, or “our” include our consolidated subsidiaries. We manage 
our business through the following operating segments: 
production and precision agriculture (PPA), small agriculture and 
turf (SAT), construction and forestry (CF), and financial services 
(FS). References to “equipment operations” include PPA, SAT, and 
CF, while references to “agriculture and turf” include both PPA and 
SAT. 

Principles of Consolidation 
The consolidated financial statements represent the consolidation 
of all companies in which Deere & Company has a controlling 
interest. Certain variable interest entities (VIEs) are consolidated 
since we are the primary beneficiary. The primary beneficiary has 
both the power to direct the activities that most significantly 
impact the VIEs’ economic performance and the obligation to 
absorb losses or the right to receive benefits that could potentially 
be significant to the VIEs. We consolidate certain VIEs related to 
retail note securitizations (see Note 12). 

We record our investment in each unconsolidated affiliated 
company (20 to 50 percent ownership) at cost, plus or minus our 
share of the profit or loss after acquisition, and further reduced for 
any dividends (see Note 16). Other investments (less than 
20 percent ownership) are recorded at cost. 

Fiscal Year 
We use a 52/53 week fiscal year ending on the last Sunday in the 
reporting period, which generally occurs near the end of October. 
An additional week is included in the fourth fiscal quarter every 
five or six years to realign our fiscal quarters with the calendar. The 
fiscal year ends for 2023, 2022, and 2021 were October 29, 2023, 
October 30, 2022, and October 31, 2021, respectively. Fiscal years 
2023, 2022, and 2021 contained 52 weeks. Unless otherwise stated, 
references to particular years, quarters, or months refer to our 
fiscal years and the associated periods in those fiscal years. 

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

Argentina 
We have equipment operations and financial services operations 
in Argentina. The U.S. dollar has historically been the functional 
currency for our Argentina operations, as our business is indexed 
to the U.S. dollar due to the highly inflationary conditions. The 
Argentine government has certain capital and currency controls 
that restrict our ability to access U.S. dollars in Argentina and remit 
earnings from our Argentine operations. As of October 29, 2023 
and October 30, 2022, our net investment in Argentina was $766 
and $742, respectively. Net sales and revenues from our Argentine 
operations represented approximately 1 percent of consolidated 
net sales and revenues for 2023 and 2022. We have employed 
mechanisms to convert Argentine pesos into U.S. dollars to the 
extent possible. These mechanisms are short-term in nature, 
leaving us exposed to long-term currency fluctuations. As of 
October 29, 2023 and October 30, 2022, the gross peso exposure 
was $30 and $133, respectively, while the net peso exposure (after 
considering the impact of short-term hedges) was $5 and $53, 
respectively. Argentine peso-denominated monetary assets and 
liabilities are remeasured at each balance sheet date using the 
official currency exchange rate. 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW 

ACCOUNTING STANDARDS 

The following are significant accounting policies in addition to 
those included in other notes to the consolidated financial 
statements. 

Use of Estimates in Financial Statements 
Certain accounting policies require management to make 
estimates and assumptions in determining the amounts reflected 
in the financial statements and related disclosures. Actual results 
could differ from those estimates.  

Revenue Recognition  

General 
Sales of equipment and service parts are recognized when we 
transfer control of the good to the independent customer, which 
generally occurs upon shipment. In most situations, the 
independent customer is a dealer, which subsequently sells the 
equipment and service parts purchased from us to a retail 
customer, who can finance the equipment with the financial 
services segment or another source of financing. In some 

49 

 
 
  
  
situations, we sell directly to a retail customer. The term 
“customer” includes both dealers and retail customers to whom we 
make direct sales.  

Interest-Free Periods and Past-Due Interest 
We charge dealers interest on outstanding balances from the 
earlier of when goods are sold to a retail customer by the dealer or 
the expiration of the interest-free period granted at the time of the 
sale to the dealer. Interest-free periods are determined based on 
the type of equipment sold and the time of year of the sale. These 
periods range from one to twelve months for most equipment. 
Interest-free periods may not be extended. Interest charged may 
not be forgiven, and past due interest rates are charged at higher 
rates. If the interest-free or below market interest rate period 
exceeds one year, we adjust the expected sales revenue for the 
effects of the time value of money using a current market interest 
rate. The revenue related to the financing component is 
recognized in “Finance and interest income” using the interest 
method. We do not adjust the sales price to account for a 
financing component if the expected interest-free or below market 
period is one year or less. 

Right of Return 
Generally, no right of return exists on sales of equipment. Dealers 
cannot cancel purchases after we recognize a sale and are 
responsible for payment even if the equipment is not sold to a 
retail customer. Service parts and certain attachment returns are 
estimable and accrued at the time a sale is recognized. The 
estimated returns are based on historical return rates, current 
dealer inventory levels, and current economic conditions. The 
estimated returns are recorded in “Other assets” for the inventory 
value of estimated returns, adjusted for restocking fees. The 
estimated dealer refund liability, adjusted for restocking fees, is 
recorded in “Accounts payable and accrued expenses.” 

Remanufacturing 
We remanufacture used engines and components (cores) that are 
sold to dealers and retail customers for maintenance and repair 
parts. Revenue for remanufactured components is recognized 
using the same criteria as other parts sales. When a 
remanufactured part is sold, we collect a deposit that is repaid if 
the customer returns a core that meets certain specifications 
within a defined time period. The deposit received from the 
customer is recognized as a liability in “Accounts payable and 
accrued expenses” and the used component that is expected to be 
returned is recognized in “Other assets.” When a customer returns 
a core, the deposit is repaid, the liability reversed, and the returned 
core is recorded in inventory to be remanufactured and sold to 
another customer. If a core is not returned within the required 
time, the deposit is recognized as revenue in “Net sales,” and the 
cost of the core is recorded as an expense in “Cost of sales.” 

Bundled Technology 
Certain equipment is sold with precision guidance, telematics, and 
other information gathering and analyzing capabilities. These 
technology solutions require hardware, software, and may include 
an obligation to provide services for a period of time. These 
solutions are mostly bundled with the sale of the equipment but 

can also be purchased or renewed separately. The revenue related 
to the hardware and embedded software is recognized at the time 
of the equipment sale and recorded in “Net sales.” The revenue for 
the future services and usage-based software is deferred and 
recognized over the service period. The deferred revenue is 
recorded as a contract liability in “Accounts payable and accrued 
expenses.” 

Financing Revenue and Origination Costs 
Financing revenue and deferred costs on the origination of 
financing receivables are recorded over the lives of the related 
receivables using the interest method. Deferred costs are 
recognized as a reduction to “Finance and interest income.” 
Income and deferred costs on the origination of operating leases 
are recognized on a straight-line basis over the scheduled lease 
terms in “Finance and interest income.” 

Sales Incentives 
We offer sales incentive programs to promote the sale of our 
products from the dealer to the retail customer. At the time of the 
sale to a dealer, we record an estimated cost for the sales incentive 
programs as a reduction to the sales price. The estimated cost is 
based on historical data, announced and expected incentive 
programs, field inventory levels, and forecasted sales volumes. 
The final cost of these programs is determined at the end of the 
measurement period for volume-based incentives or when the 
dealer sells the equipment to a retail customer. Actual cost 
differences from the original cost estimate are recognized in “Net 
sales.” 

Product Warranties 
For equipment and service parts sales, we provide a standard 
warranty. At the time a sale is recognized, the estimated future 
warranty costs are recorded. The warranty liability is estimated 
based on historical warranty claims rate experience and the 
estimated amount of equipment still under warranty. The 
historical claims rate is primarily determined by a review of five-
year claims costs while also taking into consideration current 
quality developments. The amount of equipment still under 
warranty is estimated based on dealer inventories and retail sales.  

We also offer extended warranty arrangements for purchase at 
the customer’s option. The premiums for extended warranties are 
recognized in “Other income” primarily in proportion to the costs 
expected to be incurred over the contract period. The unamortized 
extended warranty premiums (deferred revenue) are recorded in 
“Accounts payable and accrued expenses” (see Note 18). 

Sales and Transaction Taxes 
We collect and remit taxes for revenue producing transactions as 
necessary based on various tax laws. These taxes include sales, 
use, value-added, and some excise taxes. We elected to exclude 
these taxes from the determination of the sales price. These taxes 
are not included in revenues. 

Contract Costs 
Incremental costs of obtaining an equipment revenue contract are 
recognized as an expense when incurred since the amortization 
period would be one year or less. 

50 

 
Advertising Costs 
Advertising costs are charged to “Selling, administrative and 
general expenses” as incurred. Advertising costs were $244 in 
2023, $227 in 2022, and $212 in 2021. 

Depreciation and Amortization 
Property and equipment, capitalized software, and other 
intangible assets are stated at cost less accumulated depreciation 
or amortization. These assets are depreciated over their estimated 
useful lives using the straight-line method. Equipment on 
operating leases is depreciated over the terms of the leases using 
the straight-line method. Property and equipment expenditures 
for new and revised products, increased capacity, and the 
replacement or major renewal of significant items are capitalized. 
Expenditures for maintenance, repairs, and minor renewals are 
charged to expense as incurred. 

Cash and Cash Equivalents 
We consider investments with purchased maturities of three 
months or less to be cash equivalents. 

Receivables and Allowances 
All financing and trade receivables are reported on the balance 
sheet at outstanding principal and accrued interest, adjusted for: 
•  write-offs, 
•  allowance for credit losses, and 
•  unamortized deferred fees or costs on originated financing 

receivables.  

The allowance is a reduction to the receivable balances, and the 
provision is recorded in “Selling, administrative and general 
expenses.” The allowance for credit losses is an estimate of the 
credit losses expected over the life of the receivable portfolio. The 
allowance is measured on a collective basis for receivables with 
similar risk characteristics. Receivables that do not share risk 
characteristics are evaluated on an individual basis. Risk 
characteristics include: 
•  finance product category, 
•  market, 
•  geography, 
•  credit risk, and 
•  remaining balance. 

We utilize the following loss forecast models to estimate expected 
credit losses: 
•  Transition matrix models are used for large and complex retail 
customer receivable pools. These models are used for more 
than 90 percent of retail customer receivables. Historical 
portfolio performance and current delinquency levels are 
used to forecast future defaults. Estimated recovery rates 
are applied to the estimated default balance to calculate the 
expected credit losses. 

•  Weighted average remaining maturity (WARM) models are 
used for smaller and less complex retail customer receivable 
pools. 

•  Historical loss rate models are used on wholesale receivables, 
with consideration of current economic conditions and dealer 
financial risk. 

The model output is adjusted for forecasted economic 
conditions, which may include the following economic 
indicators: 
•  commodity prices, 
•  industry equipment sales, 
•  unemployment rates, and 
•  housing starts. 

Management reviews each model’s output quarterly, and 
qualitative adjustments are incorporated as necessary (see 
Note 11). 
Long-Lived Assets, Goodwill, and Other Intangible Asset Impairment 
We evaluate the carrying value of long-lived assets (including 
equipment on operating leases, property and equipment, goodwill, 
and other intangible assets) when events or circumstances warrant 
such a review. Goodwill and unamortized intangible assets are 
tested for impairment annually at the end of the third quarter of 
each fiscal year, and more often if events or circumstances may 
have caused the fair value to fall below the carrying value. If the 
carrying value of the long-lived asset is considered impaired, the 
long-lived asset is written down to its fair value (see Notes 4 
and 25). 

Goodwill is allocated and reviewed for impairment by reporting 
unit. Goodwill is allocated to the reporting unit in which the 
business that created the goodwill resides. To test for goodwill 
impairment, the carrying value of each reporting unit is compared 
with its fair value. If the carrying value of the goodwill is 
considered impaired, the impairment is measured as the reporting 
unit’s carrying value minus the fair value. 
Derivative Financial Instruments 
It is our policy to use derivative transactions only to manage 
exposures from the normal course of business. We do not execute 
derivative transactions for the purpose of creating speculative 
positions or trading. Our financial services operations have interest 
rate and foreign currency exposure between (a) the receivable or 
lease portfolio and (b) how those portfolios are funded. We also 
have foreign currency exposures at some of our foreign and 
domestic operations related to buying, selling, and financing in 
currencies other than the functional currencies. In addition, we 
have interest rate and foreign currency exposure at certain 
equipment operations units for sales incentive programs.  

All derivatives are recorded at fair value on the consolidated 
balance sheets. Cash collateral received or paid is not offset 
against the derivative fair values on the balance sheets. The cash 
flows from the derivative contracts are recorded in operating 
activities in the statements of consolidated cash flows. Each 
derivative is designated as a cash flow hedge, fair value hedge, or 
remains undesignated. 

Changes in the fair value of derivatives are recorded as follows: 
•  Cash flow hedges: Recorded in other comprehensive income 
(OCI) and reclassified to the income statement when the 
effects of the item being hedged are recognized in the income 
statement. These amounts offset the effects of interest rate 
changes on the related borrowings in interest expense.  

51 

 
•  Fair value hedges: Recorded in interest expense, and the gains 
or losses are offset by the fair value gains or losses on the 
hedged items (fixed-rate borrowings), which are also recorded 
in interest expense.  

•  Derivatives not designated as hedging instruments: Changes in 
the fair value of undesignated hedges are recognized as they 
occur in the income statement. 

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 for 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 (see Note 26). 

Foreign Currency Translation 
The functional currencies for most of our foreign operations are 
their respective local currencies. The assets and liabilities of these 
operations are translated into U.S. dollars using the exchange rates 
at the end of the period. The revenues and expenses are translated 
at weighted-average rates for the period. The gains or losses from 
these translations are recorded in OCI. 

Foreign currency gains or losses and foreign exchange components 
of derivative contracts are included in net income, with trade flow 
activity recorded in “Cost of sales,” sales incentive activity 
recorded in “Net sales,” and all other activity recorded in “Other 
operating expenses.” The pretax net loss for foreign exchange in 
2023, 2022, and 2021 was $159, $175, and $134, respectively. 

New Accounting Standards 
We closely monitor all Accounting Standard Updates (ASUs) issued 
by the Financial Accounting Standards Board (FASB) and other 
authoritative guidance. We adopted the following standards in 
2023, none of which had a material effect on our consolidated 
financial statements: 

New Accounting Standards Adopted 
No. 2021-10 — Government Assistance (Topic 832): Disclosures by 

Business Entities about Government Assistance 

No. 2021-05 — Leases (Topic 842): Lessors – Certain Leases with 

Variable Lease Payments 

No. 2021-04 — Issuer's Accounting for Certain Modifications or 

Exchanges of Freestanding Equity Classified Written Call Options 

We will adopt the following standards in future periods, none of 
which are expected to have a material effect on our consolidated 
financial statements. 

New Accounting Standards to be Adopted 
No. 2022-04 — Liabilities — Supplier Finance Programs (Subtopic 405-

50): Disclosure of Supplier Finance Program Obligations 

No. 2022-02 — Financial Instruments – Credit Losses (Topic 326): 

Troubled Debt Restructurings and Vintage Disclosures 

No. 2022-01 — Derivatives and Hedging (Topic 815): Fair Value 

Hedging – Portfolio Layer Method 

No. 2021-08 — Business Combinations (Topic 805): Accounting for 

Contract Assets and Contract Liabilities from Contracts with Customers 

3. ACQUISITIONS AND DISPOSITIONS 

During the presented periods, we completed acquisitions to 
support our Leap Ambitions, which focus on advancing our 
capabilities in technology. 
Acquisitions 
2023 Acquisitions 
In 2023, we acquired SparkAI Inc. (Spark AI) and Smart Apply, Inc. 
(Smart Apply) to accelerate the integration of smart technology 
innovation in our products. The combined cost of these 
acquisitions was $82, net of cash acquired of $2. Spark AI was 
assigned to the PPA segment, while Smart Apply was assigned to 
the SAT segment. Most of the purchase price for these acquisitions 
was allocated to goodwill. 

2022 Acquisitions 
Kreisel 
In February 2022, we 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 us to purchase the 
holders’ ownership interests 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 our consolidated balance 
sheets.  
The total cash purchase price was $276, consisting of $253 for the 
acquired equity interests, $21 to reduce the option price, and 
customary working capital adjustments, net of cash acquired. The 
fair values assigned to the assets and liabilities of the acquired 
entity, which are based on information as of the acquisition date 
and available at October 30, 2022, follows: 

Trade accounts and notes receivable 
Other receivables 
Inventories 
Property and equipment 
Goodwill 
Other intangible assets 
Other assets 
Total assets 

Accounts payable and accrued expenses 
Deferred income taxes 

Redeemable noncontrolling interest 

  FFebruary 2022   
2  
 $ 
11  
11  
11  
218  
178  
6  
437   

 $ 

 $ 

 $ 

26  
39  

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 is allocated amongst the PPA, SAT, 
and CF segments. 

52 

 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
 
  
 
 
  
 
  
 
 
 
Excavator Factories 
In March 2022, we acquired full ownership of three former Deere-
Hitachi joint venture factories and began new license and supply 
agreements with Hitachi Construction Machinery Co., Ltd. 
(Hitachi). The two companies also ended their joint venture 
manufacturing and marketing agreements. The former joint 
venture factories continue to manufacture Deere-branded 
construction excavators and forestry equipment. Through a new 
supply agreement with Hitachi, Deere continues to offer a full 
portfolio of excavators. Deere’s marketing arrangement for 
Hitachi-branded construction excavators and mining equipment in 
the Americas 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, we now have complete 
control over the 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. We 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 is as follows: 

  MMarch 2022 
 $ 

Cash consideration for factories 
Cash consideration for license agreement 
Deferred consideration 
Total purchase price consideration 
Less: Cash obtained 
Less: Settlement of intercompany balances 
Net purchase price consideration 
Fair value of previously held equity investment 

Total invested capital 

 $ 

205  
70  
271  
546  
 (187) 
 (113) 
246  
444  
690   

The total purchase price consideration includes deferred 
consideration that will be paid as we purchase Deere-branded 
excavators, components, and service parts from Hitachi under the 
new supply agreement with a duration that ranges from 5 to 
30 years. The deferred consideration represents the price increases 
under the new supply arrangement. Excluding inflation 
adjustments, the price increases for products to be acquired by us 
from Hitachi are as much as 27 percent higher than the prior supply 
arrangement. We financed the acquisition and associated 
transaction expenses from cash on hand. The fair value of the 
previously held equity investment created a non-cash gain of $326 
(pretax and after-tax), which was recorded in “Other income” and 
included in the CF segment’s operating profit. 

Prior to the acquisition, we purchased 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 sales 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 only 

includes the sale of Deere-branded excavators to John Deere 
dealers, while Cost of sales reflects market pricing to purchase and 
manufacture excavators, as well as the related components and 
service parts. 

The fair values assigned to the assets and liabilities of the acquired 
factories, which are based on information as of the acquisition 
date and available at October 30, 2022, follow: 

Other receivables 
Inventories 
Property and equipment 
Goodwill 
Other intangible assets 
Deferred income taxes 
Other assets 
Total assets 

Accounts payable and accrued expenses 
Long-term borrowings 

Total liabilities 

  MMarch 2022 
 $ 

29  
286  
180  
529  
70  
56  
3  
1,153   

300  
163  
463   

The identifiable intangible assets were related to technology with a 
10-year amortization period. The goodwill is not deductible for 
income tax purposes. The excavator factories are reported in the 
CF segment. 

Other Acquisitions 
In 2022, we acquired AgriSync Inc. (AgriSync), a technology service 
provider; an 80 percent stake in both SureFire Ag Systems, Inc. and 
SureFire Electronics, LLC (renamed after acquisition and 
collectively referred to as SurePoint), which design and 
manufacture liquid fertilizer application and spray tendering 
systems; an equity method investment in GUSS Automation LLC 
(GUSS Automation), a pioneer in semi-autonomous orchard and 
vineyard sprayers; LGT, LLC (Light), which specializes in depth 
sensing and camera-based perception for autonomous vehicles; 
and an equity method investment in InnerPlant, Inc. (InnerPlant), 
an early-stage biotech company. The combined cost of these 
acquisitions was $134, net of cash acquired of $3. The asset and 
liability fair values at the respective acquisition dates follow: 

 $ 

 $ 

 $ 

 $ 

 $ 

 $ 

 $ 

  OOctober 2022 
 $ 

8  
8  
4  
53  
21  
60  
154   

6  
5  
11   

9  

Trade accounts and notes receivable 
Inventories 
Property and equipment 
Goodwill 
Other intangible assets 
Other assets 
Total assets 

Accounts payable and accrued expenses 
Deferred income taxes 

Total liabilities 

Redeemable noncontrolling interest 

53 

 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
 
 
 
 
  
  
  
  
  
  
 
  
 
 
  
 
 
 
 
 
 
 
 
 
  
  
  
  
  
 
  
 
 
  
 
  
 
 
 
The identifiable intangible assets were related to trade name, 
technology, and customer relationships with a weighted average 
amortization period of 7 years. AgriSync was allocated amongst the 
PPA, SAT, and CF segments, while SurePoint, Light, and InnerPlant 
were allocated to the PPA segment. GUSS Automation was 
assigned to the SAT segment. 

2021 Acquisitions 
Bear Flag  
In August 2021, we acquired Bear Flag Robotics, Inc. (Bear Flag) to 
further accelerate Deere’s development and delivery of advanced 
technology. Bear Flag’s technology is complementary to other 
Deere technology efforts and enables autonomous tractor 
operations. The total cash purchase price before final adjustments, 
net of cash acquired of $4, was $225, with an additional $25 to be 
recognized as compensation expense over the four-year post-
acquisition service period. In addition to the cash purchase price, 
$19 of liabilities were assumed. The asset and liability fair values at 
the acquisition date follow: 

Property and equipment 
Goodwill 
Other intangible assets 

Total assets 

Accounts payable and accrued expenses 
Deferred income taxes 

Total liabilities 

  AAugust 2021 
 $ 

1  
189  
54  
244   

1  
18  
19   

 $ 

 $ 

 $ 

The identified intangible was related to technology with a seven-
year amortization period. The goodwill is not deductible for 
income tax purposes. 

For the 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 results of these operations 
have been included in our consolidated financial statements, and 
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. 

Dispositions 
In October 2023, we sold our roadbuilding business in Russia. At 
the time of the sale, total assets were $32, consisting primarily of 
restricted cash, total liabilities were $1, and the cumulative 
translation loss was $11. Total proceeds from the sale include $16 of 
cash and $8 of deferred consideration. A pretax and after-tax loss 
of $18 was recorded in “Other operating expenses” in the CF 
segment. 

In March 2023, we sold our financial services business in Russia 
(registered in Russia as a leasing company) to Insight Investment 
Group. The total proceeds, net of restricted cash sold, were $36. 
The operations were included in the financial services operating 
segment through the date of sale. At the disposal date, the total 
assets were $31, consisting primarily of financing receivables, the 
total liabilities were $5, and the cumulative translation loss was 
$10. In the first quarter of 2023, we reversed the allowance for 

54 

credit losses and recorded a valuation allowance on the assets held 
for sale in “Selling, administrative and general expenses.” We did 
not incur additional gains or losses upon disposition. 

4. SPECIAL ITEMS 

We were impacted by the following infrequent items. These items 
should not be considered recurring in nature. 

2023 Special Items 

Sale of Russian Roadbuilding Business 
In the fourth quarter of 2023, we sold our Russian roadbuilding 
business, recognizing a loss of $18 (pretax and after-tax). The loss 
was recorded in “Other operating expenses” in the construction 
and forestry operations. 

Brazil Tax Ruling 
In the third quarter of 2023, the Brazil Superior Court of Justice 
published a favorable tax ruling regarding taxability of local 
incentives, which allowed us to record a $243 reduction in the 
provision for income taxes and $47 of interest income. 

Financial Services Financing Incentives Correction 
In the second quarter of 2023, we 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 pretax 
($135 after-tax), was recorded in the second quarter of 2023. Prior 
period results for Deere & Company were not restated, as the 
adjustment was considered immaterial to our financial statements. 

2022 Special Items 

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

Impact of Events in Russia / Ukraine 
We suspended shipments of machines and service parts to Russia 
due to the events in Russia / Ukraine. The suspension of shipments 
reduced the forecasted revenue for the region, which made it 
probable future cash flows would not cover the carrying value of 
certain assets. As a result, an impairment was recorded for most 
long-lived assets in Russia, and our U.S. senior management 
decided to initiate a voluntary employee-separation program. We 
also recorded a reserve on inventory, and increased our allowance 
for credit losses, reflecting economic uncertainty in Russia.  

The financial services operations received an intercompany benefit 
from the equipment operations, which guarantees the financial 

 
 
 
 
 
 
 
 
 
  
  
 
  
 
 
  
 
 
services’ investments in certain international markets, including 
Russia.  

The Russian government imposed certain restrictions on 
companies’ abilities to repatriate or remit cash from their Russian-
based operations to locations outside of Russia. Cash in excess of 
what was required to fund operations in Russia was reclassified as 
restricted. A summary of the reserves, impairments, and voluntary-
separation costs recorded in 2022 follows. See Note 25 for fair 
value measurement information.  

Inventory reserve – 
Cost of sales 

Fixed asset impairment – 

Cost of sales 

Intangible asset impairment – 

Cost of sales 

Allowance for credit losses – 
Financing receivables – 
SA&G expenses 

Voluntary-separation program: 

– Cost of sales 
– SA&G expenses 

Intercompany agreement 
Total Russia/Ukraine events 

  PPA 

  SAT 

  CF 

FS 

  Total   

$ 

 14  $ 

 2  $ 

 3   

$ 

 19  

30     

11   

28   

41  

28  

 $ 

 153   

 153  

 3     
 4     
 82   

 6   
 62   

1   
 (153)  

 9   

 3  
 11  

pretax expense 

 $ 

 133  $ 

 11  $ 

 110  $ 

 1   

 255  

Net tax impact 
Total Russia/Ukraine events 

after-tax expense 

 (40) 

 $ 

 215  

Gain on Previously Held Equity Investment 
In March 2022, we 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 (pretax and after-
tax; see Note 3). 

Summary of 2023 and 2022 Special Items 
The following table summarizes the operating profit impact of the 
special items recorded in 2023 and 2022: 

  PPA 

  SAT 

  CF 

  FS 

  Total   

2023 Expense 
Russian roadbuilding sale - Other 

operating expense 

Financing incentive – SA&G 

expense 
Total expense 

2022 Expense (benefit) 
Gain on remeasurement of equity 
investment – Other income 
(Note 3) 

Total Russia/Ukraine events 

 $ 

 18   

 $ 

 18  

 $ 

 18   

 173   
 173   

 173  
 191  

 (326)   

 (326)  

pretax expense 

 $ 

 133  $ 

 11   

 110   

 1   

 255  

UAW ratification bonus – Cost of 

sales 

Total expense (benefit) 

 53   
 186   

 9   
 20   

 28   
 (188)   

 90  
 19  

 1   

Year over year change 

 $  (186) $   (20)  $  206  $ 

 172  $ 

 172  

5. REVENUE RECOGNITION 

Our net sales and revenues by primary geographic market, major 
product line, and timing of revenue recognition follow: 

  PPA 

SAT 

CF 

FS 

  Total 

2023 
Primary geographic 

markets: 
United States 
Canada 
Western Europe 
Central Europe and CIS   
Latin America 
Asia, Africa, Oceania, 
and Middle East 

Total 

Major product lines: 

 $ 13,917   $ 7,796   $ 9,109   $ 3,283   $ 34,105   
641     4,287   
7,321   
132    
36    
2,137   
453     8,197   

1,738    
   2,640    
1,218    
   5,608    

687    
2,824    
530    
707    

1,221    
1,725    
353    
1,429    

2,166    

176     5,204   
 $ 27,287   $ 14,223   $15,020   $ 4,721   $ 61,251   

1,679    

1,183    

 $ 10,122      
3,505      

Production agriculture  $26,450    
Small agriculture 
Turf 
Construction 
Compact construction      
Roadbuilding 
Forestry 
Financial products 
Other 

 $26,450   
10,122   
3,505   
   6,842   
2,451   
3,794   
1,429   
58   $ 4,721     5,094   
1,564   
 $ 27,287   $ 14,223   $15,020   $ 4,721   $ 61,251   

 $ 6,842      
2,451      
   3,794      
1,429      

96    
500    

219    
618    

446      

 $26,969   $ 14,092   $ 14,915   $

111   $56,087   
5,164   
 $ 27,287   $ 14,223   $15,020   $ 4,721   $ 61,251   

105     4,610    

318    

131    

Total 

Revenue recognized: 
At a point in time 
Over time 

Total 

55 

 
 
 
 
 
  
  
 
  
    
    
  
 
  
    
    
  
 
  
  
 
  
 
  
  
  
  
 
 
    
    
  
 
  
 
  
 
 
    
    
  
 
  
 
  
    
    
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
  
 
  
 
  
 
  
  
   
 
  
 
  
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
  
  
 
  
  
 
  
 
  
 
  
 
  
 
  
 
 
 
 
 
  
 
 
 
 
 
 
   
 
   
 
   
 
   
 
   
 
 
    
    
    
    
    
 
  
  
 
  
 
  
 
  
 
  
 
  
 
 
    
    
    
    
    
 
    
    
  
    
  
  
  
    
  
    
    
    
  
  
    
    
  
    
    
  
  
  
  
  
 
  
 
  
 
  
 
  
 
  
 
 
    
    
    
    
    
 
  
 
 
  PPA 

SAT 

CF 

FS 

  Total 

2022 
Primary geographic 

markets: 
United States 
Canada 
Western Europe 
Central Europe and CIS    
Latin America 
Asia, Africa, Oceania, 
and Middle East 

Total 

Major product lines: 

 $ 10,975   $ 7,741   $ 7,103   $ 2,419   $ 28,238   
601    
3,902   
102     6,344   
2,289   
49    
7,339   
303    

1,387    
676    
2,188     2,478    
488    
1,207    
578    
   4,991    

1,238    
1,576    
545    
1,467    

1,570    

151     4,465   
 $ 22,318   $ 13,569   $ 13,065   $ 3,625   $ 52,577   

1,608    

1,136    

 $ 10,027      
3,027      

Production agriculture   $ 21,685      
Small agriculture 
Turf 
Construction 
Compact construction      
Roadbuilding 
Forestry 
Financial products 
Other 

 $ 21,685   
10,027   
3,027   
   5,864   
1,667   
3,441   
1,308   
3,769   
1,789   
 $ 22,318   $ 13,569   $ 13,065   $ 3,625   $ 52,577   

 $ 5,864      
1,667      
3,441      
1,308      

32   $ 3,625    
753      

52    
463    

60    
573    

Total 

Revenue recognized: 
At a point in time 
Over time 

Total 

2021 
Primary geographic 

markets: 
United States 
Canada 
Western Europe 
Central Europe and CIS    
Latin America 
Asia, Africa, Oceania, 
and Middle East 

Total 

Major product lines: 

 $ 22,178   $ 13,493   $ 12,980   $

105   $ 48,756   
3,821   
 $ 22,318   $ 13,569   $ 13,065   $ 3,625   $ 52,577   

85     3,520    

140    

76    

  PPA 

SAT 

CF 

FS 

  Total 

 $  8,223   $ 6,505   $ 5,697   $ 2,389   $ 22,814   
617    
3,015   
103     6,429   
39     2,664   
247     4,522   

853    
   2,086    
1,322    
2,916    

498    
2,433    
475    
456    

1,047    
1,807    
828    
903    

1,417    

153     4,580   
 $  16,817   $ 12,046   $ 11,613   $ 3,548   $44,024   

1,679    

1,331    

Production agriculture 
Small agriculture 
Turf 
Construction 
Compact construction      
Roadbuilding 
Forestry 
Financial products 
Other 

 $ 16,248      

 $ 8,619      
   2,853      

 $ 16,248   
   8,619   
2,853   
   4,684   
1,489   
3,749   
1,280   
3,669   
1,433   
 $  16,817   $ 12,046   $ 11,613   $ 3,548   $44,024   

 $ 4,684      
1,489      
   3,749      
1,280      

20   $ 3,548    
391      

46    
528    

55    
514    

Total 

Revenue recognized: 
At a point in time 
Over time 

Total 

 $ 16,659   $ 11,969   $ 11,522   $

105   $ 40,255   
3,769   
 $  16,817   $ 12,046   $ 11,613   $ 3,548   $44,024   

91     3,443    

158    

77    

Following is a description of the elements of net sales and 
revenues for our major product lines: 

Production Agriculture – Includes net sales of large and certain 
mid-size tractors and associated attachments, combines, cotton 
pickers, cotton strippers, sugarcane harvesters, sugarcane loaders 
and pull behind scrapers, tillage, seeding, and application 
equipment, including sprayers and nutrient management and soil 
preparation machinery, and related attachments and service parts. 

Small Agriculture – Includes net sales of mid-size, utility, and 
compact utility tractors, self-propelled forage harvesters, hay and 
forage equipment, balers, mowers, and related attachments and 
service parts. 

Turf – Includes net sales of turf and utility equipment, including 
riding lawn equipment, golf course equipment, utility vehicles, and 
commercial mowing equipment, along with a broad line of 
associated implements, other outdoor power products, and 
related attachments and service parts. 

Construction – Includes net sales of a broad range of machines 
used in construction, earthmoving, and material handling, 
including backhoe loaders, crawler dozers and loaders, four-
wheel-drive loaders, excavators, motor graders, articulated dump 
trucks, and related attachments and service parts. 

Compact Construction – Includes net sales of smaller construction 
equipment, including compact excavators, compact track loaders, 
compact wheel loaders, skid steers, landscape loaders, and related 
attachments and service parts. 

Roadbuilding – Includes net sales of equipment used in 
roadbuilding and renovation, including milling machines, recyclers, 
slipform pavers, surface miners, asphalt pavers, compactors, 
tandem and static rollers, mobile crushers and screens, mobile and 
stationary asphalt plants, and related attachments and service 
parts. 

Forestry – Includes net sales of equipment used in timber 
harvesting, including log skidders, feller bunchers, log loaders, log 
forwarders, log harvesters, and related attachments and service 
parts. 

Financial Products – Includes finance and interest income from 
retail notes related to sales of John Deere equipment to retail 
customers, wholesale financing to dealers of John Deere 
equipment, and revolving charge accounts; lease income from 
retail leases of John Deere equipment; and revenue from extended 
warranties. 

Other – Includes sales of components to other equipment 
manufacturers that are included in “Net sales;” revenue earned 
over time from precision guidance, telematics, and other 
information enabled solutions; revenue from service performed at 
company owned dealerships and service centers; gains on 
disposition of property and businesses; trademark licensing 
revenue; and other miscellaneous revenue items that are included 
in “Other income.” 

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7. PENSION AND OTHER POSTRETIREMENT BENEFITS 

We have several funded and unfunded defined benefit pension 
plans and other postretirement benefit (OPEB) plans. These plans 
cover U.S. employees and certain foreign employees. The 
measurement date of our plans is October 31. The funded status as 
of October 31, 2023 of the significant plans follows: 

Pensions 

U.S. salaried qualified 
U.S. hourly qualified 
Other 
Total 

OPEB 

U.S. salaried 
U.S. hourly 
Other 
Total 

Funded 
Status 

  Enrollment  
      Status 

     $ 

  $ 

     $ 

  $ 

 1,511  
 1,042  
 (477) 
 2,076  

 (1,086) 
 178  
 (93) 
 (1,001) 

Closed  
Open  
Varies  

Closed  
Closed  
Varies  

The components of net periodic pension and OPEB cost excluding 
the service component are included in the line item “Other 
operating expenses.” 

The components of net periodic pension (benefit) cost and the 
related assumptions consisted of the following: 

    22023        22022       22021    

Pensions 
Service cost 
Interest cost 
Expected return on plan assets 
Amortization of actuarial (gain) loss  
Amortization of prior service cost 
Settlements/curtailment 
Net (benefit) cost  
Weighted-average assumptions 
Discount rates - service cost 
Discount rates - interest cost 
Rate of compensation increase 
Expected long-term rates of return 
Interest crediting rate - U.S. cash balance plans  

   $  246   $  349   $  332  
 276  
   (799) 
 259  
 12  
 21  
  $  (37)  $  164   $  101  

 330  
   (726)  
 132  
 34  
 45  

 533  
   (878) 
 (13) 
 38  
 37  

5.2%   
5.1%   
3.8%   
6.3%   
4.3%   

3.0%   
2.6%   
3.7%   
5.1%   
2.1%   

2.5%   
2.1%   
3.7%   
6.0%   
1.7%   

In November 2021, employees represented by the UAW approved 
a new collective bargaining agreement. We remeasured the U.S. 
hourly pension plan, which increased the 2022 pension expense by 
nearly $80 with $35 negatively impacting operating profit. 

The 2024 net periodic pension benefit is expected to increase by 
$130 due to an increase in the expected long-term rates of 
return on plan assets (estimated to be 7.0 percent) and the 
Canadian pension settlement charge recognized in 2023, 
described below. 

We invoice in advance of recognizing the sale of certain products 
and the revenue for certain services. These relate to extended 
warranty premiums, advance payments for future equipment 
sales, and subscription and service revenue related to precision 
guidance, telematic services, and other information enabled 
solutions. These advanced customer payments are presented as 
deferred revenue, a contract liability, in “Accounts payable and 
accrued expenses.” The deferred revenue received, but not 
recognized in revenue was $1,697 and $1,423 at October 29, 2023 
and October 30, 2022, respectively. The contract liability is 
reduced as the revenue is recognized. Revenue recognized from 
deferred revenue that was recorded as a contract liability at the 
beginning of the fiscal year was $547 in 2023, $609 in 2022, and 
$485 in 2021. 

The total amount of unsatisfied performance obligations for 
contracts with an original duration greater than one year and the 
estimated revenue to be recognized by fiscal year at October 29, 
2023 follows:  

Year 
2024 
2025 
2026 
2027 
2028 
Later years 
Total 

  Net Sales and Revenues 
457  
  $ 
382  
268  
161  
97  
126  
1,491   

  $ 

As permitted, we elected only to disclose remaining performance 
obligations with an original contract duration greater than one 
year. The contracts with an expected duration of one year or less 
are for sales to dealers and retail customers for equipment, service 
parts, repair services, and certain telematics services. 

6. SUPPLEMENTAL CASH FLOW INFORMATION 

All cash flows from receivables related to sales are included in 
operating activities. This includes all changes in trade accounts and 
notes receivables, as well as some financing receivables. Financing 
receivables that are related to loans on equipment sold by 
independent dealers are included in investing activities. 

Our short-term borrowings mature or may require payment within 
three months or less. During 2023, we issued $4.5 billion and 
retired $3.2 billion of retail note securitization borrowings, which 
are presented in “Net proceeds (payments) in short-term 
borrowings (original maturities three months or less).” 

Restricted cash, recorded in “Other assets,” relates to securitization 
of financing receivables (see Note 12) and cash held in Russia. 

Supplemental cash flow information follows: 

Cash paid for interest 
Cash paid for income taxes 
Inventory transferred to equipment 

22023 
 $  2,227   $ 

22022 

22021 

 1,101   $ 

 3,578    

 1,940    

 1,041  
 2,075  

on operating leases 

 195    

 167    

 662  

Accounts payable related to purchases 

of property and equipment 

 211    

 165    

 121  

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The components of net periodic OPEB cost and the assumptions 
related to the cost consisted of the following: 

OPEB 
Service cost  
Interest cost  
Expected return on plan assets  
Amortization of actuarial (gain) loss  
Amortization of prior service credit  
Net cost  
Weighted-average assumptions 
Discount rates - service cost 
Discount rates - interest cost 
Expected long-term rates of return  

      2023 

      2022 

     2021 

  $

  $

 27   $
 176  
 (117) 
 (59) 
 (3) 
 24   $

 45   $
 99  
 (110)  
 (18)  
 (4)  
 12   $

6.1%   
5.4%   
5.7%   

3.6%   
2.3%   
4.4%   

 48  
 102  
 (77) 
 27  
 (4) 
 96  

3.4%   
2.1%   
5.4%   

The benefit plan obligations, funded status, and the assumptions 
related to the obligations at October 29, 2023 and October 30, 2022 
follow: 

Pensions 

OPEB 

  22023 

  2022 

  2023 

  2022 

Change in benefit obligations 
Beginning of year balance 
Service cost 
Interest cost 
Actuarial gain 
Prior service cost 
Benefits paid 
Health care subsidies 
Settlement 
Foreign exchange and other 
End of year balance 

 (246)    
 (533)    
 504    

 $ (10,529)  $ (14,525) $  (3,341) $ (4,930) 
 (45) 
 (99) 
 1,492  
 (12) 
 282  
 (33) 

 (349)   
 (330)   
 4,122    
 (505)   
 757    

 (27)   
 (176)   
 285    

 260     
 (27)   

 838    

 112    
 (74)    

 4  
 301    
     (9,928)     (10,529)    (3,029)     (3,341) 

 (3)    

Change in plan assets (fair value)  
Beginning of year balance 
Actual loss on plan assets 
Employer contribution 
Benefits paid 
Settlement 
Foreign exchange and other 
End of year balance 
Funded status 

 1,755  
 (495) 
 1,155  
 (282) 

 13,219    

 17,190    
 (387)      (3,070)   
 85    
 (757)   

 2,136     
 (8)    
 158     
 (260)   

 70    
 (838)    
 (112)    
 3  
 52    
     12,004    
 2,136  
 $  2,076  $  2,690  $  (1,001)  $  (1,205) 

 2     
 13,219      2,028     

 (229)   

During 2023, we irrevocably transferred to an insurance company 
$112 of a Canadian pension plan’s defined benefit obligations and 
related plan assets. The transaction resulted in no changes to the 
benefits to be received by the retired participants. We recognized a 
one-time, non-cash, pretax pension settlement charge of $36 
related to the accelerated recognition of actuarial losses included 
within “Accumulated other comprehensive income (loss).” 

The discount rate assumptions used to determine the pension and 
OPEB obligations for all periods presented were based on 
hypothetical AA yield curves represented by a series of annualized 
individual discount rates. These discount rates represent the rates 
at which our benefit obligations could effectively be settled at the 
October 31 measurement dates. 

The mortality assumptions for the 2023 and 2022 U.S. benefit plan 
obligations used the most recent tables and scales issued by the 
Society of Actuaries at that time. The 2023 and 2022 mortality 
assumptions included an adjustment to the scale related to COVID 
for some plans. 

The weighted-average annual rates of increase in the per capita 
cost of covered health care benefits (the health care cost trend 
rates) for medical and prescription drug claims for pre- and post-
65 age groups used to determine the October 29, 2023 and 
October 30, 2022 accumulated postretirement benefit obligations 
were as follows:  

Initial year 
Second year 
Ultimate 

22023 
18.7% (2023 to 2024)  
  8.8% (2024 to 2025)  
4.7% (2032 to 2033)  

22022 
0.0% (2022 to 2023)  
12.6% (2023 to 2024)  
4.7% (2032 to 2033)  

An increase in Medicare Advantage premiums and prescription 
drug trends impacted the weighted-average annual rates of 
increase for the initial year in 2023. A decrease in Medicare 
Advantage premiums impacted the weighted-average annual rates 
of increase for the initial year in 2022.  

Information related to pension plans benefit obligations at 
October 29, 2023 and October 30, 2022 follows: 

22023 

22022 

6.0%   

5.6%   

for all plans 

 $

 9,453   $

 10,068  

Total accumulated benefit obligations 

Plans with accumulated benefit 

obligation exceeding fair value of 
plan assets: 

Accumulated benefit obligations 
Fair value of plan assets 

Plans with projected benefit obligation 
exceeding fair value of plan assets: 
Projected benefit obligations  
Fair value of plan assets 

 1,147    
 704    

 1,116  
 672  

 1,261    
 729    

 1,225  
 692  

Weighted-average assumptions   
Discount rates 
Rate of compensation increase   
Interest crediting rate - U.S. 

5.9%   
3.8%   

5.4%   
3.8%   

cash balance plans 

4.9%   

4.4%   

The actuarial gain for pension for 2023 was due to an increase in 
discount rates. The actuarial gain for OPEB for 2023 was due to 
changes to health care assumptions. The actuarial gains for 
pension and OPEB for 2022 were due to an increase in discount 
rates. The pension prior service cost for 2022 was due to the new 
UAW collective bargaining agreement.  

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The pension and OPEB amounts recognized in the balance sheet at 
October 29, 2023 and October 30, 2022 consisted of the following: 

Pensions 

OPEB 

Expected Future Benefit Payments 
The expected future benefit payments at October 29, 2023 were 
as follows: 

2024 
2025 
2026 
2027 
2028 
2029 to 2033 

     Pensions                OPEB*          
 249 
 $ 
 252 
 257 
 257 
 257 
 1,251 

 746   $ 
 726  
 727  
720   
 708  
 3,564  

*       Net of prescription drug group benefit subsidy under Medicare Part D. 

Plan Asset Information 
The fair values of the pension plan assets at October 29, 2023 
follow: 

Cash and short-term investments 
Equity: 

U.S. equity securities 
International equity securities 

and funds 

Fixed Income: 

Government and agency 

securities 

Corporate debt securities 
Mortgage-backed securities 

Private equity 
Other investments 
Derivative contracts - assets 
Derivative interest rate contracts - 

liabilities 

Receivables, prepaids, and payables    
Securities lending collateral 
Securities lending liability 
Securities sold short 

Total of Level 1, Level 2, and 

    Total 
 $ 

   Level 1     Level 2    Level 3  

 513  $   470  $ 

 43   

 342  

 330  

 12  

 199  

 197  

 2  

 1,017  
 4,389  
 285  
 18  
 50  
 53  

 (309) 
 (137) 
 615  
 (615) 
 (73) 

 759  

 30  
 17  

 (215) 
 (137) 

 (69) 

 258    
   4,389    
 285    
 $ 
 20    
 36    

 (94)   

 615    
 (615)   
 (4) 

 18  

Level 3 assets 

 6,347  $ 

1,382  $  4,947  $ 

 18  

Investments at net asset value: 

Short-term investments 
U.S. equity funds 
International equity funds 
Fixed income funds 
Real estate funds 
Hedge funds 
Private equity 
Venture capital 
Other investments 
Total net assets 

 362  
 92  
 151  
 1,418  
 462  
 491  
 1,306  
 1,341  
 34  
 $  12,004   

Noncurrent asset 
Less: Current liability 
Less: Noncurrent liability 

Total 

  2023 

  2022 

  2022 

  2023 
 $ 2,608    $  3,223   $ 

 399    $  507  
 39  
 40    
 1,673  
   1,360  
 $  2,076   $ 2,690   $  (1,001)  $  (1,205) 

 42    
 491  

 59  
 473  

The retirement benefits and other liabilities recognized in the 
balance sheet at October 29, 2023 and October 30, 2022 consisted 
of the following: 

22023 

22022 

Deferred compensation - current 
Deferred compensation and other - 

 $

 25  $

noncurrent 

Pensions and OPEB - current 
Pensions and OPEB - noncurrent 

Total 

 $

 183   
 99   
 1,833   
 2,140  $

 30  

 182  
 81  
 2,164  
 2,457  

The amounts recognized in accumulated other comprehensive 
income (cid:3013) pretax at October 29, 2023 and October 30, 2022 
consisted of the following: 

Pensions 

OPEB 

Net actuarial (gain) loss 
Prior service (credit) cost 

Total 

  2023 

  2022 

  2022 

  2023 
 $   1,660  $  926  $ 

 (921) $  (820) 
 (4) 
 $  2,066  $  1,372  $   (922) $  (824) 

 406  

 446  

 (1) 

Actuarial gains and losses are recorded in accumulated other 
comprehensive income (loss). To the extent unamortized gains and 
losses exceed 10 percent of the higher of the market-related value 
of assets or the benefit obligation, the excess is amortized as a 
component of net periodic (benefit) cost over the remaining 
service period of the active participants. For plans in which all or 
almost all of the plan’s participants are inactive, the amortization 
period is the remaining life expectancy of the inactive participants. 

Contributions 
We make any required contributions to the plan assets under 
applicable regulations and voluntary contributions after evaluating 
our liquidity position and ability to make tax-deductible 
contributions. Total contributions to the plans were $228 in 2023 
and $1,240 in 2022, which included both required and voluntary 
contributions and direct benefit payments. 2022 OPEB 
contributions included a voluntary contribution of $1,000 to a U.S. 
plan. 

We expect to contribute approximately $85 to our pension plans 
and approximately $140 to our OPEB plans in 2024. The 
contributions include required and voluntary contributions and 
direct benefit payments from company funds. We have no 
significant required contributions to U.S. pension plan assets in 
2024 under applicable funding regulations. 

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The fair values of the OPEB health care assets at October 29, 2023 
follow: 

The fair values of the OPEB health care assets at October 30, 2022 
follow: 

    Total 
  $ 

 76   $ 

    Level 1      Level 2  

 76    

 596   $ 

 5  

 677   $ 

 41  
 515  
 89  
 3  
 122  
 (122)  
 648  

Cash and short-term investments 
Fixed Income: 

Government and agency securities 
Corporate debt securities 
Mortgage-backed securities 

Other 
Securities lending collateral 
Securities lending liability 

    Total 
 $

 79  $

    Level 1      Level 2   

 79   

 597  $ 

 (7) 

 629    
 516  
 83  
 (4) 
 98  
 (98) 

 32  
 516  
 83  
 3  
 98  
 (98) 
 634  

Cash and short-term investments 
Fixed Income: 

Government and agency securities 
Corporate debt securities 
Mortgage-backed securities 

Other 
Securities lending collateral 
Securities lending liability 

Total of Level 1 and Level 2 assets 

Investments at net asset value: 

Fixed income funds 
Real estate funds 
Hedge funds 
Private equity 
Venture capital 
Other investments 
Total net assets 

 637  
 515  
 89  
 8  
 122  
 (122) 
 1,325   $ 

 392  
 104  
 104  
 43  
 43  
 17  
  $   2,028    

The fair values of the pension plan assets at October 30, 2022 
follow: 

Cash and short-term investments 
Equity: 

    Total 
 $

    Level 1      Level 2   
 55  

 338  $  283  $

U.S. equity securities 
International equity securities and funds    

 311    
 196    

 290  
 195  

 21  
 1  

Fixed Income: 

Government and agency securities 
Corporate debt securities 
Mortgage-backed securities 

Other investments 
Derivative contracts - assets 
Derivative contracts - liabilities 
Receivables, prepaids, and payables 
Securities lending collateral 
Securities lending liability 
Securities sold short 

Total of Level 1 and Level 2 assets 

Investments at net asset value: 

Short-term investments 
U.S. equity funds 
International equity funds 
Fixed income funds 
Real estate funds 
Hedge funds 
Private equity 
Venture capital 
Other investments 
Total net assets 

 1,296      1,053    
 4,587  

 243  
     4,587  
 213  
 18  
 38  
 (103) 

 31    
 54    
 (106)   
 (207) 

 213    
 49    
 92    
 (209)   
 (207)   
 684  
 (684) 

 684  
 (684) 
 (6) 
 (58) 
 6,602  $  1,535  $ 5,067  

 (64)   

 633  
 54  
 125  
 1,736  
 592  
 569  
 1,322  
 1,553  
 33  
 $  13,219   

Total of Level 1 and Level 2 assets 

 1,303  $  669  $ 

Investments at net asset value: 

U.S. equity funds 
International equity funds 
Fixed income funds 
Real estate funds 
Hedge funds 
Private equity 
Venture capital 
Other investments 
Total net assets 

 40  
 22  
 347  
 140  
 188  
 41  
 48  
 7  
 $  2,136   

Investments at net asset value in the preceding tables are 
measured at fair value using the net asset value per share practical 
expedient and are not classified in the fair value hierarchy. Fair 
value measurement levels in the preceding tables are defined in 
Note 25. 

Fair values are determined as follows: 

Cash and Short-Term Investments – The investments include 
(1) cash accounts that are valued based on the account value, 
which approximates fair value; (2) investments that are valued at 
quoted prices in the active markets in which the investment trades 
or using a market approach (matrix pricing model) in which all 
significant inputs are observable or can be derived from or 
corroborated by observable market data; and (3) investment funds 
that are valued based on a constant fund net asset value, which is 
based on quoted prices in the active market in which the 
investment fund trades, or the fund’s net asset value using the net 
asset value per share practical expedient (NAV), which is based on 
the fair value of the underlying securities. 

Equity Securities and Funds – The values are determined by quoted 
prices in the active market in which the equity investment trades, 
or the fund’s NAV, based on the fair value of the underlying 
securities. 

Fixed Income Securities and Funds and Other Funds – The 
securities are valued using either a market approach (matrix pricing 
model) in which all significant inputs are observable or can be 
derived from or corroborated by observable market data such as 
interest rates, yield curves, volatilities, credit risk, and prepayment 
speeds, or they are valued using the quoted prices in the active 
market in which the fixed income investment trades. Fixed income 
and other funds are valued using the fund’s NAV, based on the fair 
value of the underlying securities. 

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extended period of time (i.e., 10 to 20 years). The average annual 
return of our U.S. pension fund was approximately 6.8 percent 
during the past ten years and approximately 7.8 percent during the 
past 20 years. 

We have created a Voluntary Employees’ Beneficiary Association 
trust (VEBA) for the funding of hourly postretirement health care 
benefits. The future expected asset returns for the VEBA is lower 
than the expected return on the other pension and health care plan 
assets due to investment in a higher proportion of liquid securities. 
These assets are in addition to the other postretirement health care 
plan assets that have been funded under Section 401(h) of the U.S. 
Internal Revenue Code and maintained in a separate account in the 
John Deere Pension Trust. 

Defined Contribution Plans 
We have defined contribution plans related to employee 
investment and savings plans primarily in the U.S. Our 
contributions and costs under these plans were $288 in 2023, 
$263 in 2022, and $207 in 2021. The contribution rate varies based 
on employee participation in the plans. 

8. INCOME TAXES 

We are subject to income taxes in a number of jurisdictions. We 
determine our income tax provision using the asset and liability 
method. The provision for income taxes by taxing jurisdiction and 
by significant component consisted of the following: 

    2023 

    2022 

    2021 

Current: 
U.S.: 

Federal 
State 
Foreign 

Total current 

Deferred: 
U.S.: 

Federal 
State 
Foreign 

Total deferred 
Provision for income taxes 

  $ 1,803    $  514   $  899  
 183  
 1,017  
  2,099  

 136  
   1,423  
   2,073  

 386  
   1,472  
   3,661  

 (485) 
 (65) 
 (240) 
 (790) 

 (303) 
 (45) 
 (93) 
 (441) 
  $  2,871   $ 2,007   $  1,658  

 29  
 24  
 (119) 
 (66) 

Based upon the location of our operations, the consolidated 
income before income taxes in the U.S. in 2023, 2022, and 2021 was 
$7.8 billion, $5.0 billion, and $4.1 billion, respectively, and in foreign 
countries was $5.2 billion, $4.1 billion, and $3.5 billion, respectively. 
Certain foreign operations are branches or partnerships of Deere & 
Company and are subject to U.S. as well as foreign income tax 
regulations. The pretax income by location and the preceding 
analysis of the income tax provision by taxing jurisdiction are not 
directly related. 

Real Estate, Venture Capital, Private Equity, and Hedge Funds – The 
investments that are structured as limited partnerships, excluding 
the private equity investments classified as Level 3, are valued at 
estimated fair value based on their proportionate share of the 
limited partnership’s fair value that is determined by the respective 
general partner. These investments are valued using the fund’s 
NAV, which is based on the fair value of the underlying 
investments. Valuations may be lagged up to six months. The NAV 
is adjusted for cash flows (additional investments or contributions, 
and distributions) and any known substantive valuation changes 
through year end. The private equity investments classified as 
Level 3 are valued based on the current market pricing of the 
assets related to an expected secondary sale. The investments 
were transferred into Level 3 as of October 29, 2023. 

Derivative Instruments – The derivatives are valued using either an 
income approach (discounted cash flow) using market observable 
inputs, including swap curves and both forward and spot exchange 
rates, or a market approach (quoted prices in the active market in 
which the derivative instrument trades). 

The investment objective for the pension and health care plan 
assets is to fulfill the projected obligations to the beneficiaries over 
a long period of time, while meeting our fiduciary responsibilities. 
The asset allocation policy is the most important decision in 
managing the assets, and it is reviewed regularly. The asset 
allocation policy considers our long-term asset class risk/return 
expectations for each plan since the obligations are long-term in 
nature. The target asset allocations as of October 29, 2023 are as 
follows: 

Equity 
Debt 
Real estate 
Other investments 

Pension 
Assets 

   Health Care 
Assets 

5%  
68%  
4%  
23%  

9% 
83% 
2% 
6% 

The assets are diversified and are managed by professional 
investment firms as well as by investment professionals who are 
company employees. As a result of our diversified investment 
policy, there were no significant concentrations of risk. 

A market related value of plan assets is used to calculate the 
expected return on assets. The market related value recognizes 
changes in the fair value of pension plan assets systematically over 
a five-year period. The market related value of the health care plan 
assets equals fair value.  

The expected long-term rate of return on plan assets reflects 
management’s expectations of long-term average rates of return 
on funds invested to provide for benefits included in the projected 
benefit obligations. The expected return is based on the outlook 
for inflation and for returns in multiple asset classes, while also 
considering historical returns, asset allocation, and investment 
strategy. Our approach has emphasized the long-term nature of 
the return estimate such that the return assumption is not 
changed significantly unless there are fundamental changes in 
capital markets that affect our expectations for returns over an 

61 

 
 
 
 
 
 
 
 
 
 
  
 
     
      
   
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
               
               
                
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A comparison of the statutory and effective income tax provision 
and reasons for related differences follow: 

A reconciliation of unrecognized tax benefits at October 29, 2023, 
October 30, 2022, and October 31, 2021 follows: 

    2023 

    2022 

    2021 

U.S. federal income tax provision at the 

U.S. statutory rate (21 percent) 

State and local taxes, net of federal effect   
Other impacts of Tax Cuts and Jobs Act of 2017   
Rate differential on foreign subsidiaries 
Research and business tax credits 
Excess tax benefits on equity compensation  
Valuation allowances 
Other - net 
Provision for income taxes 

  $  2,734   $  1,917   $  1,597  
 119  
 (85) 
 148  
 (48) 
 (79) 
 18  
 (12) 
  $  2,871   $ 2,007   $  1,658  

 133  
 (29) 
 121  
 (65) 
 (55) 
 179  
 (194) 

 266  
 (58) 
 142  
 (107) 
 (49) 
 9  
 (66) 

At October 29, 2023, undistributed profits of subsidiaries outside 
the U.S. of approximately $5.1 billion are considered indefinitely 
reinvested. Determination of the amount of a foreign withholding 
tax liability on these unremitted earnings is not practicable. 

Deferred income taxes arise because there are certain items that 
are treated differently for financial accounting than for income tax 
reporting purposes. An analysis of the deferred income tax assets 
and liabilities at October 29, 2023 and October 30, 2022 follows: 

22023 

22022 

  Deferred   Deferred   Deferred   Deferred  

Tax 
  Assets 

Tax 

Tax 

 Liabilities   Assets 

Tax 
 Liabilities  

Accrual for employee 

benefits 

 $ 

Accrual for sales allowances 
Allowance for credit losses 
Amortization of R&D 
expenditures 

Deferred compensation 
Goodwill and other intangible 

assets 

Lessee lease transactions 
Lessor lease transactions 
OPEB - net  
Pension - net  
Share-based compensation 
Tax loss and tax credit 

carryforwards 

Tax over book depreciation 
Unearned revenue 
Other items 
Less: valuation allowances 
Deferred income tax aassets 

 439  
 884  
 79  

 492   
 45  

 $ 

 68   

 193   

 38  

 $ 

 304  
 579  
 90  

 166  
 61  
 581   

 424  

 44  

 $ 

 62   

 213   

 41  

 1,518  

 177  
 681  
 (1,612) 

 198  

 278  

    1,405  

 154  
 487  
    (1,545) 

 178  
 57  
 310  

 532  

 174  

 254  

and liabilities 

 $   3,002  $ 

 1,708  $ 

 1,834  $ 

 1,505  

Deere & Company files a consolidated federal income tax return in 
the U.S., which includes the wholly-owned financial services 
subsidiaries. These subsidiaries account for income taxes as if they 
filed separate income tax returns, with a modification for 
realizability of certain tax benefits. 

At October 29, 2023, tax loss and tax credit carryforwards of 
$1,518 were available with $1,031 expiring from 2024 through 2043 
and $487 with an indefinite carryforward period. 

Beginning of year balance 
Increases to tax positions taken during the 

current year 

Increases to tax positions taken during prior years 
Decreases to tax positions taken during the 

current year 

Decreases to tax positions taken during prior years  
Decreases due to lapse of statute of limitations   
Other 
Foreign exchange 
End of year balance 

    2023      2022      2021    
  $  891   $  811   $ 668 

 68  
 164  

 98  
 29  

 81 
   100 

 (3)  
  (209)  
 (10)  
 (4)  
 10  

 (18) 
 (7) 
 2  
   (24) 

 (23)
 (12)
 (3)

  $  907   $  891   $  811 

The amount of unrecognized tax benefits at October 29, 2023 and 
October 30, 2022 that would impact the effective tax rate if the tax 
benefits were recognized was $329 and $303, respectively. The 
remaining liability was related to tax positions for which there are 
offsetting tax receivables, or the uncertainty was only related to 
timing. We expect that any reasonably possible change in the 
amounts of unrecognized tax benefits in the next twelve months 
would not be significant. 

We file our tax returns according to the tax laws of the jurisdictions 
in which we operate, which includes the U.S. federal jurisdiction 
and various state and foreign jurisdictions. The U.S. Internal 
Revenue Service (IRS) has completed the examination of our 
federal income tax returns for periods prior to 2015. The federal 
income tax returns for years 2015 to 2020 are currently under 
examination. Various state and foreign income tax returns also 
remain subject to examination by taxing authorities. 

9. OTHER INCOME AND OTHER OPERATING EXPENSES 

The major components of other income and other operating 
expenses consisted of the following: 

    2023 

    2022 

    2021 

  $  312   $  283   $  322 
 227 
 87 
 65 

 312    
 95    
 33  

 29  
 222  

 41 
 249 
  $ 1,003   $  1,295   $  991 

 289    
 89    
 72  
 326  
 14  
 222  

  $  853   $  827   $  983 
 235 
 202 

 309  
 227  

 267  
 214  

 (286) 
 122  
 67  

 (183)
 59 
 47 
  $  1,292   $  1,275   $  1,343 

 (218) 
 132  
 53  

Other income 
Revenues from services 
Extended warranty premiums earned 
Trademark licensing income 
Operating lease disposition gains 
Gain on previously held equity investment 
Investment income 
Other 

Total 

Other operating expenses 
Depreciation of equipment on 

operating leases 

Extended warranty claims 
Cost of services 
Pension and OPEB benefit, excluding the 

service cost component 

Foreign exchange loss 
Other 

Total 

62 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
             
             
            
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
10. MARKETABLE SECURITIES 

Most marketable securities are classified as available-for-sale. 
Realized gains or losses are based on specific identification. 

The amortized cost and fair value of marketable securities at the 
end of 2023 and 2022 follow: 

   Gross 

   Gross 

  Amortized   Unrealized   Unrealized   

Cost 

  Gains 

  Losses 

Fair 
     Value     

2023 
International equity 

securities 

International mutual 
funds securities 
U.S. equity fund  
U.S. fixed income fund 
Total equity securities 
Corporate debt securities    $
International debt securities  
Mortgage-backed securities*  
Municipal debt securities    
U.S. government debt 

285   
5   
225   
87   

260     
862   

  $

securities  

Total debt securities 
Marketable securities  
2022 
International equity 

securities 

U.S. equity fund  
Total equity securities 
Corporate debt securities    $
International debt securities  
Mortgage-backed securities*  
Municipal debt securities    
U.S. government debt 

securities  

Total debt securities 
Marketable securities  

  $

236   
64   
186   
74   

220   
780   

  $ 

3   

101   
86   
32   
222   
244   
1   
185   
75   

41   
4   
40   
12   

41   
138   

219   
724   
  $  946   

  $ 

36   
4   
31   
11   

37   
119   

  $ 

3   
70   
73   
200   
60   
155   
63   

183   
661   
734   

  $ 

  $ 

  $ 

  $ 

*       Primarily issued by U.S. government sponsored enterprises. 

The purchases, maturities, and sale proceeds for marketable 
securities during 2023, 2022, and 2021 follow: 

Purchases 
Maturities and sale proceeds 

 $ 

 491   $ 
 186    

250   $ 
79    

194  
109  

     2023     

    2022     

    2021     

Equity Securities 
Proceeds of equity securities sold during 2023, 2022, and 2021 were 
not material. Unrealized gain (loss) on equity securities during 2023 
and 2022 follow: 

Net gain (loss) recognized on equity securities 
Less: Net gain (loss) on equity securities sold 
Unrealized gain (loss) on equity securities 

 $ 
 $ 

     2023     

        2022      
 (11) 
   $ 

 (1)  
 1   $ 

 (11) 

63 

Debt Securities 
The contractual maturities of debt securities at October 29, 2023 
follow: 

Due in one year or less 
Due after one through five years 
Due after five through 10 years 
Due after 10 years 
Mortgage-backed securities 
Debt securities 

 $ 

 $ 

  Amortized    
Cost 

Fair 
   Value      
19   
136   
214   
170   
185   
724   

20    $ 
147   
249   
221   
225   
862    $ 

Actual maturities may differ from contractual maturities because 
some securities may be called or prepaid. Mortgage-backed 
securities contain prepayment provisions and are not categorized 
by contractual maturity.  

The following debt security items were not material in 2023, 2022, 
and 2021: 
•  realized gains,  
•  realized losses, and  
•  unrealized losses that have been continuous for over twelve 

months.  

Unrealized losses at October 29, 2023 and October 30, 2022 were 
not recognized in income due to the ability and intent to hold to 
maturity. There were no significant impairment write-downs in the 
periods reported.  

11. RECEIVABLES 

Trade Accounts and Notes Receivable 
Trade accounts and notes receivable arise from sales of goods to 
independent dealers. See Note 2 for our revenue recognition 
policy. We evaluate and assess dealers’ credit worthiness on an 
ongoing basis. Receivables are secured with collateral or other 
credit enhancements. Trade accounts and notes receivable at the 
end of 2023 and 2022 follow: 

Trade accounts and notes receivable: 

Production & precision ag 
Small ag & turf 
Construction & forestry 

Trade accounts and notes receivable – net 

         2023              2022       

  $  2,642   $  2,397  
 2,065  
 1,948  
  $  7,739   $  6,410  

 2,344  
 2,753  

These receivables have significant concentrations of credit risk in 
the agriculture and turf and construction and forestry markets. 
Credit losses have been historically low. There is not a 
disproportionate concentration of credit risk with any single dealer. 
On a geographic basis, 53 percent of our trade accounts and notes 
receivable are located in the U.S. and Canada at October 29, 2023.  

At October 29, 2023 and October 30, 2022 trade and notes 
receivables balances outstanding greater than 12 months were 
$107 and $49, respectively.  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
     
   
   
   
     
   
   
   
     
   
   
   
     
   
   
   
  
   
 
 
 
  
  
 
 
 
  
   
   
  
 
   
   
   
 
 
 
 
 
 
 
   
   
 
 
 
 
 
 
   
   
   
 
 
   
  
 
 
 
 
 
  
  
 
 
 
  
 
   
  
 
   
   
   
 
 
 
 
   
   
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
The allowance for credit losses on trade accounts and notes 
receivable at October 29, 2023, October 30, 2022, and October 31, 
2021, as well as the related activity, follow: 

Beginning of year balance 
ASU No. 2016-13 
Provision 
Write-offs 
Translation adjustments 
End of year balance 

22023 

22022 

22021 

  $ 

 36   $ 

 41   $ 

 7  
 (8) 

  $ 

 35   $ 

 1  
 (5) 
 (1) 
36   $ 

 39  
 (2) 
 10  
 (7) 
 1  
41  

The equipment operations sell a significant portion of their trade 
receivables to financial services. Compensation is provided to 
financial services at market interest rates. 
Financing Receivables (cid:3013) Overall 
Financing receivables originate under the following circumstances: 
•  Retail customers purchase (or lease) equipment from a dealer 
and finance the equipment through John Deere Financial.  
•  We sell the equipment to a dealer under trade terms. Trade 
terms end, and the dealer finances the equipment on a 
wholesale receivable. Shown as wholesale notes in “Financing 
Receivables related to the Sale of Equipment.” 

•  A dealer finances the purchase of used equipment through 

John Deere Financial. 

•  We sell (or lease) the equipment directly to a retail customer 
with terms typically greater than 12 months. Shown as retail 
notes or sales-type leases in the “Financing Receivables related 
to the Sale of Equipment.” 

•  The customer utilizes a revolving credit product to finance 

parts, service, or input costs.  

Financing receivables at the end of 2023 and 2022 follow: 

84 percent of our financing receivables were located in the U.S. 
and Canada at October 29, 2023. There is no disproportionate 
concentration of credit risk with any single customer or dealer. We 
retain as collateral security in the equipment associated with most 
financing receivables. Theft and physical damage insurance are 
required for this equipment.  

Financing Receivables (cid:3013) Related to the Sale of Equipment 
Financing receivables related to the sale of equipment are 
presented in the operating section of the cash flow statement. The 
balances at the end of 2023 and 2022 were as follows: 

  2023 

  2022 

Retail notes*: 

Agriculture and turf 
Construction and forestry 

Total 

Wholesale notes 
Direct financing and sales-type leases* 

Total 

Less: 

Unearned finance income: 

Retail notes 
Wholesale notes 
Direct financing and sales-type leases 

Total 

Financing receivables related to our sales of 

 320    

 $  1,084  $  1,392  
 304  
 1,404      1,696  
 6,947      3,285  
 799  
 5,780  

 494    
 8,845   

 137   
 25   
 60    
 222    

 133  
 12  
 67  
 212  

equipment 

 $  8,623  $  5,568  

*    These balances arise from sales and direct financing leases of equipment by 

company-owned dealers or through direct sales. 

Financing Receivables (cid:3013) Contractual Installment Payments 
Financing receivable installments, including unearned finance 
income, at October 29, 2023 and October 30, 2022 were scheduled 
as follows: 

22023 

22022 

  Unrestricted/Securitized   Unrestricted/Securitized  

22023 

22022 

  Unrestricted/Securitized      Unrestricted/Securitized   

Retail notes: 

Agriculture and turf 
Construction and forestry 

Total 

Wholesale notes 
Revolving charge accounts 
Financing leases (direct  

 $  26,955   $  6,052  $  23,830   $  4,868  
 1,179  
 6,047  

 4,623  
      31,578  
 6,947  
 4,789  

 1,442    
 4,396  
 7,494      28,226  
 3,285  
 4,316  

and sales-type) 
Total financing receivables 

      2,906  
     46,220  

 2,832  
 7,494      38,659  

 6,047  

Less: 

Unearned finance income: 

Retail notes 
Wholesale notes 
Revolving charge accounts  
Financing leases 

Total 

Allowance for credit losses 
Financing rreceivables – net 

 1,906  
 25  
 91  
 350  
 2,372  
 175  

 $  43,673   $

 95  

 137    

 1,358  
 12  
 61  
 285  
 95  
 1,716  
 16  
 309  
 7,335  $  36,634   $  5,936  

 137    
 22    

Assets managed by financial services continue to be evaluated by 
market, rather than by operating segment. Financing receivables 
have significant concentrations of credit risk in the agriculture and 
turf and construction and forestry markets. On a geographic basis, 

64 

Due in months: 

0 – 12 
13 – 24 
25 – 36 
37 – 48 
49 – 60 
Thereafter 

Total 

 $  22,176   $  2,820  $  17,032   $  2,226  
 1,667  
 2,089  
 1,209  
 1,509  
 709  
 824  
 227  
 241  
 9  
 11  
 $ 46,220   $  7,494  $  38,659   $  6,047  

 8,646  
 6,692  
 4,844  
 2,920  
 942  

 7,975  
 5,987  
 4,297  
 2,559  
 809  

Financing Receivables (cid:3013) Credit Quality Analysis 
We monitor the credit quality of financing receivables based on 
delinquency status, defined as follows: 
•  Past due balances represent any payments 30 days or more 

past the due date.  

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

•  Write-offs generally occur when receivables are 120 days 

delinquent. In these situations, the estimated uncollectible 
amount is written off to the allowance for credit losses. Any 
expected recovery is presented as non-performing. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                   
                 
                  
                 
    
 
 
 
 
    
   
 
    
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
 
 
 
 
 
 
    
   
 
    
 
 
    
 
 
 
 
 
 
    
    
 
  
  
  
  
  
    
    
 
    
    
 
  
  
  
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
                   
                   
                    
                 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
 
22020 

Construction and forestry     

  22022 

October 30, 2022 
22020 
22021 

22019 

Retail customer receivables:          

Agriculture and turf 

Current 
30-59 days past due 
60-89 days past due 
90+ days past due 
Non-performing 

 $ 13,500    $ 

46     
14     
1     
27     

7,984    $  4,091    $
36     
13     

63     
25     

1,875   
17   
6   

60     

44     

28   

Current 
30-59 days past due 
60-89 days past due 
90+ days past due 
Non-performing 

Total retail 

2,964     
53     
19     
1     
25     

1,974     
52     
16     
4     
61     

842     
23     
7     
1     
34     

292   
9   
3   
3   
19   

customer receivables 

 $  16,650   $ 

 10,239   $ 

 5,091   $  2,252  

October 30, 2022 

22018 

  Prior Years 

Revolving 
Charge 
Accounts  

Total 

Retail customer receivables:     

Agriculture and turf 

Current 
30-59 days past due 
60-89 days past due 
90+ days past due 
Non-performing 

Current 
30-59 days past due 
60-89 days past due 
90+ days past due 
Non-performing 

Total retail 

 $

785    $ 
7     
2     

200    $ 
3     
1     

18     

73     
2     
1     

7     

19     

12     
1     

1     
3     

19     
5     

4,111    $  32,546  
 191  
 66  
 1  
 204  

8     

108     
3     
1     

 6,265  
 143  
 47  
 10  
 149  

customer receivables 

 $

 895   $ 

 240   $ 

 4,255   $  39,622  

Total 

Construction and forestry     

Finance income for non-performing receivables is recognized on a 
cash basis. Accrual of finance income is 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: 

  22023 

October 29, 2023 
22021 
22022 

Retail customer receivables:          

 $ 

Agriculture and turf 

Current 
30-59 days past due 
60-89 days past due 
90+ days past due 
Non-performing 

Construction and forestry     

Current 
30-59 days past due 
60-89 days past due 
90+ days past due 
Non-performing 

Total retail 

15,191    $  8,430    $  5,120    $  2,334   
21   
10   
3   
33   

39     
18     
3     
62     

75     
26     
1     
78     

62     
18     
2     
30     

2,927     
49     
19     

42     

1,961     
34     
14     
6     
80     

1,084     
27     
12     
1     
55     

353   
9   
5   

23   

customer receivables 

 $  18,340   $ 

 10,705   $ 

 6,421   $ 

 2,791  

October 29, 2023 

22019 

  Prior Years 

Revolving 
Charge 
Accounts  

Retail customer receivables:     

Agriculture and turf 

Current 
30-59 days past due 
60-89 days past due 
90+ days past due 
Non-performing 

Construction and forestry     

Current 
30-59 days past due 
60-89 days past due 
90+ days past due 
Non-performing 

Total retail 

 $ 

853    $ 
9     
4     

22     

84     
4     
2     

9     

3     
2     

280    $  4,526    $  36,734  
 238  
29     
 87  
9     
 9  
 255  

22     

8     

29     

1     
4     

119     
4     
2     

1     

 6,557  
 127  
 54  
 8  
 214  

customer receivables 

 $ 

 987   $ 

 341   $   4,698   $  44,283  

65 

 
 
 
 
 
 
 
 
 
 
          
          
          
 
    
   
 
   
 
     
 
  
  
  
  
   
 
   
 
     
 
  
  
  
  
   
 
  
 
    
   
 
   
 
     
 
 
 
 
 
 
 
   
 
   
 
     
 
    
   
 
   
 
     
 
  
  
  
   
   
   
  
   
 
   
 
     
 
  
  
   
  
   
  
   
   
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
          
          
          
  
    
   
 
   
 
     
 
  
  
  
   
   
 
  
   
 
   
 
     
 
  
  
  
  
  
 
    
   
 
   
 
     
 
 
 
 
 
 
 
   
 
   
 
     
 
    
   
 
   
 
     
 
  
  
  
   
   
   
  
   
 
   
 
     
 
  
  
  
   
  
   
   
  
   
 
 
The credit quality analysis of wholesale receivables by year of 
origination was as follows: 

  22023 

October 29, 2023 
22021 
22022 

22020 

Wholesale receivables: 
Agriculture and turf 

Current 
30+ days past due 
Non-performing 

 $ 

631    $ 

93    $ 

21    $ 

4   

Construction and forestry     

Current 
30+ days past due 
Non-performing 

23     

5     

20     

Total wholesale receivables  $ 

 654   $ 

 98   $ 

 41   $ 

 4  

October 29, 2023 
  Prior Years  Revolving  

22019 

Total 

Financing Receivables (cid:3013) Allowance for Credit Losses 
An analysis of the allowance for credit losses and investment in 
financing receivables follows: 

 Retail Notes  Revolving  
 & Financing   Charge    Wholesale   
   Leases 

  Accounts   Receivables       Total      

2023 
Allowance: 
Beginning of year balance  $ 

Provision 
Provision transferred 
to held for sale 
Provision (credit) 
Write-offs 
Recoveries 
Translation 
adjustments 

End of year balance* 

 $ 

299   $ 
97    

 22  $ 
 22   

 4  $ 

(142)  
 (45)   
 (84)   
 21    

 (19) 
 172  $ 

 22  
 (45) 
 22  

 21  $ 

 4  $ 

 325  
 119  

 (142) 
 (23) 
 (129) 
 43  

 (19) 
 197  

 $ 

1    $ 

160    $  5,175    $  6,085   

Financing receivables: 
End of year balance 

 $ 

 39,585  $   4,698  $ 

 6,922  $  51,205  

1     

1   

76     

712     

836   

2022 
Allowance: 
Beginning of year balance  $ 

Wholesale receivables: 
Agriculture and turf 

Current 
30+ days past due 
Non-performing 

Construction and forestry     

Current 
30+ days past due 
Non-performing 

Total wholesale receivables  $ 

 2   $ 

 236   $   5,887   $ 

 6,922  

  22022 

October 30, 2022 
22020 
22021 

22019 

Wholesale receivables: 
Agriculture and turf 

Current 
30+ days past due 
Non-performing 

 $

387    $ 

64    $ 

27    $

Construction and forestry      

Current 
30+ days past due 
Non-performing 

7     

29     

2     

4   

1   

1   

Total wholesale receivables  $

 394    $ 

 93    $ 

 29    $

 6   

October 30, 2022 
  Prior Years  Revolving  

22018 

Total 

   $ 

2    $  2,371    $ 2,855   

1   

1     

377     

417   

Wholesale receivables: 
Agriculture and turf 

Current 
30+ days past due 
Non-performing 

Construction and forestry      

Current 
30+ days past due 
Non-performing 

Total wholesale receivables   

   $ 

 3    $   2,748    $  3,273   

 138  $
 197    
 (61)   
 22    

 3  
 299  $

 7  $
 (3)    

 21  $ 
 (2)   
 (27)   
 30  

 22  $ 

 4  $

 166  
 192  
 (88) 
 52  

 3  
 325  

 $ 

 35,367  $  4,255  $ 

 3,273  $ 42,895  

 133  $ 
 44    

 (60)   
 20    

 1  
 138  $ 

 8  $

 (1)   

 43  $ 
 (13)   
 (17) 
 (28) 
 36  

 21  $ 

 7  $

 184  
 31  
 (18) 
 (88) 
 56  

 1  
 166  

Provision (credit) 
Write-offs  
Recoveries  
Translation 
adjustments  
End of year balance*  

Financing receivables: 
End of year balance  

2021 
Allowance: 
Beginning of year balance  $ 

ASU No. 2016-13 
Provision (credit) 
Write-offs  
Recoveries  
Translation 
adjustments  
End of year balance*  

Financing receivables: 
End of year balance  

 $ 

 $ 

 $ 

 32,233  $ 

 3,825  $ 

 2,566  $ 38,624  

*    Individual allowances were not significant. 

We monitor the economy as part of the allowance setting process, 
including potential impacts of inflation and rising interest rates. 
Adjustments to the allowance are incorporated, as necessary.  

During 2023, we determined that the financial services business in 
Russia met the held for sale criteria. The financing receivables in 
Russia were reclassified to “Other assets” and the associated 
allowance for credit losses was reversed. These operations were 
sold in the second quarter of 2023 (see Note 3). Excluding the 
portfolio in Russia, the allowance increased in 2023, primarily 
driven by growth in the retail notes and financing lease portfolios 

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and higher expected losses on turf and construction customer 
accounts. 
In 2022, the allowance for credit losses on retail notes and 
financing lease receivables increased due to higher reserves related 
to the events in Russia / Ukraine and higher portfolio balances. 
These increases were partially offset by continued positive 
agricultural market conditions. The revolving portfolio experienced 
low write-offs and solid recoveries. 
Financing receivable analysis metrics follow: 

12. SECURITIZATION OF FINANCING RECEIVABLES 

Our funding strategy includes receivable securitizations, which 
allows us to receive cash for financing receivables immediately. 
While these securitization programs are administered in various 
forms, they are accomplished in the following basic steps: 
1.  We transfer financing receivables into a bankruptcy-remote 

special purpose entity (SPE). 

2.  The SPE issues debt to investors. The debt is secured by the 

financing receivables. 

22023 

22022 

3.  Investors are paid back based on cash receipts from the 

Percent of the overall financing 

receivable portfolio: 
Past-due amounts 
Non-performing 
Allowance for credit losses 

Deposits held as credit enhancements    $ 

1.02   
.92   
.38   
154    $ 

1.07   
.83   
.76   
158   

The allowance for credit losses as a percent of the overall financing 
receivable portfolio follow: 

Deere & Company 
Closest comparators* 

      2023 

      2022 

      2021 

.38 
.90 

.76 
.93 

.43  
1.15  

*    Peer companies from the 6153 and 6159 standard industrial classification (SIC) codes. 

Financing Receivables (cid:3013) Troubled Debt Restructurings 
Infrequently, a customer experiences financial difficulties, and we 
grant a concession. These concessions may include: 
•  a reduction of the stated interest rate,  
•  an extension of the maturity dates,  
•  a reduction of the amount of the debt, or  
•  a reduction of accrued interest.  
A troubled debt restructuring is a significant modification of the 
receivable. The following table quantifies troubled debt 
restructurings: 

Number of receivable contracts 
Pre-modification balance 
Post modification balance 

     2023 

     2022 

     2021 

  $

 209 
 10 
 9 

  $

 276 
 12 
 10 

  $

 397  
 18  
 17  

Troubled debt restructurings for the presented periods related to 
retail notes. In 2023, 2022, and 2021, there were no significant 
troubled debt restructurings that subsequently defaulted and were 
written off. At October 29, 2023, we had no commitments to lend 
to customers whose accounts were modified in troubled debt 
restructurings. 

Other Receivables 
Other receivables at the end of 2023 and 2022 consisted of: 

Taxes receivable  
Collateral on derivatives 
Receivables from unconsolidated affiliates 
Other  
Other receivables  

2022 
  $  1,450   
 709   

      2023 
  $  1,626 
 667 
 3 
 327  

 333  
   $  2,623    $  2,492  

financing receivables. 

As part of step 1, these receivables are legally isolated from the 
claims of our general creditors. This ensures cash receipts from the 
financing receivables are accessible to pay back securitization 
program investors. The structure of these transactions does not 
meet the accounting criteria for a sale of receivables. As a result, 
they are accounted for as a secured borrowing. The receivables 
and borrowings remain on our balance sheet and are separately 
reported as “Financing receivables securitized – net” and “Short-
term securitization borrowings,” respectively. 
We offer securitization programs to institutional investors and 
other financial institutions through public issuances or privately 
through a revolving credit agreement. At October 29, 2023, the 
revolving agreement had a financing limit of up to $1,500. At 
October 29, 2023, $1,281 of securitization borrowings were 
outstanding under the revolving agreement. In November 2023, 
the agreement was renewed for one year with a capacity of 
$2,000. 
Restricted cash held by the SPE serves as a credit enhancement. It 
would be used to satisfy receivable payment deficiencies, if any. 
The cash restriction is removed either after all secured borrowing 
payments are made or proportionally as the secured receivables are 
collected and the borrowing obligations are reduced. 
The components of the securitization programs were as follows at 
the end of 2023 and 2022: 

Financing receivables securitized (retail notes)  
Allowance for credit losses  
Other assets (primarily restricted cash) 
Total restricted securitized assets  

       2023            2022       
 7,357   $   5,952   
 $ 
 (16) 
 155  
 7,487    $   6,091  

 (22) 
 152  

   $ 

5,711   
Short-term securitization borrowings  
6   
Accrued interest on borrowings  
Total liabilities related to restricted ssecuritized assets      $  7,008     $  5,717   

 $  6,995    $ 

13   

The weighted-average interest rates on short-term securitization 
borrowings at October 29, 2023 and October 30, 2022 were 
4.7 percent and 2.8 percent, respectively. 
Although these securitization borrowings are classified as short-
term since payment is required if the financing receivables are 
liquidated early, the payment schedule for these borrowings at 
October 29, 2023 based on the expected liquidation of the retail 
notes is as follows: 2024 - $3,278, 2025 - $2,076, 2026 - $1,187, 
2027 - $417, 2028 - $44, and later years - $4. 

67 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
   
   
   
 
 
 
 
 
 
 
 
 
 
 
    
  
   
   
   
   
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
13. INVENTORIES 

The components of other intangible assets were as follows: 

Inventories were valued at the lower of cost or net realizable value, 
as follows: 

2023 

2022 

Raw materials and supplies  
Work-in-process  
Finished goods and parts  
Total FIFO value  
Excess of FIFO over LIFO 
Inventories  
Percent valued on LIFO basis 

1,010   
5,435   
10,525   
2,365   

   $  4,080     $  4,442    
1,190   
   5,363   
   10,995   
   2,500   
   $  8,160     $  8,495   
57%   

53%   

14. PROPERTY AND DEPRECIATION 

A summary of property and equipment at October 29, 2023 and 
October 30, 2022 follows: 

 Useful Lives*  
(Years) 

 22 
 11 
 8 
 5 

Land  
Buildings and building equipment     
Machinery and equipment  
Dies, patterns, tools, etc.  
All other  
Construction in progress  

Total at cost  

Less: accumulated depreciation  
Property and equipment - net  

*    Weighted-averages 

 338   $ 

        2023            2022       
 274   
 $ 
 4,386  
   6,208  
 1,558  
 1,205  
 818  
   14,449  
 8,393  
  $   6,879   $   6,056  

 4,735  
 6,613  
 1,658  
 1,323  
 1,266  
   15,933  
    9,054  

Property and equipment additions and depreciation follows: 

Additions 
Depreciation 

22023 

22022 

22021 

  $ 

 1,597   $ 
 838  

 1,197   $ 
 806  

 897 
 830 

For property and equipment, more than 10 percent resides in the 
U.S. and Germany, separately disclosed below: 

U.S. 
Germany  
Other countries  

Total  

22023 

22022 

 3,807   $ 
 1,192  
 1,880  
 6,879   $ 

 3,452  
 991  
 1,613  
 6,056  

  $ 

  $ 

Customer lists and relationships  
Technology, patents, trademarks, and other  

Total at cost  

Less accumulated amortization: 

Customer lists and relationships  
Technology, patents, trademarks, and other  

Total accumulated amortization 

Other intangible assets - net  

  2023  

 2022  

 $ 

501   $

1,387   
1,888   

195   
560   
755   
1,133    $

  $ 

493   
1,301   
1,794   

166   
410   
576   
1,218   

Actual amortization expense for the past three years and the 
estimated amortization expense for the next five years follows:  

Year 
2021 
2022 
2023 
Estimated - 2024 
   2025 
   2026 
   2027 
   2028 

16. OTHER ASSETS 

Amortization 

$ 

116   
145   
169   
170   
142   
119  
117   
85   

Other assets at October 29, 2023 and October 30, 2022 consisted 
of the following: 

22023 

22022 

Operating lease asset (Note 24) 
Capitalized software, net 
Investment in unconsolidated affiliates 
Deferred charges (including prepaids) 
Derivative assets (Note 26) 
Prepaid taxes 
Parts return asset 
Restricted cash 
Matured lease & repossessed inventory 
Other 
Other Assets 

  $ 

  $ 

 283   $ 
 450     
 126     
 426  
 292  
 167  
 127  
 162  
 59  
 411  
2,503    $ 

299   
372   
117   
383   
373   
185   
119   
167   
44   
358   
2,417   

Capitalized software has an estimated useful life of three years. 
Amortization of these software costs in 2023, 2022, and 2021 was 
$144, $117, and $121, respectively. 

15. GOODWILL AND OTHER INTANGIBLE ASSETS – NET 

17. SHORT-TERM BORROWINGS 

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

Short-term borrowings at the end of 2023 and 2022 consisted of: 

October 31, 2021 
Acquisitions (Note 3) 
Translation adjustments and other   
October 30, 2022 
Acquisitions (Note 3) 
Translation adjustments and other   
October 29, 2023 

CF 

   SAT 

   PPA 
      Total     
 $   542   $  265   $ 2,484   $   3,291  
 800  
    (404) 
   3,687  
 81  
 132  
  $   702   $  363   $  2,835   $  3,900  

 132  
   (28) 
  646  
 41  
 15  

 69  
 (16) 
 318  
 40  
 5  

 599  
 (360) 
 2,723  

 112  

Commercial paper 
Notes payable to banks 
Finance lease obligations due within one year   
Long-term borrowings due within one year 
Short-term borrowings 

      2022 

      22023 
     $  9,100        $  4,703    
402   
21   
  7,466   
  $  17,939    $  12,592   

483    
25   
   8,331   

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The weighted-average interest rates at the end of 2023 and 2022 
were:  

Short-term borrowings: 
Commercial paper 
Notes payable to banks 
Notes payable to banks, excluding Argentina 

      22023 

      2022 

       5.4%       

31.6%   
8.8%   

3.4%   
11.9%  
6.6%  

Worldwide lines of credit were $10.5 billion at October 29, 2023, 
consisting primarily of: 
•  a 364-day credit facility agreement of $5.0 billion, expiring in 

the second quarter of 2024, 

•  a credit facility agreement of $2.5 billion, expiring in the 

second quarter of 2027, and 

•  a credit facility agreement of $2.5 billion, expiring in the 

second quarter of 2028. 

At October 29, 2023, $.8 billion of these worldwide lines of credit 
were unused. For the purpose of computing the unused credit 
lines, commercial paper and short-term bank borrowings were 
considered to constitute utilization. The credit agreements 
governing these lines of credit require us to maintain certain 
covenants. All of these credit agreement requirements have been 
met during the periods included in the consolidated financial 
statements. 

18. ACCOUNTS PAYABLE AND ACCRUED EXPENSES 

Accounts payable and accrued expenses at the end of 2023 and 
2022 consisted of the following: 

19. LONG-TERM BORROWINGS 

Long-term borrowings at the end of 2023 and 2022 consisted of: 

Underwritten term debt 

U.S. dollar notes and debentures: 

2.75% notes due 2025 
6.55% debentures due 2028  
5.375% notes due 2029  
3.10% notes due 2030 
8.10% debentures due 2030  
7.125% notes due 2031  
3.90% notes due 2042  
2.875% notes due 2049  
3.75% notes due 2050 

Euro notes: 

1.375% notes due 2024 (€800 principal) 
1.85% notes due 2028 (€600 principal) 
2.20% notes due 2032 (€600 principal) 
1.65% notes due 2039 (€650 principal) 

Serial issuances 

Medium-term notes 

Other notes and finance lease obligations 
Less: debt issuance costs and debt discounts 
Long-term borrowings 

    22023 

    2022 

  $ 

 700   $ 
 200  
 500  
 700  
 250  
 300  
 1,250  
 500  
 850  

 634    
 634    
 687    

 700  
 200  
 500  
 700  
 250  
 300  
 1,250  
 500  
 850  

 797  
 598  
 598  
 648  

 29,638    
 1,769  
 (135) 

 24,604  
 1,223  
 (122) 
  $  38,477   $  33,596  

Medium-term notes due through 2033 are offered by prospectus. All 
outstanding notes and debentures are senior unsecured borrowings 
and rank equally with each other. The outstanding principal and 
average interest rates at the end of 2023 and 2022 follow: 

22023 

2022 

   22023 

   22022 

Medium-term notes: 

Accounts payable: 
Trade payables  
Dividends payable  
Operating lease liabilities 
Deposits withheld from dealers and merchants      
Payables to unconsolidated affiliates 
Other  

  $  3,467   $  3,894  
 343  
 302  
 163  
 11  
 214  

 388  
 281  
 163    
 6    
 153  

Accrued expenses: 

Employee benefits  
Product warranties  
Accrued taxes 
Derivative liabilities 
Dealer sales discounts  
Extended warranty premium  
Unearned revenue (contractual liability) 
Unearned operating lease revenue 
Accrued interest  
Other  

Accounts payable and accrued expenses  

 2,152  
 1,610  
 1,558  
 1,130  
 1,243  
 1,021  
 676  
 451  
 434  
 1,397  

 1,528  
 1,427  
 1,255  
 1,231  
 1,044  
 866  
 557  
 399  
 288  
 1,300  
  $ 16,130   $ 14,822  

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

Principal 
Average interest rates 

  $

 30,902   $ 
4.9%  

 25,629  
2.9%  

The principal amounts of our long-term borrowings maturing in 
each of the next five years are as follows: 2024 - $8,319, 
2025 - $9,195, 2026 - $7,867, 2027 - $3,724, and 2028 - $6,080.  

20. COMMITMENTS AND CONTINGENCIES 

A standard warranty is provided as assurance that the equipment 
will function as intended. The standard warranty period varies by 
product and region. At the time a sale is recognized, we record an 
estimate of future warranty costs based on historical claims rate 
experience and estimated population under warranty. The 
warranty reconciliation follows: 

Beginning of year balance 
Warranty claims paid 
New product warranty accruals 
Foreign exchange 
End of year balance 

          2023            2022      
1,312   
    $  1,427      $ 
(951) 
(1,181)  
  1,090   
1,347   
(24) 
17   
1,427   
1,610     $ 

   $ 

The costs for extended warranty programs are recognized as 
incurred. See Note 9 for extended warranty claim costs. 

In certain international markets, we provide guarantees to banks 
for the retail financing of John Deere equipment. At the end of  

69 

 
 
 
 
 
 
 
 
 
  
 
               
                
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
                  
                  
 
 
 
 
 
 
  
  
 
  
  
 
 
 
 
  
  
 
  
  
 
  
  
 
 
 
 
 
 
 
 
 
 
 
   
   
   
   
   
   
   
 
   
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
  
 
                
                
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A reconciliation of basic and diluted net income per share 
attributable to Deere & Company follows in millions, except per 
share amounts: 

      2023          2022          2021      

Net income attributable to Deere & 

Company  

Average shares outstanding  
Basic per share  
Average shares outstanding  
Effect of dilutive stock options  

Total potential shares outstanding  

Diluted per share  
Shares excluded as antidilutive 

22. SHARE-BASED COMPENSATION 

  292.2   

  $ 10,166    $  7,131    $ 5,963   
  304.5   
  311.6   
  $  34.80    $  23.42    $  19.14   
  311.6   
  304.5   
2.4   
1.8   
  306.3   
  314.0   
  $  34.63    $  23.28    $  18.99   

  292.2   
1.4   
  293.6   

.1     

.2     

We issue stock options and restricted stock units to key 
employees. Restricted stock units are also issued to nonemployee 
directors for their services as directors. Restricted stock units 
consist of service-based and performance/service-based awards. 

In 2023, we changed the accounting treatment of the Long-Term 
Incentive Cash that is granted to certain employees. As the 
performance metric related to this incentive plan is based, in part, 
on the price of our shares, we now account for it in accordance 
with FASB ASC Topic 718. At October 29, 2023, we are authorized to 
grant an additional 16.6 million shares related to stock options or 
restricted stock units. We currently use shares that have been 
repurchased through our stock repurchase programs to satisfy 
share option exercises. The stock awards vesting periods and the 
dividend equivalents earned during the vesting period follow: 

Stock options 
Service-based RSUs 
Performance/service-based RSUs 

Vesting  
Period  
1-3 years  
1-3 years  
3 years  

Dividend  
Equivalents  
Not included  
Included  
Not included  

Stock options expire ten years from the grant date. 
Performance/service-based awards are subject to a performance 
metric. The performance metric is based on our compound annual 
revenue growth rate, compared to a benchmark group of 
companies. The performance/service-based units award common 
stock in a range of zero to 200 percent for each unit granted based 
on the level of the metric achieved. 

The fair value of stock options and restricted stock units is 
determined using our closing price on the grant date. These 
awards are expensed over the shorter of the award vesting period 
or the employee’s retirement eligibility period. The 
performance/service-based units’ expense is adjusted quarterly for 
the probable number of shares to be awarded. We recognize the 
effect of award forfeitures as an adjustment to compensation 
expense in the period the forfeiture occurs. 

2023, the notional value of these guarantees was $239. We may 
repossess the equipment collateralizing the receivables. At 
October 29, 2023, the accrued losses under these guarantees 
were not material.  

We also had other miscellaneous contingent liabilities totaling 
approximately $105 at October 29, 2023. The accrued liability for 
these contingencies was not material. 

At October 29, 2023, we had commitments of approximately $634 
for the construction and acquisition of property and equipment. 

We have commitments to extend credit to customers. The 
commitments are in the form of lines of credit and other pre-
approved credit arrangements. We have the right to cancel or 
amend the terms of these commitments at any time. These 
commitments are not expected to be fully drawn upon; 
therefore, the total commitment amounts likely do not represent 
a future cash requirement. The commitments to extend credit at 
October 29, 2023 were:  
•  $9.3 billion to John Deere dealers, and 
•  $32.4 billion to retail customers. 

We are subject to various unresolved legal actions. The accrued 
losses on these matters are not material. We believe the 
reasonably possible range of losses for these unresolved legal 
actions would not have a material effect on our financial 
statements. The most prevalent legal claims relate to:  
•  product liability (including asbestos-related matters),  
•  retail credit,  
•  employment,  
•  patent,  
•  trademark, and  
•  antitrust matters.  

21. CAPITAL STOCK 

Our stock is listed on the New York Stock Exchange under the 
symbol “DE.” At the end of 2023, there were 17,158 holders of record 
of our common stock. 

The number of common shares we are authorized to issue is 
1.2 billion. The common shares issued at October 29, 2023, 
October 30, 2022, and October 31, 2021 were 536.4 million. 
281.6 million common shares were outstanding at October 29, 2023, 
with the remainder held in treasury stock. 

The number of authorized preferred shares is 9 million. No 
preferred shares have been issued. 

In December 2022, the Board of Directors authorized the 
repurchase of up to $18.0 billion of common stock. At the end of 
fiscal year 2023, this repurchase program had $13.0 billion 
(35.9 million shares based on our fiscal year end closing NYSE 
common stock price of $361.15 per share) remaining to be 
repurchased. Repurchases of our common stock under this plan 
are made from time to time, at our discretion, in the open market. 

70 

 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The total share-based compensation expense, recognized income 
tax benefits, and total grant-date fair values of stock options and 
restricted stock units vested consisted of the following: 

Share-based compensation expense    $
Income tax benefits 
Stock options and restricted stock 

units vested 

22023 

22022 

22021 

130    $
21     

85    $
17     

84     

74     

82   
16   

93   

Restricted Stock Units 
The weighted-average grant date fair values were as follows:  

Service-based 
Performance/service-based 

  $ 

22023 
428.35    $ 
424.93     

22022 
347.59    $ 
331.47     

22021 
258.86   
245.73   

Our restricted stock units at October 29, 2023 and changes during 
2023 in dollars and thousands of shares follow: 

At October 29, 2023, there was $93 of total unrecognized 
compensation cost from share-based compensation 
arrangements. This compensation is expected to be recognized 
over a weighted-average period of approximately 1.5 years. 

Stock Options 
The fair value of each stock option award was estimated on the 
date of grant using a binomial lattice option valuation model. The 
assumptions used for the binomial lattice model to determine the 
fair value of options follow: 

Risk-free interest rate* 
Expected dividends 
Volatility* 
Expected term (in years)* 

*    Weighted-averages 

           2023                    2022                   2021          
1.27% 
1.2% 
32.0% 
5.1  

2.68% 
1.1% 
33.0% 
5.1  

.47% 
1.2% 
31.0% 
5.5  

The risk-free rates are based on U.S. Treasury security yields at the 
time of grant. Expected volatilities are based on implied volatilities 
from traded call options on our stock. We use historical data to 
estimate option exercise behavior representing the weighted-
average period that options granted are expected to be 
outstanding. 

The activity for outstanding stock options at October 29, 2023, and 
changes during 2023 follow: 

Service-based 
Nonvested at beginning of year  
Granted  
Vested  
Forfeited 
Nonvested at end of year  
Performance/service based 
Nonvested at beginning of year  
Granted  
Vested  
Performance change  
Nonvested at end of year  
* Weighted-averages 

  Shares 

 Grant-Date  
  Fair Value*  

404    $ 
126   
(211) 
(9) 
310   

251.42   
   428.35   
211.03   
333.29   
   348.82   

143      
41   
(130) 
65   
119   

227.70   
   424.93   
160.81   
160.81   
331.78   

23. OTHER COMPREHENSIVE INCOME ITEMS 

The after-tax components of accumulated other comprehensive 
income (loss) follow:  

Retirement benefits adjustment 
Cumulative translation adjustment 
Unrealized gain (loss) on derivatives 
Unrealized gain (loss) on debt securities   
Total accumulated other 

 $ 

22023   
 (845)  $ 
 (2,151) 
 (8) 
 (110) 

22021 

22022   
 (389)  $   (1,034) 
 (1,478) 
 (42) 
 15  

 (2,594) 
 21  
 (94) 

comprehensive income (loss) 

 $ 

 (3,114)  $  (3,056)  $  (2,539) 

  Exercise 
  Shares    Price* 
 (millions)  (per share)   

Outstanding at 

beginning of year  

Granted  
Exercised  
Outstanding at end of year   
Exercisable at end of year  

*    Weighted-averages 

 2.0  $ 

153.11   
.2       438.44   
(.5)    
118.54   
 1.7      190.08   
144.71   
1.3      

  Remaining   Aggregate  
 Contractual  Intrinsic   

Term 
(years) 

  Value 
   (millions)   

4.62   $ 
3.66      

302.3   
292.3   

The amounts related to stock options were as follows in millions of 
dollars unless otherwise noted: 

22023 

22022 

22021 

Weighted-average grant date 

fair value (per share) 

  $
Intrinsic value of options exercised    
Cash received from exercises 
Tax benefit from exercises 

136.46    $
153     
60     
34     

89.20    $
169     
63     
39     

62.73   
318   
148   
71   

71 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
  
 
 
 
 
  
  
  
  
  
  
  
  
 
  
 
 
  
 
 
 
  
 
 
  
 
 
 
 
 
The following tables reflect amounts recorded in other 
comprehensive income (loss), as well as reclassifications out of 
other comprehensive income (loss). 

Tax 

  After 
 (Expense)   Tax 

  Before   
  Tax 
  Amount    Credit 

  Amount  

2023 
Cumulative translation adjustment 
Unrealized translation gain (loss) 
Reclassification of realized (gain) loss to:  

 $ 

SA&G expenses 
Other operating expenses  

Net unrealized translation gain (loss) 

Unrealized gain (loss) on derivatives: 

Unrealized hedging gain (loss)  
Reclassification of realized (gain) loss to:  

Interest rate contracts – Interest 

expense  

Net unrealized gain (loss) on derivatives      

Unrealized gain (loss) on debt securities: 

Unrealized holding gain (loss) 
Net unrealized gain (loss) on debt 

securities  

Retirement benefits adjustment: 
Net actuarial gain (loss) 
Reclassification to Other operating 

expenses through amortization of: 

 424  $ 

 (2) $  422  

 10  
 11  
 445  

 10  
 11  
 443  

 (2) 

 25   

 (5)   

 20  

 (62)    
 (37)    

 13    
 8    

 (49) 
 (29) 

 (20)    

 4    

 (16) 

 (20)    

 4     

 (16) 

 (589)    

 139    

 (450) 

Actuarial (gain) loss  
Prior service (credit) cost  
Settlements 

 (81)    
 37     
 37     

 20    
 (9)   
 (10)   

 (61) 
 28  
 27  

Net unrealized gain (loss) on retirement 

benefits adjustment 

Total other comprehensive income (loss) 

 (596)    
 $   (208) $ 

 140    
 (456) 
 150   $  (58) 

Tax 

  After 
 (Expense)   Tax 

  Before   
  Tax 
 Amount   Credit 

  Amount  

 $  (1,105) $ 

 (11) $   (1,116) 

 89  

 (19)    

 70  

 (9)    
 80     

 2     
 (17)    

 (7) 
 63  

 (140)    

 30     

 (110) 

 1     

 1  

 (139)    

 30     

 (109) 

 1,192     
 (517) 

 (298)    
 124     

 894  
 (393) 

2022 
Cumulative translation adjustment 
Unrealized gain (loss) on derivatives: 

Unrealized hedging gain (loss)  
Reclassification of realized (gain) loss to: 

Interest rate contracts – Interest 

expense  

Net unrealized gain (loss) on derivatives      

Unrealized gain (loss) on debt securities: 

Unrealized holding gain (loss) 
Reclassification of realized (gain) loss – 

Other income 

Net unrealized gain (loss) on debt 

securities  

Retirement benefits adjustment: 
Net actuarial gain (loss) 
Prior service credit (cost) 
Reclassification to Other operating 

expenses through amortization of: 

Actuarial (gain) loss  
Prior service (credit) cost  
Settlements/curtailment 

 116     
 30     
 45     

 (29)    
 (7)    
 (11)    

 87  
 23  
 34  

Net unrealized gain (loss) on retirement 

benefits adjustment 

Total other comprehensive income (loss) 

 866     
 $  (298) $ 

 (221)    
 (219) $ 

 645  
 (517) 

Tax 

  After 
 (Expense)   Tax 

  Before   
  Tax 
 Amount   Credit 

  Amount  

 $

 112   

 $

 112  

 6  
 118   

 6  
 118  

 8  $

 (2)   

 6  

 13    
 21    

 (3)   
 (5)   

 10  
 16  

 (21)   

 3    

 (18) 

 (21)   

 3    

 (18) 

    3,492    

 (845)     2,647  

2021 
Cumulative translation adjustment: 
Unrealized translation gain (loss) 
Reclassification of realized (gain) loss to: 

Equity in (income) loss of 

unconsolidated affiliates 

Net unrealized translation gain (loss) 

Unrealized gain (loss) on derivatives: 

Unrealized hedging gain (loss)  
Reclassification of realized (gain) loss to:  

Interest rate contracts – Interest 

expense  

Net unrealized gain (loss) on derivatives      

Unrealized gain (loss) on debt securities: 

Unrealized holding gain (loss) 
Net unrealized gain (loss) on debt 

securities  

Retirement benefits adjustment: 
Net actuarial gain (loss) 
Reclassification to Other operating 

expenses through amortization of: 

Actuarial (gain) loss  
Prior service (credit) cost  
Settlements 

 283    
 8    
 22    

 (69)   
 (2)   
 (5)   

 214  
 6  
 17  

Net unrealized gain (loss) on retirement 

benefits adjustment  

Total other comprehensive income (loss)  

    3,805    
 $  3,923  $

 (921)    2,884  
 (923) $ 3,000  

72 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
   
 
 
 
 
 
   
   
 
 
 
 
 
   
 
 
 
 
 
   
   
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
   
 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
   
   
 
 
 
 
 
 
 
   
   
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
  
  
 
 
 
 
   
 
 
 
   
 
 
 
 
   
   
 
 
 
 
 
 
 
 
   
   
   
 
 
 
24. LEASES 

We are both a lessee and a lessor. We lease for our own use 
warehouse facilities, office space, production equipment, 
information technology equipment, and vehicles. The financial 
services operations lease equipment produced or sold by us and a 
limited amount of other equipment to retail customers. We 
determine if an arrangement is or contains a lease at the contract 
inception. 

Lessee 
The amounts of the lease liability and right of use asset are 
determined at lease commencement and are based on the present 
value of the lease payments over the lease term. The lease 
payments are discounted using our incremental borrowing rate 
since the rate implicit in the lease is not readily determinable. We 
determine the incremental borrowing rate for each lease based on 
the lease term and the economic environment of the country 
where the asset will be used, adjusted as if the borrowings were 
collateralized. Leases with contractual periods greater than one 
year and that do not meet the finance lease criteria are classified as 
operating leases. 

We have elected to combine lease and nonlease components, such 
as maintenance and utilities costs included in a lease contract, for 
all asset classes. Leases with an initial term of one year or less are 
expensed on a straight-line basis over the lease term and recorded 
in short-term lease expense. Variable lease expense includes 
warehouse facilities leases with payments based on utilization 
exceeding contractual minimum amounts and leases with 
payments indexed to inflation when the index changes after lease 
commencement. 

The lease expense by type consisted of the following: 

Operating lease expense 
Short-term lease expense 
Variable lease expense 
Finance lease: 

Depreciation expense 
Interest on lease liabilities 

Total lease expense 

22023 

22022 

22021 

  $ 

 129    $ 
 49   
 80   

 114    $ 
 55   
 74   

 116   
 29   
 53   

 28   
 2   
 288    $ 

 26   
 1   
 270    $ 

 26   
 1   
 225   

  $ 

Operating and finance lease right of use assets and lease liabilities 
follow: 

Operating leases: 
Other assets 
Accounts payable and accrued expenses 

22023 

22022 

 $ 

 283    $ 
 281   

 299   
 302   

Finance leases: 

Property and equipment — net 

 $ 

 66    $ 

 49   

Short-term borrowings 
Long-term borrowings 

Total finance lease liabilities 

 $ 

 25   
 49   
 74    $ 

 21   
 30   
 51   

The weighted-average remaining lease terms in years and discount 
rates follows: 

Weighted-average remaining lease terms: 

Operating leases 
Finance leases 

Weighted-average discount rates: 

Operating leases 
Finance leases 

22023 

22022 

 7   
 4   

 7   
 3   

3.1%   
3.6%   

2.4%   
1.9%   

Lease payment amounts in each of the next five years at 
October 29, 2023 follow: 

Due in: 
2024 
2025 
2026 
2027 
2028 
Later years 

 Operating  
  Leases 
 $ 

Finance   
Leases 

103    $ 
 71   
 36   
 24   
 22   
 45   
 301   
 20   
 281    $ 

 27   
 22   
 14   
 8   
 3   
 6   
 80   
 6   
 74   

Total lease payments 
Less: imputed interest 
Total lease liabilities 

 $ 

Cash paid for amounts included in the measurement of lease 
liabilities follows: 

Operating cash flows for operating leases 
Operating cash flows for finance leases 
Financing cash flows for finance leases 

    22023      22022      22021 
  $

 132    $
 2     
 31     

 127    $  104   
 1   
 25   

 1     
 28     

Right of use assets obtained in exchange for lease liabilities follow: 

Operating leases 
Finance leases 

22023 

22022 

 $ 

 97    $ 
 54   

 135   
 17   

Lessor 
We lease equipment manufactured by us through John Deere 
Financial. Sales-type and direct financing leases are reported in 
“Financing receivables (cid:3013) net.” Operating leases are reported in 
“Equipment on operating leases (cid:3013) net.” 

At the end of the majority of leases, the lessee has the option to 
purchase the underlying equipment for the contractual residual 
value or return it to the dealer. If the equipment is returned to the 
dealer, the dealer also has the option to purchase the equipment or 
return it to us for remarketing.  

We estimate the residual values for operating leases at lease 
inception based on several factors, including lease term, expected 
hours of usage, historical wholesale sale prices, return experience, 
intended use of the equipment, market dynamics and trends, and 
dealer residual guarantees. We review residual value estimates 
during the lease term and test the carrying value of our operating 
lease assets for impairment when events or circumstances 
necessitate. The depreciation is adjusted on a straight-line basis 
over the remaining lease term if residual value estimates change. 
Lease agreements include usage limits and specifications on 

73 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
    
 
   
 
  
 
 
    
 
   
 
    
 
   
 
 
    
 
   
 
  
 
  
 
 
 
 
  
 
 
 
  
 
 
 
 
 
  
 
  
 
 
  
 
 
 
 
 
  
 
 
 
 
 
  
 
  
 
 
 
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
 
 
   
   
 
 
 
  
 
 
 
  
 
 
machine condition, which allow us to assess lessees for excess use 
or damages to the underlying equipment. 

We have elected to combine lease and nonlease components. The 
nonlease components relate to preventative maintenance and 
extended warranty agreements financed by the retail customer. We 
have also elected to report consideration related to sales and value 
added taxes net of the related tax expense. Property taxes on 
leased assets are recorded on a gross basis in “Finance and interest 
income” and “Other operating expenses.” Variable lease revenues 
relate to property taxes on leased assets in certain markets and late 
fees. 

Lease revenues earned by us follow: 

The cost of equipment on operating leases by market follow: 

Agriculture and turf 
Construction and forestry 

Total 

Less: accumulated depreciation 

Equipment on operating leases - net 

Operating lease residual values 
First-loss residual value guarantees 

  $ 

  $ 
  $ 

22023 
 7,168    $ 
 1,212   
 8,380   
 (1,463) 
 6,917    $ 
 4,864    $ 
 1,188   

22022 
 6,912   
 1,342   
 8,254   
 (1,631) 
 6,623   
 4,640   
 1,025   

The equipment is depreciated on a straight-line basis over the term 
of the lease. The corresponding depreciation expense was $853 in 
2023, $827 in 2022, and $983 in 2021. 

22021 

Lease payments for operating leases are scheduled as follows: 

Sales-type and direct finance lease revenues  $
Operating lease revenues 
Variable lease revenues 
Total lease revenues 

   22023 

   22022    
 154   $
 1,318    
 26    

 165   $
 1,312    
 16    

 145   
 1,423   
 30   
 $  1,493   $  1,498   $  1,598   

At the time of accepting a lease that qualifies as a sales-type or 
direct financing lease, we record the gross amount of lease 
payments receivable, estimated residual value of the leased 
equipment, and unearned finance income. The unearned finance 
income is recognized as revenue over the lease term using the 
interest method. 

Sales-type and direct financing lease receivables by market follow: 

Agriculture and turf 
Construction and forestry 

Total 

Guaranteed residual values 
Unguaranteed residual values 
Less: unearned finance income 
Financing lease receivables 

 $ 

2023 
 1,078    $ 
 1,048   
 2,126   
 723   
 57   
 (350) 
 $   2,556    $ 

2022 
 1,118   
 1,167   
 2,285   
 491   
 56   
 (285) 
 2,547   

Scheduled payments, including guaranteed residual values, on 
sales-type and direct financing lease receivables at October 29, 
2023 follow: 

Due in: 
2024 
2025 
2026 
2027 
2028 
Later years 
Total 

22023 
 1,453   
642   
378   
214   
142   
20   
 2,849  

 $ 

 $ 

Lease payments from operating leases are recorded as income on a 
straight-line method over the lease terms. Operating lease assets 
are recorded at cost and depreciated to their estimated residual 
value on a straight-line method over the terms of the leases. 

74 

Due in: 
2024 
2025 
2026 
2027 
2028 
Later years 
Total 

22023 
 1,044   
797   
490   
258   
65   
10   
 2,664  

  $ 

  $ 

25. 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, we use various methods including market and 
income approaches. We utilize 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. 

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 us for similar financing 
receivables. The fair values of the remaining financing receivables 
approximated the carrying amounts. 

Fair values of long-term borrowings and short-term securitization 
borrowings were based on current market quotes for identical or 
similar borrowings and credit risk, or on the discounted values of 
their related cash flows at current market interest rates. 

 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
 
 
 
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
   
   
 
 
The fair values of financial instruments that do not approximate 
the carrying values at October 29, 2023 and October 30, 2022 
follow: 

22023 

22022 

  Carrying         Fair         Carrying         Fair        
    Value 

    Value* 

    Value* 

    Value 

Financing receivables – net    $  43,673    $  42,777    $ 36,634    $  35,526   
Financing receivables 
securitized – net 

5,936     

7,056     

7,335     

5,698   

Short-term securitization 

borrowings 

    6,995     

6,921     

5,711     

5,577   

Long-term borrowings due 

within one year** 

Long-term borrowings** 

8,331     

7,322   
    38,428      36,873      33,566      31,852   

7,466     

8,156     

*    Fair value measurements above were Level 3 for all financing receivables and 

Level 2 for all borrowings. 

**  Values exclude finance lease liabilities that are presented as borrowings (see 

Note 24). 

Assets and liabilities measured at October 29, 2023 and October 30, 
2022 at fair value on a recurring basis follow, excluding our cash 
equivalents, which were carried at a cost that approximates fair 
value and consisted of money market funds and time deposits:  

        2023           2022      

Level 1: 
Marketable securities 

International equity securities 
International mutual funds securities 
U.S. equity fund 
U.S. fixed income fund 
U.S. government debt securities 
Total Level 1 marketable securities 

   $ 

3     $ 

3   

101   
86   
32   
78   
  300   

70   

62   
135   

Level 2: 
Marketable securities 

Corporate debt securities 
International debt securities 
Mortgage-backed securities* 
Municipal debt securities 
U.S. government debt securities 
Total Level 2 marketable securities 

Other assets - Derivatives 
Accounts payable and accrued expenses - 

Derivatives 

Level 3: 
Accounts payable and accrued expenses – 

Deferred consideration 

*    Primarily issued by U.S. government sponsored enterprises. 

   244   
1   
185   
75   
141   
   646   
  292   

  200   
60   
155   
63   
121   
  599   
373   

  1,130   

1,231   

Fair value, nonrecurring level 3 measurements from impairments at 
October 29, 2023 and October 30, 2022 follow: 

   Fair Value 
    2023      2022 1     2023      2022      2021   

Losses 

Inventories 
Property and equipment – net 
Other intangible assets – net 
Other assets 

  $ 

 19    
 15     

  $  19    

 41    $  44  
 28     

 6  

1 Related to assessments on the Russian operations, performed at May 1, 2022 and 

updated on July 31, 2022 and October 30, 2022. 

The following is a description of the valuation methodologies we 
use to measure certain financial instruments on the balance sheets 
at fair value. For more information on asset impairments, see 
Note 4. 

Marketable securities – The portfolio of investments is valued on a 
market approach (matrix pricing model) in which all significant 
inputs are observable or can be derived from or corroborated by 
observable market data such as interest rates, yield curves, 
volatilities, credit risk, and prepayment speeds. Funds are valued 
using the fund’s net asset value, based on the fair value of the 
underlying securities.  

Derivatives – Our derivative financial instruments consist of 
interest rate contracts (swaps), foreign currency exchange 
contracts (futures, forwards and swaps), and cross-currency 
interest rate contracts (swaps). The portfolio is valued based on an 
income approach (discounted cash flow) using market observable 
inputs, including swap curves and both forward and spot exchange 
rates for currencies. 

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 (see Note 11). 

Inventories – The 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, or quoted prices when available. 

Other intangible assets – net – In 2022, we considered external 
valuations based on our probability weighted cash flow analysis. 

186   

236   

Other assets – In 2021, the impairments were measured at the fair 
value of a right of use operating lease asset. 

75 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
   
 
    
    
    
   
   
   
    
 
    
   
    
   
   
 
  
26. DERIVATIVE INSTRUMENTS 

Fair values of our derivative instruments and the associated 
notional amounts at the end of 2023 and 2022 were as follows. 
Assets are recorded in “Other assets,” while liabilities are recorded 
in “Accounts payable and accrued expenses.” 

Fair Value 

  Notional 

  Assets 

  Liabilities   

2023 
Cash flow hedges: 

Interest rate contracts 

   $ 

1,500    $

45     

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

Fair Value Hedges 
Interest rate contracts – Interest expense  

  $  (542)  $(1,144)  $ (236) 

      2023        2022        2021    

Cash Flow Hedges 
Recognized in OCI: 
Interest rate contracts – OCI (pretax) 

  $ 

25    $ 89    $

8   

Reclassified from OCI: 
Interest rate contracts – Interest expense 

   62   

9   

(13) 

12,691     

  $

970   

13,853     
8,117   

169     
75   

176   

3   

98   
54   

8   

Not Designated as Hedges 
Interest rate contracts – Net sales  
Interest rate contracts – Interest expense 
Foreign exchange contracts – Net sales  
Foreign exchange contracts – Cost of sales  
Foreign exchange contracts – Other 

operating expenses 

Total not designated  

   $ 

1    $
40     
(6)   
8   

53    $
81     
(6)   
(64) 

13   
14   

(101) 

   100   

  402   

  (262) 
143    $ 466    $ (336) 

  $ 

Fair value hedges: 

Interest rate contracts 

Not designated as hedging 

instruments: 
Interest rate contracts 
Foreign exchange contracts 
Cross-currency interest rate 

contracts 

2022 
Cash flow hedges: 

Interest rate contracts 

   $ 

1,950    $

87     

Fair value hedges: 

Interest rate contracts 

Not designated as hedging 

instruments: 
Interest rate contracts 
Foreign exchange contracts 
Cross-currency interest rate 

contracts 

10,112       

  $

1,004   

10,568     
8,185   

212     
66   

260   

8   

107   
118   

2   

The amounts recorded, at October 29, 2023 and October 30, 2022, 
in the consolidated balance sheets related to borrowings designated 
in fair value hedging relationships were as follows. Fair value 
hedging adjustments are included in the carrying amount of the 
hedged item.  

  Discontinued Hedging 
Relationships 

Active Hedging 
Relationships 
  Carrying    Cumulative  
  Cumulative  
 Amount of   Fair Value    Amount of    Fair Value   
  Hedging   
  Hedged 
Item 

  Hedged Item   Amount 

  Hedging 
  Amount 

Formerly 

Carrying 

2023 
Short-term borrowings   
Long-term borrowings   $ 11,660    $
2022 
Short-term borrowings   
  $
Long-term borrowings   $  9,060   $  (1,006)   

  $
(976)   

1,814    $
7,144     

15   
(288) 

 2,515   $
 5,520    

 15  
 (19) 

The amount of gain recorded in OCI at October 29, 2023 that is 
expected to be reclassified to “Interest expense” or “Other operating 
expenses” in the next twelve months if interest rates or exchange 
rates remain unchanged is $31 after-tax. There were no gains or 
losses reclassified from OCI to earnings based on the probability that 
the original forecasted transaction would not occur. 

Counterparty Risk and Collateral 
Derivative instruments are subject to significant concentrations of 
credit risk to the banking sector. We manage 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 us 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 our derivative agreements contain credit support 
provisions that may require us to post collateral based on the size 
of the net liability positions and credit ratings. The aggregate fair 
value of all derivatives with credit-risk-related contingent features 
that were in a net liability position at October 29, 2023 and 
October 30, 2022, was $1.1 billion and $1.1 billion, respectively. In 
accordance with the limits established in these agreements, we 
posted $659 of cash collateral at October 29, 2023 and $701 at 
October 30, 2022. In addition, we paid $8 of collateral that was 
outstanding at both October 29, 2023 and October 30, 2022 to 
participate in an international futures market to hedge currency 
exposure, not included in the table below. 

76 

 
 
 
 
 
 
 
 
   
 
   
 
   
 
 
           
      
      
   
   
  
     
     
     
 
     
     
     
 
   
  
     
     
     
 
     
     
     
 
   
   
   
 
     
 
 
  
   
 
   
 
   
 
 
           
      
      
   
   
  
     
     
     
 
     
     
     
 
   
  
     
     
     
 
     
     
     
 
   
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
     
     
     
 
   
  
     
   
     
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
 
 
  
 
 
 
 
Identifiable assets assigned to the operating segments are those 
the units actively manage, consisting of trade receivables, 
inventories, property and equipment, intangible assets, and certain 
other assets. Corporate assets are managed collectively, including 
cash and cash equivalents, retirement benefit net assets, goodwill, 
and deferred income tax assets. 

Information relating to operations by operating segment follows 
for the years ended October 29, 2023, October 30, 2022, and 
October 31, 2021.  

  2023 

   2022 

   2021 

OPERATING SEGMENTS 
Net sales and revenues 
Unaffiliated customers: 
Production & precision ag net sales 
Small ag & turf net sales 
Construction & forestry net sales 
Financial services revenues 
Other revenues* 

 $  26,790  $ 22,002   $  16,509  
11,860  
   11,368  
   3,548  
739  
 $   61,251  $  52,577  $  44,024 
*    Other revenues are primarily the production and precision ag, small ag and turf, 
and construction and forestry revenues for finance and interest income and 
other income. 

 13,980   
      14,795  
 4,721  
 965  

13,381    
  12,534   
  3,625   
1,035   

Total 

Operating profit 
Production & precision ag 
Small ag & turf 
Construction & forestry  
Financial services*  

Total operating profit* 

Interest income  
Interest expense  
Foreign exchange gain (loss) from 
equipment operations’ financing 
activities  

Pension and OPEB benefit (cost), 

excluding service cost component 

Corporate expenses – net  
Income taxes  
Total  
Net income  
Less: Net income (loss) attributable to 

noncontrolling interests  
Net income attributable to 

  $  6,996    $  4,386    $  3,334  
  2,045  
    2,472   
  1,489  
  2,695   
1,144  
795   
  8,012  
 12,958   
82  
559   
(368)
(411) 

1,949   
  2,014   
1,159   
  9,508   
159   
(390) 

(114) 

(103) 

(45)

286   
(252) 
  (2,871) 
 (2,803) 
  10,155   

218   
(255) 
 (2,007) 
  (2,378) 
  7,130   

183  
(241)
  (1,658)
  (2,047)
  5,965  

(11) 

(1) 

2  

Deere & Company  

  $ 10,166    $  7,131    $  5,963  
*    Operating profit of the financial services business segment includes the effect of 

its interest expense and foreign exchange gains or losses. 

Derivatives are recorded without offsetting for netting 
arrangements or collateral. The impact on the derivative assets and 
liabilities related to netting arrangements and collateral at 
October 29, 2023 and October 30, 2022 follows: 

 Gross Amounts  
    Recognized 

Netting 

Net 

   Arrangements     Collateral    Amount 

2023 
Assets 
Liabilities 
2022 
Assets 
Liabilities 

  $ 

  $ 

27. SEGMENT DATA 

292    $ 
1,130   

373    $ 
1,231   

(152)   
(152)  $ 

  $ 

(659) 

(179)  $ 
(179)   

(54)  $ 
(701) 

140   
319   

140   
351   

Our operations are presently organized and reported in four 
business segments. This presentation is consistent with how the 
chief operating decision maker (the CEO) assesses the 
performance of the segments and makes decisions about resource 
allocations.  

The PPA segment defines, develops, and delivers global equipment 
and technology solutions to unlock customer value for production-
scale growers of large grains, small grains, cotton, and sugarcane. 
The main products include large and certain mid-size tractors, 
combines, cotton pickers, sugarcane harvesters and loaders, and 
soil preparation, seeding, application, and crop care equipment. 

The SAT segment defines, develops, and delivers global equipment 
and technology solutions to unlock customer value for dairy and 
livestock producers, high-value crop producers, and turf and utility 
customers. The segment’s primary products include certain mid-
size, utility, and compact utility tractors, as well as hay and forage 
equipment, riding and commercial lawn equipment, golf course 
equipment, and utility vehicles.  

The CF segment defines, develops, and delivers a broad range of 
machines and technology solutions organized along the 
earthmoving, forestry, and roadbuilding production systems. The 
segment’s primary products include crawler dozers and loaders, 
four-wheel-drive loaders, excavators, skid-steer loaders, milling 
machines, and log harvesters.  

The products and services produced by the segments above are 
marketed through independent retail dealer networks and major 
retail outlets. For roadbuilding products in certain markets outside 
the U.S. and Canada, the products are sold through company-
owned sales and service subsidiaries. 

The financial services segment finances sales and leases by John 
Deere dealers of new and used production and precision 
agriculture equipment, small agriculture and turf equipment, and 
construction and forestry equipment. In addition, the financial 
services segment provides wholesale financing to dealers of the 
foregoing equipment, finances retail revolving charge accounts, 
and offers extended equipment warranties. 

Because of integrated manufacturing operations and common 
administrative and marketing support, a substantial number of 
allocations must be made to determine operating segment data.  

77 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
                  
                
                 
 
 
 
 
 
  
    
    
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
                
                
               
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATING SEGMENTS 
Interest income* 
Production & precision ag 
Small ag & turf 
Construction & forestry 
Financial services 
Corporate 
Intercompany 
Total 

   2023 

   2022 

   2021 

28. SUBSEQUENT EVENT 

On December 6, 2023, a quarterly dividend of $1.47 per share was 
declared at the Board of Directors meeting, payable on February 8, 
2024 to stockholders of record on December 29, 2023. 

 $

 $

21  
22    $
29    $
21  
24     
35     
10  
8   
13   
1,999  
  2,245   
3,731   
82  
159   
559   
(1,008) 
(279)
(431) 
3,359    $ 2,027    $ 1,854  

*    Does not include finance rental income for equipment on operating leases. 

Interest expense 
Production & precision ag 
Small ag & turf 
Construction & forestry 
Financial services 
Corporate 
Intercompany 
Total 

 $

282    $
236     
169   
2,362   
411   
 (1,007)  

 84 
 87 
 46 
 687 
 368 
 (279)
 $  2,453   $  1,062   $  993 

 122   $
 105    
 72  
 799  
 390  
 (426)  

Depreciation* and amortization expense   
Production & precision ag 
 $
Small ag & turf 
Construction & forestry 
Financial services 
Intercompany 
Total 

 581  $
 241   
 301 
 1,016 
 (135) 

 523  $  495 
 245 
 236 
 303 
 282 
 1,140 
 1,050 
 (133)
 (196) 
 $  2,004   $  1,895   $  2,050 

*    Includes depreciation for equipment on operating leases.  

Identifiable operating assets 
Production & precision ag 
Small ag & turf 
Construction & forestry 
Financial services  
Corporate 
Total  

Capital additions 
Production & precision ag 
Small ag & turf 
Construction & forestry 
Financial services  

Total  

 $  8,734   $  8,414   $  7,021 
 3,959 
   6,457 
  51,624 
  15,053 
 $ 104,087   $ 90,030   $  84,114 

 4,451    
 6,754  
  58,864  
 11,547  

 4,348    
 7,139  
 70,732  
 13,134  

 $

 $

896    $
386     
311   
4   
1,597    $

649    $
329     
217   
2   
1,197    $

458  
253  
183  
3  
897  

78 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
                
                
               
  
   
 
 
   
 
   
 
 
   
 
 
 
  
                 
                 
               
  
   
 
 
   
 
 
   
 
 
   
 
 
 
  
  
  
                 
                 
               
  
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
                
                
               
  
   
 
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
  
                   
                 
               
  
   
 
 
   
 
 
 
  
 
 
 
 
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 

To the stockholders and the Board of Directors of Deere & Company: 

Opinion on the Financial Statements 
We have audited the accompanying consolidated balance sheets of Deere & Company and subsidiaries (the "Company") as of 
October 29, 2023 and October 30, 2022, the related statements of consolidated income, consolidated comprehensive income, 
changes in consolidated stockholders’ equity and consolidated cash flows for each of the three years in the period ended October 29, 
2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present 
fairly, in all material respects, the financial position of the Company as of October 29, 2023 and October 30, 2022, and the results of its 
operations and its cash flows for each of the three years in the period ended October 29, 2023, in conformity with accounting 
principles generally accepted in the United States of America. 
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), 
the Company's internal control over financial reporting as of October 29, 2023, based on criteria established in Internal Control — 
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated 
December 15, 2023, expressed an unqualified opinion on the Company's internal control over financial reporting. 
Basis for Opinion  
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the 
Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be 
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations 
of the Securities and Exchange Commission and the PCAOB. 
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit 
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or 
fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether 
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, 
evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting 
principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial 
statements. We believe that our audits provide a reasonable basis for our opinion. 
Critical Audit Matters  
The critical audit matters communicated below are matters arising from the current(cid:4136)period audit of the financial statements that were 
communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the 
financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit 
matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical 
audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. 
Sales Incentives — Refer to Note 2 to the financial statements 
Critical Audit Matter Description 
The Company provides retail discount or financing sales incentives programs to dealers that are due when the dealer sells the equipment to 
a retail customer. 
The estimated cost of these programs is based on: 

• 
• 
• 
• 

historical data, 
announced and expected incentive programs, 
field inventory levels, and 
forecasted sales volumes. 

At the time a sale is recognized, the Company records an estimate of the sales incentive costs. The final cost is determined at the time of 
the retail sale. 
There are numerous programs available at any time, and new programs may be announced after the Company records the equipment sale 
to the dealer. Changes in the mix and types of sales incentive programs affect these estimates, which are reviewed quarterly. Actual cost 
differences from the original cost estimate are recognized in “Net sales.” A key assumption is the predictive value of the historical 
percentage of retail sales incentive costs to retail sales.  

We identified the United States and Canada sales incentive accrual as a critical audit matter because estimating sales incentive costs 
requires significant judgment by management and changes in historical percentage of sales incentive costs to retail sales by dealers could 
have a material impact on the sales incentive accrual. Auditing management’s assumptions about the predictive nature of historical sales 
incentive costs involves a high degree of auditor judgment and an increased extent of effort to evaluate the reasonableness of 
management’s estimates.  

79 

 
 
 
How the Critical Audit Matter Was Addressed in the Audit 
Our audit procedures related to testing management’s assumption that historical sales incentive costs are predictive of future 
incentive costs included the following, among others: 

•  We tested the effectiveness of management’s controls over the assumptions used to estimate the sales incentive accrual. 
•  We evaluated management’s ability to accurately forecast future incentive costs by performing a retrospective review that 

involved comparing actual incentive costs to management’s historical forecasts. 

•  We tested the completeness of the population used in the accrual calculation by inspecting incentive program 

communications to dealers to ensure programs offered were appropriately included in the calculation. We tested the 
accuracy of sales incentives transactions by verifying amounts settled with dealers. 

•  We evaluated the reasonableness of management’s assumption that historical sales incentive costs are predictive of future 

incentive costs by: 

o  Considering the impact of changes in the current economic conditions and competitive environment. 
o  Comparing historical and current sales incentive data for eligible products in the following manner: 

Type and number of programs 

(cid:131) 
(cid:131)  Geography 
(cid:131) 

Program size and duration 

Allowance for Credit Losses – Refer to Notes 2 and 11 to the financial statements  
Critical Audit Matter Description 
The allowance for credit losses is an estimate of the credit losses expected over the life of the Company’s receivable portfolio. The 
allowance is measured on a collective basis for receivables with similar risk characteristics. Receivables that do not share risk 
characteristics are evaluated on an individual basis. Risk characteristics include: 

finance product category, 

• 
•  market, 
• 
• 
• 

geography, 
credit risk, and 
remaining balance. 

The Company utilizes loss forecast models to estimate expected credit losses. Transition matrix models are used for large and complex 
retail customer receivable pools. These models are used for more than 90 percent of retail customer receivables. Historical portfolio 
performance and current delinquency levels are used to forecast future defaults. Estimated recovery rates are applied to the estimated 
default balance to calculate the expected credit losses. 
The model output is adjusted for forecasted economic conditions, which may include the following economic indicators: 

• 
• 
• 
• 

commodity prices, 
industry equipment sales, 
unemployment rates, and 
housing starts. 

Management reviews each model’s output quarterly, and qualitative adjustments are incorporated as necessary. 
We identified the allowance for credit losses estimated for the Company’s United States and Canada receivable portfolios by the 
transition matrix models and related reasonable and supportable forecasts and qualitative adjustments as a critical audit matter 
because determining the appropriate methodology and assumptions used in the estimate requires significant judgment by 
management. Given the subjective nature and judgment applied by management to determine the allowance for credit losses, auditing 
the methodology and assumptions requires a high degree of auditor judgment and an increased extent of effort, including the need to 
involve credit specialists. 
How the Critical Audit Matter Was Addressed in the Audit 

Our audit procedures to test the allowance for credit losses estimated for the Company’s United States and Canada receivable 
portfolios by the transition matrix models and related reasonable and supportable forecasts and qualitative adjustments included 
the following, among others: 

(cid:131)  We tested the effectiveness of management’s controls over the methodology, data and assumptions used to estimate the 

allowance for credit losses. 

(cid:131)  We tested the accuracy and evaluated the relevance of the underlying historical data used in the Company’s transition 

matrix models.  

80 

 
(cid:131)  With the assistance of our credit specialists, we evaluated the reasonableness and accuracy of the transition matrix models 
used to estimate the allowance for credit losses, including model assumptions and the selection and application of relevant 
risk characteristics and use of qualitative adjustments. 

(cid:131)  We evaluated qualitative adjustments to the model estimate. Our evaluation included: 

o  Comparison of qualitative factors used by the Company to source data provided by the Company and/or to 

externally available data. 

o  Consideration and evaluation of contradictory evidence. 

(cid:131)  We evaluated management’s ability to accurately forecast credit losses by performing a retrospective review, which 

involved comparing actual credit losses to historical estimates.  

/s/ DELOITTE & TOUCHE LLP 
Chicago, Illinois 
December 15, 2023 
We have served as the Company’s auditor since 1910. 

81 

 
 
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 

To the stockholders and the Board of Directors of Deere & Company: 

Opinion on Internal Control over Financial Reporting 
We have audited the internal control over financial reporting of Deere & Company and subsidiaries (the “Company”) as of October 29, 
2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring 
Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal 
control over financial reporting as of October 29, 2023, based on criteria established in Internal Control — Integrated Framework (2013) 
issued by COSO. 

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), 
the consolidated financial statements as of and for the year ended October 29, 2023 of the Company and our report dated December 
15, 2023, expressed an unqualified opinion on those financial statements.  

Basis for Opinion  
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of 
the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial 
Reporting appearing under Item 9A. Our responsibility is to express an opinion on the Company’s internal control over financial 
reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with 
respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities 
and Exchange Commission and the PCAOB. 

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit 
to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material 
respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material 
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and 
performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable 
basis for our opinion. 

Definition and Limitations of Internal Control over Financial Reporting 
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of 
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting 
principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the 
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the 
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in 
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in 
accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding 
prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect 
on the financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections 
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in 
conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

/s/ DELOITTE & TOUCHE LLP 
Chicago, Illinois 

December 15, 2023 

82 

 
 
3.1 

3.2 

3.3 

4.1 

4.2 

4.3 

4.4 

4.5 

4.6 

Index to Exhibits 

Certificate of Incorporation (Exhibit 3.1 to Form 10-Q of registrant for the quarter ended July 28, 2019, Securities and 
Exchange Commission File Number 1-4121*) 

Certificate of Designation Preferences and Rights of Series A Participating Preferred Stock (Exhibit 3.2 to Form 10-K of 
registrant for the year ended October 31, 1998, Securities and Exchange Commission File Number 1-4121*) 

Bylaws, as amended (Exhibit 3.2 to Form 10-Q of registrant for the quarter ended July 30, 2023, Securities and Exchange 
Commission File Number 1-4121*) 

Form of common stock certificate (Exhibit 4.6 to Form 10-K of registrant for the year ended October 31, 1998, Securities 
and Exchange Commission File Number 1-4121*) 

Indenture, dated September 25, 2008, between the registrant and The Bank of New York Mellon, as Trustee (Exhibit 4.1 to 
the registration statement on Form S-3ASR no. 333-153704 filed September 26, 2008, Securities and Exchange 
Commission File Number 1-4121*) 

Indenture, dated June 15, 2020, among Deere Funding Canada Corporation, as issuer, the registrant, as guarantor, and The 
Bank of New York Mellon, as Trustee (Exhibit 4.3 to the registration statement on Form S-3ASR no. 333-239165 filed 
June 15, 2020, Securities and Exchange Commission File Number 1-4121*) 

Terms and Conditions of the Euro Medium Term Notes, published March 31, 2022, applicable to the U.S. 
$6,000,000,000 Euro Medium Term Note Programme of the registrant, John Deere Capital Corporation, John Deere Bank 
S.A., and John Deere Cash Management (Exhibit 4.5 to Form 10-K of registrant for the year ended October 30, 2022. 
Securities and Exchange Commission File Number 1-4121*) 

Description of Deere & Company’s Common Stock (Exhibit 4.4 to Form 10-K of registrant for the year ended November 3, 
2019, Securities and Exchange Commission File number 1-4121*) 

Description of Deere & Company’s 6.55% Debentures Due 2028 (Exhibit 4.6 to Form 10-K of registrant for the year ended 
November 3, 2019, Securities and Exchange Commission File Number 1-4121*) 

Certain instruments relating to long-term debt constituting less than 10 percent of the registrant’s total assets are not filed as exhibits 
herewith pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K. The registrant will furnish copies of such instruments to the Commission 
upon request. 

10.1 

10.2 

10.3 

10.4 

10.5 

Agreement, as amended November 1, 1994, between the registrant and John Deere Capital Corporation concerning 
agricultural retail notes (Exhibit 10.1 to Form 10-K of registrant for the year ended October 31, 1998, Securities and 
Exchange Commission File Number 1-4121*) 

Agreement, as amended November 1, 1994, between the registrant and John Deere Capital Corporation concerning lawn 
and grounds care retail notes (Exhibit 10.2 to Form 10-K of registrant for the year ended October 31, 1998, Securities and 
Exchange Commission File Number 1-4121*) 

Agreement, as amended November 1, 1994, between John Deere Construction Equipment Company and John Deere 
Capital Corporation concerning construction retail notes (Exhibit 10.3 to Form 10-K of registrant for the year ended 
October 31, 1998, Securities and Exchange Commission File Number 1-4121*) 

Agreement, dated July 14, 1997, between John Deere Construction Equipment Company and John Deere Capital 
Corporation concerning construction retail notes (Exhibit 10.4 to Form 10-K of registrant for the year ended October 31, 
2003, Securities and Exchange Commission File Number 1-4121*) 

Second Amended Agreement, dated March 27, 2023, between the registrant and John Deere Capital Corporation relating 
to fixed charges ratio, ownership, and minimum net worth of John Deere Capital Corporation (Exhibit 10.4 to Form 10-Q of 
registrant for the quarter ended April 30, 2023, Securities and Exchange Commission File Number 1-4121*) 

83 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.6† 

  Deere & Company Voluntary Deferred Compensation Plan, as amended October 31, 2023 

10.7† 

10.8† 

10.9† 

John Deere Short-Term Incentive Bonus Plan, as amended October 27, 2023 (Exhibit 10.1 to Form 8-K of registrant filed 
October 30, 2023, Securities and Exchange Commission File Number 1-4121*) 

John Deere Long-Term Incentive Cash Plan (Appendix C to Proxy Statement of registrant filed January 12, 2018, Securities 
and Exchange Commission File Number 1-4121*) 

John Deere Omnibus Equity and Incentive Plan, as amended February 25, 2015 (Appendix D to Proxy Statement of 
registrant filed January 14, 2015, Securities and Exchange Commission File Number 1-4121*) 

10.10† 

  Form of Terms and Conditions for John Deere Nonqualified Stock Options granted fiscal 2023 

10.11† 

  Form of Terms and Conditions for John Deere Restricted Stock Units and Performance Stock Units granted fiscal 2023 

10.12† 

10.13† 

10.14† 

10.15† 

Form of Terms and Conditions for John Deere Nonqualified Stock Options granted fiscal 2022. (Exhibit 10.10 to Form 10-K 
of registrant for the year ended October 31, 2022, Securities and Exchange Commission File Number 1-4121*) 

Form of Terms and Conditions for John Deere Restricted Stock Units and Performance Stock Units granted fiscal 2022 
(Exhibit 10.11 to Form 10-K of registrant for the year ended October 31, 2022, Securities and Exchange Commission File 
Number 1-4121*) 

Form of Terms and Conditions for John Deere Nonqualified Stock Options granted fiscal 2021 (Exhibit 10.10 to Form 10-K 
of registrant for the year ended October 31, 2021, Securities and Exchange Commission File Number 1-4121*) 

Form of Terms and Conditions for John Deere Restricted Stock Units and Performance Stock Units granted fiscal 2021 
(Exhibit 10.11 to Form 10-K of registrant for the year ended October 31, 2021, Securities and Exchange Commission File 
Number 1-4121*) 

10.16† 

  Form of John Deere Restricted Stock Unit Grant for Directors granted fiscal 2023 

10.17† 

10.18† 

Form of John Deere Restricted Stock Unit Grant for Directors (Exhibit 10.13 to Form 10-K of the registrant for the year 
ended October 31, 2008, Securities and Exchange Commission File Number 1-4121*) 

Form of Terms and Conditions for Deere & Company Nonemployee Director Stock Ownership Plan (Exhibit 10.13 to 
Form 10-K of registrant for the year ended October 31, 2021, Securities and Exchange Commission File Number 1-4121*) 

10.19† 

John Deere Defined Contribution Restoration Plan, as amended October 31, 2023 

10.20† 

John Deere Supplemental Pension Benefit Plan, as amended December 31, 2020 (Exhibit 10.15 to Form 10-K of registrant 
for the year ended October 31, 2021, Securities and Exchange Commission File Number 1-4121*) 

10.21† 

10.22† 

10.23† 

John Deere Senior Supplementary Pension Benefit Plan, as amended October 15, 2014 (Exhibit 10.16 to Form 10-K of 
registrant for the year ended October 31, 2014, Securities and Exchange Commission File Number 1-4121*) 

John Deere ERISA Supplementary Pension Benefit Plan, as amended October 31, 2022 (Exhibit 10.1 to Form 10-Q of 
registrant for the quarter ended January 29, 2023, Securities and Exchange Commission File Number 1-4121*) 

Deere & Company Nonemployee Director Stock Ownership Plan, as amended February 29, 2012 (Appendix A to Proxy 
Statement of registrant filed on January 13, 2012, Securities and Exchange Commission File Number 1-4121*) 

10.24† 

Deere & Company Nonemployee Director Stock Ownership Plan, February 23, 2022 (Appendix C to Proxy Statement of 
registrant filed on January 7, 2022, Securities and Exchange Commission File Number 1-4121*) 

10.25† 

  Deere & Company Nonemployee Director Deferred Compensation Plan, as amended October 31, 2023 

84 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.26† 

Amended and Restated Change in Control Severance Program of Deere & Company, effective August 29, 2023 (Exhibit 10.1 
to Form 10-Q of registrant for the quarter ended July 30, 2023, Securities and Exchange Commission File number 1-4121*) 

10.27† 

Incentive Compensation Recovery Policy effective August 29, 2023 

10.28† 

John Deere 2020 Equity and Incentive Plan (Appendix C to Proxy Statement of registrant filed January 10, 2020, Securities 
and Exchange Commission File Number 1-4121*) 

10.29 

10.30 

10.31 

10.32 

10.33 

10.34 

10.35 

21. 

22. 

23. 

24. 

31.1 

Asset Purchase Agreement, dated October 29, 2001, between the registrant and Deere Capital, Inc. concerning the sale of 
trade receivables (Exhibit 10.19 to Form 10-K of registrant for the year ended October 31, 2001, Securities and Exchange 
Commission File Number 1-4121*) 

Second Amendment, dated February 21, 2020, to the Asset Purchase Agreement dated October 29, 2001, between the 
registrant and Deere Capital, Inc. (including conformed copy of the Asset Purchase Agreement as Exhibit A thereto) 
(Exhibit 10.1 to Form 10-Q of registrant for the quarter ended February 2, 2020, Securities and Exchange Commission File 
Number 1-4121*) 

Asset Purchase Agreement, dated October 29, 2001, between John Deere Construction & Forestry Company and Deere 
Capital, Inc. concerning the sale of trade receivables (Exhibit 10.20 to Form 10-K of registrant for the year ended 
October 31, 2001, Securities and Exchange Commission File Number 1-4121*) 

Second Amendment, dated February 21, 2020, to the Asset Purchase Agreement dated October 29, 2001, between John 
Deere Construction & Forestry Company and Deere Capital, Inc. (including conformed copy of the Asset Purchase 
Agreement as Exhibit A thereto) (Exhibit 10.2 to Form 10-Q of registrant for the quarter ended February 2, 2020, Securities 
and Exchange Commission File Number 1-4121*) 

2027 Credit Agreement, dated March 27, 2023, among the registrant, John Deere Capital Corporation, John Deere Bank 
S.A., various financial institutions, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A. and 
Citibank, N.A., as Co-Syndication Agents, and J.P. Morgan Securities LLC, as Sustainability Structuring Agent (Exhibit 10.2 
to Form 10-Q of registrant for the quarter ended April 30, 2023, Securities and Exchange Commission File Number 1-4121*) 

2028 Credit Agreement, dated March 27, 2023, among the registrant, John Deere Capital Corporation, John Deere Bank 
S.A., various financial institutions, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A. and 
Citibank, N.A., as Co-Syndication Agents, and J.P. Morgan Securities LLC, as Sustainability Structuring Agent (Exhibit 10.3 
to Form 10-Q of registrant for the quarter ended April 30,2023, Securities and Exchange Commission File Number 1-4121*) 

364-Day Credit Agreement, dated March 27, 2023, among the registrant, John Deere Capital Corporation, John Deere Bank 
S.A., various financial institutions, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America , N.A. and 
Citibank, N.A., as Co-Syndication Agents, and J.P. Morgan Securities LLC as Sustainability Structuring Agent (Exhibit 10.1 
to Form 10-Q of registrant for the quarter ended April 30, 2023, Securities and Exchange Commission File Number 1-4121*) 

  Subsidiaries 

  List of Guarantors and Subsidiary Issuers of Guaranteed Securities 

  Consent of Deloitte & Touche LLP 

  Power of Attorney (included on signature page) 

  Rule 13a-14(a)/15d-14(a) Certification 

31.2 

  Rule 13a-14(a)/15d-14(a) Certification 

32. 

  Section 1350 Certifications (furnished herewith) 

101.INS 

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags 
are embedded within the Inline XBRL document) 

85 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
101.SCH 

Inline XBRL Taxonomy Extension Schema Document 

101.CAL 

Inline XBRL Taxonomy Extension Calculation Linkbase Document 

101.DEF 

Inline XBRL Taxonomy Extension Definition Linkbase Document 

101.LAB 

Inline XBRL Taxonomy Extension Label Linkbase Document 

101.PRE 

Inline XBRL Taxonomy Extension Presentation Linkbase Document 

104. 

  Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) 

Incorporated by reference. 

* 
†  Management contract or compensatory plan or arrangement. 

86 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report 

to be signed on its behalf by the undersigned, thereunto duly authorized. 

SIGNATURES 

DEERE & COMPANY 

By: 

/s/ John C. May 
John C. May 
Chairman and Chief Executive Officer 
(Principal Executive Officer) 

Date: December 15, 2023 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on 

behalf of the registrant and in the capacities and on the date indicated. 

Each person signing below also hereby appoints John C. May, Joshua A. Jepsen, and Edward R. Berk, and each of them singly, his or 

her lawful attorney-in-fact with full power to execute and file any and all amendments to this report together with exhibits thereto and 
generally to do all such things as such attorney-in-fact may deem appropriate to enable Deere & Company to comply with the provisions of 
the Securities Exchange Act of 1934 and all requirements of the Securities and Exchange Commission. 

Signature 

Title 

DDate 

/s/ Leanne G. Caret 

Leanne G. Caret 

/s/ Tamra A. Erwin 

Tamra A. Erwin  

/s/ Alan C. Heuberger 

Alan C. Heuberger 

/s/ Charles O. Holliday, Jr. 

Charles O. Holliday, Jr. 

/s/ L. Neil Hunn 

L. Neil Hunn 

/s/ Joshua A. Jepsen 

Joshua A. Jepsen 

/s/ Michael O. Johanns 

Michael O. Johanns 

/s/ Clayton M. Jones 

Clayton M. Jones 

December 15, 2023 

Director 

Director 

Director 

Director 

Director 

Senior Vice President and  
Chief Financial Officer  
(Principal Financial Officer and Principal 
Accounting Officer) 

Director 

Director 

87 

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) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
/s/ John C. May 

John C. May 

/s/ Gregory R. Page 

Gregory R. Page 

/s/ Sherry M. Smith 

Sherry M. Smith 

/s/ Dmitri L. Stockton 

Dmitri L. Stockton 

/s/ Sheila G. Talton 

Sheila G. Talton 

Chairman and Chief Executive Officer 
(Principal Executive Officer) 

Director 

Director 

Director 

Director 

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EXHIBIT 21 

DEERE & COMPANY 
AND CONSOLIDATED SUBSIDIARIES 

SUBSIDIARIES OF THE REGISTRANT 

As of October 29, 2023 

Subsidiary companies of Deere & Company are listed below.  Except where otherwise indicated, 100 percent 
of the voting securities of the companies named is owned directly or indirectly by Deere & Company. 

Name of subsidiary 
Subsidiaries included in consolidated financial statements * 
Deere Credit Services, Inc. 
Hamm AG 
John Deere Asia (Singapore) Private Limited 
John Deere Brasil Ltda.  
John Deere Canada ULC 
John Deere Capital Corporation 
John Deere Cash Management 
John Deere Construction & Forestry Company 
John Deere GmbH & Co. KG 
John Deere Holding (Barbados) SRL 
John Deere Holding France S.A.S. 
John Deere India Private Limited 
John Deere International Manufacturing S.à.r.l. 
John Deere Limited 
John Deere Limited  
John Deere Luxembourg Investment S.à.r.l. 
John Deere Sales Hispanoamerica, S. de R.L. de C.V. 
John Deere Shared Services LLC 
John Deere Technologies S.C.S. 
John Deere Walldorf GmbH & Co. KG  
John Deere Walldorf International GmbH & Co. KG 
Joseph Vögele Aktiengesellschaft 
Wirtgen GmbH 
Wirtgen America, Inc. 
____________________________ 

Organized  
under the 
laws of 

Delaware 
Germany 
Singapore 
Brazil 
Canada 
Delaware 
Luxembourg 
Delaware 
Germany 
Barbados 
France 
India 
Luxembourg 
Australia 
Scotland 
Luxembourg 
Mexico 
Iowa 
Luxembourg 
Germany 
Germany 
Germany 
Germany 
Tennessee 

*           One-hundred ninety-six consolidated subsidiaries and twenty-three unconsolidated affiliates, whose 
names are omitted, considered in the aggregate as a single subsidiary, would not constitute a 
significant subsidiary. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIST OF SUBSIDIARY ISSUERS OF GUARANTEED SECURITIES  

From time to time, the following 100%-owned subsidiaries of Deere & Company, a Delaware corporation (the 
“Company”), may issue debt securities that are fully and unconditionally guaranteed by the Company under a registration 
statement on Form S-3 filed with the Securities and Exchange Commission. 

EXHIBIT 22 

Name of Subsidiary Issuer 
Deere Funding Canada Corporation  

Jurisdiction 
Ontario 

 
 
 
 
 
 
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 

We consent to the incorporation by reference in Registration Statement No. 333-273045 on Form S(cid:4136)3 and Registration 
Statement Nos. 333(cid:4136)165069, 333(cid:4136)62669, 333(cid:4136)132013, 333(cid:4136)140980, 333(cid:4136)140981, 333(cid:4136)202299 and 333(cid:4136)236655 on Form S(cid:4136)8 of 
our reports dated December 15, 2023, relating to the consolidated financial statements of Deere & Company, and the 
effectiveness of Deere & Company’s internal control over financial reporting, appearing in this Annual Report on Form 10(cid:4136)K 
for the year ended October 29, 2023. 

Exhibit 23 

/s/ DELOITTE & TOUCHE LLP 
Chicago, Illinois 

December 15, 2023 

 
 
 
 
 
 
Exhibit 31.1 

CERTIFICATIONS 

I, John C. May, certify that: 

1. 

I have reviewed this annual report on Form 10-K of Deere & Company; 

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a 

material fact necessary to make the statements made, in light of the circumstances under which such statements 
were made, not misleading with respect to the period covered by this report; 

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly 

present in all material respects the financial condition, results of operations and cash flows of the registrant as of, 
and for, the periods presented in this report; 

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls 

and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial 
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be 
designed under our supervision, to ensure that material information relating to the registrant, including its 
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in 
which this report is being prepared; 

(b) Designed such internal control over financial reporting, or caused such internal control over financial 
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of 
financial reporting and the preparation of financial statements for external purposes in accordance with 
generally accepted accounting principles; 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this 
report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the 
period covered by this report based on such evaluation; and 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred 
during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual 
report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control 
over financial reporting; and 

5.  The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal 

control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of 
directors (or persons performing the equivalent functions): 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over 
financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, 
summarize and report financial information; and 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant 
role in the registrant’s internal control over financial reporting. 

Date: December 15, 2023 

By: 

/s/ John C. May 
John C. May 
Chairman and Chief Executive Officer 
(Principal Executive Officer) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit 31.2 

CERTIFICATIONS 

I, Joshua A. Jepsen, certify that: 

1. 

I have reviewed this annual report on Form 10-K of Deere & Company; 

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a 

material fact necessary to make the statements made, in light of the circumstances under which such statements 
were made, not misleading with respect to the period covered by this report; 

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly 

present in all material respects the financial condition, results of operations and cash flows of the registrant as of, 
and for, the periods presented in this report; 

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls 

and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial 
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be 
designed under our supervision, to ensure that material information relating to the registrant, including its 
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in 
which this report is being prepared; 

(b) Designed such internal control over financial reporting, or caused such internal control over financial 
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of 
financial reporting and the preparation of financial statements for external purposes in accordance with 
generally accepted accounting principles; 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this 
report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the 
period covered by this report based on such evaluation; and 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred 
during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual 
report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control 
over financial reporting; and 

5.  The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal 

control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of 
directors (or persons performing the equivalent functions): 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over 
financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, 
summarize and report financial information; and 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant 
role in the registrant’s internal control over financial reporting. 

Date: December 15, 2023 

By: 

/s/ Joshua A. Jepsen 
Joshua A. Jepsen 
Senior Vice President and Chief Financial Officer 
(Principal Financial Officer and Principal 
Accounting Officer) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT PURSUANT TO 
18 U.S.C. SECTION 1350 
AS REQUIRED BY 
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 

Exhibit 32 

In connection with the Annual Report of Deere & Company (the “Company”) on Form 10-K for the period ended October 29, 
2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify 
that to the best of our knowledge: 

1. 

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 

2. 

The information contained in the Report fairly presents, in all material respects, the financial condition and results of 
operations of the Company. 

December 15, 2023 

/s/ John C. May 
John C. May 

  Chairman and Chief Executive Officer  

(Principal Executive Officer) 

December 15, 2023 

/s/ Joshua A. Jepsen 
Joshua A. Jepsen 

  Senior Vice President and Chief Financial Officer 

(Principal Financial Officer and Principal   

  Accounting Officer) 

A signed original of this written statement required by Section 906 has been provided to Deere & Company and will be 
retained by Deere & Company and furnished to the Securities and Exchange Commission or its staff upon request. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deere & Company
One John Deere Place, Moline, Illinois 61265
(309) 765-8000
www.JohnDeere.com