EX-99.12de-20250515xex99d1.htmEX-99.1
Exhibit 99.1
(Furnished herewith)
News Release
Contact:
Jen Hartmann
Director, Public Relations
HartmannJenniferA@JohnDeere.com
Deere Reports Second Quarter Net Income of $1.804 Billion
●
Disciplined execution drives strong quarterly performance across all segments.
●
Employees and dealers showcase resilience in supporting customers amidst heightened uncertainty.
●
Full-year net income range broadened in response to dynamic environment.
MOLINE, Illinois (May 15, 2025) — Deere & Company reported net income of $1.804 billion for the second quarter ended April 27, 2025, or $6.64 per share, compared with net income of $2.370 billion, or $8.53 per share, for the quarter ended April 28, 2024. For the first six months of the year, net income attributable to Deere & Company was $2.673 billion, or $9.82 per share, compared with $4.121 billion, or $14.74 per share, for the same period last year.
Worldwide net sales and revenues decreased 16 percent, to $12.763 billion, for the second quarter of 2025 and decreased 22 percent, to $21.272 billion, for six months. Net sales were $11.171 billion for the quarter and $17.980 billion for six months, compared with $13.610 billion and $24.097 billion last year, respectively.
“As we navigate the current environment, our customers remain our top priority,” said John May, chairman and CEO of John Deere. “I’m incredibly proud of our team’s execution this quarter, delivering exceptional performance despite challenging market dynamics. Their dedication and hard work have been instrumental in ensuring our customers continue to receive the high-quality service and products they expect from John Deere.”
Company Outlook & Summary
G1Net income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75 billion to $5.50 billion.
“Despite the near-term market challenges, we remain confident in the future,” said May. “Our commitment to delivering value for our customers includes ongoing investment in advanced products, solutions, and manufacturing capabilities. Over the next decade, we will continue to make significant investments in our core U.S. market, underscoring our dedication to innovation and growth while focusing on remaining cost-competitive in a global market.”
4
Deere & Company
Second Quarter
Year to Date
$ in millions, except per share amounts
2025
2024
% Change
2025
2024
% Change
Net sales and revenues
$
12,763
$
15,235
-16%
$
21,272
$
27,420
-22%
Net income
$
1,804
$
2,370
-24%
$
2,673
$
4,121
-35%
Fully diluted EPS
$
6.64
$
8.53
$
9.82
$
14.74
Current period results were affected by special items. See Note 1 of the financial statements for further details. The cost of additional tariffs for each segment is included in the production costs and other items below, partially offsetting year-over-year cost reduction in these categories.
Production & Precision Agriculture
Second Quarter
$ in millions
2025
2024
% Change
Net sales
$
5,230
$
6,581
-21%
Operating profit
$
1,148
$
1,650
-30%
Operating margin
22.0%
25.1%
Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes. Operating profit decreased due to lower shipment volumes / sales mix and the unfavorable effects of foreign currency exchange, partially offset by lower production costs and price realization.
Production & Precision Agriculture Operating Profit
Second Quarter 2025 Compared to Second Quarter 2024
$ in millions
5
Small Agriculture & Turf
Second Quarter
$ in millions
2025
2024
% Change
Net sales
$
2,994
$
3,185
-6%
Operating profit
$
574
$
571
1%
Operating margin
19.2%
17.9%
Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit held steady as favorable factors including lower production costs, lower warranty expenses, and price realization were offset by lower shipment volumes / sales mix.
Small Agriculture & Turf Operating Profit
Second Quarter 2025 Compared to Second Quarter 2024
$ in millions
6
Construction & Forestry
Second Quarter
$ in millions
2025
2024
% Change
Net sales
$
2,947
$
3,844
-23%
Operating profit
$
379
$
668
-43%
Operating margin
12.9%
17.4%
Construction and forestry sales decreased for the quarter due to lower shipment volumes. Operating profit decreased primarily due to lower shipment volumes / sales mix and unfavorable price realization.
Construction & Forestry Operating Profit
Second Quarter 2025 Compared to Second Quarter 2024
$ in millions
Financial Services
Second Quarter
$ in millions
2025
2024
% Change
Net income
$
161
$
162
-1%
Financial services net income for the quarter was flat due to less-favorable financing spreads and a higher provision for credit losses, offset by lower SA&G expenses and a reduction in derivative valuation adjustments.
7
Industry Outlook for Fiscal 2025
Agriculture & Turf
U.S. & Canada:
Large Ag
Down ~ 30%
Small Ag & Turf
Down 10-15%
Europe
Down ~ 5%
South America (Tractors & Combines)
Flat
Asia
Flat
Construction & Forestry
U.S. & Canada:
Construction Equipment
Down ~ 10%
Compact Construction Equipment
Down ~ 5%
Global Forestry
Flat to down 5%
Global Roadbuilding
Flat
Deere Segment Outlook for Fiscal 2025
The Deere & Company outlook incorporates the impacts from global import tariffs that are in effect as of May 13, 2025. Due to the uncertain global trade environment, the potential impacts of future tariffs are not included in the outlook.
Currency
Price
$ in millions
Net Sales
Translation
Realization
G2Production & Precision Ag
Down 15% to 20%
Down 1.5%
Up 1.0%
G3Small Ag & Turf
Down 10% to 15%
~ Flat
Up 0.5%
G4Construction & Forestry
Down 10% to 15%
~ Flat
Down 1.0%
G5Financial Services
Net Income
~$ 750
8
FORWARD-LOOKING STATEMENTS
Certain statements contained herein, including in the section entitled “Company Outlook & Summary,” “Industry Outlook for Fiscal 2025,” “Deere Segment Outlook for Fiscal 2025,” and “Condensed Notes to Interim Consolidated Financial Statements” relating to future events, expectations, forecasted financial and industry results, future investment and trends constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company’s operations generally while others could more heavily affect a particular line of business.
Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:
●
government policies and actions with respect to the global trade environment including increased and proposed tariffs announced by the U.S. government, any potential retaliatory trade regulations, tariffs and policies and the uncertainty of the company’s ability to sell products domestically or internationally, continue production at certain international facilities, procure raw materials and components, accurately forecast demand and inventory, manage increased costs of production, absorb or pass on increased pricing, accurately predict financial results and industry trends, and remain competitive based on these trade actions, policies and general economic uncertainty;
●
the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, harvest yields, available farm acres, acreage planted, soil conditions, prices for commodities and livestock, input costs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer practices due to slower economic growth or a recession and regional or global liquidity constraints;
●
higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for the company’s products and solutions;
●
the company’s ability to adapt in highly competitive markets, including understanding and meeting customers’ changing expectations for products and solutions, including delivery and utilization of precision technology;
●
housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment;
●
political, economic, and social instability of the geographies in which the company operates, including the ongoing war between Russia and Ukraine, the conflict between India and Pakistan, and the conflicts in the Middle East;
●
worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and consequently the demand for the company’s equipment;
●
investigations, claims, lawsuits, or other legal proceedings, including the lawsuit filed by the Federal Trade Commission (FTC) and the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that the company unlawfully withheld self-repair capabilities from farmers and independent repair providers;
●
delays or disruptions in the company’s supply chain;
●
changes in climate patterns, unfavorable weather events, and natural disasters;
●
availability and price of raw materials, components, and whole goods;
●
suppliers’ and manufacturers’ business practices and compliance with applicable laws such as human rights, safety, environmental, and fair wages;
●
loss of or challenges to intellectual property rights;
●
rationalization, restructuring, relocation, expansion and/or reconfiguration of manufacturing and warehouse facilities;
●
the ability to execute business strategies, including the company’s Smart Industrial Operating Model and Leap Ambitions;
9
●
accurately forecasting customer demand for products and services and adequately managing inventory;
●
dealer practices and their ability to manage inventory and distribution of the company’s products and to provide support and service for precision technology solutions;
●
the ability to realize anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes;
●
negative claims or publicity that damage the company’s reputation or brand;
●
the ability to attract, develop, engage, and retain qualified employees;
●
the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge;
●
labor relations and contracts, including work stoppages and other disruptions;
●
security breaches, cybersecurity attacks, technology failures, and other disruptions to the company’s information technology infrastructure and products;
●
leveraging artificial intelligence and machine learning within the company’s business processes;
●
changes to governmental communications channels (radio frequency technology);
●
changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environmental (including climate change and engine emissions), farming, health and safety, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, human rights, import / export and trade, tariffs, labor and employment, product liability, telematics, and telecommunications;
●
governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy; and
●
warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations as a result of the deficient operation of the company’s products.
Further information concerning the company or its businesses, including factors that could materially affect the company’s financial results, is included in the company’s filings with the SEC (including, but not limited to, the factors discussed in Item 1A. “Risk Factors” of the company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.
10
DEERE & COMPANY
SECOND QUARTER 2025 PRESS RELEASE
(In millions of dollars) Unaudited
Three Months Ended
Six Months Ended
April 27
April 28
%
April 27
April 28
%
2025
2024
Change
2025
2024
Change
Net sales and revenues:
Production & precision ag net sales
$
5,230
$
6,581
-21
$
8,297
$
11,430
-27
Small ag & turf net sales
2,994
3,185
-6
4,742
5,610
-15
Construction & forestry net sales
2,947
3,844
-23
4,941
7,057
-30
Financial services revenues
1,385
1,395
-1
2,856
2,770
+3
Other revenues
207
230
-10
436
553
-21
Total net sales and revenues
$
12,763
$
15,235
-16
$
21,272
$
27,420
-22
Operating profit: *
Production & precision ag
$
1,148
$
1,650
-30
$
1,486
$
2,695
-45
Small ag & turf
574
571
+1
698
897
-22
Construction & forestry
379
668
-43
444
1,234
-64
Financial services
207
209
-1
473
466
+2
Total operating profit
2,308
3,098
-26
3,101
5,292
-41
Reconciling items **
35
23
+52
138
49
+182
Income taxes
(539)
(751)
-28
(566)
(1,220)
-54
Net income attributable to Deere & Company
$
1,804
$
2,370
-24
$
2,673
$
4,121
-35
* Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of financial services includes the effect of interest expense and foreign exchange gains and losses.
** Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests.
11
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED INCOME
For the Three and Six Months Ended April 27, 2025 and April 28, 2024
(In millions of dollars and shares except per share amounts) Unaudited
Three Months Ended
Six Months Ended
2025
2024
2025
2024
Net Sales and Revenues
Net sales
$
11,171
$
13,610
$
17,980
$
24,097
Finance and interest income
1,354
1,387
2,807
2,746
Other income
238
238
485
577
Total
12,763
15,235
21,272
27,420
Costs and Expenses
Cost of sales
7,609
9,157
12,646
16,357
Research and development expenses
549
565
1,075
1,098
Selling, administrative and general expenses
1,197
1,265
2,169
2,330
Interest expense
784
836
1,614
1,638
Other operating expenses
287
295
536
664
Total
10,426
12,118
18,040
22,087
Income of Consolidated Group before Income Taxes
2,337
3,117
3,232
5,333
Provision for income taxes
539
751
566
1,220
Income of Consolidated Group
1,798
2,366
2,666
4,113
Equity in income of unconsolidated affiliates
3
2
1
3
Net Income
1,801
2,368
2,667
4,116
Less: Net loss attributable to noncontrolling interests
(3)
(2)
(6)
(5)
Net Income Attributable to Deere & Company
$
1,804
$
2,370
$
2,673
$
4,121
Per Share Data
Basic
$
6.65
$
8.56
$
9.85
$
14.80
Diluted
6.64
8.53
9.82
14.74
Dividends declared
1.62
1.47
3.24
2.94
Dividends paid
1.62
1.47
3.09
2.82
Average Shares Outstanding
Basic
271.1
276.8
271.3
278.4
Diluted
271.8
277.9
272.1
279.5
See Condensed Notes to Interim Consolidated Financial Statements.
12
DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
April 27
October 27
April 28
2025
2024
2024
Assets
Cash and cash equivalents
$
7,991
$
7,324
$
5,553
Marketable securities
1,272
1,154
1,094
Trade accounts and notes receivable – net
6,748
5,326
8,880
Financing receivables – net
43,029
44,309
45,278
Financing receivables securitized – net
7,765
8,723
7,262
Other receivables
2,975
2,545
2,535
Equipment on operating leases – net
7,336
7,451
6,965
Inventories
7,870
7,093
8,443
Property and equipment – net
7,555
7,580
7,034
Goodwill
4,094
3,959
3,936
Other intangible assets – net
964
999
1,064
Retirement benefits
3,133
2,921
3,056
Deferred income taxes
2,088
2,086
1,936
Other assets
3,483
2,906
2,592
Assets held for sale
2,944
Total Assets
$
106,303
$
107,320
$
105,628
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings
$
15,948
$
13,533
$
17,699
Short-term securitization borrowings
7,562
8,431
6,976
Accounts payable and accrued expenses
13,345
14,543
14,609
Deferred income taxes
496
478
491
Long-term borrowings
42,811
43,229
40,962
Retirement benefits and other liabilities
1,763
2,354
2,105
Liabilities held for sale
1,827
Total liabilities
81,925
84,395
82,842
Redeemable noncontrolling interest
83
82
98
Stockholders’ Equity
Total Deere & Company stockholders’ equity
24,287
22,836
22,684
Noncontrolling interests
8
7
4
Total stockholders’ equity
24,295
22,843
22,688
Total Liabilities and Stockholders’ Equity
$
106,303
$
107,320
$
105,628
See Condensed Notes to Interim Consolidated Financial Statements.
13
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Six Months Ended April 27, 2025 and April 28, 2024
(In millions of dollars) Unaudited
2025
2024
Cash Flows from Operating Activities
Net income
$
2,667
$
4,116
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses
174
131
Provision for depreciation and amortization
1,104
1,045
Impairments and other adjustments
(32)
Share-based compensation expense
54
104
Provision (credit) for deferred income taxes
11
(120)
Changes in assets and liabilities:
Receivables related to sales
(1,069)
(2,469)
Inventories
(772)
(409)
Accounts payable and accrued expenses
(898)
(1,300)
Accrued income taxes payable/receivable
(147)
(29)
Retirement benefits
(794)
(208)
Other
270
83
Net cash provided by operating activities
568
944
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)
14,348
13,703
Proceeds from maturities and sales of marketable securities
245
200
Proceeds from sales of equipment on operating leases
1,001
1,011
Cost of receivables acquired (excluding receivables related to sales)
(12,744)
(14,091)
Purchases of marketable securities
(347)
(432)
Purchases of property and equipment
(555)
(719)
Cost of equipment on operating leases acquired
(1,254)
(1,369)
Collections of receivables from unconsolidated affiliates
234
Collateral on derivatives – net
27
96
Other
(176)
(69)
Net cash provided by (used for) investing activities
779
(1,670)
Cash Flows from Financing Activities
Net proceeds in short-term borrowings (original maturities three months or less)
551
58
Proceeds from borrowings issued (original maturities greater than three months)
5,156
10,189
Payments of borrowings (original maturities greater than three months)
(4,837)
(8,139)
Repurchases of common stock
(838)
(2,422)
Dividends paid
(843)
(796)
Other
(10)
(52)
Net cash used for financing activities
(821)
(1,162)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash
20
(5)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
546
(1,893)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period
7,633
7,620
Cash, Cash Equivalents, and Restricted Cash at End of Period
$
8,179
$
5,727
See Condensed Notes to Interim Consolidated Financial Statements.
14
DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial Statements
(In millions of dollars) Unaudited
(1)
Special Items
Discrete Tax Items
In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary.
Banco John Deere S.A.
In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become 50% owner of the company’s wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company’s incremental risk as it continues to grow in the Brazilian market. The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in “Equity in income of unconsolidated affiliates” within the financial services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in “Other assets” and “Other receivables,” respectively.
BJD was reclassified as held for sale in the third quarter of 2024. In the first quarter of 2025, a pretax and after-tax gain (reversal of previous losses) of $32 million was recorded in “Selling, administrative and general expenses” and presented in “Impairments and other adjustments” in the statements of consolidated income and consolidated cash flows, respectively, related to a decrease in valuation allowance. No significant gain or loss was recognized upon completion of the transaction. The equity interest in BJD was valued at $362 million at the deconsolidation date.
(2)
The consolidated financial statements represent the consolidation of all the company’s subsidiaries. The supplemental consolidating data in Note 3 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without financial services. Equipment operations include the company’s production and precision agriculture operations, small agriculture and turf operations, and construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within financial services. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidated financial statements.
15
DEERE & COMPANY
(3) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME
For the Three Months Ended April 27, 2025 and April 28, 2024
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES
ELIMINATIONS
CONSOLIDATED
2025
2024
2025
2024
2025
2024
2025
2024
Net Sales and Revenues
Net sales
$
11,171
$
13,610
$
11,171
$
13,610
Finance and interest income
108
129
$
1,380
$
1,496
$
(134)
$
(238)
1,354
1,387
1
Other income
187
198
121
92
(70)
(52)
238
238
2, 3, 4
Total
11,466
13,937
1,501
1,588
(204)
(290)
12,763
15,235
Costs and Expenses
Cost of sales
7,617
9,164
(8)
(7)
7,609
9,157
4
Research and development expenses
549
565
549
565
Selling, administrative and general expenses
961
1,007
238
260
(2)
(2)
1,197
1,265
4
Interest expense
94
114
721
780
(31)
(58)
784
836
1
Interest compensation to Financial Services
103
180
(103)
(180)
1
Other operating expenses
12
1
335
337
(60)
(43)
287
295
3, 4, 5
Total
9,336
11,031
1,294
1,377
(204)
(290)
10,426
12,118
Income before Income Taxes
2,130
2,906
207
211
2,337
3,117
Provision for income taxes
490
700
49
51
539
751
Income after Income Taxes
1,640
2,206
158
160
1,798
2,366
Equity in income of unconsolidated affiliates
3
2
3
2
Net Income
1,640
2,206
161
162
1,801
2,368
Less: Net loss attributable to noncontrolling interests
(3)
(2)
(3)
(2)
Net Income Attributable to Deere & Company
$
1,643
$
2,208
$
161
$
162
$
1,804
$
2,370
1 Elimination of intercompany interest income and expense.
2 Elimination of equipment operations’ margin from inventory transferred to equipment on operating leases.
3 Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets.
4 Elimination of intercompany service revenues and fees.
5 Elimination of financial services’ lease depreciation expense related to inventory transferred to equipment on operating leases.
16
DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF INCOME
For the Six Months Ended April 27, 2025 and April 28, 2024
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES
ELIMINATIONS
CONSOLIDATED
2025
2024
2025
2024
2025
2024
2025
2024
Net Sales and Revenues
Net sales
$
17,980
$
24,097
$
17,980
$
24,097
Finance and interest income
217
285
$
2,835
$
2,929
$
(245)
$
(468)
2,807
2,746
1
Other income
391
487
239
211
(145)
(121)
485
577
2, 3, 4
Total
18,588
24,869
3,074
3,140
(390)
(589)
21,272
27,420
Costs and Expenses
Cost of sales
12,662
16,371
(16)
(14)
12,646
16,357
4
Research and development expenses
1,075
1,098
1,075
1,098
Selling, administrative and general expenses
1,761
1,882
412
453
(4)
(5)
2,169
2,330
4
Interest expense
178
223
1,487
1,542
(51)
(127)
1,614
1,638
1
Interest compensation to Financial Services
194
341
(194)
(341)
1
Other operating expenses
(38)
91
699
675
(125)
(102)
536
664
3, 4, 5
Total
15,832
20,006
2,598
2,670
(390)
(589)
18,040
22,087
Income before Income Taxes
2,756
4,863
476
470
3,232
5,333
Provision for income taxes
477
1,117
89
103
566
1,220
Income after Income Taxes
2,279
3,746
387
367
2,666
4,113
Equity in income (loss) of unconsolidated affiliates
(3)
4
3
1
3
Net Income
2,276
3,746
391
370
2,667
4,116
Less: Net loss attributable to noncontrolling interests
(6)
(5)
(6)
(5)
Net Income Attributable to Deere & Company
$
2,282
$
3,751
$
391
$
370
$
2,673
$
4,121
1 Elimination of intercompany interest income and expense.
2 Elimination of equipment operations’ margin from inventory transferred to equipment on operating leases.
3 Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets.
4 Elimination of intercompany service revenues and fees.
5 Elimination of financial services’ lease depreciation expense related to inventory transferred to equipment on operating leases.
17
DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEETS
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES
ELIMINATIONS
CONSOLIDATED
Apr 27
Oct 27
Apr 28
Apr 27
Oct 27
Apr 28
Apr 27
Oct 27
Apr 28
Apr 27
Oct 27
Apr 28
2025
2024
2024
2025
2024
2024
2025
2024
2024
2025
2024
2024
Assets
Cash and cash equivalents
$
6,331
$
5,615
$
3,800
$
1,660
$
1,709
$
1,753
$
7,991
$
7,324
$
5,553
Marketable securities
139
125
148
1,133
1,029
946
1,272
1,154
1,094
Receivables from Financial Services
2,497
3,043
4,480
$
(2,497)
$
(3,043)
$
(4,480)
6
Trade accounts and notes receivable – net
1,429
1,257
1,320
7,406
6,225
10,263
(2,087)
(2,156)
(2,703)
6,748
5,326
8,880
7
Financing receivables – net
82
78
80
42,947
44,231
45,198
43,029
44,309
45,278
Financing receivables securitized – net
2
2
7,763
8,721
7,262
7,765
8,723
7,262
Other receivables
2,009
2,193
1,822
1,009
427
760
(43)
(75)
(47)
2,975
2,545
2,535
7
Equipment on operating leases – net
7,336
7,451
6,965
7,336
7,451
6,965
Inventories
7,870
7,093
8,443
7,870
7,093
8,443
Property and equipment – net
7,523
7,546
6,999
32
34
35
7,555
7,580
7,034
Goodwill
4,094
3,959
3,936
4,094
3,959
3,936
Other intangible assets – net
964
999
1,064
964
999
1,064
Retirement benefits
3,046
2,839
2,980
89
83
77
(2)
(1)
(1)
3,133
2,921
3,056
8
Deferred income taxes
2,377
2,262
2,210
42
43
71
(331)
(219)
(345)
2,088
2,086
1,936
9
Other assets
2,349
2,194
2,105
1,152
715
504
(18)
(3)
(17)
3,483
2,906
2,592
Assets held for sale
2,944
2,944
Total Assets
$
40,712
$
39,205
$
39,387
$
70,569
$
73,612
$
73,834
$
(4,978)
$
(5,497)
$
(7,593)
$
106,303
$
107,320
$
105,628
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings
$
241
$
911
$
1,055
$
15,707
$
12,622
$
16,644
$
15,948
$
13,533
$
17,699
Short-term securitization borrowings
1
2
7,561
8,429
6,976
7,562
8,431
6,976
Payables to Equipment Operations
2,497
3,043
4,480
$
(2,497)
$
(3,043)
$
(4,480)
6
Accounts payable and accrued expenses
12,180
13,534
13,771
3,313
3,243
3,605
(2,148)
(2,234)
(2,767)
13,345
14,543
14,609
7
Deferred income taxes
405
434
421
422
263
415
(331)
(219)
(345)
496
478
491
9
Long-term borrowings
8,685
6,603
6,575
34,126
36,626
34,387
42,811
43,229
40,962
Retirement benefits and other liabilities
1,695
2,250
1,995
70
105
111
(2)
(1)
(1)
1,763
2,354
2,105
8
Liabilities held for sale
1,827
1,827
Total liabilities
23,207
23,734
23,817
63,696
66,158
66,618
(4,978)
(5,497)
(7,593)
81,925
84,395
82,842
Redeemable noncontrolling interest
83
82
98
83
82
98
Stockholders’ Equity
Total Deere & Company stockholders’ equity
24,287
22,836
22,684
6,873
7,454
7,216
(6,873)
(7,454)
(7,216)
24,287
22,836
22,684
10
Noncontrolling interests
8
7
4
8
7
4
Financial Services’ equity
(6,873)
(7,454)
(7,216)
6,873
7,454
7,216
10
Adjusted total stockholders’ equity
17,422
15,389
15,472
6,873
7,454
7,216
24,295
22,843
22,688
Total Liabilities and Stockholders’ Equity
$
40,712
$
39,205
$
39,387
$
70,569
$
73,612
$
73,834
$
(4,978)
$
(5,497)
$
(7,593)
$
106,303
$
107,320
$
105,628
6 Elimination of receivables / payables between equipment operations and financial services.
7 Primarily reclassification of sales incentive accruals on receivables sold to financial services.
8 Reclassification of net pension assets / liabilities.
9 Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.
10 Elimination of financial services’ equity.
18
DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF CASH FLOWS
For the Six Months Ended April 27, 2025 and April 28, 2024
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES
ELIMINATIONS
CONSOLIDATED
2025
2024
2025
2024
2025
2024
2025
2024
Cash Flows from Operating Activities
Net income
$
2,276
$
3,746
$
391
$
370
$
2,667
$
4,116
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses
11
10
163
121
174
131
Provision for depreciation and amortization
643
608
529
509
$
(68)
$
(72)
1,104
1,045
11
Impairments and other adjustments
(32)
(32)
Share-based compensation expense
54
104
54
104
12
Distributed earnings of Financial Services
984
247
(984)
(247)
13
Provision (credit) for deferred income taxes
(153)
(74)
164
(46)
11
(120)
Changes in assets and liabilities:
Receivables related to sales
(185)
(58)
(884)
(2,411)
(1,069)
(2,469)
14, 16
Inventories
(691)
(300)
(81)
(109)
(772)
(409)
15
Accounts payable and accrued expenses
(1,069)
(1,012)
102
147
69
(435)
(898)
(1,300)
16
Accrued income taxes payable/receivable
(77)
(20)
(70)
(9)
(147)
(29)
Retirement benefits
(753)
(205)
(41)
(3)
(794)
(208)
Other
59
89
224
65
(13)
(71)
270
83
11, 12, 15
Net cash provided by operating activities
1,045
3,031
1,430
1,154
(1,907)
(3,241)
568
944
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)
14,684
14,175
(336)
(472)
14,348
13,703
14
Proceeds from maturities and sales of marketable securities
18
58
227
142
245
200
Proceeds from sales of equipment on operating leases
1,001
1,011
1,001
1,011
Cost of receivables acquired (excluding receivables related to sales)
(12,875)
(14,238)
131
147
(12,744)
(14,091)
14
Purchases of marketable securities
(20)
(226)
(327)
(206)
(347)
(432)
Purchases of property and equipment
(555)
(718)
(1)
(555)
(719)
Cost of equipment on operating leases acquired
(1,363)
(1,516)
109
147
(1,254)
(1,369)
15
Decrease in investment in Financial Services
10
(10)
17
Increase in trade and wholesale receivables
(1,019)
(3,171)
1,019
3,171
14
Collections of receivables from unconsolidated affiliates
183
51
234
Collateral on derivatives – net
3
24
96
27
96
Other
(72)
(68)
(104)
(2)
1
(176)
(69)
Net cash provided by (used for) investing activities
(443)
(944)
299
(3,710)
923
2,984
779
(1,670)
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)
65
189
486
(131)
551
58
Change in intercompany receivables/payables
428
31
(428)
(31)
Proceeds from borrowings issued (original maturities greater than three months)
2,043
34
3,113
10,155
5,156
10,189
Payments of borrowings (original maturities greater than three months)
(766)
(1,012)
(4,071)
(7,127)
(4,837)
(8,139)
Repurchases of common stock
(838)
(2,422)
(838)
(2,422)
Capital returned to Equipment Operations
(10)
10
17
Dividends paid
(843)
(796)
(984)
(247)
984
247
(843)
(796)
13
Other
(4)
(27)
(6)
(25)
(10)
(52)
Net cash provided by (used for) financing activities
85
(4,003)
(1,890)
2,584
984
257
(821)
(1,162)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash
22
(2)
(5)
20
(5)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
709
(1,916)
(163)
23
546
(1,893)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period
5,643
5,755
1,990
1,865
7,633
7,620
Cash, Cash Equivalents, and Restricted Cash at End of Period
$
6,352
$
3,839
$
1,827
$
1,888
$
8,179
$
5,727
11 Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.
12 Reclassification of share-based compensation expense.
13 Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations operating activities.
14 Primarily reclassification of receivables related to the sale of equipment.
15 Reclassification of direct lease agreements with retail customers.
16 Reclassification of sales incentive accruals on receivables sold to financial services.
17 Elimination of change in investment from equipment operations to financial services.
19
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 2 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 1 | — | — |
| Recession recession, downturn, contraction, slowdown | 1 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 6 | — | — |
| Buybacks share repurchase, buyback program | 0 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor