Deere Reports Second Quarter Net Income of $2.370 Billion

• Quarterly results underscore sound execution in the face of challenging market conditions.

• Global agricultural and turf demand further softens while the construction industry remains stable.

• Full-year net income forecast updated to approximately $7.0 billion.

MOLINE, Ill., May 16, 2024 /PRNewswire/ -- Deere & Company (NYSE: DE) reported net income of $2.370 billion for the second quarter ended April 28, 2024, or $8.53 per share, compared with net income of $2.860 billion, or $9.65 per share, for the quarter ended April 30, 2023. For the first six months of the year, net income attributable to Deere & Company was $4.121 billion, or $14.74 per share, compared with $4.819 billion, or $16.18 per share, for the same period last year.

Worldwide net sales and revenues decreased 12 percent, to $15.235 billion, for the second quarter of 2024 and decreased 9 percent, to $27.420 billion, for six months. Net sales were $13.610 billion for the quarter and $24.097 billion for six months, compared with $16.079 billion and $27.481 billion last year.

"John Deere's second-quarter results were noteworthy in light of continued changes across the global agricultural sector," stated John C. May, chairman and chief executive officer. "Thanks to the dedication and hard work of our team, we continue to demonstrate structurally higher performance levels across business cycles and are benefitting from stability in construction end markets amid declining agricultural and turf demand."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2024 is forecasted to be approximately $7.0 billion.

"We are proactively managing our production and inventory levels to adapt to demand changes and position the business for the future," May explained. "Despite market conditions, we are committed to our strategy and are actively investing in and deploying innovative technologies, products, and solutions to ensure our customers' success."

Deere & Company		Second Quarter								Year to Date
$ in millions, except per share amounts		2024			2023			% Change		2024			2023			% Change
Net sales and revenues		$	15,235		$	17,387		-12 %		$	27,420		$	30,038		-9 %
Net income		$	2,370		$	2,860		-17 %		$	4,121		$	4,819		-14 %
Fully diluted EPS		$	8.53		$	9.65				$	14.74		$	16.18

Prior period results were affected by a special item. See Note 1 of the financial statements for further details.

Production & Precision Agriculture		Second Quarter
$ in millions		2024			2023			% Change
Net sales		$	6,581		$	7,822		-16 %
Operating profit		$	1,650		$	2,170		-24 %
Operating margin			25.1 %			27.7 %

Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit decreased due to lower shipment volumes and higher production costs, partially offset by price realization.

Production & Precision Agriculture Operating Profit; Second Quarter 2024 Compared to Second Quarter 2023; $ in millions

 

Small Agriculture & Turf		Second Quarter
$ in millions		2024			2023			% Change
Net sales		$	3,185		$	4,145		-23 %
Operating profit		$	571		$	849		-33 %
Operating margin			17.9 %			20.5 %

Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit decreased due to lower shipment volumes, partially offset by price realization.

Small Agriculture & Turf Operating Profit; Second Quarter 2024 Compared to Second Quarter 2023; $ in millions

 

Construction & Forestry		Second Quarter
$ in millions		2024			2023			% Change
Net sales		$	3,844		$	4,112		-7 %
Operating profit		$	668		$	838		-20 %
Operating margin			17.4 %			20.4 %

Construction and forestry sales decreased for the quarter due to lower shipment volumes. Operating profit decreased due to lower shipment volumes and higher SA&G and R&D expenses.

Construction & Forestry Operating Profit; Second Quarter 2024 Compared to Second Quarter 2023; $ in millions

 

Financial Services		Second Quarter
$ in millions		2024			2023			% Change
Net income		$	162		$	28		479 %

Financial services net income for the quarter increased due to income earned on higher average portfolio balances, partially offset by a higher provision for credit losses and less-favorable financing spreads. The results of the prior period were also affected by a correction of the accounting treatment for financing incentives offered to John Deere dealers. The cumulative effect of this correction, $173 million pretax ($135 million after-tax), was recorded in the second quarter of 2023.

Industry Outlook for Fiscal 2024
Agriculture & Turf
U.S. & Canada:
Large Ag						Down ~ 15%
Small Ag & Turf						Down ~ 10%
Europe						Down ~ 15%
South America (Tractors & Combines)						Down 15 to 20%
Asia						Down moderately
Construction & Forestry
U.S. & Canada:
Construction Equipment						Flat to Down 5%
Compact Construction Equipment						Flat
Global Forestry						Down ~ 10%
Global Roadbuilding						Flat to Down 5%

 

Deere Segment Outlook for Fiscal 2024				Currency		Price
$ in millions		Net Sales		Translation		Realization
Production & Precision Ag		Down 20% to 25%		~ Flat		+1.5 %
Small Ag & Turf		Down 20% to 25%		~ Flat		+1.5 %
Construction & Forestry		Down 5% to 10%		~ Flat		+1.5 %
Financial Services		Net Income		~$  770

Financial Services. Fiscal-year 2024 net income attributable to Deere & Company for the financial services operations is forecasted to be approximately $770 million. Results are expected to be higher than fiscal year 2023 due to income earned on a higher average portfolio, partially offset by a higher provision for credit losses and less-favorable financing spreads. A correction of the accounting treatment for financing incentives offered to John Deere dealers impacted 2023 financial results. The cumulative effect of this correction, $173 million pretax ($135 million after-tax), was recorded in the second quarter of 2023.

FORWARD-LOOKING STATEMENTS

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

Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:

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

• political, economic, and social instability of the geographies in which the company operates, including the ongoing war between Russia and Ukraine and the conflict in the Middle East;

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

• worldwide demand for food and different forms of renewable energy;

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

• the ability to understand and meet customers' changing expectations and demand for John Deere products and solutions;

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

• the ability to integrate new technology, including automation and machine learning, and deliver precision technology and solutions to customers;

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

• the ability to adapt in highly competitive markets;

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

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

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

• higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for John Deere products and solutions;

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

• delays or disruptions in the company's supply chain;

• our equipment fails to perform as expected, which could result in warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations;

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

• security breaches, cybersecurity attacks, technology failures, and other disruptions to John Deere information technology infrastructure and products;

• loss of or challenges to intellectual property rights;

• legislation introduced or enacted that could affect the company's business model and intellectual property, such as right to repair or right to modify legislation;

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

• events that damage the company's reputation or brand;

• the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, available farm acres, acreage planted, soil conditions, harvest yields, prices for commodities and livestock, input costs, and availability of transport for crops; and

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

Further information concerning the company and its businesses, including factors that could materially affect the financial results, is included in the company's filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.

 

DEERE & COMPANY SECOND QUARTER 2024 PRESS RELEASE (In millions of dollars) Unaudited
		Three Months Ended								Six Months Ended
		April 28			April 30			%		April 28			April 30			%
		2024			2023			Change		2024			2023			Change
Net sales and revenues:
Production & precision ag net sales		$	6,581		$	7,822		-16		$	11,430		$	13,021		-12
Small ag & turf net sales			3,185			4,145		-23			5,610			7,146		-21
Construction & forestry net sales			3,844			4,112		-7			7,057			7,314		-4
Financial services revenues			1,395			1,107		+26			2,770			2,147		+29
Other revenues			230			201		+14			553			410		+35
Total net sales and revenues		$	15,235		$	17,387		-12		$	27,420		$	30,038		-9
Operating profit: *
Production & precision ag		$	1,650		$	2,170		-24		$	2,695		$	3,378		-20
Small ag & turf			571			849		-33			897			1,296		-31
Construction & forestry			668			838		-20			1,234			1,463		-16
Financial services			209			41		+410			466			279		+67
Total operating profit			3,098			3,898		-21			5,292			6,416		-18
Reconciling items **			23			(47)					49			(69)
Income taxes			(751)			(991)		-24			(1,220)			(1,528)		-20
Net income attributable to Deere & Company		$	2,370		$	2,860		-17		$	4,121		$	4,819		-14

*	Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit for financial services includes the effect of interest expense and foreign exchange gains or losses.
**	Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, equity in income of unconsolidated affiliates, and net income attributable to noncontrolling interests.

 

DEERE & COMPANY STATEMENTS OF CONSOLIDATED INCOME For the Three and Six Months Ended April 28, 2024 and April 30, 2023 (In millions of dollars and shares except per share amounts) Unaudited
		Three Months Ended						Six Months Ended
		2024			2023			2024			2023
Net Sales and Revenues
Net sales		$	13,610		$	16,079		$	24,097		$	27,481
Finance and interest income			1,387			1,079			2,746			2,073
Other income			238			229			577			484
Total			15,235			17,387			27,420			30,038
Costs and Expenses
Cost of sales			9,157			10,730			16,357			18,663
Research and development expenses			565			547			1,098			1,043
Selling, administrative and general expenses			1,265			1,330			2,330			2,283
Interest expense			836			569			1,638			1,049
Other operating expenses			295			363			664			660
Total			12,118			13,539			22,087			23,698
Income of Consolidated Group before Income Taxes			3,117			3,848			5,333			6,340
Provision for income taxes			751			991			1,220			1,528
Income of Consolidated Group			2,366			2,857			4,113			4,812
Equity in income of unconsolidated affiliates			2			2			3			3
Net Income			2,368			2,859			4,116			4,815
Less: Net loss attributable to noncontrolling interests			(2)			(1)			(5)			(4)
Net Income Attributable to Deere & Company		$	2,370		$	2,860		$	4,121		$	4,819
Per Share Data
Basic		$	8.56		$	9.69		$	14.80		$	16.26
Diluted			8.53			9.65			14.74			16.18
Dividends declared			1.47			1.25			2.94			2.45
Dividends paid			1.47			1.20			2.82			2.33
Average Shares Outstanding
Basic			276.8			295.1			278.4			296.3
Diluted			277.9			296.5			279.5			297.8

See Condensed Notes to Interim Consolidated Financial Statements.

 

DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (In millions of dollars) Unaudited
		April 28			October 29			April 30
		2024			2023			2023
Assets
Cash and cash equivalents		$	5,553		$	7,458		$	5,267
Marketable securities			1,094			946			856
Trade accounts and notes receivable – net			8,880			7,739			9,971
Financing receivables – net			45,278			43,673			38,954
Financing receivables securitized – net			7,262			7,335			5,659
Other receivables			2,535			2,623			2,593
Equipment on operating leases – net			6,965			6,917			6,524
Inventories			8,443			8,160			9,713
Property and equipment – net			7,034			6,879			6,288
Goodwill			3,936			3,900			3,963
Other intangible assets – net			1,064			1,133			1,222
Retirement benefits			3,056			3,007			3,519
Deferred income taxes			1,936			1,814			1,308
Other assets			2,592			2,503			2,510
Total Assets		$	105,628		$	104,087		$	98,347
Liabilities and Stockholders' Equity
Liabilities
... Short-term borrowings		$	17,699		$	17,939		$	17,109
Short-term securitization borrowings			6,976			6,995			5,379
Accounts payable and accrued expenses			14,609			16,130			14,716
Deferred income taxes			491			520			511
Long-term borrowings			40,962			38,477			35,611
Retirement benefits and other liabilities			2,105			2,140			2,520
Total liabilities			82,842			82,201			75,846
Redeemable noncontrolling interest			98			97			102
Stockholders' Equity
Total Deere & Company stockholders' equity			22,684			21,785			22,395
Noncontrolling interests			4			4			4
Total stockholders' equity			22,688			21,789			22,399
Total Liabilities and Stockholders' Equity		$	105,628		$	104,087		$	98,347

See Condensed Notes to Interim Consolidated Financial Statements.

 

DEERE & COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS For the Six Months Ended April 28, 2024 and April 30, 2023 (In millions of dollars) Unaudited
		2024			2023
Cash Flows from Operating Activities
Net income		$	4,116		$	4,815
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses			131			(89)
Provision for depreciation and amortization			1,045			995
Other non-cash adjustments (Note 1)						173
Share-based compensation expense			104			54
Credit for deferred income taxes			(120)			(377)
Changes in assets and liabilities:
Receivables related to sales			(2,469)			(4,407)
Inventories			(409)			(982)
Accounts payable and accrued expenses			(1,300)			(313)
Accrued income taxes payable/receivable			(29)			(96)
Retirement benefits			(208)			(68)
Other			83			148
Net cash provided by (used for) operating activities			944			(147)
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)			13,703			12,593
Proceeds from maturities and sales of marketable securities			200			98
Proceeds from sales of equipment on operating leases			1,011			993
Cost of receivables acquired (excluding receivables related to sales)			(14,091)			(13,451)
Purchases of marketable securities			(432)			(188)
Purchases of property and equipment			(719)			(584)
Cost of equipment on operating leases acquired			(1,369)			(1,229)
Collateral on derivatives – net			96			367
Other			(69)			(93)
Net cash used for investing activities			(1,670)			(1,494)
Cash Flows from Financing Activities
Net proceeds in short-term borrowings (original maturities three months or less)			58			3,992
Proceeds from borrowings issued (original maturities greater than three months)			10,189			4,868
Payments of borrowings (original maturities greater than three months)			(8,139)			(3,567)
Repurchases of common stock			(2,422)			(2,546)
Dividends paid			(796)			(697)
Other			(52)			(33)
Net cash provided by (used for) financing activities			(1,162)			2,017
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash			(5)			70
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash			(1,893)			446
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			7,620			4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period		$	5,727		$	5,387

See Condensed Notes to Interim Consolidated Financial Statements.

 

	DEERE & COMPANY
	Condensed Notes to Interim Consolidated Financial Statements
	(In millions of dollars) Unaudited
(1)	In the second quarter of 2023, the company corrected the accounting treatment for financing incentives offered to John Deere dealers, which impacted the timing of expense recognition and the presentation of incentive costs in the consolidated financial statements. The cumulative effect of this correction, $173 million pretax ($135 million after-tax), was recorded in the second quarter of 2023 in "Selling, administrative and general expenses" by financial services.
(2)	The consolidated financial statements represent the consolidation of all Deere & Company's subsidiaries. The supplemental consolidating data is presented for informational purposes. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidated financial statements. In the supplemental consolidating data in Note 3 to the financial statements, the "Equipment Operations" represents the enterprise without "Financial Services", which include the company's production and precision agriculture operations, small agriculture and turf operations, and construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within "Financial Services."

 

DEERE & COMPANY (3) SUPPLEMENTAL CONSOLIDATING DATA STATEMENTS OF INCOME For the Three Months Ended April 28, 2024 and April 30, 2023 (In millions of dollars) Unaudited
		EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		2024			2023			2024			2023			2024			2023			2024			2023
Net Sales and Revenues
Net sales		$	13,610		$	16,079														$	13,610		$	16,079
Finance and interest income			129			121		$	1,496		$	1,206		$	(238)		$	(248)			1,387			1,079	1
Other income			198			185			92			91			(52)			(47)			238			229	2, 3
Total			13,937			16,385			1,588			1,297			(290)			(295)			15,235			17,387
Costs and Expenses
Cost of sales			9,164			10,737									(7)			(7)			9,157			10,730	4
Research and development expenses			565			547															565			547
Selling, administrative and general expenses			1,007			935			260			397			(2)			(2)			1,265			1,330	4
Interest expense			114			103			780			540			(58)			(74)			836			569	1
Interest compensation to Financial Services			180			174									(180)			(174)							1
Other operating expenses			1			85			337			316			(43)			(38)			295			363	3, 5
Total			11,031			12,581			1,377			1,253			(290)			(295)			12,118			13,539
Income before Income Taxes			2,906			3,804			211			44									3,117			3,848
Provision for income taxes			700			974			51			17									751			991
Income after Income Taxes			2,206			2,830			160			27									2,366			2,857
Equity in income of unconsolidated affiliates						1			2			1									2			2
Net Income			2,206			2,831			162			28									2,368			2,859
Less: Net loss attributable to noncontrolling interests			(2)			(1)															(2)			(1)
Net Income Attributable to Deere & Company		$	2,208		$	2,832		$	162		$	28								$	2,370		$	2,860

1	Elimination of intercompany interest income and expense.
2	Elimination of Equipment Operations' margin from inventory transferred to equipment on operating leases.
3	Elimination of income and expense between Equipment Operations and Financial Services related to intercompany guarantees of investments in certain international markets and intercompany service revenues and expenses.
4	Elimination of intercompany service fees.
5	Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.

 

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF INCOME For the Six Months Ended April 28, 2024 and April 30, 2023 (In millions of dollars) Unaudited
		EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		2024			2023			2024			2023			2024			2023			2024			2023
Net Sales and Revenues
Net sales		$	24,097		$	27,481														$	24,097		$	27,481
Finance and interest income			285			234		$	2,929		$	2,274		$	(468)		$	(435)			2,746			2,073	1
Other income			487			417			211			268			(121)			(201)			577			484	2, 3
Total			24,869			28,132			3,140			2,542			(589)			(636)			27,420			30,038
Costs and Expenses
Cost of sales			16,371			18,675									(14)			(12)			16,357			18,663	4
Research and development expenses			1,098			1,043															1,098			1,043
Selling, administrative and general expenses			1,882			1,719			453			569			(5)			(5)			2,330			2,283	4
Interest expense			223			204			1,542			983			(127)			(138)			1,638			1,049	1
Interest compensation to Financial Services			341			297									(341)			(297)							1
Other operating expenses			91			137			675			707			(102)			(184)			664			660	3, 5
Total			20,006			22,075			2,670			2,259			(589)			(636)			22,087			23,698
Income before Income Taxes			4,863			6,057			470			283									5,333			6,340
Provision for income taxes			1,117			1,455			103			73									1,220			1,528
Income after Income Taxes			3,746			4,602			367			210									4,113			4,812
Equity in income of unconsolidated affiliates						1			3			2									3			3
Net Income			3,746			4,603			370			212									4,116			4,815
Less: Net loss attributable to noncontrolling interests			(5)			(4)															(5)			(4)
Net Income Attributable to Deere & Company		$	3,751		$	4,607		$	370		$	212								$	4,121		$	4,819

1	Elimination of intercompany interest income and expense.
2	Elimination of Equipment Operations' margin from inventory transferred to equipment on operating leases.
3	Elimination of income and expense between Equipment Operations and Financial Services related to intercompany guarantees of investments in certain international markets and intercompany service revenues and expenses.
4	Elimination of intercompany service fees.
5	Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.

 

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) CONDENSED BALANCE SHEETS (In millions of dollars) Unaudited
		EQUIPMENT									FINANCIAL
		OPERATIONS									SERVICES									ELIMINATIONS									CONSOLIDATED
		Apr 28			Oct 29			Apr 30			Apr 28			Oct 29			Apr 30			Apr 28			Oct 29			Apr 30			Apr 28			Oct 29			Apr 30
		2024			2023			2023			2024			2023			2023			2024			2023			2023			2024			2023			2023
Assets
Cash and cash equivalents		$	3,800		$	5,720		$	3,587		$	1,753		$	1,738		$	1,680											$	5,553		$	7,458		$	5,267
Marketable securities			148			104			14			946			842			842												1,094			946			856
Receivables from Financial Services			4,480			4,516			5,899											$	(4,480)		$	(4,516)		$	(5,899)										6
Trade accounts and notes receivable – net			1,320			1,320			1,562			10,263			8,687			10,422			(2,703)			(2,268)			(2,013)			8,880			7,739			9,971	7
Financing receivables – net			80			64			54			45,198			43,609			38,900												45,278			43,673			38,954
Financing receivables securitized – net									1			7,262			7,335			5,658												7,262			7,335			5,659
Other receivables			1,822			1,813			2,201			760			869			481			(47)			(59)			(89)			2,535			2,623			2,593	7
Equipment on operating leases  – net												6,965			6,917			6,524												6,965			6,917			6,524
Inventories			8,443			8,160			9,713																					8,443			8,160			9,713
Property and equipment – net			6,999			6,843			6,254			35			36			34												7,034			6,879			6,288
Goodwill			3,936			3,900			3,963																					3,936			3,900			3,963
Other intangible assets – net			1,064			1,133			1,222																					1,064			1,133			1,222
Retirement benefits			2,980			2,936			3,450			77			72			69			(1)			(1)						3,056			3,007			3,519	8
Deferred income taxes			2,210			2,133			1,355			71			68			59			(345)			(387)			(106)			1,936			1,814			1,308	9
Other assets			2,105			1,948			1,961			504			559			564			(17)			(4)			(15)			2,592			2,503			2,510
Total Assets		$	39,387		$	40,590		$	41,236		$	73,834		$	70,732		$	65,233		$	(7,593)		$	(7,235)		$	(8,122)		$	105,628		$	104,087		$	98,347
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings		$	1,055		$	1,230		$	1,755		$	16,644		$	16,709		$	15,354											$	17,699		$	17,939		$	17,109
Short-term securitization borrowings												6,976			6,995			5,379												6,976			6,995			5,379
Payables to Equipment Operations												4,480			4,516			5,899		$	(4,480)		$	(4,516)		$	(5,899)										6
Accounts payable and accrued expenses			13,771			14,862			13,759			3,605			3,599			3,074			(2,767)			(2,331)			(2,117)			14,609			16,130			14,716	7
Deferred income taxes			421			452			402			415			455			215			(345)			(387)			(106)			491			520			511	9
Long-term borrowings			6,575			7,210			7,310			34,387			31,267			28,301												40,962			38,477			35,611
Retirement benefits and other liabilities			1,995			2,032			2,410			111			109			110			(1)			(1)						2,105			2,140			2,520	8
Total liabilities			23,817			25,786			25,636			66,618			63,650			58,332			(7,593)			(7,235)			(8,122)			82,842			82,201			75,846
Redeemable noncontrolling interest			98			97			102																					98			97			102
Stockholders' Equity
Total Deere & Company stockholders' equity			22,684			21,785			22,395			7,216			7,082			6,901			(7,216)			(7,082)			(6,901)			22,684			21,785			22,395	10
Noncontrolling interests			4			4			4																					4			4			4
Financial Services equity			(7,216)			(7,082)			(6,901)												7,216			7,082			6,901										10
Adjusted total stockholders' equity			15,472			14,707			15,498			7,216			7,082			6,901												22,688			21,789			22,399
Total Liabilities and Stockholders' Equity		$	39,387		$	40,590		$	41,236		$	73,834		$	70,732		$	65,233		$	(7,593)		$	(7,235)		$	(8,122)		$	105,628		$	104,087		$	98,347

6	Elimination of receivables / payables between Equipment Operations and Financial Services.
7	Primarily reclassification of sales incentive accruals on receivables sold to Financial Services.
8	Reclassification of net pension assets / liabilities.
9	Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.
10	Elimination of Financial Services' equity.

 

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF CASH FLOWS For the Six Months Ended April 28, 2024 and April 30, 2023 (In millions of dollars) Unaudited
		EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		2024			2023			2024			2023			2024			2023			2024			2023
Cash Flows from Operating Activities
Net income		$	3,746		$	4,603		$	370		$	212								$	4,116		$	4,815
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses			10			4			121			(93)									131			(89)
Provision for depreciation and amortization			608			565			509			500		$	(72)		$	(70)			1,045			995	11
Other non-cash adjustments (Note 1)												173												173
Share-based compensation expense															104			54			104			54	12
Distributed earnings of Financial Services			247			12									(247)			(12)							13
Credit for deferred income taxes			(74)			(304)			(46)			(73)									(120)			(377)
Changes in assets and liabilities:
Receivables related to sales			(58)			(255)									(2,411)			(4,152)			(2,469)			(4,407)	14, 16
Inventories			(300)			(910)									(109)			(72)			(409)			(982)	15
Accounts payable and accrued expenses			(1,012)			161			147			243			(435)			(717)			(1,300)			(313)	16
Accrued income taxes payable/receivable			(20)			(97)			(9)			1									(29)			(96)
Retirement benefits			(205)			(67)			(3)			(1)									(208)			(68)
Other			89			54			65			103			(71)			(9)			83			148	11, 12, 15
Net cash provided by (used for) operating activities			3,031			3,766			1,154			1,065			(3,241)			(4,978)			944			(147)
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)									14,175			13,169			(472)			(576)			13,703			12,593	14
Proceeds from maturities and sales of marketable securities			58			62			142			36									200			98
Proceeds from sales of equipment on operating leases									1,011			993									1,011			993
Cost of receivables acquired (excluding receivables related to sales)									(14,238)			(13,584)			147			133			(14,091)			(13,451)	14
Purchases of marketable securities			(226)			(21)			(206)			(167)									(432)			(188)
Purchases of property and equipment			(718)			(583)			(1)			(1)									(719)			(584)
Cost of equipment on operating leases acquired									(1,516)			(1,327)			147			98			(1,369)			(1,229)	15
Decrease (increase) in investment in Financial Services			10			(799)									(10)			799							17
Increase in trade and wholesale receivables									(3,171)			(5,310)			3,171			5,310							14
Collateral on derivatives – net									96			367									96			367
Other			(68)			(119)			(2)			25			1			1			(69)			(93)
Net cash used for investing activities			(944)			(1,460)			(3,710)			(5,799)			2,984			5,765			(1,670)			(1,494)
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)			189			(225)			(131)			4,217									58			3,992
Change in intercompany receivables/payables			31			932			(31)			(932)
Proceeds from borrowings issued (original maturities greater than three months)			34			41			10,155			4,827									10,189			4,868
Payments of borrowings (original maturities greater than three months)			(1,012)			(47)			(7,127)			(3,520)									(8,139)			(3,567)
Repurchases of common stock			(2,422)			(2,546)															(2,422)			(2,546)
Capital Investment from Equipment Operations									(10)			799			10			(799)							17
Dividends paid			(796)			(697)			(247)			(12)			247			12			(796)			(697)	13
Other			(27)			(5)			(25)			(28)									(52)			(33)
Net cash provided by (used for) financing activities			(4,003)			(2,547)			2,584			5,351			257			(787)			(1,162)			2,017
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash						62			(5)			8									(5)			70
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash			(1,916)			(179)			23			625									(1,893)			446
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			5,755			3,781			1,865			1,160									7,620			4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period		$	3,839		$	3,602		$	1,888		$	1,785								$	5,727		$	5,387

11	Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.
12	Reclassification of share-based compensation expense.
13	Elimination of dividends from Financial Services to the Equipment Operations, which are included in the Equipment Operations operating activities.
14	Primarily reclassification of receivables related to the sale of equipment.
15	Reclassification of direct lease agreements with retail customers.
16	Reclassification of sales incentive accruals on receivables sold to Financial Services.
17	Elimination of change in investment from Equipment Operations to Financial Services.

 

Cision

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SOURCE John Deere Company