Financial Forecasting

Prior to beginning work on this discussion, read Chapter 4: Financial Forecasting from your textbook.

Before developing a pro forma income statement, one must first prepare a sales projection. Explain why this first step is so critical based on your reading. Then, review the Deere & Company quarterly report you downloaded for the Week 1 Making Sound Investment Decisions discussion. Describe how it addresses the sales results, and outline the sales projections issues this company may encounter.

250 words

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 2054

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 193

For the quarterly period ended January 26, 202

☐ 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: 1-41

DEERE & COMPANY
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of
incorporation or organization)

36-2382580
(IRS Employer Identification No.)

One John Deere Place
Moline, Illinois 61265

(Address of principal executive offices, zip code)
Registrant’s Telephone Number, including area code: (309) 765-8000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbols Name of each exchange on which registered
Common stock, $1 par value DE New York Stock Exchange
6.55% Debentures Due 2028 DE28 New York Stock Exchange

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 ☒ No ☐

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 1

months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

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 ☒ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒

At January 26, 2025, 271,413,927 shares of common stock, $1 par value, of the registrant were outstanding.

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

DEERE & COMPANY
STATEMENTS OF CONSOLIDATED INCOME
For the Three Months Ended January 26, 2025 and January 28, 2024
(In millions of dollars and shares except per share amounts) Unaudited
2025 2024
Net Sales and Revenues
Net sales $ 6,809 $ 10,486
Finance and interest income 1,453 1,360
Other income 246 339

Total 8,508 12,185

Costs and Expenses
Cost of sales 5,037 7,200
Research and development expenses 526 533
Selling, administrative and general expenses 972 1,066
Interest expense 829 802
Other operating expenses 249 369

Total 7,613 9,970

Income of Consolidated Group before Income Taxes 895 2,215
Provision for income taxes 27 469

Income of Consolidated Group 868 1,746
Equity in income (loss) of unconsolidated affiliates (1) 2

Net Income 867 1,748

Less: Net loss attributable to noncontrolling interests (2) (3)
Net Income Attributable to Deere & Company $ 869 $ 1,751

Per Share Data
Basic $ 3.20 $ 6.25
Diluted 3.19 6.23
Dividends declared 1.62 1.47
Dividends paid 1.47 1.35

Average Shares Outstanding
Basic 271.6 279.9
Diluted 272.3 281.1

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
For the Three Months Ended January 26, 2025 and January 28, 2024
(In millions of dollars) Unaudited

2025 20

Net Income $ 867 $ 1,748

Other Comprehensive Income (Loss), Net of Income Taxes
Retirement benefits adjustment 3 (21)
Cumulative translation adjustment (451) 274
Unrealized loss on derivatives (1) (15)
Unrealized gain (loss) on debt securities (15) 13

Other Comprehensive Income (Loss), Net of Income Taxes (464) 251

Comprehensive Income of Consolidated Group 403 1,999
Less: Comprehensive loss attributable to noncontrolling interests (5) (2)

Comprehensive Income Attributable to Deere & Company $ 408 $ 2,001

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited

January 26 October 27 January 28
2025 2024 2024

Assets
Cash and cash equivalents $ 6,601 $ 7,324 $ 5,137
Marketable securities 1,214 1,154 1,136
Trade accounts and notes receivable – net 4,931 5,326 7,795
Financing receivables – net 41,396 44,309 43,708
Financing receivables securitized – net 8,257 8,723 6,400
Other receivables 2,979 2,545 2,017
Equipment on operating leases – net 7,157 7,451 6,751
Inventories 7,744 7,093 8,937
Property and equipment – net 7,425 7,580 6,914
Goodwill 3,872 3,959 3,966
Other intangible assets – net 937 999 1,112
Retirement benefits 3,018 2,921 3,087
Deferred income taxes 1,852 2,086 1,833
Other assets 2,807 2,906 2,578
Assets held for sale 2,929 2,944
Total Assets $ 103,119 $ 107,320 $ 101,371

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings $ 12,811 $ 13,533 $ 17,11

Short-term securitization borrowings 8,014 8,431 6,116
Accounts payable and accrued expenses 12,162 14,543 13,361
Deferred income taxes 448 478 550
Long-term borrowings 43,556 43,229 39,933
Retirement benefits and other liabilities 1,734 2,354 2,115
Liabilities held for sale 1,830 1,8

Total liabilities 80,555 84,395 79,192

Commitments and contingencies (Note 16)
Redeemable noncontrolling interest 78 82 100

Stockholders’ Equity
Common stock, $1 par value (issued shares at

January 26, 2025 – 536,431,204) 5,526 5,489 5,335
Common stock in treasury (35,709) (35,349) (32,663)
Retained earnings 56,829 56,402 52,266
Accumulated other comprehensive income (loss) (4,167) (3,706) (2,863)
Total Deere & Company stockholders’ equity 22,479 22,836 22,075
Noncontrolling interests 7 7 4

Total stockholders’ equity 22,486 22,843 22,079
Total Liabilities and Stockholders’ Equity $ 103,119 $ 107,320 $ 101,371

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Three Months Ended January 26, 2025 and January 28, 2024
(In millions of dollars) Unaudited

2025 2024
Cash Flows from Operating Activities
Net income $ 867 $ 1,74

Adjustments to reconcile net income to net cash used for operating activities:

Provision for credit losses 69 31
Provision for depreciation and amortization 549 520
Impairments and other adjustments (32)
Share-based compensation expense 28 46
Provision for deferred income taxes 208 27
Changes in assets and liabilities:

Receivables related to sales 1,063 (277)
Inventories (795) (723)
Accounts payable and accrued expenses (1,845) (2,327)
Accrued income taxes payable/receivable (540) 183
Retirement benefits (688) (129)

Other (16) (7)
Net cash used for operating activities (1,132) (908)

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales) 8,137 7,752
Proceeds from maturities and sales of marketable securities 61 184
Proceeds from sales of equipment on operating leases 433 506
Cost of receivables acquired (excluding receivables related to sales) (6,045) (6,447)
Purchases of marketable securities (141) (229)
Purchases of property and equipment (352) (362)
Cost of equipment on operating leases acquired (439) (454)
Collateral on derivatives – net (191) 310
Other (47) (43)

Net cash provided by investing activities 1,416 1,217

Cash Flows from Financing Activities
Net payments in short-term borrowings (original maturities three months or less) (1,484) (2,951)
Proceeds from borrowings issued (original maturities greater than three months) 3,168 5,287
Payments of borrowings (original maturities greater than three months) (1,753) (3,237)
Repurchases of common stock (441) (1,328)
Dividends paid (403) (386)
Other (10) (30)

Net cash used for financing activities (923) (2,645)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash (87) 16

Net Decrease in Cash, Cash Equivalents, and Restricted Cash (726) (2,320)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 7,633 7,620
Cash, Cash Equivalents, and Restricted Cash at End of Period $ 6,907 $ 5,300

Components of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents $ 6,601 $ 5,137
Cash, cash equivalents, and restricted cash (Assets held for sale) 116
Restricted cash (Other assets) 190 163
Total Cash, Cash Equivalents, and Restricted Cash $ 6,907 $ 5,300

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY
STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY
For the Three Months Ended January 26, 2025 and January 28, 2024
(In millions of dollars) Unaudited

Total Stockholders’ Equity
Deere & Company Stockholders

Accumulated
Total Other Redeemable
Stockholders’ Common Treasury Retained Comprehensive Noncontrolling Noncontrolling
Equity Stock Stock Earnings Income (Loss) Interests Interest

Balance October 29, 2023 $ 21,789 $ 5,303 $ (31,335) $ 50,931 $ (3,114) $ 4 $ 97
Net income (loss) 1,752 1,751 1 (4)
Other comprehensive income 251 251 1
Repurchases of common stock (1,340) (1,340)
Treasury shares reissued 12 12
Dividends declared (411) (411)
Share based awards and other 26 32 (5) (1) 6
Balance January 28, 2024 $ 22,079 $ 5,335 $ (32,663) $ 52,266 $ (2,863) $ 4 $ 100

Balance October 27, 2024 $ 22,843 $ 5,489 $ (35,349) $ 56,402 $ (3,706) $ 7 $ 82
Net income (loss) 869 869 (2)
Other comprehensive loss (461) (461) (3)
Repurchases of common stock (384) (384)
Treasury shares reissued 24 24
Dividends declared (441) (441)
Share based awards and other 36 37 (1) 1
Balance January 26, 2025 $ 22,486 $ 5,526 $ (35,709) $ 56,829 $ (4,167) $ 7 $ 78

See Condensed Notes to Interim Consolidated Financial Statements.

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(1) ORGANIZATION AND CONSOLIDATION

Deere & Company has been developing innovative solutions to help its customers become more profitable for more than
185 years. References to “Deere & Company,” “John 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 (John Deere Financial or FS). References to “agriculture
and turf” include both PPA and SAT.

We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The first quarter ends for
fiscal year 2025 and 2024 were January 26, 2025 and January 28, 2024, respectively. Both periods contained 13 weeks. Fiscal
year 2025 will contain 53 weeks, with the additional week occurring in the fourth quarter. Unless otherwise stated, references
to particular years, quarters, or months refer to our fiscal years generally ending in October and the associated periods in those
fiscal years.

All amounts are presented in millions of dollars, unless otherwise specified. Certain prior period amounts have been
reclassified to conform to current period presentation.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS
Quarterly Financial Statements
The interim consolidated financial statements of Deere & Company have been prepared by us, without audit, pursuant to the
rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures
normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the
U.S. have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been
included. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and
cash flows at the dates and for the periods presented. It is suggested these interim consolidated financial statements be read in
conjunction with the consolidated financial statements and the notes thereto appearing in our latest Annual Report on Form
10-K. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year.

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.

New Accounting Pronouncements Adopted
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 2025, none of which had a material effect on our
consolidated financial statements.

No. 2023-05 — Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement
No. 2022-03 — Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to

Contractual Sale Restrictions

Accounting Pronouncements to be Adopted
In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense
Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which expands disclosures
about specific expense categories presented on the face of the income statement. In January 2025, the FASB issued ASU 2025-
01, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40), which
clarifies the effective date of ASU 2024-03. The ASU will be effective for us beginning with our annual reporting for fiscal
year 2028 and interim periods thereafter. We are assessing the effect of ASU 2024-03 on our related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures,
which expands disclosures in an entity’s income tax rate reconciliation table and cash taxes paid both in the U.S. and foreign
jurisdictions. The ASU will be effective for us beginning with our annual reporting for fiscal year 2026. We are assessing the
effect of this update on our related disclosures.

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

No. 2024-04 — Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible
Debt Instruments

No. 2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures
No. 2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and

Simplification Initiative

(3) REVENUE RECOGNITION

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

Three Months Ended January 26, 20

PPA SAT CF FS Total

Primary geographic markets:
United States $ 1,555 $ 949 $ 1,113 $ 1,085 $ 4,702
Canada 354 79 101 187 721
Western Europe 277 352 344 43 1,016
Central Europe and CIS 67 39 71 4 181
Latin America 715 80 205 96 1,096
Asia, Africa, Oceania, and Middle East 205 308 224 55 792

Total $ 3,173 $ 1,807 $ 2,058 $ 1,470 $ 8,508

Major product lines:
Production agriculture $ 3,002 $ 3,002
Small agriculture $ 1,234 1,2

Turf 463 463
Construction $ 770 770
Compact construction 361 361
Roadbuilding 596 596
Forestry 226 226
Financial products 55 33 21 $ 1,470 1,579
Other 116 77 84 277

Total $ 3,173 $ 1,807 $ 2,058 $ 1,470 $ 8,508

Revenue recognized:
At a point in time $ 3,086 $ 1,760 $ 2,028 $ 29 $ 6,903
Over time 87 47 30 1,441 1,605

Total $ 3,173 $ 1,807 $ 2,058 $ 1,470 $ 8,508

Three Months Ended January 28, 2024
PPA SAT CF FS Total

Primary geographic markets:
United States $ 2,721 $ 1,345 $ 2,095 $ 970 $ 7,131
Canada 386 118 210 172 886
Western Europe 503 517 361 40 1,421
Central Europe and CIS 179 73 94 8 354
Latin America 819 98 256 130 1,303
Asia, Africa, Oceania, and Middle East 435 341 258 56 1,090

Total $ 5,043 $ 2,492 $ 3,274 $ 1,376 $ 12,185

Major product lines:
Production agriculture $ 4,791 $ 4,791
Small agriculture $ 1,718 1,7

Turf 649 649
Construction $ 1,483 1,483
Compact construction 626 626
Roadbuilding 763 763
Forestry 292 292
Financial products 60 26 18 $ 1,376 1,480
Other 192 99 92 383

Total $ 5,043 $ 2,492 $ 3,274 $ 1,376 $ 12,185

Revenue recognized:
At a point in time $ 4,955 $ 2,456 $ 3,243 $ 28 $ 10,682
Over time 88 36 31 1,348 1,503

Total $ 5,043 $ 2,492 $ 3,274 $ 1,376 $ 12,185

We invoice in advance of recognizing the revenue of certain products and 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 $2,027, $1,923, and $1,747 at January 26, 2025, October 27, 2024, and January 28, 2024, 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 $197 and $230 during the three months ended January 26, 2025 and
January 28, 2024, respectively.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $1,734 at
January 26, 2025. The estimated revenue to be recognized by fiscal year follows: remainder of 2025 – $395, 2026 – $444,
2027 – $352, 2028 – $235, 2029 – $144, 2030 – $102, and later years – $62. 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.

(4) OTHER COMPREHENSIVE INCOME ITEMS

The after-tax components of accumulated other comprehensive income (loss) follow:

January 26 October 27 January 28
2025 2024 2024

Retirement benefits adjustment $ (1,271) $ (1,274) $ (866)
Cumulative translation adjustment (2,734) (2,286) (1,877)
Unrealized loss on derivatives (73) (72) (23)
Unrealized loss on debt securities (89) (74) (97)

Accumulated other comprehensive income (loss) $ (4,167) $ (3,706) $ (2,863)

The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other
comprehensive income (loss).

Before Tax After
Tax (Expense) Tax

Three Months Ended January 26, 2025 Amount Credit Amount
Cumulative translation adjustment $ (449) $ 1 $ (448)
Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss) 7 (2) 5
Reclassification of realized (gain) loss to Interest expense (8) 2 (6)
Net unrealized gain (loss) on derivatives (1) (1)

Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss) (19) 4 (15)
Net unrealized gain (loss) on debt securities (19) 4 (15)

Retirement benefits adjustment:
Net actuarial gain (loss) 6 (1) 5
Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss (11) 3 (8)
Prior service (credit) cost 9 (3) 6

Net unrealized gain (loss) on retirement benefits adjustment 4 (1) 3
Total other comprehensive income (loss) $ (465) $ 4 $ (461)

Before Tax After
Tax (Expense) Tax
Three Months Ended January 28, 2024 Amount Credit Amount
Cumulative translation adjustment $ 273 $ 1 $ 274
Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss) (8) 2 (6)
Reclassification of realized (gain) loss to Interest expense (11) 2 (9)
Net unrealized gain (loss) on derivatives (19) 4 (15)

Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss) 1 6 7
Reclassification of realized (gain) loss to Other income 8 (2) 6
Net unrealized gain (loss) on debt securities 9 4 13

Retirement benefits adjustment:
Net actuarial gain (loss) (17) 4 (13)
Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss (20) 5 (15)
Prior service (credit) cost 9 (2) 7

Net unrealized gain (loss) on retirement benefits adjustment (28) 7 (21)
Total other comprehensive income (loss) $ 235 $ 16 $ 251

(5) EARNINGS PER SHARE

A reconciliation of basic and diluted net income per share attributable to Deere & Company follows in millions, except per
share amounts:

Three Months Ended
January 26 January 28
2025 2024
Net income attributable to Deere & Company $ 869 $ 1,751
Average shares outstanding 271.6 279.9

Basic per share $ 3.20 $ 6.25

Average shares outstanding 271.6 279.9
Effect of dilutive stock options and unvested restricted stock units .7 1.2

Total potential shares outstanding 272.3 281.1
Diluted per share $ 3.19 $ 6.23

Shares excluded from EPS calculation, as antidilutive .3 .2

(6) 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 components of net periodic pension and OPEB (benefit) cost
consisted of the following:

Three Months Ended
January 26 January 28
2025 2024
Pensions:
Service cost $ 65 $ 58
Interest cost 128 136
Expected return on plan assets (254) (241)
Amortization of actuarial gain (1) (4)
Amortization of prior service cost 10 10

Net benefit $ (52) $ (41)

OPEB:
Service cost $ 5 $ 5
Interest cost 40 43
Expected return on plan assets (28) (27)
Amortization of actuarial gain (10) (16)
Amortization of prior service credit (1) (1)

Net cost $ 6 $ 4

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

During the first three months of 2025, we contributed and expect to contribute the following amounts to our pension and
OPEB plans:

Pensions OPEB
Contributed $ 28 $ 622
Expected contributions remainder of the year 72 38

In the first quarter of 2025, a committee of our Board of Directors approved and a $520 voluntary contribution was made to a
U.S. OPEB plan. This contribution increased plan assets.

(7) Segment Data

Information relating to operations by operating segment follows:

Three Months Ended
January 26 January 28 %
2025 2024 Change
Net sales and revenues

PPA net sales $ 3,067 $ 4,849 -37
SAT net sales 1,748 2,425 -28
CF net sales 1,994 3,212 -38
FS revenues 1,470 1,376 +7
Other revenues 229 323 -29

Total net sales and revenues $ 8,508 $ 12,185 -30
Operating profit

PPA $ 338 $ 1,045 -68
SAT 124 326 -62
CF 65 566 -89
FS 266 257 +4

Total operating profit 793 2,194 -64
Reconciling items 103 26 +296
Income taxes (27) (469) -94

Net income attributable to Deere & Company $ 869 $ 1,751 -50

Intersegment sales and revenues:
PPA net sales $ 8
SAT net sales 1
CF net sales
FS revenues $ 103 176

Operating profit for PPA, SAT, and CF 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 to net income are primarily corporate
expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and OPEB benefit (cost)
amounts excluding the service cost component, and net income attributable to noncontrolling interests.

Identifiable operating assets were as follows:

January 26 October 27 January 28
2025 2024 2024

PPA $ 8,773 $ 8,696 $ 9,059
SAT 4,179 4,130 4,426
CF 7,237 7,137 7,371
FS 69,686 73,612 69,900
Corporate 13,244 13,745 10,615

Total assets $ 103,119 $ 107,320 $ 101,371

(8) FINANCING RECEIVABLES

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.

The credit quality and aging analysis of retail notes, financing leases, and revolving charge accounts (collectively, retail
customer receivables) by year of origination was as follows:

January 26, 2025

2025 2024 2023 2022 2021
Prior
Years

Revolving
Charge

Accounts Total
Retail customer receivables:

Agriculture and turf
Current $ 2,421 $ 12,687 $ 7,437 $ 4,560 $ 2,387 $ 903 $ 3,027 $ 33,422
30-59 days past due 8 113 94 51 27 12 128 433
60-89 days past due 1 44 38 21 10 5 24 143
90+ days past due 2 1 4 7
Non-performing 44 120 81 49 33 15 342

Construction and forestry
Current 883 2,834 1,614 880 349 73 99 6,732
30-59 days past due 7 72 45 29 11 3 5 172
60-89 days past due 30 21 11 4 1 3 70
90+ days past due 4 2 3 1 10
Non-performing 66 100 56 33 15 1 271

Total retail customer receivables $ 3,320 $ 15,896 $ 9,472 $ 5,692 $ 2,874 $ 1,046 $ 3,302 $ 41,602

Write-offs for the three months
ended January 26, 2025:
Agriculture and turf $ 5 $ 9 $ 6 $ 2 $ 3 $ 10 $ 35
Construction and forestry 9 8 4 1 1 3 26

Total $ 14 $ 17 $ 10 $ 3 $ 4 $ 13 $ 61

October 27, 2024

2024 2023 2022 2021 2020
Prior
Years

Revolving
Charge

Accounts Total
Retail customer receivables:

Agriculture and turf
Current $ 14,394 $ 8,305 $ 5,191 $ 2,833 $ 992 $ 253 $ 4,465 $ 36,433
30-59 days past due 44 101 55 27 11 4 40 282
60-89 days past due 22 50 21 10 8 2 13 126
90+ days past due 1 1 1 2 5
Non-performing 23 91 76 50 20 13 15 288

Construction and forestry
Current 3,100 1,841 1,064 458 102 45 114 6,724
30-59 days past due 54 47 25 10 3 2 4 145
60-89 days past due 25 28 10 7 2 2 74
90+ days past due 1 4 3 1 9
Non-performing 40 94 67 32 9 5 1 248

Total retail customer receivables $ 17,704 $ 10,562 $ 6,513 $ 3,430 $ 1,147 $ 324 $ 4,654 $ 44,334

Write-offs for the twelve months
ended October 27, 2024:
Agriculture and turf $ 5 $ 33 $ 25 $ 11 $ 11 $ 5 $ 87 $ 177
Construction and forestry 9 38 30 11 5 3 8 104

Total $ 14 $ 71 $ 55 $ 22 $ 16 $ 8 $ 95 $ 281

January 28, 2024

2024 2023 2022 2021 2020
Prior
Years

Revolving
Charge

Accounts Total
Retail customer receivables:

Agriculture and turf
Current $ 3,248 $ 13,626 $ 7,731 $ 4,577 $ 2,032 $ 931 $ 2,798 $ 34,943
30-59 days past due 5 122 66 47 22 11 71 344
60-89 days past due 1 50 26 15 7 5 16 120
90+ days past due 1 1 3 4 9
Non-performing 49 95 66 34 42 11 297

Construction and forestry
Current 803 2,698 1,743 911 276 109 101 6,641
30-59 days past due 8 73 46 26 8 3 5 169
60-89 days past due 26 20 13 6 3 2 70
90+ days past due 2 1 1 4
Non-performing 1 67 86 48 20 9 2 233

Total retail customer receivables $ 4,066 $ 16,712 $ 9,816 $ 5,707 $ 2,409 $ 1,114 $ 3,006 $ 42,830

Write-offs for the three months
ended January 28, 2024:
Agriculture and turf $ 2 $ 4 $ 3 $ 4 $ 1 $ 9 $ 23
Construction and forestry 6 7 2 1 1 2 19

Total $ 8 $ 11 $ 5 $ 5 $ 2 $ 11 $ 42

The credit quality and aging analysis of wholesale receivables was as follows:

January 26 October 27 January 28
2025 2024 2024

Wholesale receivables:
Agriculture and turf

Current $ 7,098 $ 7,568 $ 6,564
30+ days past due 1
Non-performing 1 1 1

Construction and forestry
Current 1,200 1,358 907
30+ days past due
Non-performing

Total wholesale receivables $ 8,299 $ 8,927 $ 7,473

An analysis of the allowance for credit losses and investment in financing receivables follows:

Three Months Ended January 26, 2025
Retail Notes Revolving
& Financing Charge Wholesale
Leases Accounts Receivables Total
Allowance:
Beginning of period balance $ 219 $ 8 $ 2 $ 229

Provision 68 2 70
Write-offs (48) (13) (61)
Recoveries 2 9 11
Translation adjustments (1) (1)

End of period balance $ 240 $ 6 $ 2 $ 248

Financing receivables:
End of period balance $ 38,300 $ 3,302 $ 8,299 $ 49,901

Three Months Ended January 28, 2024
Retail Notes Revolving
& Financing Charge Wholesale
Leases Accounts Receivables Total
Allowance:
Beginning of period balance $ 172 $ 21 $ 4 $ 197

Provision (credit) 35 (2) 33
Write-offs (31) (11) (42)
Recoveries 1 8 9
Translation adjustments (2) (2)

End of period balance $ 177 $ 16 $ 2 $ 195

Financing receivables:
End of period balance $ 39,824 $ 3,006 $ 7,473 $ 50,303

The allowance for credit losses on retail notes and financing lease receivables increased in the first quarter of 2025, primarily
due to higher expected losses as a result of elevated delinquencies and market conditions.

During the third quarter of 2024, we determined that the financial services business in Brazil met the held for sale criteria. The
receivables in Brazil were reclassified to “Assets held for sale.” The associated allowance for credit losses was reversed and a
valuation allowance for the “Assets held for sale” was recorded (see Note 20).

Modifications

We occasionally grant contractual modifications to customers experiencing financial difficulties. Before offering a
modification, we evaluate the ability of the customer to meet the modified payment terms. Modifications offered include
payment deferrals, term extensions, or a combination thereof. Finance charges continue to accrue during the deferral or
extension period with the exception of modifications related to bankruptcy proceedings. Our allowance for credit losses
incorporates historical loss information, including the effects of loan modifications with customers. Therefore, additional
adjustments to the allowance are generally not recorded upon modification of a loan.

The ending amortized cost of financing receivables modified with borrowers experiencing financial difficulty during the first
quarter ended January 26, 2025 and January 28, 2024 were $28 and $17, respectively. These modifications represented 0.06%
and 0.03% of our financing receivable portfolio for the same periods, respectively.

The financial effects of payment deferrals with borrowers experiencing financial difficulty resulted in a weighted average
payment deferral of 8 months to the modified contracts. Term extensions provided to borrowers experiencing financial
difficulty added a weighted average of 12 months to the modified contracts. Additionally, modifications with a combination of
both payment deferrals and term extensions resulted in a weighted average payment deferral of 4 months and a weighted
average term extension of 6 months.

We continue to monitor the performance of financing receivables that are modified with borrowers experiencing financial
difficulty. The ending amortized cost and performance of financing receivables modified during the prior twelve months ended
January 26, 2025 and January 28, 2024 were as follows:

January 26 January 28
2025 2024*

Current $ 74 $ 16
30-59 days past due 7
60-89 days past due 4
90+ days past due 3
Non-performing 13 1

Total $ 101 $ 17

* In accordance with the adoption date of the accounting modification guidance, this period includes receivables modified
during the prior three months.

Defaults and subsequent write-offs of financing receivables modified in the prior twelve months were not significant during
the three months ended January 26, 2025 and January 28, 2024. In addition, at January 26, 2025, commitments to provide
additional financing to these customers were not significant.

(9) 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.
3. Investors are paid back based on cash receipts from the 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.

The components of securitization programs were as follows:

January 26 October 27 January 28
2025 2024 2024
Financing receivables securitized (retail notes) $ 8,307 $ 8,770 $ 6,418
Allowance for credit losses (50) (47) (18)
Other assets (primarily restricted cash) 182 187 140

Total restricted securitized assets $ 8,439 $ 8,910 $ 6,540

Short-term securitization borrowings $ 8,014 $ 8,431 $ 6,116
Accrued interest on borrowings 11 14 10

Total liabilities related to restricted securitized assets $ 8,025 $ 8,445 $ 6,126

(10) INVENTORIES

A majority of inventories owned by us are valued at cost on the “last-in, first-out” (LIFO) basis. If all inventories valued on a
LIFO basis had been valued on a “first-in, first-out” (FIFO) basis, the estimated inventories by major classification would have
been as follows:

January 26 October 27 January 28
2025 2024 2024
Raw materials and supplies $ 3,549 $ 3,486 $ 4,117
Work-in-process 1,046 930 1,223
Finished goods and parts 6,055 5,364 6,146

Total FIFO value 10,650 9,780 11,486
Excess of FIFO over LIFO 2,906 2,687 2,549
Inventories $ 7,744 $ 7,093 $ 8,937

(11) GOODWILL AND OTHER INTANGIBLE ASSETS – NET

The changes in amounts of goodwill by operating segments were as follows. There were no accumulated goodwill impairment
losses.

PPA SAT CF Total
Goodwill at October 29, 2023 $ 702 $ 363 $ 2,835 $ 3,900
Translation adjustments 4 2 60 66
Goodwill at January 28, 2024 $ 706 $ 365 $ 2,895 $ 3,966

Goodwill at October 27, 2024 $ 701 $ 365 $ 2,893 $ 3,959
Translation adjustments (11) (4) (72) (87)
Goodwill at January 26, 2025 $ 690 $ 361 $ 2,821 $ 3,872

The components of other intangible assets were as follows:

January 26 October 27 January 28
2025 2024 2024
Customer lists and relationships $ 490 $ 508 $ 509
Technology, patents, trademarks, and other 1,392 1,423 1,412

Total at cost 1,882 1,931 1,921
Less accumulated amortization:

Customer lists and relationships (229) (231) (207)
Technology, patents, trademarks, and other (716) (701) (602)

Total accumulated amortization (945) (932) (809)
Other intangible assets – net $ 937 $ 999 $ 1,112

The amortization of other intangible assets in the first quarter of 2025 and 2024 was $41 and $42, respectively. The estimated
amortization expense for the next five years is as follows: remainder of 2025 – $102, 2026 – $125, 2027 – $118, 2028 – $85,
2029 – $73, and 2030 – $70.

(12) SHORT-TERM BORROWINGS

Short-term borrowings were as follows:

January 26 October 27 January 28
2025 2024 2024
Commercial paper $ 2,699 $ 4,008 $ 8,378
Notes payable to banks 561 377 310
Finance lease obligations due within one year 34 33 27
Long-term borrowings due within one year 9,517 9,115 8,402

Short-term borrowings $ 12,811 $ 13,533 $ 17,117

(13) ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following:

January 26 October 27 January 28
2025 2024 2024
Accounts payable:

Trade payables $ 2,393 $ 2,698 $ 3,184
Dividends payable 443 405 413
Operating lease liabilities 274 270 293
Deposits withheld from dealers and merchants 136 152 153
Payables to unconsolidated affiliates 8 6 6
Other 207 204 183

Accrued expenses:
Employee benefits 786 1,925 1,107
Accrued taxes 1,111 1,509 1,364
Product warranties 1,360 1,426 1,589
Dealer sales discounts 246 996 243
Extended warranty premium 1,173 1,179 1,047
Derivative liabilities 750 582 744
Unearned revenue (contractual liability) 854 744 700
Unearned operating lease revenue 474 495 456
Accrued interest 487 455 502
Parts return liability 418 420 393
Other 1,042 1,077 984

Accounts payable and accrued expenses $ 12,162 $ 14,543 $ 13,361

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against
trade receivables of $1,901 at January 26, 2025, $2,121 at October 27, 2024, and $2,410 at January 28, 2024. Other
eliminations were made for accrued taxes and other accrued expenses.

(14) LONG-TERM BORROWINGS

Long-term borrowings consisted of:

January 26 October 27 January 28
2025 2024 2024
Underwritten term debt
U.S. dollar notes and debentures:

2.75% notes due 2025 $ 700
6.55% debentures due 2028 $ 200 $ 200 200
5.375% notes due 2029 500 500 500
3.10% notes due 2030 700 700 700
8.10% debentures due 2030 250 250 250
7.125% notes due 2031 300 300 300
5.45% notes due 2035 1,250
3.90% notes due 2042 1,250 1,250 1,250
2.875% notes due 2049 500 500 500
3.75% notes due 2050 850 850 850
5.70% notes due 2055 750

Euro notes:
1.85% notes due 2028 (€600 principal) 625 650 651
2.20% notes due 2032 (€600 principal) 625 650 651
1.65% notes due 2039 (€650 principal) 677 704 705

Serial issuances:
Medium-term notes 34,974 36,566 31,001

Other notes and finance lease obligations 272 265 1,810
Less debt issuance costs and debt discounts (167) (156) (135)
Long-term borrowings $ 43,556 $ 43,229 $ 39,933

Medium-term notes due through 2034 are primarily offered by prospectus and issued at fixed and variable rates. The principal
balances of the medium-term notes were $35,770, $37,141, and $31,808 at January 26, 2025, October 27, 2024, and
January 28, 2024, respectively. All outstanding notes and debentures are senior unsecured borrowings and rank equally with
each other.

(15) LEASES – LESSOR

We lease equipment manufactured or sold by us through John Deere Financial. Sales-type and direct financing leases are
reported in “Financing receivables – net.” Operating leases are reported in “Equipment on operating leases – net.”

Lease revenues earned by us follow:

Three Months Ended
January 26 January 28
2025 2024
Sales-type and direct finance lease revenues $ 47 $ 47
Operating lease revenues 362 339
Variable lease revenues 4 4

Total lease revenues $ 413 $ 390

(16) 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 reconciliation of the changes in the warranty liability follows:

Three Months Ended
January 26 January 28
2025 2024
Beginning of period balance $ 1,426 $ 1,610
Warranty claims paid (310) (309)
New product warranty accruals 256 281
Foreign exchange (12) 7
End of period balance $ 1,360 $ 1,589

The costs for extended warranty programs are recognized as incurred.

In certain international markets, we provide guarantees to banks for the retail financing of John Deere equipment. As of
January 26, 2025, the notional value of these guarantees was $128. We may repossess the equipment collateralizing the
receivables. At January 26, 2025, the accrued losses under these guarantees were not material.

We also had other miscellaneous contingent liabilities totaling approximately $115 at January 26, 2025. The accrued liability
for these contingencies was $25 at January 26, 2025.

At January 26, 2025, we had commitments of approximately $490 for the construction and acquisition of property and
equipment. Also at January 26, 2025, we had restricted assets of $259, classified as “Other assets.”

We are subject to various unresolved legal actions. The accrued losses on these matters were not material at January 26, 2025.
We believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on our
consolidated financial statements. The most prevalent legal claims relate to product liability (including asbestos-related
liability), employment, patent, trademark, and antitrust matters (including class action litigation).

(17) FAIR VALUE MEASUREMENTS

The fair values of financial instruments that do not approximate the carrying values were as follows. Long-term borrowings
exclude finance lease liabilities.

January 26, 2025 October 27, 2024 January 28, 2024

Carrying

Value
Fair

Value
Carrying

Value
Fair

Value
Carrying

Value
Fair

Value
Financing receivables – net $ 41,396 $ 41,311 $ 44,309 $ 44,336 $ 43,708 $ 43,236
Financing receivables securitized – net 8,257 8,174 8,723 8,654 6,400 6,225
Short-term securitization borrowings 8,014 8,036 8,431 8,453 6,116 6,104
Long-term borrowings due within one year 9,517 9,468 9,115 9,079 8,402 8,283
Long-term borrowings 43,483 43,172 43,157 42,804 39,878 39,321

Fair value measurements above were Level 3 for all financing receivables and Level 2 for all borrowings.

Fair values of the financing receivables that were issued long-term were based on the discounted values of their related cash
flows at interest rates currently being offered by 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.

Assets and liabilities measured 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.

January 26 October 27 January 28
2025 2024 2024
Level 1:

Marketable securities
International equity securities $ 5
International mutual funds securities 57
U.S. equity fund 105
U.S. fixed income fund 34
U.S. government debt securities $ 301 $ 239 274

Total Level 1 marketable securities 301 239 475

Level 2:
Marketable securities

Corporate debt securities 419 423 220
International debt securities 132 143 87
Mortgage-backed securities 174 165 161
Municipal debt securities 80 74 69
U.S. government debt securities 108 110 124

Total Level 2 marketable securities 913 915 661
Other assets – Derivatives 216 357 253
Accounts payable and accrued expenses – Derivatives 750 582 744

Level 3:
Accounts payable and accrued expenses – Deferred consideration 138 147 176

The mortgage-backed securities are primarily issued by U.S. government sponsored enterprises.

The contractual maturities of available-for-sale debt securities at January 26, 2025 follow:

Amortized Fair
Cost Value

Due in one year or less $ 41 $ 32
Due after one through five years 354 341
Due after five through 10 years 531 498
Due after 10 years 200 169
Mortgage-backed securities 205 174
Debt securities $ 1,331 $ 1,214

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.

Fair value, nonrecurring Level 3 measurements from impairments and other adjustments were as follows:

Fair Value (Gains) Losses
Three Months Ended
January 26 October 27 January 28 January 26 January 28
2025 2024 2024 2025* 2024
Other assets $ 23
Assets held for sale $ 2,929 2,944 $ (32)

* The gain on “Assets held for sale” in the first quarter of 2025 represents a reversal of prior period valuation allowance loss,
not in excess of cumulative valuation allowance recorded on “Assets held for sale.”

The following is a description of the valuation methodologies we use to measure certain financial instruments on the balance
sheets at fair value:

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. International debt securities are valued using quoted prices for identical assets in inactive
markets.

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.

Deferred consideration – The total purchase price consideration for three former Deere-Hitachi joint venture factories acquired
in 2022 included supply agreement price increases beyond inflation adjustments. This deferred consideration will be paid as
we purchase Deere-branded excavators, components, and service parts from Hitachi under the agreement with a duration that
ranges from 5 to 30 years. The deferred consideration balance is reduced as purchases are made and valued on a discounted
cash flow approach using market rates.

Other assets (Investment in unconsolidated affiliates) – Other than temporary impairments of investments are measured as the
difference between the implied fair value and the carrying value of the investments. The estimated fair value for privately held
entities is determined by an income approach (discounted cash flows), which includes inputs such as interest rates and
margins.

Assets held for sale – The disposal group was measured at the lower of the carrying amount or fair value less cost to sell. Fair
value was based on the probable sale price. The inputs included estimates of the final sale price (see Note 20).

(18) DERIVATIVE INSTRUMENTS

Fair values of our derivative instruments and the associated notional amounts were as follows. Assets are recorded in “Other
assets,” while liabilities are recorded in “Accounts payable and accrued expenses.”

January 26, 2025 October 27, 2024 January 28, 2024
Fair Value Fair Value Fair Value
Notional Assets Liabilities Notional Assets Liabilities Notional Assets Liabilities
Cash flow hedges:

Interest rate contracts $ 3,275 $ 1 $ 31 $ 2,875 $ 3 $ 20 $ 2,200 $ 27 $ 4

Fair value hedges:

Interest rate contracts 15,256 32 602 15,864 115 467 12,633 58 592
Cross-currency interest rate contracts 975 2 975 31

Not designated as hedging instruments:

Interest rate contracts 13,082 88 72 12,518 97 75 14,200 129 82
Foreign exchange contracts 7,408 81 43 7,533 95 20 7,856 39 53
Cross-currency interest rate contracts 164 14 158 16 189 13

The amounts recorded 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.

Active Hedging Relationships Discontinued Hedging Relationships
Carrying Amount Cumulative Fair Value Carrying Amount of Cumulative Fair Value
of Hedged Item Hedging Amount Formerly Hedged Item Hedging Amount
January 26, 2025
Short-term borrowings $ 2,110 $ (14)
Long-term borrowings $ 15,515 $ (617) 8,923 (179)

October 27, 2024
Short-term borrowings $ 287 $ (1) $ 1,782 $ 7
Long-term borrowings 16,125 (347) 8,626 (228)

January 28, 2024
Short-term borrowings $ 288 $ (9) $ 1,960 $ 10
Long-term borrowings 11,745 (537) 7,711 (270)

The classification and gains (losses) including accrued interest expense related to derivative instruments on the statements of
consolidated income consisted of the following:

Three Months Ended
January 26 January 28
2025 2024
Fair value hedges:

Interest rate contracts – Interest expense $ (343) $ 344

Cash flow hedges:
Recognized in OCI:

Interest rate contracts – OCI (pretax) $ 7 $ (8)
Reclassified from OCI:

Interest rate contracts – Interest expense 8 11

Not designated as hedges:
Interest rate contracts – Interest expense $ (4) $ (9)
Foreign exchange contracts – Net sales (7) 5
Foreign exchange contracts – Cost of sales 35 (30)
Foreign exchange contracts – Other operating expenses 208 (181)

Total not designated $ 232 $ (215)

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 January 26, 2025, October 27, 2024, and January 28, 2024 was $707, $562, and
$691, respectively. In accordance with the limits established in these agreements, we posted $436, $245, and $368 of cash
collateral at January 26, 2025, October 27, 2024, and January 28, 2024, respectively. In addition, we paid $8 of collateral that
was outstanding at January 26, 2025, October 27, 2024, and January 28, 2024 to participate in an international futures market
to hedge currency exposure, not included in the following table.

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and
liabilities related to netting arrangements and collateral follows:

Gross Amounts Netting
Recognized Arrangements Collateral Net Amount

January 26, 2025
Assets $ 216 $ (62) $ 154
Liabilities 750 (62) $ (437) 251

October 27, 2024
Assets $ 357 $ (142) $ 215
Liabilities 582 (142) $ (246) 194

January 28, 2024
Assets $ 253 $ (112) $ (19) $ 122
Liabilities 744 (112) (368) 264

(19) SHARE-BASED AWARDS

We are authorized to grant shares for equity incentive awards. The outstanding shares authorized were 13.7 million at
January 26, 2025. In December 2024, we granted stock options to employees for the purchase of 168 thousand shares of
common stock at an exercise price of $448.03 per share and a binomial lattice model fair value of $116.27 per share at the
grant date. At January 26, 2025, options for 1.4 million shares were outstanding with a weighted-average exercise price of
$291.97 per share.

During the three months ended January 26, 2025, the restricted stock units (RSUs) granted in thousands of shares and the
weighted-average grant date fair values, using the closing price of our common stock on the grant date, in dollars follow:

Grant-Date

Shares
Fair Value
(per share)

Service-based 300 $ 447.84
Performance/service-based 39 429.77
Market/service-based (fair value determined using a Monte Carlo model) 39 591.13

(20) SPECIAL ITEMS

Discrete Tax Items

In the first quarter of 2025, we recorded favorable net discrete tax items primarily due to tax benefits of $110 related to the
realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 from an adjustment to an
uncertain tax position of a foreign subsidiary.

Banco John Deere S.A.

In 2024, we entered into a joint venture agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to
invest and become 50% owner of our wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD is included in
our financial services segment and finances retail and wholesale loans for agricultural, construction, and forestry equipment.
The transaction is intended to reduce our incremental risk as we continue to grow in the Brazilian market. In February 2025,
Bradesco contributed capital equal to our equity investment in BJD. We retained a 50% equity interest in BJD and will report
the results of the joint venture as an equity investment in unconsolidated affiliates.

The BJD business was reclassified as held for sale in 2024. At January 26, 2025, the valuation allowance on “Assets held for
sale” decreased to $65, resulting in a pretax and after-tax gain (reversal of previous losses) of $32 recorded in “Selling,
administrative and general expenses” in the three months ended January 26, 2025 and presented in “Impairments and other
adjustments” in the statements of consolidated cash flows.

The major classes of the total consolidated assets and liabilities of BJD that were classified as held for sale and liabilities of
BJD to other intercompany parties were as follows:

January 26, 2025
Cash and cash equivalents $ 115
Trade accounts and notes receivable – net 105
Financing receivables – net 2,719
Deferred income taxes 34
Other miscellaneous assets* 21
Valuation allowance (65)

Assets held for sale $ 2,929

Short-term borrowings $ 487
Accounts payable and accrued expenses 124
Long-term borrowings 1,218
Retirement benefits and other liabilities 1

Liabilities held for sale $ 1,830

Total intercompany payables $ 627

* Includes $1 restricted cash balance.

(21) SUBSEQUENT EVENTS

In February 2025, we completed the transaction with Bradesco (see Note 20) for the sale of 50% ownership in BJD. Bradesco
contributed capital equal to our equity investment in BJD. We retained a 50% equity interest in BJD and will report the results
of the joint venture as an equity investment in unconsolidated affiliates.

On February 26, 2025, a quarterly dividend of $1.62 per share was declared at the Board of Directors meeting, payable on
May 8, 2025, to stockholders of record on March 31, 2025.

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

RESULTS OF OPERATIONS
All amounts are presented in millions of dollars unless otherwise specified.
OVERVIEW
Organization
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, services, 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.
TRENDS AND ECONOMIC CONDITIONS
Industry Sales Outlook for Fiscal Year 2025
Agriculture and Turf

Construction and Forestry

Company Trends

Customers seek to improve profitability, productivity, and sustainability through integrating technology into their
operations. Deeper integration of technology into equipment is a persistent market trend. These technologies are
incorporated into products within each of our operating segments. We expect this trend to persist for the foreseeable
future. Our Smart Industrial Operating Model and Leap Ambitions are intended to capitalize on this market trend.
Engaged acres are an indicator we use to understand customer utilization of our technology. We are investing in a
Solutions as a Service business model to increase technology adoption and utilization by our customers. Solutions as
a Service products did not represent a significant percentage of our revenues.

Company Outlook for 2025

Sales volumes are expected to decline in 2025 compared to 2024 due to reduced demand. We are uncertain of the
impact potential import tariffs by the U.S. and retaliatory actions taken by other countries could have on our outlook
due to the rapidly evolving environment.

Agriculture and Turf Outlook for 2025

• Demand in the U.S. and Canada is expected to decline due to market uncertainty, high interest rates, and elevated
used inventory levels, partially offset by the impact of U.S. government subsidies on farm incomes.

• We expect small agricultural equipment sales to be down from 2024 levels in the U.S. and Canada. Strong
profitability is anticipated to continue in the dairy and livestock segment as dairy and livestock prices remain
elevated; however, this is projected to be more than offset by restrained demand in the turf and compact utility
tractor markets amid high interest rates.

• In Europe, the industry is forecasted to be down as farm fundamentals in the region have stabilized at reduced levels
as commodity prices have steadied and stronger dairy margins are expected to partially offset continued market
uncertainty. Better wheat prices and lower input costs are expected to support increased farm incomes.

• Demand in South America is expected to be flat. In Brazil, improving local commodity prices due to the
appreciation of the U.S. dollar against the Brazilian real coupled with strong regional yields and decreasing input
costs will offer profitability tailwinds to farmers. Argentina industry sales are forecasted to improve amidst currency
stabilization and export tax reductions despite some recent dry weather conditions.

• Industry sales in Asia are forecasted to be down slightly.

Construction and Forestry Outlook for 2025

• Construction equipment industry sales are forecasted to be down in the U.S. and Canada from 2024 levels. The
decline is due to further slowdowns in multi-family housing developments and the commercial real estate market
and low levels of earthmoving rental purchases, partially offset by high levels of U.S. government infrastructure
spending and projected growth in single family housing starts. High interest rates are also expected to further
pressure equipment sales as market uncertainty persists.

• Global forestry markets are expected to be flat to down as global markets remain challenged.
• Global roadbuilding markets are forecasted to be generally flat with strong market demand.

Financial Services Outlook for 2025

Net Income Up
+ Prior and current period special items Favorable
+ Provision for credit losses Favorable
(-) Financing spreads Unfavorable

Additional Trends

Agricultural Market Business Cycle. The agricultural market is affected by various factors including commodity prices,
acreage planted, crop yields, government policies, and uncertainty in macroeconomic trends. These factors affect
farmers’ income and sentiment which may result in lower demand for equipment. In 2025, we expect to continue
experiencing the following effects due to unfavorable market conditions: lower sales volumes, higher sales incentives,
and elevated receivable write-offs and expected credit losses.

Interest Rates. While interest rates in the U.S. began to decrease in the fourth quarter of 2024, they remain elevated.
Higher rates impact us in several ways, primarily affecting the demand for our products and financing spreads for the
financial services operations. The markets for our agriculture, turf, and construction products are negatively impacted
by elevated interest rates and their effect on borrowing costs for our customers.

Foreign Exchange Rates. During the first quarter of 2025, the U.S. dollar strengthened against the primary currencies
in which we conduct business overseas. A stronger U.S. dollar is expected to have an unfavorable impact on our fiscal
year 2025 financial results. We utilize foreign currency derivatives that are not designated to mitigate the impact of
currency fluctuations on our cash flow, which resulted in favorable foreign exchange gains for the quarter. These
derivatives are limited in duration, leaving us exposed to the long-term impact of currency fluctuations on income.

Changes in the agricultural market business cycle, interest rates, and foreign exchange rates are driven by factors
outside of our control, and as a result we cannot reasonably foresee when these conditions will fully subside.

Legal Proceeding – On January 15, 2025, the Federal Trade Commission (FTC), along with the Attorneys General
of the States of Illinois and Minnesota filed a lawsuit against us in the United States District Court for the Northern
District of Illinois Western Division. The Attorneys General of the States of Arizona, Michigan, and Wisconsin have
since joined the lawsuit. The lawsuit alleges monopolization and unfair competition in violation of federal and state
antitrust laws. Plaintiffs seek a permanent injunction and other equitable relief to allow owners of our equipment, as
well as independent repair providers, access to our repair tools and any other repair resources available to authorized
John Deere dealers. At this stage, we are unable to estimate the potential impact on our business.

Other Items of Concern and Uncertainties – Other items that could impact our results are:

• global and regional political conditions, including the ongoing war between Russia and Ukraine and the conflicts in
the Middle East

• shifts in energy, economic, tax, trade policies, and positions on government subsidies of farming
• new or retaliatory tariffs
• capital market disruptions
• foreign currency and capital control policies
• right to repair regulations and legislation
• 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
• delays or disruptions in our supply chain
• significant fluctuations in foreign currency exchange rates
• volatility in the prices of many commodities
• slower economic growth

CONSOLIDATED RESULTS – 2025 COMPARED WITH 2024

Three Months Ended
Deere & Company January 26 January 28
(In millions of dollars, except per share amounts) 2025 2024
Net sales and revenues $ 8,508 $ 12,185
Net income attributable to Deere & Company 869 1,751
Diluted earnings per share 3.19 6.23

Net sales and revenues decreased for the quarter primarily due to lower sales volumes. Net income and diluted EPS
decreased driven by lower sales. The discussion of net sales and operating profit is included in the Business Segment
Results below. Net income was impacted by special items. See Note 20 for additional details.

An explanation of the cost of sales to net sales ratio and other significant statement of consolidated income changes
follows:

Three Months Ended
January 26 January 28

Deere & Company 2025 2024 % Change
Cost of sales to net sales 74.0% 68.7%

(-) Overhead costs Unfavorable
(+) Material costs Favorable
Increased mostly due to higher overhead costs from reduced volumes resulting in production inefficiencies,
partially offset by lower material costs.

Other income $ 246 $ 339 -27
Lower due to reduced international mutual funds investment income and lower service revenues and
miscellaneous income.

Research and development expenses 526 533 -1
Largely unchanged due to continued focus on developing and deploying technology solutions.

Selling, administrative and general expenses 972 1,066 -9
Decreased mostly due to lower employee profit-sharing incentives and the favorable impact of reduced valuation
allowance on “Assets held for sale” of Banco John Deere S.A. (see Note 20), partially offset by a higher provision
for credit losses.

Interest expense 829 802 +3
Increased primarily due to higher average borrowing rates and higher average borrowings.

Other operating expenses 249 369 -33
Decreased due to current period foreign exchange gains and prior period foreign exchange losses.

Provision for income taxes 27 469 -94
Decreased as a result of lower pretax income and the favorable impact of discrete tax adjustments (see Note 20).

Business Segment Results – 2025 compared with 2024

Three Months Ended
January 26 January 28

Production and Precision Agriculture 2025 2024 % Change
Net sales $ 3,067 $ 4,849 -37
Operating profit 338 1,045 -68
Operating margin 11.0% 21.6%
Price realization +1
Currency translation impact on Net sales -3

Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes (primarily
in the U.S., Canada, and Europe) driven by overall market uncertainty. Operating profit decreased primarily due to
lower shipment volumes, partially offset by lower selling, administrative and general expenses and research and
development expenses driven by a decrease in employee profit-sharing incentives, decreased production costs from
lower material costs, and price realization.

Production & Precision Agriculture Operating Profit
First Quarter 2025 Compared to First Quarter 2024

Three Months Ended
January 26 January 28

Small Agriculture and Turf 2025 2024 % Change
Net sales $ 1,748 $ 2,425 -28
Operating profit 124 326 -62
Operating margin 7.1% 13.4%
Price realization +1
Currency translation impact on Net sales -1

Small agriculture and turf sales decreased for the quarter due to lower shipment volumes (primarily in the U.S.,
Canada, and Europe) driven mainly by market uncertainty and high interest rates. Operating profit decreased
primarily as a result of lower shipment volumes partially offset by lower production costs, driven by a decrease in
material costs and employee profit-sharing incentives.

Small Agriculture & Turf Operating Profit
First Quarter 2025 Compared to First Quarter 2024

Three Months Ended
January 26 January 28

Construction and Forestry 2025 2024 % Change
Net sales $ 1,994 $ 3,212 -38
Operating profit 65 566 -89
Operating margin 3.3% 17.6%
Price realization -1
Currency translation impact on Net sales -1

Construction and forestry sales were lower for the quarter due to decreased U.S. shipment volumes, driven by
planned underproduction efforts to reduce field inventory and competitive pressures. Operating profit decreased
primarily due to lower shipment volumes, unfavorable price realization, and higher selling, administrative and
general expenses in part due to marketing events.

Construction & Forestry Operating Profit
First Quarter 2025 Compared to First Quarter 2024

Three Months Ended
January 26 January 28

Financial Services 2025 2024 % Change
Revenue (including intercompany) $ 1,573 $ 1,552 +1
Interest expense 766 762 +1
Net income 230 207 +11

The average balance of receivables and leases financed was 3% lower in the first three months of 2025, compared
with the same period last year, primarily due to the reclassification of the assets of Banco John Deere S.A. (BJD) to
“Assets held for sale” (see Note 20). Excluding the impact of this reclassification, revenue increased due to higher
average portfolio balances and financing rates. Net income for the quarter was affected by the decreased valuation
allowance on BJD “Assets held for sale” (see Note 20). Excluding the impact of this special item, net income
decreased due to a higher provision for credit losses, partially offset by lower selling, administrative and general
expenses.

CRITICAL ACCOUNTING ESTIMATES

See our critical accounting estimates discussed in the Management’s Discussion and Analysis of the most recently
filed Annual Report on Form 10-K. There have been no material changes to these policies.

CAPITAL RESOURCES AND LIQUIDITY – 2025 COMPARED WITH 2024

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
• 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 are forecasting lower
operating cash flows from equipment operations in 2025 compared with 2024 driven by a decrease in net income
adjusted for non-cash provisions and a lower reduction in inventories in 2025 compared with prior period.

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.

The financial services operations rely on their ability to raise substantial amounts of funds to finance their receivable
and lease portfolios. BJD assets and liabilities were reclassified to held for sale in the third quarter of 2024 and
maintain that classification in the first quarter of 2025 (see Note 20); they are not included within balances at year-
end 2024 or at the end of the first quarter of 2025.

Key metrics are provided in the following table:

January 26 October 27 January 28
2025 2024 2024

Cash, cash equivalents, and marketable securities $ 7,815 $ 8,478 $ 6,273

Trade accounts and notes receivable – net 4,931 5,326 7,795
Ratio to prior 12 month’s net sales 12% 12% 14%

Inventories 7,744 7,093 8,9

Ratio to prior 12 month’s cost of sales 27% 23% 24%

Unused credit lines 7,793 6,474 1,577

Financial Services:
Ratio of interest-bearing debt to stockholder’s equity 7.6 to 1 8.1 to 1 8.3 to 1

The increase in unused credit lines at January 26, 2025 compared to October 27, 2024 relates to a decrease in
commercial paper outstanding.

There have been no material changes to the contractual obligations and other cash requirements identified in our
most recently filed Annual Report on Form 10-K.

CASH FLOWS

Three Months Ended
January 26 January 28

2025 2024
Net cash used for operating activities $ (1,132) $ (908)
Net cash provided by investing activities 1,416 1,217
Net cash used for financing activities (923) (2,645)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (87) 16
Net decrease in cash, cash equivalents, and restricted cash $ (726) $ (2,320)

Cash outflows from consolidated operating activities in the first three months of 2025 were $1,132. This resulted
mainly from the payout of employee profit-sharing incentives, an increase in inventories, and a reduction in dealer
sales incentive accruals, partially offset by net income adjusted for non-cash provisions. Cash inflows from investing
activities were $1,416 in the first three months of this year. The primary drivers were collections of receivables

(excluding receivables related to sales) exceeding the cost of receivables acquired, partially offset by purchases of
property and equipment and a change in collateral on derivatives – net. Cash outflows from financing activities were
$923 in the first three months of 2025 due to repurchases of common stock, dividends paid, and lower borrowings.
Cash returned to shareholders was $844 in the first three months of 2025. Cash, cash equivalents, and restricted cash
decreased $726 during the first three months of this year.

KEY METRICS AND BALANCE SHEET CHANGES
Trade Accounts and Notes Receivable. Trade accounts and notes receivable arise from sales of goods to
customers. Trade receivables decreased $395 during the first three months of 2025, and decreased $2,864 compared
to a year ago, both due to lower sales. The percentage of total worldwide trade receivables outstanding for periods
exceeding 12 months was 6% at January 26, 2025, 6% at October 27, 2024, and 1% at January 28, 2024.

Financing Receivables and Equipment on Operating Leases. Financing receivables and equipment on operating
leases consist of retail notes originated in connection with financing of new and used equipment, operating leases,
revolving charge accounts, sales-type and direct financing leases, and wholesale notes. Financing receivables and
equipment on operating leases decreased $3,673 during the first quarter of 2025, primarily due to seasonal payments
and lower retail customer receivables and dealer inventories, and decreased $49 in the past 12 months due to
reclassification of BJD financing receivables as “Assets held for sale.” Excluding this, financing receivables
increased $2,622 due to increased dealer inventories and retail customer receivables. Total acquisition volumes of
financing receivables and equipment on operating leases were 22% lower in the first three months of 2025,
compared with the same period last year, as volumes of wholesale notes, retail notes, and operating leases were
lower, while revolving charge accounts were higher compared to the same period last year.

Inventories. Inventories increased by $651 during the first three months, primarily due to a seasonal increase.
Inventories decreased $1,193 compared to a year ago due to lower forecasted demand and inventory management
efforts. A majority of these inventories are valued on the last-in, first-out (LIFO) method.

Property and Equipment. Property and equipment cash expenditures in the first three months of 2025 were $352,
compared with $362 in the same period last year. Capital expenditures in 2025 are estimated to be approximately $1,600.

Accounts Payable and Accrued Expenses. Accounts payable and accrued expenses decreased by $2,381 in the
first three months of 2025, primarily due to a decrease in accrued expenses associated with employee benefits,
dealer sales discounts, and taxes. Accounts payable and accrued expenses decreased $1,199 compared to a year ago,
due to a decrease in accounts payable associated with trade payables and a decrease in accrued expenses associated
with employee benefits.

Borrowings. Total external borrowings decreased by $812 in the first three months of 2025 and increased $1,215
compared to a year ago, generally corresponding with the level of the receivable and lease portfolio, as well as other
working capital requirements.

John Deere Capital Corporation (Capital Corporation), a U.S. financial services subsidiary, has a revolving
warehouse facility to utilize bank conduit facilities to securitize retail notes (see Note 9). The facility was renewed in
November 2024 with an expiration in November 2025 and with an increase in the total capacity or “financing limit”
from $2,000 to $2,500. At January 26, 2025, $1,917 of securitization borrowings were outstanding under the facility.
At the end of the contractual revolving period, unless the banks and Capital Corporation agree to renew, Capital
Corporation would liquidate the secured borrowings over time as payments on the retail notes are collected.

In the first three months of 2025, the financial services operations issued $725 and retired $1,145 of retail note
securitization borrowings, which are presented in “Net proceeds (payments) in total short-term borrowings (original
maturities three months or less).”
Lines of Credit. We also have access to bank lines of credit with various banks throughout the world.
Worldwide lines of credit totaled $11,061 at January 26, 2025, consisting primarily of:

• a 364-day credit facility agreement of $5,000 expiring in the second quarter of 2025
• a credit facility agreement of $2,750 expiring in the second quarter of 2028
• a credit facility agreement of $2,750 expiring in the second quarter of 2029

At January 26, 2025, $7,793 of these worldwide lines of credit were unused. For the purpose of computing unused
credit lines, commercial paper and short-term bank borrowings were considered to constitute utilization. These
credit agreements require Capital Corporation and other parts of our business to maintain certain performance
metrics and liquidity targets. All requirements in the credit agreements have been met during the periods included in
the financial statements.

Debt Ratings. To access public debt capital markets, we rely on credit rating agencies to assign short-term and
long-term credit ratings to our debt securities as an indicator of credit quality for fixed income investors. A security
rating is not a recommendation by the rating agency to buy, sell, or hold our securities. A credit rating agency may
change or withdraw ratings based on its assessment of our current and future ability to meet interest and principal
repayment obligations. Each agency’s rating should be evaluated independently of any other rating. Lower credit
ratings generally result in higher borrowing costs, including costs of derivative transactions, 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 A+ F1 Stable
Moody’s Investors Service, Inc. A1 Prime-1 Stable
Standard & Poor’s A A-1 Stable

FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the sections entitled “Overview” and “Condensed Notes to Interim
Consolidated Financial Statements” 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:

• 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, ability to export
commodities, and regional or global liquidity constraints;

• government policies and actions in respect to global trade, tariffs and trade agreements, and energy, and the
uncertainty of our 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, predict financial results, and remain
competitive based on these actions and policies;

• 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;

• our 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 we operate, including the ongoing war
between Russia and Ukraine 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 our equipment;

• investigations, claims, lawsuits, or other legal proceedings, including the recent lawsuit filed by the FTC and the
Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that we
unlawfully withheld self-repair capabilities from farmers and independent repair providers;

• changes in climate patterns, unfavorable weather events, and natural disasters, including potential consequences
from the recent California wildfires;

• availability and price of raw materials, components, and whole goods;
• delays or disruptions in our supply chain;
• 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 our Smart Industrial Operating Model and Leap Ambitions;

• accurately forecasting customer demand for products and services and adequately managing inventory;
• dealer practices and their ability to manage inventory and distribution of our 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 our 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 our information technology

infrastructure and products;
• leveraging artificial intelligence and machine learning within our 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 our products.

Further information concerning us and our businesses, including factors that could materially affect our financial
results, is included in our other filings with the SEC (including, but not limited to, the factors discussed in Item 1A.
“Risk Factors” of our most recent Annual Report on Form 10-K and this Quarterly Report on Form 10-Q). 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.

SUPPLEMENTAL CONSOLIDATING DATA

The supplemental consolidating data presented on the subsequent pages is presented for informational purposes.
Equipment operations represent the enterprise without financial services. Equipment operations include 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.
Equipment operations and financial services participate in different industries. Equipment operations primarily
generate earnings and cash flows by manufacturing and selling equipment, service parts, and technology solutions to
dealers and retail customers. Financial services finance sales and leases by dealers of new and used equipment that is
largely manufactured by equipment operations. 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.

DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME
For the Three Months Ended January 26, 2025 and January 28, 2024
Unaudited
EQUIPMENT FINANCIAL
OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED

2025 2024 2025 2024 2025 2024 2025 2024
Net Sales and Revenues
Net sales $ 6,809 $ 10,486 $ 6,809 $ 10,486
Finance and interest income 110 157 $ 1,455 $ 1,433 $ (112) $ (230) 1,453 1,360 1
Other income 202 289 118 119 (74) (69) 246 339 2, 3, 4

Total 7,121 10,932 1,573 1,552 (186) (299) 8,508 12,185

Costs and Expenses
Cost of sales 5,045 7,207 (8) (7) 5,037 7,200 4
Research and development expenses 526 533 526 533
Selling, administrative and general expenses 800 876 174 192 (2) (2) 972 1,066 4
Interest expense 84 108 766 762 (21) (68) 829 802 1
Interest compensation to Financial Services 91 162 (91) (162) 1
Other operating expenses (51) 90 364 339 (64) (60) 249 369 3, 4, 5

Total 6,495 8,976 1,304 1,293 (186) (299) 7,613 9,970

Income before Income Taxes 626 1,956 269 259 895 2,215
Provision (credit) for income taxes (13) 416 40 53 27 469

Income after Income Taxes 639 1,540 229 206 868 1,746
Equity in income (loss) of

unconsolidated affiliates (2) 1 1 1 (1) 2

Net Income 637 1,541 230 207 867 1,748
Less: Net loss attributable to

noncontrolling interests (2) (3) (2) (3)
Net Income Attributable to

Deere & Company $ 639 $ 1,544 $ 230 $ 207 $ 869 $ 1,751

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.

DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEETS
Unaudited
EQUIPMENT FINANCIAL
OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED
Jan 26 Oct 27 Jan 28 Jan 26 Oct 27 Jan 28 Jan 26 Oct 27 Jan 28 Jan 26 Oct 27 Jan 28
2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024
Assets
Cash and cash equivalents $ 4,840 $ 5,615 $ 3,467 $ 1,761 $ 1,709 $ 1,670 $ 6,601 $ 7,324 $ 5,137
Marketable securities 114 125 147 1,100 1,029 989 1,214 1,154 1,136
Receivables from Financial

Services 1,826 3,043 4,296 $(1,826) $ (3,043) $ (4,296) 6
Trade accounts and notes

receivable – net 1,053 1,257 1,093 5,812 6,225 9,167 (1,934) (2,156) (2,465) 4,931 5,326 7,795 7
Financing receivables – net 78 78 72 41,318 44,231 43,636 41,396 44,309 43,708
Financing receivables

securitized – net 2 2 8,255 8,721 6,400 8,257 8,723 6,400
Other receivables 2,367 2,193 1,515 654 427 559 (42) (75) (57) 2,979 2,545 2,017 7
Equipment on operating

leases – net 7,157 7,451 6,751 7,157 7,451 6,751
Inventories 7,744 7,093 8,937 7,744 7,093 8,937
Property and equipment – net 7,392 7,546 6,879 33 34 35 7,425 7,580 6,914
Goodwill 3,872 3,959 3,966 3,872 3,959 3,966
Other intangible assets – net 937 999 1,112 937 999 1,112
Retirement benefits 2,933 2,839 3,013 86 83 75 (1) (1) (1) 3,018 2,921 3,087 8
Deferred income taxes 2,247 2,262 2,133 42 43 72 (437) (219) (372) 1,852 2,086 1,833 9
Other assets 2,295 2,194 2,058 539 715 546 (27) (3) (26) 2,807 2,906 2,578
Assets held for sale 2,929 2,944 2,929 2,944
Total Assets $37,700 $ 39,205 $ 38,688 $69,686 $ 73,612 $ 69,900 $(4,267) $ (5,497) $ (7,217) $103,119 $ 107,320 $ 101,371

Liabilities and
Stockholders’ Equity

Liabilities
Short-term borrowings $ 1,101 $ 911 $ 1,203 $11,710 $ 12,622 $ 15,914 $ 12,811 $ 13,533 $ 17,117
Short-term securitization

borrowings 1 2 8,013 8,429 6,116 8,014 8,431 6,116
Payables to Equipment

Operations 1,826 3,043 4,296 $(1,826) $ (3,043) $ (4,296) 6
Accounts payable and

accrued expenses 10,869 13,534 12,677 3,296 3,243 3,232 (2,003) (2,234) (2,548) 12,162 14,543 13,361 7
Deferred income taxes 405 434 478 480 263 444 (437) (219) (372) 448 478 550 9
Long-term borrowings 8,507 6,603 7,270 35,049 36,626 32,663 43,556 43,229 39,933
Retirement benefits and

other liabilities 1,668 2,250 2,006 67 105 110 (1) (1) (1) 1,734 2,354 2,115 8
Liabilities held for sale 1,830 1,827 1,830 1,827

Total liabilities 22,551 23,734 23,634 62,271 66,158 62,775 (4,267) (5,497) (7,217) 80,555 84,395 79,192

Commitments and
contingencies (Note 16)

Redeemable noncontrolling
interest 78 82 100 78 82 100

Stockholders’ Equity
Total Deere & Company

stockholders’ equity 22,479 22,836 22,075 7,415 7,454 7,125 (7,415) (7,454) (7,125) 22,479 22,836 22,075 10
Noncontrolling interests 7 7 4 7 7 4
Financial Services’ equity (7,415) (7,454) (7,125) 7,415 7,454 7,125 10

Adjusted total
stockholders’ equity 15,071 15,389 14,954 7,415 7,454 7,125 22,486 22,843 22,079

Total Liabilities and
Stockholders’ Equity $37,700 $ 39,205 $ 38,688 $69,686 $ 73,612 $ 69,900 $(4,267) $ (5,497) $ (7,217) $103,119 $ 107,320 $ 101,371

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 Three Months Ended January 26, 2025 and January 28, 2024
Unaudited
EQUIPMENT FINANCIAL
OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED

2025 2024 2025 2024 2025 2024 2025 2024
Cash Flows from Operating Activities
Net income $ 637 $ 1,541 $ 230 $ 207 $ 867 $ 1,748
Adjustments to reconcile net income to net cash provided by (used for)

operating activities:
Provision (credit) for credit losses 3 (2) 66 33 69 31
Provision for depreciation and amortization 319 302 265 254 $ (35) $ (36) 549 520 11
Impairments and other adjustments (32) (32)
Share-based compensation expense 28 46 28 46 12
Distributed earnings of Financial Services 162 233 (162) (233) 13
Provision (credit) for deferred income taxes (17) 48 225 (21) 208 27
Changes in assets and liabilities:

Receivables related to sales 140 209 923 (486) 1,063 (277) 14, 16
Inventories (784) (687) (11) (36) (795) (723) 15
Accounts payable and accrued expenses (2,073) (2,155) 6 25 222 (197) (1,845) (2,327) 16
Accrued income taxes payable/receivable (479) 165 (61) 18 (540) 183
Retirement benefits (647) (127) (41) (2) (688) (129)

Other (136) (46) 117 61 3 (22) (16) (7)11, 12, 15
Net cash provided by (used for) operating activities (2,875) (519) 775 575 968 (964) (1,132) (908)

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales) 8,345 8,007 (208) (255) 8,137 7,752 14
Proceeds from maturities and sales of marketable securities 9 72 52 112 61 184
Proceeds from sales of equipment on operating leases 433 506 433 506
Cost of receivables acquired (excluding receivables related to sales) (6,093) (6,513) 48 66 (6,045) (6,447) 14
Purchases of marketable securities (29) (141) (200) (141) (229)
Purchases of property and equipment (352) (362) (352) (362)
Cost of equipment on operating leases acquired (454) (503) 15 49 (439) (454) 15
Decrease in investment in Financial Services 10 (10) 17
Decrease (increase) in trade and wholesale receivables 985 (871) (985) 871 14
Collateral on derivatives – net (191) 310 (191) 310
Other (51) (33) 4 (10) (47) (43)

Net cash provided by (used for) investing activities (394) (342) 2,940 838 (1,130) 721 1,416 1,217

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

three months or less) 176 78 (1,660) (3,029) (1,484) (2,951)
Change in intercompany receivables/payables 1,222 288 (1,222) (288)
Proceeds from borrowings issued (original maturities greater than three

months) 2,032 11 1,136 5,276 3,168 5,287
Payments of borrowings (original maturities greater than three months) (12) (40) (1,741) (3,197) (1,753) (3,237)
Repurchases of common stock (441) (1,328) (441) (1,328)
Capital returned to Equipment Operations (10) 10 17
Dividends paid (403) (386) (162) (233) 162 233 (403) (386) 13
Other (7) (22) (3) (8) (10) (30)

Net cash provided by (used for) financing activities 2,567 (1,399) (3,652) (1,489) 162 243 (923) (2,645)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and
Restricted Cash (74) 11 (13) 5 (87) 16

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash (776) (2,249) 50 (71) (726) (2,320)
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 $ 4,867 $ 3,506 $ 2,040 $ 1,794 $ 6,907 $ 5,300

Components of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents $ 4,840 $ 3,467 $ 1,761 $ 1,670 $ 6,601 $ 5,137
Cash, cash equivalents, and restricted cash (Assets held for sale) 116 116
Restricted cash (Other assets) 27 39 163 124 190 163
Total Cash, Cash Equivalents, and Restricted Cash $ 4,867 $ 3,506 $ 2,040 $ 1,794 $ 6,907 $ 5,300

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.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

See our most recently filed Annual Report on Form 10-K (Part II, Item 7A). There have been no material changes in
this information.

Item 4. CONTROLS AND PROCEDURES

Our principal executive officer and 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 January 26, 2025, based on the evaluation of these controls and procedures
required by Rule 13a-15(b) or 15d-15(b) of the Exchange Act. During the first quarter of 2025, there were no
changes that have materially affected or are reasonably likely to materially affect our internal control over financial
reporting.

PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

On January 15, 2025, the Federal Trade Commission (FTC), along with the Attorneys General of the States of
Illinois and Minnesota, filed a lawsuit against us in the United States District Court for the Northern District of
Illinois Western Division. The Attorneys General of the States of Arizona, Michigan, and Wisconsin have since
joined the lawsuit. The lawsuit alleges monopolization and unfair competition in violation of federal and state
antitrust laws. Plaintiffs seek a permanent injunction and other equitable relief to allow owners of our equipment, as
well as independent repair providers, access to our repair tools and any other repair resources available to authorized
John Deere dealers. At this stage, we are unable to predict the outcome or impact of this matter on our business and
financial results.

In addition to the above, the most prevalent legal claims relate to product liability (including asbestos-related
liability), employment, patent, trademark, and antitrust matters (including class action litigation).

Item 1A. RISK FACTORS

There are no material changes to the risk factors set forth in Part I, Item 1A, Risk Factors in our Annual Report on
Form 10-K for the year ended October 27, 2024, except as set forth below.

Legal proceedings, disputes and government inquiries and investigations could harm our business, financial
condition, reputation, and brand.

We routinely are a party to claims and legal actions and the subject of government inquiries and investigations, the
most prevalent of which relate to product liability (including asbestos-related liability), employment, patent,
trademark, and antitrust matters. For example, we were recently the subject of a previously disclosed Federal Trade
Commission (FTC) investigation into our information security practices and statements, which was closed by the
FTC without action. The defense of lawsuits and government inquiries and 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. Adverse decisions in one or more of these claims, actions, inquiries, 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 judgments or investigations 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.

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 FTC, along with the Attorneys General of
the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin, filed a lawsuit against us in the United States
District Court for the Northern District of Illinois Western Division alleging similar claims. We are currently unable
to predict the outcome of these matters.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

Purchases of our common stock during the first quarter of 2025 were as follows:

Total Number of
Shares Purchased as Maximum Number of
Total Number of Part of Publicly Shares that May Yet Be
Shares Announced Plans or Purchased under the
Purchased (2) Average Price Programs (1) Plans or Programs (1)

Period (thousands) Per Share (thousands) (millions)
Oct 28 to Nov 24 367 $ 405.87 367 18.4
Nov 25 to Dec 22 285 446.16 263 18.1
Dec 23 to Jan 26 247 435.17 247 17.9

Total 899 877

(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 purchased under this plan was
17.9 million based on the closing price of our common stock on the New York Stock Exchange as of the end of
the first quarter of 2025 of $478.77 per share. At the end of the first quarter of 2025, $8.6 billion of common
stock remains to be purchased under this plan.

(2) In the first quarter of 2025, 22 thousand shares of common stock were acquired from plan participants at a
weighted-average market price of $439.24 per share to pay payroll taxes on the vesting of restricted stock
awards.

Sales of Unregistered Equity Securities

During the first quarter of 2025, we issued 145 deferred stock units under the Deere & Company Nonemployee
Director Stock Ownership Plan (“NEDSOP”) to a nonemployee director for their service on our Board of Directors.
The deferred stock units convert to shares of common stock on a one-for-one basis following a termination of
service as described in the plan. Deferred stock units and shares of common stock issued under the NEDSOP are
exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 of the
SEC’s Regulation D thereunder.

On January 2, 2025, we distributed 1,386 shares of common stock to a participant account under the 2012 NEDSOP.

Item 3. DEFAULTS UPON SENIOR SECURITIES

None.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

Item 5. OTHER INFORMATION

Director and Executive Officer Trading Arrangements

None.

Item 6. EXHIBITS

Certain instruments relating to long-term borrowings constituting less than 10% 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 of the Commission.

3.1

3.2

31.1

31.2

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*)

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*)

Rule 13a-14(a)/15d-14(a) Certification

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)

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.

https://www.sec.gov/Archives/edgar/data/315189/000155837019008382/de-20190728ex31a36f984.htm

https://www.sec.gov/Archives/edgar/data/315189/000155837023015380/de-20230730xex3d2.htm

SIGNATURES

Pursuant to the requirements 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.

DEERE & COMPANY

Date: February 27, 2025 By: /s/ Joshua A. Jepsen

Joshua A. Jepsen
Senior Vice President and Chief Financial Officer

(Principal Financial Officer and
Principal

Accounting Officer)

Exhibit 31.1

CERTIFICATIONS

I, John C. May, certify that:

1. I have reviewed this quarterly report on Form 10-Q 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: February 27, 2025 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 quarterly report on Form 10-Q of Deere & Company;

(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: February 27, 2025 By: /s/ Joshua A. Jepsen
Joshua A. Jepsen
Senior Vice President and Chief Financial Officer

(Principal Financial Officer and Principal Accounting
Officer)

EXHIBIT 32

STATEMENT PURSUANT TO
18 U.S.C. SECTION 1350

AS REQUIRED BY
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Deere & Company (the “Company”) on Form 10-Q for the period ended
January 26, 2025, 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.

February 27, 2025 /s/ John C. May Chairman and Chief Executive Officer
John C. May (Principal Executive Officer)

February 27, 2025 /s/ Joshua A. Jepsen Senior Vice President and Chief Financial Officer
Joshua A. Jepsen (Principal Financial Officer and Principal

Accounting Officer)

Turn in your highest-quality paper
Get a qualified writer to help you with

“ Financial Forecasting ”

Get high-quality paper

Guarantee! All work is written by expert writers!

Still stressed from student homework?

Get quality assistance from academic writers!

Order now