• Quarterly results underscore sound execution in the face of challenging market conditions.
  • Global agricultural and turf demand further softens while the construction industry remains stable.
  • Full-year net income forecast updated to approximately $7.0 billion.

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

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

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

Company Outlook & Summary

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

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

Deere & Company


Second Quarter


Year to Date


$ in millions, except per share amounts


2024


2023


% Change


2024


2023


% Change


Net sales and revenues


$

15,235


$

17,387


-12 %


$

27,420


$

30,038


-9 %


Net income


$

2,370


$

2,860


-17 %


$

4,121


$

4,819


-14 %


Fully diluted EPS


$

8.53


$

9.65




$

14.74


$

16.18




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

Production & Precision Agriculture


Second Quarter


$ in millions


2024


2023


% Change


Net sales


$

6,581


$

7,822


-16 %


Operating profit


$

1,650


$

2,170


-24 %


Operating margin



25.1 %



27.7 %




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

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

 

Small Agriculture & Turf


Second Quarter


$ in millions


2024


2023


% Change


Net sales


$

3,185


$

4,145


-23 %


Operating profit


$

571


$

849


-33 %


Operating margin



17.9 %



20.5 %




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

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

 

Construction & Forestry


Second Quarter


$ in millions


2024


2023


% Change


Net sales


$

3,844


$

4,112


-7 %


Operating profit


$

668


$

838


-20 %


Operating margin



17.4 %



20.4 %




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

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

 

Financial Services


Second Quarter


$ in millions


2024


2023


% Change


Net income


$

162


$

28


479 %


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

Industry Outlook for Fiscal 2024








Agriculture & Turf








U.S. & Canada:








Large Ag






Down ~ 15%


Small Ag & Turf






Down ~ 10%


Europe






Down ~ 15%


South America (Tractors & Combines)






Down 15 to 20%


Asia






Down moderately










Construction & Forestry








U.S. & Canada:








Construction Equipment






Flat to Down 5%


Compact Construction Equipment






Flat


Global Forestry






Down ~ 10%


Global Roadbuilding






Flat to Down 5%


 

Deere Segment Outlook for Fiscal 2024




Currency


Price


$ in millions


Net Sales


Translation


Realization


Production & Precision Ag


Down 20% to 25%


~ Flat


+1.5 %


Small Ag & Turf


Down 20% to 25%


~ Flat


+1.5 %


Construction & Forestry


Down 5% to 10%


~ Flat


+1.5 %










Financial Services


Net Income


~$  770




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

FORWARD-LOOKING STATEMENTS

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

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

  • changes in and compliance with U.S., foreign and international laws, regulations, and policies relating to trade, economic sanctions, data privacy, spending, taxing, banking, monetary, environmental (including climate change and engine emissions), and farming policies;
  • political, economic, and social instability of the geographies in which the company operates, including the ongoing war between Russia and Ukraine and the conflict in the Middle East;
  • adverse macroeconomic conditions, including unemployment, inflation, rising interest rates, changes in consumer practices due to slower economic growth, and regional or global liquidity constraints;
  • worldwide demand for food and different forms of renewable energy;
  • the ability to execute business strategies, including the company's Smart Industrial Operating Model, Leap Ambitions, and mergers and acquisitions;
  • the ability to understand and meet customers' changing expectations and demand for John Deere products and solutions;
  • accurately forecasting customer demand for products and services and adequately managing inventory;
  • the ability to integrate new technology, including automation and machine learning, and deliver precision technology and solutions to customers;
  • changes to governmental communications channels (radio frequency technology);
  • the ability to adapt in highly competitive markets;
  • dealer practices and their ability to manage distribution of John Deere products and support and service precision technology solutions;
  • changes in climate patterns, unfavorable weather events, and natural disasters;
  • governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy;
  • higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for John Deere products and solutions;
  • availability and price of raw materials, components, and whole goods;
  • delays or disruptions in the company's supply chain;
  • our equipment fails to perform as expected, which could result in warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations;
  • the ability to attract, develop, engage, and retain qualified personnel;
  • security breaches, cybersecurity attacks, technology failures, and other disruptions to John Deere information technology infrastructure and products;
  • loss of or challenges to intellectual property rights;
  • legislation introduced or enacted that could affect the company's business model and intellectual property, such as right to repair or right to modify legislation;
  • investigations, claims, lawsuits, or other legal proceedings;
  • events that damage the company's reputation or brand;
  • the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, available farm acres, acreage planted, soil conditions, harvest yields, prices for commodities and livestock, input costs, and availability of transport for crops; and
  • housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment.

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

 

DEERE & COMPANY

SECOND QUARTER 2024 PRESS RELEASE

(In millions of dollars) Unaudited



















Three Months Ended


Six Months Ended




April 28


April 30


%


April 28


April 30


%




2024


2023


Change


2024


2023


Change


Net sales and revenues:


















Production & precision ag net sales


$

6,581


$

7,822


-16


$

11,430


$

13,021


-12


Small ag & turf net sales



3,185



4,145


-23



5,610



7,146


-21


Construction & forestry net sales



3,844



4,112


-7



7,057



7,314


-4


Financial services revenues



1,395



1,107


+26



2,770



2,147


+29


Other revenues



230



201


+14



553



410


+35


Total net sales and revenues


$

15,235


$

17,387


-12


$

27,420


$

30,038


-9




















Operating profit: *


















Production & precision ag


$

1,650


$

2,170


-24


$

2,695


$

3,378


-20


Small ag & turf



571



849


-33



897



1,296


-31


Construction & forestry



668



838


-20



1,234



1,463


-16


Financial services



209



41


+410



466



279


+67


Total operating profit



3,098



3,898


-21



5,292



6,416


-18


Reconciling items **



23



(47)





49



(69)




Income taxes



(751)



(991)


-24



(1,220)



(1,528)


-20


Net income attributable to Deere & Company


$

2,370


$

2,860


-17


$

4,121


$

4,819


-14




*

Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit for financial services includes the effect of interest expense and foreign exchange gains or losses.

**

Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, equity in income of unconsolidated affiliates, and net income attributable to noncontrolling interests.

 

DEERE & COMPANY

STATEMENTS OF CONSOLIDATED INCOME

For the Three and Six Months Ended April 28, 2024 and April 30, 2023

(In millions of dollars and shares except per share amounts) Unaudited













Three Months Ended


Six Months Ended




2024


2023


2024


2023


Net Sales and Revenues














Net sales


$

13,610


$

16,079


$

24,097


$

27,481


Finance and interest income



1,387



1,079



2,746



2,073


Other income



238



229



577



484


Total



15,235



17,387



27,420



30,038
















Costs and Expenses














Cost of sales



9,157



10,730



16,357



18,663


Research and development expenses



565



547



1,098



1,043


Selling, administrative and general expenses



1,265



1,330



2,330



2,283


Interest expense



836



569



1,638



1,049


Other operating expenses



295



363



664



660


Total



12,118



13,539



22,087



23,698
















Income of Consolidated Group before Income Taxes



3,117



3,848



5,333



6,340


Provision for income taxes



751



991



1,220



1,528
















Income of Consolidated Group



2,366



2,857



4,113



4,812


Equity in income of unconsolidated affiliates



2



2



3



3
















Net Income



2,368



2,859



4,116



4,815


Less: Net loss attributable to noncontrolling interests



(2)



(1)



(5)



(4)


Net Income Attributable to Deere & Company


$

2,370


$

2,860


$

4,121


$

4,819
















Per Share Data














Basic


$

8.56


$

9.69


$

14.80


$

16.26


Diluted



8.53



9.65



14.74



16.18


Dividends declared



1.47



1.25



2.94



2.45


Dividends paid



1.47



1.20



2.82



2.33
















Average Shares Outstanding














Basic



276.8



295.1



278.4



296.3


Diluted



277.9



296.5



279.5



297.8



See Condensed Notes to Interim Consolidated Financial Statements.

 

DEERE & COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions of dollars) Unaudited












April 28


October 29


April 30



2024


2023


2023

Assets










Cash and cash equivalents


$

5,553


$

7,458


$

5,267

Marketable securities



1,094



946



856

Trade accounts and notes receivable – net



8,880



7,739



9,971

Financing receivables – net



45,278



43,673



38,954

Financing receivables securitized – net



7,262



7,335



5,659

Other receivables



2,535



2,623



2,593

Equipment on operating leases – net



6,965



6,917



6,524

Inventories



8,443



8,160



9,713

Property and equipment – net



7,034



6,879



6,288

Goodwill



3,936



3,900



3,963

Other intangible assets – net



1,064



1,133



1,222

Retirement benefits



3,056



3,007



3,519

Deferred income taxes



1,936



1,814



1,308

Other assets



2,592



2,503



2,510

Total Assets


$

105,628


$

104,087


$

98,347











Liabilities and Stockholders' Equity




















Liabilities










Short-term borrowings


$

17,699


$

17,939


$

17,109

Short-term securitization borrowings



6,976



6,995



5,379

Accounts payable and accrued expenses



14,609



16,130



14,716

Deferred income taxes



491



520



511

Long-term borrowings



40,962



38,477



35,611

Retirement benefits and other liabilities



2,105



2,140



2,520

Total liabilities



82,842



82,201



75,846











Redeemable noncontrolling interest



98



97



102











Stockholders' Equity










Total Deere & Company stockholders' equity



22,684



21,785



22,395

Noncontrolling interests



4



4



4

Total stockholders' equity



22,688



21,789



22,399

Total Liabilities and Stockholders' Equity


$

105,628


$

104,087


$

98,347


See Condensed Notes to Interim Consolidated Financial Statements.

 

DEERE & COMPANY

STATEMENTS OF CONSOLIDATED CASH FLOWS

For the Six Months Ended April 28, 2024 and April 30, 2023

(In millions of dollars) Unaudited









2024


2023

Cash Flows from Operating Activities







Net income


$

4,116


$

4,815

Adjustments to reconcile net income to net cash provided by (used for) operating activities:







Provision (credit) for credit losses



131



(89)

Provision for depreciation and amortization



1,045



995

Other non-cash adjustments (Note 1)






173

Share-based compensation expense



104



54

Credit for deferred income taxes



(120)



(377)

Changes in assets and liabilities:







Receivables related to sales



(2,469)



(4,407)

Inventories



(409)



(982)

Accounts payable and accrued expenses



(1,300)



(313)

Accrued income taxes payable/receivable



(29)



(96)

Retirement benefits



(208)



(68)

Other



83



148

Net cash provided by (used for) operating activities



944



(147)








Cash Flows from Investing Activities







Collections of receivables (excluding receivables related to sales)



13,703



12,593

Proceeds from maturities and sales of marketable securities



200



98

Proceeds from sales of equipment on operating leases



1,011



993

Cost of receivables acquired (excluding receivables related to sales)



(14,091)



(13,451)

Purchases of marketable securities



(432)



(188)

Purchases of property and equipment



(719)



(584)

Cost of equipment on operating leases acquired



(1,369)



(1,229)

Collateral on derivatives – net



96



367

Other



(69)



(93)

Net cash used for investing activities



(1,670)



(1,494)








Cash Flows from Financing Activities







Net proceeds in short-term borrowings (original maturities three months or less)



58



3,992

Proceeds from borrowings issued (original maturities greater than three months)



10,189



4,868

Payments of borrowings (original maturities greater than three months)



(8,139)



(3,567)

Repurchases of common stock



(2,422)



(2,546)

Dividends paid



(796)



(697)

Other



(52)



(33)

Net cash provided by (used for) financing activities



(1,162)



2,017








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



(5)



70








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



(1,893)



446

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period



7,620



4,941

Cash, Cash Equivalents, and Restricted Cash at End of Period


$

5,727


$

5,387


See Condensed Notes to Interim Consolidated Financial Statements.

 




DEERE & COMPANY


Condensed Notes to Interim Consolidated Financial Statements


(In millions of dollars) Unaudited



(1)

In the second quarter of 2023, the company corrected the accounting treatment for financing incentives offered to John Deere dealers, which impacted the timing of expense recognition and the presentation of incentive costs in the consolidated financial statements. The cumulative effect of this correction, $173 million pretax ($135 million after-tax), was recorded in the second quarter of 2023 in "Selling, administrative and general expenses" by financial services. 



(2)

The consolidated financial statements represent the consolidation of all Deere & Company's subsidiaries. The supplemental consolidating data is presented for informational purposes. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidated financial statements. In the supplemental consolidating data in Note 3 to the financial statements, the "Equipment Operations" represents the enterprise without "Financial Services", which include the company's production and precision agriculture operations, small agriculture and turf operations, and construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within "Financial Services."

 

DEERE & COMPANY

(3) SUPPLEMENTAL CONSOLIDATING DATA

STATEMENTS OF INCOME

For the Three Months Ended April 28, 2024 and April 30, 2023

(In millions of dollars) Unaudited


























EQUIPMENT


FINANCIAL









OPERATIONS


SERVICES


ELIMINATIONS


CONSOLIDATED





2024


2023


2024


2023


2024


2023


2024


2023



Net Sales and Revenues



























Net sales


$

13,610


$

16,079














$

13,610


$

16,079



Finance and interest income



129



121


$

1,496


$

1,206


$

(238)


$

(248)



1,387



1,079

1


Other income



198



185



92



91



(52)



(47)



238



229

2, 3


Total



13,937



16,385



1,588



1,297



(290)



(295)



15,235



17,387






























Costs and Expenses



























Cost of sales



9,164



10,737









(7)



(7)



9,157



10,730

4


Research and development expenses



565



547















565



547



Selling, administrative and general expenses



1,007



935



260



397



(2)



(2)



1,265



1,330

4


Interest expense



114



103



780



540



(58)



(74)



836



569

1


Interest compensation to Financial Services



180



174









(180)



(174)







1


Other operating expenses



1



85



337



316



(43)



(38)



295



363

3, 5


Total



11,031



12,581



1,377



1,253



(290)



(295)



12,118



13,539






























Income before Income Taxes



2,906



3,804



211



44









3,117



3,848



Provision for income taxes



700



974



51



17









751



991






























Income after Income Taxes



2,206



2,830



160



27









2,366



2,857



Equity in income of unconsolidated affiliates






1



2



1









2



2






























Net Income



2,206



2,831



162



28









2,368



2,859



Less: Net loss attributable to noncontrolling interests



(2)



(1)















(2)



(1)



Net Income Attributable to Deere & Company


$

2,208


$

2,832


$

162


$

28








$

2,370


$

2,860
































1

Elimination of intercompany interest income and expense.

2

Elimination of Equipment Operations' margin from inventory transferred to equipment on operating leases.

3

Elimination of income and expense between Equipment Operations and Financial Services related to intercompany guarantees of investments in certain international markets and intercompany service revenues and expenses.

4

Elimination of intercompany service fees.

5

Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.

 

DEERE & COMPANY

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

STATEMENTS OF INCOME

For the Six Months Ended April 28, 2024 and April 30, 2023

(In millions of dollars) Unaudited


























EQUIPMENT


FINANCIAL









OPERATIONS


SERVICES


ELIMINATIONS


CONSOLIDATED





2024


2023


2024


2023


2024


2023


2024


2023



Net Sales and Revenues



























Net sales


$

24,097


$

27,481














$

24,097


$

27,481



Finance and interest income



285



234


$

2,929


$

2,274


$

(468)


$

(435)



2,746



2,073

1


Other income



487



417



211



268



(121)



(201)



577



484

2, 3


Total



24,869



28,132



3,140



2,542



(589)



(636)



27,420



30,038






























Costs and Expenses



























Cost of sales



16,371



18,675









(14)



(12)



16,357



18,663

4


Research and development expenses



1,098



1,043















1,098



1,043



Selling, administrative and general expenses



1,882



1,719



453



569



(5)



(5)



2,330



2,283

4


Interest expense



223



204



1,542



983



(127)



(138)



1,638



1,049

1


Interest compensation to Financial Services



341



297









(341)



(297)







1


Other operating expenses



91



137



675



707



(102)



(184)



664



660

3, 5


Total



20,006



22,075



2,670



2,259



(589)



(636)



22,087



23,698






























Income before Income Taxes



4,863



6,057



470



283









5,333



6,340



Provision for income taxes



1,117



1,455



103



73









1,220



1,528






























Income after Income Taxes



3,746



4,602



367



210









4,113



4,812



Equity in income of unconsolidated affiliates






1



3



2









3



3






























Net Income



3,746



4,603



370



212









4,116



4,815



Less: Net loss attributable to noncontrolling interests



(5)



(4)















(5)



(4)



Net Income Attributable to Deere & Company


$

3,751


$

4,607


$

370


$

212








$

4,121


$

4,819
































1

Elimination of intercompany interest income and expense.

2

Elimination of Equipment Operations' margin from inventory transferred to equipment on operating leases.

3

Elimination of income and expense between Equipment Operations and Financial Services related to intercompany guarantees of investments in certain international markets and intercompany service revenues and expenses.

4

Elimination of intercompany service fees.

5

Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.

 

DEERE & COMPANY

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

CONDENSED BALANCE SHEETS

(In millions of dollars) Unaudited
































EQUIPMENT


FINANCIAL









OPERATIONS


SERVICES


ELIMINATIONS


CONSOLIDATED





Apr 28


Oct 29


Apr 30


Apr 28


Oct 29


Apr 30


Apr 28


Oct 29


Apr 30


Apr 28


Oct 29


Apr 30





2024


2023


2023


2024


2023


2023


2024


2023


2023


2024


2023


2023



Assets







































Cash and cash equivalents


$

3,800


$

5,720


$

3,587


$

1,753


$

1,738


$

1,680











$

5,553


$

7,458


$

5,267



Marketable securities



148



104



14



946



842



842












1,094



946



856



Receivables from Financial Services



4,480



4,516



5,899











$

(4,480)


$

(4,516)


$

(5,899)










6


Trade accounts and notes receivable – net



1,320



1,320



1,562



10,263



8,687



10,422



(2,703)



(2,268)



(2,013)



8,880



7,739



9,971

7


Financing receivables – net



80



64



54



45,198



43,609



38,900












45,278



43,673



38,954



Financing receivables securitized – net









1



7,262



7,335



5,658












7,262



7,335



5,659



Other receivables



1,822



1,813



2,201



760



869



481



(47)



(59)



(89)



2,535



2,623



2,593

7


Equipment on operating leases  – net












6,965



6,917



6,524












6,965



6,917



6,524



Inventories



8,443



8,160



9,713





















8,443



8,160



9,713



Property and equipment – net



6,999



6,843



6,254



35



36



34












7,034



6,879



6,288



Goodwill



3,936



3,900



3,963





















3,936



3,900



3,963



Other intangible assets – net



1,064



1,133



1,222





















1,064



1,133



1,222



Retirement benefits



2,980



2,936



3,450



77



72



69



(1)



(1)






3,056



3,007



3,519

8


Deferred income taxes



2,210



2,133



1,355



71



68



59



(345)



(387)



(106)



1,936



1,814



1,308

9


Other assets



2,105



1,948



1,961



504



559



564



(17)



(4)



(15)



2,592



2,503



2,510



Total Assets


$

39,387


$

40,590


$

41,236


$

73,834


$

70,732


$

65,233


$

(7,593)


$

(7,235)


$

(8,122)


$

105,628


$

104,087


$

98,347










































Liabilities and Stockholders' Equity














































































Liabilities







































Short-term borrowings


$

1,055


$

1,230


$

1,755


$

16,644


$

16,709


$

15,354











$

17,699


$

17,939


$

17,109



Short-term securitization borrowings












6,976



6,995



5,379












6,976



6,995



5,379



Payables to Equipment Operations












4,480



4,516



5,899


$

(4,480)


$

(4,516)


$

(5,899)










6


Accounts payable and accrued expenses



13,771



14,862



13,759



3,605



3,599



3,074



(2,767)



(2,331)



(2,117)



14,609



16,130



14,716

7


Deferred income taxes



421



452



402



415



455



215



(345)



(387)



(106)



491



520



511

9


Long-term borrowings



6,575



7,210



7,310



34,387



31,267



28,301












40,962



38,477



35,611



Retirement benefits and other liabilities



1,995



2,032



2,410



111



109



110



(1)



(1)






2,105



2,140



2,520

8


Total liabilities



23,817



25,786



25,636



66,618



63,650



58,332



(7,593)



(7,235)



(8,122)



82,842



82,201



75,846










































Redeemable noncontrolling interest



98



97



102





















98



97



102










































Stockholders' Equity







































Total Deere & Company stockholders' equity



22,684



21,785



22,395



7,216



7,082



6,901



(7,216)



(7,082)



(6,901)



22,684



21,785



22,395

10


Noncontrolling interests



4



4



4





















4



4



4



Financial Services equity



(7,216)



(7,082)



(6,901)












7,216



7,082



6,901










10


Adjusted total stockholders' equity



15,472



14,707



15,498



7,216



7,082



6,901












22,688



21,789



22,399



Total Liabilities and Stockholders' Equity


$

39,387


$

40,590


$

41,236


$

73,834


$

70,732


$

65,233


$

(7,593)


$

(7,235)


$

(8,122)


$

105,628


$

104,087


$

98,347












































6

Elimination of receivables / payables between Equipment Operations and Financial Services.

7

Primarily reclassification of sales incentive accruals on receivables sold to Financial Services.

8

Reclassification of net pension assets / liabilities.

9

Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.

10

Elimination of Financial Services' equity.

 

DEERE & COMPANY

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

STATEMENTS OF CASH FLOWS

For the Six Months Ended April 28, 2024 and April 30, 2023

(In millions of dollars) Unaudited


























EQUIPMENT


FINANCIAL









OPERATIONS


SERVICES


ELIMINATIONS


CONSOLIDATED





2024


2023


2024


2023


2024


2023


2024


2023



Cash Flows from Operating Activities



























Net income


$

3,746


$

4,603


$

370


$

212








$

4,116


$

4,815



Adjustments to reconcile net income to net cash provided by (used for) operating activities:



























Provision (credit) for credit losses



10



4



121



(93)









131



(89)



Provision for depreciation and amortization



608



565



509



500


$

(72)


$

(70)



1,045



995

11


Other non-cash adjustments (Note 1)












173












173



Share-based compensation expense















104



54



104



54

12


Distributed earnings of Financial Services



247



12









(247)



(12)







13


Credit for deferred income taxes



(74)



(304)



(46)



(73)









(120)



(377)



Changes in assets and liabilities:



























Receivables related to sales



(58)



(255)









(2,411)



(4,152)



(2,469)



(4,407)

14, 16


Inventories



(300)



(910)









(109)



(72)



(409)



(982)

15


Accounts payable and accrued expenses



(1,012)



161



147



243



(435)



(717)



(1,300)



(313)

16


Accrued income taxes payable/receivable



(20)



(97)



(9)



1









(29)



(96)



Retirement benefits



(205)



(67)



(3)



(1)









(208)



(68)



Other



89



54



65



103



(71)



(9)



83



148

11, 12, 15


Net cash provided by (used for) operating activities



3,031



3,766



1,154



1,065



(3,241)



(4,978)



944



(147)






























Cash Flows from Investing Activities



























Collections of receivables (excluding receivables related to sales)









14,175



13,169



(472)



(576)



13,703



12,593

14


Proceeds from maturities and sales of marketable securities



58



62



142



36









200



98



Proceeds from sales of equipment on operating leases









1,011



993









1,011



993



Cost of receivables acquired (excluding receivables related to sales)









(14,238)



(13,584)



147



133



(14,091)



(13,451)

14


Purchases of marketable securities



(226)



(21)



(206)



(167)









(432)



(188)



Purchases of property and equipment



(718)



(583)



(1)



(1)









(719)



(584)



Cost of equipment on operating leases acquired









(1,516)



(1,327)



147



98



(1,369)



(1,229)

15


Decrease (increase) in investment in Financial Services



10



(799)









(10)



799







17


Increase in trade and wholesale receivables









(3,171)



(5,310)



3,171



5,310







14


Collateral on derivatives – net









96



367









96



367



Other



(68)



(119)



(2)



25



1



1



(69)



(93)



Net cash used for investing activities



(944)



(1,460)



(3,710)



(5,799)



2,984



5,765



(1,670)



(1,494)






























Cash Flows from Financing Activities



























Net proceeds (payments) in short-term borrowings (original maturities three months or less)



189



(225)



(131)



4,217









58



3,992



Change in intercompany receivables/payables



31



932



(31)



(932)















Proceeds from borrowings issued (original maturities greater than three months)



34



41



10,155



4,827









10,189



4,868



Payments of borrowings (original maturities greater than three months)



(1,012)



(47)



(7,127)



(3,520)









(8,139)



(3,567)



Repurchases of common stock



(2,422)



(2,546)















(2,422)



(2,546)



Capital Investment from Equipment Operations









(10)



799



10



(799)







17


Dividends paid



(796)



(697)



(247)



(12)



247



12



(796)



(697)

13


Other



(27)



(5)



(25)



(28)









(52)



(33)



Net cash provided by (used for) financing activities



(4,003)



(2,547)



2,584



5,351



257



(787)



(1,162)



2,017






























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






62



(5)



8









(5)



70






























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



(1,916)



(179)



23



625









(1,893)



446



Cash, Cash Equivalents, and Restricted Cash at Beginning of Period



5,755



3,781



1,865



1,160









7,620



4,941



Cash, Cash Equivalents, and Restricted Cash at End of Period


$

3,839


$

3,602


$

1,888


$

1,785








$

5,727


$

5,387
































11

Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.

12

Reclassification of share-based compensation expense.

13

Elimination of dividends from Financial Services to the Equipment Operations, which are included in the Equipment Operations operating activities.

14

Primarily reclassification of receivables related to the sale of equipment.

15

Reclassification of direct lease agreements with retail customers.

16

Reclassification of sales incentive accruals on receivables sold to Financial Services.

17

Elimination of change in investment from Equipment Operations to Financial Services.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/deere-reports-second-quarter-net-income-of-2-370-billion-302147595.html

SOURCE John Deere Company

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