— Disciplined execution drives strong quarterly performance across all segments.
— Employees and dealers showcase resilience in supporting customers amidst heighteneduncertainty.
— Full-year net income range broadened in response to dynamic environment.
Deere & Company reported net income of $1.804 billion for the second quarter ended April 27, 2025, or $6.64 per share, compared with net income of $2.370 billion, or $8.53 per share, for the quarter ended April 28, 2024. For the first six months of the year, net income attributable to Deere & Company was $2.673 billion, or $9.82 per share, compared with $4.121 billion, or $14.74 per share, for the same period last year.
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Worldwide net sales and revenues decreased 16 percent, to $12.763 billion, for the second quarter of 2025 and decreased 22 percent, to $21.272 billion, for six months. Net sales were $11.171 billion for the quarter and $17.980 billion for six months, compared with $13.610 billion and $24.097billion last year, respectively.
“As we navigate the current environment, our customers remain our top priority,” said John May, chairman and CEO of John Deere. “I'm incredibly proud of our team's execution this quarter, delivering exceptional performance despite challenging market dynamics. Their dedication and hard work have been instrumental in ensuring our customers continue to receive the high-quality service and products they expect from John Deere.”
Company Outlook& Summary
Net income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75billion to $5.50 billion.
“Despite the near-term market challenges, we remain confident in the future,” said May. “Our commitment to delivering value for our customers includes ongoing investment in advanced products, solutions, and manufacturing capabilities. Over the next decade, we will continue to make significant investments in our core U.S. market, underscoring our dedication to innovation and growth while focusing on remaining cost-competitive in a global market.”
Deere & Company Second Quarter Year to Date$ in millions, except per share amounts 2025 2024 % Change 2025 2024 % ChangeNet sales and revenues $ 12,763 $ 15,235 -16% $ 21,272 $ 27,420 -22%Net income $ 1,804 $ 2,370 -24% $ 2,673 $ 4,121 -35%Fully diluted EPS $ 6.64 $ 8.53 $ 9.82 $ 14.74
Current period results were affected by special items. See Note 1 of the financial statements for further details. The cost of additional tariffs for each segment is included in the production costs and other items below, partially offsetting year-over-year cost reduction in these categories.
Production & Precision Agriculture Second Quarter$ in millions 2025 2024 % ChangeNet sales $ 5,230 $ 6,581 -21%Operating profit $ 1,148 $ 1,650 -30%Operating margin 22.0% 25.1%
Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes. Operating profit decreased due to lower shipment volumes / sales mix and the unfavorable effects of foreign currency exchange, partially offset by lower production costs and price realization.
Small Agriculture & Turf Second Quarter$ in millions 2025 2024 % ChangeNet sales $ 2,994 $ 3,185 -6%Operating profit $ 574 $ 571 1%Operating margin 19.2% 17.9%
Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit held steady as favorable factors including lower production costs, lower warranty expenses, and price realization were offset by lower shipment volumes / sales mix.
Construction & Forestry Second Quarter$ in millions 2025 2024 % ChangeNet sales $ 2,947 $ 3,844 -23%Operating profit $ 379 $ 668 -43%Operating margin 12.9% 17.4%
Construction and forestry sales decreased for the quarter due to lower shipment volumes. Operating profit decreased primarily due to lower shipment volumes / sales mix and unfavorable price realization.
Financial Services Second Quarter$ in millions 2025 2024 % ChangeNet income $ 161 $ 162 -1%
Financial services net income for the quarter was flat due to less-favorable financing spreads and a higher provision for credit losses, offset by lower SA&G expenses and a reduction in derivative valuation adjustments.
Industry Outlook for Fiscal 2025Agriculture & TurfU.S. & Canada:Large Ag Down 30%Small Ag & Turf Down 10-15%Europe Down 5%South America (Tractors & Combines) FlatAsia FlatConstruction & ForestryU.S. & Canada:Construction Equipment Down 10%Compact Construction Equipment Down 5%Global Forestry Flat to down 5%Global Roadbuilding Flat
Deere Segment Outlook for Fiscal 2025
The Deere & Company outlook incorporates the impacts from global import tariffs that are in effect as of May 13, 2025. Due to the uncertain global trade environment, the potential impacts of future tariffs are not included in the outlook.
Currency Price$ in millions Net Sales Translation RealizationProduction & Precision Ag Down 15% to 20% Down 1.5% Up 1.0%Small Ag & Turf Down 10% to 15% Flat Up 0.5%Construction & Forestry Down 10% to 15% Flat Down 1.0%Financial Services Net Income $ 750
FORWARD-LOOKING STATEMENTS
Certain statements contained herein, including in the section entitled “Company Outlook & Summary,””Industry Outlook for Fiscal 2025,””Deere Segment Outlook for Fiscal 2025,”and “Condensed Notes to Interim Consolidated Financial Statements”relating to future events, expectations, forecasted financial and industry results, future investment and trends constitute “forward-looking statements”as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally while others could more heavily affect a particular line of business.
Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:
— government policies and actions with respect to the global trade environment including increased and proposed tariffs announced by the U.S. government, any potential retaliatory trade regulations, tariffs and policies and the uncertainty of the company's ability to sell products domestically or internationally, continue production at certain international facilities, procure raw materials and components, accurately forecast demand and inventory, manage increased costs of production, absorb or pass on increased pricing, accurately predict financial results and industry trends, and remain competitive based on these trade actions, policies and general economic uncertainty;
— the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, harvest yields, available farm acres, acreage planted, soil conditions, prices for commodities and livestock, input costs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer practices due to slower economic growth or a recession and regional or global liquidity constraints;
— higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for the company's products and solutions;
— the company's ability to adapt in highly competitive markets, including understanding and meeting customers' changing expectations for products and solutions, including delivery and utilization of precision technology;
— housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment;
— political, economic, and social instability of the geographies in which the company operates, including the ongoing war between Russia and Ukraine, the conflict between India and Pakistan, and the conflicts in the Middle East;
— worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and consequently the demand for the company's equipment;
— investigations, claims, lawsuits, or other legal proceedings, including the lawsuit filed by the Federal Trade Commission (FTC) and the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that the company unlawfully withheld self-repair capabilities from farmers and independent repair providers;
— delays or disruptions in the company's supply chain;
— changes in climate patterns, unfavorable weather events, and natural disasters;
— availability and price of raw materials, components, and whole goods;
— suppliers' and manufacturers' business practices and compliance with applicable laws such as human rights, safety, environmental, and fair wages;
— loss of or challenges to intellectual property rights;
— rationalization, restructuring, relocation, expansion and/or reconfiguration of manufacturing and warehouse facilities;
— the ability to execute business strategies, including the company's Smart Industrial Operating Model and Leap Ambitions;
— accurately forecasting customer demand for products and services and adequately managing inventory;
— dealer practices and their ability to manage inventory and distribution of the company's products and to provide support and service for precision technology solutions;
— the ability to realize anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes;
— negative claims or publicity that damage the company's reputation or brand;
— the ability to attract, develop, engage, and retain qualified employees;
— the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge;
— labor relations and contracts, including work stoppages and other disruptions;
— security breaches, cybersecurity attacks, technology failures, and other disruptions to the company's information technology infrastructure and products;
— leveraging artificial intelligence and machine learning within the company's business processes;
— changes to governmental communications channels (radio frequency technology);
— changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environmental (including climate change and engine emissions), farming, health and safety, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, human rights, import / export and trade, tariffs, labor and employment, product liability, telematics, and telecommunications;
— governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy; and
— warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations as a result of the deficient operation of the company's products.
Further information concerning the company or its businesses, including factors that could materially affect the company's financial results, is included in the company's filings with the SEC (including, but not limited to, the factors discussed in Item 1A. “Risk Factors” of the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.
DEERE & COMPANYSECOND QUARTER 2025 PRESS RELEASE(In millions of dollars) Unaudited Three Months Ended Six Months Ended April 27 April 28 % April 27 April 28 % 2025 2024 Change 2025 2024 ChangeNet sales and revenues:Production & precision ag net sales $ 5,230 $ 6,581 -21 $ 8,297 $ 11,430 -27Small ag & turf net sales 2,994 3,185 -6 4,742 5,610 -15Construction & forestry net sales 2,947 3,844 -23 4,941 7,057 -30Financial services revenues 1,385 1,395 -1 2,856 2,770 +3Other revenues 207 230 -10 436 553 -21Total net sales and revenues $ 12,763 $ 15,235 -16 $ 21,272 $ 27,420 -22Operating profit: *Production & precision ag $ 1,148 $ 1,650 -30 $ 1,486 $ 2,695 -45Small ag & turf 574 571 +1 698 897 -22Construction & forestry 379 668 -43 444 1,234 -64Financial services 207 209 -1 473 466 +2Total operating profit 2,308 3,098 -26 3,101 5,292 -41Reconciling items ** 35 23 +52 138 49 +182Income taxes (539) (751) -28 (566) (1,220) -54Net income attributable to Deere & Company $ 1,804 $ 2,370 -24 $ 2,673 $ 4,121 -35
* Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of financial services includes the effect of interest expense and foreign exchange gains and losses.** Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests.
DEERE & COMPANYSTATEMENTS OF CONSOLIDATED INCOMEFor the Three and Six Months Ended April 27, 2025 and April 28, 2024(In millions of dollars and shares except per share amounts) Unaudited Three Months Ended Six Months Ended 2025 2024 2025 2024Net Sales and RevenuesNet sales $ 11,171 $ 13,610 $ 17,980 $ 24,097Finance and interest income 1,354 1,387 2,807 2,746Other income 238 238 485 577Total 12,763 15,235 21,272 27,420Costs and ExpensesCost of sales 7,609 9,157 12,646 16,357Research and development expenses 549 565 1,075 1,098Selling, administrative and general expenses 1,197 1,265 2,169 2,330Interest expense 784 836 1,614 1,638Other operating expenses 287 295 536 664Total 10,426 12,118 18,040 22,087Income of Consolidated Group before Income Taxes 2,337 3,117 3,232 5,333Provision for income taxes 539 751 566 1,220Income of Consolidated Group 1,798 2,366 2,666 4,113Equity in income of unconsolidated affiliates 3 2 1 3Net Income 1,801 2,368 2,667 4,116Less: Net loss attributable to noncontrolling interests (3) (2) (6) (5)Net Income Attributable to Deere & Company $ 1,804 $ 2,370 $ 2,673 $ 4,121Per Share DataBasic $ 6.65 $ 8.56 $ 9.85 $ 14.80Diluted 6.64 8.53 9.82 14.74Dividends declared 1.62 1.47 3.24 2.94Dividends paid 1.62 1.47 3.09 2.82Average Shares OutstandingBasic 271.1 276.8 271.3 278.4Diluted 271.8 277.9 272.1 279.5
See Condensed Notes to Interim Consolidated Financial Statements.
DEERE & COMPANYCONDENSED CONSOLIDATED BALANCE SHEETS(In millions of dollars) Unaudited April 27 October27 April 28 2025 2024 2024AssetsCash and cash equivalents $ 7,991 $ 7,324 $ 5,553Marketable securities 1,272 1,154 1,094Trade accounts and notes receivable – net 6,748 5,326 8,880Financing receivables – net 43,029 44,309 45,278Financing receivables securitized – net 7,765 8,723 7,262Other receivables 2,975 2,545 2,535Equipment on operating leases – net 7,336 7,451 6,965Inventories 7,870 7,093 8,443Property and equipment – net 7,555 7,580 7,034Goodwill 4,094 3,959 3,936Other intangible assets – net 964 999 1,064Retirement benefits 3,133 2,921 3,056Deferred income taxes 2,088 2,086 1,936Other assets 3,483 2,906 2,592Assets held for sale 2,944Total Assets $ 106,303 $ 107,320 $ 105,628Liabilities and Stockholders' EquityLiabilitiesShort-term borrowings $ 15,948 $ 13,533 $ 17,699Short-term securitization borrowings 7,562 8,431 6,976Accounts payable and accrued expenses 13,345 14,543 14,609Deferred income taxes 496 478 491Long-term borrowings 42,811 43,229 40,962Retirement benefits and other liabilities 1,763 2,354 2,105Liabilities held for sale 1,827Total liabilities 81,925 84,395 82,842Redeemable noncontrolling interest 83 82 98Stockholders' EquityTotal Deere & Company stockholders' equity 24,287 22,836 22,684Noncontrolling interests 8 7 4Total stockholders' equity 24,295 22,843 22,688Total Liabilities and Stockholders' Equity $ 106,303 $ 107,320 $ 105,628
See Condensed Notes to Interim Consolidated Financial Statements.
DEERE & COMPANYSTATEMENTS OF CONSOLIDATED CASH FLOWSFor the Six Months Ended April 27, 2025 and April 28, 2024(In millions of dollars) Unaudited 2025 2024Cash Flows from Operating ActivitiesNet income $ 2,667 $ 4,116Adjustments to reconcile net income to net cash provided by operating activities:Provision for credit losses 174 131Provision for depreciation and amortization 1,104 1,045Impairments and other adjustments (32)Share-based compensation expense 54 104Provision (credit) for deferred income taxes 11 (120)Changes in assets and liabilities:Receivables related to sales (1,069) (2,469)Inventories (772) (409)Accounts payable and accrued expenses (898) (1,300)Accrued income taxes payable/receivable (147) (29)Retirement benefits (794) (208)Other 270 83Net cash provided by operating activities 568 944Cash Flows from Investing ActivitiesCollections of receivables (excluding receivables related to sales) 14,348 13,703Proceeds from maturities and sales of marketable securities 245 200Proceeds from sales of equipment on operating leases 1,001 1,011Cost of receivables acquired (excluding receivables related to sales) (12,744) (14,091)Purchases of marketable securities (347) (432)Purchases of property and equipment (555) (719)Cost of equipment on operating leases acquired (1,254) (1,369)Collections of receivables from unconsolidated affiliates 234Collateral on derivatives – net 27 96Other (176) (69)Net cash provided by (used for) investing activities 779 (1,670)Cash Flows from Financing ActivitiesNet proceeds in short-term borrowings (original maturities three months or less) 551 58Proceeds from borrowings issued (original maturities greater than three months) 5,156 10,189Payments of borrowings (original maturities greater than three months) (4,837) (8,139)Repurchases of common stock (838) (2,422)Dividends paid (843) (796)Other (10) (52)Net cash used for financing activities (821) (1,162)Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 20 (5)Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 546 (1,893)Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 7,633 7,620Cash, Cash Equivalents, and Restricted Cash at End of Period $ 8,179 $ 5,727
See Condensed Notes to Interim Consolidated Financial Statements.
DEERE & COMPANY Condensed Notes to Interim Consolidated Financial Statements (In millions of dollars) Unaudited
(1) Special Items
Discrete Tax Items
In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary.
Banco John Deere S.A.
In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become 50% owner of the company's wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company's incremental risk as it continues to grow in the Brazilian market. The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in “Equity in income of unconsolidated affiliates”within the financial services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in “Other assets” and “Other receivables,” respectively.
BJD was reclassified as held for sale in the third quarter of 2024. In the first quarter of 2025, a pretax and after-tax gain (reversal of previous losses) of $32 million was recorded in “Selling, administrative and general expenses” and presented in “Impairments and other adjustments” in the statements of consolidated income and consolidated cash flows, respectively, related to a decrease in valuation allowance. No significant gain or loss was recognized upon completion of the transaction. The equity interest in BJD was valued at $362 million at the deconsolidation date.
(2) The consolidated financial statements represent the consolidation of all the company's subsidiaries. The supplemental consolidating data in Note 3 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without financial services. Equipment operations include the company's production and precision agriculture operations, small agriculture and turf operations, and construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within financial services. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidated financial statements.
DEERE & COMPANY(3) SUPPLEMENTAL CONSOLIDATING DATASTATEMENTS OF INCOMEFor the Three Months Ended April 27, 2025 and April 28, 2024(In millions of dollars) Unaudited EQUIPMENT FINANCIAL OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED 2025 2024 2025 2024 2025 2024 2025 2024Net Sales and RevenuesNet sales $ 11,171 $ 13,610 $ 11,171 $ 13,610Finance and interest income 108 129 $ 1,380 $ 1,496 $ (134) $ (238) 1,354 1,387 1Other income 187 198 121 92 (70) (52) 238 238 2, 3, 4Total 11,466 13,937 1,501 1,588 (204) (290) 12,763 15,235Costs and ExpensesCost of sales 7,617 9,164 (8) (7) 7,609 9,157 4Research and developmentexpenses 549 565 549 565Selling, administrative and generalexpenses 961 1,007 238 260 (2) (2) 1,197 1,265 4Interest expense 94 114 721 780 (31) (58) 784 836 1Interest compensation to FinancialServices 103 180 (103) (180) 1Other operating expenses 12 1 335 337 (60) (43) 287 295 3, 4, 5Total 9,336 11,031 1,294 1,377 (204) (290) 10,426 12,118Income before Income Taxes 2,130 2,906 207 211 2,337 3,117Provision for income taxes 490 700 49 51 539 751Income after Income Taxes 1,640 2,206 158 160 1,798 2,366Equity in income of unconsolidatedaffiliates 3 2 3 2Net Income 1,640 2,206 161 162 1,801 2,368Less: Net loss attributable to noncontrollinginterests (3) (2) (3) (2)Net Income Attributable to Deere&Company $ 1,643 $ 2,208 $ 161 $ 162 $ 1,804 $ 2,370
1 Elimination of intercompany interest income and expense.2 Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.3 Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets.4 Elimination of intercompany service revenues and fees.5 Elimination of financial services' lease depreciation expense related to inventory transferred to equipment on operating leases.
DEERE & COMPANYSUPPLEMENTAL CONSOLIDATING DATA (Continued)STATEMENTS OF INCOMEFor the Six Months Ended April 27, 2025 and April 28, 2024(In millions of dollars) Unaudited EQUIPMENT FINANCIAL OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED 2025 2024 2025 2024 2025 2024 2025 2024Net Sales and RevenuesNet sales $ 17,980 $ 24,097 $ 17,980 $ 24,097Finance and interest income 217 285 $ 2,835 $ 2,929 $ (245) $ (468) 2,807 2,746 1Other income 391 487 239 211 (145) (121) 485 577 2, 3, 4Total 18,588 24,869 3,074 3,140 (390) (589) 21,272 27,420Costs and ExpensesCost of sales 12,662 16,371 (16) (14) 12,646 16,357 4Research and developmentexpenses 1,075 1,098 1,075 1,098Selling, administrative and generalexpenses 1,761 1,882 412 453 (4) (5) 2,169 2,330 4Interest expense 178 223 1,487 1,542 (51) (127) 1,614 1,638 1Interest compensation to FinancialServices 194 341 (194) (341) 1Other operating expenses (38) 91 699 675 (125) (102) 536 664 3, 4, 5Total 15,832 20,006 2,598 2,670 (390) (589) 18,040 22,087Income before Income Taxes 2,756 4,863 476 470 3,232 5,333Provision for income taxes 477 1,117 89 103 566 1,220Income after Income Taxes 2,279 3,746 387 367 2,666 4,113Equity in income (loss) of unconsolidatedaffiliates (3) 4 3 1 3Net Income 2,276 3,746 391 370 2,667 4,116Less: Net loss attributable to noncontrollinginterests (6) (5) (6) (5)Net Income Attributable to Deere&Company $ 2,282 $ 3,751 $ 391 $ 370 $ 2,673 $ 4,121
1 Elimination of intercompany interest income and expense.2 Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.3 Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets.4 Elimination of intercompany service revenues and fees.5 Elimination of financial services' lease depreciation expense related to inventory transferred to equipment on operating leases.
DEERE &COMPANYSUPPLEMENTALCONSOLIDATING DATA (Continued)CONDENSED BALANCE SHEETS(In millions of dollars) Unaudited EQUIPMENT FINANCIAL OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED Apr 27 Oct 27 Apr 28 Apr 27 Oct 27 Apr 28 Apr 27 Oct 27 Apr 28 Apr 27 Oct 27 Apr 28 2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024AssetsCash and cash equivalents $ 6,331 $ 5,615 $ 3,800 $ 1,660 $ 1,709 $ 1,753 $ 7,991 $ 7,324 $ 5,553Marketable securities 139 125 148 1,133 1,029 946 1,272 1,154 1,094Receivables from Financial Services 2,497 3,043 4,480 $ (2,497) $ (3,043) $ (4,480) 6Trade accounts and notes receivable-net 1,429 1,257 1,320 7,406 6,225 10,263 (2,087) (2,156) (2,703) 6,748 5,326 8,880 7Financing receivables – net 82 78 80 42,947 44,231 45,198 43,029 44,309 45,278Financing receivables securitized-net 2 2 7,763 8,721 7,262 7,765 8,723 7,262Other receivables 2,009 2,193 1,822 1,009 427 760 (43) (75) (47) 2,975 2,545 2,535 7Equipment on operating leases – net 7,336 7,451 6,965 7,336 7,451 6,965Inventories 7,870 7,093 8,443 7,870 7,093 8,443Property and equipment – net 7,523 7,546 6,999 32 34 35 7,555 7,580 7,034Goodwill 4,094 3,959 3,936 4,094 3,959 3,936Other intangible assets – net 964 999 1,064 964 999 1,064Retirement benefits 3,046 2,839 2,980 89 83 77 (2) (1) (1) 3,133 2,921 3,056 8Deferred income taxes 2,377 2,262 2,210 42 43 71 (331) (219) (345) 2,088 2,086 1,936 9Other assets 2,349 2,194 2,105 1,152 715 504 (18) (3) (17) 3,483 2,906 2,592Assets held for sale 2,944 2,944Total Assets $ 40,712 $ 39,205 $ 39,387 $ 70,569 $ 73,612 $ 73,834 $ (4,978) $ (5,497) $ (7,593) $ 106,303 $ 107,320 $ 105,628Liabilities and Stockholders'EquityLiabilitiesShort-term borrowings $ 241 $ 911 $ 1,055 $ 15,707 $ 12,622 $ 16,644 $ 15,948 $ 13,533 $ 17,699Short-term securitization borrowings 1 2 7,561 8,429 6,976 7,562 8,431 6,976Payables to Equipment Operations 2,497 3,043 4,480 $ (2,497) $ (3,043) $ (4,480) 6Accounts payable and accruedexpenses 12,180 13,534 13,771 3,313 3,243 3,605 (2,148) (2,234) (2,767) 13,345 14,543 14,609 7Deferred income taxes 405 434 421 422 263 415 (331) (219) (345) 496 478 491 9Long-term borrowings 8,685 6,603 6,575 34,126 36,626 34,387 42,811 43,229 40,962Retirement benefits and otherliabilities 1,695 2,250 1,995 70 105 111 (2) (1) (1) 1,763 2,354 2,105 8Liabilities held for sale 1,827 1,827Total liabilities 23,207 23,734 23,817 63,696 66,158 66,618 (4,978) (5,497) (7,593) 81,925 84,395 82,842Redeemable noncontrolling interest 83 82 98 83 82 98Stockholders' EquityTotal Deere& Company stockholders'equity 24,287 22,836 22,684 6,873 7,454 7,216 (6,873) (7,454) (7,216) 24,287 22,836 22,684 10Noncontrolling interests 8 7 4 8 7 4Financial Services' equity (6,873) (7,454) (7,216) 6,873 7,454 7,216 10Adjusted total stockholders' equity 17,422 15,389 15,472 6,873 7,454 7,216 24,295 22,843 22,688Total Liabilities and Stockholders'Equity $ 40,712 $ 39,205 $ 39,387 $ 70,569 $ 73,612 $ 73,834 $ (4,978) $ (5,497) $ (7,593) $ 106,303 $ 107,320 $ 105,628
6 Elimination of receivables / payables between equipment operations and financial services.7 Primarily reclassification of sales incentive accruals on receivables sold to financial services.8 Reclassification of net pension assets / liabilities.9 Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.10 Elimination of financial services' equity.
DEERE & COMPANYSUPPLEMENTAL CONSOLIDATING DATA (Continued)STATEMENTS OF CASH FLOWSFor the Six Months Ended April 27, 2025 and April 28, 2024(In millions of dollars) Unaudited EQUIPMENT FINANCIAL OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED 2025 2024 2025 2024 2025 2024 2025 2024Cash Flows from Operating ActivitiesNet income $ 2,276 $ 3,746 $ 391 $ 370 $ 2,667 $ 4,116Adjustments to reconcile net income to net cash provided by operating activities:Provision for credit losses 11 10 163 121 174 131Provision for depreciation and amortization 643 608 529 509 $ (68) $ (72) 1,104 1,045 11Impairments and other adjustments (32) (32)Share-based compensation expense 54 104 54 104 12Distributed earnings of Financial Services 984 247 (984) (247) 13Provision (credit) for deferred income taxes (153) (74) 164 (46) 11 (120)Changes in assets and liabilities:Receivables related to sales (185) (58) (884) (2,411) (1,069) (2,469) 14, 16Inventories (691) (300) (81) (109) (772) (409) 15Accounts payable and accrued expenses (1,069) (1,012) 102 147 69 (435) (898) (1,300) 16Accrued income taxes payable/receivable (77) (20) (70) (9) (147) (29)Retirement benefits (753) (205) (41) (3) (794) (208)Other 59 89 224 65 (13) (71) 270 83 11, 12, 15Net cash provided by operating activities 1,045 3,031 1,430 1,154 (1,907) (3,241) 568 944Cash Flows from Investing ActivitiesCollections of receivables (excluding receivables related tosales) 14,684 14,175 (336) (472) 14,348 13,703 14Proceeds from maturities and sales of marketable securities 18 58 227 142 245 200Proceeds from sales of equipment on operating leases 1,001 1,011 1,001 1,011Cost of receivables acquired (excluding receivables related tosales) (12,875) (14,238) 131 147 (12,744) (14,091) 14Purchases of marketable securities (20) (226) (327) (206) (347) (432)Purchases of property and equipment (555) (718) (1) (555) (719)Cost of equipment on operating leases acquired (1,363) (1,516) 109 147 (1,254) (1,369) 15Decrease in investment in Financial Services 10 (10) 17Increase in trade and wholesale receivables (1,019) (3,171) 1,019 3,171 14Collections of receivables from unconsolidated affiliates 183 51 234Collateral on derivatives – net 3 24 96 27 96Other (72) (68) (104) (2) 1 (176) (69)Net cash provided by (used for) investing activities (443) (944) 299 (3,710) 923 2,984 779 (1,670)Cash Flows from Financing ActivitiesNet proceeds (payments) in short-term borrowings (original maturities three months or less) 65 189 486 (131) 551 58Change in intercompany receivables/payables 428 31 (428) (31)Proceeds from borrowings issued (original maturities greater than three months) 2,043 34 3,113 10,155 5,156 10,189Payments of borrowings (original maturities greater than three months) (766) (1,012) (4,071) (7,127) (4,837) (8,139)Repurchases of common stock (838) (2,422) (838) (2,422)Capital returned to Equipment Operations (10) 10 17Dividends paid (843) (796) (984) (247) 984 247 (843) (796) 13Other (4) (27) (6) (25) (10) (52)Net cash provided by (used for) financing activities 85 (4,003) (1,890) 2,584 984 257 (821) (1,162)Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 22 (2) (5) 20 (5)Net Increase (Decrease) in Cash, Cash Equivalents, and RestrictedCash 709 (1,916) (163) 23 546 (1,893)Cash, Cash Equivalents, and Restricted Cash at BeginningofPeriod 5,643 5,755 1,990 1,865 7,633 7,620Cash, Cash Equivalents, and Restricted Cash at EndofPeriod $ 6,352 $ 3,839 $ 1,827 $ 1,888 $ 8,179 $ 5,727
11 Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.12 Reclassification of share-based compensation expense.13 Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations operating activities.14 Primarily reclassification of receivables related to the sale of equipment.15 Reclassification of direct lease agreements with retail customers.16 Reclassification of sales incentive accruals on receivables sold to financial services.17 Elimination of change in investment from equipment operations to financial services.
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SOURCE John Deere Company
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