Deere Reports Third Quarter Net Income of $1.289 Billion

Cision Canada

7 days ago

Disciplined execution yields solid results in the face of a challenging environment.
Customers remain cautious amid ongoing uncertainty.
Full-year net income guidance narrowed.
MOLINE, Ill., Aug. 14, 2025 /CNW/ -- Deere & Company (NYSE: DE) reported net income of $1.289 billion for the third quarter ended July 27, 2025, or $4.75 per share, compared with net income of $1.734 billion, or $6.29 per share, for the quarter ended July 28, 2024. For the first nine months of the year, net income attributable to Deere & Company was $3.962 billion, or $14.57 per share, compared with $5.855 billion, or $21.04 per share, for the same period last year.
Worldwide net sales and revenues decreased 9 percent, to $12.018 billion, for the third quarter of 2025 and decreased 18 percent, to $33.290 billion, for nine months. Net sales were $10.357 billion for the quarter and $28.338 billion for nine months, compared with $11.387 billion and $35.484 billion last year, respectively.
"By proactively managing inventory, we've matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs," said John May, chairman and CEO of John Deere. "By continuing to address the high levels of used equipment in the industry, we're building a healthier market for everyone—our customers, our dealers, and our business—even in these challenging times."
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75 billion to $5.25 billion.
"We remain committed to delivering solutions that address our customers' current needs while also laying the groundwork for future growth. For example, the increasing utilization and proven in-field effectiveness of advanced technologies—such as See & Spray and Harvest Settings Automation—are empowering customers to improve their productivity and better navigate industry challenges," May noted. "The positive outcomes we're enabling reinforce our confidence in Deere's future despite near-term uncertainty."
All periods presented were affected by special items. See Note 2 of the financial statements for further details. The cost of additional tariffs for each segment is included in the "Production costs" and "Other" categories below.
Production & Precision Agriculture
Third Quarter
$ in millions
2025
2024
% Change
Net sales
$
4,273
$
5,099
-16 %
Operating profit
$
580
$
1,162
-50 %
Operating margin
13.6 %
22.8 %
Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes and unfavorable price realization. Operating profit decreased primarily due to lower shipment volumes / sales mix.
Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by favorable currency translation and price realization. Operating profit decreased due to higher tariffs, partially offset by reductions in warranty expenses and lower production costs. The decreased production costs were primarily the result of lower material costs.
Construction and forestry sales decreased for the quarter primarily due to unfavorable price realization. Operating profit decreased primarily due to unfavorable price realization and higher production costs caused by higher tariffs, partially offset by favorable product mix.
Financial services net income for the quarter was higher due to a lower provision for credit losses and prior year special items.
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, and retaliatory trade regulations;
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 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 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 new and used inventory, distribute 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, tax, 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 because 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.
*
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 & COMPANY
STATEMENTS OF CONSOLIDATED INCOME
For the Three and Nine Months Ended July 27, 2025 and July 28, 2024
(In millions of dollars and shares except per share amounts) Unaudited
Three Months Ended
Nine Months Ended
2025
2024
2025
2024
Net Sales and Revenues
Net sales
$
10,357
$
11,387
$
28,338
$
35,484
Finance and interest income
1,426
1,461
4,233
4,207
Other income
235
304
719
881
Total
12,018
13,152
33,290
40,572
Costs and Expenses
Cost of sales
7,570
7,848
20,215
24,205
Research and development expenses
556
567
1,631
1,664
Selling, administrative and general expenses
1,217
1,278
3,387
3,608
Interest expense
794
840
2,408
2,478
Other operating expenses
281
264
817
930
Total
10,418
10,797
28,458
32,885
Income of Consolidated Group before Income Taxes
1,600
2,355
4,832
7,687
Provision for income taxes
339
625
905
1,845
Income of Consolidated Group
1,261
1,730
3,927
5,842
Equity in income of unconsolidated affiliates
10
1
11
4
Net Income
1,271
1,731
3,938
5,846
Less: Net loss attributable to noncontrolling interests
(18)
(3)
(24)
(9)
Net Income Attributable to Deere & Company
$
1,289
$
1,734
$
3,962
$
5,855
Per Share Data
Basic
$
4.76
$
6.32
$
14.61
$
21.13
Diluted
4.75
6.29
14.57
21.04
Dividends declared
1.62
1.47
4.86
4.41
Dividends paid
1.62
1.47
4.71
4.29
Average Shares Outstanding
Basic
270.7
274.5
271.1
277.1
Diluted
271.4
275.6
271.9
278.2
See Condensed Notes to Interim Consolidated Financial Statements.
DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
July 27
October 27
July 28
2025
2024
2024
Assets
Cash and cash equivalents
$
8,580
$
7,324
$
7,004
Marketable securities
1,407
1,154
1,140
Trade accounts and notes receivable – net
6,103
5,326
7,469
Financing receivables – net
43,930
44,309
43,896
Financing receivables securitized – net
7,948
8,723
8,274
Other receivables
2,826
2,545
2,270
Equipment on operating leases – net
7,512
7,451
7,118
Inventories
7,713
7,093
7,696
Property and equipment – net
7,713
7,580
7,092
Goodwill
4,209
3,959
3,960
Other intangible assets – net
926
999
1,030
Retirement benefits
3,182
2,921
3,126
Deferred income taxes
2,209
2,086
1,898
Other assets
3,559
2,906
2,903
Assets held for sale
2,944
2,965
Total Assets
$
107,817
$
107,320
$
107,841
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings
$
14,607
$
13,533
$
15,294
Short-term securitization borrowings
7,610
8,431
7,869
Accounts payable and accrued expenses
13,582
14,543
14,397
Deferred income taxes
489
478
481
Long-term borrowings
44,429
43,229
42,692
Retirement benefits and other liabilities
1,836
2,354
2,156
Liabilities held for sale
1,827
1,803
Total liabilities
82,553
84,395
84,692
Redeemable noncontrolling interest
84
82
84
Stockholders' Equity
Total Deere & Company stockholders' equity
25,175
22,836
23,062
Noncontrolling interests
5
7
3
Total stockholders' equity
25,180
22,843
23,065
Total Liabilities and Stockholders' Equity
$
107,817
$
107,320
$
107,841
See Condensed Notes to Interim Consolidated Financial Statements.
See Condensed Notes to Interim Consolidated Financial Statements.
DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial Statements
(In millions of dollars) Unaudited
(1) Acquisitions
In 2025, the company acquired businesses to advance the capabilities of the company's existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions that improve profitability, efficiency, and sustainability. The combined cost of these acquisitions was $89 million, net of cash acquired. The businesses were assigned to the production and precision agriculture and construction and forestry segments. Most of the purchase price for these acquisitions was allocated to goodwill and intangible assets.
(2) Special Items
Impairment
In the third quarter of 2025, the company recorded a non-cash charge of $61 million pretax ($49 million after-tax), primarily related to the trade name and customer relationship assets of external overseas battery operations. Of this amount, $53 million was recorded in "Selling, administrative and general expenses" and $8 million in "Cost of sales." This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets.
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, resulting in a net loss of $15 million pretax and after-tax due to the establishment of a $53 million valuation allowance on the assets held for sale and a $38 million reversal of allowance for credit losses. In the first quarter of 2025, a gain of $32 million pretax and after-tax was recorded in "Selling, administrative and general expenses" related to a decrease in valuation allowance. This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. 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.
Employee-Separation Programs
In the third quarter of 2024, the company implemented employee-separation programs for the company's salaried workforce in several geographic areas, including the United States, Europe, Asia, and Latin America. The programs' main purpose was to help meet the company's strategic priorities while reducing overlap and redundancy in roles and responsibilities. The programs were largely involuntary in nature with the expense recorded when management committed to a plan, the plan was communicated to the employees, and the employees were not required to provide service beyond the legal notification period. For the limited voluntary employee-separation programs, the expense was recorded in the period in which the employee irrevocably accepted a separation offer.
The expenses for the three months and nine months ended July 28, 2024 were recorded in millions of dollars as follows:
*
Relates primarily to corporate expenses.
Summary of 2025 and 2024 Special Items
The following table summarizes the operating profit impact of the special items recorded in millions of dollars for the three months and nine months ended July 27, 2025 and July 28, 2024.
(3)
The consolidated financial statements represent the consolidation of all the company's subsidiaries.
The supplemental consolidating data in Note 4 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
(4) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME
For the Three Months Ended July 27, 2025 and July 28, 2024
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES
ELIMINATIONS
CONSOLIDATED
2025
2024
2025
2024
2025
2024
2025
2024
Net Sales and Revenues
Net sales
$
10,357
$
11,387
$
10,357
$
11,387
Finance and interest income
133
155
$
1,433
$
1,537
$
(140)
$
(231)
1,426
1,461
1
Other income
190
246
111
130
(66)
(72)
235
304
2, 3, 4
Total
10,680
11,788
1,544
1,667
(206)
(303)
12,018
13,152
Costs and Expenses
Cost of sales
7,578
7,855
(8)
(7)
7,570
7,848
4
Research and development expenses
556
567
556
567
Selling, administrative and general expenses
999
962
220
318
(2)
(2)
1,217
1,278
4
Interest expense
102
91
720
812
(28)
(63)
794
840
1
Interest compensation to Financial Services
112
168
(112)
(168)
1
Other operating expenses
(8)
(16)
345
343
(56)
(63)
281
264
3, 4, 5
Total
9,339
9,627
1,285
1,473
(206)
(303)
10,418
10,797
Income before Income Taxes
1,341
2,161
259
194
1,600
2,355
Provision for income taxes
274
583
65
42
339
625
Income after Income Taxes
1,067
1,578
194
152
1,261
1,730
Equity in income (loss) of unconsolidated affiliates
(1)
11
1
10
1
Net Income
1,066
1,578
205
153
1,271
1,731
Less: Net loss attributable to
noncontrolling interests
(18)
(3)
(18)
(3)
Net Income Attributable to Deere & Company
$
1,084
$
1,581
$
205
$
153
$
1,289
$
1,734
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)
STATEMENTS OF INCOME
For the Nine Months Ended July 27, 2025 and July 28, 2024
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES
ELIMINATIONS
CONSOLIDATED
2025
2024
2025
2024
2025
2024
2025
2024
Net Sales and Revenues
Net sales
$
28,338
$
35,484
$
28,338
$
35,484
Finance and interest income
351
441
$
4,268
$
4,466
$
(386)
$
(700)
4,233
4,207
1
Other income
580
732
350
341
(211)
(192)
719
881
2, 3, 4
Total
29,269
36,657
4,618
4,807
(597)
(892)
33,290
40,572
Costs and Expenses
Cost of sales
20,239
24,226
(24)
(21)
20,215
24,205
4
Research and development expenses
1,631
1,664
1,631
1,664
Selling, administrative and general expenses
2,761
2,844
632
771
(6)
(7)
3,387
3,608
4
Interest expense
282
314
2,206
2,354
(80)
(190)
2,408
2,478
1
Interest compensation to Financial Services
306
510
(306)
(510)
1
Other operating expenses
(47)
76
1,045
1,018
(181)
(164)
817
930
3, 4, 5
Total
25,172
29,634
3,883
4,143
(597)
(892)
28,458
32,885
Income before Income Taxes
4,097
7,023
735
664
4,832
7,687
Provision for income taxes
752
1,700
153
145
905
1,845
Income after Income Taxes
3,345
5,323
582
519
3,927
5,842
Equity in income (loss) of unconsolidated affiliates
(4)
15
4
11
4
Net Income
3,341
5,323
597
523
3,938
5,846
Less: Net loss attributable to
noncontrolling interests
(24)
(9)
(24)
(9)
Net Income Attributable to Deere & Company
$
3,365
$
5,332
$
597
$
523
$
3,962
$
5,855
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
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES
ELIMINATIONS
CONSOLIDATED
July 27
Oct 27
July 28
July 27
Oct 27
July 28
July 27
Oct 27
July 28
July 27
Oct 27
July 28
2025
2024
2024
2025
2024
2024
2025
2024
2024
2025
2024
2024
Assets
Cash and cash equivalents
$
6,641
$
5,615
$
5,385
$
1,939
$
1,709
$
1,619
$
8,580
$
7,324
$
7,004
Marketable securities
240
125
155
1,167
1,029
985
1,407
1,154
1,140
Receivables from Financial
Services
3,649
3,043
3,951
$
(3,649)
$
(3,043)
$
(3,951)
6
Trade accounts and notes
receivable – net
1,335
1,257
1,150
7,064
6,225
8,890
(2,296)
(2,156)
(2,571)
6,103
5,326
7,469
7
Financing receivables – net
84
78
82
43,846
44,231
43,814
43,930
44,309
43,896
Financing receivables
securitized – net
1
2
2
7,947
8,721
8,272
7,948
8,723
8,274
Other receivables
2,013
2,193
1,821
867
427
494
(54)
(75)
(45)
2,826
2,545
2,270
7
Equipment on operating
leases – net
7,512
7,451
7,118
7,512
7,451
7,118
Inventories
7,713
7,093
7,696
7,713
7,093
7,696
Property and equipment – net
7,680
7,546
7,058
33
34
34
7,713
7,580
7,092
Goodwill
4,209
3,959
3,960
4,209
3,959
3,960
Other intangible assets – net
926
999
1,030
926
999
1,030
Retirement benefits
3,092
2,839
3,047
92
83
80
(2)
(1)
(1)
3,182
2,921
3,126
8
Deferred income taxes
2,471
2,262
2,192
44
43
35
(306)
(219)
(329)
2,209
2,086
1,898
9
Other assets
2,357
2,194
2,236
1,211
715
675
(9)
(3)
(8)
3,559
2,906
2,903
Assets held for sale
2,944
2,965
2,944
2,965
Total Assets
$
42,411
$
39,205
$
39,765
$
71,722
$
73,612
$
74,981
$
(6,316)
$
(5,497)
$
(6,905)
$
107,817
$
107,320
$
107,841
Liabilities and
Stockholders' Equity
Liabilities
Short-term borrowings
$
461
$
911
$
983
$
14,146
$
12,622
$
14,311
$
14,607
$
13,533
$
15,294
Short-term securitization
borrowings
2
1
7,610
8,429
7,868
7,610
8,431
7,869
Payables to Equipment
Operations
3,649
3,043
3,951
$
(3,649)
$
(3,043)
$
(3,951)
6
Accounts payable and
accrued expenses
12,795
13,534
13,880
3,146
3,243
3,141
(2,359)
(2,234)
(2,624)
13,582
14,543
14,397
7
Deferred income taxes
393
434
420
402
263
390
(306)
(219)
(329)
489
478
481
9
Long-term borrowings
8,789
6,603
6,592
35,640
36,626
36,100
44,429
43,229
42,692
Retirement benefits and
other liabilities
1,767
2,250
2,048
71
105
109
(2)
(1)
(1)
1,836
2,354
2,156
8
Liabilities held for sale
1,827
1,803
1,827
1,803
Total liabilities
24,205
23,734
23,924
64,664
66,158
67,673
(6,316)
(5,497)
(6,905)
82,553
84,395
84,692
Redeemable noncontrolling
interest
84
82
84
84
82
84
Stockholders' Equity
Total Deere & Company stockholders' equity
25,175
22,836
23,062
7,058
7,454
7,308
(7,058)
(7,454)
(7,308)
25,175
22,836
23,062
10
Noncontrolling interests
5
7
3
5
7
3
Financial Services' equity
(7,058)
(7,454)
(7,308)
7,058
7,454
7,308
10
Adjusted total stockholders'
equity
18,122
15,389
15,757
7,058
7,454
7,308
25,180
22,843
23,065
Total Liabilities and Stockholders' Equity
$
42,411
$
39,205
$
39,765
$
71,722
$
73,612
$
74,981
$
(6,316)
$
(5,497)
$
(6,905)
$
107,817
$
107,320
$
107,841
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 Nine Months Ended July 27, 2025 and July 28, 2024
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES
ELIMINATIONS
CONSOLIDATED
2025
2024
2025
2024
2025
2024
2025
2024
Cash Flows from Operating Activities
Net income
$
3,341
$
5,323
$
597
$
523
$
3,938
$
5,846
Adjustments to reconcile net income to net cash provided by
operating activities:
Provision for credit losses
18
10
240
212
258
222
Provision for depreciation and amortization
965
932
804
773
$
(101)
$
(107)
1,668
1,598
11
Impairments and other adjustments
61
(32)
53
29
53
Share-based compensation expense
104
159
104
159
12
Distributed earnings of Financial Services
1,066
250
(1,066)
(250)
13
Provision (credit) for deferred income taxes
(242)
(49)
140
(76)
(102)
(125)
Changes in assets and liabilities:
Receivables related to sales
(66)
106
(428)
(2,552)
(494)
(2,446)
14, 16
Inventories
(423)
391
(103)
(157)
(526)
234
15
Accounts payable and accrued expenses
(646)
(924)
69
212
(140)
(303)
(717)
(1,015)
16
Accrued income taxes payable/receivable
(89)
13
(58)
18
(147)
31
Retirement benefits
(770)
(241)
(43)
(5)
(813)
(246)
Other
123
(109)
182
44
(39)
(107)
266
(172)
11, 12, 15
Net cash provided by operating activities
3,338
5,702
1,899
1,754
(1,773)
(3,317)
3,464
4,139
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)
20,178
19,826
(466)
(683)
19,712
19,143
14
Proceeds from maturities and sales of marketable securities
27
56
332
277
359
333
Proceeds from sales of equipment on operating leases
1,408
1,451
1,408
1,451
Cost of receivables acquired (excluding receivables related
to sales)
(19,189)
(21,395)
227
282
(18,962)
(21,113)
14
Acquisitions of businesses, net of cash acquired
(89)
(89)
Purchases of marketable securities
(133)
(220)
(465)
(352)
(598)
(572)
Purchases of property and equipment
(851)
(1,041)
(1)
(2)
(852)
(1,043)
Cost of equipment on operating leases acquired
(2,148)
(2,377)
139
212
(2,009)
(2,165)
15
Decrease in investment in Financial Services
11
(11)
17
Increase in trade and wholesale receivables
(807)
(3,255)
807
3,255
14
Collections of receivables from unconsolidated affiliates
189
145
334
Collateral on derivatives – net
4
123
390
127
390
Other
(75)
(88)
(156)
(8)
1
(231)
(95)
Net cash used for investing activities
(928)
(1,282)
(580)
(5,445)
707
3,056
(801)
(3,671)
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original
maturities three months or less)
294
81
(2,354)
(1,073)
(2,060)
(992)
Change in intercompany receivables/payables
(660)
558
660
(558)
Proceeds from borrowings issued (original maturities greater
than three months)
2,188
115
8,519
15,397
10,707
15,512
Payments of borrowings (original maturities greater than three
months)
(863)
(1,061)
(6,880)
(9,731)
(7,743)
(10,792)
Repurchases of common stock
(1,136)
(3,227)
(1,136)
(3,227)
Capital returned to Equipment Operations
(11)
11
17
Dividends paid
(1,282)
(1,202)
(1,066)
(250)
1,066
250
(1,282)
(1,202)
13
Other
(25)
(37)
(18)
(51)
(43)
(88)
Net cash provided by (used for) financing activities
(1,484)
(4,773)
(1,139)
3,723
1,066
261
(1,557)
(789)
Effect of Exchange Rate Changes on Cash, Cash
Equivalents, and Restricted Cash
96
12
12
(18)
108
(6)
Net Increase (Decrease) in Cash, Cash Equivalents, and
Restricted Cash
1,022
(341)
192
14
1,214
(327)
Cash, Cash Equivalents, and Restricted Cash at
Beginning of Period
5,643
5,755
1,990
1,865
7,633
7,620
Cash, Cash Equivalents, and Restricted Cash at
End of Period
$
6,665
$
5,414
$
2,182
$
1,879
$
8,847
$
7,293
SOURCE John Deere Company