Deere Reports First Quarter Net Income of $1.751 Billion

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Feb 15, 2024, 06:33 ET

Strong quarterly operating margins from equipment operations demonstrate structural improvement near mid-cycle volumes.
Fleet replenishment moderating as agricultural fundamentals normalize.
Full-year net income now forecasted to be $7.50 to $7.75 billion.

MOLINE, Ill., Feb. 15, 2024 /CNW/ -- Deere & Company reported net income of $1.751 billion for the first quarter ended January 28, 2024, or $6.23 per share, compared with net income of $1.959 billion, or $6.55 per share, for the quarter ended January 29, 2023.

Worldwide net sales and revenues decreased 4 percent, to $12.185 billion, in the most recent quarter. Net sales were $10.486 billion for the quarter, compared with $11.402 billion in 2023.

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

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

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

"Deere's first-quarter performance underscores the effectiveness of our Smart Industrial operating model and the dedication of our workforce, enabling improved performance across economic cycles that surpasses historical benchmarks," said John C. May, chairman and chief executive officer. "Moreover, we remain committed to empowering our customers to improve their productivity and sustainability through ongoing investment in the next generation of solutions, as evidenced by our partnership on satellite communications to expand rural connectivity announced this quarter."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2024 is forecasted to be in a range of $7.50 billion to $7.75 billion.

"Moving forward, we expect fleet replenishment to moderate as agricultural fundamentals normalize from record levels in 2022 and 2023," May said. "Regardless of where we are in the cycle, demand is accelerating for products and solutions that empower our customers to do more with less, and we are uniquely positioned to deliver unparalleled value to our customers."


Deere & Company	First Quarter
$ in millions, except per share amounts	2024		2023		% Change
Net sales and revenues	$	12,185	$	12,652	-4 %
Net income	$	1,751	$	1,959	-11 %
Fully diluted EPS	$	6.23	$	6.55

Production & Precision Agriculture	First Quarter
$ in millions	2024		2023		% Change
Net sales	$	4,849	$	5,198	-7 %
Operating profit	$	1,045	$	1,208	-13 %
Operating margin		21.6 %		23.2 %

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 SA&G and R&D expenses, partially offset by price realization.


Small Agriculture & Turf	First Quarter
$ in millions	2024		2023		% Change
Net sales	$	2,425	$	3,001	-19 %
Operating profit	$	326	$	447	-27 %
Operating margin		13.4 %		14.9 %

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 and higher SA&G and R&D expenses. These items were partially offset by price realization and lower production costs.


Construction & Forestry	First Quarter
$ in millions	2024		2023		% Change
Net sales	$	3,212	$	3,203
Operating profit	$	566	$	625	-9 %
Operating margin		17.6 %		19.5 %

Construction and forestry sales were flat for the quarter, with positive price realization offset by lower shipment volumes. Operating profit decreased primarily due to higher production costs, lower shipment volumes, the unfavorable effects of currency translation, and higher SA&G and R&D expenses. These items were partially offset by price realization and a favorable sales mix.


Financial Services	First Quarter
$ in millions	2024		2023		% Change
Net income	$	207	$	185	12 %

Financial services net income for the quarter increased due to income earned on higher average portfolio balances, partially offset by less-favorable financing spreads.


Industry Outlook for Fiscal 2024
Agriculture & Turf
U.S. & Canada:
Large Ag						Down 10 to 15%
Small Ag & Turf						Down 5 to 10%
Europe						Down 10 to 15%
South America (Tractors & Combines)						Down ~ 10%
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


Deere Segment Outlook for Fiscal 2024		Currency	Price
$ in millions	Net Sales	Translation	Realization
Production & Precision Ag	Down ~ 20%	~ Flat	+1.5 %
Small Ag & Turf	Down 10 to 15%	~ 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 forecast 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 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 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 emission), 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 war between Israel and Hamas;
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;
world grain stocks, available farm acres, 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 our 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 FIRST QUARTER 2024 PRESS RELEASE (In millions of dollars) Unaudited

	Three Months Ended
	January 28		January 29		%
	2024		2023		Change
Net sales and revenues:
Production & precision ag net sales	$	4,849	$	5,198	-7
Small ag & turf net sales		2,425		3,001	-19
Construction & forestry net sales		3,212		3,203
Financial services revenues		1,376		1,040	+32
Other revenues		323		210	+54
Total net sales and revenues	$	12,185	$	12,652	-4

Operating profit: *
Production & precision ag	$	1,045	$	1,208	-13
Small ag & turf		326		447	-27
Construction & forestry		566		625	-9
Financial services		257		238	+8
Total operating profit		2,194		2,518	-13
Reconciling items **		26		(22)
Income taxes		(469)		(537)	-13
Net income attributable to Deere & Company	$	1,751	$	1,959	-11


*	Operating profit is income from continuing operations before corporate expenses, certain external interest expense, 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 Months Ended January 28, 2024 and January 29, 2023 (In millions of dollars and shares except per share amounts) Unaudited

	2024		2023
Net Sales and Revenues
Net sales	$	10,486	$	11,402
Finance and interest income		1,360		994
Other income		339		256
Total		12,185		12,652

Costs and Expenses
Cost of sales		7,200		7,934
Research and development expenses		533		495
Selling, administrative and general expenses		1,066		952
Interest expense		802		479
Other operating expenses		369		299
Total		9,970		10,159

Income of Consolidated Group before Income Taxes		2,215		2,493
Provision for income taxes		469		537

Income of Consolidated Group		1,746		1,956
Equity in income of unconsolidated affiliates		2		1

Net Income		1,748		1,957
Less: Net loss attributable to noncontrolling interests		(3)		(2)
Net Income Attributable to Deere & Company	$	1,751	$	1,959

Per Share Data
Basic	$	6.25	$	6.58
Diluted		6.23		6.55
Dividends declared		1.47		1.20
Dividends paid		1.35		1.13

Average Shares Outstanding
Basic		279.9		297.6
Diluted		281.1		299.1


	See Condensed Notes to Interim Consolidated Financial Statements.

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

	January 28		October 29		January 29
	2024		2023		2023
Assets
Cash and cash equivalents	$	5,137	$	7,458	$	3,976
Marketable securities		1,136		946		852
Trade accounts and notes receivable – net		7,795		7,739		7,609
Financing receivables – net		43,708		43,673		36,882
Financing receivables securitized – net		6,400		7,335		5,089
Other receivables		2,017		2,623		1,992
Equipment on operating leases – net		6,751		6,917		6,502
Inventories		8,937		8,160		10,056
Property and equipment – net		6,914		6,879		6,212
Goodwill		3,966		3,900		3,891
Other intangible assets – net		1,112		1,133		1,255
Retirement benefits		3,087		3,007		3,793
Deferred income taxes		1,833		1,814		914
Other assets		2,578		2,503		2,597
Total Assets	$	101,371	$	104,087	$	91,620

Liabilities and Stockholders' Equity

Liabilities
Short-term borrowings	$	17,117	$	17,939	$	14,129
Short-term securitization borrowings		6,116		6,995		4,864
Accounts payable and accrued expenses		13,361		16,130		13,108
Deferred income taxes		550		520		519
Long-term borrowings		39,933		38,477		35,071
Retirement benefits and other liabilities		2,115		2,140		2,493
Total liabilities		79,192		82,201		70,184

Redeemable noncontrolling interest		100		97		100

Stockholders' Equity
Total Deere & Company stockholders' equity		22,075		21,785		21,332
Noncontrolling interests		4		4		4
Total stockholders' equity		22,079		21,789		21,336
Total Liabilities and Stockholders' Equity	$	101,371	$	104,087	$	91,620


	See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS For the Three Months Ended January 28, 2024 and January 29, 2023 (In millions of dollars) Unaudited

	2024		2023
Cash Flows from Operating Activities
Net income	$	1,748	$	1,957
Adjustments to reconcile net income to net cash used for operating activities:
Provision (credit) for credit losses		31		(130)
Provision for depreciation and amortization		520		494
Share-based compensation expense		46		23
Provision (credit) for deferred income taxes		27		(56)
Changes in assets and liabilities:
Receivables related to sales		(277)		(1,015)
Inventories		(723)		(1,279)
Accounts payable and accrued expenses		(2,327)		(1,577)
Accrued income taxes payable/receivable		183		199
Retirement benefits		(129)		(48)
Other		(7)		186
Net cash used for operating activities		(908)		(1,246)

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)		7,752		7,198
Proceeds from sales of equipment on operating leases		506		497
Cost of receivables acquired (excluding receivables related to sales)		(6,447)		(6,322)
Purchases of property and equipment		(362)		(315)
Cost of equipment on operating leases acquired		(454)		(497)
Collateral on derivatives – net		310		345
Other		(88)		(146)
Net cash provided by investing activities		1,217		760

Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)		(2,951)		697
Proceeds from borrowings issued (original maturities greater than three months)		5,287		2,505
Payments of borrowings (original maturities greater than three months)		(3,237)		(1,925)
Repurchases of common stock		(1,328)		(1,257)
Dividends paid		(386)		(341)
Other		(30)		(18)
Net cash used for financing activities		(2,645)		(339)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		16		62

Net Decrease in Cash, Cash Equivalents, and Restricted Cash		(2,320)		(763)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		7,620		4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	5,300	$	4,178


	See Condensed Notes to Interim Consolidated Financial Statements.


DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial Statements
(In millions of dollars) Unaudited

(1)	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 2 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 (2) SUPPLEMENTAL CONSOLIDATING DATA STATEMENTS OF INCOME For the Three Months Ended January 28, 2024 and January 29, 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	$	10,486	$	11,402									$	10,486	$	11,402
Finance and interest income		157		114	$	1,433	$	1,067	$	(230)	$	(187)		1,360		994	¹
Other income		289		234		119		177		(69)		(155)		339		256	^{2, 3}
Total		10,932		11,750		1,552		1,244		(299)		(342)		12,185		12,652

Costs and Expenses
Cost of sales		7,207		7,940						(7)		(6)		7,200		7,934	⁴
Research and development expenses		533		495										533		495
Selling, administrative and general expenses		876		783		192		172		(2)		(3)		1,066		952	⁴
Interest expense		108		101		762		442		(68)		(64)		802		479	¹
Interest compensation to Financial Services		162		123						(162)		(123)					¹
Other operating expenses		90		53		339		392		(60)		(146)		369		299	^{3, 5}
Total		8,976		9,495		1,293		1,006		(299)		(342)		9,970		10,159

Income before Income Taxes		1,956		2,255		259		238						2,215		2,493
Provision for income taxes		416		483		53		54						469		537

Income after Income Taxes		1,540		1,772		206		184						1,746		1,956
Equity in income of unconsolidated affiliates		1				1		1						2		1

Net Income		1,541		1,772		207		185						1,748		1,957
Less: Net loss attributable to noncontrolling interests		(3)		(2)										(3)		(2)
Net Income Attributable to Deere & Company	$	1,544	$	1,774	$	207	$	185					$	1,751	$	1,959


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
	Jan 28		Oct 29		Jan 29		Jan 28		Oct 29		Jan 29		Jan 28		Oct 29		Jan 29		Jan 28		Oct 29		Jan 29
	2024		2023		2023		2024		2023		2023		2024		2023		2023		2024		2023		2023
Assets
Cash and cash equivalents	$	3,467	$	5,720	$	2,665	$	1,670	$	1,738	$	1,311							$	5,137	$	7,458	$	3,976
Marketable securities		147		104		18		989		842		834								1,136		946		852
Receivables from Financial Services		4,296		4,516		5,348							$	(4,296)	$	(4,516)	$	(5,348)							⁶
Trade accounts and notes receivable – net		1,093		1,320		1,342		9,167		8,687		7,827		(2,465)		(2,268)		(1,560)		7,795		7,739		7,609	⁷
Financing receivables – net		72		64		51		43,636		43,609		36,831								43,708		43,673		36,882
Financing receivables securitized – net								6,400		7,335		5,089								6,400		7,335		5,089
Other receivables		1,515		1,813		1,583		559		869		489		(57)		(59)		(80)		2,017		2,623		1,992	⁷
Equipment on operating leases – net								6,751		6,917		6,502								6,751		6,917		6,502
Inventories		8,937		8,160		10,056														8,937		8,160		10,056
Property and equipment – net		6,879		6,843		6,178		35		36		34								6,914		6,879		6,212
Goodwill		3,966		3,900		3,891														3,966		3,900		3,891
Other intangible assets – net		1,112		1,133		1,255														1,112		1,133		1,255
Retirement benefits		3,013		2,936		3,728		75		72		67		(1)		(1)		(2)		3,087		3,007		3,793	⁸
Deferred income taxes		2,133		2,133		1,015		72		68		53		(372)		(387)		(154)		1,833		1,814		914	⁹
Other assets		2,058		1,948		1,936		546		559		684		(26)		(4)		(23)		2,578		2,503		2,597
Total Assets	$	38,688	$	40,590	$	39,066	$	69,900	$	70,732	$	59,721	$	(7,217)	$	(7,235)	$	(7,167)	$	101,371	$	104,087	$	91,620

Liabilities and Stockholders' Equity

Liabilities
Short-term borrowings	$	1,203	$	1,230	$	969	$	15,914	$	16,709	$	13,160							$	17,117	$	17,939	$	14,129
Short-term securitization borrowings								6,116		6,995		4,864								6,116		6,995		4,864
Payables to Equipment Operations								4,296		4,516		5,348	$	(4,296)	$	(4,516)	$	(5,348)							⁶
Accounts payable and accrued expenses		12,677		14,862		11,819		3,232		3,599		2,952		(2,548)		(2,331)		(1,663)		13,361		16,130		13,108	⁷
Deferred income taxes		478		452		404		444		455		269		(372)		(387)		(154)		550		520		519	⁹
Long-term borrowings		7,270		7,210		8,155		32,663		31,267		26,916								39,933		38,477		35,071
Retirement benefits and other liabilities		2,006		2,032		2,384		110		109		111		(1)		(1)		(2)		2,115		2,140		2,493	⁸
Total liabilities		23,634		25,786		23,731		62,775		63,650		53,620		(7,217)		(7,235)		(7,167)		79,192		82,201		70,184

Redeemable noncontrolling interest		100		97		100														100		97		100

Stockholders' Equity
Total Deere & Company stockholders' equity		22,075		21,785		21,332		7,125		7,082		6,101		(7,125)		(7,082)		(6,101)		22,075		21,785		21,332	¹⁰
Noncontrolling interests		4		4		4														4		4		4
Financial Services' equity		(7,125)		(7,082)		(6,101)								7,125		7,082		6,101							¹⁰
Adjusted total stockholders' equity		14,954		14,707		15,235		7,125		7,082		6,101								22,079		21,789		21,336
Total Liabilities and Stockholders' Equity	$	38,688	$	40,590	$	39,066	$	69,900	$	70,732	$	59,721	$	(7,217)	$	(7,235)	$	(7,167)	$	101,371	$	104,087	$	91,620


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

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF CASH FLOWS For the Three Months Ended January 28, 2024 and January 29, 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	$	1,541	$	1,772	$	207	$	185					$	1,748	$	1,957
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses		(2)		1		33		(131)						31		(130)
Provision for depreciation and amortization		302		279		254		252	$	(36)	$	(37)		520		494	¹¹
Share-based compensation expense										46		23		46		23	¹²
Distributed earnings of Financial Services		233		3						(233)		(3)					¹³
Provision (credit) for deferred income taxes		48		(39)		(21)		(17)						27		(56)
Changes in assets and liabilities:
Receivables related to sales		209		(23)						(486)		(992)		(277)		(1,015)	^{14, 16}
Inventories		(687)		(1,254)						(36)		(25)		(723)		(1,279)	¹⁵
Accounts payable and accrued expenses		(2,155)		(1,458)		25		145		(197)		(264)		(2,327)		(1,577)	¹⁶
Accrued income taxes payable/receivable		165		192		18		7						183		199
Retirement benefits		(127)		(49)		(2)		1						(129)		(48)
Other		(46)		17		61		163		(22)		6		(7)		186	^{11, 12, 15}
Net cash provided by (used for) operating activities		(519)		(559)		575		605		(964)		(1,292)		(908)		(1,246)

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)						8,007		7,495		(255)		(297)		7,752		7,198	¹⁴
Proceeds from sales of equipment on operating leases						506		497						506		497
Cost of receivables acquired (excluding receivables related to sales)						(6,513)		(6,375)		66		53		(6,447)		(6,322)	¹⁴
Purchases of property and equipment		(362)		(315)										(362)		(315)
Cost of equipment on operating leases acquired						(503)		(531)		49		34		(454)		(497)	¹⁵
Decrease in investment in Financial Services		10								(10)							¹⁷
Increase in trade and wholesale receivables						(871)		(1,499)		871		1,499					¹⁴
Collateral on derivatives – net						310		345						310		345
Other		10		(9)		(98)		(137)						(88)		(146)
Net cash provided by (used for) investing activities		(342)		(324)		838		(205)		721		1,289		1,217		760

Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)		78		(136)		(3,029)		833						(2,951)		697
Change in intercompany receivables/payables		288		1,469		(288)		(1,469)
Proceeds from borrowings issued (original maturities greater than three months)		11		1		5,276		2,504						5,287		2,505
Payments of borrowings (original maturities greater than three months)		(40)				(3,197)		(1,925)						(3,237)		(1,925)
Repurchases of common stock		(1,328)		(1,257)										(1,328)		(1,257)
Capital investment from Equipment Operations						(10)				10							¹⁷
Dividends paid		(386)		(341)		(233)		(3)		233		3		(386)		(341)	¹³
Other		(22)		(6)		(8)		(12)						(30)		(18)
Net cash used for financing activities		(1,399)		(270)		(1,489)		(72)		243		3		(2,645)		(339)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		11		48		5		14						16		62

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		(2,249)		(1,105)		(71)		342						(2,320)		(763)
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	$	3,506	$	2,676	$	1,794	$	1,502					$	5,300	$	4,178


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.

SOURCE John Deere Company

Jen Hartmann, Director, Public Relations, [email protected]

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