# EDGAR Filing Document

**Accession Number:** 0000315189
**File Stem:** 0001558370-23-001877
**Filing Date:** 2023-2
**Character Count:** 217244
**Document Hash:** d6561c534182f0d630a37919b8033b3c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-23-001877.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001558370-23-001877

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 106

**CONFORMED PERIOD OF REPORT**: 20230129

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DEERE & CO
- **CENTRAL INDEX KEY:** 0000315189
- **STANDARD INDUSTRIAL CLASSIFICATION:** FARM MACHINERY & EQUIPMENT [3523]
- **IRS NUMBER:** 362382580
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1029

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-04121
- **FILM NUMBER:** 23659245

**BUSINESS ADDRESS:**
- **STREET 1:** ONE JOHN DEERE PLACE
- **CITY:** MOLINE
- **STATE:** IL
- **ZIP:** 61265-8098
- **BUSINESS PHONE:** (309) 765-8000

**MAIL ADDRESS:**
- **STREET 1:** ONE JOHN DEERE PLACE
- **CITY:** MOLINE
- **STATE:** IL
- **ZIP:** 61265-8098

?xml version='1.0' encoding='UTF-8'?

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

WASHINGTON, D.C. 20549

**FORM 10-Q**

**(Mark One)**

**☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended January 29, 2023**

or

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the transition period from ____ to ____** 

Commission file no: 1-4121

**DEERE & COMPANY**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Delaware**(State of incorporation) | &nbsp;&nbsp;**36-2382580**(IRS employer identification no.) |

---

**One John Deere Place**

**Moline, Illinois 61265**

(Address of principal executive offices)

Telephone Number: **(309) 765-8000**

Securities Registered Pursuant to Section 12(b) of the Act:

---

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

---

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐  | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

At January 29, 2023, 296,322,273 shares of common stock, $1 par value, of the registrant were outstanding.

------

PART I. FINANCIAL INFORMATION

---

| | | |
|:---|:---|:---|
| ITEM 1. FINANCIAL STATEMENTS |  |  |
| DEERE & COMPANY |  |  |
| STATEMENTS OF CONSOLIDATED INCOME |  |  |
| For the Three Months Ended January 29, 2023 and January 30, 2022 |  |  |
| (In millions of dollars and shares except per share amounts) Unaudited |  |  |
|  | 2023 | 2022 |
| **Net Sales and Revenues** |  |  |
| Net sales  | $11402  | $8531  |
| Finance and interest income | 994  | 800  |
| Other income | 256  | 238  |
| &nbsp;&nbsp;Total | 12652  | 9569  |
| **Costs and Expenses** |  |  |
| Cost of sales | 7934  | 6695  |
| Research and development expenses | 495  | 402  |
| Selling, administrative and general expenses | 952  | 781  |
| Interest expense | 479  | 229  |
| Other operating expenses | 299  | 311  |
| &nbsp;&nbsp;Total | 10159  | 8418  |
| **Income of Consolidated Group before Income Taxes** | 2493  | 1151  |
| Provision for income taxes | 537  | 250  |
| **Income of Consolidated Group** | 1956  | 901  |
| Equity in income of unconsolidated affiliates | 1  | 3  |
| **Net Income** | 1957  | 904  |
| &nbsp;&nbsp;Less: Net income (loss) attributable to noncontrolling interests | (2) | 1  |
| **Net Income Attributable to Deere & Company** | $1959  | $903  |
| **Per Share Data** |  |  |
| Basic | $6.58  | $2.94  |
| Diluted | 6.55  | 2.92  |
| Dividends declared | 1.20  | 1.05  |
| Dividends paid | 1.13  | 1.05  |
| **Average Shares Outstanding** |  |  |
| Basic | 297.6  | 307.4  |
| Diluted | 299.1  | 309.4  |

---

See Condensed Notes to Interim Consolidated Financial Statements.

---

| | | |
|:---|:---|:---|
| DEERE & COMPANY |  |  |
| STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME |  |  |
| For the Three Months Ended January 29, 2023 and January 30, 2022 |  |  |
| (In millions of dollars) Unaudited |  |  |
|  | 2023 | 2022 |
| **Net Income** | $1957  | $904  |
| **Other Comprehensive Income (Loss), Net of Income Taxes** |  |  |
| &nbsp;&nbsp;Retirement benefits adjustment | (11) | (345) |
| &nbsp;&nbsp;Cumulative translation adjustment | 681  | (267) |
| &nbsp;&nbsp;Unrealized gain (loss) on derivatives  | (13) | 14  |
| &nbsp;&nbsp;Unrealized gain (loss) on debt securities | 27  | (15) |
| **Other Comprehensive Income (Loss), Net of Income Taxes**  | 684  | (613) |
| **Comprehensive Income of Consolidated Group** | 2641  | 291  |
| &nbsp;&nbsp;Less: Comprehensive income attributable to noncontrolling interests | 6  | 1  |
| **Comprehensive Income Attributable to Deere & Company** | $2635  | $290  |

---

See Condensed Notes to Interim Consolidated Financial Statements.

---

| | | | |
|:---|:---|:---|:---|
| DEERE & COMPANY |  |  |  |
| CONDENSED CONSOLIDATED BALANCE SHEETS |  |  |  |
| (In millions of dollars) Unaudited |  |  |  |
|  | January 29  | October 30 | January 30  |
|  | 2023 | 2022 | 2022 |
| **Assets** |  |  |  |
| Cash and cash equivalents | $3976  | $4774  | $4472  |
| Marketable securities | 852  | 734  | 735  |
| Trade accounts and notes receivable – net | 7609  | 6410  | 4855  |
| Financing receivables – net | 36882  | 36634  | 33191  |
| Financing receivables securitized – net | 5089  | 5936  | 3516  |
| Other receivables | 1992  | 2492  | 1936  |
| Equipment on operating leases – net | 6502  | 6623  | 6624  |
| Inventories | 10056  | 8495  | 7935  |
| Property and equipment – net | 6212  | 6056  | 5665  |
| Goodwill | 3891  | 3687  | 3192  |
| Other intangible assets – net | 1255  | 1218  | 1209  |
| Retirement benefits | 3793  | 3730  | 3158  |
| Deferred income taxes | 914  | 824  | 923  |
| Other assets | 2597  | 2417  | 2203  |
| **Total Assets** | $91620  | $90030  | $79614  |
| **Liabilities and Stockholders' Equity** |  |  |  |
| **Liabilities** |  |  |  |
| Short-term borrowings | $14129  | $12592  | $10990  |
| Short-term securitization borrowings | 4864  | 5711  | 3482  |
| Accounts payable and accrued expenses | 13108  | 14822  | 10651  |
| Deferred income taxes | 519  | 495  | 556  |
| Long-term borrowings | 35071  | 33596  | 32838  |
| Retirement benefits and other liabilities | 2493  | 2457  | 3289  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 70184  | 69673  | 61806  |
| Commitments and contingencies (Note 16) |  |  |  |
| Redeemable noncontrolling interest | 100  | 92  |  |
| **Stockholders' Equity** |  |  |  |
| Common stock, $1 par value (issued shares at <br>January 29, 2023 – 536,431,204) | 5191  | 5165  | 5066  |
| Common stock in treasury | (25333) | (24094) | (21139) |
| Retained earnings | 43846  | 42247  | 37029  |
| Accumulated other comprehensive income (loss) | (2372) | (3056) | (3152) |
| Total Deere & Company stockholders' equity | 21332  | 20262  | 17804  |
| Noncontrolling interests | 4  | 3  | 4  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 21336  | 20265  | 17808  |
| **Total Liabilities and Stockholders' Equity** | $91620  | $90030  | $79614  |

---

See Condensed Notes to Interim Consolidated Financial Statements.

---

| | | |
|:---|:---|:---|
| DEERE & COMPANY |  |  |
| STATEMENTS OF CONSOLIDATED CASH FLOWS |  |  |
| For the Three Months Ended January 29, 2023 and January 30, 2022 |  |  |
| (In millions of dollars) Unaudited |  |  |
|  | 2023 | 2022 |
| **Cash Flows from Operating Activities** |  |  |
| Net income | $1957  | $904  |
| Adjustments to reconcile net income to net cash used for operating activities: |  |  |
| &nbsp;&nbsp;Provision (credit) for credit losses | (130) |  |
| &nbsp;&nbsp;Provision for depreciation and amortization | 494  | 486  |
| &nbsp;&nbsp;Share-based compensation expense | 23  | 18  |
| &nbsp;&nbsp;Provision (credit) for deferred income taxes | (56) | 210  |
| &nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade, notes, and financing receivables related to sales | (1015) | (106) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (1279) | (1297) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (1577) | (1554) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued income taxes payable/receivable | 199  | (184) |
| &nbsp;&nbsp;&nbsp;&nbsp;Retirement benefits | (48) | (1010) |
| &nbsp;&nbsp;Other | 186  | (20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used for operating activities | (1246) | (2553) |
| **Cash Flows from Investing Activities** |  |  |
| Collections of receivables (excluding receivables related to sales) | 7198  | 6435  |
| Proceeds from sales of equipment on operating leases | 497  | 479  |
| Cost of receivables acquired (excluding receivables related to sales) | (6322) | (5603) |
| Acquisitions of businesses, net of cash acquired |  | (24) |
| Purchases of property and equipment | (315) | (193) |
| Cost of equipment on operating leases acquired | (497) | (391) |
| Collateral on derivatives - net | 345  | (13) |
| Other | (146) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities | 760  | 648  |
| **Cash Flows from Financing Activities** |  |  |
| Increase (decrease) in total short-term borrowings | 697  | (1018) |
| Proceeds from long-term borrowings | 2505  | 2353  |
| Payments of long-term borrowings | (1925) | (1940) |
| Proceeds from issuance of common stock | 21  | 11  |
| Repurchases of common stock | (1257) | (623) |
| Dividends paid | (341) | (327) |
| Other | (39) | (33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used for financing activities | (339) | (1577) |
| **Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash** | 62  | (74) |
| **Net Decrease in Cash, Cash Equivalents, and Restricted Cash** | (763) | (3556) |
| **Cash, Cash Equivalents, and Restricted Cash at Beginning of Period** | 4941  | 8125  |
| **Cash, Cash Equivalents, and Restricted Cash at End of Period** | $4178  | $4569  |
| **Components of cash, cash equivalents, and restricted cash** |  |  |
| Cash and cash equivalents | $3976  | $4472  |
| Restricted cash (Other assets) | 202  | 97  |
| **Total cash, cash equivalents, and restricted cash** | $4178  | $4569  |

---

See Condensed Notes to Interim Consolidated Financial Statements.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY |
| STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY | STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY | STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY | STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY | STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY | STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY | STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY | STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY |
| For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 |
| (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited |
|  |  | Total Stockholders' Equity | Total Stockholders' Equity | Total Stockholders' Equity | Total Stockholders' Equity | Total Stockholders' Equity |  |
|  |  | Deere & Company Stockholders | Deere & Company Stockholders | Deere & Company Stockholders | Deere & Company Stockholders |  |  |
|  |  |  |  |  | Accumulated |  |  |
|  | Total |  |  |  | Other |  | Redeemable |
|  | Stockholders' | Common | Treasury | Retained | Comprehensive | Noncontrolling | Noncontrolling |
|  | Equity | Stock | Stock | Earnings | Income (Loss) | Interests | Interest |
| **Balance October 31, 2021** | $18434  | $5054  | $(20533) | $36449  | $(2539) | $3  |  |
| Net income | 904  |  |  | 903  |  | 1  |  |
| Other comprehensive loss | (613) |  |  |  | (613) |  |  |
| Repurchases of common stock | (623) |  | (623) |  |  |  |  |
| Treasury shares reissued | 17  |  | 17  |  |  |  |  |
| Dividends declared | (323) |  |  | (323) |  |  |  |
| Share based awards and other | 12  | 12  |  |  |  |  |  |
| **Balance January 30, 2022** | $17808  | $5066  | $(21139) | $37029  | $(3152) | $4  |  |
| **Balance October 30, 2022** | $20265  | $5165  | $(24094) | $42247  | $(3056) | $3  | $92  |
| Net income (loss) | 1960  |  |  | 1959  |  | 1  | (3) |
| Other comprehensive income | 684  |  |  |  | 684  |  | 8  |
| Repurchases of common stock | (1257) |  | (1257) |  |  |  |  |
| Treasury shares reissued | 18  |  | 18  |  |  |  |  |
| Dividends declared | (356) |  |  | (356) |  |  |  |
| Share based awards and other | 22  | 26  |  | (4) |  |  | 3  |
| **Balance January 29, 2023** | $21336  | $5191  | $(25333) | $43846  | $(2372) | $4  | $100  |

---

&nbsp;&nbsp;&nbsp;&nbsp;See Condensed Notes to Interim Consolidated Financial Statements.

Condensed Notes to Interim Consolidated Financial Statements (Unaudited)

**(1) Organization and Consolidation**

Deere & Company has been developing innovative solutions to help its customers become more profitable for more than 185 years. References to Deere & Company, John Deere, Deere, or the Company include its consolidated subsidiaries and consolidated variable interest entities (VIEs). The Company is managed through the following operating segments: production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (FS). References to "equipment operations" include production and precision agriculture, small agriculture and turf, and construction and forestry, while references to "agriculture and turf" include both production and precision agriculture and small agriculture and turf.

The Company uses a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The first quarter ends for fiscal year 2023 and 2022 were January 29, 2023 and January 30, 2022, respectively. Both periods contained 13 weeks. Unless otherwise stated, references to particular years, quarters, or months refer to the Company's fiscal years generally ending in October and the associated periods in those fiscal years.

**(2) Summary of Significant Accounting Policies and New Accounting Standards**

**Quarterly Financial Statements**

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

**Use of Estimates in Financial Statements**

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates.

**New Accounting Standards**

The Company closely monitors all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board and other authoritative guidance. ASUs adopted in 2023 did not have a material impact on the Company's financial statements. ASUs to be adopted in future periods are being evaluated and at this point are not expected to have a material impact on the Company's financial statements.

**(3) Revenue Recognition**

The Company's net sales and revenues by primary geographic market, major product line, and timing of revenue recognition in millions of dollars follow:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Three Months Ended January 29, 2023 | Three Months Ended January 29, 2023 | Three Months Ended January 29, 2023 | Three Months Ended January 29, 2023 | Three Months Ended January 29, 2023 |
|  | Production & Precision Ag | Small Ag & Turf | Construction & Forestry | Financial Services | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Primary geographic markets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States | $2628  | $1665  | $1901  | $713  | $6907  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada | 360  | 146  | 275  | 150  | 931  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Western Europe | 501  | 564  | 365  | 29  | 1459  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Central Europe and CIS | 202  | 123  | 75  | 12  | 412  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Latin America | 1237  | 156  | 339  | 95  | 1827  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asia, Africa, Oceania, and Middle East | 375  | 400  | 300  | 41  | 1116  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $5303  | $3054  | $3255  | $1040  | $12652  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Major product lines: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production agriculture | $5112  |  |  |  | $5112  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Small agriculture |  | $2194  |  |  | 2194  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Turf |  | 719  |  |  | 719  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction |  |  | $1483  |  | 1483  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compact construction |  |  | 473  |  | 473  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roadbuilding |  |  | 818  |  | 818  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forestry |  |  | 356  |  | 356  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial products | 31  | 18  | 13  | $1040  | 1102  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 160  | 123  | 112  |  | 395  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $5303  | $3054  | $3255  | $1040  | $12652  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue recognized: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At a point in time | $5248  | $3029  | $3230  | $23  | $11530  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over time | 55  | 25  | 25  | 1017  | 1122  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $5303  | $3054  | $3255  | $1040  | $12652  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Three Months Ended January 30, 2022 | Three Months Ended January 30, 2022 | Three Months Ended January 30, 2022 | Three Months Ended January 30, 2022 | Three Months Ended January 30, 2022 |
|  | Production & Precision Ag | Small Ag & Turf | Construction & Forestry | Financial Services | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Primary geographic markets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States | $1608  | $1438  | $1260  | $573  | $4879  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada | 139  | 122  | 332  | 152  | 745  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Western Europe | 467  | 532  | 358  | 26  | 1383  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Central Europe and CIS | 202  | 126  | 195  | 11  | 534  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Latin America | 776  | 104  | 228  | 68  | 1176  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asia, Africa, Oceania, and Middle East | 241  | 352  | 219  | 40  | 852  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $3433  | $2674  | $2592  | $870  | $9569  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Major product lines: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production agriculture | $3283  |  |  |  | $3283  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Small agriculture |  | $1932  |  |  | 1932  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Turf |  | 627  |  |  | 627  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction |  |  | $1175  |  | 1175  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compact construction |  |  | 321  |  | 321  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roadbuilding |  |  | 692  |  | 692  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forestry |  |  | 305  |  | 305  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial products | 12  | 11  | 5  | $870  | 898  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 138  | 104  | 94  |  | 336  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $3433  | $2674  | $2592  | $870  | $9569  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue recognized: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At a point in time | $3396  | $2654  | $2570  | $24  | $8644  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over time | 37  | 20  | 22  | 846  | 925  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $3433  | $2674  | $2592  | $870  | $9569  |

---

The Company invoices in advance of recognizing the sale of certain products and the revenue for certain services. These relate to extended warranty premiums, advance payments for future equipment sales, and subscription and service revenue related to precision guidance and telematic services. These advanced customer payments are presented as deferred revenue, a contract liability, in "Accounts payable and accrued expenses" in the consolidated balance sheets. The deferred revenue received, but not recognized in revenue, including extended warranty premiums also shown in Note 16, was $1,502 million, $1,423 million, and $1,348 million at January 29, 2023, October 30, 2022, and January 30, 2022, respectively. The contract liability is reduced as the revenue is recognized. During the three months ended January 29, 2023 and January 30, 2022, $215 million and $265 million, respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $1,282 million at January 29, 2023. The estimated revenue to be recognized by fiscal year in millions of dollars follows: remainder of 2023 - $278, 2024 - $332, 2025 - $260, 2026 - $168, 2027 - $100, 2028 - $61, and later years - $83. As permitted, the Company elected only to disclose remaining performance obligations with an original contract duration greater than one year. The contracts with an expected duration of one year or less are for sales of equipment, service parts, repair services, and certain telematics services.

**(4) Other Comprehensive Income Items**

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

---

| | | | |
|:---|:---|:---|:---|
|  | January 29 <br>2023 | October 30<br>2022 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement benefits adjustment | $(400) | $(389) | $(1379) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative translation adjustment | (1913) | (2594) | (1745) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on derivatives | 8  | 21  | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on debt securities | (67) | (94) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accumulated other comprehensive income (loss) | $(2372) | $(3056) | $(3152) |

---

Following are amounts recorded in and reclassifications out of other comprehensive income (loss), and the income tax effects, in millions of dollars. Retirement benefits adjustment reclassifications for actuarial (gain) loss, prior service (credit) cost, and settlements are included in net periodic pension and other postretirement benefit costs (see Note 6).

---

| | | | |
|:---|:---|:---|:---|
|  | Before | Tax | After |
|  | Tax | (Expense) | Tax |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three Months Ended January 29, 2023 | Amount | Credit | Amount |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative translation adjustment | $669  | $12  | $681  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on derivatives: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized hedging gain (loss) | (1) |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification of realized (gain) loss to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts – Interest expense | (15) | 3  | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain (loss) on derivatives | (16) | 3  | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on debt securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized holding gain (loss) | 34  | (7) | 27  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain (loss) on debt securities | 34  | (7) | 27  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement benefits adjustment: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net actuarial gain (loss) | (1) |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification to other operating expenses through amortization of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actuarial (gain) loss | (21) | 5  | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior service (credit) cost | 9  | (3) | 6  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain (loss) on retirement benefits adjustment | (13) | 2  | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) | $674  | $10  | $684  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | Before | Tax | After |
|  | Tax | (Expense) | Tax |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three Months Ended January 30, 2022 | Amount | Credit | Amount |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative translation adjustment | $(264) | $(3) | $(267) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on derivatives: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized hedging gain (loss) | 15  | (3) | 12  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification of realized (gain) loss to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts – Interest expense | 2  |  | 2  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain (loss) on derivatives | 17  | (3) | 14  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on debt securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized holding gain (loss) | (19) | 4  | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain (loss) on debt securities | (19) | 4  | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement benefits adjustment: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net actuarial gain (loss) and prior service credit (cost) | (500) | 120  | (380) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification to other operating expenses through amortization of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actuarial (gain) loss | 40  | (10) | 30  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior service (credit) cost | 6  | (2) | 4  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlements | 1  |  | 1  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain (loss) on retirement benefits adjustment | (453) | 108  | (345) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) | $(719) | $106  | $(613) |

---

**(5) Earnings Per Share**

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

---

| | | |
|:---|:---|:---|
|  | Three Months Ended  | Three Months Ended  |
|  | January 29 <br>2023 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to Deere & Company | $1959  | $903  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average shares outstanding | 297.6  | 307.4  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic per share | $6.58  | $2.94  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average shares outstanding | 297.6  | 307.4  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of dilutive share-based compensation | 1.5  | 2.0  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total potential shares outstanding | 299.1  | 309.4  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted per share | $6.55  | $2.92  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares excluded from EPS calculation, as antidilutive | .1  | .1  |

---

**(6) Pension and Other Postretirement Benefits**

The Company has several defined benefit pension plans and postretirement benefit (OPEB) plans, primarily health care and life insurance plans, covering its U.S. employees and employees in certain foreign countries. The components of net periodic pension and OPEB (benefit) cost consisted of the following in millions of dollars:

---

| | | |
|:---|:---|:---|
|  | Three Months Ended  | Three Months Ended  |
|  | January 29 <br>2023 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Pension** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service cost | $60  | $85  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest cost | 133  | 77  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected return on plan assets | (212) | (182) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of actuarial (gain) loss | (5) | 39  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of prior service cost | 10  | 7  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlements |  | 1  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (benefit) cost | $(14) | $27  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**OPEB** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service cost | $7  | $12  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest cost | 43  | 26  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected return on plan assets | (29) | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of actuarial (gain) loss | (16) | 1  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of prior service credit | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cost | $4  | $10  |

---

The reduction in the 2023 pension net (benefit) cost is due to increases in the expected long-term return rates on plan assets and increases in discount rates. The components of net periodic pension and OPEB (benefit) cost excluding the service cost component are included in the line item "Other operating expenses" in the statements of consolidated income.

**(7) Segment Reporting**

Worldwide Net sales and revenues, operating profit, and identifiable assets by segment were as follows in millions of dollars.

---

| | | | |
|:---|:---|:---|:---|
|  | Three Months Ended  | Three Months Ended  | Three Months Ended  |
|  | January 29 <br>2023 | January 30 <br>2022 | %<br>Change |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net sales and revenues: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production & precision ag net sales | $5198  | $3356  | +55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Small ag & turf net sales | 3001  | 2631  | +14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction & forestry net sales | 3203  | 2544  | +26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial services revenues | 1040  | 870  | +20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other revenues | 210  | 168  | +25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net sales and revenues | $12652  | $9569  | +32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating profit:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production & precision ag | $1208  | $296  | +308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Small ag & turf | 447  | 371  | +20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction & forestry | 625  | 272  | +130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial services | 238  | 296  | -20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating profit | 2518  | 1235  | +104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reconciling items  | (22) | (82) | -73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | (537) | (250) | +115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to Deere & Company | $1959  | $903  | +117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intersegment sales and revenues: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production & precision ag net sales | $5  | $4  | +25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Small ag & turf net sales | 3  | 2  | +50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction & forestry net sales |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial services revenues | 204  | 46  | +343 |

---

Operating profit for production and precision ag, small ag and turf, and construction and forestry is income from continuing operations before reconciling items and income taxes. Operating profit of the financial services segment includes the effect of interest expense and foreign exchange gains and losses. Reconciling items to net income are primarily corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, pension and OPEB benefit amounts excluding the service cost component, and net income attributable to noncontrolling interests.

---

| | | | |
|:---|:---|:---|:---|
|  | January 29 <br>2023 | October 30<br>2022 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identifiable assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production & precision ag | $9393  | $8414  | $7683  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Small ag & turf | 4893  | 4451  | 4260  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction & forestry | 7232  | 6754  | 6358  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial services | 59721  | 58864  | 50499  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate | 10381  | 11547  | 10814  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $91620  | $90030  | $79614  |

---

**(8) Financing Receivables**

The Company monitors the credit quality of financing receivables based on delinquency status. Past due balances of financing receivables still accruing finance income represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. Non-performing financing receivables represent receivables for which the Company has ceased accruing finance income. The Company ceases accruing finance income when these receivables are generally 90 days delinquent. Generally, when receivables are 120 days delinquent the estimated uncollectible amount from the customer is written off to the allowance for credit losses. Finance income for non-performing receivables is recognized on a cash basis. Accrual of finance income is generally resumed when the receivable becomes contractually current and collections are reasonably assured.

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | January 29, 2023 | January 29, 2023 | January 29, 2023 | January 29, 2023 | January 29, 2023 | January 29, 2023 | January 29, 2023 | January 29, 2023 |
|  | 2023 | 2022 | 2021 | 2020 | 2019 | Prior Years | Revolving Charge Accounts | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail customer receivables: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agriculture and turf |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | $2939  | $12435  | $7228  | $3660  | $1600  | $823  | $2753  | $31438  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30-59 days past due | 2  | 39  | 39  | 54  | 13  | 44  | 28  | 219  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60-89 days past due | 1  | 15  | 14  | 20  | 5  | 15  | 6  | 76  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90+ days past due |  | 1  |  | 3  | 1  |  |  | 5  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing |  | 40  | 58  | 41  | 27  | 34  | 8  | 208  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction and forestry |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | 674  | 2692  | 1702  | 684  | 224  | 80  | 99  | 6155  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30-59 days past due | 2  | 18  | 29  | 36  | 16  | 52  | 5  | 158  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60-89 days past due |  | 9  | 17  | 18  | 8  | 24  | 2  | 78  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90+ days past due |  | 1  | 2  | 1  | 2  | 1  |  | 7  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing |  | 46  | 58  | 30  | 16  | 7  | 1  | 158  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total retail customer receivables | $3618  | $15296  | $9147  | $4547  | $1912  | $1080  | $2902  | $38502  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | October 30, 2022 | October 30, 2022 | October 30, 2022 | October 30, 2022 | October 30, 2022 | October 30, 2022 | October 30, 2022 | October 30, 2022 |
|  | 2022 | 2021 | 2020 | 2019 | 2018 | Prior Years | Revolving Charge Accounts | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail customer receivables: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agriculture and turf |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | $13500  | $7984  | $4091  | $1875  | $785  | $200  | $4111  | $32546  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30-59 days past due | 46  | 63  | 36  | 17  | 7  | 3  | 19  | 191  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60-89 days past due | 14  | 25  | 13  | 6  | 2  | 1  | 5  | 66  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90+ days past due | 1  |  |  |  |  |  |  | 1  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing | 27  | 60  | 44  | 28  | 18  | 19  | 8  | 204  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction and forestry |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | 2964  | 1974  | 842  | 292  | 73  | 12  | 108  | 6265  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30-59 days past due | 53  | 52  | 23  | 9  | 2  | 1  | 3  | 143  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60-89 days past due | 19  | 16  | 7  | 3  | 1  |  | 1  | 47  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90+ days past due | 1  | 4  | 1  | 3  |  | 1  |  | 10  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing | 25  | 61  | 34  | 19  | 7  | 3  |  | 149  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total retail customer receivables | $16650  | $10239  | $5091  | $2252  | $895  | $240  | $4255  | $39622  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | January 30, 2022 | January 30, 2022 | January 30, 2022 | January 30, 2022 | January 30, 2022 | January 30, 2022 | January 30, 2022 | January 30, 2022 |
|  | 2022 | 2021 | 2020 | 2019 | 2018 | Prior Years | Revolving Charge Accounts | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail customer receivables: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agriculture and turf |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | $2492  | $11580  | $5988  | $3038  | $1440  | $761  | $2634  | $27933  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30-59 days past due | 5  | 82  | 52  | 30  | 15  | 6  | 25  | 215  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60-89 days past due | 1  | 23  | 18  | 10  | 5  | 3  | 5  | 65  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90+ days past due |  | 1  |  |  |  |  |  | 1  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing | 1  | 33  | 58  | 52  | 31  | 36  | 6  | 217  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction and forestry |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | 764  | 2795  | 1376  | 615  | 204  | 49  | 81  | 5884  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30-59 days past due | 8  | 68  | 35  | 21  | 6  | 2  | 3  | 143  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60-89 days past due |  | 30  | 17  | 7  | 3  | 1  | 1  | 59  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90+ days past due |  | 2  | 3  | 3  | 1  | 8  |  | 17  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing |  | 33  | 48  | 37  | 14  | 7  | 1  | 140  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total retail customer receivables | $3271  | $14647  | $7595  | $3813  | $1719  | $873  | $2756  | $34674  |

---

The credit quality analysis of wholesale receivables by year of origination was as follows in millions of dollars:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | January 29, 2023 | January 29, 2023 | January 29, 2023 | January 29, 2023 | January 29, 2023 | January 29, 2023 | January 29, 2023 | January 29, 2023 |
|  | 2023 | 2022 | 2021 | 2020 | 2019 | Prior Years | Revolving | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wholesale receivables: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agriculture and turf |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | $115  | $285  | $48  | $21  | $4  | $1  | $2654  | $3128  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30+ days past due |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing |  |  |  | 1  |  |  |  | 1  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction and forestry |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | 7  | 7  | 24  | 2  |  | 1  | 459  | 500  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30+ days past due |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total wholesale receivables | $122  | $292  | $72  | $24  | $4  | $2  | $3113  | $3629  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | October 30, 2022 | October 30, 2022 | October 30, 2022 | October 30, 2022 | October 30, 2022 | October 30, 2022 | October 30, 2022 | October 30, 2022 |
|  | 2022 | 2021 | 2020 | 2019 | 2018 | Prior Years | Revolving | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wholesale receivables: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agriculture and turf |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | $387  | $64  | $27  | $4  |  | $2  | $2371  | $2855  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30+ days past due |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing |  |  |  | 1  |  |  |  | 1  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction and forestry |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | 7  | 29  | 2  | 1  |  | 1  | 377  | 417  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30+ days past due |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total wholesale receivables | $394  | $93  | $29  | $6  |  | $3  | $2748  | $3273  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | January 30, 2022 | January 30, 2022 | January 30, 2022 | January 30, 2022 | January 30, 2022 | January 30, 2022 | January 30, 2022 | January 30, 2022 |
|  | 2022 | 2021 | 2020 | 2019 | 2018 | Prior Years | Revolving | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wholesale receivables: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agriculture and turf |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | $101  | $244  | $56  | $11  | $7  | $2  | $1426  | $1847  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30+ days past due |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing |  |  |  | 7  |  |  |  | 7  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction and forestry |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | 5  | 38  | 4  | 3  |  | 1  | 285  | 336  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30+ days past due |  |  |  |  |  | 1  |  | 1  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-performing |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total wholesale receivables | $106  | $282  | $60  | $21  | $7  | $4  | $1711  | $2191  |

---

An analysis of the allowance for credit losses and investment in financing receivables in millions of dollars during the periods follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended January 29, 2023 | Three Months Ended January 29, 2023 | Three Months Ended January 29, 2023 | Three Months Ended January 29, 2023 |
|  | Retail Notes<br>& Financing <br>Leases | Revolving<br>Charge<br>Accounts | <br>Wholesale<br>Receivables | <br>Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period balance | $299  | $22  | $4  | $325  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) | 15  | (4) |  | 11  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision transferred to held for sale | (142) |  |  | (142) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) subtotal | (127) | (4) |  | (131) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-offs | (18) | (7) |  | (25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 4  | 5  | 1  | 10  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Translation adjustments | (18) |  | (1) | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period balance | $140 | $16 | $4 | $160  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing receivables: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period balance | $35600  | $2902  | $3629  | $42131  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended January 30, 2022 | Three Months Ended January 30, 2022 | Three Months Ended January 30, 2022 | Three Months Ended January 30, 2022 |
|  | Retail Notes<br>& Financing <br>Leases | Revolving<br>Charge<br>Accounts | <br>Wholesale<br>Receivables | <br>Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period balance | $138  | $21  | $7  | $166  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) | 13  | (9) | (2) | 2  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-offs | (17) | (5) |  | (22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 4  | 8  |  | 12  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period balance | $138 | $15 | $5 | $158  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing receivables: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period balance | $31918 | $2756 | $2191 | $36865  |

---

In the first quarter of 2023, the Company determined that the financial services business in Russia met the held for sale criteria. The financing receivables in Russia were reclassified to "Other assets" and the associated allowance for credit losses was reversed (see Note 20). Excluding the portfolio in Russia, the allowance for credit losses decreased during the first quarter of 2023, as the financing receivables continue to benefit from strong fundamentals within the agricultural market.

**(9) Securitization of Financing Receivables**

As a part of its overall funding strategy, the Company periodically transfers certain financing receivables (retail notes) into VIEs that are special purpose entities (SPEs), or non-VIE banking operations, as part of its asset-backed securities programs (securitizations). The structure of these transactions is such that the transfer of the retail notes does not meet the accounting criteria for sales of receivables, and is, therefore, accounted for as a secured borrowing. SPEs utilized in securitizations of retail notes differ from other entities included in the Company's consolidated statements because the assets they hold are legally isolated. Use of the assets held by the SPEs or the non-VIEs is restricted by terms of the documents governing the securitization transactions.

The components of consolidated restricted assets, secured borrowings, and other liabilities related to secured borrowings in securitization transactions were as follows in millions of dollars:

---

| | | | |
|:---|:---|:---|:---|
|  | January 29 <br>2023 | October 30<br>2022 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing receivables securitized (retail notes) | $5102  | $5952  | $3526  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | (13) | (16) | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets (primarily restricted cash) | 97  | 155  | 100  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total restricted securitized assets | $5186  | $6091  | $3616  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term securitization borrowings | $4864  | $5711  | $3482  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest on borrowings | 6  | 6  | 1  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities related to restricted securitized assets | $4870  | $5717  | $3483  |

---

**(10) Inventories**

A majority of inventory owned by Deere & Company and its U.S. equipment subsidiaries are valued at cost on the "last-in, first-out" (LIFO) basis. If all of the Company's inventories had been valued on a "first-in, first-out" (FIFO) basis, estimated inventories by major classification in millions of dollars would have been as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | January 29 <br>2023 | October 30<br>2022 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Raw materials and supplies | $4975  | $4442  | $4034  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Work-in-process | 1478  | 1190  | 1460  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finished goods and parts | 6347  | 5363  | 4790  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total FIFO value | 12800  | 10995  | 10284  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less adjustment to LIFO value | 2744  | 2500  | 2349  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | $10056  | $8495  | $7935  |

---

**(11) Goodwill and Other Intangible Assets-Net**

The changes in amounts of goodwill by operating segment were as follows in millions of dollars:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Production & Precision Ag | Small Ag & Turf | Construction & Forestry | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill at October 31, 2021 | $542  | $265  | $2484  | $3291  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition | 7  | 7  | 4  | 18  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Translation adjustments | (5) | (2) | (110) | (117) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill at January 30, 2022 | $544  | $270  | $2378  | $3192  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill at October 30, 2022 | $646  | $318  | $2723  | $3687  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Translation adjustments | 15  | 7  | 182  | 204  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill at January 29, 2023 | $661  | $325  | $2905  | $3891  |

---

There were no accumulated goodwill impairment losses in the reported periods.

The components of other intangible assets were as follows in millions of dollars:

---

| | | | |
|:---|:---|:---|:---|
|  | January 29 <br>2023 | October 30<br>2022 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized intangible assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer lists and relationships | $522  | $493  | $526  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology, patents, trademarks, and other | 1387  | 1301  | 1066  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total at cost | 1909  | 1794  | 1592  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less accumulated amortization: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer lists and relationships | 184  | 166  | 156  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology, patents, trademarks, and other | 470  | 410  | 350  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accumulated amortization | 654  | 576  | 506  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized intangible assets | 1255  | 1218  | 1086  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unamortized intangible assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In-process research and development |  |  | 123  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other intangible assets – net | $1255  | $1218  | $1209  |

---

In September 2017, the Company acquired Blue River Technology's in-process research and development related to machine learning technology to optimize the use of farm inputs. Those research and development activities were completed, and the Company started amortizing the acquired technology in the second quarter of 2022.

The amortization of other intangible assets in the first quarter of 2023 and 2022 was $39 million and $28 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: remainder of 2023 – $132, 2024 – $167, 2025 – $139, 2026 – $119, 2027 – $118, and 2028 – $86.

**(12) Short-Term Borrowings**

Short-term borrowings were as follows in millions of dollars:

---

| | | | |
|:---|:---|:---|:---|
|  | January 29 <br>2023 | October 30<br>2022 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial paper | $6425  | $4703  | $2135  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable to banks | 303  | 402  | 519  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance lease obligations due within one year | 23  | 21  | 23  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings due within one year | 7378  | 7466  | 8313  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | $14129  | $12592  | $10990  |

---

**(13) Accounts Payable and Accrued Expenses**

Accounts payable and accrued expenses were as follows in millions of dollars:

---

| | | | |
|:---|:---|:---|:---|
|  | January 29 <br>2023 | October 30<br>2022 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade payables  | $3616  | $3894  | $3035  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payables to unconsolidated affiliates | 10  | 11  | 172  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends payable  | 358  | 343  | 325  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 305  | 302  | 267  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits withheld from dealers and merchants  | 153  | 163  | 148  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other  | 156  | 214  | 160  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dealer sales discounts  | 256  | 1044  | 182  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product warranties  | 1444  | 1427  | 1283  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefits  | 1015  | 1528  | 765  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued taxes | 1336  | 1255  | 974  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unearned operating lease revenue | 406  | 399  | 385  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unearned revenue (contractual liability) | 601  | 557  | 567  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extended warranty premium  | 901  | 866  | 781  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest  | 371  | 288  | 280  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities | 891  | 1231  | 276  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other  | 1289  | 1300  | 1051  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accounts payable and accrued expenses  | $13108  | $14822  | $10651  |

---

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $1,540 million at January 29, 2023, $1,280 million at October 30, 2022, and $983 million at January 30, 2022. Other eliminations were made for accrued taxes and other accrued expenses.

**(14) Long-Term Borrowings**

Long-term borrowings were as follows in millions of dollars:

---

| | | | |
|:---|:---|:---|:---|
|  | January 29 <br>2023 | October 30<br>2022 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwritten term debt |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar notes and debentures: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.75% notes due 2025 | $700  | $700  | $700  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.55% debentures due 2028  | 200  | 200  | 200  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.375% notes due 2029  | 500  | 500  | 500  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10% notes due 2030 | 700  | 700  | 700  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10% debentures due 2030  | 250  | 250  | 250  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.125% notes due 2031  | 300  | 300  | 300  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.90% notes due 2042  | 1250  | 1250  | 1250  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.875% notes due 2049  | 500  | 500  | 500  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.75% notes due 2050 | 850  | 850  | 850  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Euro notes: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.5% notes due 2023 (€500 principal) |  |  | 557  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.375% notes due 2024 (€800 principal) | 871  | 797  | 891  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.85% notes due 2028 (€600 principal) | 653  | 598  | 669  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20% notes due 2032 (€600 principal) | 653  | 598  | 669  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.65% notes due 2039 (€650 principal) | 708  | 648  | 724  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Serial issuances: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medium-term notes: (principal as of: January 29, 2023 - $26,367, October 30, 2022 - $25,629, January 30, 2022 - $22,896) | 25618  | 24604  | 22947  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other notes and finance lease obligations | 1440  | 1223  | 1246  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less debt issuance costs and debt discounts | (122) | (122) | (115) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | $35071  | $33596  | $32838  |

---

Medium-term notes serially due through 2032 are primarily offered by prospectus and issued at fixed and variable rates. These notes are presented in the table above with fair value adjustments related to interest rate swaps. All outstanding notes and debentures are senior unsecured borrowings and rank equally with each other.

**(15) Leases - Lessor**

The Company leases equipment manufactured or sold by the Company and a limited amount of non-John Deere equipment to retail customers through sales-type, direct financing, and operating leases. Sales-type and direct financing leases are reported in Financing receivables – net on the consolidated balance sheets, while operating leases are reported in Equipment on operating leases – net.

Lease revenues earned by the Company were as follows in millions of dollars:

---

| | | |
|:---|:---|:---|
|  | Three Months Ended  | Three Months Ended  |
|  | January 29, 2023 | January 30, 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales-type and direct finance lease revenues | $41  | $39  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease revenues | 321  | 336  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable lease revenues | 6  | 7  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total lease revenues | $368  | $382  |

---

**(16) Commitments and Contingencies**

The Company determines its total warranty liability by applying historical claims rate experience to the estimated amount of equipment that has been sold and is still under warranty based on dealer inventories and retail sales. The historical claims rate is determined by a review of five-year claims costs and current quality developments.

The premiums for extended warranties are recognized in Other income in the statements of consolidated income in proportion to the costs expected to be incurred over the contract period. The unamortized extended warranty premiums (deferred revenue) included in the following table totaled $901 million and $781 million at January 29, 2023 and January 30, 2022, respectively.

A reconciliation of the changes in the warranty liability and unearned premiums in millions of dollars follows:

---

| | | |
|:---|:---|:---|
|  | Three Months Ended  | Three Months Ended  |
|  | January 29 <br>2023 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period balance | $2293  | $2086  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments | (263) | (193) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of premiums received | (83) | (66) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accruals for warranties | 255  | 181  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received | 106  | 83  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange | 37  | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period balance | $2345  | $2064  |

---

At January 29, 2023, the Company had $235 million of guarantees issued to banks outside the U.S. and Canada related to third-party receivables for the retail financing of John Deere equipment. The Company may recover a portion of any required payments incurred under these agreements from repossession of the equipment collateralizing the receivables. At January 29, 2023, the accrued losses under these agreements were not material. The maximum remaining term of the receivables guaranteed at January 29, 2023 was about seven years.

At January 29, 2023, the Company had commitments of $467 million for the construction and acquisition of property and equipment. Also, at January 29, 2023, the Company had restricted assets of $269 million, classified as "Other assets."

The Company also had other miscellaneous contingent liabilities and guarantees totaling approximately $90 million at January 29, 2023. The accrued liability for these contingencies was not material at January 29, 2023.

The Company is subject to various unresolved legal actions which arise in the normal course of its business, the most prevalent of which relate to product liability (including asbestos-related liability), retail credit, employment, patent, trademark, and antitrust matters. The Company believes the reasonably possible range of losses for these unresolved legal actions would not have a material effect on its consolidated financial statements.

**(17) Fair Value Measurements**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | January 29, 2023 | January 29, 2023 | October 30, 2022 | October 30, 2022 | January 30, 2022 | January 30, 2022 |
|  | Carrying<br>Value | Fair<br>Value | Carrying<br>Value | Fair<br>Value | Carrying<br>Value | Fair<br>Value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing receivables – net | $36882  | $35894  | $36634  | $35526  | $33191  | $33033  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing receivables securitized – net | 5089  | 4869  | 5936  | 5698  | 3516  | 3530  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term securitization borrowings | 4864  | 4785  | 5711  | 5577  | 3482  | 3468  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings due within one year | 7378  | 7220  | 7466  | 7322  | 8313  | 8322  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | 35035  | 34149  | 33566  | 31852  | 32806  | 33843  |

---

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

Fair values of the financing receivables that were issued long-term were based on the discounted values of their related cash flows at interest rates currently being offered by the Company for similar financing receivables. The fair values of the remaining financing receivables approximated the carrying amounts.

Fair values of long-term borrowings and short-term securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates. Certain long-term borrowings have been swapped to current variable interest rates. The carrying values of these long-term borrowings included adjustments related to fair value hedges.

Assets and liabilities measured at fair value on a recurring basis in millions of dollars follow, excluding the Company's cash equivalents, which were carried at cost that approximates fair value and consisted of money market funds and time deposits.

---

| | | | |
|:---|:---|:---|:---|
|  | January 29 <br>2023 | October 30<br>2022 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 1: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International equity securities  | $2  | $3  | $2  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. equity fund  | 86  | 70  | 72  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. fixed income fund | 118  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government debt securities | 64  | 62  | 63  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Level 1 marketable securities | 270  | 135  | 137  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 2: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government debt securities | 127  | 121  | 138  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal debt securities | 71  | 63  | 74  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities | 209  | 200  | 229  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International debt securities | 18  | 60  | 2  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | 157  | 155  | 155  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Level 2 marketable securities | 582  | 599  | 598  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets – Derivatives | 360  | 373  | 299  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses – Derivatives | 891  | 1231  | 276  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 3: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses – Deferred consideration | 225  | 236  |  |

---

The contractual maturities of debt securities at January 29, 2023 in millions of dollars are shown below. Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity.

---

| | | |
|:---|:---|:---|
|  | Amortized<br>Cost | Fair<br>Value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due in one year or less | $35  | $35  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after one through five years | 111  | 105  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after five through 10 years | 197  | 176  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after 10 years | 204  | 173  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | 182  | 157  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities | $729  | $646  |

---

Fair value, nonrecurring Level 3 measurements from impairments, excluding financing receivables with specific allowances which were not significant, were as follows in millions of dollars.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Fair Value | Fair Value | Fair Value | Losses | Losses |
|  | | | | Three Months Ended  | Three Months Ended  |
|  | <br>January 29 <br>2023 | <br>October 30<br>2022 | <br>January 30 <br>2022 | January 29 <br>2023 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories |  | $19 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment – net |  | 15 |  |  |  |

---

The following is a description of the valuation methodologies the Company uses to measure certain financial instruments on the balance sheet at fair value:

Marketable securities *–* The portfolio of investments is valued on a market approach (matrix pricing model) in which all significant inputs are observable or can be derived from or corroborated by observable market data such as interest rates, yield curves, volatilities, credit risk, and prepayment speeds. Funds are valued using closing prices in the active market in which the investment trades.

Derivatives *–* The Company's derivative financial instruments consist of interest rate contracts (swaps), foreign currency exchange contracts (futures, forwards, and swaps), and cross-currency interest rate contracts (swaps). The portfolio is valued based on an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates for currencies.

Financing receivables *–* Specific reserve impairments are based on the fair value of the collateral, which is measured using a market approach (appraisal values or realizable values).

Inventories – The impairment was based on net realizable value.

Property and equipment - net – The valuations were based on cost and market approaches. The inputs include replacement cost estimates adjusted for physical deterioration and economic obsolescence.

**(18) Derivative Instruments**

The Company's policy is to execute derivative transactions to manage exposures arising in the normal course of business and not for the purpose of creating speculative positions or trading. The financial services operations manage the relationship of the types and amounts of their funding sources to their receivable and lease portfolio in an effort to diminish risk due to interest rate and foreign currency fluctuations, while responding to favorable financing opportunities. The Company also has foreign currency exposures at some of its foreign and domestic operations related to buying, selling, and financing in currencies other than the functional currencies. In addition, the Company has interest rate and foreign currency exposure at certain equipment operations units for sales incentive programs.

All derivatives are recorded at fair value on the balance sheets. Cash collateral received or paid is not offset against the derivative fair values on the balance sheet. The cash flows from the derivative contracts were recorded in operating activities in the statements of consolidated cash flows. Each derivative is designated as a cash flow hedge, a fair value hedge, or remains undesignated. All designated hedges are formally documented as to the relationship with the hedged item as well as the risk-management strategy. Both at

inception and on an ongoing basis the hedging instrument is assessed as to its effectiveness. If and when a derivative is determined not to be highly effective as a hedge, the underlying hedged transaction is no longer likely to occur, the hedge designation is removed, or the derivative is terminated, hedge accounting is discontinued.

Cash Flow Hedges

Certain interest rate contracts (swaps) were designated as hedges of future cash flows from borrowings. The total notional amounts of the receive-variable/pay-fixed interest rate contracts at January 29, 2023, October 30, 2022, and January 30, 2022 were $1,950 million, $1,950 million, and $2,700 million, respectively. Fair value gains or losses on cash flow hedges were recorded in other comprehensive income (OCI) and are subsequently reclassified into interest expense in the same periods during which the hedged transactions impact earnings. These amounts offset the effects of interest rate changes on the related borrowings.

The amount of gain recorded in OCI at January 29, 2023 that is expected to be reclassified to interest expense in the next twelve months if interest rates remain unchanged is $38 million after-tax. No gains or losses were reclassified from OCI to earnings based on the probability that the original forecasted transaction would not occur.

Fair Value Hedges

Certain interest rate contracts (swaps) were designated as fair value hedges of borrowings. The total notional amounts of the receive-fixed/pay-variable interest rate contracts at January 29, 2023, October 30, 2022, and January 30, 2022 were $10,802 million, $10,112 million, and $8,307 million, respectively. The fair value gains or losses on these contracts were generally offset by fair value gains or losses on the hedged items (fixed-rate borrowings) with both items recorded in interest expense.

The amounts recorded in the consolidated balance sheet related to borrowings designated in fair value hedging relationships were as follows in millions of dollars. Fair value hedging adjustments are included in the carrying amount of the hedged item.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Active Hedging Relationships | Active Hedging Relationships | Discontinued Hedging Relationships | Discontinued Hedging Relationships |
|  | Carrying Amount<br>of Hedged Item | Cumulative Fair Value<br>Hedging Amount | Carrying Amount of<br>Formerly Hedged Item | Cumulative Fair Value<br>Hedging Amount |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;January 29, 2023 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings |  |  | $1915  | $15  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | $10088  | $(666) | 5506  | (83) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October 30, 2022 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings |  |  | $2515  | $15  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | $9060  | $(1006) | 5520  | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;January 30, 2022 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | $177  | $2  | $2357  | $8  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | 7966  | (130) | 5447  | 181  |

---

Derivatives not designated as hedging instruments

The Company has certain interest rate contracts (swaps), foreign currency exchange contracts (futures, forwards, and swaps), and cross-currency interest rate contracts (swaps), which were not formally designated as hedges. These derivatives were held as economic hedges for underlying interest rate or foreign currency exposures for certain borrowings, purchases or sales of inventory, and sales incentive programs. The total notional amounts of these interest rate swaps at January 29, 2023, October 30, 2022, and January 30, 2022 were $11,147 million, $10,568 million, and $10,210 million, the foreign exchange contracts were $9,304 million, $8,185 million, and $7,864 million, and the cross-currency interest rate contracts were $234 million, $260 million, and $303 million, respectively. The fair value gains or losses from derivatives not designated as hedging instruments were recorded in the statements of consolidated income, generally offsetting over time the exposure on the hedged item.

Fair values of derivative instruments in the condensed consolidated balance sheets in millions of dollars follow:

---

| | | | |
|:---|:---|:---|:---|
|  | January 29  | October 30 | January 30  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Assets | 2023 | 2022 | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designated as hedging instruments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts | $90  | $87  | $102  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not designated as hedging instruments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts | 188  | 212  | 82  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange contracts | 71  | 66  | 91  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cross-currency interest rate contracts | 11  | 8  | 24  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total not designated | 270  | 286  | 197  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative assets | $360  | $373  | $299  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts Payable and Accrued Expenses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designated as hedging instruments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts | $678  | $1004  | $185  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not designated as hedging instruments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts | 97  | 107  | 27  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange contracts | 110  | 118  | 64  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cross-currency interest rate contracts | 6  | 2  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total not designated | 213  | 227  | 91  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative liabilities | $891  | $1231  | $276  |

---

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

---

| | | |
|:---|:---|:---|
|  | Three Months Ended  | Three Months Ended  |
|  | January 29 <br>2023 | January 30 <br>2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Hedges |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts - Interest expense | $239  | $(141) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Flow Hedges |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognized in OCI: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts - OCI (pretax) | $(1) | $15  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassified from OCI: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts - Interest expense | 15  | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not Designated as Hedges |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts - Net sales | $(7) | $13  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts - Interest expense \* | (8) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange contracts - Net sales | 1  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange contracts - Cost of sales | 5  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange contracts - Other operating expenses \* | (142) | 147  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total not designated | $(151) | $158  |

---

\* Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts.

Counterparty Risk and Collateral

Derivative instruments are subject to significant concentrations of credit risk to the banking sector. The Company manages individual counterparty exposure by setting limits that consider the credit rating of the counterparty, the credit default swap spread of the counterparty, and other financial commitments and exposures between the Company and the counterparty banks. All interest rate derivatives are transacted under International Swaps and Derivatives Association (ISDA) documentation. Some of these agreements include credit support provisions. Each master agreement permits the net settlement of amounts owed in the event of default or termination.

Certain of the Company's derivative agreements contain credit support provisions that may require the Company to post collateral based on the size of the net liability positions and credit ratings. The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at January 29, 2023, October 30, 2022, and January 30, 2022 was $781 million, $1,113 million, and $213 million, respectively. In accordance with the limits established in these agreements, the Company posted $349 million, $701 million, and $18 million of cash collateral at January 29, 2023, October 30, 2022, and January 30, 2022, respectively. In addition, the Company paid $8 million of collateral that was outstanding at January 29, 2023, October 30, 2022, and January 30, 2022 to participate in an international futures market to hedge currency exposure, not included in the table below.

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and any collateral received or paid in millions of dollars follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Gross Amounts | Netting |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;January 29, 2023 | Recognized | Arrangements | Collateral | Net Amount |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets | $360  | $(162) | $(47) | $151  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities | 891  | (162) | (349) | 380  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October 30, 2022 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets | $373  | $(179) | $(54) | $140  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities | 1231  | (179) | (701) | 351  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;January 30, 2022 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets | $299  | $(91) |  | $208  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities | 276  | (91) | $(19) | 166  |

---

**(19) Stock Option and Restricted Stock Unit Awards**

In December 2022, the Company granted stock options to employees for the purchase of 161 thousand shares of common stock at an exercise price of $438.44 per share and a binomial lattice model fair value of $136.46 per share at the grant date. At January 29, 2023, options for 2.0 million shares were outstanding with a weighted-average exercise price of $178.86 per share. The Company also granted 112 thousand of service-based restricted stock units and 41 thousand of performance/service-based restricted stock units to employees in the first three months of 2023. The weighted-average fair value of the service-based restricted stock units at the grant date was $434.02 per unit based on the market price of a share of underlying common stock. The fair value of the performance/service-based restricted stock units at the grant date was $424.93 per unit based on the market price of a share of underlying common stock excluding dividends. At January 29, 2023, the Company was authorized to grant awards for an additional 16.6 million shares under the equity incentive plans.

**(20) Special Items** 

In the first quarter of 2022, Net sales from the Company's Russian operations represented 2 percent of Deere's consolidated Net sales. Sales in the region were impacted as the Company suspended shipments of machines and service parts to Russia beginning in February 2022. As of January 29, 2023 and October 30, 2022, the Company's net exposure in Russia / Ukraine was approximately $229 million and $266 million, respectively.

In January 2023, the Company reached an agreement to sell its financial services business in Russia (registered in Russia as a leasing company). The completion of the transaction is expected in the second quarter of 2023. The assets and liabilities were classified as "Other assets" and "Accounts payable and accrued expenses", respectively, which include $100 million of restricted cash. In the first quarter of 2023, the Company reversed the allowance for credit losses and recorded a valuation allowance on the assets held for sale in "Selling, administrative and general expenses." The Company does not expect a significant gain or loss upon disposition.

On November 17, 2021, employees represented by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) approved a new collective bargaining agreement. The agreement, which has a term of six years, covers the wages, hours, benefits, and other terms and conditions of employment for the Company's UAW-represented employees at 14 U.S. facilities. The labor agreement included a lump sum ratification bonus payment of $8,500 per eligible employee, totaling $90 million, and an immediate wage increase of 10 percent plus further wage increases over the term of the contract. The lump sum payment was expensed in the first quarter of 2022.

The following table summarizes the operating profit impact, in millions of dollars, of the special items recorded for the three months ended January 30, 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Production & <br>Precision Ag | Small Ag <br>& Turf | Construction <br>& Forestry | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UAW ratification bonus – Cost of sales | $53  | $9  | $28  | $90  |

---

(**21) Subsequent Events**

In February 2023, the Company entered into two retail note securitization transactions. The first transaction resulted in $307 million of secured borrowings. The second transaction will result in $983 million of secured borrowings and is expected to settle in March 2023.

On February 22, 2023, the Company's Board of Directors declared a quarterly dividend of $1.25 per share payable on May 8, 2023, to stockholders of record on March 31, 2023.

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

RESULTS OF OPERATIONS

Overview

*Organization*

The Company generates net sales from the sale of equipment to John Deere dealers and distributors. The Company manufactures and distributes a full line of agricultural equipment; a variety of commercial and consumer equipment; and a broad range of equipment for construction, roadbuilding, and forestry. These operations (collectively known as the "equipment operations") are managed through the production and precision agriculture, small agriculture and turf, and construction and forestry operating segments. The Company's financial services segment provides credit services, which finance sales and leases of equipment by John Deere dealers. In addition, the financial services segment provides wholesale financing to dealers of the foregoing equipment, finances retail revolving charge accounts, and offers extended equipment warranties.

*Smart Industrial Operating Model and Leap Ambitions*

The Company's Smart Industrial operating model is focused on making significant investments, strengthening the Company's capabilities in digital, automation, autonomy, and alternative propulsion technologies. These technologies are intended to increase worksite efficiency, improve yields, lower input costs, and ease labor constraints. The Company's Leap Ambitions are goals designed to boost economic value and sustainability for the Company's customers. The Company anticipates opportunities in this area, as the Company and its customers have a vested interest in sustainable practices.

In February 2023, the Company released its 2022 Sustainability Report, available at JohnDeere.com/sustainability. This report identifies important progress on the Company's Leap Ambitions in fiscal year 2022. The information in our 2022 Sustainability Report is not incorporated by reference into, and does not form a part of, this Form 10-Q.

*Trends and Economic Conditions*

*Industry Trends for Fiscal Year 2023* – Industry sales of large agricultural machinery in the U.S. and Canada for 2023 are forecasted to increase 5 to 10 percent compared to 2022. Industry sales of small agricultural and turf equipment in the U.S. and Canada are expected to be down about 5 percent in 2023. Industry sales of agricultural machinery in Europe are forecasted to be flat to up 5 percent, while South American industry sales of tractors and combines are expected to be flat to up 5 percent in 2023. Asia industry sales are forecasted to be down moderately in 2023. On an industry basis, North American construction equipment and compact construction equipment sales are both expected to be flat to up 5 percent in 2023. Global forestry and global roadbuilding industry sales are each expected to be flat.

*Company Trends* – Customers' demand for integration of technology into equipment is a market trend underlying the Company's Smart Industrial operating model and Leap Ambitions framework. Customers have sought to improve profitability, productivity, and sustainability through technology. The Company's approach to technology involves hardware and software, guidance, connectivity and digital solutions, automation and machine intelligence, autonomy, and alternative propulsion technologies. This technology is incorporated into products within each of the Company's operating segments.

Customers continue to adopt technology integrated in the John Deere portfolio of "smart" machines, systems, and solutions. The Company expects this trend to persist for the foreseeable future.

Demand for the Company's equipment remains strong, as order books are full through a majority of 2023. Agricultural fundamentals are expected to remain solid into 2023, and retail demand will comprise most of 2023 sales. The North American retail customer fleet age of combines and large tractors remains above average, and dealer inventories are historically low due to the manufacturing and supply chain constraints over the past few years. The Company expects the replenishment of dealer stock inventory to occur in 2024. Crop prices remain favorable to our customers in part due to low stock-to-use ratios for key grains. The Company expects to sell more large agricultural equipment in 2023 than 2022 in North America, Europe, and South America. Demand for small agricultural equipment remains stable, while turf and utility equipment product sales are expected to be lower due to the overall U.S. economic conditions. Construction equipment markets are forecasted to be steady. Rental fleets replenishment, the energy industry, and U.S. infrastructure spend are expected to offset moderation in residential

home construction. Roadbuilding demand remains strongest in the U.S., largely offset by softening demand in Europe and parts of Asia. Net income for the Company's financial services operations is expected to be lower than fiscal year 2022 due to less-favorable financing spreads as a result of heightened interest rates, higher selling, administrative and general expenses, and lower gains on operating-lease dispositions, partially offset by higher average portfolio balances.

*Additional Trends* – The Company experienced supply chain disruptions and inflationary pressures in 2022. These trends continued into 2023. While these are two distinct issues and discussed separately below, their impact may be intertwined.

Supply chain disruptions impacted many aspects of the business, including parts availability, increased production costs, and higher inventory levels. Past due deliveries from suppliers were at elevated levels during 2022. Although past due deliveries remain elevated, the Company experienced improvement during the first quarter of 2023. The reduction in supply chain disruptions contributed to higher levels of production. The Company implemented the following mitigation efforts to minimize the impact of supply chain disruptions on its ability to meet customer demand:

• Worked with the supply base to obtain allocations and improve on-time deliveries of parts.

• Multi-sourced some parts and materials.

• Provided resources to suppliers to address constraints.

• Entered into long-term contracts for some critical components.

• Utilized alternative freight carriers to expedite delivery.

While supply chain disruptions are expected to persist into 2023, the Company is working diligently to secure the parts and components that customers need to deliver essential food and infrastructure more profitably and sustainably. Although the Company experienced some improvement in this area during the first quarter of 2023, concerns remain and this issue could impact our ability to meet customer demand in the remainder of 2023.

Inflation has continued to be a pervasive feature in 2023, increasing the cost of purchased components, energy, salaries, and wages. Higher costs due to general business inflation were offset by price realization, which mitigated the impact of inflation on the Company's operating results. The Company expects inflation to continue in 2023 resulting in higher costs. If customers are unwilling to accept increases in cost of John Deere products, or the Company is otherwise unable to offset increases in production costs, inflation could have an adverse effect on the Company's operations and financial condition.

Central bank policy interest rates increased in the first quarter of 2023 and are projected to continue to increase during 2023 but at a moderating pace compared to 2022. Most retail receivables are fixed rate, while wholesale financing receivables are floating rate. The Company has both fixed and floating rate borrowings. The Company manages the risk of interest rate fluctuations by balancing the types and amounts of its funding sources to its financing receivable and equipment on operating lease portfolios. Accordingly, the Company enters into interest rate swap agreements to manage its interest rate exposure. Historically, rising interest rates impact the Company's borrowings sooner than the benefit is realized from the financing receivable and equipment on operating lease portfolios. As a result, the Company's financial services operations experienced $53 million (after-tax) of less favorable financing spreads in the first quarter of 2023 compared to 2022. The Company expects spread compression to persist during 2023.

Supply chain disruptions, inflationary pressures, and rising interest rates are driven by factors outside of the Company's control, and as a result, the Company cannot reasonably foresee when these conditions will subside.

*Items of Concern and Uncertainties* – Other items of concern include global and regional political conditions, economic and trade policies, imposition of new or retaliatory tariffs against certain countries or covering certain products, post-pandemic effects, capital market disruptions, changes in demand and pricing for new and used equipment, significant fluctuations in foreign currency exchange rates, and volatility in the prices of many commodities. These items could impact the Company's results. The Company is making investments in technology and in strengthening its capabilities in digital, automation, autonomy, and alternative propulsion technologies. As with most technology investments, marketplace adoption and monetization of these features holds an elevated level of uncertainty.

2023 Compared with 2022

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| | | |
|:---|:---|:---|
|  | Three Months Ended | Three Months Ended |
| **Deere & Company** | January 29  | January 30  |
| (In millions of dollars, except per share amounts) | 2023 | 2022 |
| Net sales and revenues | $12652  | $9569 |
| Net income attributable to Deere & Company | 1959  | 903 |
| Diluted earnings per share | 6.55  | 2.92  |

---

Net income in the first quarter of 2022 was impacted by special items. See Note 20 for additional details. The discussion of net sales and operating profit is included in the Business Segment Results below.

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

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| | | | |
|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Three Months Ended |
| **Deere & Company** | January 29  | January 30  |  |
| (In millions of dollars) | 2023 | 2022 | % Change |
| Cost of sales to net sales | 69.6% | 78.5% |  |
| Other income | $256  | $238 | +8 |
| Research and development expenses | 495  | 402 | +23 |
| Selling, administrative and general expenses | 952  | 781 | +22 |
| Other operating expenses | 299  | 311 | -4 |
| Provision for income taxes | 537  | 250 | +115 |

---

The cost of sales ratio decreased due to price realization, partially offset by higher production costs. Inefficiencies due to the delayed ratification of the UAW labor agreement and contract-ratification bonus costs affected the prior period cost of sales ratio (see Note 20). Research and development expenses were higher due to continued focus on developing and incorporating technology solutions. Selling, administrative and general expenses increased mostly due to higher employee pay driven by inflationary conditions and profit-sharing incentives. The provision for income taxes was higher as a result of higher pretax income.

Business Segment Results

For the equipment operations, higher production costs were mostly due to elevated cost of purchased components, energy, salaries, and wages.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |
| **Production and Precision Agriculture** | January 29  | January 29  | January 30  | January 30  |  |
| (In millions of dollars) | 2023 | 2023 | 2022 | 2022 | % Change |
| Net sales | $| 5198  | $| 3356  | +55 |
| Operating profit |  | 1208  |  | 296  | +308 |
| Operating margin |  | 23.2% |  | 8.8% |  |
| Price realization |  |  |  |  | +22 |
| Currency translation |  |  |  |  | -1 |

---

Production and precision agriculture sales increased for the quarter as a result of higher shipment volumes (primarily in the U.S., Canada, and Latin America) and price realization in most end markets. Operating profit improved primarily due to price realization and improved shipment volume / mix as a result of improved supply chain conditions. These items were partially offset by higher production costs and increased selling, administrative and general expenses and research and development expenses. The UAW contract-ratification bonus costs affected the prior period.

![Graphic](de-20230129x10q005.jpg)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |
| **Small Agriculture and Turf** | January 29  | January 29  | January 30  | January 30  |  |
| (In millions of dollars) | 2023 | 2023 | 2022 | 2022 | % Change |
| Net sales | $| 3001  | $| 2631  | +14 |
| Operating profit |  | 447  |  | 371  | +20 |
| Operating margin |  | 14.9% |  | 14.1% |  |
| Price realization |  |  |  |  | +11 |
| Currency translation |  |  |  |  | -4 |

---

Small agriculture and turf sales increased for the quarter due to price realization in most end markets and higher shipment volumes (primarily in the U.S., Canada, India, and Mexico), partially offset by the negative effects of foreign currency translation mostly due to a stronger U.S. dollar. Operating profit improved primarily as a result of price realization and improved shipment volumes due to improved supply chain conditions. These items were partially offset by higher production costs, increased selling, administrative and general expenses and research and development expenses, and the unfavorable effects of foreign currency exchange.

![Graphic](de-20230129x10q006.jpg)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |
| **Construction and Forestry** | January 29  | January 29  | January 30  | January 30  |  |
| (In millions of dollars) | 2023 | 2023 | 2022 | 2022 | % Change |
| Net sales | $| 3203  | $| 2544 | +26 |
| Operating profit |  | 625  |  | 272 | +130 |
| Operating margin |  | 19.5% |  | 10.7% |  |
| Price realization |  |  |  |  | +13 |
| Currency translation |  |  |  |  | -3 |

---

Construction and forestry sales moved higher for the quarter primarily due to higher shipment volumes (primarily in the U.S. and Brazil) and price realization, partially offset by the negative effects of foreign currency translation from a stronger U.S. dollar. Operating profit improved due to price realization and improved shipment volumes as a result of improved supply chain conditions, partially offset by higher production costs. The UAW contract-ratification bonus costs affected the prior period.

![Graphic](de-20230129x10q007.jpg)

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| | | | |
|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Three Months Ended |
| **Financial Services** | January 29  | January 30  |  |
| (In millions of dollars) | 2023 | 2022 | % Change |
| Revenue (including intercompany) | $1244  | $916  | +36 |
| Interest expense | 442  | 158  | +180 |
| Net income | 185  | 231  | -20 |

---

The average balance of receivables and leases financed was 15 percent higher in the first three months of 2023, compared with the same period last year. Revenue also increased due to higher average financing rates. Interest expense increased in the first quarter of 2023 as a result of higher average borrowing rates and higher average borrowings. Net income for the quarter decreased mainly due to less favorable financing spreads as a result of heightened interest rates, higher selling, administrative and general expenses, and lower gains on operating lease dispositions, partially offset by income earned on higher average portfolio balances.

Critical Accounting Estimates

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

CAPITAL RESOURCES AND LIQUIDITY

*Sources of Liquidity, Key Metrics and Balance Sheet Data*

The Company has access to most global markets at a reasonable cost. Sources of liquidity for the Company include cash and cash equivalents, marketable securities, funds from operations, the issuance of commercial paper and term debt, the securitization of retail notes (both public and private markets), and bank lines of credit. The Company closely monitors its liquidity sources against the cash requirements and expects to have sufficient sources of global funding and liquidity to meet its funding needs in the short term (next 12 months) and long term (beyond 12 months). The Company operates in multiple industries, which have different funding requirements. The production and precision agriculture, small agriculture and turf, and construction and forestry segments are capital intensive and are typically subject to seasonal variations in financing requirements for inventories and certain receivables from dealers. However, the patterns of seasonality in inventory have been affected by increases in production rates and supply chain disruptions experienced during fiscal year 2022, which continue to impact inventory levels during 2023. The financial services operations rely on their ability to raise substantial amounts of funds to finance their receivable and lease portfolios.

Key metrics are provided in the following table, in millions of dollars:

---

| | | | |
|:---|:---|:---|:---|
|  | January 29 <br>2023 | October 30<br>2022 | January 30 <br>2022 |
| Cash, cash equivalents, and marketable securities | $4828  | $5508  | $5207  |
| Trade accounts and notes receivable – net | 7609  | 6410  | 4855  |
| *Ratio to prior 12 month's net sales* | 15% | 13% | 12% |
| Inventories | 10056  | 8495  | 7935  |
| *Ratio to prior 12 month's cost of sales* | 27% | 24% | 26% |
| Unused credit lines | 1581  | 3284  | 5865  |
| Financial Services: |  |  |  |
| Ratio of interest-bearing debt to stockholder's equity | 8.2 to 1 | 8.5 to 1 | 7.4 to 1 |

---

The reduction in unused credit lines in 2023 compared to both prior periods relates to an increase in commercial paper outstanding to support working capital requirements. The Company forecasts higher operating cash flows in 2023 driven by an increase in net income adjusted for non-cash provisions and a favorable change in working capital.

There have been no material changes to the contractual and other cash requirements identified in the Company's most recently issued Annual Report on Form 10-K.

*Cash Flows*

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| | | |
|:---|:---|:---|
|  | Three Months Ended  | Three Months Ended  |
| (In millions of dollars) | January 29, 2023 | January 30, 2022 |
| Net cash used for operating activities | $(1246) | $(2553) |
| Net cash provided by investing activities | 760  | 648  |
| Net cash used for financing activities | (339) | (1577) |
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 62  | (74) |
| Net decrease in cash, cash equivalents, and restricted cash | $(763) | $(3556) |

---

Cash outflows from consolidated operating activities in the first three months of 2023 were $1,246 million. This resulted mainly from a working capital change, partially offset by net income adjusted for non-cash provisions. Cash inflows from investing activities were $760 million in the first three months of this year. The primary drivers were collections of receivables (excluding receivables related to sales) exceeding the cost of receivables acquired and a change in collateral on derivatives – net, partially offset by purchases of property and equipment. Cash outflows from financing activities were $339 million in the first three months of 2023. Cash, cash equivalents, and restricted cash decreased by $763 million during the first three months of this year.

*Trade Accounts and Notes Receivable* – Trade accounts and notes receivable arise from sales of goods to customers. Trade receivables increased by $1,199 million during the first three months of 2023, mostly due to a seasonal increase. These receivables increased $2,754 million, compared to a year ago, due to higher shipment volumes. The

percentage of total worldwide trade receivables outstanding for periods exceeding 12 months was 1 percent at each of January 29, 2023, October 30, 2022, and January 30, 2022.

*Financing Receivables and Equipment on Operating Leases* – Financing receivables and equipment on operating leases consist of retail notes originated in connection with financing of new and used equipment, operating leases, revolving charge accounts, sales-type and direct financing leases, and wholesale notes. Financing receivables and equipment on operating leases decreased by $720 million during the first quarter of 2023, primarily due to seasonal payments, and increased by $5,142 million in the past 12 months, due to strong retail sales. Total acquisition volumes of financing receivables and equipment on operating leases were 31 percent higher in the first three months of 2023, compared with the same period last year, as volumes of wholesale notes, operating leases, retail notes, and revolving charge accounts were higher, while finance leases were lower compared to January 30, 2022.

*Inventories* – Inventories increased by $1,561 million during the first three months, primarily due to a seasonal increase. Inventories increased $2,121 million, compared to a year ago, due to higher forecasted shipment volumes and supply chain disruptions, partially offset by the effect of foreign currency translation. A majority of these inventories are valued on the last-in, first-out (LIFO) method.

*Property and Equipment* – Property and equipment cash expenditures in the first three months of 2023 were $315 million, compared with $193 million in the same period last year. Capital expenditures in 2023 are estimated to be approximately $1,400 million.

*Accounts Payable and Accrued Expenses* – Decreased by $1,714 million in the first three months of 2023, primarily due to a decrease in accrued expenses associated with dealer sales discounts, employee benefits, and derivative liabilities. Accounts payable and accrued expenses increased $2,457 million compared to a year ago, due to an increase in accrued expenses associated with derivative liabilities, accrued taxes, and employee benefits, and an increase in accounts payable associated with trade payables.

*Borrowings* – Total external borrowings increased by $2,165 million in the first three months of 2023 and increased $6,754 million compared to a year ago, generally corresponding with the level of the receivable and the lease portfolio, as well as other working capital requirements.

John Deere Capital Corporation (Capital Corporation), a U.S. financial services subsidiary, has a revolving warehouse facility to utilize bank conduit facilities to securitize retail notes (see Note 9). The facility was renewed in November 2022 with an expiration in November 2023 and increased the total capacity or "financing limit" from $1,000 million to $1,500 million. At January 29, 2023, $786 million of securitization borrowings were outstanding under the facility. At the end of the contractual revolving period, unless the banks and Capital Corporation agree to renew, Capital Corporation would liquidate the secured borrowings over time as payments on the retail notes are collected.

In the first three months of 2023, the financial services operations retired $849 million of retail note securitization borrowings, which are presented in "Increase (decrease) in total short-term borrowings."

*Lines of Credit* – The Company also has access to bank lines of credit with various banks throughout the world. Worldwide lines of credit totaled $8,327 million at January 29, 2023, $1,581 million of which were unused. For the purpose of computing unused credit lines, commercial paper and short-term bank borrowings, excluding secured borrowings and the current portion of long-term borrowings, were considered to constitute utilization. Included in the total credit lines at January 29, 2023 was a 364-day credit facility agreement of $3,000 million, expiring in the second quarter of 2023. In addition, total credit lines included long-term credit facility agreements of $2,500 million, expiring in the second quarter of 2026, and $2,500 million, expiring in the second quarter of 2027. These credit agreements require Capital Corporation and other parts of the Company to maintain certain performance metrics and liquidity targets. The Company expects to extend the terms of these credit facilities. All of these requirements of the credit agreements have been met during the periods included in the financial statements.

*Debt Ratings* – To access public debt capital markets, the Company relies on credit rating agencies to assign short-term and long-term credit ratings to the Company's securities as an indicator of credit quality for fixed income investors. A security rating is not a recommendation by the rating agency to buy, sell, or hold Company securities. A credit rating agency may change or withdraw ratings based on its assessment of the Company's current and future ability to meet interest and principal repayment obligations. Each agency's rating should be evaluated independently of any other rating. Lower credit ratings generally result in higher borrowing costs, including costs of derivative transactions, and reduced access to debt capital markets. The senior long-term and short-term debt ratings and

outlook currently assigned to unsecured Company securities by the rating agencies engaged by the Company are as follows:

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| | | | |
|:---|:---|:---|:---|
|  | Senior<br>Long-Term | <br>Short-Term | <br>Outlook |
| Fitch Ratings | A+ | F1 | Stable |
| Moody's Investors Service, Inc. | A2 | Prime-1 | Positive |
| Standard & Poor's | A | A-1 | Stable |

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Forward-Looking Statements

Certain statements contained herein, including in the section entitled "Overview" 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 could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:

&nbsp;&nbsp;&nbsp;&nbsp;● changes in U.S. and international laws, regulations, and policies relating to trade, spending, taxing, banking, monetary, environmental (including climate change and engine emission), and farming policies;

&nbsp;&nbsp;&nbsp;&nbsp;● political, economic, and social instability of the geographies in which the Company operates;

&nbsp;&nbsp;&nbsp;&nbsp;● wars and other conflicts, including the current conflict between Russia and Ukraine, and natural disasters;

&nbsp;&nbsp;&nbsp;&nbsp;● adverse macroeconomic conditions, including unemployment, inflation, rising interest rates, changes in consumer practices due to slower economic growth or possible recession, and liquidity constraints;

&nbsp;&nbsp;&nbsp;&nbsp;● growth and sustainability of non-food uses for crops (including ethanol and biodiesel production);

&nbsp;&nbsp;&nbsp;&nbsp;● the Company's ability to execute business strategies, including the Company's Smart Industrial operating model, Leap Ambitions, and mergers and acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;● the ability to understand and meet its customers' changing expectations and demand for John Deere products;

&nbsp;&nbsp;&nbsp;&nbsp;● accurately forecasting customer demand for products and services and adequately managing inventory;

&nbsp;&nbsp;&nbsp;&nbsp;● changes to governmental communications channels (radio frequency technology);

&nbsp;&nbsp;&nbsp;&nbsp;● gaps or limitations in rural broadband coverage, capacity, and speed needed to support technology solutions;

&nbsp;&nbsp;&nbsp;&nbsp;● the Company's ability to adapt in highly competitive markets;

&nbsp;&nbsp;&nbsp;&nbsp;● dealer practices and their ability to manage distribution of John Deere products and support and service precision technology solutions;

&nbsp;&nbsp;&nbsp;&nbsp;● changes in climate patterns and unfavorable weather events;

&nbsp;&nbsp;&nbsp;&nbsp;● higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for our products;

&nbsp;&nbsp;&nbsp;&nbsp;● changes in the Company's credit ratings, and failure to comply with financial covenants in credit agreements could impact access to funding;

&nbsp;&nbsp;&nbsp;&nbsp;● availability and price of raw materials, components, and whole goods;

&nbsp;&nbsp;&nbsp;&nbsp;● delays or disruptions in the Company's supply chain;

&nbsp;&nbsp;&nbsp;&nbsp;● labor relations and contracts, including work stoppages and other disruptions;

&nbsp;&nbsp;&nbsp;&nbsp;● the ability to attract, develop, engage, and retain qualified personnel;

&nbsp;&nbsp;&nbsp;&nbsp;● security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of the Company and its products;

&nbsp;&nbsp;&nbsp;&nbsp;● loss of or challenges to intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;● compliance with evolving U.S. and foreign laws, including economic sanctions, data privacy, and environmental laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;● legislation introduced or enacted that could affect the Company's business model and intellectual property, such as so-called right to repair or right to modify legislation;

&nbsp;&nbsp;&nbsp;&nbsp;● investigations, claims, lawsuits, or other legal proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;● events that damage the Company's reputation or brand;

&nbsp;&nbsp;&nbsp;&nbsp;● world grain stocks, available farm acres, soil conditions, harvest yields, prices for commodities and livestock, input costs (e.g., fertilizer), and availability of transport for crops; and

&nbsp;&nbsp;&nbsp;&nbsp;● 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 Company's financial results, is included in the Company's other filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of our Annual Report on Form 10-K).

Supplemental Consolidating Information

The supplemental consolidating data presented on the subsequent pages is presented for informational purposes. The equipment operations represents the enterprise without financial services. The equipment operations includes the Company's production and precision agriculture operations, small agriculture and turf operations, construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within financial services. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidated financial statements.

The equipment operations and financial services participate in different industries. The equipment operations primarily generate earnings and cash flows by manufacturing and selling equipment, service parts, and technology solutions to dealers and retail customers. Financial services finances sales and leases by dealers of new and used equipment that is largely manufactured by the Company. Those earnings and cash flows generally are the difference between the finance income received from customer payments less interest expense, and depreciation on equipment subject to an operating lease. The two businesses are capitalized differently and have separate performance metrics. The supplemental consolidating data is also used by management due to these differences.

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY |
| SUPPLEMENTAL CONSOLIDATING DATA | SUPPLEMENTAL CONSOLIDATING DATA | SUPPLEMENTAL CONSOLIDATING DATA | SUPPLEMENTAL CONSOLIDATING DATA | SUPPLEMENTAL CONSOLIDATING DATA | SUPPLEMENTAL CONSOLIDATING DATA | SUPPLEMENTAL CONSOLIDATING DATA | SUPPLEMENTAL CONSOLIDATING DATA | SUPPLEMENTAL CONSOLIDATING DATA |
| STATEMENTS OF INCOME | STATEMENTS OF INCOME | STATEMENTS OF INCOME | STATEMENTS OF INCOME | STATEMENTS OF INCOME | STATEMENTS OF INCOME | STATEMENTS OF INCOME | STATEMENTS OF INCOME | STATEMENTS OF INCOME |
| For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 |
| (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited |
|  | EQUIPMENT | EQUIPMENT | FINANCIAL | FINANCIAL |  |  |  |  |
|  | OPERATIONS | OPERATIONS | SERVICES | SERVICES | ELIMINATIONS | ELIMINATIONS | CONSOLIDATED | CONSOLIDATED |
|  | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| **Net Sales and Revenues** |  |  |  |  |  |  |  |  |
| Net sales | $11402  | $8531  |  |  |  |  | $11402  | $8531  |
| Finance and interest income | 114  | 34  | $1067  | $829  | $(187) | $(63) | 994  | 800 <br><sup>1</sup>  |
| Other income | 234  | 217  | 177  | 87  | (155) | (66) | 256  | 238 <br><sup>2, 3</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 11750  | 8782  | 1244  | 916  | (342) | (129) | 12652  | 9569  |
| **Costs and Expenses** |  |  |  |  |  |  |  |  |
| Cost of sales | 7940  | 6696  |  |  | (6) | (1) | 7934  | 6695 <br><sup>4</sup>  |
| Research and development expenses | 495  | 402  |  |  |  |  | 495  | 402  |
| Selling, administrative and general expenses | 783  | 657  | 172  | 126  | (3) | (2) | 952  | 781 <br><sup>4</sup>  |
| Interest expense | 101  | 90  | 442  | 158  | (64) | (19) | 479  | 229 <br><sup>5</sup>  |
| Interest compensation to Financial Services | 123  | 44  |  |  | (123) | (44)<br><sup>5</sup>  |  |  |
| Other operating expenses | 53  | 39  | 392  | 335  | (146) | (63) | 299  | 311 <br><sup>6, 7</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 9495  | 7928  | 1006  | 619  | (342) | (129) | 10159  | 8418  |
| **Income before Income Taxes** | 2255  | 854  | 238  | 297  |  |  | 2493  | 1151  |
| Provision for income taxes | 483  | 182  | 54  | 68  |  |  | 537  | 250  |
| **Income after Income Taxes** | 1772  | 672  | 184  | 229  |  |  | 1956  | 901  |
| Equity in income of unconsolidated affiliates |  | 1  | 1  | 2  |  |  | 1  | 3  |
| **Net Income** | 1772  | 673  | 185  | 231  |  |  | 1957  | 904  |
| Less: Net income (loss) attributable to noncontrolling interests | (2) | 1  |  |  |  |  | (2) | 1  |
| **Net Income Attributable to Deere & Company** | $1774  | $672  | $185  | $231  |  |  | $1959  | $903  |

---

<sup>1</sup> Elimination of financial services' interest income earned from equipment operations.

<sup>2</sup> Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.

<sup>3</sup> Elimination of financial services' income related to intercompany guarantees of investments in certain international markets and intercompany service revenue.

<sup>4</sup> Elimination of intercompany service fees.

<sup>5</sup> Elimination of equipment operations' interest expense to financial services.

<sup>6</sup> Elimination of financial services' lease depreciation expense related to inventory transferred to equipment on operating leases.

<sup>7</sup> Elimination of equipment operations' expense related to intercompany guarantees of investments in certain international markets and intercompany service expenses.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY |
| SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) |
| CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS |
| (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited |
|  | EQUIPMENT | EQUIPMENT | EQUIPMENT | FINANCIAL | FINANCIAL | FINANCIAL |  |  |  |  |  |  |
|  | OPERATIONS | OPERATIONS | OPERATIONS | SERVICES | SERVICES | SERVICES | ELIMINATIONS | ELIMINATIONS | ELIMINATIONS | CONSOLIDATED | CONSOLIDATED | CONSOLIDATED |
|  | Jan 29  | Oct 30 | Jan 30  | Jan 29  | Oct 30 | Jan 30  | Jan 29  | Oct 30 | Jan 30  | Jan 29  | Oct 30 | Jan 30  |
|  | 2023 | 2022 | 2022 | 2023 | 2022 | 2022 | 2023 | 2022 | 2022 | 2023 | 2022 | 2022 |
| **Assets** |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash and cash equivalents | $2665  | $3767  | $3596  | $1311  | $1007  | $876  |  |  |  | $3976  | $4774  | $4472  |
| Marketable securities | 18  | 61  | 2  | 834  | 673  | 733  |  |  |  | 852  | 734  | 735  |
| Receivables from Financial Services | 5348  | 6569  | 5307  |  |  |  | $(5348) | $(6569) | $(5307)<br><sup>8</sup>  |  |  |  |
| Trade accounts and notes receivable – net | 1342  | 1273  | 996  | 7827  | 6434  | 4843  | (1560) | (1297) | (984) | 7609  | 6410  | 4855 <br><sup>9</sup>  |
| Financing receivables – net | 51  | 47  | 56  | 36831  | 36587  | 33135  |  |  |  | 36882  | 36634  | 33191  |
| Financing receivables securitized – net |  |  | 9  | 5089  | 5936  | 3507  |  |  |  | 5089  | 5936  | 3516  |
| Other receivables | 1583  | 1670  | 1818  | 489  | 832  | 153  | (80) | (10) | (35) | 1992  | 2492  | 1936 <br><sup>9</sup>  |
| Equipment on operating leases – net |  |  |  | 6502  | 6623  | 6624  |  |  |  | 6502  | 6623  | 6624  |
| Inventories | 10056  | 8495  | 7935  |  |  |  |  |  |  | 10056  | 8495  | 7935  |
| Property and equipment – net | 6178  | 6021  | 5629  | 34  | 35  | 36  |  |  |  | 6212  | 6056  | 5665  |
| Goodwill | 3891  | 3687  | 3192  |  |  |  |  |  |  | 3891  | 3687  | 3192  |
| Other intangible assets – net | 1255  | 1218  | 1209  |  |  |  |  |  |  | 1255  | 1218  | 1209  |
| Retirement benefits | 3728  | 3666  | 3095  | 67  | 66  | 65  | (2) | (2) | (2) | 3793  | 3730  | 3158 <br><sup>10</sup>  |
| Deferred income taxes | 1015  | 940  | 1095  | 53  | 45  | 50  | (154) | (161) | (222) | 914  | 824  | 923 <br><sup>11</sup>  |
| Other assets | 1936  | 1794  | 1730  | 684  | 626  | 477  | (23) | (3) | (4) | 2597  | 2417  | 2203 <br><sup>9</sup>  |
| **Total Assets** | $39066  | $39208  | $35669  | $59721  | $58864  | $50499  | $(7167) | $(8042) | $(6554) | $91620  | $90030  | $79614  |
| **Liabilities and Stockholders' Equity** |  |  |  |  |  |  |  |  |  |  |  |  |
| **Liabilities** |  |  |  |  |  |  |  |  |  |  |  |  |
| Short-term borrowings | $969  | $1040  | $1516  | $13160  | $11552  | $9474  |  |  |  | $14129  | $12592  | $10990  |
| Short-term securitization borrowings |  |  | 8  | 4864  | 5711  | 3474  |  |  |  | 4864  | 5711  | 3482  |
| Payables to Equipment Operations |  |  |  | 5348  | 6569  | 5307  | $(5348) | $(6569) | $(5307)<br><sup>8</sup>  |  |  |  |
| Accounts payable and accrued expenses | 11819  | 12962  | 9704  | 2952  | 3170  | 1970  | (1663) | (1310) | (1023) | 13108  | 14822  | 10651 <br><sup>9</sup>  |
| Deferred income taxes | 404  | 380  | 425  | 269  | 276  | 353  | (154) | (161) | (222) | 519  | 495  | 556 <br><sup>11</sup>  |
| Long-term borrowings | 8155  | 7917  | 8760  | 26916  | 25679  | 24078  |  |  |  | 35071  | 33596  | 32838  |
| Retirement benefits and other liabilities | 2384  | 2351  | 3182  | 111  | 108  | 109  | (2) | (2) | (2) | 2493  | 2457  | 3289 <br><sup>10</sup>  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 23731  | 24650  | 23595  | 53620  | 53065  | 44765  | (7167) | (8042) | (6554) | 70184  | 69673  | 61806  |
| Commitments and contingencies (Note 16) |  |  |  |  |  |  |  |  |  |  |  |  |
| Redeemable noncontrolling interest | 100  | 92  |  |  |  |  |  |  |  | 100  | 92  |  |
| **Stockholders' Equity** |  |  |  |  |  |  |  |  |  |  |  |  |
| Total Deere & Company stockholders' equity | 21332  | 20262  | 17804  | 6101  | 5799  | 5734  | (6101) | (5799) | (5734) | 21332  | 20262  | 17804 <br><sup>12</sup>  |
| Noncontrolling interests | 4  | 3  | 4  |  |  |  |  |  |  | 4  | 3  | 4  |
| Financial Services' equity | (6101) | (5799) | (5734) |  |  |  | 6101  | 5799  | 5734  |  |  | <br><sup>12</sup>  |
| &nbsp;&nbsp;Adjusted total stockholders' equity | 15235  | 14466  | 12074  | 6101  | 5799  | 5734  |  |  |  | 21336  | 20265  | 17808  |
| **Total Liabilities and Stockholders' Equity** | $39066  | $39208  | $35669  | $59721  | $58864  | $50499  | $(7167) | $(8042) | $(6554) | $91620  | $90030  | $79614  |

---

<sup>8</sup> Elimination of receivables / payables between equipment operations and financial services.

<sup>9</sup> Primarily reclassification of sales incentive accruals on receivables sold to financial services.

<sup>10</sup> Reclassification of net pension assets / liabilities.

<sup>11</sup> Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.

<sup>12</sup> Elimination of financial services' equity.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY | DEERE & COMPANY |
| SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) | SUPPLEMENTAL CONSOLIDATING DATA (Continued) |
| STATEMENTS OF CASH FLOWS | STATEMENTS OF CASH FLOWS | STATEMENTS OF CASH FLOWS | STATEMENTS OF CASH FLOWS | STATEMENTS OF CASH FLOWS | STATEMENTS OF CASH FLOWS | STATEMENTS OF CASH FLOWS | STATEMENTS OF CASH FLOWS | STATEMENTS OF CASH FLOWS |
| For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 | For the Three Months Ended January 29, 2023 and January 30, 2022 |
| (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited | (In millions of dollars) Unaudited |
|  | EQUIPMENT | EQUIPMENT | FINANCIAL | FINANCIAL |  |  |  |  |
|  | OPERATIONS | OPERATIONS | SERVICES | SERVICES | ELIMINATIONS | ELIMINATIONS | CONSOLIDATED | CONSOLIDATED |
|  | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| **Cash Flows from Operating Activities** |  |  |  |  |  |  |  |  |
| Net income | $1772  | $673  | $185  | $231  |  |  | $1957  | $904  |
| Adjustments to reconcile net income to net cash provided by (used for) operating activities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) for credit losses | 1  | (2) | (131) | 2  |  |  | (130) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for depreciation and amortization | 279  | 257  | 252  | 266  | $(37) | $(37) | 494  | 486 <br><sup>13</sup>  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense |  |  |  |  | 23  | 18  | 23  | 18 <br><sup>14</sup>  |
| &nbsp;&nbsp;&nbsp;&nbsp;Distributed earnings of Financial Services | 3  | 42  |  |  | (3) | (42)<br><sup>15</sup>  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) for deferred income taxes | (39) | 223  | (17) | (13) |  |  | (56) | 210  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade, notes, and financing receivables related to sales | (23) | 158  |  |  | (992) | (264) | (1015) | (106)<br><sup>16, 18, 19</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (1254) | (1277) |  |  | (25) | (20) | (1279) | (1297)<br><sup>17</sup>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (1458) | (1346) | 145  | (66) | (264) | (142) | (1577) | (1554)<br><sup>18</sup>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued income taxes payable/receivable | 192  | (192) | 7  | 8  |  |  | 199  | (184) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement benefits | (49) | (1012) | 1  | 2  |  |  | (48) | (1010) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 17  | (12) | 163  | (19) | 6  | 11  | 186  | (20)<br><sup>13, 14, 17</sup> |
| &nbsp;&nbsp;Net cash provided by (used for) operating activities | (559) | (2488) | 605  | 411  | (1292) | (476) | (1246) | (2553) |
| **Cash Flows from Investing Activities** |  |  |  |  |  |  |  |  |
| Collections of receivables (excluding receivables related to sales) |  |  | 7495  | 6845  | (297) | (410) | 7198  | 6435 <br><sup>16</sup>  |
| Proceeds from sales of equipment on operating leases |  |  | 497  | 479  |  |  | 497  | 479  |
| Cost of receivables acquired (excluding receivables related to sales) |  |  | (6375) | (5719) | 53  | 116  | (6322) | (5603)<br><sup>16</sup>  |
| Acquisitions of businesses, net of cash acquired |  | (24) |  |  |  |  |  | (24) |
| Purchases of property and equipment | (315) | (193) |  |  |  |  | (315) | (193) |
| Cost of equipment on operating leases acquired |  |  | (531) | (419) | 34  | 28  | (497) | (391)<br><sup>17</sup>  |
| Increase in trade and wholesale receivables |  |  | (1499) | (684) | 1499  | 684 <br><sup>16</sup>  |  |  |
| Collateral on derivatives – net |  | 4  | 345  | (17) |  |  | 345  | (13) |
| Other | (9) | (22) | (137) | (36) |  | 16  | (146) | (42)<br><sup>19</sup>  |
| &nbsp;&nbsp;Net cash provided by (used for) investing activities | (324) | (235) | (205) | 449  | 1289  | 434  | 760  | 648  |
| **Cash Flows from Financing Activities** |  |  |  |  |  |  |  |  |
| Increase (decrease) in total short-term borrowings | (136) | 123  | 833  | (1141) |  |  | 697  | (1018) |
| Change in intercompany receivables/payables | 1469  | 150  | (1469) | (150) |  |  |  |  |
| Proceeds from long-term borrowings | 1  | 18  | 2504  | 2335  |  |  | 2505  | 2353  |
| Payments of long-term borrowings |  | (124) | (1925) | (1816) |  |  | (1925) | (1940) |
| Proceeds from issuance of common stock | 21  | 11  |  |  |  |  | 21  | 11  |
| Repurchases of common stock | (1257) | (623) |  |  |  |  | (1257) | (623) |
| Dividends paid | (341) | (327) | (3) | (42) | 3  | 42  | (341) | (327)<br><sup>15</sup>  |
| Other | (27) | (22) | (12) | (11) |  |  | (39) | (33) |
| &nbsp;&nbsp;Net cash used for financing activities | (270) | (794) | (72) | (825) | 3  | 42  | (339) | (1577) |
| **Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash** | 48  | (75) | 14  | 1  |  |  | 62  | (74) |
| **Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash** | (1105) | (3592) | 342  | 36  |  |  | (763) | (3556) |
| **Cash, Cash Equivalents, and Restricted Cash at Beginning of Period** | 3781  | 7200  | 1160  | 925  |  |  | 4941  | 8125  |
| **Cash, Cash Equivalents, and Restricted Cash at End of Period** | $2676  | $3608  | $1502  | $961  |  |  | $4178  | $4569  |
| **Components of cash, cash equivalents, and restricted cash** |  |  |  |  |  |  |  |  |
| Cash and cash equivalents | $2665  | $3596  | $1311  | $876  |  |  | $3976  | $4472  |
| Restricted cash (Other assets) | 11  | 12  | 191  | 85  |  |  | 202  | 97  |
| **Total cash, cash equivalents, and restricted cash**  | $2676  | $3608  | $1502  | $961  |  |  | $4178  | $4569  |

---

<sup>13</sup> Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.

<sup>14</sup> Reclassification of share-based compensation expense.

<sup>15</sup> Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations' operating activities.

<sup>16</sup> Primarily reclassification of receivables related to the sale of equipment.

<sup>17</sup> Reclassification of direct lease agreements with retail customers.

<sup>18</sup> Reclassification of sales incentive accruals on receivables sold to financial services.

<sup>19</sup> Elimination and reclassification of the effects of financial services partial financing of the construction and forestry retail locations sales and subsequent collection of those amounts.

&nbsp;&nbsp;&nbsp;&nbsp;

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

See the Company's most recently filed Annual Report on Form 10-K (Part II, Item 7A). There has been no material change in this information.

Item 4. CONTROLS AND PROCEDURES

The Company's principal executive officer and its principal financial officer have concluded that the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act)) were effective as of January 29, 2023, based on the evaluation of these controls and procedures required by Rule 13a-15(b) or 15d-15(b) of the Exchange Act. During the first quarter of 2023, there were no changes that have materially affected or are reasonably likely to materially affect the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is subject to various unresolved legal actions which arise in the normal course of its business, the most prevalent of which relate to product liability (including asbestos-related liability), retail credit, employment, patent, trademark, and antitrust matters. The Company believes the reasonably possible range of losses for these unresolved legal actions would not have a material effect on its consolidated financial statements.

Item 1A. Risk Factors

See the Company's most recently filed Annual Report on Form 10-K (Part I, Item 1A). There has been no material change in this information. The risks described in the Annual Report on Form 10-K, and the "Forward-Looking Statements" in this report, are not the only risks faced by the Company. Additional risks and uncertainties may also materially affect the Company's business, financial condition, or operating results. One should not consider the risk factors to be a complete discussion of risks, uncertainties, and assumptions.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Company's purchases of its common stock during the first quarter of 2023 were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | Total Number of |  |
|  |  |  | Shares Purchased as | Maximum Number of |
|  | Total Number of |  | Part of Publicly | Shares that May Yet Be |
|  | Shares |  | Announced Plans or | Purchased under the |
|  | Purchased (2) | Average Price | Programs (1) | Plans or Programs (1) |
| Period | (thousands) | Per Share | (thousands) | (millions) |
| Oct 31 to Nov 27 | 569  | $402.45  | 569  | 47.8  |
| Nov 28 to Dec 25 | 1831  | 436.23  | 1774  | 46.0  |
| Dec 26 to Jan 29 | 538  | 427.11  | 538  | 45.4  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 2938  |  | 2881  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company has a share repurchase plan that was announced in December 2019 to purchase up to $8,000 million of shares of the Company's common stock. The maximum number of shares that may yet be purchased under the December 2019 plan was 2.4 million shares based on the end of the first quarter 2023 closing share price of $418.18 per share. At the end of the first quarter of 2023, $995 million of common stock remains to be purchased under the December 2019 plan. In December 2022, the Board of Directors authorized the repurchase of up to $18,000 million of additional common stock. Based on the first quarter 2023 closing share price, the maximum number of shares that may be repurchased under the December 2022 plan was 43.0 million shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In the first quarter of 2023, 57 thousand shares were acquired from plan participants at a market price to pay payroll taxes on certain restricted stock awards. The shares were valued at a weighted-average market price of $434.88.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits

Certain instruments relating to long-term borrowings constituting less than 10 percent of the registrant's total assets are not filed as exhibits herewith pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K. The registrant will file copies of such instruments upon request of the Commission.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 | [Certificate of Incorporation (Exhibit 3.1 to Form 10-Q of registrant for the quarter ended July 28, 2019, Securities and Exchange Commission File Number 1-4121\*)](https://www.sec.gov/Archives/edgar/data/315189/000155837019008382/de-20190728ex31a36f984.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 | [Bylaws, as amended (Exhibit 3.1 to Form 8-K of registrant filed on December 3, 2020, Securities and Exchange Commission File Number 1-4121\*)](https://www.sec.gov/Archives/edgar/data/315189/000155837020014162/de-20201202xex3d1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 | [John Deere ERISA Supplementary Pension Benefit Plan, as amended October 31, 2022](de-20230129xex10d1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.1 | [Rule 13a-14(a)/15d-14(a) Certification](de-20230129xex31d1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.2 | [Rule 13a-14(a)/15d-14(a) Certification](de-20230129xex31d2.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32 | [Section 1350 Certifications (furnished herewith)](de-20230129xex32.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

\* Incorporated by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  | DEERE & COMPANY | DEERE & COMPANY |
| Date: | February 23, 2023 | By: | */s/ Joshua A. Jepsen* |
|  |  |  | Joshua A. Jepsen<br>Senior Vice President and Chief Financial Officer |
|  |  |  | (Principal Financial Officer and <br>Principal Accounting Officer) |

---

## Exhibit 10.1

**Exhibit 10.1**

**JOHN DEERE**

**ERISA SUPPLEMENTARY PENSION BENEFIT PLAN**

**AS AMENDED AND RESTATED EFFECTIVE: 1 NOVEMBER 1992**

**AS AMENDED 8 DECEMBER 1993: EFFECTIVE 1 JULY 1993**

**AS AMENDED: 7 DECEMBER 1994**

**AS AMENDED MAY 1995 – EFFECTIVE 1 JANUARY 1995**

**AS AMENDED 4 DECEMBER 1996 – EFFECTIVE 1 JANUARY 1997**

**AS AMENDED 26 MAY 1999 – EFFECTIVE 26 MAY 1999**

**AS AMENDED 19 JULY 1999 – EFFECTIVE 1 JULY 1999**

**AS AMENDED 12 JANUARY 2000 – EFFECTIVE 1 JANUARY 2000**

**AS AMENDED 31 JULY 2000 – EFFECTIVE 1 JANUARY 2000**

**AMENDED: 29 JANUARY 2002 – EFFECTIVE 1 JANUARY 2002**

**AMENDED: 1 DECEMBER 2005 – EFFECTIVE 1 JANUARY 2005**

**AMENDED: 13 DECEMBER 2007 – EFFECTIVE 1 JANUARY 2007**

**AMENDED: 29 OCTOBER 2008 – EFFECTIVE 1 NOVEMBER 2008**

**AMENDED: 30 June 2009 – EFFECTIVE: 1 July 2010**

**AMENDED: DECEMBER 2011 – EFFECTIVE: 1 OCTOBER 2011**

**AMENDED: 31 OCTOBER 2022 – EFFECTIVE 1 JANUARY 2023**

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**Table of Contents**

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| | |
|:---|:---|
|  | **Page** |
| ARTICLE I ESTABLISHMENT, PURPOSE AND CONSTRUCTION | 1 |
| 1.1Establishment | 1 |
| 1.2Purpose | 1 |
| 1.3Effective Date and Plan Year | 1 |
| 1.4Application of Plan | 2 |
| 1.5Construction | 2 |
| ARTICLE II PARTICIPATION | 3 |
| 2.1Eligibility to Participate | 3 |
| 2.2Effect of Transfer | 3 |
| ARTICLE III SUPPLEMENTARY BENEFITS | 4 |
| 3.1Eligibility for Benefit | 4 |
| 3.2Amount of Benefit | 4 |
| 3.3Form of Payment and Commencement Date | 4 |
| 3.4Death Prior to Receipt of Lump Sum | 5 |
| 3.5Qualified Domestic Relations Order | 6 |
| ARTICLE IV ADMINISTRATION OF PLAN | 7 |
| 4.1Administration | 7 |
| 4.2Amendment, Modification or Termination | 7 |
| ARTICLE V MISCELLANEOUS |  |
| 5.1Employment Rights | 9 |
| 5.2Applicable Law | 9 |
| 5.3Non-Alienation | 9 |
| 5.4Withholding of Taxes | 9 |
| 5.5Funding and Rights Against Assets | 9 |
| 5.6Effect on Other Benefit Plans | 9 |
| APPENDIX A |  |
| Article A-1 APPLICATION; PAYMENT OF PLAN BENEFIT AFTER 2006 | A-1 |
| A-1.1Application of this Article | A-1 |
| A-1.2Retirement During Calendar Year 2007 or Later | A-1 |
| A-1.3Termination During Calendar Year 2005 or Later | A-1 |
| A-1.4Termination Prior to 1 January 2005 | A-1 |
| A-1.5One-Time Lump Sum | A-1 |
| Article A-2 DEATH and DISABILITY BENEFITS | A-2 |
| A-2.1Application of Article A-2 | A-2 |
| A-2.2No Additional Rights Because of Death | A-2 |
| A-2.3Rules Based on Timing of Death | A-2 |
| A-2.4Separation from Service Due to Disability | A-3 |
| A-2.5Return to Work Following Disability | A-4 |

---

i

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| | |
|:---|:---|
| APPENDIX B |  |
| Article B-1 MISCELLANEOUS PROVISIONS | B-1 |
| B-1.1Application of this Article | B-1 |
| B-1.2Impact of Vacation | B-1 |
| B-1.3Impact of Leave of Absence and Special Paid Leave of Absence | B-1 |
| B-1.4No Acceleration or Delay | B-2 |
| B-1.5 Interpretation Consistent with Section 409A Compliance | B-2 |
| Article B-2 AMENDMENT AND TERMINATION | B-3 |
| B-2.1Amendment and Termination | B-3 |
| B-2.2Plan Benefit in the Event of Termination | B-3 |
| Article B-3 DEFINITIONS | B-3 |
| B-3.1Section References | B-3 |
| B-3.2Terms Defined | B-3 |

---

ii

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**JOHN DEERE ERISA SUPPLEMENTARY**

**PENSION BENEFIT PLAN**

**ARTICLE I ESTABLISHMENT, PURPOSE AND CONSTRUCTION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Establishment</u>.

Effective 1 November 1985, Deere & Company established the John Deere Supplementary Pension Benefit Plan (the "Former Plan") for the benefit of the salaried employees on its United States payroll and the salaried employees of its United States subsidiaries or affiliates that chose to adopt the John Deere Pension Plan for Salaried Employees ("Salaried Pension Plan"). Deere & Company and its United States subsidiaries and affiliates that have adopted the Salaried Pension Plan (jointly the "Company") are also deemed to have adopted the Former Plan. The Company amended and restated the Former Plan, and divided it into two separate plans, effective 1 November 1992. This John Deere ERISA Supplementary Pension Benefit Plan (the "Plan") is one of the two plans which replaced the Former Plan. Effective as of 1 January, 2007, the Plan is amended pursuant to Section 409A of the Code as set forth in Appendices A and B, which form part of the Plan. Amendments to the Plan adopted in 2006 and 2007 are intended to align Plan provisions with prior operational changes and avoid the imposition on any Participant of taxes and interest pursuant to Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Purpose</u>.

The Company maintains a defined benefit pension plan, known as the John Deere Pension Plan for Salaried Employees ("Salaried Pension Plan"), which is intended to be a qualified defined benefit pension plan which meets the requirements of section 401(a) of the Internal Revenue Code of 1986 ("Code"). Section 415 of the Code limits the benefit which may be paid under a qualified defined benefit pension plan. This Plan is intended to provide benefits which, when combined with the benefit actually payable under the Salaried Pension Plan, are reasonably comparable to the benefits which participants in the Salaried Pension Plan would have received under such plan if there were no limitations imposed by section 415 of the Code. This Plan is intended to qualify as an unfunded "excess benefit plan," as defined in section 3(36) of the Employee Retirement Income Security Act of 1974 ("ERISA").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Effective Date and Plan Year</u>.

This Plan shall be effective 1 November 1992. Participants in the Former Plan who were receiving benefits under the Former Plan as of 31 October 1992, and who are eligible employees as defined in section 2.1 below, shall receive the same benefit payments under this Plan as they were receiving under the Former Plan as of 31 October 1992. Participants in the Former Plan who were not receiving benefits as of 31 October 1992, and who are eligible employees as defined in section 2.1 below, shall have no further rights under the Former Plan, but shall be entitled to supplementary pension benefits, if any, only under the terms of this Plan. The Plan Year shall be the twelve-month period beginning on 1 November of each year and ending on 31 October of the following year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>Application of Plan</u>.

The terms of this Plan are applicable only to eligible employees as described in Section 2.1 below who (i) become eligible to receive benefit payments hereunder on or after 1 November 1992, or (ii) were receiving benefit payments under the Former Plan as of 31 October 1992.

Notwithstanding any provision of this Plan to the contrary, the provisions of Appendices A and B shall apply to payment of benefits on or after 31 December 2006 and such appendices shall supersede the other provisions of the Plan to the extent necessary to eliminate inconsistencies between such Appendices and such other provisions of the Plan.

Notwithstanding any other provision of the Plan to the contrary, (i) any employee who is hired, rehired or transferred into covered employment by the Company on or after 1 January 2023 shall not be eligible to participate or resume participation in the Plan, and (ii) any employee who elects during the election period in 2023 to participate in Grow Together (as such term is defined in the Salaried Pension Plan) shall not accrue additional benefits in the Plan for periods on or after 1 March 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 <u>Construction</u>.

Unless the context clearly indicates otherwise or unless specifically defined herein, all operative terms used in this Plan shall have the meanings specified in the Salaried Pension Plan, and words in the masculine gender shall be deemed to include the feminine and neuter genders and the singular shall be deemed to include the plural and vice versa.

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**ARTICLE II PARTICIPATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Eligibility to Participate</u>.

Any employee participating in the Salaried Pension Plan (or a surviving spouse of such employee) whose retirement benefit upon termination from employment or death under such plan is reduced by application of Article I, Section 14, of the Salaried Pension Plan (or any other provision of the Salaried Pension Plan which limits benefits under such plan as required by Section 415 of the Code) and who is not a participant in the John Deere Senior Supplementary Pension Benefit Plan shall be eligible to participate in this Plan (each such eligible employee referred to herein as a "Participant").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Effect of Transfer</u>.

Any employee who is a Participant in this Plan and who becomes eligible to participate in the John Deere Senior Supplementary Pension Benefit Plan shall cease to be a Participant in this Plan upon becoming a participant in the John Deere Senior Supplementary Pension Benefit Plan.

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**ARTICLE III SUPPLEMENTARY BENEFITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Eligibility for Benefit</u>.

An eligible employee shall be entitled to a benefit under this Plan in the event that such eligible employee's employment with the Company terminates by reason of death or retirement, including deferred vested retirement, under the terms of the Salaried Pension Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Amount of Benefit</u>.

The amount of the supplementary benefit payable under this Plan shall be the amount by which (A) exceeds (B) where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) equals the amount of an employee's monthly pension benefit or survivor benefit payable under the terms of the Salaried Pension Plan as in effect on the date of the employee's termination, retirement or death, but determined without regard to any limitation on such benefit imposed in order to comply with the limitation on benefits contained in section 415 of the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) equals such employee's actual monthly pension benefit or survivor benefit payable under the Salaried Pension Plan as in effect on the date of such employee's termination, retirement or death.

The determinations of the amount of (A) and (B) above shall be made using a single life annuity form.

Notwithstanding the foregoing, effective 1 January 2007, an eligible employee pursuant to Section 3.1 above shall become entitled to the monthly retirement benefit described in this Section 3.2 upon his or her Separation from Service (as defined in Article B-3 of Appendix B); provided, however, that Section B-1.2, if applicable, shall apply in calculating the amount of the Participant's benefit under the Plan, and the time and form of payment shall be determined in accordance with Appendix A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Form of Payment and Commencement Date</u>.

The supplementary benefit payable under this Plan shall be payable in the same manner and form as the benefit paid to or with respect to an employee under the Salaried Pension Plan, and shall automatically commence on or about the same date as payments under the Salaried Pension Plan. Such benefits payable under this Plan shall continue as long as benefits are payable under the Salaried Pension Plan.

Alternatively, the Participant may elect to receive a lump sum payment for all or a portion (in 10% increments from 10% to 90%) of the Retirement benefits payable under this Plan including the 55% joint and survivor annuity equal to 11% of the supplementary benefit payable, adjusted for service accrued through 30 June 1993, or 31 December 1993 in the case of employees of John Deere Credit Company, John Deere Health Care, Inc., or John Deere Insurance Group.

------

Written notice of the Participant's election to receive a lump sum payment shall be irrevocable, and must be received by the Company within the twelve (12) months prior to payment, but in no event subsequent to the Participant's date of retirement. The lump sum payment shall be made to Participant twelve (12) months after receipt of notice by the Company but in no event prior to the Participant's retirement.

Effective beginning 1 January 2002 and thereafter, the lump sum will be calculated using an interest rate assumption equal to the average yield in September of the preceding Plan Year on 30-year Treasury Constant Maturities (as published in October by the Internal Revenue Service) and the mortality table shall be based upon a fixed blend of 50% male mortality rates and 50% female mortality rates from the Group Annuity Reserving Table ("GAR"), as set forth in Revenue Ruling 2001-62, in effect at the beginning of the plan year in which payment is made. The age used in the calculation will be the age of the Participant.

Effective beginning 1 November 2008 and thereafter, the lump sum will be calculated using an interest rate assumption equal to the average yield in September of the preceding Plan Year of 30-year Treasury Constant Maturities (as published in October by the Internal Revenue Service) and the mortality table shall be based upon such mortality table as may be prescribed by the IRS pursuant to Code section 417(e)(3), and which the IRS shall publish from time to time. For the Plan Year beginning 1 November 2008 and, until modified, such mortality table will be the table published in Revenue Ruling 2007-67. Effective 1 November 2008, in no event will the lump sum paid be less than the present value determined by using the "applicable interest rate" and the "applicable mortality table" with such terms having the meaning provided under Section 417(e) of the Code, as in effect from time to time. The age used in the calculation will be the age of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Death Prior to Receipt of Lump Sum</u>.

If an active Participant or a Participant on Permanent and Total Disability dies after receipt of notice by the Company pursuant to Section 3.3 of Participant's irrevocable election to receive a lump sum payment, but before the expiration of twelve (12) months after receipt by the Company of such election, a surviving spouse of the Participant who is eligible for a survivor benefit under the Salaried Pension Plan will receive a lump sum survivor's benefit under this Plan. The 55% surviving spouse lump sum benefit will be payable no earlier than twelve (12) months following receipt of notice by the Company of the deceased Participant's irrevocable election but not before the first day of the month following eligibility for a surviving spouse benefit under the Salaried Pension Plan.

------

If a retired Participant or a Participant on Permanent and Total Disability subsequently retires under Normal Retirement and dies after receipt of notice by the Company pursuant to Section 3.3 of Participant's irrevocable election to receive a lump sum payment, but before the expiration of twelve (12) months after receipt by the Company of such election, a surviving spouse of the Participant who is eligible for a survivor benefit under the Salaried Pension Plan will receive the Participant's full lump sum benefit under Section 3.3 of this Plan. In the event the retired Participant is unmarried at the date of death or the surviving spouse of the deceased Participant is not eligible for survivor benefits under the Salaried Pension Plan, the Participant's full lump sum benefit will be paid to the deceased Participant's estate. The lump sum benefit will be payable no earlier than twelve (12) months following receipt of notice by the Company of the deceased Participant's irrevocable election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Qualified Domestic Relations Order</u>.

Distribution is prohibited under this Plan prior to the Participant's retirement and, in the event of a Qualified Domestic Relations Order, the Alternate Payee must take distribution as a single lump sum payment within 180 days following the Participant's retirement under this Plan.

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**ARTICLE IV ADMINISTRATION OF PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Administration</u>.

This Plan shall be administered by the Company (the "Administrator"). The Administrator shall have the power to construe and interpret this Plan, decide questions of eligibility and determine the amount, manner and time of payment of any benefits hereunder. All determinations of the Administrator shall be final, binding and conclusive on all persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Amendment, Modification or Termination</u>.

The Board of Directors of the Company, or, the Pension Plan Oversight Committee of the Board may at any time amend or modify this Plan in their sole discretion. In addition, the Deere & Company Management Compensation Committee ("Compensation Committee") shall have the authority to approve all amendments or modifications that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. in the Compensation Committee's judgment are procedural, technical or administrative, but do not result in changes in the control and management of the Plan assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. in the Compensation Committee's judgment are necessary or advisable to comply with any changes in the laws or regulations applicable to this Plan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. in the Compensation Committee's judgment are necessary or advisable to implement provisions conforming to a collective bargaining agreement which has been approved by the Board of Directors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. in the Compensation Committee's judgment will not result in changes to benefit levels exceeding $5 million dollars per amendment or modification during the first full fiscal year that such changes are effective for this Plan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. are the subject of a specific delegation of authority from the Board of Directors;

<u>provided</u>, <u>however</u>, that this Plan shall not be amended or modified so as to reduce or diminish the benefit then currently being paid to any employee or surviving spouse of any former employee without such person's consent. The power to terminate this Plan shall be reserved to the Board of Directors of Deere & Company. The procedure for amendment or modification of this Plan by either the Board of Directors, or, to the extent so authorized, the Pension Plan Oversight Committee, as the case may be, shall consist of: the lawful adoption of a written amendment or modification to this Plan by majority vote at a validly held meeting or by unanimous written consent, followed by the filing of such duly adopted amendment or modification by the Secretary with the official records of the Company. If a subsidiary or affiliate of Deere & Company that has adopted this Plan ceases to be a subsidiary or affiliate, the participation in this Plan by the employees of such subsidiary or affiliate shall terminate, and no employees of such former affiliate or subsidiary shall accrue or be entitled to a benefit under

------

this Plan on and after the date such company ceases to be a subsidiary or affiliate of Deere & Company (other than former employees who were receiving benefit payments as of such date).

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**ARTICLE V MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Employment Rights</u>.

Nothing under this Plan shall be construed to give any employee the right to continue in employment with the Company or to any benefits not specifically provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Applicable Law</u>.

This Plan, to the extent it is not exempt therefrom, shall be governed and construed in accordance with the applicable provisions of ERISA. To the extent not governed by ERISA, this Plan shall be governed and construed in accordance with the laws of the State of Illinois, exclusive of conflict laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Non-Alienation</u>.

Except as provided in Article VIII, Section 8 of the John Deere Pension Plan for Salaried Employees no right or benefit under this Plan shall be subject to anticipation, alienation, sale, assignment, pledge, encumbrance or charge and any attempt to anticipate, alienate, sell, assign, pledge, encumber or charge the same shall be null and void. No right or benefit under this Plan shall in any manner be liable for or subject to the debts, contracts, liabilities or torts of the person entitled to such benefits except for such claims as may be made by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Withholding of Taxes</u>.

The Company, or its designee, may withhold from any payment of benefits under this Plan any income, employment or other taxes required to be withheld, including any taxes for which the Company or its designee may be liable with respect to the payment of such benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Funding and Rights Against Assets</u>.

The Company shall make all payments due under this Plan in cash from its general assets and benefits payable under this Plan shall not be funded through the use of a trust, insurance contracts or otherwise. All expenses of administering this Plan shall also be borne by the Company. Neither participating employees, nor their surviving spouses, shall have any interest whatsoever in any specific assets of the Company on account of any benefits payable under this Plan and their rights to receive such benefits shall be no greater than the rights of any other unsecured creditor of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Effect on Other Benefit Plans</u>.

Amounts credited or payable under this Plan shall not be considered compensation for purposes of any qualified retirement plan maintained by the Company. The treatment of such amounts under any other plan of the Company shall be determined under the provisions of such plan.

------

**APPENDIX A**

**ARTICLE A-1**

**APPLICATION; PAYMENT OF PLAN BENEFIT AFTER 2006**

A-1.1<u>Application of this Article</u> . Notwithstanding anything in the Plan to the contrary, the rules applicable to payment of Plan Benefits for Participants who, as of 31 December 2006, have not commenced payment are set forth in this Appendix A.

A-1.2<u>Retirement During Calendar Year 2007 or Later</u>. If a Participant Retires after 31 December 2006, his Vested Plan Benefit shall be distributed in a Lump Sum with a Payment Date that is the 15<sup>th</sup> day of the month following the date that is (a) six months and one day following (b) the date of his Retirement plus one day for every day of Vacation. Such Lump Sum shall be calculated using lump sum equivalency factors for a lump sum which is actuarially equivalent to an immediate Single Life Annuity payable on the date determined in accordance with clauses (a) and (b) of this Section A-1.2 and shall be based on the Participant's age on the date the Participant Retires plus one day for every day of Vacation.

A-1.3<u>Termination During Calendar Year 2005 or Later</u>. If a Participant incurs a Termination during calendar year 2005 or thereafter, his Vested Plan Benefit shall be distributed in the form of a Lump Sum with a Payment Date that is the later of (a) 31 January 2007 and (b) the 15<sup>th</sup> day of the month following the date that is six months and one day after the date on which the Participant incurred a Termination. Such Lump Sum shall be calculated using lump sum equivalency factors for a lump sum which is actuarially equivalent to a deferred Single Life Annuity payable on the earliest date the Participant would be eligible to receive unreduced benefits under the Salaried Pension Plan and based on the Participant's age on the Payment Date.

A-1.4<u>Termination Prior to 1 January 2005</u>. If a Participant incurred a Termination prior to 1 January 2005, but as of 31 December 2006 had not yet commenced payment of his Vested Plan Benefit, such Vested Plan Benefit shall be paid in a Lump Sum on or before 30 November 2007. The amount of the Participant's Plan Benefit shall be determined in accordance with Sections 3.2 and 3.3.

A-1.5<u>One-Time Lump Sum</u>. Effective 1 January 2008, Participants shall receive an amount equal to the interest that would be credited on their Account for the period beginning on the date of Separation from Service and ending on the sixth-month anniversary thereof, determined by using an interest rate equal to the average yield in September of the preceding Plan Year on 30-year Treasury Constant Maturities (as published in October by the Internal Revenue Service). This one-time lump sum payment shall be paid at the same time as the first distribution of the Participant's Vested Plan Benefit under the Plan.

Participants who Separated from Service after 31 December 2004 and before 1 January 2008 shall also receive a one-time lump sum cash payment equal to the amount that such Participants would have been paid had the preceding paragraph been effective on

------

the date of their Separation from Service, provided that the average yield in September 2007 on 30-year Treasury Constant Maturities (as published in October 2007 by the Internal Revenue Service) shall be used in determining the amount of such one-time lump sum payment. This one-time lump sum payment shall be paid on or before 29 February 2008, but in no event earlier than the date that is six months and one day after the date of the Participant's Separation from Service.

**ARTICLE A-2**

**DEATH AND DISABILITY BENEFITS**

A-2.1<u>Application of Article A-2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)<u>Death</u>. This Article A-2 addresses the survivor benefit or death benefit (in each case, if any) under this Plan with respect to a Participant who incurs a Separation from Service due to his death on or after 1 January 2007.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)<u>Disability</u>. This Article A-2 addresses the Payment Date and the Plan Benefit of a Participant who incurs a Separation from Service due to his Disability on or after 1 January 2007.

A-2.2<u>No Additional Rights Because of Death</u>. No survivor or death benefit shall be payable to any person under this Article A-2 in respect of a Participant unless the Participant had a Vested Plan Benefit on the date of death.

A-2.3<u>Rules Based on Timing of Death.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)<u>Survivor or Death Benefits to Unmarried Participants</u>. If a Participant is not married to a surviving spouse or has not been married to a surviving spouse for at least one year immediately prior to the date of death:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)as of the date of his Separation from Service and (a) he is an active employee (i.e., has not incurred a Separation from Service) of the Company as of the date immediately preceding his Separation from Service and (b) such Separation from Service is by reason of the Participant's death, no survivor benefit or death benefit with respect to such Participant's Vested Plan Benefit, if any, shall be payable to any person and such Plan Benefit shall be forfeited as of the date of death; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)as of the date of his death and his Separation from Service occurs prior to the date of death, the survivor benefit or death benefit with respect to such Participant's Vested Plan Benefit, if any, shall be payable to such Participant's estate in accordance with the time and form of payment set forth in Section A-1.2 or A-1.3, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)<u>Separation From Service Due to Death</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If an active Participant (*i.e*., a Participant who has not incurred a Separation from Service) who is Retirement Eligible incurs a Separation from Service

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due to his death and, as of the date of death, has been married to a Spouse for at least one year immediately prior to the date of death, the surviving spouse shall be paid a single lump sum equal to 55% of the Lump Sum payable to the Participant had the Participant Retired on the date of his death. Such Lump Sum shall be calculated using lump sum equivalency factors for a Single Life Annuity payable immediately based on the Participant's age at the date of death. Notwithstanding anything in Section A-1.1, A-1.2 or A-1.3 to the contrary regarding the time or form of payment, such lump sum distribution to the surviving spouse shall be made on the 15<sup>th</sup> day of the month following the month in which the Participant dies. Effective for Participant dates of death on or after 01 July 2010, such lump sum distribution to the surviving spouse shall be made on the 15<sup>th</sup> day of January of the year following the Participant's death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If an active Participant who is not Retirement Eligible incurs a Separation from Service by reason of his death and, as of the date of death, has been married to a Spouse for at least one year immediately prior to the date of death, the surviving spouse shall be paid a single lump sum equal to 55% of the Lump Sum payable to the Participant had the Participant lived until the earliest date on which he would be eligible for an unreduced benefit under the Salaried Pension Plan and then Retired. Such lump sum payable to the surviving spouse shall be calculated using the lump sum equivalency factors for a Lump Sum which is actuarially equivalent to a deferred Single Life Annuity payable on the earliest unreduced benefits date under the Salaried Pension Plan had the Participant lived to Retire and based on the Participant's age at the date of death. The Lump Sum payable pursuant to this Section A-2.3(B)(ii) shall be paid on the 15<sup>th</sup> day of the month following the month in which the Participant dies, notwithstanding anything to the contrary in Section A-1.1, A-1.2 or A-1.3 regarding the time or form of payment. Effective for Participant dates of death on or after 01 July 2010, such lump sum distribution to the surviving spouse shall be made on the 15<sup>th</sup> day of January of the year following the Participant's death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)<u>One-Time Lump Sum</u>. Effective 1 July 2010, the surviving spouses of Participants shall receive an amount equal to the interest that would be credited on their Account for the period beginning on the date of Separation from Service and ending on the 15<sup>th</sup> of January in the year following the Participant's death, determined by using an interest rate equal to the average yield in September of the preceding Plan Year on 30-year Treasury Constant Maturities (as published in October by the Internal Revenue Service). This one-time lump sum payment shall be paid at the same time as the first distribution of the Participant's Vested Plan Benefit under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)<u>Death After Separation from Service and Prior to Payment of Lump Sum</u>. If a Participant dies after his Separation from Service but prior to the receipt of the Lump Sum distribution, such Lump Sum shall be determined and paid in accordance with Section A-1.2 or A-1.3, as applicable.

A-2.4<u>Separation from Service Due to Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)<u>Separation from Service on or After 1 January 2007</u>. A Participant who incurs a Separation from Service due to a Disability on or after 1 January 2007

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shall receive a distribution of his Plan Benefit in a Lump Sum paid in accordance with Section A-1.2 or A-1.3. The Participant's immediate Single Life Annuity, which is then converted into a Lump Sum in accordance with Section 3.3, shall be determined in accordance with Section 3.2 as though the Participant (i) had remained employed with the Company until the first day of the calendar month following his or her 65<sup>th</sup> birthday, (ii) received pay, determined as of the end of the elimination period under the John Deere Long-Term Disability Plan for Salaried Employees, until the date in (i) above, and (iii) then incurred a Separation from Service with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)<u>Separation From Service Prior to 1 January 2005</u>. If a Participant incurred a Separation from Service due to Disability prior to 1 January 2005, is entitled to a Plan Benefit based in part on credit for service with the Company after 31 December 2004 and, as of 1 January 2005, has not commenced payment of his Plan Benefit, such Plan Benefit shall be paid in a Lump Sum in accordance with Section A-1.2 or A-1.3; provided however, that if the date specified for payment under Section A-1.2 or A-1.3 is prior to 30 November 2007, such Lump Sum shall be paid on or before 30 November 2007. The amount of the Participant's Plan Benefit shall be determined in accordance with Section 3.2 and Section A-2.4(A).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)The provisions of this Section A-2.4 shall be superseded by Section A-2.3 in the event that a Participant's death occurs prior to payment of his entire Plan Benefit.

A-2.5<u>Return to Work Following Disability</u>. If a Participant who has commenced payment of his Plan Benefit returns to work with the Company following his Separation from Service due to Disability and is eligible to become a Participant upon such return to work, such Participant shall begin accruing a new Plan Benefit. The determination of such Participant's new Plan Benefit shall include the period beginning on the date of such Participant's initial Separation from Service and ending on his subsequent Separation from Service following his return to work. Upon such Participant's subsequent Separation from Service, the Participant's new Plan Benefit shall equal his or her (i) Aggregate Plan Benefit, less (ii) the Lump Sum value of the Plan Benefit which the Participant previously received with interest credited from the date of receipt through the date of subsequent payment using the interest rate described in Section 3.3, and shall be paid to the Participant in a Lump Sum in accordance with Section A-1.2 or A-1.3, as applicable, based on the date of such subsequent Separation from Service. For purposes of this Section A-2.5, the Participant's Aggregate Plan Benefit means the Plan Benefit the Participant would be entitled to receive had he or she remained continuously employed with the Company from his initial date of hire through the date of the Participant's subsequent Separation from Service, recalculated pursuant to Section 3.2 based on all service with the Company and all compensation paid by the Company, solely to the extent that such service and compensation are considered under the Salaried Pension Plan.

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**APPENDIX B**

**ARTICLE B-1**

**MISCELLANEOUS PROVISIONS**

B-1.1<u>Application of this Article</u>.

For purposes of clarification, the provisions in this Appendix B supplement the provisions in Appendix A, and are effective 1 January 2007 unless otherwise provided.

B-1.2<u>Impact of Vacation</u>.

If a Participant's Retirement occurs immediately prior to or during such Participant's Vacation, then, solely for purposes of determining the amount of the Plan Benefit for a Participant, such Participant's Separation from Service shall be determined in accordance with the Prior Plan and the Participant shall be eligible to accrue benefits in accordance with the Plan until such Separation from Service; <u>provided</u>, <u>however</u>, that solely for purposes of this Section B-1.2, Vacation shall exclude any day of vacation not used by the Participant to extend his service under the Salaried Pension Plan. Determinations under this Plan which provide for one day to be added for each day of Vacation shall be made using the same rules and principles applied to count days of Vacation used by active employees. (For example, weekends, holidays and scheduled shutdowns are not counted as Vacation days.)

B-1.3<u>Impact of Leave of Absence and Special Paid Leave of Absence</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)<u>Leave of Absence</u>. If a Participant who has commenced payment of his Plan Benefit returns to work with the Company following his Separation from Service due to an approved Leave of Absence and is eligible to become a Participant upon such return to work, such Participant shall begin accruing a new Plan Benefit. Upon such Participant's subsequent Separation from Service, the Participant's new Plan Benefit shall equal his or her (i) Aggregate Plan Benefit, less (ii) the Plan Benefit which the Participant previously received with interest credited annually using the interest rate described in Section 3.3, and shall be paid to the Participant in a Lump Sum in accordance with Section A-1.2 or A-1.3, as applicable, based on the date of such subsequent Separation from Service. For purposes of this Section B-1.3, the Participant's Aggregate Plan Benefit means the Participant's Plan Benefit determined as though the Participant had never commenced payment of his Plan Benefit upon the original Separation from Service, recalculated pursuant to Section 3.2 based on all service with the Company and all compensation paid by the Company, solely to the extent that such service and compensation are considered under the Salaried Pension Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)<u>Special Paid Leave of Absence</u>. Solely for purposes of determining the amount of such Participant's Vested Plan Benefit, a Participant who incurs a Separation from Service by reason of a Special Paid Leave of Absence shall receive a distribution of his Plan Benefit in a Lump Sum paid in accordance with Section A-1.3. The Participant's immediate Single Life Annuity, which is then converted into a Lump

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Sum in accordance with Section 3.3, shall be determined in accordance with Section 3.2 as though the Participant (i) had remained employed with the Company until expiration of such Participant's Special Paid Leave of Absence (ii) received pay, determined as of the date of the Participant's commencement of the Special Paid Leave of Absence, until the date in (i) above, and (iii) then incurred a Separation from Service with the Company.

B-1.4<u>No Acceleration or Delay</u>. The Administrator shall not accelerate or delay payment under the Plan except to the extent that such acceleration or delay shall not cause any person to incur additional taxes, interest or penalties under Section 409A ("Section 409A Compliance").

B-1.5 <u>Interpretation Consistent with Section 409A Compliance</u>.To the extent interpretation of the Plan is required, such interpretation shall be consistent with Section 409A Compliance.

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**ARTICLE B-2**

**AMENDMENT AND TERMINATION**

B-2.1<u>Amendment and Termination</u>. Notwithstanding any provision in this Plan to the contrary, the Board of Directors, the Committee, or the Deere & Company Management Compensation Committee shall have the unilateral right to amend, modify or terminate the Plan at any time. The Vice President of Human Resources of the Company shall have the unilateral right to amend or modify the Plan to the extent the Vice President of Human Resources of the Company deems such action to be necessary or advisable to avoid the imposition on any person of adverse or unintended tax consequences under Section 409A. Any determinations made by the Board of Directors, the Committee, the Management Compensation Committee, or the Vice President of Human Resources of the Company under this Section B-2.1 shall be final, conclusive and binding on all persons.

B-2.2<u>Plan Benefit in the Event of Termination</u>. With respect to a Participant's Plan Benefit, if the Plan is terminated, Plan Benefits shall be paid in accordance with Appendix A, unless the Board of Directors or the Committee, in its discretion and in full and complete settlement of the Company's obligations under this Plan, causes the Company to distribute the full amount of a Participant's then accrued and Vested Plan Benefit to the Participant in a Lump Sum; provided, that such distribution may be effected in a manner that will result in Section 409A Compliance.

**ARTICLE B-3**

**DEFINITIONS**

B-3.1<u>Section References</u>. All references to sections are, unless otherwise indicated, references to sections of the Plan, including the appendices.

B-3.2<u>Terms Defined</u>. Except as otherwise provided, whenever used in Appendix A, the following terms shall have the meanings set forth below:

"<u>Annuity</u>" means a Single Life Annuity or a Joint and Survivor Annuity.

"<u>Committee</u>" means the Company's Pension Plan Oversight Committee.

"<u>Disability</u>" shall have the same meaning as under the Salaried Pension Plan or the John Deere Long-Term Disability Plan for Salaried Employees.

"<u>Joint and Survivor Annuity</u>" shall have the meaning set forth in the Salaried Pension Plan.

"<u>Lump Sum</u>" means the actuarial equivalent of a Participant's Plan Benefit payable in a single cash lump sum on the Payment Date.

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"<u>Payment Date</u>" means the date the Participant receives his Plan Benefit, in all cases in accordance with the applicable provisions of the Plan.

"<u>Plan Benefit</u>" means, as of a given date, the total benefit payable under the Plan to a Participant, expressed as a Single Life Annuity in accordance with the rules of Section 3.2, commencing on the Participant's Normal Retirement Date or Postponed Retirement Date, as applicable, that a Participant has accrued under the Plan.

"<u>Prior Plan</u>" means the terms of the Plan in effect immediately prior to 1 January 2005, as set forth in the Company's written documents, rules, practices and procedures applicable to this Plan.

"<u>Retirement</u>" or "<u>Retire</u>" means a Separation from Service by a Participant who is then Retirement Eligible.

"<u>Retirement Eligible</u>" means eligible for a normal retirement benefit or an early retirement benefit within the meaning of the terms of the Salaried Pension Plan in effect as of 1 January 2007.

"<u>Section 409A</u>" means Section 409A of the Code and the applicable rulings and regulations promulgated thereunder.

"<u>Section 409A Compliance</u>" has the meaning set forth in Section B-1.4.

"<u>Separation from Service</u>" means, with respect to a Participant, a separation from service within the meaning of the default rules of Section 409A; <u>provided</u> that:

for purposes of determining which entities are treated as a single "service recipient" with the Company, the phrase "at least 20 percent" shall be substituted for the phrase "at least 80 percent" each place it appears in Sections 1563(a)(1), (2) and (3) of the Code and Section 1.414(c)-2 of the Treasury Regulations, as permitted under Section 1.409A-1(h)(3) of the Treasury Regulations; and a Participant absent from work due to Disability shall incur a Separation from Service 29 months after the date on which the Participant was first Disabled.

"<u>Single Life Annuity</u>" means a Participant's Plan Benefit payable in monthly installments over the life of the Participant, commencing as of the Payment Date and ending with the payment due for the month in which the Participant dies, with no further payments on his behalf after his death.

"<u>Special Paid Leave of Absence</u>" has the meaning set forth in the Deere & Company Policy for Special Paid Leave of Absence for Salaried Employees.

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"<u>Termination</u>" means a Separation from Service by a Participant who is not Retirement Eligible.

"<u>Vacation</u>" means one or more days, as the case may be, of such vacation to which the Participant is entitled pursuant to the policies and practices of the Company then in effect and (i) as of the date of the Participant's Separation from Service, deferred from a prior anniversary year and unused as of such Separation from Service, (ii) earned in the current anniversary year and unused as of such Separation from Service and (iii) if a Participant's Vacation described in clause (i) or (ii) of this definition is used in the anniversary year following the anniversary year in which such Separation from Service occurs, earned in such following anniversary year, whether or not used by the Participant.

<u>"Vested Plan Benefit"</u> means the portion of the Participant's Plan Benefit that has vested in accordance with Article 3.

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATIONS**

I, John C. May, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Deere & Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | | |
|:---|:---|:---|:---|
| Date: | February 23, 2023 | By: | */s/ John C. May* |
|  |  |  | John C. May |
|  |  |  | Chairman and Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATIONS**

I, Joshua A. Jepsen, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Deere & Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | | |
|:---|:---|:---|:---|
| Date: | February 23, 2023 | By: | */s/ Joshua A. Jepsen* |
|  |  |  | Joshua A. Jepsen |
|  |  |  | Senior Vice President and Chief Financial Officer |
|  |  |  | (Principal Financial Officer and Principal Accounting Officer) |

---

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## Ex-32

**EXHIBIT 32**

**STATEMENT PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS REQUIRED BY**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Deere & Company (the "Company") on Form 10-Q for the period ended January 29, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certify that to the best of our knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | |
|:---|:---|:---|
| February 23, 2023 | */s/ John C. May* | Chairman and Chief Executive Officer |
|  | John C. May | (Principal Executive Officer) |
| February 23, 2023 | */s/ Joshua A. Jepsen* | Senior Vice President and Chief Financial Officer |
|  | Joshua A. Jepsen | (Principal Financial Officer and Principal |
|  |  | Accounting Officer) |

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A signed original of this written statement required by Section 906 has been provided to Deere & Company and will be retained by Deere & Company and furnished to the Securities and Exchange Commission or its staff upon request.

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