8-K - DE - Equibles

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


	FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report: February 15, 2024

(Date of earliest event reported)

DEERE & COMPANY

(Exact name of registrant as specified in its charter)


Delaware		1-4121		36-2382580
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

One John Deere Place

Moline, Illinois 61265

(Address of principal executive offices and zip code)

(309) 765-8000

(Registrant’s telephone number, including area code)

___________________________________________________

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☐

Item 2.02Results of Operations and Financial Condition

On Thursday, February 15, 2024, Deere & Company (the “Company”) issued a press release announcing its results of operations for the first quarter of fiscal 2024. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 7.01Regulation FD

On Thursday, February 15, 2024, the Company made available a presentation providing a review of its first quarter of fiscal 2024 in connection with its investor earnings call. A copy of the presentation is furnished herewith as Exhibit 99.2 and is incorporated herein by reference.

Item 9.01Financial Statements and Exhibits

(d)Exhibits


Number	Description of Exhibit
99.1	Press Release and Supplemental Financial Information (Furnished herewith)
99.2	First Quarter 2024 Earnings Conference Call Information (Furnished herewith)
104	Cover Page Interactive Data File (the cover page XBRL tags are imbedded in the Inline XBRL document)

Signature

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 hereunto duly authorized.


	DEERE & COMPANY


	By:	/s/ Edward R. Berk
		Edward R. Berk
		Secretary


Dated: February 15, 2024

Exhibit 99.1

(Furnished herewith)

News Release

Contact: Jen Hartmann Director, Public Relations HartmannJenniferA@JohnDeere.com

Deere Reports First Quarter Net Income of $1.751 Billion

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

MOLINE, Illinois (February 15, 2024) — Deere & Company reported net income of $1.751 billion for the first quarter ended January 28, 2024, or $6.23 per share, compared with net income of $1.959 billion, or $6.55 per share, for the quarter ended January 29, 2023.

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

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

Company Outlook & Summary

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

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


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


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

Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit decreased due to lower shipment volumes and higher SA&G and R&D expenses, partially offset by price realization.

Production & Precision Agriculture Operating Profit

First Quarter 2024 Compared to First Quarter 2023

$ in millions


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

Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit decreased due to lower shipment volumes and higher SA&G and R&D expenses. These items were partially offset by price realization and lower production costs.

Small Agriculture & Turf Operating Profit

First Quarter 2024 Compared to First Quarter 2023

$ in millions


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

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

Construction & Forestry Operating Profit

First Quarter 2024 Compared to First Quarter 2023

$ in millions


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

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


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

Construction & Forestry
U.S. & Canada:
Construction Equipment						Flat to Down 5%
Compact Construction Equipment						Flat
Global Forestry						Down ~ 10%
Global Roadbuilding						Flat


Deere Segment Outlook for Fiscal 2024		Currency	Price
$ in millions	Net Sales	Translation	Realization
Production & Precision Ag	Down ~ 20%	~ Flat	+1.5%
Small Ag & Turf	Down 10 to 15%	~ Flat	+1.5%
Construction & Forestry	Down 5 to 10%	~ Flat	+1.5%

Financial Services	Net Income	~$ 770

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

FORWARD-LOOKING STATEMENTS

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

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

●	changes and compliance with U.S., foreign and international laws, regulations, and policies relating to trade, economic sanctions, data privacy, spending, taxing, banking, monetary, environmental (including climate change and engine emission), and farming policies;

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

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

DEERE & COMPANY

FIRST QUARTER 2024 PRESS RELEASE

(In millions of dollars) Unaudited


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

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

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

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

DEERE & COMPANY

STATEMENTS OF CONSOLIDATED INCOME

For the Three Months Ended January 28, 2024 and January 29, 2023

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


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

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

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

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

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

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

Average Shares Outstanding
Basic		279.9		297.6
Diluted		281.1		299.1

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions of dollars) Unaudited


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

Liabilities and Stockholders’ Equity

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

Redeemable noncontrolling interest		100		97		100

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

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY

STATEMENTS OF CONSOLIDATED CASH FLOWS

For the Three Months Ended January 28, 2024 and January 29, 2023

(In millions of dollars) Unaudited


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

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

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

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

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

See Condensed Notes to Interim Consolidated Financial Statements.


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

(1)

The consolidated financial statements represent the consolidation of all Deere & Company’s subsidiaries. The supplemental consolidating data is presented for informational purposes. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidated financial statements. In the supplemental consolidating data in Note 2 to the financial statements, the “Equipment Operations” represents the enterprise without “Financial Services”, which include the company’s production and precision agriculture operations, small agriculture and turf operations, and construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within “Financial Services.”

DEERE & COMPANY

(2) SUPPLEMENTAL CONSOLIDATING DATA

STATEMENTS OF INCOME

For the Three Months Ended January 28, 2024 and January 29, 2023

(In millions of dollars) Unaudited


	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2024		2023		2024		2023		2024		2023		2024		2023
Net Sales and Revenues
Net sales	$	10,486	$	11,402									$	10,486	$	11,402
Finance and interest income		157		114	$	1,433	$	1,067	$	(230)	$	(187)		1,360		994	^1^
Other income		289		234		119		177		(69)		(155)		339		256	^2, 3^
Total		10,932		11,750		1,552		1,244		(299)		(342)		12,185		12,652

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

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

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

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

^1^ Elimination of intercompany interest income and expense.

^2^ Elimination of Equipment Operations’ margin from inventory transferred to equipment on operating leases.

^3^ Elimination of income and expense between Equipment Operations and Financial Services related to intercompany guarantees of investments in certain international markets and intercompany service revenues and expenses.

^4^ Elimination of intercompany service fees.

^5^ Elimination of Financial Services’ lease depreciation expense related to inventory transferred to equipment on operating leases.

DEERE & COMPANY

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

CONDENSED BALANCE SHEETS

(In millions of dollars) Unaudited


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

Liabilities and Stockholders’ Equity

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

Redeemable noncontrolling interest		100		97		100														100		97		100

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

^6^ Elimination of receivables / payables between Equipment Operations and Financial Services.

^7^ Primarily reclassification of sales incentive accruals on receivables sold to Financial Services.

^8^ Reclassification of net pension assets / liabilities.

^9^ Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.

^10^ Elimination of Financial Services’ equity.

DEERE & COMPANY

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

STATEMENTS OF CASH FLOWS

For the Three Months Ended January 28, 2024 and January 29, 2023

(In millions of dollars) Unaudited


		EQUIPMENT				FINANCIAL
		OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	****	2024		2023		2024		2023		2024		2023		2024		2023
Cash Flows from Operating Activities
Net income		$	1,541	$	1,772	$	207	$	185					$	1,748	$	1,957
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses			(2)		1		33		(131)						31		(130)
Provision for depreciation and amortization			302		279		254		252	$	(36)	$	(37)		520		494	^11^
Share-based compensation expense											46		23		46		23	^12^
Distributed earnings of Financial Services			233		3						(233)		(3)					^13^
Provision (credit) for deferred income taxes			48		(39)		(21)		(17)						27		(56)
Changes in assets and liabilities:
Receivables related to sales			209		(23)						(486)		(992)		(277)		(1,015)	^14, 16^
Inventories			(687)		(1,254)						(36)		(25)		(723)		(1,279)	^15^
Accounts payable and accrued expenses			(2,155)		(1,458)		25		145		(197)		(264)		(2,327)		(1,577)	^16^
Accrued income taxes payable/receivable			165		192		18		7						183		199
Retirement benefits			(127)		(49)		(2)		1						(129)		(48)
Other			(46)		17		61		163		(22)		6		(7)		186	^11, 12, 15^
Net cash provided by (used for) operating activities			(519)		(559)		575		605		(964)		(1,292)		(908)		(1,246)

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

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

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

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash			(2,249)		(1,105)		(71)		342						(2,320)		(763)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			5,755		3,781		1,865		1,160						7,620		4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period		$	3,506	$	2,676	$	1,794	$	1,502					$	5,300	$	4,178

^11^ Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.

^12^ Reclassification of share-based compensation expense.

^13^ Elimination of dividends from Financial Services to the Equipment Operations, which are included in the Equipment Operations operating activities.

^14^ Primarily reclassification of receivables related to the sale of equipment.

^15^ Reclassification of direct lease agreements with retail customers.

^16^ Reclassification of sales incentive accruals on receivables sold to Financial Services.

^17^ Elimination of change in investment from Equipment Operations to Financial Services.

Exhibit 99.2

1Q 2024 Earnings Call<br>15 February 2024<br>Exhibit 99.2<br>(Furnished herewith)
2 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Forward-Looking Statements<br>This earnings call and accompanying materials may include forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private<br>Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “forecast,” “guidance,” “project,” “target,” “outlook,”<br>“prospects,” “expect,” “estimate,” “will,” “goal,” “plan,” “anticipate,” “intend,” “predict,” “believe,” “likely,” “future,” “could,” “may,” or other similar words or<br>phrases, including the negative variations of such words or phrases. Examples of forward-looking statements include, among others, comments and<br>information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political,<br>technological, weather, market acceptance, acquisitions and divestitures of businesses, anticipated transaction costs, the integration of new businesses,<br>anticipated benefits of acquisitions, and other factors that impact the company’s businesses and customers.<br>Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management’s current beliefs,<br>expectations and assumptions regarding the future of the company’s business, future plans and strategies, projections, anticipated events and trends, the<br>economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, changes in<br>circumstances, and other factors that are difficult to predict and many of which are outside of the Company’s control causing actual results to differ materially<br>from those projected in these forward-looking statements. Among these factors are risks related to changes in U.S. and international laws and regulations, the<br>political and economic geographies in which we operate, international conflicts, adverse macroeconomic conditions impacting consumer practices, including<br>demand for John Deere products, and changes in climate patterns. For a discussion of some of these risks and uncertainties see “Item 1A Risk Factors” in<br>our most recent Annual Report on Form 10-K, as updated by our subsequent filings with the U.S. Securities and Exchange Commission. Investors should<br>refer to and consider the information on risks and uncertainties in addition to the information presented here.<br>All forward-looking statements made in this earnings call and accompanying materials are based only on information currently available and speaks only as<br>of the date on which it is made. You should not place undue reliance on forward-looking statements. The Company, except as required by law, undertakes no<br>obligation to update or revise any forward-looking statements whether as a result of new developments or otherwise.<br>This earnings call and accompanying materials may contain non-GAAP financial measures. Non-GAAP measures should be viewed as a supplement to, and<br>not in isolation from, or as a substitute for the Company’s GAAP measures of performance and the financial results calculated in accordance with GAAP and<br>reconciliations from these results should be carefully evaluated.<br>19
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3 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>1Q 2024 Results<br>($ millions except where noted)<br>$12,652 $12,185<br>1Q 2023 1Q 2024<br>$11,402 $10,486<br>1Q 2023 1Q 2024<br>$1,959<br>$1,751<br>1Q 2023 1Q 2024<br>$6.55 $6.23<br>1Q 2023 1Q 2024<br>8%<br>Net Sales and<br>Revenues<br>Net Sales<br>(Equipment Operations)<br>Net Income<br>(attributable to<br>Deere & Company)<br>Diluted EPS<br>($ per share)<br>4% 11% 5%<br>20
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4 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Production and Precision Ag<br>1Q 2024 Results $ in millions<br>$5,198<br>$4,849<br>1Q 2023 1Q 2024<br>Net Sales 7% Operating Profit Comparison<br>$1,045<br>($273)<br>($1) ($20) ($89)<br>$0 $1,208 $202 $15<br>$3<br>1Q 2023 Volume/<br>Mix<br>Price Currency Warranty Production<br>Costs<br>SA&G/<br>R&D<br>Special<br>Items<br>Other 1Q 2024<br>21
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5 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Small Ag and Turf<br>1Q 2024 Results $ in millions<br>$3,001<br>$2,425<br>1Q 2023 1Q 2024<br>Net Sales 19% Operating Profit Comparison<br>$326<br>($215)<br>($5)<br>($16)<br>($21)<br>$0<br>$447<br>$97 $33 $6<br>1Q 2023 Volume/<br>Mix<br>Price Currency Warranty Production<br>Costs<br>SA&G/<br>R&D<br>Special<br>Items<br>Other 1Q 2024<br>22
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6 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Ag and Turf<br>Industry Outlook (in units) – FY 2024<br>Source: Deere & Company forecast as of 15 February 2024<br>U.S. and CANADA<br>LARGE AG<br>10-15%<br>EUROPE AG<br>10-15%<br>SOUTH AMERICA AG<br>(tractors and combines)<br>~10%<br>U.S. and CANADA<br>SMALL AG and TURF<br>5-10%<br>ASIA AG<br>Down moderately<br>23
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7 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Production and Precision Ag<br>Business Segment Outlook $ in millions<br>Source: Deere & Company forecast as of 15 February 2024<br>26.1%<br>FY 2023 FY 2024 Fcst<br>$26,790<br>FY 2023 FY 2024 Fcst<br>Net Sales Operating Margin<br>~20%<br>21.5-22.5%<br>24
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8 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>$13,980<br>FY 2023 FY 2024 Fcst<br>Small Ag and Turf<br>Business Segment Outlook $ in millions<br>Source: Deere & Company forecast as of 15 February 2024<br>17.7%<br>FY 2023 FY 2024 Fcst<br>Net Sales Operating Margin<br>10-15% 15-16%<br>25
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9 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Construction and Forestry<br>1Q 2024 Results $ in millions<br>$3,203 $3,212<br>1Q 2023 1Q 2024<br>Net Sales Flat Operating Profit Comparison<br>$566<br>($7)<br>($27)<br>($5) ($49)<br>($13) $0 ($46)<br>$625<br>$88<br>1Q 2023 Volume/<br>Mix<br>Price Currency Warranty Production<br>Costs<br>SA&G/<br>R&D<br>Special<br>Items<br>Other 1Q 2024<br>26
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10 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Construction and Forestry<br>Industry Outlook (in units) – FY 2024<br>Source: Deere & Company forecast as of 15 February 2024<br>U.S. and CANADA COMPACT<br>CONSTRUCTION EQUIPMENT<br>Flat<br>GLOBAL FORESTRY<br>~10%<br>U.S. and CANADA<br>CONSTRUCTION EQUIPMENT<br>Flat to down 5%<br>GLOBAL ROADBUILDING<br>Flat<br>27
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11 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Construction and Forestry<br>Business Segment Outlook $ in millions<br>Source: Deere & Company forecast as of 15 February 2024<br>18.2%<br>FY 2023 FY 2024 Fcst<br>$14,795<br>FY 2023 FY 2024 Fcst<br>Net Sales Operating Margin<br>5-10% 17-18%<br>28
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12 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Financial Services<br>Net Income – Results and Outlook $ in millions<br>Source: Deere & Company forecast as of 15 February 2024<br>$185<br>$207<br>1Q 2023 1Q 2024<br>Quarter Results Fiscal Year Outlook<br>$619<br>$770<br>FY 2023 FY 2024 Fcst<br>~<br>29
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13 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Deere & Company Outlook<br>Effective<br>Tax Rate<br>Net Income<br>(attributable to Deere & Co.)<br>$7.5-7.75B 24-26%<br>FY 2024 FORECAST<br>Net Operating<br>Cash Flow<br>$7.0-7.5B<br>Equipment Operations<br>Source: Deere & Company forecast as of 15 February 2024<br>Other<br>Research and Development Expenses<br>Capital Expenditures*<br>Up slightly<br>~$1.9B<br>30
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14 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Appendix<br>31
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15 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>January 2024 Retail Sales (Rolling 3 Months)<br>and Dealer Inventories<br>Retail Sales<br>U.S. and Canada Ag Industry* Deere<br>2WD Tractors (< 40 PTO hp) 12% In line with the industry<br>2WD Tractors (40 < 100 PTO hp) 11% Less than the industry<br>2WD Tractors (100+ PTO hp) 5% More than the industry<br>4WD Tractors 18% A high single digit<br>Combines 11% More than the industry<br>Deere Dealer Inventories<br>U.S. and Canada Ag 2024 2023<br>2WD Tractors (100+ PTO hp) 30% 25%<br>Combines 16% 16%<br> As reported by the Association of Equipment Manufacturers<br> As reported to the Association of Equipment Manufacturers<br>* In units as a % of trailing 12 months retail sales, as reported to the Association of Equipment Manufacturers<br>32
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16 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Retail Sales<br>U.S. and Canada Deere<br>Selected Turf and Utility Equipment Up double digits<br>Construction and Forestry<br>First-in-the-Dirt<br>Settlements<br>High single digit<br>Single digit<br>January 2024 Retail Sales (Rolling 3 Months)<br>Retail Sales<br>Europe Ag Deere<br>Tractors Double digits<br>Combines Double digits<br>* Based on internal sales reports<br>33
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17 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Deere Use-of-Cash Priorities<br>SHARE<br>REPURCHASE<br>Manage the balance sheet, including liquidity, to support a rating that provides<br>access to low-cost and readily available short- and long-term funding<br>mechanisms (reflects the strategic nature of our financial services operation)<br>Fund value-creating investments in our businesses<br>Consistently and moderately raise dividend targeting a 25-35% payout ratio of<br>mid-cycle earnings<br>Consider share repurchase as a means to deploy excess cash to<br>shareholders, once above requirements are met<br>COMMITTED<br>TO “A” RATING<br>FUND OPERATING<br>& GROWTH NEEDS<br>COMMON STOCK<br>DIVIDEND<br>CASH FROM OPERATIONS<br>34
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18 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Great Leaps. For the Good of Everyone.<br>View the 2023 Business Impact Report<br>https://about.deere.com/en-us/sustainability<br>35
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19 John Deere	1Q 2024 Earnings Call	February 15, 2024<br>Deere & Company’s 2Q 2024 earnings call<br>is scheduled for 9:00 a.m. Central Time on<br>Thursday, 16 May 2024.<br>36
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