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: March 24, 2021

(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
8½% Debentures Due 2022	DE22	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 7.01Regulation FD Disclosure (Furnished herewith)

Beginning in fiscal year 2021, Deere & Company (the “Company”) implemented a new operating model and reporting structure. With this change, the Company’s agriculture and turf operations were divided into two new segments, which are described as follows:

The production and precision agriculture segment is responsible for defining, developing, and delivering global equipment and technology solutions to unlock customer value for production-scale growers of large grains, small grains, cotton, and sugar. Main products include large and certain mid-size tractors, combines, cotton pickers, sugarcane harvesters and loaders, and soil preparation, seeding, application and crop care equipment.

The small agriculture and turf segment is responsible for defining, developing, and delivering market-driven products to support mid-size and small growers and producers globally as well as turf customers. The operations are principally organized to support production systems for dairy and livestock, high-value crops, and turf and utility operators. Primary products include certain mid-size and small tractors, as well as hay and forage equipment, riding and commercial lawn equipment, golf course equipment, and utility vehicles.

There were no reporting changes for the construction and forestry and financial services segments. As a result, the Company has four reportable segments.

For informational purposes only, selected, recast segment financial data for the fiscal years ended November 1, 2020, November 3, 2019, and October 28, 2018, as well as the interim periods for fiscal year 2020 are furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information is not filed for purposes of the Securities Exchange Act of 1934 and is not deemed incorporated by reference by any general statements incorporating by reference this report or future filings into any filings under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent Deere & Company specifically incorporates the information by reference.

Item 9.01Financial Statements and Exhibits

(d)Exhibits


Number	Description of Exhibit
99.1	Selected Financial Data for New Operating Segments (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/ Todd E. Davies
		Todd E. Davies
		Secretary


Dated: March 24, 2021

Exhibit 99.1

Deere & Company

Selected, Recast Segment Financial Data

(In millions)

(Unaudited)

The following is selected, recast segment financial data, reflecting our new segment structure, for the years ended November 1, 2020, November 3, 2019, and October 28, 2018:

Segment Information – as previously reported


	2020		2019		2018
Net sales and revenues:
Agriculture & turf net sales	$	22,325	$	23,666	$	23,191
Construction & forestry net sales		8,947		11,220		10,160
Financial services revenues		3,589		3,621		3,252
Other revenues		679		751		755
Total net sales and revenues	$	35,540	$	39,258	$	37,358
Operating profit: *
Agriculture & turf	$	2,969	$	2,506	$	2,816
Construction & forestry		590		1,215		868
Financial services		746		694		792
Total operating profit		4,305		4,415		4,476
Reconciling items **		(472)		(310)		(381)
Income taxes		(1,082)		(852)		(1,727)
Net income attributable to Deere & Company	$	2,751	$	3,253	$	2,368

Segment Information – as recast


	2020		2019		2018
Net sales and revenues:
Production & precision ag net sales	$	12,962	$	13,364	$	13,086
Small ag & turf net sales		9,363		10,302		10,105
Construction & forestry net sales		8,947		11,220		10,160
Financial services revenues		3,589		3,621		3,252
Other revenues		679		751		755
Total net sales and revenues	$	35,540	$	39,258	$	37,358
Operating profit: *
Production & precision ag	$	1,969	$	1,729	$	1,897
Small ag & turf		1,000		777		919
Construction & forestry		590		1,215		868
Financial services		746		694		792
Total operating profit		4,305		4,415		4,476
Reconciling items **		(472)		(310)		(381)
Income taxes		(1,082)		(852)		(1,727)
Net income attributable to Deere & Company	$	2,751	$	3,253	$	2,368

* 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 of the financial services segment includes the effect of interest expense and foreign exchange gains and losses.

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

The following is selected, recast segment financial data, reflecting our new segment structure, for the interim periods of fiscal year 2020:

Segment Information – as previously reported


	Fiscal Year 2020
	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
Net sales and revenues:
Agriculture & turf net sales	$	4,486	$	5,968	$	5,672	$	6,198
Construction & forestry net sales		2,044		2,256		2,187		2,461
Financial services revenues		931		875		892		891
Other revenues		170		154		174		181
Total net sales and revenues	$	7,631	$	9,253	$	8,925	$	9,731
Operating profit: *
Agriculture & turf	$	373	$	794	$	942	$	860
Construction & forestry		93		96		205		196
Financial services		179		75		243		249
Total operating profit		645		965		1,390		1,305
Reconciling items **		(78)		(54)		(122)		(219)
Income taxes		(50)		(245)		(457)		(329)
Net income attributable to Deere & Company	$	517	$	666	$	811	$	757

Segment Information – as recast


	Fiscal Year 2020
	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
Net sales and revenues:
Production & precision ag net sales	$	2,507	$	3,365	$	3,289	$	3,801
Small ag & turf net sales		1,979		2,603		2,383		2,397
Construction & forestry net sales		2,044		2,256		2,187		2,461
Financial services revenues		931		875		892		891
Other revenues		170		154		174		181
Total net sales and revenues	$	7,631	$	9,253	$	8,925	$	9,731
Operating profit: *
Production & precision ag	$	218	$	568	$	605	$	578
Small ag & turf		155		226		337		282
Construction & forestry		93		96		205		196
Financial services		179		75		243		249
Total operating profit		645		965		1,390		1,305
Reconciling items **		(78)		(54)		(122)		(219)
Income taxes		(50)		(245)		(457)		(329)
Net income attributable to Deere & Company	$	517	$	666	$	811	$	757

The following is selected, recast segment financial data, reflecting our new segment structure, for the special items recorded in fiscal year 2020:

Employee-Separation Programs – as previously reported


	Fiscal Year 2020
	Agriculture		Construction		Financial
	& Turf		& Forestry		Services		Total
Cost of sales	$	82	$	22			$	104
Research and development expenses		47		8				55
Selling, administrative and general expenses		96		24	$	15		135
Other operating expenses								41
Total pretax expenses	$	225	$	54	$	15	$	335

Employee-Separation Programs – as recast


	Fiscal Year 2020
	Production &		Small Ag		Construction		Financial
	Precision Ag		& Turf		& Forestry		Services		Total
Cost of sales	$	51	$	31	$	22			$	104
Research and development expenses		29		18		8				55
Selling, administrative and general expenses		53		43		24	$	15		135
Other operating expenses										41
Total pretax expenses	$	133	$	92	$	54	$	15	$	335

Impairments and Other Charges – as previously reported


	Fiscal Year 2020
	Agriculture		Construction		Financial
	& Turf		& Forestry		Services		Total
Factory closure - Cost of sales	$	20					$	20
Long-lived asset impairments:
Cost of sales		13	$	80				93
SA&G expenses		4						4
Other operating expenses					$	32		32
Affiliate company impairments - Equity in income (loss) of unconsolidated affiliates				50				50
Total pretax impairments and closure costs	$	37	$	130	$	32	$	199

Impairments and Other Charges – as recast


	Fiscal Year 2020
	Production &		Small Ag		Construction		Financial
	Precision Ag		& Turf		& Forestry		Services		Total
Factory closure - Cost of sales			$	20					$	20
Long-lived asset impairments:
Cost of sales				13	$	80				93
SA&G expenses	$	2		2						4
Other operating expenses							$	32		32
Affiliate company impairments - Equity in income (loss) of unconsolidated affiliates						50				50
Total pretax impairments and closure costs	$	2	$	35	$	130	$	32	$	199