DEERE & CO, 10-K filed on 12/12/2024
Annual Report
v3.24.3
Document and Entity Information - USD ($)
12 Months Ended
Oct. 27, 2024
Nov. 29, 2024
Apr. 26, 2024
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Transition Report false    
Document Period End Date Oct. 27, 2024    
Entity File Number 1-4121    
Entity Registrant Name DEERE & CO    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 36-2382580    
Entity Address, Address Line One One John Deere Place    
Entity Address, City or Town Moline    
Entity Address, State or Province IL    
Entity Address, Postal Zip Code 61265    
City Area Code 309    
Local Phone Number 765-8000    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   271,575,282  
Entity Public Float     $ 108,321,022,524
Auditor Name DELOITTE & TOUCHE LLP    
Auditor Firm ID 34    
Auditor Location Chicago, Illinois    
Current Fiscal Year End Date --10-27    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000315189    
Amendment Flag false    
Common Stock      
Document Information [Line Items]      
Title of 12(b) Security Common stock, $1 par value    
Trading Symbol DE    
Security Exchange Name NYSE    
6.55% Debentures Due 2028      
Document Information [Line Items]      
Title of 12(b) Security 6.55% Debentures Due 2028    
Trading Symbol DE28    
Security Exchange Name NYSE    
v3.24.3
STATEMENTS OF CONSOLIDATED INCOME - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Net Sales and Revenues      
Net sales and revenues $ 51,716 $ 61,251 $ 52,577
Costs and Expenses      
Research and development expenses 2,290 2,177 1,912
Selling, administrative and general expenses 4,840 4,595 3,863
Interest expense 3,348 2,453 1,062
Other operating expenses 1,257 1,292 1,275
Total 42,510 48,232 43,450
Income of Consolidated Group before Income Taxes 9,206 13,019 9,127
Provision for income taxes 2,094 2,871 2,007
Income of Consolidated Group 7,112 10,148 7,120
Equity in income (loss) of unconsolidated affiliates (24) 7 10
Net Income 7,088 10,155 7,130
Less: Net loss attributable to noncontrolling interests (12) (11) (1)
Net Income Attributable to Deere & Company $ 7,100 $ 10,166 $ 7,131
Per Share Data      
Basic (in dollars per share) $ 25.73 $ 34.8 $ 23.42
Diluted (in dollars per share) 25.62 34.63 23.28
Dividends declared (in dollars per share) 5.88 5.05 4.36
Dividends paid (in dollars per share) $ 5.76 $ 4.83 $ 4.28
Average Shares Outstanding (in millions of shares)      
Basic (in shares) 276.0 292.2 304.5
Diluted (in shares) 277.1 293.6 306.3
Net Sales      
Net Sales and Revenues      
Net sales and revenues $ 44,759 $ 55,565 $ 47,917
Cost of Sales      
Cost of sales 30,775 37,715 35,338
Finance and Interest Income      
Net Sales and Revenues      
Net sales and revenues 5,759 4,683 3,365
Other Income      
Net Sales and Revenues      
Net sales and revenues $ 1,198 $ 1,003 $ 1,295
v3.24.3
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME      
Net Income $ 7,088 $ 10,155 $ 7,130
Other Comprehensive Income (Loss), Net of Income Taxes      
Retirement benefits adjustment (429) (456) 645
Cumulative translation adjustment (134)    
Cumulative translation adjustment   443 (1,116)
Unrealized gain (loss) on derivatives (64) (29) 63
Unrealized gain (loss) on debt securities 36 (16) (109)
Other Comprehensive Loss, Net of Income Taxes (591) (58) (517)
Comprehensive Income of Consolidated Group 6,497 10,097 6,613
Less: Comprehensive loss attributable to noncontrolling interests (11) (2) (16)
Comprehensive Income Attributable to Deere & Company $ 6,508 $ 10,099 $ 6,629
v3.24.3
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
ASSETS    
Cash and cash equivalents $ 7,324 $ 7,458
Marketable securities 1,154 946
Trade accounts and notes receivable - net 5,326 7,739
Other receivables 2,545 2,623
Equipment on operating leases - net 7,451 6,917
Inventories 7,093 8,160
Property and equipment - net 7,580 6,879
Goodwill 3,959 3,900
Other intangible assets - net 999 1,133
Retirement benefits 2,921 3,007
Deferred income taxes 2,086 1,814
Other assets 2,906 2,503
Assets held for sale 2,944  
Total Assets 107,320 104,087
LIABILITIES    
Short-term borrowings 13,533 17,939
Short-term securitization borrowings 8,431 6,995
Accounts payable and accrued expenses 14,543 16,130
Deferred income taxes 478 520
Long-term borrowings 43,229 38,477
Retirement benefits and other liabilities 2,354 2,140
Liabilities held for sale 1,827  
Total liabilities 84,395 82,201
Commitments and contingencies (Note 20)
Redeemable noncontrolling interest (Note 3) 82 97
STOCKHOLDERS' EQUITY    
Common stock, $1 par value (authorized - 1,200,000,000 shares; issued - 536,431,204 shares in 2024 and 2023), at paid-in amount 5,489 5,303
Common stock in treasury, 264,678,912 shares in 2024 and 254,846,927 shares in 2023, at cost (35,349) (31,335)
Retained earnings 56,402 50,931
Accumulated other comprehensive income (loss) (3,706) (3,114)
Total Deere & Company stockholders' equity 22,836 21,785
Noncontrolling interests 7 4
Total stockholders' equity 22,843 21,789
Total Liabilities and Stockholders' Equity 107,320 104,087
Unrestricted    
ASSETS    
Financing receivables - net 44,309 43,673
Securitized    
ASSETS    
Financing receivables - net $ 8,723 $ 7,335
Location of liability for pledged asset Short-term securitization borrowings Short-term securitization borrowings
Other assets $ 187 $ 152
Total Assets $ 8,910 $ 7,487
v3.24.3
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Oct. 27, 2024
Oct. 29, 2023
CONSOLIDATED BALANCE SHEETS    
Common stock, par value (in dollars per share) $ 1 $ 1
Common stock, authorized shares 1,200,000,000 1,200,000,000
Common stock, issued shares 536,431,204 536,431,204
Common stock in treasury, shares 264,678,912 254,846,927
v3.24.3
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Cash Flows from Operating Activities      
Net income $ 7,088 $ 10,155 $ 7,130
Adjustments to reconcile net income to net cash provided by operating activities:      
Provision (credit) for credit losses 310 (16) 192
Provision for depreciation and amortization 2,118 2,004 1,895
Impairments and other adjustments 125    
Impairments and other adjustments   191  
Impairments and other adjustments     88
Share-based compensation expense 208 130 85
Gain on remeasurement of previously held equity investment     (326)
Credit for deferred income taxes (294) (790) (66)
Changes in assets and liabilities:      
Receivables related to sales 421 (4,253) (2,483)
Inventories 788 279 (2,091)
Accounts payable and accrued expenses (1,040) 830 1,133
Accrued income taxes payable/receivable (123) (23) 141
Retirement benefits (227) (170) (1,015)
Other (143) 252 16
Net cash provided by operating activities 9,231 8,589 4,699
Cash Flows from Investing Activities      
Collections of receivables (excluding receivables related to sales) 25,162 23,051 20,907
Proceeds from maturities and sales of marketable securities 832 186 79
Proceeds from sales of equipment on operating leases 1,929 1,981 2,093
Cost of receivables acquired (excluding receivables related to sales) (28,816) (28,772) (26,300)
Acquisitions of businesses, net of cash acquired   (82) (498)
Purchases of marketable securities (1,055) (491) (250)
Purchases of property and equipment (1,640) (1,498) (1,134)
Cost of equipment on operating leases acquired (3,162) (2,970) (2,654)
Collateral on derivatives - net 413 (12) (642)
Other (127) (142) (86)
Net cash used for investing activities (6,464) (8,749) (8,485)
Cash Flows from Financing Activities      
Net proceeds (payments) in short-term borrowings (original maturities three months or less) (1,856) 4,008 3,852
Proceeds from borrowings issued (original maturities greater than three months) 18,096 15,429 10,358
Payments of borrowings (original maturities greater than three months) (13,232) (7,913) (8,445)
Repurchases of common stock (4,007) (7,216) (3,597)
Dividends paid (1,605) (1,427) (1,313)
Other (113) (73) (29)
Net cash provided by (used for) financing activities (2,717) 2,808 826
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash (37) 31 (224)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 13 2,679 (3,184)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year 7,620 4,941 8,125
Cash, Cash Equivalents, and Restricted Cash at End of Year 7,633 7,620 4,941
Components of Cash, Cash Equivalents, and Restricted Cash      
Cash and cash equivalents 7,324 7,458 4,774
Cash, cash equivalents, and restricted cash (Assets held for sale) 116    
Restricted cash (Other assets) $ 193 $ 162 $ 167
Balance sheet location of restricted cash Other assets Other assets Other assets
Total Cash, Cash Equivalents, and Restricted Cash $ 7,633 $ 7,620 $ 4,941
v3.24.3
STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY - USD ($)
$ in Millions
Common Stock
Treasury Stock
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Noncontrolling Interests
Total
Balance at Oct. 31, 2021 $ 5,054 $ (20,533) $ 36,449 $ (2,539) $ 3 $ 18,434
Increase (Decrease) in Stockholders' Equity            
Net income     7,131   2 7,133
Other comprehensive income (loss)       (517)   (517)
Repurchases of common stock   (3,597)       (3,597)
Treasury shares reissued   36       36
Dividends declared     (1,327)   (2) (1,329)
Share based awards and other 111   (6)     105
Balance at Oct. 30, 2022 5,165 (24,094) 42,247 (3,056) 3 20,265
Increase (Decrease) in Redeemable Noncontrolling Interest            
Acquisitions (Note 3)           104
Net loss           (3)
Other comprehensive income (loss)           (15)
Other           6
Redeemable Noncontrolling Interest - Balance at Oct. 30, 2022           92
Increase (Decrease) in Stockholders' Equity            
Net income     10,166   2 10,168
Other comprehensive income (loss)       (58)   (58)
Repurchases of common stock   (7,274)       (7,274)
Treasury shares reissued   33       33
Dividends declared     (1,472)   (5) (1,477)
Share based awards and other 138   (10)   4 132
Balance at Oct. 29, 2023 5,303 (31,335) 50,931 (3,114) 4 21,789
Increase (Decrease) in Redeemable Noncontrolling Interest            
Net loss           (13)
Other comprehensive income (loss)           9
Other           9
Redeemable Noncontrolling Interest - Balance at Oct. 29, 2023           97
Increase (Decrease) in Stockholders' Equity            
Net income     7,100   2 7,102
Other comprehensive income (loss)       (592)   (592)
Repurchases of common stock   (4,044)       (4,044)
Treasury shares reissued   30       30
Dividends declared     (1,622)   (2) (1,624)
Share based awards and other 186   (7)   3 182
Balance at Oct. 27, 2024 $ 5,489 $ (35,349) $ 56,402 $ (3,706) $ 7 22,843
Increase (Decrease) in Redeemable Noncontrolling Interest            
Net loss           (14)
Other comprehensive income (loss)           1
Other           8
Noncontrolling interest redemption (Note 4)           (10)
Redeemable Noncontrolling Interest - Balance at Oct. 27, 2024           $ 82
v3.24.3
ORGANIZATION AND CONSOLIDATION
12 Months Ended
Oct. 27, 2024
ORGANIZATION AND CONSOLIDATION  
ORGANIZATION AND CONSOLIDATION

1. ORGANIZATION AND CONSOLIDATION

References to “Deere & Company,” “John Deere,” “Deere,” “we,” “us,” or “our” include our consolidated subsidiaries, unless otherwise stated. We manage our business through the following operating segments: production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (John Deere Financial or FS). References to “equipment operations” include PPA, SAT, and CF, while references to “agriculture and turf” include both PPA and SAT.

Principles of Consolidation

The consolidated financial statements represent the consolidation of all companies in which Deere & Company has a controlling interest. Certain variable interest entities (VIEs) are consolidated since we are the primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the VIEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. We consolidate certain VIEs related to retail note securitizations (see Note 12).

We record our investment in each unconsolidated affiliated company (20 to 50 percent ownership) at cost, plus or minus our share of the profit or loss after acquisition, and further reduced for any dividends. Other investments (less than 20 percent ownership) are recorded at cost.

Fiscal Year

We use a 52/53 week fiscal year ending on the last Sunday in the reporting period, which generally occurs near the end of October. An additional week is included in the fourth fiscal quarter every five or six years to realign our fiscal quarters with the calendar. The fiscal year ends for 2024, 2023, and 2022 were October 27, 2024, October 29, 2023, and October 30, 2022, respectively. Fiscal years 2024, 2023, and 2022 contained 52 weeks. Unless otherwise stated, references to particular years, quarters, or months refer to our fiscal years and the associated periods in those fiscal years.

Presentation of Amounts

All amounts are presented in millions of dollars, unless otherwise specified. Certain prior period amounts have been reclassified to conform to current period presentation.

Argentina

We have equipment operations and financial services operations in Argentina. The U.S. dollar has historically been the functional currency for our Argentina operations, as our business is indexed to the U.S. dollar due to the highly inflationary conditions. Argentine peso-denominated monetary assets and liabilities are remeasured at each balance sheet date using the official currency exchange rate. The Argentine government has certain capital and currency controls that restrict our ability to access U.S. dollars in Argentina and remit earnings from our Argentine operations. As of October 27, 2024 and October 29, 2023, our net investment in Argentina was $826 and $766, respectively. Net sales and revenues from our Argentine operations represented approximately 1 percent of consolidated net sales and revenues for 2024, 2023, and 2022. We have employed mechanisms to convert Argentine pesos into U.S. dollars to the extent possible. These mechanisms are short-term in nature, leaving us exposed to long-term currency fluctuations. As of October 27, 2024 and October 29, 2023, the gross peso exposure was $69 and $30, respectively, while the net peso exposure (after considering the impact of short-term hedges) was $14 and $5, respectively. In 2024, we invested in U.S. dollar denominated bonds issued by the central bank of Argentina. The bonds are recorded in “Marketable securities” and classified as “International debt securities.” These bonds can be held until maturity or sold in secondary markets outside of Argentina to settle intercompany debt.

v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS
12 Months Ended
Oct. 27, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS

The following are significant accounting policies in addition to those included in other notes to the consolidated financial statements.

Use of Estimates in Financial Statements

Certain accounting policies require management to make estimates and assumptions in determining the amounts reflected in the financial statements and related disclosures. Actual results could differ from those estimates.

Revenue Recognition

General

Sales of equipment and service parts are recognized when we transfer control of the good to the independent customer, which generally occurs upon shipment. In most situations, the independent customer is a dealer, which subsequently sells the equipment and service parts purchased from us to a retail customer, who can finance the equipment with the financial services segment or another source of financing. In some situations, we sell directly to a retail customer. The term “customer” includes both dealers and retail customers to whom we make direct sales.

Interest-Free Periods and Past-Due Interest

We charge dealers interest on outstanding balances from the earlier of when goods are sold to a retail customer by the dealer or the expiration of the interest-free period granted at the time of the sale to the dealer. Interest-free periods are determined based on the type of equipment sold and the time of year of the sale. These periods range from one to twelve months for most equipment. Interest-free periods may not be extended. Interest charged may not be forgiven, and past due interest rates are charged at higher rates. If the interest-free or below market interest rate period exceeds one year, we adjust the expected sales revenue for the effects of the time value of money using a current market interest rate. The revenue related to the financing component is recognized in “Finance and interest income” using the interest method. We do not adjust the sales price to account for a financing component if the expected interest-free or below market period is one year or less.

Right of Return

Generally, no right of return exists on sales of equipment. Dealers cannot cancel purchases after we recognize a sale and are responsible for payment even if the equipment is not sold to a retail customer. Service parts and certain attachment returns are estimable and accrued at the time a sale is recognized. The estimated returns are based on historical return rates, current dealer inventory levels, and current economic conditions. The estimated returns are recorded in “Other assets” for the inventory value of estimated returns, adjusted for restocking fees. The estimated dealer refund liability, adjusted for restocking fees, is recorded in “Accounts payable and accrued expenses.”

Remanufacturing

We remanufacture used engines and components (cores) that are sold to dealers and retail customers for maintenance and repair parts. Revenue for remanufactured components is recognized using the same criteria as other parts sales. When a remanufactured part is sold, we collect a deposit that is repaid if the customer returns a core that meets certain specifications within a defined time period. The deposit received from the customer is recognized as a liability in “Accounts payable and accrued expenses” and the used component that is expected to be returned is recognized in “Other assets.” When a customer returns a core, the deposit is repaid, the liability reversed, and the returned core is recorded in inventory to be remanufactured and sold to

another customer. If a core is not returned within the required time, the deposit is recognized as revenue in “Net sales,” and the cost of the core is recorded as an expense in “Cost of sales.”

Bundled Technology

Certain equipment is sold with precision guidance, telematics, and other information gathering and analyzing capabilities. These technology solutions require hardware, software, and may include an obligation to provide services for a period of time. These solutions are mostly bundled with the sale of the equipment but can also be purchased or renewed separately. The revenue related to the hardware and embedded software is recognized at the time of the equipment sale and recorded in “Net sales.” The revenue for the future services and usage-based software is deferred and recognized over the service period. The deferred revenue is recorded as a contract liability in “Accounts payable and accrued expenses.”

Financing Revenue and Origination Costs

Financing revenue and deferred costs on the origination of financing receivables are recorded over the lives of the related receivables using the interest method. Deferred costs are recognized as a reduction to “Finance and interest income.” Income and deferred costs on the origination of operating leases are recognized on a straight-line basis over the scheduled lease terms in “Finance and interest income.”

Sales Incentives

We offer sales incentive programs to promote the sale of our products from the dealer to the retail customer. At the time of the sale to a dealer, we record an estimated cost for the sales incentive programs as a reduction to the sales price. The estimated cost is based on historical data, announced and expected incentive programs, field inventory levels, and forecasted sales volumes. The final cost of these programs is determined at the end of the measurement period for volume-based incentives or when the dealer sells the equipment to a retail customer. One type of sales incentive program offered to dealers is pool funds in which we award dealers funds based on new equipment sales. Dealers can use these funds to incentivize sales from the dealer to the end customer. Pool funds, as well as some other incentive programs, are recorded in “Trade accounts and notes receivable – net” as we have the contractual right and the intent to offset against the existing dealer receivables. Actual cost differences from the original cost estimate are recognized in “Net sales.”

Product Warranties

For equipment and service parts sales, we provide a standard warranty. At the time a sale is recognized, the estimated future warranty costs are recorded. The warranty liability is estimated based on historical warranty claims rate experience and the estimated amount of equipment still under warranty. The historical claims rate is primarily determined by a review of five-year claims costs while also taking into consideration current quality developments. The amount of equipment still under warranty is estimated based on dealer inventories and retail sales.

We also offer extended warranty arrangements for purchase at the customer’s option. The premiums for extended warranties are recognized in “Other income” primarily in proportion to the costs expected to be incurred over the contract period. The unamortized extended warranty premiums (deferred revenue) are recorded in “Accounts payable and accrued expenses” (see Note 18).

Sales and Transaction Taxes

We collect and remit taxes for revenue producing transactions as necessary based on various tax laws. These taxes include sales, use, value-added, and some excise taxes. We elected to exclude these taxes from the determination of the sales price. These taxes are not included in revenues.

Contract Costs

Incremental costs of obtaining an equipment revenue contract are recognized as an expense when incurred since the amortization period would be one year or less.

Advertising Costs

Advertising costs are charged to “Selling, administrative and general expenses” as incurred. Advertising costs were $230 in 2024, $244 in 2023, and $227 in 2022.

Depreciation and Amortization

Property and equipment, capitalized software, and other intangible assets are stated at cost less accumulated depreciation or amortization. These assets are depreciated over their estimated useful lives using the straight-line method. Equipment on operating leases is depreciated over the terms of the leases using the straight-line method. Property and equipment expenditures for new and revised products, increased capacity, and the replacement or major renewal of significant items are capitalized. Expenditures for maintenance, repairs, and minor renewals are charged to expense as incurred.

Cash and Cash Equivalents

We consider investments with purchased maturities of three months or less to be cash equivalents.

Receivables and Allowances

All financing and trade receivables are reported on the balance sheet at outstanding principal and accrued interest, adjusted for:

write-offs,
allowance for credit losses, and
unamortized deferred fees or costs on originated financing receivables.

The allowance is a reduction to the receivable balances, and the provision is recorded in “Selling, administrative and general expenses.” The allowance for credit losses is an estimate of the credit losses expected over the life of our receivable portfolio. Non-performing receivables are included in the estimate of expected credit losses. The allowance is measured on a collective basis for receivables with similar risk characteristics. Receivables that do not share risk characteristics are evaluated on an individual basis. Risk characteristics include:

finance product category,

market,
geography,
credit risk, and
remaining balance.

We utilize the following loss forecast models to estimate expected credit losses:

Linear regression models are used for large and complex retail customer receivable pools, which represent more than 90 percent of retail customer receivables. These statistical models utilize independent variables, or predictive features, to estimate lifetime default rates, which are subsequently adjusted for expected recoveries to arrive at lifetime credit loss estimates. Independent variables included in the models vary by product, but can include credit quality at time of application, remaining account balance, delinquency status, and various economic factors, such as commodity prices, employment levels, and housing data. The economic factors include forward-looking conditions over our reasonable and supportable forecast period. In the fourth quarter of 2024, we transitioned from the use of transition matrix models to linear regression models to estimate expected credit losses. This change in methodology did not have a material impact on our consolidated financial statements.
Weighted average remaining maturity (WARM) models are used for smaller and less complex retail customer receivable pools.
Historical loss rate models are used on wholesale receivables, with consideration of current economic conditions and dealer financial risk.

Management reviews each model’s output quarterly, and qualitative adjustments are incorporated as necessary (see Note 11).

Long-Lived Assets, Goodwill, and Other Intangible Asset Impairment

We evaluate the carrying value of long-lived assets (including equipment on operating leases, property and equipment, goodwill, and other intangible assets) when events or circumstances warrant such a review. Goodwill and unamortized intangible assets are tested for impairment annually at the end of the third quarter of each fiscal year, and more often if events or circumstances may have caused the fair value to fall below the carrying value. If the carrying value of the long-lived asset is considered impaired, the long-lived asset is written down to its fair value (see Notes 4 and 25).

Goodwill is allocated and reviewed for impairment by reporting unit. Goodwill is allocated to the reporting unit in which the business that created the goodwill resides. To test for goodwill impairment, the carrying value of each reporting unit is compared with its fair value. If the carrying value of the goodwill is considered impaired, the impairment is measured as the reporting unit’s carrying value minus the fair value.

Derivative Financial Instruments

It is our policy to use derivative transactions only to manage exposures from the normal course of business. We do not execute derivative transactions for the purpose of creating speculative positions or trading. Our financial services operations have interest rate and foreign currency exposure between (a) the receivable or lease portfolio and (b) how those portfolios are funded. We also have foreign currency exposures at some of our foreign and domestic operations related to buying, selling, and financing in currencies other than the functional currencies. In addition, we have interest rate and foreign currency exposure at certain equipment operations units for sales incentive programs.

All derivatives are recorded at fair value on the consolidated balance sheets. Cash collateral received or paid is not offset against the derivative fair values on the balance sheets. The cash flows from the derivative contracts are recorded in operating activities in the statements of consolidated cash flows. Each derivative is designated as a cash flow hedge, fair value hedge, or remains undesignated.

Changes in the fair value of derivatives are recorded as follows:

Cash flow hedges: Recorded in other comprehensive income (OCI) and reclassified to the income statement when the effects of the item being hedged are recognized in the income statement. These amounts offset the effects of interest rate changes on the related borrowings in interest expense.
Fair value hedges: Recorded in interest expense, and the gains or losses are offset by the fair value gains or losses on the hedged items (fixed-rate borrowings), which are also recorded in interest expense.
Derivatives not designated as hedging instruments: Changes in the fair value of undesignated hedges are recognized as they occur in the income statement.

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 for 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 (see Note 26).

Foreign Currency Translation

The functional currencies for most of our foreign operations are their respective local currencies. The assets and liabilities of these operations are translated into U.S. dollars using the exchange rates at the end of the period. The revenues and expenses are translated at weighted-average rates for the period. The gains or losses from these translations are recorded in OCI.

Foreign currency gains or losses and foreign exchange components of derivative contracts are included in net income, with trade flow activity recorded in “Cost of sales,” sales incentive activity recorded in “Net sales,” and all other activity recorded in “Other operating expenses.” The pretax net loss for foreign exchange in 2024, 2023, and 2022 was $63, $159, and $175, respectively.

New Accounting Pronouncements Adopted

We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. We adopted the following standards in 2024, none of which had a material effect on our consolidated financial statements:

No. 2022-04 — Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations

No. 2022-02 — Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures

No. 2022-01 — Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method

No. 2021-08 — Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

Accounting Pronouncements to be Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which expands disclosures about specific expense categories presented on the face of the income statement. The effective date of the ASU is fiscal year 2028. We are assessing the effect of this update on our related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and cash income taxes paid both in the U.S. and foreign jurisdictions. The effective date of the ASU is fiscal year 2026. We are assessing the effect of this update on our related disclosures.

We will also adopt the following standards in future periods, none of which are expected to have a material effect on our consolidated financial statements.

No. 2024-04 — Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments

No. 2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

No. 2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative

No. 2023-05 — Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

No. 2022-03 — Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions

v3.24.3
ACQUISITIONS AND DISPOSITIONS
12 Months Ended
Oct. 27, 2024
ACQUISITIONS AND DISPOSITIONS  
ACQUISITIONS AND DISPOSITIONS

3. ACQUISITIONS AND DISPOSITIONS

During the presented periods, we completed acquisitions to support our Smart Industrial Operating Model and Leap Ambitions, which focus on advancing our capabilities in technology.

Acquisitions

2023 Acquisitions

In 2023, we acquired SparkAI Inc. (Spark AI) and Smart Apply, Inc. (Smart Apply) to accelerate the integration of smart technology innovation in our products. The combined cost of these acquisitions was $82, net of cash acquired of $2. Spark AI was assigned to the PPA segment, while Smart Apply was assigned to the SAT segment. Most of the purchase price for these acquisitions was allocated to goodwill.

2022 Acquisitions

Kreisel

In February 2022, we acquired majority ownership in Kreisel Electric Inc. (Kreisel), a pioneer in the development of immersion-cooled battery technology. The Austrian company manufactures high-density, high-durability electric battery modules and packs for high-performance and off-highway applications and has created a battery-buffered, high-powered charging infrastructure platform.

The transaction includes a call option to purchase the remaining ownership interest in Kreisel in 2027. The minority interest holders also have a put option that would require us to purchase the holders’ ownership interests in 2027. The put and call options cannot be separated from the noncontrolling interest. Due to the redemption features, the minority interest is classified as redeemable noncontrolling interest in our consolidated balance sheets.

The total cash purchase price was $276, consisting of $253 for the acquired equity interests, $21 to reduce the option price, and customary working capital adjustments, net of cash acquired. The fair values assigned to the assets and liabilities of the acquired entity, which are based on information as of the acquisition date and available at October 30, 2022, follows:

February 2022

Trade accounts and notes receivable

$

2

Other receivables

11

Inventories

11

Property and equipment

11

Goodwill

218

Other intangible assets

178

Other assets

6

Total assets

$

437

Accounts payable and accrued expenses

$

26

Deferred income taxes

39

Redeemable noncontrolling interest

$

96

The identifiable intangible assets were related to technology, trade name, and customer relationships with a weighted average amortization period of 12 years. The goodwill is not deductible for income tax purposes. Kreisel is allocated amongst the PPA, SAT, and CF segments.

Excavator Factories

In March 2022, we acquired full ownership of three former Deere-Hitachi joint venture factories and began new license and supply agreements with Hitachi Construction Machinery Co., Ltd. (Hitachi). The two companies also ended their joint venture manufacturing and marketing agreements. The former joint venture factories continue to manufacture Deere-branded construction excavators and forestry equipment. Through a new supply agreement with Hitachi, Deere continues to offer a full portfolio of excavators. Deere’s marketing arrangement for Hitachi-branded construction excavators and mining equipment in the Americas ended with Hitachi assuming distribution and support of these products. John Deere dealers may continue to support their existing field population of Hitachi-branded excavators.

With the completion of this acquisition, we now have complete control over the excavator design, product, and feature updates, making it possible to more rapidly respond to customer requirements and integrate excavators with other construction products in the John Deere product portfolio. We can leverage technology developed for other product lines and production systems across the enterprise and extend those advanced solutions to Deere-designed excavators, strengthening the entire product portfolio. The total invested capital was as follows:

March 2022

Cash consideration for factories

$

205

Cash consideration for license agreement

70

Deferred consideration

271

Total purchase price consideration

546

Less: Cash obtained

(187)

Less: Settlement of intercompany balances

(113)

Net purchase price consideration

246

Fair value of previously held equity investment

444

Total invested capital

$

690

The total purchase price consideration includes deferred consideration that will be paid as we purchase Deere-branded excavators, components, and service parts from Hitachi under the new supply agreement with a duration that ranges from 5 to 30 years. The deferred consideration represents the price increases under the new supply arrangement. See Note 25 for fair value measurement information. Excluding inflation adjustments, the price increases for products to be acquired by us from Hitachi are as much as 27 percent higher than the prior supply arrangement. We financed the acquisition and associated transaction expenses from cash on hand. The fair value of the previously held equity investment created a non-cash gain of $326 (pretax and after-tax), which was recorded in “Other income” and included in the CF segment’s operating profit.

Prior to the acquisition, we purchased Deere- and Hitachi-branded excavators, components, and parts from the Deere-Hitachi joint venture factories for sale to John Deere dealers. These purchases were included in “Cost of sales,” while the sales to John Deere dealers were included in “Net sales.” Cost of sales also included profit-sharing payments to Hitachi in accordance with the previous

marketing agreements. Following the acquisition, Net sales only includes the sale of Deere-branded excavators to John Deere dealers, while Cost of sales reflects market pricing to purchase and manufacture excavators, as well as the related components and service parts.

The fair values assigned to the assets and liabilities of the acquired factories, which are based on information as of the acquisition date and available at October 30, 2022, follow:

March 2022

Other receivables

$

29

Inventories

286

Property and equipment

180

Goodwill

529

Other intangible assets

70

Deferred income taxes

56

Other assets

3

Total assets

$

1,153

Accounts payable and accrued expenses

$

300

Long-term borrowings

163

Total liabilities

$

463

The identifiable intangible assets were related to technology with a 10-year amortization period. The goodwill is not deductible for income tax purposes. The excavator factories are reported in the CF segment.

Other Acquisitions

In 2022, we acquired AgriSync Inc. (AgriSync), a technology service provider; an 80 percent stake in both SureFire Ag Systems, Inc. and SureFire Electronics, LLC, renamed after acquisition and collectively referred to as SurePoint Ag Systems, Inc. (SurePoint), which design and manufacture liquid fertilizer application and spray tendering systems; an equity method investment in GUSS Automation LLC (GUSS Automation), a pioneer in semi-autonomous orchard and vineyard sprayers; LGT, LLC (Light), which specializes in depth sensing and camera-based perception for autonomous vehicles; and an equity method investment in InnerPlant, Inc. (InnerPlant), an early-stage biotech company. The combined cost of these acquisitions was $134, net of cash acquired of $3. The asset and liability fair values at the respective acquisition dates follow:

October 2022

Trade accounts and notes receivable

$

8

Inventories

8

Property and equipment

4

Goodwill

53

Other intangible assets

21

Other assets

60

Total assets

$

154

Accounts payable and accrued expenses

$

6

Deferred income taxes

5

Total liabilities

$

11

Redeemable noncontrolling interest

$

9

The identifiable intangible assets were related to trade name, technology, and customer relationships with a weighted average amortization period of 7 years. AgriSync was allocated amongst the PPA, SAT, and CF segments, while SurePoint, Light, and InnerPlant were allocated to the PPA segment. GUSS Automation was assigned to the SAT segment.

Dispositions

In October 2023, we sold our roadbuilding business in Russia. At the time of the sale, total assets were $32, consisting primarily of restricted cash, total liabilities were $1, and the cumulative translation loss was $11. Total proceeds from the sale include $16 of cash and $8 of deferred consideration. A pretax and after-tax loss of $18 was recorded in “Other operating expenses” in the CF segment. As of October 27, 2024, our remaining investments in Russia were not material.

In March 2023, we sold our financial services business in Russia (registered in Russia as a leasing company) to Insight Investment Group. The total proceeds, net of restricted cash sold, were $36. The operations were included in the financial services operating segment through the date of sale. At the disposal date, the total assets were $31, consisting primarily of financing receivables, the total liabilities were $5, and the cumulative translation loss was $10. In the first quarter of 2023, we reversed the allowance for credit losses and recorded a valuation allowance on the assets held for sale in “Selling, administrative and general expenses.” We did not incur additional gains or losses upon disposition.

v3.24.3
SPECIAL ITEMS
12 Months Ended
Oct. 27, 2024
SPECIAL ITEMS  
SPECIAL ITEMS

4. SPECIAL ITEMS

We were impacted by the following items.

2024 Special Items

Legal Settlements

In 2024, we reached legal settlements concerning patent infringement claims. As a result of these settlements, we recognized a total of $57 pretax gain ($45 after-tax) in "Other income," providing a benefit of $17 to PPA and $40 to CF. These settlements resolve the disputes without any admission of liability by the parties involved. We believe that these settlements enhance our ability to protect our intellectual property and reinforce our commitment to innovation and technological advancement.

Impairment

In the fourth quarter of 2024, we recorded a non-cash charge of $28 pretax and after-tax in “Equity in income (loss) of unconsolidated affiliates” for an other than temporary decline in value of an investment recorded in SAT. See Note 25 for fair value measurement information.

Employee-Separation Programs

In the third quarter of 2024, we implemented employee-separation programs for our salaried workforce in several geographic areas, including the United States, Europe, Asia, and Latin America. The programs’ main purpose was to help meet our strategic priorities while reducing overlap and redundancy in roles and responsibilities. The programs were largely involuntary in

nature with the expense recorded when management committed to a plan, the plan was communicated to the employees, and the employees were not required to provide service beyond the legal notification period. For the limited voluntary employee-separation programs, the expense was recorded in the period in which the employee irrevocably accepted a separation offer.

The programs’ total pretax expenses are estimated to be approximately $165. In 2024, we recorded $157 pretax expenses ($124 after-tax) related to the programs, of which $130 was paid in 2024 and $27 is expected to be paid in 2025. The remaining expenses are associated with programs in international locations and are expected to be recorded in 2025.

The programs’ pretax expenses in 2024 were as follows:

PPA

SAT

CF

FS

Total

Employee-Separation Programs:

Cost of sales

$

21

$

11

$

8

$

40

Research and development expenses

22

9

2

33

Selling, administrative and general expenses

34

23

12

$

10

79

Total operating profit decrease

$

77

$

43

$

22

$

10

$

152

Non-operating profit expenses*

5

Total

$

157

*    Relates primarily to corporate expenses.

Banco John Deere S.A.

In August 2024, we entered into a joint venture agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become 50 percent owner of our wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD is included in our financial services segment and finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce our incremental risk as we continue to grow in the Brazilian market. On the transaction date, which is expected to occur in the first half of 2025, Bradesco will contribute capital equal to our equity investment in BJD. We will retain a 50 percent equity interest in BJD and expect to report the results of the joint venture as an equity investment in unconsolidated affiliates.

The BJD business was reclassified as held for sale in the third quarter of 2024, as the held for sale criteria was met. A reversal of $38 in allowance for credit losses was recorded in the third quarter. At October 27, 2024, a $97 valuation allowance was recorded on the assets held for sale, which was presented in “Impairments and other adjustments” in the statements of consolidated cash flows. The net impact of these entries was a pretax and after-tax loss of $59 recorded in “Selling, administrative and general expenses.”

The major classes of the total consolidated assets and liabilities of BJD classified as held for sale and liabilities of BJD to other intercompany parties at October 27, 2024 follows. See Note 25 for fair value measurement information.

October 2024

Cash and cash equivalents

$

115

Trade accounts and notes receivable – net

176

Financing receivables – net

2,693

Deferred income taxes

36

Other miscellaneous assets*

21

Valuation allowance

(97)

Assets held for sale

$

2,944

Short-term borrowings

$

534

Accounts payable and accrued expenses

118

Long-term borrowings

1,174

Retirement benefits and other liabilities

1

Liabilities held for sale

$

1,827

Total intercompany payables

$

654

*    Includes $1 restricted cash balance.

Redeemable Noncontrolling Interest

In the third quarter of 2024, we exercised our right to purchase the remaining 20 percent interest in SurePoint. The arrangement was accounted for as an equity transaction with no gain or loss recorded in the statements of consolidated income.

2023 Special Items

Sale of Russian Roadbuilding Business

In October 2023, we sold our Russian roadbuilding business, recognizing a loss of $18 (pretax and after-tax). The loss was recorded in “Other operating expenses” in the construction and forestry operations.

Brazil Tax Ruling

In the third quarter of 2023, the Brazil Superior Court of Justice published a favorable tax ruling regarding taxability of local incentives, which allowed us to record a $243 reduction in the provision for income taxes and $47 of interest income.

Financial Services Financing Incentives Correction

In the second quarter of 2023, we corrected the accounting treatment for financing incentives offered to John Deere dealers, which impacted the timing of expense recognition and the presentation of incentive costs in the consolidated financial statements. The cumulative effect of this correction, $173 pretax ($135 after-tax), was recorded in “Selling, administrative and general expenses” in the second quarter of 2023. Prior period results for Deere & Company were not restated, as the adjustment was considered immaterial to our financial statements.

Summary of 2024 and 2023 Special Items

The following table summarizes the operating profit impact of the special items recorded in 2024 and 2023.

PPA

SAT

CF

FS

Total

2024 Expense (benefit)

Legal settlements

$

(17)

$

(40)

$

(57)

Impairment

$

28

28

Employee-separation programs

77

43

22

$

10

152

BJD measurement

59

59

Total expense (benefit)

60

71

(18)

69

182

2023 Expense

Russian roadbuilding sale

18

18

Financing incentives correction

173

173

Total expense

18

173

191

Year over year change

$

60

$

71

$

(36)

$

(104)

$

(9)

2022 Special Items

UAW Collective Bargaining Agreement

In November 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 our 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.

Impact of Events in Russia / Ukraine

In February 2022, we suspended shipments of machines and service parts to Russia due to the events in Russia / Ukraine. The suspension of shipments reduced the forecasted revenue for the region, which made it probable future cash flows would not cover the carrying value of certain assets. As a result, an impairment was recorded for most long-lived assets in Russia, and our U.S. senior management decided to initiate a voluntary employee-separation program. We also recorded a reserve on inventory, and increased our allowance for credit losses, reflecting economic uncertainty in Russia.

The financial services operations received an intercompany benefit from the equipment operations, which guarantees the financial services’ investments in certain international markets, including Russia.

The Russian government imposed certain restrictions on companies’ abilities to repatriate or remit cash from their Russian-based operations to locations outside of Russia. Cash in excess of what was required to fund operations in Russia was reclassified as restricted. A summary of the reserves, impairments, and voluntary-separation costs recorded in 2022 follows. See Note 25 for fair value measurement information.

PPA

SAT

CF

FS

Total

Inventory reserve – Cost of sales

$

14

$

2

$

3

$

19

Fixed asset impairment – Cost of sales

30

11

41

Intangible asset impairment – Cost of sales

28

28

Allowance for credit losses – Financing receivables – Selling, administrative and general expenses

$

153

153

Voluntary-separation program:
– Cost of sales

3

3

– Selling, administrative and general expenses

4

6

1

11

Intercompany agreement

82

9

62

(153)

Total Russia/Ukraine events pretax expense

$

133

$

11

$

110

$

1

255

Net tax impact

(40)

Total Russia/Ukraine events after-tax expense

$

215

Gain on Previously Held Equity Investment

In March 2022, we acquired full ownership of three former Deere-Hitachi joint venture factories and began new license and supply agreements with Hitachi. The fair value of the previous equity investment resulted in a non-cash gain of $326 (pretax and after-tax; see Note 3).

v3.24.3
REVENUE RECOGNITION
12 Months Ended
Oct. 27, 2024
REVENUE RECOGNITION  
REVENUE RECOGNITION

5. REVENUE RECOGNITION

Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow:

PPA

SAT

CF

FS

Total

2024

Primary geographic markets:

United States

$

11,741

$

6,249

$

8,086

$

4,166

$

30,242

Canada

1,818

605

760

717

3,900

Western Europe

2,068

2,203

1,729

189

6,189

Central Europe and CIS

787

284

381

36

1,488

Latin America

3,482

433

1,170

453

5,538

Asia, Africa, Oceania, and Middle East

1,530

1,480

1,128

221

4,359

Total

$

21,426

$

11,254

$

13,254

$

5,782

$

51,716

Major product lines:

Production agriculture

$

20,574

$

20,574

Small agriculture

$

7,693

7,693

Turf

3,023

3,023

Construction

$

5,523

5,523

Compact construction

2,459

2,459

Roadbuilding

3,641

3,641

Forestry

1,108

1,108

Financial products

240

131

67

$

5,782

6,220

Other

612

407

456

1,475

Total

$

21,426

$

11,254

$

13,254

$

5,782

$

51,716

Revenue recognized:

At a point in time

$

21,059

$

11,084

$

13,137

$

133

$

45,413

Over time

367

170

117

5,649

6,303

Total

$

21,426

$

11,254

$

13,254

$

5,782

$

51,716

PPA

SAT

CF

FS

Total

2023

Primary geographic markets:

United States

$

13,917

$

7,796

$

9,109

$

3,283

$

34,105

Canada

1,738

687

1,221

641

4,287

Western Europe

2,640

2,824

1,725

132

7,321

Central Europe and CIS

1,218

530

353

36

2,137

Latin America

5,608

707

1,429

453

8,197

Asia, Africa, Oceania, and Middle East

2,166

1,679

1,183

176

5,204

Total

$

27,287

$

14,223

$

15,020

$

4,721

$

61,251

Major product lines:

Production agriculture

$

26,450

$

26,450

Small agriculture

$

10,122

10,122

Turf

3,505

3,505

Construction

$

6,842

6,842

Compact construction

2,451

2,451

Roadbuilding

3,794

3,794

Forestry

1,429

1,429

Financial products

219

96

58

$

4,721

5,094

Other

618

500

446

1,564

Total

$

27,287

$

14,223

$

15,020

$

4,721

$

61,251

Revenue recognized:

At a point in time

$

26,969

$

14,092

$

14,915

$

111

$

56,087

Over time

318

131

105

4,610

5,164

Total

$

27,287

$

14,223

$

15,020

$

4,721

$

61,251

PPA

SAT

CF

FS

Total

2022

Primary geographic markets:

United States

$

10,975

$

7,741

$

7,103

$

2,419

$

28,238

Canada

1,387

676

1,238

601

3,902

Western Europe

2,188

2,478

1,576

102

6,344

Central Europe and CIS

1,207

488

545

49

2,289

Latin America

4,991

578

1,467

303

7,339

Asia, Africa, Oceania, and Middle East

1,570

1,608

1,136

151

4,465

Total

$

22,318

$

13,569

$

13,065

$

3,625

$

52,577

Major product lines:

Production agriculture

$

21,685

$

21,685

Small agriculture

$

10,027

10,027

Turf

3,027

3,027

Construction

$

5,864

5,864

Compact construction

1,667

1,667

Roadbuilding

3,441

3,441

Forestry

1,308

1,308

Financial products

60

52

32

$

3,625

3,769

Other

573

463

753

1,789

Total

$

22,318

$

13,569

$

13,065

$

3,625

$

52,577

Revenue recognized:

At a point in time

$

22,178

$

13,493

$

12,980

$

105

$

48,756

Over time

140

76

85

3,520

3,821

Total

$

22,318

$

13,569

$

13,065

$

3,625

$

52,577

Following is a description of the elements of net sales and revenues for our major product lines:

Production Agriculture – Includes net sales of large and certain mid-size tractors and associated attachments, combines, cotton pickers, cotton strippers, sugarcane harvesters, sugarcane loaders, tillage, seeding, and application equipment, including sprayers and nutrient management and soil preparation machinery, and related attachments and service parts.

Small Agriculture – Includes net sales of certain mid-size tractors, utility and compact utility tractors, self-propelled forage harvesters, hay and forage equipment, balers, mowers, and related attachments and service parts.

Turf – Includes net sales of turf and utility equipment, including riding lawn equipment, golf course equipment, utility vehicles, and commercial mowing equipment, along with a broad line of associated implements, other outdoor power products, and related attachments and service parts.

Construction – Includes net sales of a broad range of machines used in construction, earthmoving, and material handling, including backhoe loaders, landscape loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, scraper systems, articulated dump trucks, and related attachments and service parts.

Compact Construction – Includes net sales of smaller construction equipment, including compact excavators, compact track loaders, compact wheel loaders, skid steers, and related attachments and service parts.

Roadbuilding – Includes net sales of equipment used in roadbuilding and renovation, including milling machines, recyclers, slipform pavers, surface miners, asphalt pavers, compactors, tandem and static rollers, mobile crushers and screens, mobile and stationary asphalt plants, and related attachments and service parts.

Forestry – Includes net sales of equipment used in timber harvesting, including log skidders, feller bunchers, log loaders, log forwarders, log harvesters, and related attachments and service parts.

Financial Products – Includes finance and interest income from retail notes related to sales of John Deere equipment to retail customers, wholesale financing to dealers of John Deere equipment, and revolving charge accounts; lease income from retail leases of John Deere equipment; and revenue from extended warranties.

Other – Includes sales of components to other equipment manufacturers that are included in “Net sales;” revenue earned over time from precision guidance, telematics, and other information enabled solutions; revenue from service performed at company owned dealerships and service centers; gains on disposition of property and businesses; trademark licensing revenue; and other miscellaneous revenue items that are included in “Other income.”

We invoice 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, telematic services, and other information enabled solutions. These advanced customer payments are presented as deferred revenue, a contract liability, in “Accounts payable and accrued expenses.” The deferred revenue received, but not recognized in revenue was $1,923 and $1,697 at October 27, 2024 and October 29, 2023, respectively. The contract liability is reduced as the revenue is recognized. Revenue recognized from deferred revenue that was recorded as a contract liability at the beginning of the fiscal year was $553 in 2024, $547 in 2023, and $609 in 2022.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year and the estimated revenue to be recognized by fiscal year at October 27, 2024 follows:

Year

Net Sales and Revenues

2025

$

512

2026

429

2027

328

2028

208

2029

151

Later years

119

Total

$

1,747

As permitted, we 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 to dealers and retail customers for equipment, service parts, repair services, and certain telematics services.

v3.24.3
SUPPLEMENTAL CASH FLOW INFORMATION
12 Months Ended
Oct. 27, 2024
SUPPLEMENTAL CASH FLOW INFORMATION  
SUPPLEMENTAL CASH FLOW INFORMATION

6. SUPPLEMENTAL CASH FLOW INFORMATION

All cash flows from receivables related to sales are included in operating activities. This includes all changes in trade accounts and notes receivables, as well as some financing receivables (see Note 11). Financing receivables that are related to loans on equipment sold by independent dealers are included in investing activities.

Our short-term borrowings mature or may require payment within three months or less. During 2024, we issued $5.3 billion and retired $3.8 billion of retail note securitization borrowings, which are presented in “Net proceeds (payments) in short-term borrowings (original maturities three months or less).”

Cash, cash equivalents, and restricted cash recorded in “Assets held for sale” relates to BJD (see Note 4). Restricted cash recorded in “Other assets” relates to securitization of financing receivables (see Note 12) and cash held in Russia.

Supplemental cash flow information follows:

2024

2023

2022

Cash paid for interest

$

3,298

$

2,227

$

1,101

Cash paid for income taxes

2,518

3,578

1,940

Inventory transferred to equipment on operating leases

223

195

167

Accounts payable related to purchases of property and equipment

208

211

165

v3.24.3
PENSION AND OTHER POSTRETIREMENT BENEFITS
12 Months Ended
Oct. 27, 2024
PENSION AND OTHER POSTRETIREMENT BENEFITS  
PENSION AND OTHER POSTRETIREMENT BENEFITS

7. PENSION AND OTHER POSTRETIREMENT BENEFITS

We have several funded and unfunded defined benefit pension plans and other postretirement benefit (OPEB) plans. These plans cover U.S. employees and certain foreign employees. The measurement date of our plans is October 31. The funded status as of October 31, 2024 of the significant plans follows:

Funded

Enrollment

    

Status

    

Status

 

Pensions:

U.S. salaried qualified

    

$

1,314

Closed

U.S. hourly qualified

 

1,217

Open

Other

 

(528)

Varies

Total

$

2,003

OPEB:

U.S. salaried

    

$

(1,198)

Closed

U.S. hourly

 

101

Closed

Other

 

(94)

Varies

Total

$

(1,191)

The components of net periodic pension and OPEB (benefit) cost excluding the service cost component are included in the line item “Other operating expenses.”

The components of net periodic pension (benefit) cost and the related assumptions consisted of the following:

 

2024

    

2023

    

2022

 

Pensions:

Service cost

 

$

230

$

246

$

349

Interest cost

 

545

 

533

 

330

Expected return on plan assets

 

(967)

 

(878)

 

(726)

Amortization of actuarial (gain) loss

 

3

 

(13)

 

132

Amortization of prior service cost

 

40

 

38

 

34

Settlements/curtailments

 

38

 

37

 

45

Net (benefit) cost

$

(111)

$

(37)

$

164

Weighted-average assumptions:

Discount rates – service cost

5.8%

5.2%

3.0%

Discount rates – interest cost

5.7%

5.1%

2.6%

Rate of compensation increase

3.8%

3.8%

3.7%

Expected long-term rates of return

7.0%

6.3%

5.1%

Interest crediting rate – U.S. cash balance plans

4.8%

4.3%

2.1%

During 2024, curtailment expense of $35 was recognized related to U.S. hourly employee layoffs.

The 2025 net periodic pension benefit is expected to increase by $100 due to an increase in the expected long-term rates of return on pension plan assets (estimated to be 7.1 percent) and the U.S. hourly pension curtailment recognized in 2024, described above.

The components of net periodic OPEB cost and the assumptions related to the cost consisted of the following:

 

2024

    

2023

    

2022

 

OPEB:

Service cost

$

17

$

27

$

45

Interest cost

 

174

 

176

 

99

Expected return on plan assets

 

(108)

 

(117)

 

(110)

Amortization of actuarial gain

 

(54)

 

(59)

 

(18)

Amortization of prior service credit

 

(4)

 

(3)

 

(4)

Net cost

$

25

$

24

$

12

Weighted-average assumptions:

Discount rates – service cost

6.7%

6.1%

3.6%

Discount rates – interest cost

5.9%

5.4%

2.3%

Expected long-term rates of return

5.6%

5.7%

4.4%

The benefit plan obligations, funded status, and the assumptions related to the obligations at October 27, 2024 and October 29, 2023 follow:

Pensions

OPEB

2024

2023

2024

2023

Change in benefit obligations:

                

 

                 

 

              

 

               

Beginning of year balance

$

(9,928)

$

(10,529)

$

(3,029)

$

(3,341)

Service cost

 

(230)

 

(246)

 

(17)

 

(27)

Interest cost

 

(545)

 

(533)

 

(174)

 

(176)

Actuarial gain (loss)

 

(1,097)

 

504

 

(385)

 

285

Benefits paid

 

746

 

838

 

263

 

260

Health care subsidies

 

(22)

 

(27)

Settlement

 

 

112

Foreign exchange and other

 

(23)

 

(74)

 

2

 

(3)

End of year balance

 

(11,077)

 

(9,928)

 

(3,362)

 

(3,029)

Change in plan assets (fair value):

Beginning of year balance

 

12,004

 

13,219

 

2,028

 

2,136

Plan assets actual gain (loss)

 

1,703

 

(387)

 

259

 

(8)

Employer contribution

 

96

 

70

 

145

 

158

Benefits paid

 

(746)

 

(838)

 

(263)

 

(260)

Settlement

 

 

(112)

Foreign exchange and other

 

23

 

52

 

2

 

2

End of year balance

 

13,080

 

12,004

 

2,171

 

2,028

Funded status

$

2,003

$

2,076

$

(1,191)

$

(1,001)

Weighted-average assumptions:

Discount rates

5.1%

5.9%

5.2%

6.0%

Rate of compensation increase

4.3%

3.8%

Interest crediting rate – U.S. cash balance plans

4.1%

4.9%

The actuarial loss for pension for 2024 was due to a decrease in discount rates. The actuarial loss for OPEB for 2024 was due to a decrease in discount rates and changes to health care assumptions. The actuarial gain for pension for 2023 was due to an increase in discount rates. The actuarial gain for OPEB for 2023 was due to changes to health care assumptions.

During 2023, we irrevocably transferred to an insurance company $112 of a Canadian pension plan’s defined benefit obligations and related plan assets. The transaction resulted in no changes to the benefits to be received by the retired participants. We recognized a one-time, non-cash, pretax pension settlement charge of $36 related to the accelerated recognition of actuarial losses included within “Accumulated other comprehensive income (loss).”

The discount rate assumptions used to determine the pension and OPEB obligations for all periods presented were based on hypothetical AA yield curves represented by a series of annualized individual discount rates. These discount rates represent the rates at which our benefit obligations could effectively be settled at the October 31 measurement dates.

The mortality assumptions for the 2024 U.S. benefit plan obligations used the tables based on the plan’s mortality experience and the most recent scales issued by the Society of Actuaries. The mortality assumptions for the 2023 U.S. benefit plan obligations used the most recent tables and scales issued by the Society of Actuaries at that time. The 2024 and 2023 mortality assumptions included an adjustment to the scale related to COVID for some plans.

The weighted-average annual rates of increase in the per capita cost of covered health care benefits (the health care cost trend rates) for medical and prescription drug claims for pre- and post-65 age groups used to determine the October 27, 2024 and October 29, 2023 accumulated postretirement benefit obligations were as follows:

2024

2023

Initial year

16.9% (2024 to 2025)

18.7% (2023 to 2024)

Second year

11.5% (2025 to 2026)

8.8% (2024 to 2025)

Ultimate

4.7% (2033 to 2034)

4.7% (2032 to 2033)

An increase in Medicare Advantage premiums and prescription drug trends impacted the weighted-average annual rates of increase for the initial year in 2024 and 2023.

Information related to pension plans benefit obligations at October 27, 2024 and October 29, 2023 follows:

2024

2023

Total accumulated benefit obligations for all plans

$

10,441

$

9,453

Plans with accumulated benefit obligation exceeding fair value of plan assets:

Accumulated benefit obligations

1,405

1,147

Fair value of plan assets

920

704

Plans with projected benefit obligation exceeding fair value of plan assets:

Projected benefit obligations

1,541

1,261

Fair value of plan assets

951

729

The pension and OPEB amounts recognized in the balance sheet at October 27, 2024 and October 29, 2023 consisted of the following:

Pensions

OPEB

2024

2023

2024

2023

Noncurrent asset

$

2,593

  

$

2,608

$

328

  

$

399

Less: Current liability

 

66

 

59

39

40

Less: Noncurrent liability

 

524

 

473

 

1,480

 

1,360

Total

$

2,003

$

2,076

$

(1,191)

$

(1,001)

The retirement benefits and other liabilities recognized in the balance sheet at October 27, 2024 and October 29, 2023 consisted of the following:

2024

2023

Deferred compensation – current

$

28

$

25

Deferred compensation and other – noncurrent

217

183

Pensions and OPEB – current

105

99

Pensions and OPEB – noncurrent

2,004

1,833

Total

$

2,354

$

2,140

The amounts recognized in accumulated other comprehensive income pretax at October 27, 2024 and October 29, 2023 consisted of the following:

Pensions

OPEB

2024

2023

2024

2023

Net actuarial (gain) loss

$

2,011

$

1,660

$

(632)

$

(921)

Prior service (credit) cost

 

329

 

406

 

2

 

(1)

Total

$

2,340

$

2,066

$

(630)

$

(922)

Actuarial gains and losses are recorded in accumulated other comprehensive income (loss). To the extent unamortized gains and losses exceed 10 percent of the higher of the market-related value of assets or the benefit obligation, the excess is amortized as a component of net periodic (benefit) cost over the remaining service period of the active participants. For plans in which all or almost all of the plan’s participants are inactive, the amortization period is the remaining life expectancy of the inactive participants.

Contributions

We make any required contributions to the plan assets under applicable regulations and voluntary contributions after evaluating our liquidity position and ability to make tax-deductible contributions. Total contributions to the plans were $241 in 2024 and $228 in 2023, which included both required and voluntary contributions and direct benefit payments.

We expect to contribute approximately $100 to our pension plans and approximately $660 to our OPEB plans in 2025. In November 2024, a committee of our Board of Directors approved a voluntary contribution to a U.S. OPEB plan for up to $520 to be made during the first quarter of 2025. This contribution will increase plan assets. The contributions include required and voluntary contributions and direct benefit payments from company funds. We have no significant required contributions to U.S. pension plan assets in 2025 under applicable funding regulations.

Expected Future Benefit Payments

The expected future benefit payments at October 27, 2024 were as follows:

 

   Pensions   

  

      OPEB*      

 

2025

$

760

$

257

2026

 

736

 

267

2027

 

728

 

271

2028

 

716

 

273

2029

 

716

 

274

2030 to 2034

 

3,555

 

1,331

*    Net of prescription drug group benefit subsidy under Medicare Part D.

Plan Asset Information

The fair values of the pension plan assets at October 27, 2024 follow:

 

Total

 

Level 1

 

Level 2

 

Cash and short-term investments

$

411

$

399

$

12

Equity:

U.S. equity securities

 

451

 

440

11

International equity securities and funds

 

238

 

232

6

Fixed Income:

Government and agency securities

 

1,250

 

932

 

318

Corporate debt securities

 

4,956

 

 

4,956

Mortgage-backed securities

 

177

 

 

177

Other investments

 

57

 

36

 

21

Derivative contracts – assets

 

130

 

7

 

123

Derivative interest rate contracts – liabilities

 

(161)

 

(119)

 

(42)

Receivables, prepaids, and payables

 

(171)

 

(171)

Securities lending collateral

 

662

 

662

Securities lending liability

 

(662)

 

(662)

Securities sold short

 

(94)

 

(92)

(2)

Total of Level 1 and Level 2 assets

7,244

$

1,664

$

5,580

Investments at net asset value:

Short-term investments

492

U.S. equity funds

174

International equity funds

194

Fixed income funds

1,649

Real estate funds

385

Hedge funds

457

Private equity

1,219

Venture capital

1,219

Other investments

47

Total net assets

$

13,080

The fair values of the OPEB health care assets at October 27, 2024 follow:

 

Total

 

Level 1

 

Level 2

 

Cash and short-term investments

$

77

$

77

Fixed Income:

Government and agency securities

 

606

 

561

$

45

Corporate debt securities

 

551

 

551

Mortgage-backed securities

 

92

 

92

Other

 

11

 

7

4

Securities lending collateral

 

167

 

167

Securities lending liability

 

(167)

 

(167)

Total of Level 1 and Level 2 assets

1,337

$

645

$

692

Investments at net asset value:

U.S. equity funds

163

International equity funds

84

Fixed income funds

348

Real estate funds

77

Hedge funds

71

Private equity

41

Venture capital

41

Other investments

9

Total net assets

$

2,171

The fair values of the pension plan assets at October 29, 2023 follow:

 

Total

 

Level 1

 

Level 2

Level 3

 

Cash and short-term investments

$

513

$

470

$

43

Equity:

U.S. equity securities

 

342

 

330

12

International equity securities and funds

 

199

 

197

2

Fixed Income:

Government and agency securities

 

1,017

 

759

 

258

 

Corporate debt securities

 

4,389

 

4,389

 

Mortgage-backed securities

 

285

 

 

285

 

Private equity

 

18

 

 

$

18

Other investments

 

50

 

30

 

20

 

Derivative contracts – assets

 

53

 

17

 

36

 

Derivative interest rate contracts – liabilities

 

(309)

 

(215)

 

(94)

 

Receivables, prepaids, and payables

 

(137)

 

(137)

Securities lending collateral

 

615

 

615

 

Securities lending liability

 

(615)

 

(615)

 

Securities sold short

 

(73)

 

(69)

(4)

Total of Level 1, Level 2, and Level 3 assets

6,347

$

1,382

$

4,947

$

18

Investments at net asset value:

Short-term investments

362

U.S. equity funds

92

International equity funds

151

Fixed income funds

1,418

Real estate funds

462

Hedge funds

491

Private equity

1,306

Venture capital

1,341

Other investments

34

Total net assets

$

12,004

The fair values of the OPEB health care assets at October 29, 2023 follow:

 

Total

 

Level 1

 

Level 2

 

Cash and short-term investments

$

76

$

76

Fixed Income:

Government and agency securities

 

637

 

596

$

41

Corporate debt securities

 

515

 

515

Mortgage-backed securities

 

89

 

89

Other

8

5

3

Securities lending collateral

 

122

 

122

Securities lending liability

 

(122)

 

(122)

Total of Level 1 and Level 2 assets

1,325

$

677

$

648

Investments at net asset value:

Fixed income funds

392

Real estate funds

104

Hedge funds

104

Private equity

43

Venture capital

43

Other investments

17

Total net assets

$

2,028

Investments at net asset value in the preceding tables are measured at fair value using the net asset value per share practical expedient and are not classified in the fair value hierarchy. Fair value measurement levels in the preceding tables are defined in Note 25.

Fair values are determined as follows:

Cash and Short-Term Investments – The investments include (1) cash accounts that are valued based on the account value, which approximates fair value; (2) investments that are valued at quoted prices in the active markets in which the investment trades or using a market approach (matrix pricing model) in which all significant inputs are observable or can be derived from or corroborated by observable market data; and (3) investment funds that are valued based on a constant fund net asset value, which is based on quoted prices in the active market in which the investment fund trades, or the fund’s net asset value using the net asset value per share practical expedient (NAV), which is based on the fair value of the underlying securities.

Equity Securities and Funds The values are determined using quoted prices in the active market in which the equity investment trades, Equity funds are valued using the fund’s NAV, which is based on the fair value of the underlying securities.

Fixed Income Securities and Funds and Other FundsThe securities are valued using either 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, or they are valued using the quoted prices in the active market in which the fixed income investment trades. Fixed income and other funds are valued using the fund’s NAV, which is based on the fair value of the underlying securities.

Real Estate, Venture Capital, Private Equity, and Hedge Funds The investments that are structured as limited partnerships, excluding the private equity investment classified as Level 3, are valued at estimated fair value based on their proportionate share of the limited partnership’s fair value that is determined by the respective general partner. These investments are valued using the fund’s NAV, which is based on the fair value of the underlying investments. Valuations may be lagged up to six months. The NAV is adjusted for cash flows (additional investments or contributions, and distributions) and any known substantive valuation changes through year end. The private equity investment classified as Level 3 was valued based on the market pricing received in October 2023 for the assets that were sold in a secondary sale in December 2023. The investment was transferred into Level 3 as of October 29, 2023.

Derivative InstrumentsThe derivatives are valued using either an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates, or a market approach (quoted prices in the active market in which the derivative instrument trades).

The investment objective for the pension and health care plan assets is to fulfill the projected obligations to the beneficiaries over a long period of time, while meeting our fiduciary responsibilities. The asset allocation policy is the most important decision in managing the assets, and it is reviewed regularly. The asset allocation policy considers our long-term asset class risk/return expectations for each plan since the obligations are long-term in nature. The target asset allocations as of October 27, 2024 are as follows:

Pension

Health Care

 

    

Assets

    

Assets

 

Equity

7%

12%

Debt

70%

78%

Real estate

3%

3%

Other investments

20%

7%

The assets are diversified and are managed by professional investment firms as well as by investment professionals who are company employees. As a result of our diversified investment policy, there were no significant concentrations of risk.

A market related value of plan assets is used to calculate the expected return on assets. The market related value recognizes changes in the fair value of pension plan assets systematically over a five-year period. The market related value of the health care plan assets equals fair value.

The expected long-term rate of return on plan assets reflects management’s expectations of long-term average rates of return on funds invested to provide for benefits included in the projected benefit obligations. The expected return is based on the outlook for inflation and for returns in multiple asset classes, while also considering historical returns, asset allocation, and investment strategy. Our approach has emphasized the long-term nature of the return estimate such that the return assumption is not changed significantly unless there are fundamental changes in

capital markets that affect our expectations for returns over an extended period of time (i.e., 10 to 20 years). The average annual return of our U.S. pension fund was approximately 7.2 percent during the past ten years and approximately 8.0 percent during the past 20 years.

We have Voluntary Employees’ Beneficiary Association trusts (VEBAs) for the funding of hourly and salary postretirement health care benefits. The future expected asset returns for the VEBAs are lower than the expected return on the other pension and health care plan assets due to investment in a higher proportion of liquid securities. These assets are in addition to the other postretirement health care plan assets that have been funded under Section 401(h) of the U.S. Internal Revenue Code and maintained in a separate account in the John Deere Pension Trust.

Defined Contribution Plans

We have defined contribution plans related to employee investment and savings plans primarily in the U.S. Our contributions and costs under these plans were $326 in 2024, $288 in 2023, and $263 in 2022. The contribution rate varies based on employee participation in the plans.

 

v3.24.3
INCOME TAXES
12 Months Ended
Oct. 27, 2024
INCOME TAXES  
INCOME TAXES

8. INCOME TAXES

We are subject to income taxes in a number of jurisdictions. We determine our income tax provision using the asset and liability method. The provision for income taxes by taxing jurisdiction and by significant component consisted of the following:

 

2024

  

2023

  

2022

 

Current:

             

             

             

U.S.:

Federal

$

1,253

$

1,803

$

514

State

 

257

 

386

 

136

Foreign

 

878

 

1,472

 

1,423

Total current

 

2,388

 

3,661

 

2,073

Deferred:

U.S.:

Federal

 

(326)

 

(485)

 

29

State

 

(29)

 

(65)

 

24

Foreign

 

61

 

(240)

 

(119)

Total deferred

 

(294)

 

(790)

 

(66)

Provision for income taxes

$

2,094

$

2,871

$

2,007

Based upon the location of our operations, the consolidated income before income taxes in the U.S. in 2024, 2023, and 2022 was $5.9 billion, $7.8 billion, and $5.0 billion, respectively, and in foreign countries was $3.3 billion, $5.2 billion, and $4.1 billion, respectively. Certain foreign operations are branches or partnerships of Deere & Company and are subject to U.S. as well as foreign income tax regulations. The pretax income by location and the preceding analysis of the income tax provision by taxing jurisdiction are not directly related.

A comparison of the statutory and effective income tax provision and reasons for related differences follow:

  

2024

  

2023

  

2022

 

U.S. federal income tax provision at the U.S. statutory rate (21 percent)

$

1,933

$

2,734

$

1,917

State and local taxes, net of federal effect

179

266

133

Other impacts of Tax Cuts and Jobs Act of 2017

(60)

(58)

(29)

Rate differential on foreign subsidiaries

 

89

 

142

 

121

Research and business tax credits

 

(99)

 

(107)

 

(65)

Excess tax benefits on equity compensation

(35)

(49)

(55)

Valuation allowances

 

(46)

 

9

 

179

Unrecognized tax benefits

70

 

4

 

93

Other – net

 

63

(70)

(287)

Provision for income taxes

$

2,094

$

2,871

$

2,007

At October 27, 2024, undistributed profits of subsidiaries outside the U.S. of approximately $6.0 billion are considered indefinitely reinvested. Determination of the amount of a foreign withholding tax liability on these unremitted earnings is not practicable.

Deferred income taxes arise because there are certain items that are treated differently for financial accounting than for income tax reporting purposes. An analysis of the deferred income tax assets and liabilities at October 27, 2024 and October 29, 2023 follows:

2024

2023

 Deferred

 Deferred

 Deferred

 Deferred

Tax

Tax

Tax

Tax

 

Assets

 

Liabilities

 

Assets

 

Liabilities

 

Accrual for employee benefits

$

362

$

439

Accrual for sales allowances

 

847

 

884

Allowance for credit losses

 

93

 

79

Amortization of R&D expenditures

925

492

Deferred compensation

 

52

 

45

Goodwill and other intangible assets

$

107

$

166

Lessee lease transactions

73

69

68

61

Lessor lease transactions

449

581

OPEB – net

256

193

Pension – net

 

394

 

424

Share-based compensation

 

50

 

38

Tax loss and tax credit carryforwards

 

1,564

 

1,518

Tax over book depreciation

195

198

Unearned revenue

174

 

177

 

Other items

 

337

 

313

 

681

 

278

Less: valuation allowances

 

(1,598)

 

(1,612)

Total

$

3,135

$

1,527

$

3,002

$

1,708

Deere & Company files a consolidated federal income tax return in the U.S., which includes the wholly-owned financial services subsidiaries. These subsidiaries account for income taxes as if they filed separate income tax returns, with a modification for realizability of certain tax benefits.

At October 27, 2024, tax loss and tax credit carryforwards of $1,564 were available with $1,063 expiring from 2025 through 2044 and $501 with an indefinite carryforward period.

A reconciliation of unrecognized tax benefits at October 27, 2024, October 29, 2023, and October 30, 2022 follows:

 

2024

  

2023

  

2022

 

Beginning of year balance

$

907

$

891

$

811

Increases to tax positions taken during the current year

 

59

 

68

 

98

Increases to tax positions taken during prior years

 

68

 

164

 

29

Decreases to tax positions taken during the current year

(2)

(3)

Decreases to tax positions taken during prior years

 

(99)

 

(209)

 

(18)

Decreases due to lapse of statute of limitations

 

(7)

 

(10)

 

(7)

Other

(1)

(4)

2

Foreign exchange

 

3

 

10

 

(24)

End of year balance

$

928

$

907

$

891

The amount of unrecognized tax benefits at October 27, 2024 and October 29, 2023 that would impact the effective tax rate if the tax benefits were recognized was $410 and $329, respectively. The remaining liability was related to tax positions for which there are offsetting tax receivables, or the uncertainty was only related to timing. We expect that any reasonably possible change in the amounts of unrecognized tax benefits in the next twelve months would not be significant.

We file our tax returns according to the tax laws of the jurisdictions in which we operate, which includes the U.S. federal jurisdiction and various state and foreign jurisdictions. The U.S. Internal Revenue Service (IRS) has completed the examination of our federal income tax returns for periods prior to 2015. The federal income tax returns for years 2015 to 2020 are currently under examination. Various state and foreign income tax returns also remain subject to examination by taxing authorities.

v3.24.3
OTHER INCOME AND OTHER OPERATING EXPENSES
12 Months Ended
Oct. 27, 2024
OTHER INCOME AND OTHER OPERATING EXPENSES  
OTHER INCOME AND OTHER OPERATING EXPENSES

9. OTHER INCOME AND OTHER OPERATING EXPENSES

The major components of other income and other operating expenses consisted of the following:

 

2024

  

2023

  

2022

 

Other income:

            

            

            

Revenues from services

$

367

$

312

$

283

Extended warranty premiums earned

310

312

289

Trademark licensing income

88

95

89

Operating lease disposition gains

 

19

 

33

 

72

Gain on previously held equity investment

326

Investment income

 

127

 

29

 

14

Other

 

287

 

222

 

222

Total

$

1,198

$

1,003

$

1,295

Other operating expenses:

Depreciation of equipment on operating leases

$

874

$

853

$

827

Extended warranty claims

 

340

 

309

 

267

Cost of services

 

248

 

227

 

214

Pension and OPEB benefit, excluding the service cost component

(333)

(286)

(218)

Foreign exchange loss

71

122

132

Other

 

57

 

67

 

53

Total

$

1,257

$

1,292

$

1,275

 

v3.24.3
MARKETABLE SECURITIES
12 Months Ended
Oct. 27, 2024
MARKETABLE SECURITIES  
MARKETABLE SECURITIES

10. MARKETABLE SECURITIES

Most marketable securities are classified as available-for-sale. Realized gains or losses are based on specific identification.

The amortized cost and fair value of marketable securities at the end of 2024 and 2023 follow:

  

  

Gross

  

Gross

  

 

Amortized

Unrealized

Unrealized

Fair

 

Cost

Gains

Losses

   Value   

 

2024

Corporate debt securities

$

445

$

1

$

23

$

423

International debt securities

169

26

143

Mortgage-backed securities*

 

193

 

28

 

165

Municipal debt securities

 

78

1

5

 

74

U.S. government debt securities

377

28

 

349

Total debt securities

$

1,262

$

2

$

110

1,154

Marketable securities

$

1,154

2023

International equity securities

$

3

International mutual funds securities

101

U.S. equity fund

86

U.S. fixed income fund

32

Total equity securities

222

Corporate debt securities

$

285

$

41

 

244

International debt securities

5

4

1

Mortgage-backed securities*

 

225

 

40

 

185

Municipal debt securities

 

87

12

 

75

U.S. government debt securities

260

41

 

219

Total debt securities

$

862

$

138

724

Marketable securities

$

946

*    Primarily issued by U.S. government-sponsored enterprises.

The purchases, maturities, and sale proceeds for marketable securities during 2024, 2023, and 2022 follow:

   2024   

  

   2023   

  

   2022   

Purchases

$

1,055

$

491

$

250

Maturities and sale proceeds

832

186

79

Equity Securities

Unrealized gain (loss) on equity securities during 2024 and 2023 follow:

    2024    

  

    2023    

Net gain recognized on equity securities

$

88

Less: Net gain (loss) on equity securities sold

88

$

(1)

Unrealized gain on equity securities

$

$

1

Debt Securities

The contractual maturities of available-for-sale debt securities at October 27, 2024 follow:

 

Amortized

 

Fair

 

 

Cost

 

   Value   

Due in one year or less

$

28

$

27

Due after one through five years

 

386

 

356

Due after five through 10 years

 

456

 

435

Due after 10 years

 

199

 

171

Mortgage-backed securities

 

193

 

165

Debt securities

$

1,262

$

1,154

Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Mortgage-backed securities contain prepayment provisions and are not categorized by contractual maturity.

Proceeds of available-for-sale debt securities sold or matured during 2024, 2023, and 2022 were $619, $37, and $74, respectively. Realized gains and losses on debt securities were not material in 2024, 2023, and 2022.

 

v3.24.3
RECEIVABLES
12 Months Ended
Oct. 27, 2024
RECEIVABLES  
RECEIVABLES

11. RECEIVABLES

Trade Accounts and Notes Receivable

Trade accounts and notes receivable arise from sales of goods and services to customers. See Note 2 for our revenue recognition policy. We evaluate and assess customers creditworthiness on an ongoing basis. Receivables are secured with collateral or other credit enhancements. Trade accounts and notes receivable at the end of 2024 and 2023 follow:

 

    2024    

 

    2023    

 

Trade accounts and notes receivable:

Production & precision ag

$

1,532

$

2,642

Small ag & turf

1,657

2,344

Construction & forestry

 

2,137

 

2,753

Trade accounts and notes receivable – net

$

5,326

$

7,739

These receivables have significant concentrations of credit risk in the agriculture and turf and construction and forestry markets. Credit losses have been historically low. There is not a disproportionate concentration of credit risk with any single customer. On a geographic basis, 51 percent of our trade accounts and notes receivable are located in the U.S. and Canada at October 27, 2024.

At October 27, 2024 and October 29, 2023 trade accounts and notes receivable balances outstanding greater than 12 months were $298 and $107, respectively. The increase was due to higher dealer inventory.

The allowance for credit losses on trade accounts and notes receivable at October 27, 2024, October 29, 2023, and October 30, 2022, as well as the related activity, follow:

2024

2023

2022

Beginning of year balance

$

35

$

36

$

41

Provision

34

7

1

Write-offs

(5)

(8)

(5)

Translation adjustments

2

(1)

End of year balance*

$

66

$

35

$

36

*    Individual allowances were not significant.

The equipment operations sell a significant portion of their trade receivables to financial services. Compensation is provided to financial services at market interest rates.

Financing Receivables Overall

Financing receivables originate under the following circumstances:

Retail customers purchase (or lease) equipment from a dealer and finance the equipment through John Deere Financial.
We sell the equipment to a dealer under trade terms. Trade terms end and the dealer finances the equipment on a wholesale receivable. Shown as wholesale notes in “Financing Receivables – Related to the Sale of Equipment.”
A dealer finances the purchase of used equipment through John Deere Financial.
We sell (or lease) the equipment directly to a retail customer with terms typically greater than 12 months. Shown as retail notes or sales-type leases in the “Financing Receivables –Related to the Sale of Equipment.”
The retail customer utilizes a revolving credit product to finance parts, service, or input costs.

Financing receivables at the end of 2024 and 2023 follow:

2024

2023

 

 

Unrestricted/Securitized

 

Unrestricted/Securitized

Retail notes:

                

 

                

                

 

                

Agriculture and turf

$

25,102

$

7,203

$

26,955

$

6,052

Construction and forestry

 

4,550

 

1,754

 

4,623

 

1,442

Total

 

29,652

 

8,957

 

31,578

 

7,494

Wholesale notes

 

8,951

 

6,947

Revolving charge accounts

 

4,730

 

4,789

Financing leases (direct
and sales-type)

 

3,032

 

2,906

Total financing receivables

 

46,365

 

8,957

 

46,220

 

7,494

Less:

Unearned finance income:

Retail notes

 

1,467

 

187

 

1,906

 

137

Wholesale notes

24

25

Revolving charge accounts

76

91

Financing leases

 

307

 

350

Total

 

1,874

 

187

 

2,372

 

137

Allowance for credit losses

 

182

 

47

 

175

 

22

Financing receivables – net

$

44,309

$

8,723

$

43,673

$

7,335

Assets managed by financial services continue to be evaluated by market, rather than by operating segment. Financing receivables have significant concentrations of credit risk in the agriculture and

turf and construction and forestry markets. On a geographic basis, 89 percent of our financing receivables were located in the U.S. and Canada at October 27, 2024. There is no disproportionate concentration of credit risk with any single customer or dealer. We retain as collateral security in the equipment associated with most financing receivables. Theft and physical damage insurance are required for this equipment.

Financing Receivables Related to the Sale of Equipment

Financing receivables related to the sale of equipment are presented in the operating section of the cash flow statement. The balances at the end of 2024 and 2023 were as follows:

2024

2023

 

Retail notes*:

Agriculture and turf

$

376

$

1,084

Construction and forestry

271

 

320

Total

647

 

1,404

Wholesale notes

8,951

 

6,947

Direct financing and sales-type leases*

295

 

494

Total financing receivables

9,893

8,845

Less:

Unearned finance income:

Retail notes

37

137

Wholesale notes

24

25

Direct financing and sales-type leases

47

 

60

Total

 

108

 

222

Financing receivables related to our sales of equipment

$

9,785

$

8,623

*    These balances arise from sales and direct financing leases of equipment by company-owned dealers or through direct sales.

Financing Receivables Contractual Installment Payments

Financing receivable installments, including unearned finance income, at October 27, 2024 and October 29, 2023 were scheduled as follows:

2024

2023

 

Unrestricted/Securitized

  

Unrestricted/Securitized

 

Due in months:

 

                

 

                

 

                

 

                

0 – 12

$

23,872

$

3,555

$

22,176

$

2,820

13 – 24

 

8,187

 

2,507

 

8,646

 

2,089

25 – 36

 

6,356

 

1,702

 

6,692

 

1,509

37 – 48

 

4,509

 

918

 

4,844

 

824

49 – 60

 

2,660

 

266

 

2,920

 

241

Thereafter

 

781

 

9

 

942

 

11

Total

$

46,365

$

8,957

$

46,220

$

7,494

Financing Receivables Credit Quality Analysis

We monitor the credit quality of financing receivables based on delinquency status, defined as follows:

Past due balances represent any payments 30 days or more past the due date.
Non-performing financing receivables represent receivables for which we have stopped accruing finance income. This generally occurs when receivables are 90 days delinquent.
Write-offs generally occur when receivables are 120 days delinquent. In these situations, the estimated uncollectible amount 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 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:

October 27, 2024

2024

2023

2022

2021

Retail customer receivables:

 

  

    

 

  

    

 

  

    

 

  

    

 

Agriculture and turf:

Current

$

14,394

$

8,305

$

5,191

$

2,833

30-59 days past due

44

101

55

27

60-89 days past due

22

50

21

10

90+ days past due

1

1

1

2

Non-performing

23

91

76

50

Construction and forestry:

Current

3,100

1,841

1,064

458

30-59 days past due

54

47

25

10

60-89 days past due

25

28

10

7

90+ days past due

1

4

3

1

Non-performing

40

94

67

32

Total

$

17,704

$

10,562

$

6,513

$

3,430

October 27, 2024

2020

Prior Years

Revolving Charge Accounts

Total

Retail customer receivables:

Agriculture and turf:

Current

$

992

$

253

$

4,465

$

36,433

30-59 days past due

11

4

40

282

60-89 days past due

8

2

13

126

90+ days past due

5

Non-performing

20

13

15

288

Construction and forestry:

Current

102

45

114

6,724

30-59 days past due

3

2

4

145

60-89 days past due

2

2

74

90+ days past due

9

Non-performing

9

5

1

248

Total

$

1,147

$

324

$

4,654

$

44,334

October 29, 2023

2023

2022

2021

2020

Retail customer receivables:

 

  

    

 

  

    

 

  

    

 

  

    

 

Agriculture and turf:

Current

$

15,191

$

8,430

$

5,120

$

2,334

30-59 days past due

62

75

39

21

60-89 days past due

18

26

18

10

90+ days past due

2

1

3

3

Non-performing

30

78

62

33

Construction and forestry:

Current

2,927

1,961

1,084

353

30-59 days past due

49

34

27

9

60-89 days past due

19

14

12

5

90+ days past due

6

1

Non-performing

42

80

55

23

Total

$

18,340

$

10,705

$

6,421

$

2,791

October 29, 2023

2019

Prior Years

Revolving Charge Accounts

Total

Retail customer receivables:

Agriculture and turf:

Current

$

853

$

280

$

4,526

$

36,734

30-59 days past due

9

3

29

238

60-89 days past due

4

2

9

87

90+ days past due

9

Non-performing

22

22

8

255

Construction and forestry:

Current

84

29

119

6,557

30-59 days past due

4

4

127

60-89 days past due

2

2

54

90+ days past due

1

8

Non-performing

9

4

1

214

Total

$

987

$

341

$

4,698

$

44,283

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

October 27, 2024

2024

2023

2022

2021

Wholesale receivables:

 

  

    

 

  

    

 

  

    

 

  

    

 

Agriculture and turf:

Current

$

650

$

164

$

29

$

6

30+ days past due

Non-performing

Construction and forestry:

Current

21

11

3

12

30+ days past due

Non-performing

Total

$

671

$

175

$

32

$

18

October 27, 2024

2020

Prior Years

Revolving

Total

Wholesale receivables:

  

    

 

  

    

 

  

    

 

  

    

Agriculture and turf:

Current

$

1

$

6,718

$

7,568

30+ days past due

Non-performing

$

1

1

Construction and forestry:

Current

1,311

1,358

30+ days past due

Non-performing

Total

$

1

$

1

$

8,029

$

8,927

October 29, 2023

2023

2022

2021

2020

Wholesale receivables:

 

  

    

 

  

    

 

  

    

 

  

    

 

Agriculture and turf:

Current

$

631

$

93

$

21

$

4

30+ days past due

Non-performing

Construction and forestry:

Current

23

5

20

30+ days past due

Non-performing

Total

$

654

$

98

$

41

$

4

October 29, 2023

2019

Prior Years

Revolving

Total

Wholesale receivables:

  

    

 

  

    

 

  

    

 

  

    

Agriculture and turf:

Current

$

1

$

160

$

5,175

$

6,085

30+ days past due

Non-performing

1

1

Construction and forestry:

Current

76

712

836

30+ days past due

Non-performing

Total

$

2

$

236

$

5,887

$

6,922

Financing Receivables Allowance for Credit Losses

An analysis of the allowance for credit losses and investment in financing receivables follows:

Retail Notes

Revolving

 

& Financing

Charge

Wholesale

 

 

Leases

 

Accounts

 

Receivables

     Total    

 

2024

 

               

               

 

 

Allowance:

Beginning of year balance

$

172

$

21

$

4

$

197

Provision

262

52

314

Provision reversal for assets held for sale

(38)

(38)

Provision subtotal

 

224

 

52

 

 

276

Write-offs

 

(186)

 

(95)

 

 

(281)

Recoveries

 

13

 

30

 

43

Translation adjustments

 

(4)

 

(2)

 

(6)

End of year balance*

$

219

$

8

$

2

$

229

Financing receivables:

End of year balance

$

39,680

$

4,654

$

8,927

$

53,261

2023

 

 

               

 

 

 

Allowance:

Beginning of year balance

$

299

$

22

$

4

$

325

Provision

97

22

119

Provision reversal for assets held for sale

(142)

(142)

Provision (credit) subtotal

 

(45)

 

22

 

 

(23)

Write-offs

 

(84)

 

(45)

 

 

(129)

Recoveries

 

21

 

22

 

43

Translation adjustments

 

(19)

 

 

(19)

End of year balance*

$

172

$

21

$

4

$

197

Financing receivables:

End of year balance

$

39,585

$

4,698

$

6,922

$

51,205

2022

Allowance:

Beginning of year balance

$

138

$

21

$

7

$

166

Provision (credit)

 

197

 

(2)

 

(3)

 

192

Write-offs

 

(61)

 

(27)

 

 

(88)

Recoveries

 

22

 

30

 

52

Translation adjustments

 

3

 

 

3

End of year balance*

$

299

$

22

$

4

$

325

Financing receivables:

End of year balance

$

35,367

$

4,255

$

3,273

$

42,895

*    Individual allowances were not significant.

We monitor the economy as part of the allowance setting process, including potential impacts of the agricultural market business cycle and rising interest rates. Adjustments to the allowance are incorporated, as necessary.

During 2024, we determined that the financial services business in Brazil met the held for sale criteria. The receivables in Brazil were reclassified to “Assets held for sale.” The associated allowance for credit losses was reversed and a valuation allowance for the assets held for sale was recorded (see Note 4). The allowance for credit losses on retail notes and financing lease receivables increased in 2024 primarily due to higher expected losses as a result of elevated

delinquencies and a decline in market conditions impacting the agriculture receivable portfolio. This increase was partially offset by a decrease in the allowance on revolving charge accounts, driven by write-offs of seasonal financing program accounts and recoveries expected on those accounts in the future.

During 2023, we 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. These operations were sold in the second quarter of 2023 (see Note 3). Excluding the portfolio in Russia, the allowance increased in 2023, primarily driven by growth in the retail notes and financing lease portfolios and higher expected losses on turf and construction customer accounts.

Write-offs by year of origination were as follows:

October 27, 2024

2024

2023

2022

2021

Retail customer receivables:

 

  

    

 

  

    

 

  

    

 

  

    

Agriculture and turf

$

5

$

33

$

25

$

11

Construction and forestry

9

38

30

11

Total

$

14

$

71

$

55

$

22

October 27, 2024

2020

Prior Years

Revolving

Charge

Accounts

Total

Retail customer receivables:

  

    

 

  

    

 

  

    

 

  

    

Agriculture and turf

$

11

$

5

$

87

$

177

Construction and forestry

5

3

8

104

Total

$

16

$

8

$

95

$

281

Financing receivable analysis metrics follow:

2024

2023

Percent of the overall financing receivable portfolio:

Past-due amounts

1.20

1.02

Non-performing

1.01

.92

Allowance for credit losses

.43

.38

Deposits held as credit enhancements

$

142

$

154

Financing Receivables – Modifications

We occasionally grant contractual modifications to customers experiencing financial difficulties. Before offering a modification, we evaluate the ability of the customer to meet the modified payment terms. Modifications offered include payment deferrals, term extensions, or a combination thereof. Finance charges continue to accrue during the deferral or extension period with the exception of modifications related to bankruptcy proceedings. Our allowance for credit losses incorporates historical loss information, including the effects of loan modifications with customers. Therefore, additional adjustments to the allowance are generally not recorded upon modification of a loan.

At October 27, 2024, the ending amortized cost and performance of modified loans with borrowers experiencing financial difficulty in 2024 was as follows:

2024

Current

 

$

78

30-59 days past due

1

60-89 days past due

2

90+ days past due

Non-performing

13

Total

$

94

In 2024, these modifications represented 0.18 percent of our financing receivable portfolio. The financial effects of payment deferrals with borrowers experiencing financial difficulty resulted in a weighted average payment deferral of 8 months to the modified contracts. Term extensions provided to borrowers experiencing financial difficulty added a weighted average of 10 months to the terms of the modified contracts. Additionally, modifications with a combination of both payment deferrals and term extensions resulted in a weighted average payment deferral of 4 months and a weighted average term extension of 7 months.

Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during 2024. At October 27, 2024, commitments to provide additional financing to these customers were $27.

Financing Receivables – Troubled Debt Restructurings

Prior to adopting ASU 2022-02, modifications of loans to borrowers experiencing financial difficulty were considered troubled debt restructurings when the significant modification of the receivable resulted in a concession we would not otherwise consider.

The following table quantifies troubled debt restructurings:

 

2023

 

2022

Number of receivable contracts

209

276

Pre-modification balance

$

10

$

12

Post modification balance

9

10

Troubled debt restructurings for the presented periods related to retail notes. In 2023 and 2022, there were no significant troubled debt restructurings that subsequently defaulted and were written off.

Other Receivables

Other receivables at the end of 2024 and 2023 consisted of:

 

2024

 

2023

 

Taxes receivable

$

1,874

$

1,626

 

Collateral on derivatives

254

667

Receivables from unconsolidated affiliates

3

3

Other

 

414

 

327

Other receivables

 

$

2,545

 

$

2,623

v3.24.3
SECURITIZATION OF FINANCING RECEIVABLES
12 Months Ended
Oct. 27, 2024
SECURITIZATION OF FINANCING RECEIVABLES  
SECURITIZATION OF FINANCING RECEIVABLES

12. SECURITIZATION OF FINANCING RECEIVABLES

Our funding strategy includes receivable securitizations, which allows us to receive cash for financing receivables immediately. While these securitization programs are administered in various forms, they are accomplished in the following basic steps:

1.We transfer financing receivables into a bankruptcy-remote special purpose entity (SPE).
2.The SPE issues debt to investors. The debt is secured by the financing receivables.
3.Investors are paid back based on cash receipts from the financing receivables.

As part of step 1, these receivables are legally isolated from the claims of our general creditors. This ensures cash receipts from the financing receivables are accessible to pay back securitization program investors. The structure of these transactions does not meet the accounting criteria for a sale of receivables. As a result, they are accounted for as a secured borrowing. The receivables and borrowings remain on our balance sheet and are separately reported as “Financing receivables securitized – net” and “Short-term securitization borrowings,” respectively.

We offer securitization programs to institutional investors and other financial institutions through public issuances or privately through a revolving credit agreement. At October 27, 2024, the revolving agreement had a financing limit of up to $2,000. At October 27, 2024, $1,398 of securitization borrowings were outstanding under the revolving agreement. In November 2024, the agreement was renewed for one year with a capacity of $2,500.

Restricted cash held by the SPE serves as a credit enhancement. It would be used to satisfy receivable payment deficiencies, if any. The cash restriction is removed either after all secured borrowing payments are made or proportionally as the secured receivables are collected and the borrowing obligations are reduced.

The components of securitization programs were as follows at the end of 2024 and 2023:

 

  2024  

 

  2023  

 

Financing receivables securitized (retail notes)

$

8,770

$

7,357

 

Allowance for credit losses

 

(47)

 

(22)

Other assets (primarily restricted cash)

 

187

 

152

Total restricted securitized assets

 

$

8,910

 

$

7,487

Short-term securitization borrowings

$

8,431

$

6,995

Accrued interest on borrowings

 

14

 

13

Total liabilities related to restricted securitized assets

 

$

8,445

 

$

7,008

The weighted-average interest rates on short-term securitization borrowings at October 27, 2024 and October 29, 2023 were 5.0 percent and 4.7 percent, respectively.

Although these securitization borrowings are classified as short-term since payment is required if the financing receivables are liquidated early, the payment schedule for these borrowings at October 27, 2024 based on the expected liquidation of the retail notes is as follows: 2025 – $4,036, 2026 – $2,440, 2027 –$1,428, 2028 – $500, 2029 – $37, and later years – $4.

v3.24.3
INVENTORIES
12 Months Ended
Oct. 27, 2024
INVENTORIES  
INVENTORIES

13. INVENTORIES

A majority of inventories owned by us are valued at cost on the “last-in, first-out” (LIFO) basis. If all inventories valued on a LIFO basis had been valued on a “first-in, first-out” (FIFO) basis, the estimated inventories by major classification would have been as follows at the end of 2024 and 2023:

 

2024

 

2023

 

Raw materials and supplies

 

$

3,486

 

$

4,080

 

Work-in-process

 

930

 

1,010

Finished goods and parts

 

5,364

 

5,435

Total FIFO value

 

9,780

 

10,525

Excess of FIFO over LIFO

 

2,687

 

2,365

Inventories

 

$

7,093

 

$

8,160

Percent valued on LIFO basis

 

54%

53%

v3.24.3
PROPERTY AND DEPRECIATION
12 Months Ended
Oct. 27, 2024
PROPERTY AND DEPRECIATION  
PROPERTY AND DEPRECIATION

14. PROPERTY AND DEPRECIATION

A summary of property and equipment at October 27, 2024 and October 29, 2023 follows:

Useful Lives*

 

 

(Years)

 

 2024 

 

 2023 

 

Land

$

390

$

338

 

Buildings and building equipment

 

22

 

5,168

 

4,735

Machinery and equipment

 

11

 

7,125

 

6,613

Dies, patterns, tools, etc.

 

8

 

1,797

 

1,658

All other

 

5

 

1,382

 

1,323

Construction in progress

 

1,313

 

1,266

Total at cost

 

17,175

 

15,933

Less: accumulated depreciation

 

(9,595)

 

(9,054)

Property and equipment – net

 

$

7,580

 

$

6,879

*    Weighted-averages

Property and equipment additions and depreciation follows:

 

2024

 

2023

 

2022

Additions

$

1,707

$

1,597

$

1,197

Depreciation

 

898

 

838

 

806

For property and equipment, more than 10 percent resides in the U.S. and Germany, separately disclosed below:

 

2024

 

2023

U.S.

$

4,132

$

3,807

Germany

 

1,271

 

1,192

Other countries

 

2,177

 

1,880

Total

$

7,580

$

6,879

 

v3.24.3
GOODWILL AND OTHER INTANGIBLE ASSETS - NET
12 Months Ended
Oct. 27, 2024
GOODWILL AND OTHER INTANGIBLE ASSETS - NET  
GOODWILL AND OTHER INTANGIBLE ASSETS - NET

15. GOODWILL AND OTHER INTANGIBLE ASSETS – NET

The changes in amounts of goodwill by operating segments were as follows. There were no accumulated goodwill impairment losses.

 

PPA

 

SAT

 

CF

 

   Total   

 

October 30, 2022

$

646

$

318

$

2,723

$

3,687

 

Acquisitions (Note 3)

41

40

81

Translation adjustments and other

15

5

112

 

132

October 29, 2023

702

363

2,835

 

3,900

Translation adjustments and other

(1)

2

58

 

59

October 27, 2024

$

701

$

365

$

2,893

$

3,959

The components of other intangible assets were as follows:

 

 2024 

  

 2023 

 

Customer lists and relationships

$

508

$

501

 

Technology, patents, trademarks, and other

 

1,423

 

1,387

Total at cost

 

1,931

 

1,888

Less accumulated amortization:

 

 

Customer lists and relationships

(231)

(195)

Technology, patents, trademarks, and other

(701)

(560)

Total accumulated amortization

(932)

(755)

Other intangible assets – net

 

$

999

 

$

1,133

Actual amortization expense for the past three years and the estimated amortization expense for the next five years follows:

Year

Amortization

2022

$

145

2023

169

2024

166

Estimated – 2025

146

2026

128

2027

121

2028

87

2029

74

v3.24.3
OTHER ASSETS
12 Months Ended
Oct. 27, 2024
OTHER ASSETS  
OTHER ASSETS

16. OTHER ASSETS

Other assets at October 27, 2024 and October 29, 2023 consisted of the following:

 

2024

 

2023

Operating lease asset (Note 24)

$

274

$

283

Capitalized software, net

504

 

450

Investment in unconsolidated affiliates

122

 

126

Deferred charges (including prepaids)

412

426

Derivative assets (Note 26)

357

292

Prepaid taxes

238

167

Parts return asset

141

127

Restricted cash

193

162

Matured lease & repossessed inventory

106

59

Other

559

411

Other Assets

$

2,906

$

2,503

Capitalized software has an estimated useful life of three years. Amortization of these software costs in 2024, 2023, and 2022 was $180, $144, and $117, respectively.

v3.24.3
SHORT-TERM BORROWINGS
12 Months Ended
Oct. 27, 2024
SHORT-TERM BORROWINGS  
SHORT-TERM BORROWINGS

17. SHORT-TERM BORROWINGS

Short-term borrowings at the end of 2024 and 2023 consisted of:

 

2024

 

2023

 

Commercial paper

 

$

4,008

 

$

9,100

 

Notes payable to banks

377

 

483

Finance lease obligations due within one year

33

25

Long-term borrowings due within one year

 

9,115

 

8,331

Short-term borrowings

$

13,533

$

17,939

The weighted-average interest rates at the end of 2024 and 2023 were:

    

2024

    

2023

 

Short-term borrowings:

              

              

Commercial paper

     

4.8%

     

5.4%

  

Notes payable to banks

11.0%

 

31.6%

The decrease in the weighted-average interest rates of notes payable to banks is primarily the result of Argentine peso funding representing a smaller portion of the notes outstanding.

Worldwide lines of credit were $10.9 billion at October 27, 2024, consisting primarily of:

a 364-day credit facility agreement of $5.0 billion, expiring in the second quarter of 2025,
a credit facility agreement of $2.75 billion, expiring in the second quarter of 2028, and
a credit facility agreement of $2.75 billion, expiring in the second quarter of 2029.

At October 27, 2024, $6.5 billion of these worldwide lines of credit were unused. For the purpose of computing the unused credit lines, commercial paper and short-term bank borrowings were considered to constitute utilization. These credit agreements require Capital Corporation and other parts of our business to maintain certain performance metrics and liquidity targets. All requirements in the credit agreements have been met during the periods included in the consolidated financial statements.

 

v3.24.3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
12 Months Ended
Oct. 27, 2024
ACCOUNTS PAYABLE AND ACCRUED EXPENSES  
ACCOUNTS PAYABLE AND ACCRUED EXPENSES

18. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses at the end of 2024 and 2023 consisted of the following:

  

2024

  

2023

 

Accounts payable:

Trade payables

  

$

2,698

  

$

3,467

 

Dividends payable

 

405

 

388

Operating lease liabilities

270

281

Deposits withheld from dealers and merchants

152

163

Payables to unconsolidated affiliates

6

6

Other

 

204

 

153

Accrued expenses:

Employee benefits

 

1,925

 

2,152

Accrued taxes

1,509

1,558

Product warranties

 

1,426

 

1,610

Dealer sales incentives

 

996

 

1,243

Extended warranty premium

1,179

1,021

Derivative liabilities

582

1,130

Unearned revenue (contractual liability)

 

744

 

676

Unearned operating lease revenue

495

451

Accrued interest

455

434

Parts return liability

420

392

Other

 

1,077

 

1,005

Accounts payable and accrued expenses

 

$

14,543

 

$

16,130

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $2,121 at October 27, 2024 and $2,228 at

October 29, 2023. Other eliminations were made for accrued taxes and other accrued expenses.

 

v3.24.3
LONG-TERM BORROWINGS
12 Months Ended
Oct. 27, 2024
LONG-TERM BORROWINGS  
LONG-TERM BORROWINGS

19. LONG-TERM BORROWINGS

Long-term borrowings at the end of 2024 and 2023 consisted of:

 

2024

  

2023

 

Underwritten term debt:

               

               

U.S. dollar notes and debentures:

2.75% notes due 2025

$

700

6.55% debentures due 2028

$

200

 

200

5.375% notes due 2029

 

500

 

500

3.10% notes due 2030

700

700

8.10% debentures due 2030

 

250

 

250

7.125% notes due 2031

 

300

 

300

3.90% notes due 2042

 

1,250

 

1,250

2.875% notes due 2049

500

500

3.75% notes due 2050

850

850

Euro notes:

1.85% notes due 2028 (€600 principal)

650

634

2.20% notes due 2032 (€600 principal)

650

634

1.65% notes due 2039 (€650 principal)

704

687

Serial issuances:

Medium-term notes

 

36,566

29,638

Other notes and finance lease obligations

 

265

 

1,769

Less: debt issuance costs and debt discounts

(156)

(135)

Long-term borrowings

 

$

43,229

$

38,477

Medium-term notes due through 2034 are offered by prospectus and issued at fixed and variable rates. All outstanding notes and debentures are senior unsecured borrowings and rank equally with each other. The principal balances and weighted-average interest rates at the end of 2024 and 2023 follow:

 

2024

 

2023

 

Medium-term notes:

               

               

Principal

$

37,141

$

30,902

Weighted-average interest rates

5.2%

4.9%

The principal amounts of our long-term borrowings maturing in each of the next five years are as follows: 2025 – $9,112, 2026 – $8,814, 2027 – $7,720, 2028 – $6,379, and 2029 – $6,078.

 

v3.24.3
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Oct. 27, 2024
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

20. COMMITMENTS AND CONTINGENCIES

A standard warranty is provided as assurance that the equipment will function as intended. The standard warranty period varies by product and region. At the time a sale is recognized, we record an estimate of future warranty costs based on historical claims rate experience and estimated population under warranty. The reconciliation of the changes in the warranty liability follows:

 

    2024   

 

    2023    

 

Beginning of year balance

 

$

1,610

 

$

1,427

 

Warranty claims paid

 

(1,327)

 

(1,181)

New product warranty accruals

 

1,157

 

1,347

Foreign exchange

 

(14)

 

17

End of year balance

 

$

1,426

 

$

1,610

The costs for extended warranty programs are recognized as incurred. See Note 9 for extended warranty claim costs.

In certain international markets, we provide guarantees to banks for the retail financing of John Deere equipment. At the end of 2024, the notional value of these guarantees was $141. We may repossess the equipment collateralizing the receivables. At October 27, 2024, the accrued losses under these guarantees were not material.

We also had other miscellaneous contingent liabilities totaling approximately $130 at October 27, 2024. The accrued liability for these contingencies was $30 at October 27, 2024.

At October 27, 2024, we had commitments of approximately $435 for the construction and acquisition of property and equipment. Also, at October 27, 2024, we had restricted assets of $253, classified as “Other assets.”

We have commitments to extend credit to customers. The commitments are in the form of lines of credit and other pre-approved credit arrangements. We have the right to cancel or amend the terms of these commitments at any time. These commitments are not expected to be fully drawn upon; therefore, the total commitment amounts likely do not represent a future cash requirement. The commitments to extend credit at October 27, 2024 were:

$13.8 billion to John Deere dealers, and
$33.6 billion to retail customers.

We are subject to various unresolved legal actions. The accrued losses on these matters were not material at October 27, 2024. We believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on our financial statements. The most prevalent legal claims relate to:

product liability (including asbestos-related matters),
employment,
patent,
trademark, and
antitrust matters (including class action litigation).
v3.24.3
CAPITAL STOCK
12 Months Ended
Oct. 27, 2024
CAPITAL STOCK  
CAPITAL STOCK

21. CAPITAL STOCK

Our stock is listed on the New York Stock Exchange under the symbol “DE.” At the end of 2024, there were 16,354 holders of record of our common stock.

The number of common shares we are authorized to issue is 1.2 billion. The common shares issued at October 27, 2024, October 29, 2023, and October 30, 2022 were 536.4 million. 271.8 million common shares were outstanding at October 27, 2024, with the remainder held in treasury stock.

The number of authorized preferred shares is 9 million. No preferred shares have been issued.

In December 2022, the Board of Directors authorized the repurchase of up to $18.0 billion of common stock. At the end of fiscal year 2024, this repurchase program had $8.9 billion (21.9 million shares based on our fiscal year-end closing NYSE common stock price of $407.93 per share) remaining to be

repurchased. Repurchases of our common stock under this plan are made from time to time, at our discretion, in the open market.

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

 

   2024   

 

   2023   

 

   2022   

 

Net income attributable to Deere & Company

 

$

7,100

 

$

10,166

 

$

7,131

Average shares outstanding

 

276.0

 

292.2

 

304.5

Basic per share

 

$

25.73

 

$

34.80

 

$

23.42

Average shares outstanding

 

276.0

 

292.2

 

304.5

Effect of dilutive stock options and unvested restricted stock units

 

1.1

 

1.4

 

1.8

Total potential shares outstanding

 

277.1

 

293.6

 

306.3

Diluted per share

 

$

25.62

 

$

34.63

 

$

23.28

Shares excluded as antidilutive

 

.3

 

.1

 

.2

v3.24.3
SHARE-BASED COMPENSATION
12 Months Ended
Oct. 27, 2024
SHARE-BASED COMPENSATION  
SHARE-BASED COMPENSATION

22. SHARE-BASED COMPENSATION

We issue stock options and restricted stock units (RSU) to key employees. RSUs are also issued to nonemployee directors for their services as directors. RSUs consist of service-based, performance/service-based, and market/service-based awards.

The Long-Term Incentive Cash granted to certain employees is accounted for as share-based compensation. This incentive includes a performance metric based, in part, on the price of our shares. We are authorized to grant shares for equity incentive awards. The outstanding shares authorized were 15.0 million at October 27, 2024. We currently use shares that have been repurchased through our stock repurchase programs to satisfy share option exercises and RSU conversions. The stock awards vesting periods and the dividend equivalents earned during the vesting period follow:

Vesting

Dividend

Period

Equivalents

Stock options

1-3 years

Not included

Service-based RSUs

1-3 years

Included

Performance/service-based RSUs

3 years

Not included

Market/service-based RSUs

3 years

Not included

Stock options expire ten years from the grant date. Performance/service-based awards are subject to a performance metric based on our compound annual revenue growth rate, compared to a benchmark group of companies. Market/service-based awards are subject to a market related metric based on total shareholder return, compared to a benchmark group of companies. The performance/service-based units and market/service-based units award common stock in a range of zero to 200 percent for each unit granted based on the level of the metric achieved.

The fair value of stock options and restricted stock units is determined using our closing price on the grant date. The fair value of the market/service-based RSUs is determined using a Monte Carlo model. These awards are expensed over the shorter of the award vesting period or the employee’s retirement eligibility period. The performance/service-based units’ expense is adjusted quarterly for the probable number of shares to be awarded. We

recognize the effect of award forfeitures as an adjustment to compensation expense in the period the forfeiture occurs.

The total share-based compensation expense, recognized income tax benefits, and total grant-date fair values of stock options and restricted stock units vested consisted of the following:

2024

2023

2022

Share-based compensation expense

$

208

$

130

$

85

Income tax benefits

34

21

17

Stock options and restricted stock units vested

110

84

74

At October 27, 2024, there was $110 of total unrecognized compensation cost from share-based compensation arrangements. This compensation is expected to be recognized over a weighted-average period of approximately 1.5 years.

Stock Options

The fair value of each stock option award was estimated on the date of grant using a binomial lattice option valuation model. The assumptions used for the binomial lattice model to determine the fair value of options follow:

 

  2024  

 

  2023  

 

  2022  

 

Risk-free interest rate*

 

3.96%

 

2.68%

 

1.27%

Expected dividends

1.6%

1.1%

1.2%

Volatility*

27.0%

33.0%

32.0%

Expected term (in years)*

 

5.1

 

5.1

 

5.1

*    Weighted-averages

The risk-free rates are based on U.S. Treasury security yields at the time of grant. Expected volatilities are based on implied volatilities from traded call options on our stock. We use historical data to estimate option exercise behavior representing the weighted-average period that options granted are expected to be outstanding.

The activity for outstanding stock options at October 27, 2024, and changes during 2024 follow:

  

Remaining

Aggregate

 

Exercise

Contractual

Intrinsic

 

Shares

Price*

Term

Value

 

(millions)

 

(per share)

 

(years)

 

(millions)

 

Outstanding at beginning of year

 

1.7

$

190.08

Granted

 

.2

 

377.01

Exercised

 

(.4)

 

102.85

Outstanding at end of year

 

1.5

 

242.41

 

5.04

 

$

249.1

Exercisable at end of year

 

1.1

 

197.53

 

3.96

 

239.6

*    Weighted-averages

The amounts related to stock options were as follows in millions of dollars unless otherwise noted:

2024

2023

2022

Weighted-average grant date fair value (per share)

$

98.04

$

136.46

$

89.20

Intrinsic value of options exercised

125

153

169

Cash received from exercises

44

60

63

Tax benefit from exercises

27

34

39

Restricted Stock Units

The weighted-average grant date fair values were as follows:

2024

2023

2022

Service-based

$

377.72

$

428.35

$

347.59

Performance/service-based

360.53

424.93

331.47

Market/service-based

370.87

Our RSUs at October 27, 2024 and changes during 2024 in thousands of shares and dollars per share follow:

Grant-Date

 

Shares

Fair Value*

(per share)

 

Service-based:

Nonvested at beginning of year

 

310

$

348.82

Granted

 

383

 

377.72

Vested

 

(196)

 

330.73

Forfeited

(26)

375.41

Nonvested at end of year

 

471

 

378.39

Performance/service-based:

Nonvested at beginning of year

 

119

 

331.78

Granted

 

52

 

360.53

Vested

 

(88)

 

245.73

Performance change

 

44

 

245.73

Forfeited

 

(1)

 

360.53

Nonvested at end of year

 

126

 

373.35

Market/service-based:

Nonvested at beginning of year

 

 

Granted

 

52

 

370.87

Forfeited

 

(1)

 

370.87

Nonvested at end of year

 

51

 

370.87

*    Weighted-averages

 

v3.24.3
OTHER COMPREHENSIVE INCOME ITEMS
12 Months Ended
Oct. 27, 2024
OTHER COMPREHENSIVE INCOME ITEMS  
OTHER COMPREHENSIVE INCOME ITEMS

23. OTHER COMPREHENSIVE INCOME ITEMS

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

2024

2023

2022

Retirement benefits adjustment

$

(1,274)

$

(845)

$

(389)

Cumulative translation adjustment

(2,286)

(2,151)

(2,594)

Unrealized gain (loss) on derivatives

(72)

(8)

21

Unrealized loss on debt securities

(74)

(110)

(94)

Accumulated other comprehensive income (loss)

$

(3,706)

$

(3,114)

$

(3,056)

The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss).

Before

Tax

After

 

Tax

(Expense)

Tax

 

 

Amount

 

Credit

 

Amount

 

2024

Cumulative translation adjustment

 

$

(147)

$

12

$

(135)

Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss)

 

(10)

2

 

(8)

Reclassification of realized (gain) loss to Interest expense

(71)

 

15

(56)

Net unrealized gain (loss) on derivatives

 

(81)

 

17

 

(64)

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

 

45

 

(8)

 

37

Reclassification of realized (gain) loss to Other income

(1)

 

 

(1)

Net unrealized gain (loss) on debt securities

 

44

 

(8)

 

36

Retirement benefits adjustment:

Net actuarial gain (loss)

 

(568)

 

136

 

(432)

Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss

 

(72)

 

19

 

(53)

Prior service (credit) cost

 

36

 

(9)

 

27

Settlements/curtailments

 

38

 

(9)

 

29

Net unrealized gain (loss) on retirement benefits adjustment

 

(566)

 

137

 

(429)

Total other comprehensive income (loss)

 

$

(750)

 

$

158

 

$

(592)

Before

Tax

After

 

Tax

(Expense)

Tax

 

 

Amount

 

Credit

 

Amount

 

2023

 

 

 

Cumulative translation adjustment:

Unrealized translation gain (loss)

 

$

424

$

(2)

$

422

Reclassification of realized (gain) loss to:

Selling, administrative and general expenses

10

10

Other operating expenses

11

11

Net unrealized translation gain (loss)

445

(2)

443

Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss)

 

25

(5)

 

20

Reclassification of realized (gain) loss to Interest expense

(62)

13

(49)

Net unrealized gain (loss) on derivatives

 

(37)

 

8

 

(29)

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

 

(20)

 

4

 

(16)

Net unrealized gain (loss) on debt securities

 

(20)

 

4

 

(16)

Retirement benefits adjustment:

Net actuarial gain (loss)

 

(589)

 

139

 

(450)

Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss

 

(81)

 

20

 

(61)

Prior service (credit) cost

 

37

 

(9)

 

28

Settlements

 

37

 

(10)

 

27

Net unrealized gain (loss) on retirement benefits adjustment

 

(596)

 

140

 

(456)

Total other comprehensive income (loss)

 

$

(208)

 

$

150

 

$

(58)

Before

Tax

After

 

Tax

(Expense)

Tax

 

 

Amount

 

Credit

 

Amount

 

2022

Cumulative translation adjustment

 

$

(1,105)

$

(11)

$

(1,116)

Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss)

 

89

(19)

 

70

Reclassification of realized (gain) loss to Interest expense

(9)

2

(7)

Net unrealized gain (loss) on derivatives

 

80

 

(17)

 

63

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

 

(140)

 

30

 

(110)

Reclassification of realized (gain) loss to Other income

1

 

1

Net unrealized gain (loss) on debt securities

 

(139)

 

30

 

(109)

Retirement benefits adjustment:

Net actuarial gain (loss)

 

1,192

 

(298)

 

894

Prior service credit (cost)

(517)

124

(393)

Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss

 

116

 

(29)

 

87

Prior service (credit) cost

 

30

 

(7)

 

23

Settlements/curtailment

 

45

 

(11)

 

34

Net unrealized gain (loss) on retirement benefits adjustment

 

866

 

(221)

 

645

Total other comprehensive income (loss)

 

$

(298)

 

$

(219)

 

$

(517)

v3.24.3
LEASES
12 Months Ended
Oct. 27, 2024
LEASES  
LEASES

24. LEASES

We are both a lessee and a lessor. We lease for our own use warehouse facilities, office space, production equipment, information technology equipment, and vehicles. The financial services operations lease equipment produced or sold by us and a limited amount of other equipment to retail customers. We determine if an arrangement is or contains a lease at the contract inception.

Lessee

The amounts of the lease liability and right of use asset are determined at lease commencement and are based on the present value of the lease payments over the lease term. The lease payments are discounted using our incremental borrowing rate since the rate implicit in the lease is not readily determinable. We determine the incremental borrowing rate for each lease based on the lease term and the economic environment of the country where the asset will be used, adjusted as if the borrowings were collateralized. Leases with contractual periods greater than one year and that do not meet the finance lease criteria are classified as operating leases.

We have elected to combine lease and nonlease components, such as maintenance and utilities costs included in a lease contract, for all asset classes. Leases with an initial term of one year or less are expensed on a straight-line basis over the lease term and recorded in short-term lease expense. Variable lease expense includes warehouse facilities leases with payments based on utilization exceeding contractual minimum amounts and leases with

payments indexed to inflation when the index changes after lease commencement.

The lease expense by type consisted of the following:

2024

2023

2022

Operating lease expense

$

133

$

129

$

114

Short-term lease expense

38

49

55

Variable lease expense

72

80

74

Finance lease:

Depreciation expense

34

28

26

Interest on lease liabilities

4

2

1

Total lease expense

$

281

$

288

$

270

Operating and finance lease right of use assets and lease liabilities follow:

2024

2023

Operating leases:

Other assets

$

274

$

283

Accounts payable and accrued expenses

270

281

Finance leases:

Property and equipment — net

$

89

$

66

Short-term borrowings

33

25

Long-term borrowings

72

49

Total finance lease liabilities

$

105

$

74

The weighted-average remaining lease terms in years and discount rates follows:

2024

2023

Weighted-average remaining lease terms:

Operating leases

7

7

Finance leases

4

4

Weighted-average discount rates:

Operating leases

3.5%

3.1%

Finance leases

4.3%

3.6%

Lease payment amounts in each of the next five years at October 27, 2024 follow:

Operating

Finance

Due in:

Leases

Leases

2025

$

97

$

38

2026

57

30

2027

39

22

2028

34

13

2029

22

6

Later years

40

6

Total lease payments

289

115

Less: imputed interest

(19)

(10)

Total lease liabilities

$

270

$

105

Cash paid for amounts included in the measurement of lease liabilities follows:

2024

2023

2022

Operating cash flows for operating leases

$

129

$

132

$

127

Operating cash flows for finance leases

4

2

1

Financing cash flows for finance leases

36

31

28

Right of use assets obtained in exchange for lease liabilities follow:

2024

2023

Operating leases

$

75

$

97

Finance leases

67

54

Lessor

We lease equipment manufactured or sold by us through John Deere Financial. Sales-type and direct financing leases are reported in “Financing receivables net.” Operating leases are reported in “Equipment on operating leases net.”

At the end of the majority of leases, the lessee has the option to purchase the underlying equipment for the contractual residual value or return it to the dealer. If the equipment is returned to the dealer, the dealer also has the option to purchase the equipment or return it to us for remarketing.

We estimate the residual values for operating leases at lease inception based on several factors, including lease term, expected hours of usage, historical wholesale sale prices, return experience, intended use of the equipment, market dynamics and trends, and dealer residual guarantees. We review residual value estimates during the lease term and test the carrying value of our operating lease assets for impairment when events or circumstances necessitate. The depreciation is adjusted on a straight-line basis over the remaining lease term if residual value estimates change. Lease agreements include usage limits and specifications on machine condition, which allow us to assess lessees for excess use or damages to the underlying equipment.

We have elected to combine lease and nonlease components. The nonlease components relate to preventative maintenance and extended warranty agreements financed by the retail customer. We have also elected to report consideration related to sales and value added taxes net of the related tax expense. Property taxes on leased assets are recorded on a gross basis in “Finance and interest income” and “Other operating expenses.” Variable lease revenues relate to property taxes on leased assets in certain markets and late fees.

Lease revenues earned by us follow:

2024

2023

2022

Sales-type and direct finance lease revenues

$

190

$

165

$

154

Operating lease revenues

1,403

1,312

1,318

Variable lease revenues

17

16

26

Total lease revenues

$

1,610

$

1,493

$

1,498

At the time of accepting a lease that qualifies as a sales-type or direct financing lease, we record the gross amount of lease payments receivable, estimated residual value of the leased equipment, and unearned finance income. The unearned finance income is recognized as revenue over the lease term using the interest method.

Sales-type and direct financing lease receivables by market follow:

2024

2023

Agriculture and turf

$

1,022

$

1,078

Construction and forestry

1,034

1,048

Total

2,056

2,126

Guaranteed residual values

921

723

Unguaranteed residual values

55

57

Less: unearned finance income

(307)

(350)

Financing lease receivables

$

2,725

$

2,556

Scheduled payments, including guaranteed residual values, on sales-type and direct financing lease receivables at October 27, 2024 follow:

Due in:

2024

2025

$

1,598

2026

620

2027

389

2028

213

2029

133

Later years

24

Total

$

2,977

Lease payments from operating leases are recorded as income on a straight-line method over the lease terms. Operating lease assets are recorded at cost and depreciated to their estimated residual value on a straight-line method over the terms of the leases.

The cost of equipment on operating leases by market follow:

2024

2023

Agriculture and turf

$

7,875

$

7,168

Construction and forestry

1,142

1,212

Total

9,017

8,380

Less: accumulated depreciation

(1,566)

(1,463)

Equipment on operating leases – net

$

7,451

$

6,917

Operating lease residual values

$

5,227

$

4,864

First-loss residual value guarantees

1,393

1,188

The equipment is depreciated on a straight-line basis over the term of the lease. The corresponding depreciation expense was $874 in 2024, $853 in 2023, and $827 in 2022.

Lease payments for operating leases are scheduled as follows:

Due in:

2024

2025

$

1,151

2026

865

2027

534

2028

279

2029

71

Later years

9

Total

$

2,909

v3.24.3
FAIR VALUE MEASUREMENTS
12 Months Ended
Oct. 27, 2024
FAIR VALUE MEASUREMENTS  
FAIR VALUE MEASUREMENTS

25. FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To determine fair value, we use various methods including market and income approaches. We utilize valuation models and techniques that maximize the use of observable inputs. The models are industry-standard models that consider various assumptions including time values and yield curves as well as other economic measures. These valuation techniques are consistently applied.

Level 1 measurements consist of quoted prices in active markets for identical assets or liabilities. Level 2 measurements include significant other observable inputs such as quoted prices for similar assets or liabilities in active markets; identical assets or liabilities in inactive markets; observable inputs such as interest rates and yield curves; and other market-corroborated inputs. Level 3 measurements include significant unobservable inputs.

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 us 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.

The fair values of financial instruments that do not approximate the carrying values at October 27, 2024 and October 29, 2023 follow:

2024

2023

Carrying

     Fair     

Carrying

     Fair     

 

Value

  

Value*

  

Value

  

Value*

 

Financing receivables – net

$

44,309

$

44,336

$

43,673

$

42,777

Financing receivables securitized – net

8,723

8,654

7,335

7,056

Short-term securitization borrowings

8,431

8,453

6,995

6,921

Long-term borrowings due within one year**

 

9,115

 

9,079

 

8,331

 

8,156

Long-term borrowings**

 

43,157

 

42,804

 

38,428

 

36,873

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

**  Values exclude finance lease liabilities that are presented as borrowings (see Note 24).

Assets and liabilities measured at October 27, 2024 and October 29, 2023 at fair value on a recurring basis follow, excluding our cash equivalents, which were carried at a cost that approximates fair value and consisted of money market funds and time deposits:

 

   2024   

 

   2023   

 

Level 1:

Marketable securities

International equity securities

 

 

$

3

International mutual funds securities

101

U.S. equity fund

86

U.S. fixed income fund

 

32

U.S. government debt securities

$

239

 

78

Total Level 1 marketable securities

239

300

Level 2:

Marketable securities

Corporate debt securities

 

423

 

244

International debt securities

143

1

Mortgage-backed securities*

 

165

 

185

Municipal debt securities

 

74

 

75

U.S. government debt securities

110

141

Total Level 2 marketable securities

 

915

 

646

Other assets - Derivatives

357

292

Accounts payable and accrued expenses – Derivatives

582

1,130

Level 3:

Accounts payable and accrued expenses – Deferred consideration

147

186

*    Primarily issued by U.S. government sponsored enterprises.

Fair value, nonrecurring level 3 measurements from impairments at October 27, 2024 and October 29, 2023 follow:

Fair Value

Losses

 

 2024

 

 2023 

 

 2024 

 

 2023 

 

 2022 

Inventories

$

19

Property and equipment – net

 

 

 

 

 

41

Other intangible assets – net

 

 

28

Other assets

$

23

$

28

Assets held for sale

 

2,944

 

97

The following is a description of the valuation methodologies we use to measure certain financial instruments on the balance sheets at fair value. For more information on asset impairments, see Note 4.

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 the fund’s net asset value, based on the fair value of the underlying securities.

Derivatives Our 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.

Deferred consideration – The total purchase price consideration for three former Deere-Hitachi joint venture factories acquired in 2022 included supply agreement price increases beyond inflation adjustments. This deferred consideration will be paid as we purchase Deere-branded excavators, components, and service parts from Hitachi under the agreement with a duration that ranges from 5 to 30 years (see Note 3). The deferred consideration balance is reduced as purchases are made and valued on a discounted cash flow approach using market rates.

Inventories – The impairment was based on net realizable value, less reasonably predictable selling and disposal costs.

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, or quoted prices when available.

Other intangible assets – net – In 2022, we considered external valuations based on our probability weighted cash flow analysis.

Other assets (Investment in unconsolidated affiliates) – Other than temporary impairments of investments are measured as the difference between the implied fair value and the carrying value of the investments. The estimated fair value for privately held entities is determined by an income approach (discounted cash flows), which includes inputs such as interest rates and margins (see Note 4).

Assets held for sale The impairment was measured at the lower of the carrying amount or fair value less costs to sell. Fair value was based on the probable sale price. The inputs included estimates of the final sale price (see Note 4).

 

v3.24.3
DERIVATIVE INSTRUMENTS
12 Months Ended
Oct. 27, 2024
DERIVATIVE INSTRUMENTS  
DERIVATIVE INSTRUMENTS

26. DERIVATIVE INSTRUMENTS

Fair values of our derivative instruments and the associated notional amounts at the end of 2024 and 2023 were as follows. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.”

Fair Value

Notional

Assets

Liabilities

2024

Cash flow hedges:

 

 

    

  

  

 

Interest rate contracts

 

$

2,875

$

3

$

20

 

 

Fair value hedges:

Interest rate contracts

15,864

115

467

Cross-currency interest rate contracts

975

31

 

Not designated as hedging instruments:

Interest rate contracts

12,518

97

75

Foreign exchange contracts

7,533

95

20

Cross-currency interest rate contracts

158

16

2023

Cash flow hedges:

 

 

    

  

  

 

Interest rate contracts

 

$

1,500

$

45

 

 

Fair value hedges:

Interest rate contracts

12,691

$

970

 

Not designated as hedging instruments:

Interest rate contracts

13,853

169

98

Foreign exchange contracts

8,117

75

54

Cross-currency interest rate contracts

176

3

8

The amounts recorded, at October 27, 2024 and October 29, 2023, in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. Fair value hedging adjustments are included in the carrying amount of the hedged item.

Active Hedging

Discontinued Hedging

Relationships

Relationships

Carrying

Cumulative

Carrying

Cumulative

Amount of

Fair Value

Amount of

Fair Value

Hedged

Hedging

Formerly

Hedging

Item

Amount

Hedged Item

Amount

2024

Short-term borrowings

$

287

$

(1)

$

1,782

$

7

Long-term borrowings

16,125

(347)

8,626

(228)

2023

Short-term borrowings

$

1,814

$

15

Long-term borrowings

$

11,660

$

(976)

7,144

(288)

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

 

  2024  

 

  2023  

 

  2022  

 

Fair Value Hedges

Interest rate contracts – Interest expense

 

$

226

 

$

(542)

 

$

(1,144)

Cash Flow Hedges

Recognized in OCI:

Interest rate contracts – OCI (pretax)

$

(10)

$

25

$

89

Reclassified from OCI:

Interest rate contracts – Interest expense

 

71

 

62

 

9

Not Designated as Hedges

Interest rate contracts – Net sales

$

1

$

53

Interest rate contracts – Interest expense

 

$

(4)

 

40

 

81

Foreign exchange contracts – Net sales

(2)

(6)

(6)

Foreign exchange contracts – Cost of sales

 

10

 

8

 

(64)

Foreign exchange contracts – Other operating expenses

 

(135)

 

100

 

402

Total not designated

 

$

(131)

 

$

143

 

$

466

The amount of loss recorded in OCI at October 27, 2024 that is expected to be reclassified to “Interest expense” in the next twelve months if interest rates remain unchanged is $6 after-tax. There were no gains or losses reclassified from OCI to earnings based on the probability that the original forecasted transaction would not occur.

Counterparty Risk and Collateral

Derivative instruments are subject to significant concentrations of credit risk to the banking sector. We manage 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 us 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 our derivative agreements contain credit support provisions that may require us 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 October 27, 2024 and October 29, 2023, was $562 and $1,076, respectively. In accordance with the limits established in these agreements, we posted $245 and $659 of cash collateral at October 27, 2024 and October 29, 2023, respectively. In addition, we paid $8 of collateral that was outstanding at both October 27, 2024 and October 29, 2023 to participate in an international futures market to hedge currency exposure, not included in the following table.

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and collateral at October 27, 2024 and October 29, 2023 follows:

Gross Amounts

Netting

Net

  

Recognized

  

 Arrangements 

  

Collateral

  

Amount

 

2024

Assets

 

$

357

 

$

(142)

 

 

$

215

Liabilities

 

582

 

(142)

$

(246)

194

2023

Assets

 

$

292

 

$

(152)

 

 

$

140

Liabilities

 

1,130

 

(152)

$

(659)

319

 

v3.24.3
SEGMENT DATA
12 Months Ended
Oct. 27, 2024
SEGMENT DATA  
SEGMENT DATA

27. SEGMENT DATA

Our operations are presently organized and reported in four business segments. This presentation is consistent with how the chief operating decision maker (the CEO) assesses the performance of the segments and makes decisions about resource allocations.

The PPA segment defines, develops, and delivers global equipment and technology solutions to unlock customer value for production-scale growers of large grains, small grains, cotton, and sugarcane. The segment’s primary products include large and certain mid-size tractors, combines, cotton pickers, sugarcane harvesters and loaders, and soil preparation, seeding, application, crop care equipment, and related attachments and service parts.

The SAT segment defines, develops, and delivers global equipment and technology solutions to unlock customer value for dairy and livestock producers, high-value and small acreage crop producers, and turf and utility customers. The segment’s primary products include certain mid-size tractors, utility and compact utility tractors, as well as hay and forage equipment, riding and commercial lawn equipment, golf course equipment, utility vehicles, and related attachments and service parts.

The CF segment defines, develops, and delivers a broad range of machines and technology solutions organized along the earthmoving, forestry, and roadbuilding production systems. The segment’s primary products include backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, skid-steer loaders, milling machines, log harvesters, and related attachments and service parts.

The products and services produced by the segments above are marketed through independent retail dealer networks and major retail outlets. For roadbuilding products in certain markets outside the U.S. and Canada, the products are sold through company-owned sales and service subsidiaries.

The financial services segment finances sales and leases by John Deere dealers of new and used production and precision agriculture equipment, small agriculture and turf equipment, and construction and forestry equipment. 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.

Because of integrated manufacturing operations and common administrative and marketing support, a substantial number of allocations must be made to determine operating segment data.

Identifiable assets assigned to the operating segments are those the units actively manage, consisting of trade receivables, inventories, property and equipment, intangible assets, and certain other assets. Corporate assets are managed collectively, including cash and cash equivalents, retirement benefit net assets, goodwill, and deferred income tax assets.

Information relating to operations by operating segment follows for the years ended October 27, 2024, October 29, 2023, and October 30, 2022.

OPERATING SEGMENTS

2024

 

2023

 

2022

 

Net sales and revenues

 

               

               

               

Unaffiliated customers:

Production & precision ag net sales

$

20,834

$

26,790

$

22,002

Small ag & turf net sales

10,969

13,980

13,381

Construction & forestry net sales

 

12,956

 

14,795

 

12,534

Financial services revenues

 

5,782

 

4,721

 

3,625

Other revenues*

 

1,175

 

965

 

1,035

Total

$

51,716

$

61,251

$

52,577

*    Other revenues are primarily the PPA, SAT, and CF revenues for finance and interest income and other income.

Operating profit

 

               

               

               

Production & precision ag

$

4,514

$

6,996

$

4,386

Small ag & turf

1,627

2,472

1,949

Construction & forestry

 

2,009

 

2,695

 

2,014

Financial services*

 

889

 

795

 

1,159

Total operating profit*

 

9,039

 

12,958

 

9,508

Interest income

 

492

 

559

 

159

Investment income

 

68

 

 

Interest expense

 

(396)

 

(411)

 

(390)

Foreign exchange loss from equipment operations’ financing activities

 

(81)

 

(114)

 

(103)

Pension and OPEB benefit, excluding service cost component

333

286

218

Corporate expenses – net

 

(273)

 

(252)

 

(255)

Income taxes

 

(2,094)

 

(2,871)

 

(2,007)

Total

 

(1,951)

 

(2,803)

 

(2,378)

Net income

 

7,088

 

10,155

 

7,130

Less: Net loss attributable to noncontrolling interests

 

(12)

(11)

(1)

Net income attributable to Deere & Company

$

7,100

$

10,166

$

7,131

*    Operating profit of the financial services business segment includes the effect of its interest income, investment income, interest expense, and foreign exchange gains or losses.

OPERATING SEGMENTS

 

2024

 

2023

 

2022

 

Interest income*

 

               

               

               

Production & precision ag

$

48

$

29

$

22

Small ag & turf

42

35

24

Construction & forestry

 

14

 

13

 

8

Financial services

 

4,620

 

3,731

 

2,245

Corporate

 

492

 

559

 

159

Intercompany

 

(872)

 

(1,008)

 

(431)

Total

$

4,344

$

3,359

$

2,027

*    Does not include finance rental income for equipment on operating leases.

Interest expense

 

               

               

               

Production & precision ag

$

221

$

282

$

122

Small ag & turf

215

236

105

Construction & forestry

 

204

 

169

 

72

Financial services

 

3,182

 

2,362

 

799

Corporate

 

396

 

411

 

390

Intercompany

 

(870)

 

(1,007)

 

(426)

Total

$

3,348

$

2,453

$

1,062

 

Depreciation* and amortization expense

 

               

               

               

Production & precision ag

$

643

$

581

$

523

Small ag & turf

246

241

236

Construction & forestry

 

331

 

301

 

282

Financial services

 

1,040

 

1,016

 

1,050

Intercompany

(142)

(135)

(196)

Total

$

2,118

$

2,004

$

1,895

*    Includes depreciation for equipment on operating leases.

Identifiable operating assets

 

               

               

               

Production & precision ag

$

8,696

$

8,734

$

8,414

Small ag & turf

4,130

4,348

4,451

Construction & forestry

 

7,137

 

7,139

 

6,754

Financial services

 

73,612

 

70,732

 

58,864

Corporate

 

13,745

 

13,134

 

11,547

Total

$

107,320

$

104,087

$

90,030

Capital additions

 

                 

               

               

Production & precision ag

$

1,025

$

896

$

649

Small ag & turf

327

386

329

Construction & forestry

 

352

 

311

 

217

Financial services

 

3

 

4

 

2

Total

$

1,707

$

1,597

$

1,197

 

v3.24.3
SUBSEQUENT EVENTS
12 Months Ended
Oct. 27, 2024
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

28. SUBSEQUENT EVENTS

On December 3, 2024, a quarterly dividend of $1.62 per share was declared at the Board of Directors meeting, payable on February 10, 2025 to stockholders of record on December 31, 2024.

In November 2024, we entered into a retail note securitization transaction resulting in $725 of secured borrowings.

v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Pay vs Performance Disclosure      
Net Income (Loss) $ 7,100 $ 10,166 $ 7,131
v3.24.3
Insider Trading Arrangements
3 Months Ended
Oct. 27, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
Insider Trading Policies and Procedures
12 Months Ended
Oct. 27, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Policies)
12 Months Ended
Oct. 27, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS  
Consolidation, Policy

The consolidated financial statements represent the consolidation of all companies in which Deere & Company has a controlling interest. Certain variable interest entities (VIEs) are consolidated since we are the primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the VIEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. We consolidate certain VIEs related to retail note securitizations (see Note 12).

We record our investment in each unconsolidated affiliated company (20 to 50 percent ownership) at cost, plus or minus our share of the profit or loss after acquisition, and further reduced for any dividends. Other investments (less than 20 percent ownership) are recorded at cost.

Fiscal Period, Policy

We use a 52/53 week fiscal year ending on the last Sunday in the reporting period, which generally occurs near the end of October. An additional week is included in the fourth fiscal quarter every five or six years to realign our fiscal quarters with the calendar. The fiscal year ends for 2024, 2023, and 2022 were October 27, 2024, October 29, 2023, and October 30, 2022, respectively. Fiscal years 2024, 2023, and 2022 contained 52 weeks. Unless otherwise stated, references to particular years, quarters, or months refer to our fiscal years and the associated periods in those fiscal years.

Use of Estimates in Financial Statements, Policy Certain accounting policies require management to make estimates and assumptions in determining the amounts reflected in the financial statements and related disclosures. Actual results could differ from those estimates.
Revenue Recognition, Policy

General

Sales of equipment and service parts are recognized when we transfer control of the good to the independent customer, which generally occurs upon shipment. In most situations, the independent customer is a dealer, which subsequently sells the equipment and service parts purchased from us to a retail customer, who can finance the equipment with the financial services segment or another source of financing. In some situations, we sell directly to a retail customer. The term “customer” includes both dealers and retail customers to whom we make direct sales.

Interest-Free Periods and Past-Due Interest

We charge dealers interest on outstanding balances from the earlier of when goods are sold to a retail customer by the dealer or the expiration of the interest-free period granted at the time of the sale to the dealer. Interest-free periods are determined based on the type of equipment sold and the time of year of the sale. These periods range from one to twelve months for most equipment. Interest-free periods may not be extended. Interest charged may not be forgiven, and past due interest rates are charged at higher rates. If the interest-free or below market interest rate period exceeds one year, we adjust the expected sales revenue for the effects of the time value of money using a current market interest rate. The revenue related to the financing component is recognized in “Finance and interest income” using the interest method. We do not adjust the sales price to account for a financing component if the expected interest-free or below market period is one year or less.

Right of Return

Generally, no right of return exists on sales of equipment. Dealers cannot cancel purchases after we recognize a sale and are responsible for payment even if the equipment is not sold to a retail customer. Service parts and certain attachment returns are estimable and accrued at the time a sale is recognized. The estimated returns are based on historical return rates, current dealer inventory levels, and current economic conditions. The estimated returns are recorded in “Other assets” for the inventory value of estimated returns, adjusted for restocking fees. The estimated dealer refund liability, adjusted for restocking fees, is recorded in “Accounts payable and accrued expenses.”

Remanufacturing

We remanufacture used engines and components (cores) that are sold to dealers and retail customers for maintenance and repair parts. Revenue for remanufactured components is recognized using the same criteria as other parts sales. When a remanufactured part is sold, we collect a deposit that is repaid if the customer returns a core that meets certain specifications within a defined time period. The deposit received from the customer is recognized as a liability in “Accounts payable and accrued expenses” and the used component that is expected to be returned is recognized in “Other assets.” When a customer returns a core, the deposit is repaid, the liability reversed, and the returned core is recorded in inventory to be remanufactured and sold to

another customer. If a core is not returned within the required time, the deposit is recognized as revenue in “Net sales,” and the cost of the core is recorded as an expense in “Cost of sales.”

Bundled Technology

Certain equipment is sold with precision guidance, telematics, and other information gathering and analyzing capabilities. These technology solutions require hardware, software, and may include an obligation to provide services for a period of time. These solutions are mostly bundled with the sale of the equipment but can also be purchased or renewed separately. The revenue related to the hardware and embedded software is recognized at the time of the equipment sale and recorded in “Net sales.” The revenue for the future services and usage-based software is deferred and recognized over the service period. The deferred revenue is recorded as a contract liability in “Accounts payable and accrued expenses.”

Financing Revenue and Origination Costs

Financing revenue and deferred costs on the origination of financing receivables are recorded over the lives of the related receivables using the interest method. Deferred costs are recognized as a reduction to “Finance and interest income.” Income and deferred costs on the origination of operating leases are recognized on a straight-line basis over the scheduled lease terms in “Finance and interest income.”

Sales Incentives

We offer sales incentive programs to promote the sale of our products from the dealer to the retail customer. At the time of the sale to a dealer, we record an estimated cost for the sales incentive programs as a reduction to the sales price. The estimated cost is based on historical data, announced and expected incentive programs, field inventory levels, and forecasted sales volumes. The final cost of these programs is determined at the end of the measurement period for volume-based incentives or when the dealer sells the equipment to a retail customer. One type of sales incentive program offered to dealers is pool funds in which we award dealers funds based on new equipment sales. Dealers can use these funds to incentivize sales from the dealer to the end customer. Pool funds, as well as some other incentive programs, are recorded in “Trade accounts and notes receivable – net” as we have the contractual right and the intent to offset against the existing dealer receivables. Actual cost differences from the original cost estimate are recognized in “Net sales.”

As permitted, we 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 to dealers and retail customers for equipment, service parts, repair services, and certain telematics services.

Product Warranties, Policy For equipment and service parts sales, we provide a standard warranty. At the time a sale is recognized, the estimated future warranty costs are recorded. The warranty liability is estimated based on historical warranty claims rate experience and the estimated amount of equipment still under warranty. The historical claims rate is primarily determined by a review of five-year claims costs while also taking into consideration current quality developments. The amount of equipment still under warranty is estimated based on dealer inventories and retail sales.
Extended Product Warranty, Policy

We also offer extended warranty arrangements for purchase at the customer’s option. The premiums for extended warranties are recognized in “Other income” primarily in proportion to the costs expected to be incurred over the contract period. The unamortized extended warranty premiums (deferred revenue) are recorded in “Accounts payable and accrued expenses” (see Note 18).

Sales and Transaction Taxes, Policy

We collect and remit taxes for revenue producing transactions as necessary based on various tax laws. These taxes include sales, use, value-added, and some excise taxes. We elected to exclude these taxes from the determination of the sales price. These taxes are not included in revenues.

Contract Costs, Policy

Incremental costs of obtaining an equipment revenue contract are recognized as an expense when incurred since the amortization period would be one year or less.

Advertising Costs, Policy

Advertising costs are charged to “Selling, administrative and general expenses” as incurred. Advertising costs were $230 in 2024, $244 in 2023, and $227 in 2022.

Depreciation and Amortization, Policy

Property and equipment, capitalized software, and other intangible assets are stated at cost less accumulated depreciation or amortization. These assets are depreciated over their estimated useful lives using the straight-line method. Equipment on operating leases is depreciated over the terms of the leases using the straight-line method. Property and equipment expenditures for new and revised products, increased capacity, and the replacement or major renewal of significant items are capitalized. Expenditures for maintenance, repairs, and minor renewals are charged to expense as incurred.

Cash and Cash Equivalents, Policy

We consider investments with purchased maturities of three months or less to be cash equivalents.

Receivables, Policy

All financing and trade receivables are reported on the balance sheet at outstanding principal and accrued interest, adjusted for:

write-offs,
allowance for credit losses, and
unamortized deferred fees or costs on originated financing receivables.
Long-Lived Assets, Goodwill, and Other Intangible Asset Impairment, Policy

We evaluate the carrying value of long-lived assets (including equipment on operating leases, property and equipment, goodwill, and other intangible assets) when events or circumstances warrant such a review. Goodwill and unamortized intangible assets are tested for impairment annually at the end of the third quarter of each fiscal year, and more often if events or circumstances may have caused the fair value to fall below the carrying value. If the carrying value of the long-lived asset is considered impaired, the long-lived asset is written down to its fair value (see Notes 4 and 25).

Goodwill is allocated and reviewed for impairment by reporting unit. Goodwill is allocated to the reporting unit in which the business that created the goodwill resides. To test for goodwill impairment, the carrying value of each reporting unit is compared with its fair value. If the carrying value of the goodwill is considered impaired, the impairment is measured as the reporting unit’s carrying value minus the fair value.

Derivative Financial Instruments, Policy

It is our policy to use derivative transactions only to manage exposures from the normal course of business. We do not execute derivative transactions for the purpose of creating speculative positions or trading. Our financial services operations have interest rate and foreign currency exposure between (a) the receivable or lease portfolio and (b) how those portfolios are funded. We also have foreign currency exposures at some of our foreign and domestic operations related to buying, selling, and financing in currencies other than the functional currencies. In addition, we have interest rate and foreign currency exposure at certain equipment operations units for sales incentive programs.

All derivatives are recorded at fair value on the consolidated balance sheets. Cash collateral received or paid is not offset against the derivative fair values on the balance sheets. The cash flows from the derivative contracts are recorded in operating activities in the statements of consolidated cash flows. Each derivative is designated as a cash flow hedge, fair value hedge, or remains undesignated.

Changes in the fair value of derivatives are recorded as follows:

Cash flow hedges: Recorded in other comprehensive income (OCI) and reclassified to the income statement when the effects of the item being hedged are recognized in the income statement. These amounts offset the effects of interest rate changes on the related borrowings in interest expense.
Fair value hedges: Recorded in interest expense, and the gains or losses are offset by the fair value gains or losses on the hedged items (fixed-rate borrowings), which are also recorded in interest expense.
Derivatives not designated as hedging instruments: Changes in the fair value of undesignated hedges are recognized as they occur in the income statement.

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 for 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 (see Note 26).

Foreign Currency Translation, Policy

The functional currencies for most of our foreign operations are their respective local currencies. The assets and liabilities of these operations are translated into U.S. dollars using the exchange rates at the end of the period. The revenues and expenses are translated at weighted-average rates for the period. The gains or losses from these translations are recorded in OCI.

Foreign currency gains or losses and foreign exchange components of derivative contracts are included in net income, with trade flow activity recorded in “Cost of sales,” sales incentive activity recorded in “Net sales,” and all other activity recorded in “Other operating expenses.” The pretax net loss for foreign exchange in 2024, 2023, and 2022 was $63, $159, and $175, respectively.

New Accounting Pronouncements, Policy

We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. We adopted the following standards in 2024, none of which had a material effect on our consolidated financial statements:

No. 2022-04 — Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations

No. 2022-02 — Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures

No. 2022-01 — Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method

No. 2021-08 — Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

Accounting Pronouncements to be Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which expands disclosures about specific expense categories presented on the face of the income statement. The effective date of the ASU is fiscal year 2028. We are assessing the effect of this update on our related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and cash income taxes paid both in the U.S. and foreign jurisdictions. The effective date of the ASU is fiscal year 2026. We are assessing the effect of this update on our related disclosures.

We will also adopt the following standards in future periods, none of which are expected to have a material effect on our consolidated financial statements.

No. 2024-04 — Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments

No. 2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

No. 2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative

No. 2023-05 — Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

No. 2022-03 — Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions

Receivables, Cash Flow Policy

All cash flows from receivables related to sales are included in operating activities. This includes all changes in trade accounts and notes receivables, as well as some financing receivables (see Note 11). Financing receivables that are related to loans on equipment sold by independent dealers are included in investing activities.

Pension and Other Postretirement Plans, Policy We have several funded and unfunded defined benefit pension plans and other postretirement benefit (OPEB) plans. These plans cover U.S. employees and certain foreign employees. The measurement date of our plans is October 31.

The discount rate assumptions used to determine the pension and OPEB obligations for all periods presented were based on hypothetical AA yield curves represented by a series of annualized individual discount rates. These discount rates represent the rates at which our benefit obligations could effectively be settled at the October 31 measurement dates.

The mortality assumptions for the 2024 U.S. benefit plan obligations used the tables based on the plan’s mortality experience and the most recent scales issued by the Society of Actuaries. The mortality assumptions for the 2023 U.S. benefit plan obligations used the most recent tables and scales issued by the Society of Actuaries at that time. The 2024 and 2023 mortality assumptions included an adjustment to the scale related to COVID for some plans.

Actuarial gains and losses are recorded in accumulated other comprehensive income (loss). To the extent unamortized gains and losses exceed 10 percent of the higher of the market-related value of assets or the benefit obligation, the excess is amortized as a component of net periodic (benefit) cost over the remaining service period of the active participants. For plans in which all or almost all of the plan’s participants are inactive, the amortization period is the remaining life expectancy of the inactive participants.

A market related value of plan assets is used to calculate the expected return on assets. The market related value recognizes changes in the fair value of pension plan assets systematically over a five-year period. The market related value of the health care plan assets equals fair value.

The expected long-term rate of return on plan assets reflects management’s expectations of long-term average rates of return on funds invested to provide for benefits included in the projected benefit obligations. The expected return is based on the outlook for inflation and for returns in multiple asset classes, while also considering historical returns, asset allocation, and investment strategy. Our approach has emphasized the long-term nature of the return estimate such that the return assumption is not changed significantly unless there are fundamental changes in capital markets that affect our expectations for returns over an extended period of time (i.e., 10 to 20 years).
Unremitted Earnings in Foreign Investment, Policy

At October 27, 2024, undistributed profits of subsidiaries outside the U.S. of approximately $6.0 billion are considered indefinitely reinvested. Determination of the amount of a foreign withholding tax liability on these unremitted earnings is not practicable.

Marketable Securities, Policy

Most marketable securities are classified as available-for-sale. Realized gains or losses are based on specific identification.

Allowance for Credit Losses and Credit Quality, Policy

The allowance is a reduction to the receivable balances, and the provision is recorded in “Selling, administrative and general expenses.” The allowance for credit losses is an estimate of the credit losses expected over the life of our receivable portfolio. Non-performing receivables are included in the estimate of expected credit losses. The allowance is measured on a collective basis for receivables with similar risk characteristics. Receivables that do not share risk characteristics are evaluated on an individual basis. Risk characteristics include:

finance product category,

market,
geography,
credit risk, and
remaining balance.

We utilize the following loss forecast models to estimate expected credit losses:

Linear regression models are used for large and complex retail customer receivable pools, which represent more than 90 percent of retail customer receivables. These statistical models utilize independent variables, or predictive features, to estimate lifetime default rates, which are subsequently adjusted for expected recoveries to arrive at lifetime credit loss estimates. Independent variables included in the models vary by product, but can include credit quality at time of application, remaining account balance, delinquency status, and various economic factors, such as commodity prices, employment levels, and housing data. The economic factors include forward-looking conditions over our reasonable and supportable forecast period. In the fourth quarter of 2024, we transitioned from the use of transition matrix models to linear regression models to estimate expected credit losses. This change in methodology did not have a material impact on our consolidated financial statements.
Weighted average remaining maturity (WARM) models are used for smaller and less complex retail customer receivable pools.
Historical loss rate models are used on wholesale receivables, with consideration of current economic conditions and dealer financial risk.

Management reviews each model’s output quarterly, and qualitative adjustments are incorporated as necessary (see Note 11).

Financing Receivables Credit Quality Analysis

We monitor the credit quality of financing receivables based on delinquency status, defined as follows:

Past due balances represent any payments 30 days or more past the due date.
Non-performing financing receivables represent receivables for which we have stopped accruing finance income. This generally occurs when receivables are 90 days delinquent.
Write-offs generally occur when receivables are 120 days delinquent. In these situations, the estimated uncollectible amount 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 resumed when the receivable becomes contractually current and collections are reasonably assured.

We monitor the economy as part of the allowance setting process, including potential impacts of the agricultural market business cycle and rising interest rates. Adjustments to the allowance are incorporated, as necessary.

Financing Receivables – Modifications

We occasionally grant contractual modifications to customers experiencing financial difficulties. Before offering a modification, we evaluate the ability of the customer to meet the modified payment terms. Modifications offered include payment deferrals, term extensions, or a combination thereof. Finance charges continue to accrue during the deferral or extension period with the exception of modifications related to bankruptcy proceedings. Our allowance for credit losses incorporates historical loss information, including the effects of loan modifications with customers. Therefore, additional adjustments to the allowance are generally not recorded upon modification of a loan.

Securitization of Financing Receivables, Policy

Our funding strategy includes receivable securitizations, which allows us to receive cash for financing receivables immediately. While these securitization programs are administered in various forms, they are accomplished in the following basic steps:

1.We transfer financing receivables into a bankruptcy-remote special purpose entity (SPE).
2.The SPE issues debt to investors. The debt is secured by the financing receivables.
3.Investors are paid back based on cash receipts from the financing receivables.

As part of step 1, these receivables are legally isolated from the claims of our general creditors. This ensures cash receipts from the financing receivables are accessible to pay back securitization program investors. The structure of these transactions does not meet the accounting criteria for a sale of receivables. As a result, they are accounted for as a secured borrowing. The receivables and borrowings remain on our balance sheet and are separately reported as “Financing receivables securitized – net” and “Short-term securitization borrowings,” respectively.

Inventory Valuation, Policy A majority of inventories owned by us are valued at cost on the “last-in, first-out” (LIFO) basis.
Share-Based Compensation, Policy

We issue stock options and restricted stock units (RSU) to key employees. RSUs are also issued to nonemployee directors for their services as directors. RSUs consist of service-based, performance/service-based, and market/service-based awards.

The fair value of stock options and restricted stock units is determined using our closing price on the grant date. The fair value of the market/service-based RSUs is determined using a Monte Carlo model. These awards are expensed over the shorter of the award vesting period or the employee’s retirement eligibility period. The performance/service-based units’ expense is adjusted quarterly for the probable number of shares to be awarded. We

recognize the effect of award forfeitures as an adjustment to compensation expense in the period the forfeiture occurs.

The fair value of each stock option award was estimated on the date of grant using a binomial lattice option valuation model.

The risk-free rates are based on U.S. Treasury security yields at the time of grant. Expected volatilities are based on implied volatilities from traded call options on our stock. We use historical data to estimate option exercise behavior representing the weighted-average period that options granted are expected to be outstanding.

Lessee Lease, Policy

The amounts of the lease liability and right of use asset are determined at lease commencement and are based on the present value of the lease payments over the lease term. The lease payments are discounted using our incremental borrowing rate since the rate implicit in the lease is not readily determinable. We determine the incremental borrowing rate for each lease based on the lease term and the economic environment of the country where the asset will be used, adjusted as if the borrowings were collateralized. Leases with contractual periods greater than one year and that do not meet the finance lease criteria are classified as operating leases.

Lease and Non-lease Components, Policy We have elected to combine lease and nonlease components, such as maintenance and utilities costs included in a lease contract, for all asset classes.
Short-term lease, Policy Leases with an initial term of one year or less are expensed on a straight-line basis over the lease term and recorded in short-term lease expense.
Lessor Leases, Policy

We estimate the residual values for operating leases at lease inception based on several factors, including lease term, expected hours of usage, historical wholesale sale prices, return experience, intended use of the equipment, market dynamics and trends, and dealer residual guarantees. We review residual value estimates during the lease term and test the carrying value of our operating lease assets for impairment when events or circumstances necessitate. The depreciation is adjusted on a straight-line basis over the remaining lease term if residual value estimates change. Lease agreements include usage limits and specifications on machine condition, which allow us to assess lessees for excess use or damages to the underlying equipment.

We have elected to combine lease and nonlease components. The nonlease components relate to preventative maintenance and extended warranty agreements financed by the retail customer. We have also elected to report consideration related to sales and value added taxes net of the related tax expense. Property taxes on leased assets are recorded on a gross basis in “Finance and interest income” and “Other operating expenses.” Variable lease revenues relate to property taxes on leased assets in certain markets and late fees.

At the time of accepting a lease that qualifies as a sales-type or direct financing lease, we record the gross amount of lease payments receivable, estimated residual value of the leased equipment, and unearned finance income. The unearned finance income is recognized as revenue over the lease term using the interest method.
Revenue Recognition, Lessor Leases Policy

Lease payments from operating leases are recorded as income on a straight-line method over the lease terms. Operating lease assets are recorded at cost and depreciated to their estimated residual value on a straight-line method over the terms of the leases.

Fair Value of Financial Instruments, Policy

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To determine fair value, we use various methods including market and income approaches. We utilize valuation models and techniques that maximize the use of observable inputs. The models are industry-standard models that consider various assumptions including time values and yield curves as well as other economic measures. These valuation techniques are consistently applied.

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 us for similar financing receivables.

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.

Segment Data, Policy

Our operations are presently organized and reported in four business segments. This presentation is consistent with how the chief operating decision maker (the CEO) assesses the performance of the segments and makes decisions about resource allocations.

The PPA segment defines, develops, and delivers global equipment and technology solutions to unlock customer value for production-scale growers of large grains, small grains, cotton, and sugarcane. The segment’s primary products include large and certain mid-size tractors, combines, cotton pickers, sugarcane harvesters and loaders, and soil preparation, seeding, application, crop care equipment, and related attachments and service parts.

The SAT segment defines, develops, and delivers global equipment and technology solutions to unlock customer value for dairy and livestock producers, high-value and small acreage crop producers, and turf and utility customers. The segment’s primary products include certain mid-size tractors, utility and compact utility tractors, as well as hay and forage equipment, riding and commercial lawn equipment, golf course equipment, utility vehicles, and related attachments and service parts.

The CF segment defines, develops, and delivers a broad range of machines and technology solutions organized along the earthmoving, forestry, and roadbuilding production systems. The segment’s primary products include backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, skid-steer loaders, milling machines, log harvesters, and related attachments and service parts.

The products and services produced by the segments above are marketed through independent retail dealer networks and major retail outlets. For roadbuilding products in certain markets outside the U.S. and Canada, the products are sold through company-owned sales and service subsidiaries.

The financial services segment finances sales and leases by John Deere dealers of new and used production and precision agriculture equipment, small agriculture and turf equipment, and construction and forestry equipment. 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.

Because of integrated manufacturing operations and common administrative and marketing support, a substantial number of allocations must be made to determine operating segment data.

Identifiable assets assigned to the operating segments are those the units actively manage, consisting of trade receivables, inventories, property and equipment, intangible assets, and certain other assets. Corporate assets are managed collectively, including cash and cash equivalents, retirement benefit net assets, goodwill, and deferred income tax assets.

v3.24.3
ACQUISITIONS AND DISPOSITIONS (Tables)
12 Months Ended
Oct. 27, 2024
Kreisel  
Fair Values Assigned to Assets and Liabilities as of the Acquisition Date The fair values assigned to the assets and liabilities of the acquired entity, which are based on information as of the acquisition date and available at October 30, 2022, follows:

February 2022

Trade accounts and notes receivable

$

2

Other receivables

11

Inventories

11

Property and equipment

11

Goodwill

218

Other intangible assets

178

Other assets

6

Total assets

$

437

Accounts payable and accrued expenses

$

26

Deferred income taxes

39

Redeemable noncontrolling interest

$

96

Excavator Factories  
Total Invested Capital The total invested capital was as follows:

March 2022

Cash consideration for factories

$

205

Cash consideration for license agreement

70

Deferred consideration

271

Total purchase price consideration

546

Less: Cash obtained

(187)

Less: Settlement of intercompany balances

(113)

Net purchase price consideration

246

Fair value of previously held equity investment

444

Total invested capital

$

690

Fair Values Assigned to Assets and Liabilities as of the Acquisition Date

The fair values assigned to the assets and liabilities of the acquired factories, which are based on information as of the acquisition date and available at October 30, 2022, follow:

March 2022

Other receivables

$

29

Inventories

286

Property and equipment

180

Goodwill

529

Other intangible assets

70

Deferred income taxes

56

Other assets

3

Total assets

$

1,153

Accounts payable and accrued expenses

$

300

Long-term borrowings

163

Total liabilities

$

463

Other Acquisitions  
Fair Values Assigned to Assets and Liabilities as of the Acquisition Date The asset and liability fair values at the respective acquisition dates follow:

October 2022

Trade accounts and notes receivable

$

8

Inventories

8

Property and equipment

4

Goodwill

53

Other intangible assets

21

Other assets

60

Total assets

$

154

Accounts payable and accrued expenses

$

6

Deferred income taxes

5

Total liabilities

$

11

Redeemable noncontrolling interest

$

9

v3.24.3
SPECIAL ITEMS (Tables)
12 Months Ended
Oct. 27, 2024
Schedule of Employee-Separation Programs' Pretax Expenses

The programs’ pretax expenses in 2024 were as follows:

PPA

SAT

CF

FS

Total

Employee-Separation Programs:

Cost of sales

$

21

$

11

$

8

$

40

Research and development expenses

22

9

2

33

Selling, administrative and general expenses

34

23

12

$

10

79

Total operating profit decrease

$

77

$

43

$

22

$

10

$

152

Non-operating profit expenses*

5

Total

$

157

*    Relates primarily to corporate expenses.

Schedule of Consolidated Assets and Liabilities Classified as Held for Sale and Other Intercompany Payables

The major classes of the total consolidated assets and liabilities of BJD classified as held for sale and liabilities of BJD to other intercompany parties at October 27, 2024 follows. See Note 25 for fair value measurement information.

October 2024

Cash and cash equivalents

$

115

Trade accounts and notes receivable – net

176

Financing receivables – net

2,693

Deferred income taxes

36

Other miscellaneous assets*

21

Valuation allowance

(97)

Assets held for sale

$

2,944

Short-term borrowings

$

534

Accounts payable and accrued expenses

118

Long-term borrowings

1,174

Retirement benefits and other liabilities

1

Liabilities held for sale

$

1,827

Total intercompany payables

$

654

*    Includes $1 restricted cash balance.

Schedule of Operating Profit Impact of the Special Items

The following table summarizes the operating profit impact of the special items recorded in 2024 and 2023.

PPA

SAT

CF

FS

Total

2024 Expense (benefit)

Legal settlements

$

(17)

$

(40)

$

(57)

Impairment

$

28

28

Employee-separation programs

77

43

22

$

10

152

BJD measurement

59

59

Total expense (benefit)

60

71

(18)

69

182

2023 Expense

Russian roadbuilding sale

18

18

Financing incentives correction

173

173

Total expense

18

173

191

Year over year change

$

60

$

71

$

(36)

$

(104)

$

(9)

Reserves, Impairments, and Voluntary-Separation Costs  
Schedule of Operating Profit Impact of the Special Items A summary of the reserves, impairments, and voluntary-separation costs recorded in 2022 follows. See Note 25 for fair value measurement information.

PPA

SAT

CF

FS

Total

Inventory reserve – Cost of sales

$

14

$

2

$

3

$

19

Fixed asset impairment – Cost of sales

30

11

41

Intangible asset impairment – Cost of sales

28

28

Allowance for credit losses – Financing receivables – Selling, administrative and general expenses

$

153

153

Voluntary-separation program:
– Cost of sales

3

3

– Selling, administrative and general expenses

4

6

1

11

Intercompany agreement

82

9

62

(153)

Total Russia/Ukraine events pretax expense

$

133

$

11

$

110

$

1

255

Net tax impact

(40)

Total Russia/Ukraine events after-tax expense

$

215

v3.24.3
REVENUE RECOGNITION (Tables)
12 Months Ended
Oct. 27, 2024
REVENUE RECOGNITION  
Schedule of Revenue Recognition

Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow:

PPA

SAT

CF

FS

Total

2024

Primary geographic markets:

United States

$

11,741

$

6,249

$

8,086

$

4,166

$

30,242

Canada

1,818

605

760

717

3,900

Western Europe

2,068

2,203

1,729

189

6,189

Central Europe and CIS

787

284

381

36

1,488

Latin America

3,482

433

1,170

453

5,538

Asia, Africa, Oceania, and Middle East

1,530

1,480

1,128

221

4,359

Total

$

21,426

$

11,254

$

13,254

$

5,782

$

51,716

Major product lines:

Production agriculture

$

20,574

$

20,574

Small agriculture

$

7,693

7,693

Turf

3,023

3,023

Construction

$

5,523

5,523

Compact construction

2,459

2,459

Roadbuilding

3,641

3,641

Forestry

1,108

1,108

Financial products

240

131

67

$

5,782

6,220

Other

612

407

456

1,475

Total

$

21,426

$

11,254

$

13,254

$

5,782

$

51,716

Revenue recognized:

At a point in time

$

21,059

$

11,084

$

13,137

$

133

$

45,413

Over time

367

170

117

5,649

6,303

Total

$

21,426

$

11,254

$

13,254

$

5,782

$

51,716

PPA

SAT

CF

FS

Total

2023

Primary geographic markets:

United States

$

13,917

$

7,796

$

9,109

$

3,283

$

34,105

Canada

1,738

687

1,221

641

4,287

Western Europe

2,640

2,824

1,725

132

7,321

Central Europe and CIS

1,218

530

353

36

2,137

Latin America

5,608

707

1,429

453

8,197

Asia, Africa, Oceania, and Middle East

2,166

1,679

1,183

176

5,204

Total

$

27,287

$

14,223

$

15,020

$

4,721

$

61,251

Major product lines:

Production agriculture

$

26,450

$

26,450

Small agriculture

$

10,122

10,122

Turf

3,505

3,505

Construction

$

6,842

6,842

Compact construction

2,451

2,451

Roadbuilding

3,794

3,794

Forestry

1,429

1,429

Financial products

219

96

58

$

4,721

5,094

Other

618

500

446

1,564

Total

$

27,287

$

14,223

$

15,020

$

4,721

$

61,251

Revenue recognized:

At a point in time

$

26,969

$

14,092

$

14,915

$

111

$

56,087

Over time

318

131

105

4,610

5,164

Total

$

27,287

$

14,223

$

15,020

$

4,721

$

61,251

PPA

SAT

CF

FS

Total

2022

Primary geographic markets:

United States

$

10,975

$

7,741

$

7,103

$

2,419

$

28,238

Canada

1,387

676

1,238

601

3,902

Western Europe

2,188

2,478

1,576

102

6,344

Central Europe and CIS

1,207

488

545

49

2,289

Latin America

4,991

578

1,467

303

7,339

Asia, Africa, Oceania, and Middle East

1,570

1,608

1,136

151

4,465

Total

$

22,318

$

13,569

$

13,065

$

3,625

$

52,577

Major product lines:

Production agriculture

$

21,685

$

21,685

Small agriculture

$

10,027

10,027

Turf

3,027

3,027

Construction

$

5,864

5,864

Compact construction

1,667

1,667

Roadbuilding

3,441

3,441

Forestry

1,308

1,308

Financial products

60

52

32

$

3,625

3,769

Other

573

463

753

1,789

Total

$

22,318

$

13,569

$

13,065

$

3,625

$

52,577

Revenue recognized:

At a point in time

$

22,178

$

13,493

$

12,980

$

105

$

48,756

Over time

140

76

85

3,520

3,821

Total

$

22,318

$

13,569

$

13,065

$

3,625

$

52,577

Schedule of Unsatisfied Performance Obligations, Estimated Revenue to be Recognized by Fiscal Year

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year and the estimated revenue to be recognized by fiscal year at October 27, 2024 follows:

Year

Net Sales and Revenues

2025

$

512

2026

429

2027

328

2028

208

2029

151

Later years

119

Total

$

1,747

v3.24.3
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
12 Months Ended
Oct. 27, 2024
SUPPLEMENTAL CASH FLOW INFORMATION  
Cash Payments for Interest and Income Taxes

Supplemental cash flow information follows:

2024

2023

2022

Cash paid for interest

$

3,298

$

2,227

$

1,101

Cash paid for income taxes

2,518

3,578

1,940

Inventory transferred to equipment on operating leases

223

195

167

Accounts payable related to purchases of property and equipment

208

211

165

v3.24.3
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)
12 Months Ended
Oct. 27, 2024
PENSION AND OTHER POSTRETIREMENT BENEFITS  
Schedule of Funded Status of the Significant Plans The funded status as of October 31, 2024 of the significant plans follows:

Funded

Enrollment

    

Status

    

Status

 

Pensions:

U.S. salaried qualified

    

$

1,314

Closed

U.S. hourly qualified

 

1,217

Open

Other

 

(528)

Varies

Total

$

2,003

OPEB:

U.S. salaried

    

$

(1,198)

Closed

U.S. hourly

 

101

Closed

Other

 

(94)

Varies

Total

$

(1,191)

Schedule of Components of Net Periodic Pension and OPEB (Benefit) Cost

The components of net periodic pension (benefit) cost and the related assumptions consisted of the following:

 

2024

    

2023

    

2022

 

Pensions:

Service cost

 

$

230

$

246

$

349

Interest cost

 

545

 

533

 

330

Expected return on plan assets

 

(967)

 

(878)

 

(726)

Amortization of actuarial (gain) loss

 

3

 

(13)

 

132

Amortization of prior service cost

 

40

 

38

 

34

Settlements/curtailments

 

38

 

37

 

45

Net (benefit) cost

$

(111)

$

(37)

$

164

Weighted-average assumptions:

Discount rates – service cost

5.8%

5.2%

3.0%

Discount rates – interest cost

5.7%

5.1%

2.6%

Rate of compensation increase

3.8%

3.8%

3.7%

Expected long-term rates of return

7.0%

6.3%

5.1%

Interest crediting rate – U.S. cash balance plans

4.8%

4.3%

2.1%

The components of net periodic OPEB cost and the assumptions related to the cost consisted of the following:

 

2024

    

2023

    

2022

 

OPEB:

Service cost

$

17

$

27

$

45

Interest cost

 

174

 

176

 

99

Expected return on plan assets

 

(108)

 

(117)

 

(110)

Amortization of actuarial gain

 

(54)

 

(59)

 

(18)

Amortization of prior service credit

 

(4)

 

(3)

 

(4)

Net cost

$

25

$

24

$

12

Weighted-average assumptions:

Discount rates – service cost

6.7%

6.1%

3.6%

Discount rates – interest cost

5.9%

5.4%

2.3%

Expected long-term rates of return

5.6%

5.7%

4.4%

Schedule of Benefit Plan Obligations, Funded Status, and the Assumptions Related to the Obligations

The benefit plan obligations, funded status, and the assumptions related to the obligations at October 27, 2024 and October 29, 2023 follow:

Pensions

OPEB

2024

2023

2024

2023

Change in benefit obligations:

                

 

                 

 

              

 

               

Beginning of year balance

$

(9,928)

$

(10,529)

$

(3,029)

$

(3,341)

Service cost

 

(230)

 

(246)

 

(17)

 

(27)

Interest cost

 

(545)

 

(533)

 

(174)

 

(176)

Actuarial gain (loss)

 

(1,097)

 

504

 

(385)

 

285

Benefits paid

 

746

 

838

 

263

 

260

Health care subsidies

 

(22)

 

(27)

Settlement

 

 

112

Foreign exchange and other

 

(23)

 

(74)

 

2

 

(3)

End of year balance

 

(11,077)

 

(9,928)

 

(3,362)

 

(3,029)

Change in plan assets (fair value):

Beginning of year balance

 

12,004

 

13,219

 

2,028

 

2,136

Plan assets actual gain (loss)

 

1,703

 

(387)

 

259

 

(8)

Employer contribution

 

96

 

70

 

145

 

158

Benefits paid

 

(746)

 

(838)

 

(263)

 

(260)

Settlement

 

 

(112)

Foreign exchange and other

 

23

 

52

 

2

 

2

End of year balance

 

13,080

 

12,004

 

2,171

 

2,028

Funded status

$

2,003

$

2,076

$

(1,191)

$

(1,001)

Weighted-average assumptions:

Discount rates

5.1%

5.9%

5.2%

6.0%

Rate of compensation increase

4.3%

3.8%

Interest crediting rate – U.S. cash balance plans

4.1%

4.9%

Schedule of Weighted-Average Health Care Cost Trend Rates

The weighted-average annual rates of increase in the per capita cost of covered health care benefits (the health care cost trend rates) for medical and prescription drug claims for pre- and post-65 age groups used to determine the October 27, 2024 and October 29, 2023 accumulated postretirement benefit obligations were as follows:

2024

2023

Initial year

16.9% (2024 to 2025)

18.7% (2023 to 2024)

Second year

11.5% (2025 to 2026)

8.8% (2024 to 2025)

Ultimate

4.7% (2033 to 2034)

4.7% (2032 to 2033)

An increase in Medicare Advantage premiums and prescription drug trends impacted the weighted-average annual rates of increase for the initial year in 2024 and 2023.

Schedule of Information Related to Pension Plans Benefit Obligations

Information related to pension plans benefit obligations at October 27, 2024 and October 29, 2023 follows:

2024

2023

Total accumulated benefit obligations for all plans

$

10,441

$

9,453

Plans with accumulated benefit obligation exceeding fair value of plan assets:

Accumulated benefit obligations

1,405

1,147

Fair value of plan assets

920

704

Plans with projected benefit obligation exceeding fair value of plan assets:

Projected benefit obligations

1,541

1,261

Fair value of plan assets

951

729

Schedule of Amounts Recognized in the Balance Sheet

The pension and OPEB amounts recognized in the balance sheet at October 27, 2024 and October 29, 2023 consisted of the following:

Pensions

OPEB

2024

2023

2024

2023

Noncurrent asset

$

2,593

  

$

2,608

$

328

  

$

399

Less: Current liability

 

66

 

59

39

40

Less: Noncurrent liability

 

524

 

473

 

1,480

 

1,360

Total

$

2,003

$

2,076

$

(1,191)

$

(1,001)

The retirement benefits and other liabilities recognized in the balance sheet at October 27, 2024 and October 29, 2023 consisted of the following:

2024

2023

Deferred compensation – current

$

28

$

25

Deferred compensation and other – noncurrent

217

183

Pensions and OPEB – current

105

99

Pensions and OPEB – noncurrent

2,004

1,833

Total

$

2,354

$

2,140

Schedule of Amounts Recognized in Accumulated Other Comprehensive Income - Pretax

The amounts recognized in accumulated other comprehensive income pretax at October 27, 2024 and October 29, 2023 consisted of the following:

Pensions

OPEB

2024

2023

2024

2023

Net actuarial (gain) loss

$

2,011

$

1,660

$

(632)

$

(921)

Prior service (credit) cost

 

329

 

406

 

2

 

(1)

Total

$

2,340

$

2,066

$

(630)

$

(922)

Schedule of Future Benefits Expected to be Paid from the Benefit Plans

The expected future benefit payments at October 27, 2024 were as follows:

 

   Pensions   

  

      OPEB*      

 

2025

$

760

$

257

2026

 

736

 

267

2027

 

728

 

271

2028

 

716

 

273

2029

 

716

 

274

2030 to 2034

 

3,555

 

1,331

*    Net of prescription drug group benefit subsidy under Medicare Part D.

Schedule of Fair Values of Pension Plan and Health Care Assets and Target Asset Allocations

The fair values of the pension plan assets at October 27, 2024 follow:

 

Total

 

Level 1

 

Level 2

 

Cash and short-term investments

$

411

$

399

$

12

Equity:

U.S. equity securities

 

451

 

440

11

International equity securities and funds

 

238

 

232

6

Fixed Income:

Government and agency securities

 

1,250

 

932

 

318

Corporate debt securities

 

4,956

 

 

4,956

Mortgage-backed securities

 

177

 

 

177

Other investments

 

57

 

36

 

21

Derivative contracts – assets

 

130

 

7

 

123

Derivative interest rate contracts – liabilities

 

(161)

 

(119)

 

(42)

Receivables, prepaids, and payables

 

(171)

 

(171)

Securities lending collateral

 

662

 

662

Securities lending liability

 

(662)

 

(662)

Securities sold short

 

(94)

 

(92)

(2)

Total of Level 1 and Level 2 assets

7,244

$

1,664

$

5,580

Investments at net asset value:

Short-term investments

492

U.S. equity funds

174

International equity funds

194

Fixed income funds

1,649

Real estate funds

385

Hedge funds

457

Private equity

1,219

Venture capital

1,219

Other investments

47

Total net assets

$

13,080

The fair values of the OPEB health care assets at October 27, 2024 follow:

 

Total

 

Level 1

 

Level 2

 

Cash and short-term investments

$

77

$

77

Fixed Income:

Government and agency securities

 

606

 

561

$

45

Corporate debt securities

 

551

 

551

Mortgage-backed securities

 

92

 

92

Other

 

11

 

7

4

Securities lending collateral

 

167

 

167

Securities lending liability

 

(167)

 

(167)

Total of Level 1 and Level 2 assets

1,337

$

645

$

692

Investments at net asset value:

U.S. equity funds

163

International equity funds

84

Fixed income funds

348

Real estate funds

77

Hedge funds

71

Private equity

41

Venture capital

41

Other investments

9

Total net assets

$

2,171

The fair values of the pension plan assets at October 29, 2023 follow:

 

Total

 

Level 1

 

Level 2

Level 3

 

Cash and short-term investments

$

513

$

470

$

43

Equity:

U.S. equity securities

 

342

 

330

12

International equity securities and funds

 

199

 

197

2

Fixed Income:

Government and agency securities

 

1,017

 

759

 

258

 

Corporate debt securities

 

4,389

 

4,389

 

Mortgage-backed securities

 

285

 

 

285

 

Private equity

 

18

 

 

$

18

Other investments

 

50

 

30

 

20

 

Derivative contracts – assets

 

53

 

17

 

36

 

Derivative interest rate contracts – liabilities

 

(309)

 

(215)

 

(94)

 

Receivables, prepaids, and payables

 

(137)

 

(137)

Securities lending collateral

 

615

 

615

 

Securities lending liability

 

(615)

 

(615)

 

Securities sold short

 

(73)

 

(69)

(4)

Total of Level 1, Level 2, and Level 3 assets

6,347

$

1,382

$

4,947

$

18

Investments at net asset value:

Short-term investments

362

U.S. equity funds

92

International equity funds

151

Fixed income funds

1,418

Real estate funds

462

Hedge funds

491

Private equity

1,306

Venture capital

1,341

Other investments

34

Total net assets

$

12,004

The fair values of the OPEB health care assets at October 29, 2023 follow:

 

Total

 

Level 1

 

Level 2

 

Cash and short-term investments

$

76

$

76

Fixed Income:

Government and agency securities

 

637

 

596

$

41

Corporate debt securities

 

515

 

515

Mortgage-backed securities

 

89

 

89

Other

8

5

3

Securities lending collateral

 

122

 

122

Securities lending liability

 

(122)

 

(122)

Total of Level 1 and Level 2 assets

1,325

$

677

$

648

Investments at net asset value:

Fixed income funds

392

Real estate funds

104

Hedge funds

104

Private equity

43

Venture capital

43

Other investments

17

Total net assets

$

2,028

The target asset allocations as of October 27, 2024 are as follows:

Pension

Health Care

 

    

Assets

    

Assets

 

Equity

7%

12%

Debt

70%

78%

Real estate

3%

3%

Other investments

20%

7%

v3.24.3
INCOME TAXES (Tables)
12 Months Ended
Oct. 27, 2024
INCOME TAXES  
Provision for Income Taxes by Taxing Jurisdiction and by Significant Component The provision for income taxes by taxing jurisdiction and by significant component consisted of the following:

 

2024

  

2023

  

2022

 

Current:

             

             

             

U.S.:

Federal

$

1,253

$

1,803

$

514

State

 

257

 

386

 

136

Foreign

 

878

 

1,472

 

1,423

Total current

 

2,388

 

3,661

 

2,073

Deferred:

U.S.:

Federal

 

(326)

 

(485)

 

29

State

 

(29)

 

(65)

 

24

Foreign

 

61

 

(240)

 

(119)

Total deferred

 

(294)

 

(790)

 

(66)

Provision for income taxes

$

2,094

$

2,871

$

2,007

Comparison of Statutory and Effective Income Tax Provision

A comparison of the statutory and effective income tax provision and reasons for related differences follow:

  

2024

  

2023

  

2022

 

U.S. federal income tax provision at the U.S. statutory rate (21 percent)

$

1,933

$

2,734

$

1,917

State and local taxes, net of federal effect

179

266

133

Other impacts of Tax Cuts and Jobs Act of 2017

(60)

(58)

(29)

Rate differential on foreign subsidiaries

 

89

 

142

 

121

Research and business tax credits

 

(99)

 

(107)

 

(65)

Excess tax benefits on equity compensation

(35)

(49)

(55)

Valuation allowances

 

(46)

 

9

 

179

Unrecognized tax benefits

70

 

4

 

93

Other – net

 

63

(70)

(287)

Provision for income taxes

$

2,094

$

2,871

$

2,007

Analysis of the Deferred Income Tax Assets and Liabilities An analysis of the deferred income tax assets and liabilities at October 27, 2024 and October 29, 2023 follows:

2024

2023

 Deferred

 Deferred

 Deferred

 Deferred

Tax

Tax

Tax

Tax

 

Assets

 

Liabilities

 

Assets

 

Liabilities

 

Accrual for employee benefits

$

362

$

439

Accrual for sales allowances

 

847

 

884

Allowance for credit losses

 

93

 

79

Amortization of R&D expenditures

925

492

Deferred compensation

 

52

 

45

Goodwill and other intangible assets

$

107

$

166

Lessee lease transactions

73

69

68

61

Lessor lease transactions

449

581

OPEB – net

256

193

Pension – net

 

394

 

424

Share-based compensation

 

50

 

38

Tax loss and tax credit carryforwards

 

1,564

 

1,518

Tax over book depreciation

195

198

Unearned revenue

174

 

177

 

Other items

 

337

 

313

 

681

 

278

Less: valuation allowances

 

(1,598)

 

(1,612)

Total

$

3,135

$

1,527

$

3,002

$

1,708

Reconciliation of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits at October 27, 2024, October 29, 2023, and October 30, 2022 follows:

 

2024

  

2023

  

2022

 

Beginning of year balance

$

907

$

891

$

811

Increases to tax positions taken during the current year

 

59

 

68

 

98

Increases to tax positions taken during prior years

 

68

 

164

 

29

Decreases to tax positions taken during the current year

(2)

(3)

Decreases to tax positions taken during prior years

 

(99)

 

(209)

 

(18)

Decreases due to lapse of statute of limitations

 

(7)

 

(10)

 

(7)

Other

(1)

(4)

2

Foreign exchange

 

3

 

10

 

(24)

End of year balance

$

928

$

907

$

891

v3.24.3
OTHER INCOME AND OTHER OPERATING EXPENSES (Tables)
12 Months Ended
Oct. 27, 2024
OTHER INCOME AND OTHER OPERATING EXPENSES  
Major Components of Other Income and Other Operating Expenses

The major components of other income and other operating expenses consisted of the following:

 

2024

  

2023

  

2022

 

Other income:

            

            

            

Revenues from services

$

367

$

312

$

283

Extended warranty premiums earned

310

312

289

Trademark licensing income

88

95

89

Operating lease disposition gains

 

19

 

33

 

72

Gain on previously held equity investment

326

Investment income

 

127

 

29

 

14

Other

 

287

 

222

 

222

Total

$

1,198

$

1,003

$

1,295

Other operating expenses:

Depreciation of equipment on operating leases

$

874

$

853

$

827

Extended warranty claims

 

340

 

309

 

267

Cost of services

 

248

 

227

 

214

Pension and OPEB benefit, excluding the service cost component

(333)

(286)

(218)

Foreign exchange loss

71

122

132

Other

 

57

 

67

 

53

Total

$

1,257

$

1,292

$

1,275

v3.24.3
MARKETABLE SECURITIES (Tables)
12 Months Ended
Oct. 27, 2024
MARKETABLE SECURITIES  
Amortized Cost and Fair Value of Marketable Securities

The amortized cost and fair value of marketable securities at the end of 2024 and 2023 follow:

  

  

Gross

  

Gross

  

 

Amortized

Unrealized

Unrealized

Fair

 

Cost

Gains

Losses

   Value   

 

2024

Corporate debt securities

$

445

$

1

$

23

$

423

International debt securities

169

26

143

Mortgage-backed securities*

 

193

 

28

 

165

Municipal debt securities

 

78

1

5

 

74

U.S. government debt securities

377

28

 

349

Total debt securities

$

1,262

$

2

$

110

1,154

Marketable securities

$

1,154

2023

International equity securities

$

3

International mutual funds securities

101

U.S. equity fund

86

U.S. fixed income fund

32

Total equity securities

222

Corporate debt securities

$

285

$

41

 

244

International debt securities

5

4

1

Mortgage-backed securities*

 

225

 

40

 

185

Municipal debt securities

 

87

12

 

75

U.S. government debt securities

260

41

 

219

Total debt securities

$

862

$

138

724

Marketable securities

$

946

*    Primarily issued by U.S. government-sponsored enterprises.

Purchases and Sale Proceeds for Marketable Securities

The purchases, maturities, and sale proceeds for marketable securities during 2024, 2023, and 2022 follow:

   2024   

  

   2023   

  

   2022   

Purchases

$

1,055

$

491

$

250

Maturities and sale proceeds

832

186

79

Unrealized Gains on Equity Securities

Unrealized gain (loss) on equity securities during 2024 and 2023 follow:

    2024    

  

    2023    

Net gain recognized on equity securities

$

88

Less: Net gain (loss) on equity securities sold

88

$

(1)

Unrealized gain on equity securities

$

$

1

Contractual Maturities of Debt Securities

The contractual maturities of available-for-sale debt securities at October 27, 2024 follow:

 

Amortized

 

Fair

 

 

Cost

 

   Value   

Due in one year or less

$

28

$

27

Due after one through five years

 

386

 

356

Due after five through 10 years

 

456

 

435

Due after 10 years

 

199

 

171

Mortgage-backed securities

 

193

 

165

Debt securities

$

1,262

$

1,154

v3.24.3
RECEIVABLES (Tables)
12 Months Ended
Oct. 27, 2024
Accounts, Notes, Loans and Financing Receivable  
Schedule of Financing Receivable Installments

Financing receivable installments, including unearned finance income, at October 27, 2024 and October 29, 2023 were scheduled as follows:

2024

2023

 

Unrestricted/Securitized

  

Unrestricted/Securitized

 

Due in months:

 

                

 

                

 

                

 

                

0 – 12

$

23,872

$

3,555

$

22,176

$

2,820

13 – 24

 

8,187

 

2,507

 

8,646

 

2,089

25 – 36

 

6,356

 

1,702

 

6,692

 

1,509

37 – 48

 

4,509

 

918

 

4,844

 

824

49 – 60

 

2,660

 

266

 

2,920

 

241

Thereafter

 

781

 

9

 

942

 

11

Total

$

46,365

$

8,957

$

46,220

$

7,494

Analysis of the Allowance for Credit Losses and Investment in Financing Receivables

An analysis of the allowance for credit losses and investment in financing receivables follows:

Retail Notes

Revolving

 

& Financing

Charge

Wholesale

 

 

Leases

 

Accounts

 

Receivables

     Total    

 

2024

 

               

               

 

 

Allowance:

Beginning of year balance

$

172

$

21

$

4

$

197

Provision

262

52

314

Provision reversal for assets held for sale

(38)

(38)

Provision subtotal

 

224

 

52

 

 

276

Write-offs

 

(186)

 

(95)

 

 

(281)

Recoveries

 

13

 

30

 

43

Translation adjustments

 

(4)

 

(2)

 

(6)

End of year balance*

$

219

$

8

$

2

$

229

Financing receivables:

End of year balance

$

39,680

$

4,654

$

8,927

$

53,261

2023

 

 

               

 

 

 

Allowance:

Beginning of year balance

$

299

$

22

$

4

$

325

Provision

97

22

119

Provision reversal for assets held for sale

(142)

(142)

Provision (credit) subtotal

 

(45)

 

22

 

 

(23)

Write-offs

 

(84)

 

(45)

 

 

(129)

Recoveries

 

21

 

22

 

43

Translation adjustments

 

(19)

 

 

(19)

End of year balance*

$

172

$

21

$

4

$

197

Financing receivables:

End of year balance

$

39,585

$

4,698

$

6,922

$

51,205

2022

Allowance:

Beginning of year balance

$

138

$

21

$

7

$

166

Provision (credit)

 

197

 

(2)

 

(3)

 

192

Write-offs

 

(61)

 

(27)

 

 

(88)

Recoveries

 

22

 

30

 

52

Translation adjustments

 

3

 

 

3

End of year balance*

$

299

$

22

$

4

$

325

Financing receivables:

End of year balance

$

35,367

$

4,255

$

3,273

$

42,895

*    Individual allowances were not significant.

Write-offs by Year of Origination

Write-offs by year of origination were as follows:

October 27, 2024

2024

2023

2022

2021

Retail customer receivables:

 

  

    

 

  

    

 

  

    

 

  

    

Agriculture and turf

$

5

$

33

$

25

$

11

Construction and forestry

9

38

30

11

Total

$

14

$

71

$

55

$

22

October 27, 2024

2020

Prior Years

Revolving

Charge

Accounts

Total

Retail customer receivables:

  

    

 

  

    

 

  

    

 

  

    

Agriculture and turf

$

11

$

5

$

87

$

177

Construction and forestry

5

3

8

104

Total

$

16

$

8

$

95

$

281

Financing Receivable Analysis Metrics

Financing receivable analysis metrics follow:

2024

2023

Percent of the overall financing receivable portfolio:

Past-due amounts

1.20

1.02

Non-performing

1.01

.92

Allowance for credit losses

.43

.38

Deposits held as credit enhancements

$

142

$

154

Amortized Cost and Performance of Modified Loans

At October 27, 2024, the ending amortized cost and performance of modified loans with borrowers experiencing financial difficulty in 2024 was as follows:

2024

Current

 

$

78

30-59 days past due

1

60-89 days past due

2

90+ days past due

Non-performing

13

Total

$

94

Schedule of Troubled Debt Restructurings

The following table quantifies troubled debt restructurings:

 

2023

 

2022

Number of receivable contracts

209

276

Pre-modification balance

$

10

$

12

Post modification balance

9

10

Schedule of Other Receivables

Other receivables at the end of 2024 and 2023 consisted of:

 

2024

 

2023

 

Taxes receivable

$

1,874

$

1,626

 

Collateral on derivatives

254

667

Receivables from unconsolidated affiliates

3

3

Other

 

414

 

327

Other receivables

 

$

2,545

 

$

2,623

Retail Customer Receivables  
Accounts, Notes, Loans and Financing Receivable  
Credit Quality Analysis

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

October 27, 2024

2024

2023

2022

2021

Retail customer receivables:

 

  

    

 

  

    

 

  

    

 

  

    

 

Agriculture and turf:

Current

$

14,394

$

8,305

$

5,191

$

2,833

30-59 days past due

44

101

55

27

60-89 days past due

22

50

21

10

90+ days past due

1

1

1

2

Non-performing

23

91

76

50

Construction and forestry:

Current

3,100

1,841

1,064

458

30-59 days past due

54

47

25

10

60-89 days past due

25

28

10

7

90+ days past due

1

4

3

1

Non-performing

40

94

67

32

Total

$

17,704

$

10,562

$

6,513

$

3,430

October 27, 2024

2020

Prior Years

Revolving Charge Accounts

Total

Retail customer receivables:

Agriculture and turf:

Current

$

992

$

253

$

4,465

$

36,433

30-59 days past due

11

4

40

282

60-89 days past due

8

2

13

126

90+ days past due

5

Non-performing

20

13

15

288

Construction and forestry:

Current

102

45

114

6,724

30-59 days past due

3

2

4

145

60-89 days past due

2

2

74

90+ days past due

9

Non-performing

9

5

1

248

Total

$

1,147

$

324

$

4,654

$

44,334

October 29, 2023

2023

2022

2021

2020

Retail customer receivables:

 

  

    

 

  

    

 

  

    

 

  

    

 

Agriculture and turf:

Current

$

15,191

$

8,430

$

5,120

$

2,334

30-59 days past due

62

75

39

21

60-89 days past due

18

26

18

10

90+ days past due

2

1

3

3

Non-performing

30

78

62

33

Construction and forestry:

Current

2,927

1,961

1,084

353

30-59 days past due

49

34

27

9

60-89 days past due

19

14

12

5

90+ days past due

6

1

Non-performing

42

80

55

23

Total

$

18,340

$

10,705

$

6,421

$

2,791

October 29, 2023

2019

Prior Years

Revolving Charge Accounts

Total

Retail customer receivables:

Agriculture and turf:

Current

$

853

$

280

$

4,526

$

36,734

30-59 days past due

9

3

29

238

60-89 days past due

4

2

9

87

90+ days past due

9

Non-performing

22

22

8

255

Construction and forestry:

Current

84

29

119

6,557

30-59 days past due

4

4

127

60-89 days past due

2

2

54

90+ days past due

1

8

Non-performing

9

4

1

214

Total

$

987

$

341

$

4,698

$

44,283

Wholesale Receivables  
Accounts, Notes, Loans and Financing Receivable  
Credit Quality Analysis

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

October 27, 2024

2024

2023

2022

2021

Wholesale receivables:

 

  

    

 

  

    

 

  

    

 

  

    

 

Agriculture and turf:

Current

$

650

$

164

$

29

$

6

30+ days past due

Non-performing

Construction and forestry:

Current

21

11

3

12

30+ days past due

Non-performing

Total

$

671

$

175

$

32

$

18

October 27, 2024

2020

Prior Years

Revolving

Total

Wholesale receivables:

  

    

 

  

    

 

  

    

 

  

    

Agriculture and turf:

Current

$

1

$

6,718

$

7,568

30+ days past due

Non-performing

$

1

1

Construction and forestry:

Current

1,311

1,358

30+ days past due

Non-performing

Total

$

1

$

1

$

8,029

$

8,927

October 29, 2023

2023

2022

2021

2020

Wholesale receivables:

 

  

    

 

  

    

 

  

    

 

  

    

 

Agriculture and turf:

Current

$

631

$

93

$

21

$

4

30+ days past due

Non-performing

Construction and forestry:

Current

23

5

20

30+ days past due

Non-performing

Total

$

654

$

98

$

41

$

4

October 29, 2023

2019

Prior Years

Revolving

Total

Wholesale receivables:

  

    

 

  

    

 

  

    

 

  

    

Agriculture and turf:

Current

$

1

$

160

$

5,175

$

6,085

30+ days past due

Non-performing

1

1

Construction and forestry:

Current

76

712

836

30+ days past due

Non-performing

Total

$

2

$

236

$

5,887

$

6,922

Trade Accounts and Notes Receivable  
Accounts, Notes, Loans and Financing Receivable  
Schedule of Trade Accounts and Notes Receivable, Financing Receivables, and Financing Receivables Related to the Sale of Equipment Trade accounts and notes receivable at the end of 2024 and 2023 follow:

 

    2024    

 

    2023    

 

Trade accounts and notes receivable:

Production & precision ag

$

1,532

$

2,642

Small ag & turf

1,657

2,344

Construction & forestry

 

2,137

 

2,753

Trade accounts and notes receivable – net

$

5,326

$

7,739

Schedule of Allowance for Credit Losses on Trade Accounts and Notes Receivable

The allowance for credit losses on trade accounts and notes receivable at October 27, 2024, October 29, 2023, and October 30, 2022, as well as the related activity, follow:

2024

2023

2022

Beginning of year balance

$

35

$

36

$

41

Provision

34

7

1

Write-offs

(5)

(8)

(5)

Translation adjustments

2

(1)

End of year balance*

$

66

$

35

$

36

*    Individual allowances were not significant.

Financing Receivables  
Accounts, Notes, Loans and Financing Receivable  
Schedule of Trade Accounts and Notes Receivable, Financing Receivables, and Financing Receivables Related to the Sale of Equipment

Financing receivables at the end of 2024 and 2023 follow:

2024

2023

 

 

Unrestricted/Securitized

 

Unrestricted/Securitized

Retail notes:

                

 

                

                

 

                

Agriculture and turf

$

25,102

$

7,203

$

26,955

$

6,052

Construction and forestry

 

4,550

 

1,754

 

4,623

 

1,442

Total

 

29,652

 

8,957

 

31,578

 

7,494

Wholesale notes

 

8,951

 

6,947

Revolving charge accounts

 

4,730

 

4,789

Financing leases (direct
and sales-type)

 

3,032

 

2,906

Total financing receivables

 

46,365

 

8,957

 

46,220

 

7,494

Less:

Unearned finance income:

Retail notes

 

1,467

 

187

 

1,906

 

137

Wholesale notes

24

25

Revolving charge accounts

76

91

Financing leases

 

307

 

350

Total

 

1,874

 

187

 

2,372

 

137

Allowance for credit losses

 

182

 

47

 

175

 

22

Financing receivables – net

$

44,309

$

8,723

$

43,673

$

7,335

Financing Receivables | Related to Sales of Equipment  
Accounts, Notes, Loans and Financing Receivable  
Schedule of Trade Accounts and Notes Receivable, Financing Receivables, and Financing Receivables Related to the Sale of Equipment The balances at the end of 2024 and 2023 were as follows:

2024

2023

 

Retail notes*:

Agriculture and turf

$

376

$

1,084

Construction and forestry

271

 

320

Total

647

 

1,404

Wholesale notes

8,951

 

6,947

Direct financing and sales-type leases*

295

 

494

Total financing receivables

9,893

8,845

Less:

Unearned finance income:

Retail notes

37

137

Wholesale notes

24

25

Direct financing and sales-type leases

47

 

60

Total

 

108

 

222

Financing receivables related to our sales of equipment

$

9,785

$

8,623

*    These balances arise from sales and direct financing leases of equipment by company-owned dealers or through direct sales.

v3.24.3
SECURITIZATION OF FINANCING RECEIVABLES (Tables)
12 Months Ended
Oct. 27, 2024
SECURITIZATION OF FINANCING RECEIVABLES  
Components of Consolidated Restricted Assets, Secured Borrowings and Other Liabilities Related to Securitization Transactions

The components of securitization programs were as follows at the end of 2024 and 2023:

 

  2024  

 

  2023  

 

Financing receivables securitized (retail notes)

$

8,770

$

7,357

 

Allowance for credit losses

 

(47)

 

(22)

Other assets (primarily restricted cash)

 

187

 

152

Total restricted securitized assets

 

$

8,910

 

$

7,487

Short-term securitization borrowings

$

8,431

$

6,995

Accrued interest on borrowings

 

14

 

13

Total liabilities related to restricted securitized assets

 

$

8,445

 

$

7,008

v3.24.3
INVENTORIES (Tables)
12 Months Ended
Oct. 27, 2024
INVENTORIES  
Major Classification of Inventories

A majority of inventories owned by us are valued at cost on the “last-in, first-out” (LIFO) basis. If all inventories valued on a LIFO basis had been valued on a “first-in, first-out” (FIFO) basis, the estimated inventories by major classification would have been as follows at the end of 2024 and 2023:

 

2024

 

2023

 

Raw materials and supplies

 

$

3,486

 

$

4,080

 

Work-in-process

 

930

 

1,010

Finished goods and parts

 

5,364

 

5,435

Total FIFO value

 

9,780

 

10,525

Excess of FIFO over LIFO

 

2,687

 

2,365

Inventories

 

$

7,093

 

$

8,160

Percent valued on LIFO basis

 

54%

53%

v3.24.3
PROPERTY AND DEPRECIATION (Tables)
12 Months Ended
Oct. 27, 2024
PROPERTY AND DEPRECIATION  
Schedule of Property and Equipment

A summary of property and equipment at October 27, 2024 and October 29, 2023 follows:

Useful Lives*

 

 

(Years)

 

 2024 

 

 2023 

 

Land

$

390

$

338

 

Buildings and building equipment

 

22

 

5,168

 

4,735

Machinery and equipment

 

11

 

7,125

 

6,613

Dies, patterns, tools, etc.

 

8

 

1,797

 

1,658

All other

 

5

 

1,382

 

1,323

Construction in progress

 

1,313

 

1,266

Total at cost

 

17,175

 

15,933

Less: accumulated depreciation

 

(9,595)

 

(9,054)

Property and equipment – net

 

$

7,580

 

$

6,879

*    Weighted-averages

Schedule of Property and Equipment Additions and Depreciation

Property and equipment additions and depreciation follows:

 

2024

 

2023

 

2022

Additions

$

1,707

$

1,597

$

1,197

Depreciation

 

898

 

838

 

806

Schedule of Property and Equipment by Geographic Areas

For property and equipment, more than 10 percent resides in the U.S. and Germany, separately disclosed below:

 

2024

 

2023

U.S.

$

4,132

$

3,807

Germany

 

1,271

 

1,192

Other countries

 

2,177

 

1,880

Total

$

7,580

$

6,879

v3.24.3
GOODWILL AND OTHER INTANGIBLE ASSETS - NET (Tables)
12 Months Ended
Oct. 27, 2024
GOODWILL AND OTHER INTANGIBLE ASSETS - NET  
Changes in Goodwill by Operating Segments

The changes in amounts of goodwill by operating segments were as follows. There were no accumulated goodwill impairment losses.

 

PPA

 

SAT

 

CF

 

   Total   

 

October 30, 2022

$

646

$

318

$

2,723

$

3,687

 

Acquisitions (Note 3)

41

40

81

Translation adjustments and other

15

5

112

 

132

October 29, 2023

702

363

2,835

 

3,900

Translation adjustments and other

(1)

2

58

 

59

October 27, 2024

$

701

$

365

$

2,893

$

3,959

Components of Other Intangible Assets

The components of other intangible assets were as follows:

 

 2024 

  

 2023 

 

Customer lists and relationships

$

508

$

501

 

Technology, patents, trademarks, and other

 

1,423

 

1,387

Total at cost

 

1,931

 

1,888

Less accumulated amortization:

 

 

Customer lists and relationships

(231)

(195)

Technology, patents, trademarks, and other

(701)

(560)

Total accumulated amortization

(932)

(755)

Other intangible assets – net

 

$

999

 

$

1,133

Actual Amortization Expense and Estimated Future Amortization Expense

Actual amortization expense for the past three years and the estimated amortization expense for the next five years follows:

Year

Amortization

2022

$

145

2023

169

2024

166

Estimated – 2025

146

2026

128

2027

121

2028

87

2029

74

v3.24.3
OTHER ASSETS (Tables)
12 Months Ended
Oct. 27, 2024
OTHER ASSETS  
Schedule of Other Assets

Other assets at October 27, 2024 and October 29, 2023 consisted of the following:

 

2024

 

2023

Operating lease asset (Note 24)

$

274

$

283

Capitalized software, net

504

 

450

Investment in unconsolidated affiliates

122

 

126

Deferred charges (including prepaids)

412

426

Derivative assets (Note 26)

357

292

Prepaid taxes

238

167

Parts return asset

141

127

Restricted cash

193

162

Matured lease & repossessed inventory

106

59

Other

559

411

Other Assets

$

2,906

$

2,503

v3.24.3
SHORT-TERM BORROWINGS (Tables)
12 Months Ended
Oct. 27, 2024
SHORT-TERM BORROWINGS  
Short-Term Borrowings

Short-term borrowings at the end of 2024 and 2023 consisted of:

 

2024

 

2023

 

Commercial paper

 

$

4,008

 

$

9,100

 

Notes payable to banks

377

 

483

Finance lease obligations due within one year

33

25

Long-term borrowings due within one year

 

9,115

 

8,331

Short-term borrowings

$

13,533

$

17,939

The weighted-average interest rates at the end of 2024 and 2023 were:

    

2024

    

2023

 

Short-term borrowings:

              

              

Commercial paper

     

4.8%

     

5.4%

  

Notes payable to banks

11.0%

 

31.6%

The decrease in the weighted-average interest rates of notes payable to banks is primarily the result of Argentine peso funding representing a smaller portion of the notes outstanding.

v3.24.3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)
12 Months Ended
Oct. 27, 2024
ACCOUNTS PAYABLE AND ACCRUED EXPENSES  
Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses at the end of 2024 and 2023 consisted of the following:

  

2024

  

2023

 

Accounts payable:

Trade payables

  

$

2,698

  

$

3,467

 

Dividends payable

 

405

 

388

Operating lease liabilities

270

281

Deposits withheld from dealers and merchants

152

163

Payables to unconsolidated affiliates

6

6

Other

 

204

 

153

Accrued expenses:

Employee benefits

 

1,925

 

2,152

Accrued taxes

1,509

1,558

Product warranties

 

1,426

 

1,610

Dealer sales incentives

 

996

 

1,243

Extended warranty premium

1,179

1,021

Derivative liabilities

582

1,130

Unearned revenue (contractual liability)

 

744

 

676

Unearned operating lease revenue

495

451

Accrued interest

455

434

Parts return liability

420

392

Other

 

1,077

 

1,005

Accounts payable and accrued expenses

 

$

14,543

 

$

16,130

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $2,121 at October 27, 2024 and $2,228 at October 29, 2023. Other eliminations were made for accrued taxes and other accrued expenses.
v3.24.3
LONG-TERM BORROWINGS (Tables)
12 Months Ended
Oct. 27, 2024
LONG-TERM BORROWINGS  
Long-Term Borrowings

Long-term borrowings at the end of 2024 and 2023 consisted of:

 

2024

  

2023

 

Underwritten term debt:

               

               

U.S. dollar notes and debentures:

2.75% notes due 2025

$

700

6.55% debentures due 2028

$

200

 

200

5.375% notes due 2029

 

500

 

500

3.10% notes due 2030

700

700

8.10% debentures due 2030

 

250

 

250

7.125% notes due 2031

 

300

 

300

3.90% notes due 2042

 

1,250

 

1,250

2.875% notes due 2049

500

500

3.75% notes due 2050

850

850

Euro notes:

1.85% notes due 2028 (€600 principal)

650

634

2.20% notes due 2032 (€600 principal)

650

634

1.65% notes due 2039 (€650 principal)

704

687

Serial issuances:

Medium-term notes

 

36,566

29,638

Other notes and finance lease obligations

 

265

 

1,769

Less: debt issuance costs and debt discounts

(156)

(135)

Long-term borrowings

 

$

43,229

$

38,477

Medium-term notes due through 2034 are offered by prospectus and issued at fixed and variable rates. All outstanding notes and debentures are senior unsecured borrowings and rank equally with each other. The principal balances and weighted-average interest rates at the end of 2024 and 2023 follow:

 

2024

 

2023

 

Medium-term notes:

               

               

Principal

$

37,141

$

30,902

Weighted-average interest rates

5.2%

4.9%

v3.24.3
COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Oct. 27, 2024
COMMITMENTS AND CONTINGENCIES  
Warranty Reconciliation The reconciliation of the changes in the warranty liability follows:

 

    2024   

 

    2023    

 

Beginning of year balance

 

$

1,610

 

$

1,427

 

Warranty claims paid

 

(1,327)

 

(1,181)

New product warranty accruals

 

1,157

 

1,347

Foreign exchange

 

(14)

 

17

End of year balance

 

$

1,426

 

$

1,610

v3.24.3
CAPITAL STOCK (Tables)
12 Months Ended
Oct. 27, 2024
CAPITAL STOCK  
Reconciliation of Basic and Diluted Net Income Per Share

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

 

   2024   

 

   2023   

 

   2022   

 

Net income attributable to Deere & Company

 

$

7,100

 

$

10,166

 

$

7,131

Average shares outstanding

 

276.0

 

292.2

 

304.5

Basic per share

 

$

25.73

 

$

34.80

 

$

23.42

Average shares outstanding

 

276.0

 

292.2

 

304.5

Effect of dilutive stock options and unvested restricted stock units

 

1.1

 

1.4

 

1.8

Total potential shares outstanding

 

277.1

 

293.6

 

306.3

Diluted per share

 

$

25.62

 

$

34.63

 

$

23.28

Shares excluded as antidilutive

 

.3

 

.1

 

.2

v3.24.3
SHARE-BASED COMPENSATION (Tables)
12 Months Ended
Oct. 27, 2024
SHARE-BASED COMPENSATION  
Vesting Period and Dividend Equivalents Received Prior to Vesting The stock awards vesting periods and the dividend equivalents earned during the vesting period follow:

Vesting

Dividend

Period

Equivalents

Stock options

1-3 years

Not included

Service-based RSUs

1-3 years

Included

Performance/service-based RSUs

3 years

Not included

Market/service-based RSUs

3 years

Not included

Share-based Compensation Expense, Recognized Income Tax Benefits, and Total Grant-date Fair Value

The total share-based compensation expense, recognized income tax benefits, and total grant-date fair values of stock options and restricted stock units vested consisted of the following:

2024

2023

2022

Share-based compensation expense

$

208

$

130

$

85

Income tax benefits

34

21

17

Stock options and restricted stock units vested

110

84

74

Assumptions Used for the Binomial Lattice Model to Determine Fair Value of Options The assumptions used for the binomial lattice model to determine the fair value of options follow:

 

  2024  

 

  2023  

 

  2022  

 

Risk-free interest rate*

 

3.96%

 

2.68%

 

1.27%

Expected dividends

1.6%

1.1%

1.2%

Volatility*

27.0%

33.0%

32.0%

Expected term (in years)*

 

5.1

 

5.1

 

5.1

*    Weighted-averages

Stock Option Activity

The activity for outstanding stock options at October 27, 2024, and changes during 2024 follow:

  

Remaining

Aggregate

 

Exercise

Contractual

Intrinsic

 

Shares

Price*

Term

Value

 

(millions)

 

(per share)

 

(years)

 

(millions)

 

Outstanding at beginning of year

 

1.7

$

190.08

Granted

 

.2

 

377.01

Exercised

 

(.4)

 

102.85

Outstanding at end of year

 

1.5

 

242.41

 

5.04

 

$

249.1

Exercisable at end of year

 

1.1

 

197.53

 

3.96

 

239.6

*    Weighted-averages

Amounts Related to Stock Options

The amounts related to stock options were as follows in millions of dollars unless otherwise noted:

2024

2023

2022

Weighted-average grant date fair value (per share)

$

98.04

$

136.46

$

89.20

Intrinsic value of options exercised

125

153

169

Cash received from exercises

44

60

63

Tax benefit from exercises

27

34

39

Weighted-average Grant Date Fair Values

The weighted-average grant date fair values were as follows:

2024

2023

2022

Service-based

$

377.72

$

428.35

$

347.59

Performance/service-based

360.53

424.93

331.47

Market/service-based

370.87

Restricted Stock Units Activity

Our RSUs at October 27, 2024 and changes during 2024 in thousands of shares and dollars per share follow:

Grant-Date

 

Shares

Fair Value*

(per share)

 

Service-based:

Nonvested at beginning of year

 

310

$

348.82

Granted

 

383

 

377.72

Vested

 

(196)

 

330.73

Forfeited

(26)

375.41

Nonvested at end of year

 

471

 

378.39

Performance/service-based:

Nonvested at beginning of year

 

119

 

331.78

Granted

 

52

 

360.53

Vested

 

(88)

 

245.73

Performance change

 

44

 

245.73

Forfeited

 

(1)

 

360.53

Nonvested at end of year

 

126

 

373.35

Market/service-based:

Nonvested at beginning of year

 

 

Granted

 

52

 

370.87

Forfeited

 

(1)

 

370.87

Nonvested at end of year

 

51

 

370.87

*    Weighted-averages

v3.24.3
OTHER COMPREHENSIVE INCOME ITEMS (Tables)
12 Months Ended
Oct. 27, 2024
OTHER COMPREHENSIVE INCOME ITEMS  
Schedule of After-Tax Components of Accumulated Other Comprehensive Income (Loss)

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

2024

2023

2022

Retirement benefits adjustment

$

(1,274)

$

(845)

$

(389)

Cumulative translation adjustment

(2,286)

(2,151)

(2,594)

Unrealized gain (loss) on derivatives

(72)

(8)

21

Unrealized loss on debt securities

(74)

(110)

(94)

Accumulated other comprehensive income (loss)

$

(3,706)

$

(3,114)

$

(3,056)

Schedule of Amounts Recorded in and Reclassifications out of Other Comprehensive Income (Loss) and the Income Tax Effects

The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss).

Before

Tax

After

 

Tax

(Expense)

Tax

 

 

Amount

 

Credit

 

Amount

 

2024

Cumulative translation adjustment

 

$

(147)

$

12

$

(135)

Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss)

 

(10)

2

 

(8)

Reclassification of realized (gain) loss to Interest expense

(71)

 

15

(56)

Net unrealized gain (loss) on derivatives

 

(81)

 

17

 

(64)

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

 

45

 

(8)

 

37

Reclassification of realized (gain) loss to Other income

(1)

 

 

(1)

Net unrealized gain (loss) on debt securities

 

44

 

(8)

 

36

Retirement benefits adjustment:

Net actuarial gain (loss)

 

(568)

 

136

 

(432)

Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss

 

(72)

 

19

 

(53)

Prior service (credit) cost

 

36

 

(9)

 

27

Settlements/curtailments

 

38

 

(9)

 

29

Net unrealized gain (loss) on retirement benefits adjustment

 

(566)

 

137

 

(429)

Total other comprehensive income (loss)

 

$

(750)

 

$

158

 

$

(592)

Before

Tax

After

 

Tax

(Expense)

Tax

 

 

Amount

 

Credit

 

Amount

 

2023

 

 

 

Cumulative translation adjustment:

Unrealized translation gain (loss)

 

$

424

$

(2)

$

422

Reclassification of realized (gain) loss to:

Selling, administrative and general expenses

10

10

Other operating expenses

11

11

Net unrealized translation gain (loss)

445

(2)

443

Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss)

 

25

(5)

 

20

Reclassification of realized (gain) loss to Interest expense

(62)

13

(49)

Net unrealized gain (loss) on derivatives

 

(37)

 

8

 

(29)

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

 

(20)

 

4

 

(16)

Net unrealized gain (loss) on debt securities

 

(20)

 

4

 

(16)

Retirement benefits adjustment:

Net actuarial gain (loss)

 

(589)

 

139

 

(450)

Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss

 

(81)

 

20

 

(61)

Prior service (credit) cost

 

37

 

(9)

 

28

Settlements

 

37

 

(10)

 

27

Net unrealized gain (loss) on retirement benefits adjustment

 

(596)

 

140

 

(456)

Total other comprehensive income (loss)

 

$

(208)

 

$

150

 

$

(58)

Before

Tax

After

 

Tax

(Expense)

Tax

 

 

Amount

 

Credit

 

Amount

 

2022

Cumulative translation adjustment

 

$

(1,105)

$

(11)

$

(1,116)

Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss)

 

89

(19)

 

70

Reclassification of realized (gain) loss to Interest expense

(9)

2

(7)

Net unrealized gain (loss) on derivatives

 

80

 

(17)

 

63

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

 

(140)

 

30

 

(110)

Reclassification of realized (gain) loss to Other income

1

 

1

Net unrealized gain (loss) on debt securities

 

(139)

 

30

 

(109)

Retirement benefits adjustment:

Net actuarial gain (loss)

 

1,192

 

(298)

 

894

Prior service credit (cost)

(517)

124

(393)

Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss

 

116

 

(29)

 

87

Prior service (credit) cost

 

30

 

(7)

 

23

Settlements/curtailment

 

45

 

(11)

 

34

Net unrealized gain (loss) on retirement benefits adjustment

 

866

 

(221)

 

645

Total other comprehensive income (loss)

 

$

(298)

 

$

(219)

 

$

(517)

v3.24.3
LEASES (Tables)
12 Months Ended
Oct. 27, 2024
LEASES  
Summary of Lease Expense by Type

The lease expense by type consisted of the following:

2024

2023

2022

Operating lease expense

$

133

$

129

$

114

Short-term lease expense

38

49

55

Variable lease expense

72

80

74

Finance lease:

Depreciation expense

34

28

26

Interest on lease liabilities

4

2

1

Total lease expense

$

281

$

288

$

270

Schedule of Operating and Finance Lease Right of Use Assets and Liabilities, Location in Consolidated Balance Sheets

Operating and finance lease right of use assets and lease liabilities follow:

2024

2023

Operating leases:

Other assets

$

274

$

283

Accounts payable and accrued expenses

270

281

Finance leases:

Property and equipment — net

$

89

$

66

Short-term borrowings

33

25

Long-term borrowings

72

49

Total finance lease liabilities

$

105

$

74

Schedule of Weighted-Average Remaining Lease Terms in Years and Discount Rates

The weighted-average remaining lease terms in years and discount rates follows:

2024

2023

Weighted-average remaining lease terms:

Operating leases

7

7

Finance leases

4

4

Weighted-average discount rates:

Operating leases

3.5%

3.1%

Finance leases

4.3%

3.6%

Schedule of Operating Lease Payment Amounts

Lease payment amounts in each of the next five years at October 27, 2024 follow:

Operating

Finance

Due in:

Leases

Leases

2025

$

97

$

38

2026

57

30

2027

39

22

2028

34

13

2029

22

6

Later years

40

6

Total lease payments

289

115

Less: imputed interest

(19)

(10)

Total lease liabilities

$

270

$

105

Schedule of Finance Lease Payment Amounts

Lease payment amounts in each of the next five years at October 27, 2024 follow:

Operating

Finance

Due in:

Leases

Leases

2025

$

97

$

38

2026

57

30

2027

39

22

2028

34

13

2029

22

6

Later years

40

6

Total lease payments

289

115

Less: imputed interest

(19)

(10)

Total lease liabilities

$

270

$

105

Schedule of Cash Paid for Amounts Included in the Measurement of Lease Liabilities and Right of Use Assets Obtained in Exchange for Lease Liabilities

Cash paid for amounts included in the measurement of lease liabilities follows:

2024

2023

2022

Operating cash flows for operating leases

$

129

$

132

$

127

Operating cash flows for finance leases

4

2

1

Financing cash flows for finance leases

36

31

28

Right of use assets obtained in exchange for lease liabilities follow:

2024

2023

Operating leases

$

75

$

97

Finance leases

67

54

Schedule of Lease Revenues Earned

Lease revenues earned by us follow:

2024

2023

2022

Sales-type and direct finance lease revenues

$

190

$

165

$

154

Operating lease revenues

1,403

1,312

1,318

Variable lease revenues

17

16

26

Total lease revenues

$

1,610

$

1,493

$

1,498

Schedule of Sales-type and Direct Financing Lease Receivables by Market

Sales-type and direct financing lease receivables by market follow:

2024

2023

Agriculture and turf

$

1,022

$

1,078

Construction and forestry

1,034

1,048

Total

2,056

2,126

Guaranteed residual values

921

723

Unguaranteed residual values

55

57

Less: unearned finance income

(307)

(350)

Financing lease receivables

$

2,725

$

2,556

Schedule of Payments, Including Guaranteed Residual Values, on Sales-type and Direct Financing Lease Receivables

Scheduled payments, including guaranteed residual values, on sales-type and direct financing lease receivables at October 27, 2024 follow:

Due in:

2024

2025

$

1,598

2026

620

2027

389

2028

213

2029

133

Later years

24

Total

$

2,977

Schedule of Cost of Equipment on Operating Leases by Market

The cost of equipment on operating leases by market follow:

2024

2023

Agriculture and turf

$

7,875

$

7,168

Construction and forestry

1,142

1,212

Total

9,017

8,380

Less: accumulated depreciation

(1,566)

(1,463)

Equipment on operating leases – net

$

7,451

$

6,917

Operating lease residual values

$

5,227

$

4,864

First-loss residual value guarantees

1,393

1,188

Schedule of Lease Payments for Equipment on Operating Leases

Lease payments for operating leases are scheduled as follows:

Due in:

2024

2025

$

1,151

2026

865

2027

534

2028

279

2029

71

Later years

9

Total

$

2,909

v3.24.3
FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Oct. 27, 2024
FAIR VALUE MEASUREMENTS  
Fair Values of Financial Instruments

The fair values of financial instruments that do not approximate the carrying values at October 27, 2024 and October 29, 2023 follow:

2024

2023

Carrying

     Fair     

Carrying

     Fair     

 

Value

  

Value*

  

Value

  

Value*

 

Financing receivables – net

$

44,309

$

44,336

$

43,673

$

42,777

Financing receivables securitized – net

8,723

8,654

7,335

7,056

Short-term securitization borrowings

8,431

8,453

6,995

6,921

Long-term borrowings due within one year**

 

9,115

 

9,079

 

8,331

 

8,156

Long-term borrowings**

 

43,157

 

42,804

 

38,428

 

36,873

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

**  Values exclude finance lease liabilities that are presented as borrowings (see Note 24).

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at October 27, 2024 and October 29, 2023 at fair value on a recurring basis follow, excluding our cash equivalents, which were carried at a cost that approximates fair value and consisted of money market funds and time deposits:

 

   2024   

 

   2023   

 

Level 1:

Marketable securities

International equity securities

 

 

$

3

International mutual funds securities

101

U.S. equity fund

86

U.S. fixed income fund

 

32

U.S. government debt securities

$

239

 

78

Total Level 1 marketable securities

239

300

Level 2:

Marketable securities

Corporate debt securities

 

423

 

244

International debt securities

143

1

Mortgage-backed securities*

 

165

 

185

Municipal debt securities

 

74

 

75

U.S. government debt securities

110

141

Total Level 2 marketable securities

 

915

 

646

Other assets - Derivatives

357

292

Accounts payable and accrued expenses – Derivatives

582

1,130

Level 3:

Accounts payable and accrued expenses – Deferred consideration

147

186

*    Primarily issued by U.S. government sponsored enterprises.

Fair Value, Nonrecurring Level 3 Measurements from Impairments

Fair value, nonrecurring level 3 measurements from impairments at October 27, 2024 and October 29, 2023 follow:

Fair Value

Losses

 

 2024

 

 2023 

 

 2024 

 

 2023 

 

 2022 

Inventories

$

19

Property and equipment – net

 

 

 

 

 

41

Other intangible assets – net

 

 

28

Other assets

$

23

$

28

Assets held for sale

 

2,944

 

97

v3.24.3
DERIVATIVE INSTRUMENTS (Tables)
12 Months Ended
Oct. 27, 2024
DERIVATIVE INSTRUMENTS  
Fair Values of Derivative Instruments in Consolidated Balance Sheets

Fair values of our derivative instruments and the associated notional amounts at the end of 2024 and 2023 were as follows. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.”

Fair Value

Notional

Assets

Liabilities

2024

Cash flow hedges:

 

 

    

  

  

 

Interest rate contracts

 

$

2,875

$

3

$

20

 

 

Fair value hedges:

Interest rate contracts

15,864

115

467

Cross-currency interest rate contracts

975

31

 

Not designated as hedging instruments:

Interest rate contracts

12,518

97

75

Foreign exchange contracts

7,533

95

20

Cross-currency interest rate contracts

158

16

2023

Cash flow hedges:

 

 

    

  

  

 

Interest rate contracts

 

$

1,500

$

45

 

 

Fair value hedges:

Interest rate contracts

12,691

$

970

 

Not designated as hedging instruments:

Interest rate contracts

13,853

169

98

Foreign exchange contracts

8,117

75

54

Cross-currency interest rate contracts

176

3

8

Amounts Recorded in the Consolidated Balance Sheets Related to Borrowings Designated in Fair Value Hedging Relationships

The amounts recorded, at October 27, 2024 and October 29, 2023, in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. Fair value hedging adjustments are included in the carrying amount of the hedged item.

Active Hedging

Discontinued Hedging

Relationships

Relationships

Carrying

Cumulative

Carrying

Cumulative

Amount of

Fair Value

Amount of

Fair Value

Hedged

Hedging

Formerly

Hedging

Item

Amount

Hedged Item

Amount

2024

Short-term borrowings

$

287

$

(1)

$

1,782

$

7

Long-term borrowings

16,125

(347)

8,626

(228)

2023

Short-term borrowings

$

1,814

$

15

Long-term borrowings

$

11,660

$

(976)

7,144

(288)

Gains (Losses) Related to Derivative Instruments on Statements of Consolidated Income

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

 

  2024  

 

  2023  

 

  2022  

 

Fair Value Hedges

Interest rate contracts – Interest expense

 

$

226

 

$

(542)

 

$

(1,144)

Cash Flow Hedges

Recognized in OCI:

Interest rate contracts – OCI (pretax)

$

(10)

$

25

$

89

Reclassified from OCI:

Interest rate contracts – Interest expense

 

71

 

62

 

9

Not Designated as Hedges

Interest rate contracts – Net sales

$

1

$

53

Interest rate contracts – Interest expense

 

$

(4)

 

40

 

81

Foreign exchange contracts – Net sales

(2)

(6)

(6)

Foreign exchange contracts – Cost of sales

 

10

 

8

 

(64)

Foreign exchange contracts – Other operating expenses

 

(135)

 

100

 

402

Total not designated

 

$

(131)

 

$

143

 

$

466

Impact on Derivative Assets and Liabilities Related to Netting Arrangements and Collateral The impact on the derivative assets and liabilities related to netting arrangements and collateral at October 27, 2024 and October 29, 2023 follows:

Gross Amounts

Netting

Net

  

Recognized

  

 Arrangements 

  

Collateral

  

Amount

 

2024

Assets

 

$

357

 

$

(142)

 

 

$

215

Liabilities

 

582

 

(142)

$

(246)

194

2023

Assets

 

$

292

 

$

(152)

 

 

$

140

Liabilities

 

1,130

 

(152)

$

(659)

319

v3.24.3
SEGMENT DATA (Tables)
12 Months Ended
Oct. 27, 2024
SEGMENT DATA  
Schedule of Segment Reporting Information

Information relating to operations by operating segment follows for the years ended October 27, 2024, October 29, 2023, and October 30, 2022.

OPERATING SEGMENTS

2024

 

2023

 

2022

 

Net sales and revenues

 

               

               

               

Unaffiliated customers:

Production & precision ag net sales

$

20,834

$

26,790

$

22,002

Small ag & turf net sales

10,969

13,980

13,381

Construction & forestry net sales

 

12,956

 

14,795

 

12,534

Financial services revenues

 

5,782

 

4,721

 

3,625

Other revenues*

 

1,175

 

965

 

1,035

Total

$

51,716

$

61,251

$

52,577

*    Other revenues are primarily the PPA, SAT, and CF revenues for finance and interest income and other income.

Operating profit

 

               

               

               

Production & precision ag

$

4,514

$

6,996

$

4,386

Small ag & turf

1,627

2,472

1,949

Construction & forestry

 

2,009

 

2,695

 

2,014

Financial services*

 

889

 

795

 

1,159

Total operating profit*

 

9,039

 

12,958

 

9,508

Interest income

 

492

 

559

 

159

Investment income

 

68

 

 

Interest expense

 

(396)

 

(411)

 

(390)

Foreign exchange loss from equipment operations’ financing activities

 

(81)

 

(114)

 

(103)

Pension and OPEB benefit, excluding service cost component

333

286

218

Corporate expenses – net

 

(273)

 

(252)

 

(255)

Income taxes

 

(2,094)

 

(2,871)

 

(2,007)

Total

 

(1,951)

 

(2,803)

 

(2,378)

Net income

 

7,088

 

10,155

 

7,130

Less: Net loss attributable to noncontrolling interests

 

(12)

(11)

(1)

Net income attributable to Deere & Company

$

7,100

$

10,166

$

7,131

*    Operating profit of the financial services business segment includes the effect of its interest income, investment income, interest expense, and foreign exchange gains or losses.

OPERATING SEGMENTS

 

2024

 

2023

 

2022

 

Interest income*

 

               

               

               

Production & precision ag

$

48

$

29

$

22

Small ag & turf

42

35

24

Construction & forestry

 

14

 

13

 

8

Financial services

 

4,620

 

3,731

 

2,245

Corporate

 

492

 

559

 

159

Intercompany

 

(872)

 

(1,008)

 

(431)

Total

$

4,344

$

3,359

$

2,027

*    Does not include finance rental income for equipment on operating leases.

Interest expense

 

               

               

               

Production & precision ag

$

221

$

282

$

122

Small ag & turf

215

236

105

Construction & forestry

 

204

 

169

 

72

Financial services

 

3,182

 

2,362

 

799

Corporate

 

396

 

411

 

390

Intercompany

 

(870)

 

(1,007)

 

(426)

Total

$

3,348

$

2,453

$

1,062

 

Depreciation* and amortization expense

 

               

               

               

Production & precision ag

$

643

$

581

$

523

Small ag & turf

246

241

236

Construction & forestry

 

331

 

301

 

282

Financial services

 

1,040

 

1,016

 

1,050

Intercompany

(142)

(135)

(196)

Total

$

2,118

$

2,004

$

1,895

*    Includes depreciation for equipment on operating leases.

Identifiable operating assets

 

               

               

               

Production & precision ag

$

8,696

$

8,734

$

8,414

Small ag & turf

4,130

4,348

4,451

Construction & forestry

 

7,137

 

7,139

 

6,754

Financial services

 

73,612

 

70,732

 

58,864

Corporate

 

13,745

 

13,134

 

11,547

Total

$

107,320

$

104,087

$

90,030

Capital additions

 

                 

               

               

Production & precision ag

$

1,025

$

896

$

649

Small ag & turf

327

386

329

Construction & forestry

 

352

 

311

 

217

Financial services

 

3

 

4

 

2

Total

$

1,707

$

1,597

$

1,197

v3.24.3
ORGANIZATION AND CONSOLIDATION (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Fiscal year duration 364 days 364 days 364 days
Argentina, Pesos      
Argentina      
Gross peso exposure $ 69 $ 30  
Net peso exposure (after considering the impact of short-term hedges) 14 5  
Argentina      
Argentina      
Net investment $ 826 $ 766  
Net sales and revenues (as a percent) 1.00% 1.00% 1.00%
v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Revenue Recognition      
Revenue, Practical Expedient, Financing Component [true false] true    
Historical Claims Rate, Review Period 5 years    
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] true    
Advertising Costs      
Advertising costs $ 230 $ 244 $ 227
Foreign Currency Translation      
Foreign exchange pretax net gain (loss) $ (63) $ (159) $ (175)
Minimum      
Revenue Recognition      
Interest-free periods granted at the time of sale to the dealer 1 month    
Maximum      
Revenue Recognition      
Interest-free periods granted at the time of sale to the dealer 12 months    
ASU 2022-04      
New Accounting Pronouncements      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true    
ASU 2022-02      
New Accounting Pronouncements      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true    
ASU 2022-01      
New Accounting Pronouncements      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true    
ASU 2021-08      
New Accounting Pronouncements      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true    
ASU 2024-03      
New Accounting Pronouncements      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] false    
ASU 2023-09      
New Accounting Pronouncements      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] false    
ASU 2024-04      
New Accounting Pronouncements      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] false    
ASU 2023-07      
New Accounting Pronouncements      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] false    
ASU 2023-06      
New Accounting Pronouncements      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] false    
ASU 2023-05      
New Accounting Pronouncements      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] false    
ASU 2022-03      
New Accounting Pronouncements      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] false    
Retail Customer Receivables      
Receivables and Allowances      
Percent customer receivable the linear regression model used to estimate credit losses (as a percent) 90.00%    
v3.24.3
ACQUISITIONS AND DISPOSITIONS - 2023 Other Acquisitions (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 29, 2023
Oct. 30, 2022
Acquisitions    
Cash purchase price, net of cash acquired $ 82 $ 498
Spark AI and Smart Apply    
Acquisitions    
Cash purchase price, net of cash acquired 82  
Cash acquired $ 2  
v3.24.3
ACQUISITIONS AND DISPOSITIONS - Kreisel Acquisition (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Feb. 27, 2022
Oct. 29, 2023
Oct. 30, 2022
Oct. 27, 2024
Acquisitions        
Cash purchase price, net of cash acquired   $ 82 $ 498  
Asset and Liability Fair Values at the Acquisition Date        
Goodwill   $ 3,900 $ 3,687 $ 3,959
Kreisel        
Acquisitions        
Cash purchase price, net of cash acquired $ 276      
Cash consideration for acquired equity interests 253      
Cash consideration to reduce the option price 21      
Asset and Liability Fair Values at the Acquisition Date        
Trade accounts and notes receivable 2      
Other receivables 11      
Inventories 11      
Property and equipment 11      
Goodwill 218      
Other intangible assets 178      
Other assets 6      
Total assets 437      
Accounts payable and accrued expenses 26      
Deferred income taxes 39      
Redeemable noncontrolling interest $ 96      
Identifiable Intangible Assets        
Weighted average amortization period (in years) 12 years      
v3.24.3
ACQUISITIONS AND DISPOSITIONS - Excavator Factories Acquisition (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Mar. 27, 2022
Oct. 30, 2022
Oct. 27, 2024
Oct. 29, 2023
Invested Capital        
Non-cash gain on remeasurement of previously held equity investment, pretax   $ 326    
Asset and Liability Fair Values at the Acquisition Date        
Goodwill   3,687 $ 3,959 $ 3,900
Construction & Forestry (CF)        
Asset and Liability Fair Values at the Acquisition Date        
Goodwill   $ 2,723 $ 2,893 $ 2,835
Excavator Factories        
Invested Capital        
Deferred consideration $ 271      
Total purchase price consideration 546      
Less: Cash obtained (187)      
Less: Settlement of intercompany balances (113)      
Net purchase price consideration 246      
Fair value of previously held equity investment 444      
Total invested capital 690      
Non-cash gain on remeasurement of previously held equity investment, after-tax 326      
Asset and Liability Fair Values at the Acquisition Date        
Other receivables 29      
Inventories 286      
Property and equipment 180      
Goodwill 529      
Other intangible assets 70      
Deferred income taxes 56      
Other assets 3      
Total assets 1,153      
Accounts payable and accrued expenses 300      
Long-term borrowings 163      
Total liabilities $ 463      
Identifiable Intangible Assets        
Weighted average amortization period (in years) 10 years      
Excavator Factories | Other Income | Construction & Forestry (CF)        
Invested Capital        
Non-cash gain on remeasurement of previously held equity investment, pretax $ 326      
Excavator Factories | Deere-branded Excavators, Components, and Service Parts        
Invested Capital        
Price increases (as a percent) 27.00%      
Excavator Factories | Deere-branded Excavators, Components, and Service Parts | Minimum        
Invested Capital        
Supply agreement period 5 years      
Excavator Factories | Deere-branded Excavators, Components, and Service Parts | Maximum        
Invested Capital        
Supply agreement period 30 years      
Excavator Factories | License Agreement        
Invested Capital        
Cash consideration $ 70      
Excavator Factories | Factories        
Invested Capital        
Cash consideration $ 205      
v3.24.3
ACQUISITIONS AND DISPOSITIONS - 2022 Other Acquisitions (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 29, 2023
Oct. 30, 2022
Oct. 27, 2024
Acquisitions      
Cash purchase price, net of cash acquired $ 82 $ 498  
Asset and Liability Fair Values at the Acquisition Date      
Goodwill $ 3,900 3,687 $ 3,959
Other Acquisitions      
Acquisitions      
Cash purchase price, net of cash acquired   134  
Cash acquired   3  
Asset and Liability Fair Values at the Acquisition Date      
Trade accounts and notes receivable   8  
Inventories   8  
Property and equipment   4  
Goodwill   53  
Other intangible assets   21  
Other assets   60  
Total assets   154  
Accounts payable and accrued expenses   6  
Deferred income taxes   5  
Total liabilities   11  
Redeemable noncontrolling interest   $ 9  
Identifiable Intangible Assets      
Weighted average amortization period (in years)   7 years  
SurePoint Ag Systems, Inc.      
Acquisitions      
Interest acquired (as a percent)   80.00%  
v3.24.3
ACQUISITIONS AND DISPOSITIONS - Dispositions - (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Oct. 29, 2023
Mar. 26, 2023
Oct. 29, 2023
Oct. 27, 2024
Dispositions        
Total assets       $ 2,944
Total liabilities       $ 1,827
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Sale of Roadbuilding Business in Russia        
Dispositions        
Net loss impact of sale, after-tax $ 18      
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Sale of Roadbuilding Business in Russia | Construction & Forestry (CF)        
Dispositions        
Total proceeds, net of restricted cash sold 16      
Deferred consideration 8   $ 8  
Total assets 32   32  
Total liabilities 1   1  
Cumulative translation loss 11   11  
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Sale of Roadbuilding Business in Russia | Operating Segment        
Dispositions        
Net loss impact of sale, pretax     $ 18  
Location of net loss impact of sale, pretax     Other operating expenses  
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Sale of Roadbuilding Business in Russia | Operating Segment | Construction & Forestry (CF)        
Dispositions        
Net loss impact of sale, pretax $ 18   $ 18  
Location of net loss impact of sale, pretax Other operating expenses   Other operating expenses  
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Sale of Financial Services Business in Russia | Financial Services (FS)        
Dispositions        
Total proceeds, net of restricted cash sold   $ 36    
Total assets   31    
Total liabilities   5    
Cumulative translation loss   $ 10    
v3.24.3
SPECIAL ITEMS - Legal Settlements (Details) - Legal Settlements
$ in Millions
12 Months Ended
Oct. 27, 2024
USD ($)
Special Items  
Gain on legal settlements, after-tax $ 45
Other Income  
Special Items  
Gain on legal settlements, pretax 57
Other Income | Production & Precision Ag (PPA)  
Special Items  
Gain on legal settlements, pretax 17
Other Income | Construction & Forestry (CF)  
Special Items  
Gain on legal settlements, pretax $ 40
v3.24.3
SPECIAL ITEMS - Impairment (Details) - Impairment - Equity in Income (Loss) of Unconsolidated Affiliates
$ in Millions
3 Months Ended
Oct. 27, 2024
USD ($)
Special Items  
Loss on investment in unconsolidated affiliate, after-tax $ 28
Small Ag & Turf (SAT)  
Special Items  
Loss on investment in unconsolidated affiliate, pretax $ 28
v3.24.3
SPECIAL ITEMS - Employee-Separation Programs (Details) - Employee-Separation Programs - USD ($)
$ in Millions
12 Months Ended 18 Months Ended
Nov. 02, 2025
Oct. 27, 2024
Nov. 02, 2025
Special Items      
Employee-separation programs' pretax expenses   $ 157  
Employee-separation programs' after-tax expenses   124  
Payments for employee-separation programs   130  
Operating Segment      
Special Items      
Employee-separation programs' pretax expenses   152  
Operating Segment | Cost of Sales      
Special Items      
Employee-separation programs' pretax expenses   40  
Operating Segment | Research and Development Expenses      
Special Items      
Employee-separation programs' pretax expenses   33  
Operating Segment | Selling, Administrative and General Expenses      
Special Items      
Employee-separation programs' pretax expenses   79  
Operating Segment | Production & Precision Ag (PPA)      
Special Items      
Employee-separation programs' pretax expenses   77  
Operating Segment | Production & Precision Ag (PPA) | Cost of Sales      
Special Items      
Employee-separation programs' pretax expenses   21  
Operating Segment | Production & Precision Ag (PPA) | Research and Development Expenses      
Special Items      
Employee-separation programs' pretax expenses   22  
Operating Segment | Production & Precision Ag (PPA) | Selling, Administrative and General Expenses      
Special Items      
Employee-separation programs' pretax expenses   34  
Operating Segment | Small Ag & Turf (SAT)      
Special Items      
Employee-separation programs' pretax expenses   43  
Operating Segment | Small Ag & Turf (SAT) | Cost of Sales      
Special Items      
Employee-separation programs' pretax expenses   11  
Operating Segment | Small Ag & Turf (SAT) | Research and Development Expenses      
Special Items      
Employee-separation programs' pretax expenses   9  
Operating Segment | Small Ag & Turf (SAT) | Selling, Administrative and General Expenses      
Special Items      
Employee-separation programs' pretax expenses   23  
Operating Segment | Construction & Forestry (CF)      
Special Items      
Employee-separation programs' pretax expenses   22  
Operating Segment | Construction & Forestry (CF) | Cost of Sales      
Special Items      
Employee-separation programs' pretax expenses   8  
Operating Segment | Construction & Forestry (CF) | Research and Development Expenses      
Special Items      
Employee-separation programs' pretax expenses   2  
Operating Segment | Construction & Forestry (CF) | Selling, Administrative and General Expenses      
Special Items      
Employee-separation programs' pretax expenses   12  
Operating Segment | Financial Services (FS)      
Special Items      
Employee-separation programs' pretax expenses   10  
Operating Segment | Financial Services (FS) | Selling, Administrative and General Expenses      
Special Items      
Employee-separation programs' pretax expenses   10  
Corporate      
Special Items      
Employee-separation programs' pretax expenses   $ 5  
Forecasted      
Special Items      
Employee-separation programs' pretax expenses     $ 165
Payments for employee-separation programs $ 27    
v3.24.3
SPECIAL ITEMS - Banco John Deere S.A. (Details) - USD ($)
$ in Millions
1 Months Ended 3 Months Ended 6 Months Ended
Aug. 25, 2024
Jul. 28, 2024
Apr. 27, 2025
Oct. 27, 2024
Assets and Liabilities Classified as Held for Sale and Other Intercompany Payables        
Assets held for sale       $ 2,944
Liabilities held for sale       1,827
Financial Services (FS) | Subsequent Events        
Special Items        
Percentage of ownership after the sale (as a percent)     50.00%  
Financial Services (FS) | Sale of Banco John Deere S.A. (BJD) | Related Party        
Special Items        
Total intercompany payables       654
Financial Services (FS) | Sale of Banco John Deere S.A. (BJD) | Disposal Group, Held-for-Sale, Not Discontinued Operations        
Special Items        
Percentage of ownership to be sold (as a percent) 50.00%      
Reversal of allowance for credit losses   $ 38    
Valuation allowance on assets held for sale       97
Net loss impact of sale, pretax       $ 59
Location of net loss impact of sale, pretax       Selling, administrative and general expenses
Net loss impact of sale, after-tax       $ 59
Assets and Liabilities Classified as Held for Sale and Other Intercompany Payables        
Cash and cash equivalents       115
Trade accounts and notes receivable - net       176
Financing receivables - net       2,693
Deferred income taxes       36
Other miscellaneous assets       21
Valuation allowance       (97)
Assets held for sale       2,944
Short-term borrowings       534
Accounts payable and accrued expenses       118
Long-term borrowings       1,174
Retirement benefits and other liabilities       1
Liabilities held for sale       1,827
Restricted cash       $ 1
v3.24.3
SPECIAL ITEMS - Redeemable Noncontrolling Interest (Details) - SurePoint Ag Systems, Inc.
$ in Millions
3 Months Ended
Jul. 28, 2024
USD ($)
Redeemable Noncontrolling Interest  
Noncontrolling interest redemption (as a percent) 20.00%
Noncontrolling interest redemption gain or loss $ 0
v3.24.3
SPECIAL ITEMS - Sale of Russian Roadbuilding Business (Details) - Sale of Roadbuilding Business in Russia - Disposal Group, Disposed of by Sale, Not Discontinued Operations - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Oct. 29, 2023
Oct. 29, 2023
Special Items    
Net loss impact of sale, after-tax $ 18  
Operating Segment    
Special Items    
Net loss impact of sale, pretax   $ 18
Location of net loss impact of sale, pretax   Other operating expenses
Operating Segment | Construction & Forestry (CF)    
Special Items    
Net loss impact of sale, pretax $ 18 $ 18
Location of net loss impact of sale, pretax Other operating expenses Other operating expenses
v3.24.3
SPECIAL ITEMS - Brazil Tax Ruling (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Jul. 30, 2023
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Special Items        
Provision (credit) for income taxes   $ 2,094 $ 2,871 $ 2,007
Brazil | Foreign Tax Authority        
Special Items        
Provision (credit) for income taxes $ (243)      
Interest income $ 47      
v3.24.3
SPECIAL ITEMS - Financial Services Financing Incentives Correction (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 30, 2023
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Financial Services Financing Incentives        
Selling, administrative and general expenses   $ 4,840 $ 4,595 $ 3,863
Revision of Prior Period, Error Correction, Adjustment | Financial Services (FS)        
Financial Services Financing Incentives        
Selling, administrative and general expenses $ 173      
Financing incentives correction, after-tax $ 135      
Type of error correction de:CorrectionOfTimingAndExpenseClassificationForPortionOfFinancialServicesIncentiveProgramsMember      
Error Correction, Previously Immaterial [true false] true      
v3.24.3
SPECIAL ITEMS - Operating Profit Impact (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Oct. 29, 2023
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Special Items        
Selling, administrative and general expenses   $ 4,840 $ 4,595 $ 3,863
Operating Segment        
Special Items        
Total expense (benefit)   182 191  
Year over year change   (9)    
Operating Segment | Production & Precision Ag (PPA)        
Special Items        
Total expense (benefit)   60    
Year over year change   60    
Operating Segment | Small Ag & Turf (SAT)        
Special Items        
Total expense (benefit)   71    
Year over year change   71    
Operating Segment | Construction & Forestry (CF)        
Special Items        
Total expense (benefit)   (18) 18  
Year over year change   (36)    
Operating Segment | Financial Services (FS)        
Special Items        
Total expense (benefit)   69 173  
Year over year change   (104)    
Sale of Roadbuilding Business in Russia | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Operating Segment        
Special Items        
Net loss impact of sale, pretax     $ 18  
Location of net loss impact of sale, pretax     Other operating expenses  
Sale of Roadbuilding Business in Russia | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Operating Segment | Construction & Forestry (CF)        
Special Items        
Net loss impact of sale, pretax $ 18   $ 18  
Location of net loss impact of sale, pretax Other operating expenses   Other operating expenses  
Legal Settlements | Operating Segment        
Special Items        
Gain on legal settlements   (57)    
Legal Settlements | Operating Segment | Production & Precision Ag (PPA)        
Special Items        
Gain on legal settlements   (17)    
Legal Settlements | Operating Segment | Construction & Forestry (CF)        
Special Items        
Gain on legal settlements   (40)    
Impairment | Operating Segment        
Special Items        
Loss on investment in unconsolidated affiliate   28    
Impairment | Operating Segment | Small Ag & Turf (SAT)        
Special Items        
Loss on investment in unconsolidated affiliate   28    
Employee-Separation Programs        
Special Items        
Employee-separation programs' expenses   157    
Employee-Separation Programs | Operating Segment        
Special Items        
Employee-separation programs' expenses   152    
Employee-Separation Programs | Operating Segment | Production & Precision Ag (PPA)        
Special Items        
Employee-separation programs' expenses   77    
Employee-Separation Programs | Operating Segment | Small Ag & Turf (SAT)        
Special Items        
Employee-separation programs' expenses   43    
Employee-Separation Programs | Operating Segment | Construction & Forestry (CF)        
Special Items        
Employee-separation programs' expenses   22    
Employee-Separation Programs | Operating Segment | Financial Services (FS)        
Special Items        
Employee-separation programs' expenses   10    
BJD Measurement | Disposal Group, Held-for-Sale, Not Discontinued Operations | Operating Segment        
Special Items        
Net loss impact of sale, pretax   $ 59    
Location of net loss impact of sale, pretax   Selling, administrative and general expenses    
BJD Measurement | Disposal Group, Held-for-Sale, Not Discontinued Operations | Operating Segment | Financial Services (FS)        
Special Items        
Net loss impact of sale, pretax   $ 59    
Location of net loss impact of sale, pretax   Selling, administrative and general expenses    
Financing Incentive Correction | Operating Segment        
Special Items        
Selling, administrative and general expenses     $ 173  
Financing Incentive Correction | Operating Segment | Financial Services (FS)        
Special Items        
Selling, administrative and general expenses     $ 173  
v3.24.3
SPECIAL ITEMS - UAW Collective Bargaining Agreement (Details) - UAW Collective Bargaining Arrangement
3 Months Ended
Nov. 17, 2021
USD ($)
facility
Jan. 30, 2022
USD ($)
Special Items    
Term of collective bargaining agreement 6 years  
Immediate wage increase (as a percent) 10.00%  
United States    
Special Items    
Number of facilities represented under collective bargaining agreement | facility 14  
Ratification Bonus    
Special Items    
Ratification bonus payment per eligible employee $ 8,500  
UAW ratification bonus   $ 90,000,000
v3.24.3
SPECIAL ITEMS - Impact of Events in Russia and Ukraine (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Special Items      
Allowance for credit losses $ 276 $ (23) $ 192
Reserves, Impairments, and Voluntary-Separation Costs      
Special Items      
Fixed asset impairment     $ 41
Location of fixed asset impairment     Cost of sales
Intangible asset impairment     $ 28
Location of intangible asset impairment     Cost of sales
Total Russia/Ukraine events pretax expense     $ 255
Net tax impact     (40)
Total Russia/Ukraine events after-tax expense     215
Reserves, Impairments, and Voluntary-Separation Costs | Cost of Sales      
Special Items      
Inventory reserve     19
Voluntary-separation program     3
Reserves, Impairments, and Voluntary-Separation Costs | Selling, Administrative and General Expenses      
Special Items      
Allowance for credit losses     153
Voluntary-separation program     11
Reserves, Impairments, and Voluntary-Separation Costs | Production & Precision Ag (PPA)      
Special Items      
Fixed asset impairment     $ 30
Location of fixed asset impairment     Cost of sales
Intercompany Agreement     $ 82
Total Russia/Ukraine events pretax expense     133
Reserves, Impairments, and Voluntary-Separation Costs | Production & Precision Ag (PPA) | Cost of Sales      
Special Items      
Inventory reserve     14
Voluntary-separation program     3
Reserves, Impairments, and Voluntary-Separation Costs | Production & Precision Ag (PPA) | Selling, Administrative and General Expenses      
Special Items      
Voluntary-separation program     4
Reserves, Impairments, and Voluntary-Separation Costs | Small Ag & Turf (SAT)      
Special Items      
Intercompany Agreement     9
Total Russia/Ukraine events pretax expense     11
Reserves, Impairments, and Voluntary-Separation Costs | Small Ag & Turf (SAT) | Cost of Sales      
Special Items      
Inventory reserve     2
Reserves, Impairments, and Voluntary-Separation Costs | Construction & Forestry (CF)      
Special Items      
Fixed asset impairment     $ 11
Location of fixed asset impairment     Cost of sales
Intangible asset impairment     $ 28
Location of intangible asset impairment     Cost of sales
Intercompany Agreement     $ 62
Total Russia/Ukraine events pretax expense     110
Reserves, Impairments, and Voluntary-Separation Costs | Construction & Forestry (CF) | Cost of Sales      
Special Items      
Inventory reserve     3
Reserves, Impairments, and Voluntary-Separation Costs | Construction & Forestry (CF) | Selling, Administrative and General Expenses      
Special Items      
Voluntary-separation program     6
Reserves, Impairments, and Voluntary-Separation Costs | Financial Services (FS)      
Special Items      
Intercompany Agreement     (153)
Total Russia/Ukraine events pretax expense     1
Reserves, Impairments, and Voluntary-Separation Costs | Financial Services (FS) | Selling, Administrative and General Expenses      
Special Items      
Allowance for credit losses     153
Voluntary-separation program     $ 1
v3.24.3
SPECIAL ITEMS - Gain on Previously Held Equity Investment (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Mar. 27, 2022
Oct. 30, 2022
Special Items    
Non-cash gain on remeasurement of previously held equity investment, pretax   $ 326
Excavator Factories    
Special Items    
Non-cash gain on remeasurement of previously held equity investment, after-tax $ 326  
Gain | Excavator Factories    
Special Items    
Non-cash gain on remeasurement of previously held equity investment, pretax 326  
Non-cash gain on remeasurement of previously held equity investment, after-tax $ 326  
v3.24.3
REVENUE RECOGNITION - Primary Geographic Market, Major Product Line, and Timing (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Revenue Recognition      
Net sales and revenues $ 51,716 $ 61,251 $ 52,577
Revenue Recognized at a Point in Time      
Revenue Recognition      
Net sales and revenues 45,413 56,087 48,756
Revenue Recognized Over Time      
Revenue Recognition      
Net sales and revenues 6,303 5,164 3,821
Production Agriculture      
Revenue Recognition      
Net sales 20,574 26,450 21,685
Small Agriculture      
Revenue Recognition      
Net sales 7,693 10,122 10,027
Turf      
Revenue Recognition      
Net sales 3,023 3,505 3,027
Construction      
Revenue Recognition      
Net sales 5,523 6,842 5,864
Compact Construction      
Revenue Recognition      
Net sales 2,459 2,451 1,667
Roadbuilding      
Revenue Recognition      
Net sales 3,641 3,794 3,441
Forestry      
Revenue Recognition      
Net sales 1,108 1,429 1,308
Financial Products      
Revenue Recognition      
Financial 6,220 5,094 3,769
Other      
Revenue Recognition      
Other net sales and revenues 1,475 1,564 1,789
United States      
Revenue Recognition      
Net sales and revenues 30,242 34,105 28,238
Canada      
Revenue Recognition      
Net sales and revenues 3,900 4,287 3,902
Western Europe      
Revenue Recognition      
Net sales and revenues 6,189 7,321 6,344
Central Europe and CIS      
Revenue Recognition      
Net sales and revenues 1,488 2,137 2,289
Latin America      
Revenue Recognition      
Net sales and revenues 5,538 8,197 7,339
Asia, Africa, Oceania, and Middle East      
Revenue Recognition      
Net sales and revenues 4,359 5,204 4,465
Production & Precision Ag (PPA)      
Revenue Recognition      
Net sales and revenues 21,426 27,287 22,318
Production & Precision Ag (PPA) | Revenue Recognized at a Point in Time      
Revenue Recognition      
Net sales and revenues 21,059 26,969 22,178
Production & Precision Ag (PPA) | Revenue Recognized Over Time      
Revenue Recognition      
Net sales and revenues 367 318 140
Production & Precision Ag (PPA) | Production Agriculture      
Revenue Recognition      
Net sales 20,574 26,450 21,685
Production & Precision Ag (PPA) | Financial Products      
Revenue Recognition      
Financial 240 219 60
Production & Precision Ag (PPA) | Other      
Revenue Recognition      
Other net sales and revenues 612 618 573
Production & Precision Ag (PPA) | United States      
Revenue Recognition      
Net sales and revenues 11,741 13,917 10,975
Production & Precision Ag (PPA) | Canada      
Revenue Recognition      
Net sales and revenues 1,818 1,738 1,387
Production & Precision Ag (PPA) | Western Europe      
Revenue Recognition      
Net sales and revenues 2,068 2,640 2,188
Production & Precision Ag (PPA) | Central Europe and CIS      
Revenue Recognition      
Net sales and revenues 787 1,218 1,207
Production & Precision Ag (PPA) | Latin America      
Revenue Recognition      
Net sales and revenues 3,482 5,608 4,991
Production & Precision Ag (PPA) | Asia, Africa, Oceania, and Middle East      
Revenue Recognition      
Net sales and revenues 1,530 2,166 1,570
Small Ag & Turf (SAT)      
Revenue Recognition      
Net sales and revenues 11,254 14,223 13,569
Small Ag & Turf (SAT) | Revenue Recognized at a Point in Time      
Revenue Recognition      
Net sales and revenues 11,084 14,092 13,493
Small Ag & Turf (SAT) | Revenue Recognized Over Time      
Revenue Recognition      
Net sales and revenues 170 131 76
Small Ag & Turf (SAT) | Small Agriculture      
Revenue Recognition      
Net sales 7,693 10,122 10,027
Small Ag & Turf (SAT) | Turf      
Revenue Recognition      
Net sales 3,023 3,505 3,027
Small Ag & Turf (SAT) | Financial Products      
Revenue Recognition      
Financial 131 96 52
Small Ag & Turf (SAT) | Other      
Revenue Recognition      
Other net sales and revenues 407 500 463
Small Ag & Turf (SAT) | United States      
Revenue Recognition      
Net sales and revenues 6,249 7,796 7,741
Small Ag & Turf (SAT) | Canada      
Revenue Recognition      
Net sales and revenues 605 687 676
Small Ag & Turf (SAT) | Western Europe      
Revenue Recognition      
Net sales and revenues 2,203 2,824 2,478
Small Ag & Turf (SAT) | Central Europe and CIS      
Revenue Recognition      
Net sales and revenues 284 530 488
Small Ag & Turf (SAT) | Latin America      
Revenue Recognition      
Net sales and revenues 433 707 578
Small Ag & Turf (SAT) | Asia, Africa, Oceania, and Middle East      
Revenue Recognition      
Net sales and revenues 1,480 1,679 1,608
Construction & Forestry (CF)      
Revenue Recognition      
Net sales and revenues 13,254 15,020 13,065
Construction & Forestry (CF) | Revenue Recognized at a Point in Time      
Revenue Recognition      
Net sales and revenues 13,137 14,915 12,980
Construction & Forestry (CF) | Revenue Recognized Over Time      
Revenue Recognition      
Net sales and revenues 117 105 85
Construction & Forestry (CF) | Construction      
Revenue Recognition      
Net sales 5,523 6,842 5,864
Construction & Forestry (CF) | Compact Construction      
Revenue Recognition      
Net sales 2,459 2,451 1,667
Construction & Forestry (CF) | Roadbuilding      
Revenue Recognition      
Net sales 3,641 3,794 3,441
Construction & Forestry (CF) | Forestry      
Revenue Recognition      
Net sales 1,108 1,429 1,308
Construction & Forestry (CF) | Financial Products      
Revenue Recognition      
Financial 67 58 32
Construction & Forestry (CF) | Other      
Revenue Recognition      
Other net sales and revenues 456 446 753
Construction & Forestry (CF) | United States      
Revenue Recognition      
Net sales and revenues 8,086 9,109 7,103
Construction & Forestry (CF) | Canada      
Revenue Recognition      
Net sales and revenues 760 1,221 1,238
Construction & Forestry (CF) | Western Europe      
Revenue Recognition      
Net sales and revenues 1,729 1,725 1,576
Construction & Forestry (CF) | Central Europe and CIS      
Revenue Recognition      
Net sales and revenues 381 353 545
Construction & Forestry (CF) | Latin America      
Revenue Recognition      
Net sales and revenues 1,170 1,429 1,467
Construction & Forestry (CF) | Asia, Africa, Oceania, and Middle East      
Revenue Recognition      
Net sales and revenues 1,128 1,183 1,136
Financial Services (FS)      
Revenue Recognition      
Financial 5,782 4,721 3,625
Financial Services (FS) | Revenue Recognized at a Point in Time      
Revenue Recognition      
Financial 133 111 105
Financial Services (FS) | Revenue Recognized Over Time      
Revenue Recognition      
Financial 5,649 4,610 3,520
Financial Services (FS) | Financial Products      
Revenue Recognition      
Financial 5,782 4,721 3,625
Financial Services (FS) | United States      
Revenue Recognition      
Financial 4,166 3,283 2,419
Financial Services (FS) | Canada      
Revenue Recognition      
Financial 717 641 601
Financial Services (FS) | Western Europe      
Revenue Recognition      
Financial 189 132 102
Financial Services (FS) | Central Europe and CIS      
Revenue Recognition      
Financial 36 36 49
Financial Services (FS) | Latin America      
Revenue Recognition      
Financial 453 453 303
Financial Services (FS) | Asia, Africa, Oceania, and Middle East      
Revenue Recognition      
Financial $ 221 $ 176 $ 151
v3.24.3
REVENUE RECOGNITION - Deferred Revenue (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Deferred Revenue      
Deferred revenue received $ 1,923 $ 1,697  
Revenue recognized from deferred revenue $ 553 $ 547 $ 609
v3.24.3
REVENUE RECOGNITION - Unsatisfied Performance Obligations (Details)
$ in Millions
Oct. 27, 2024
USD ($)
Unsatisfied performance obligations  
Unsatisfied performance obligations for contracts with an original duration greater than one year $ 1,747
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-28  
Unsatisfied performance obligations  
Unsatisfied performance obligations for contracts with an original duration greater than one year $ 512
Period estimated revenue to be recognized 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-11-03  
Unsatisfied performance obligations  
Unsatisfied performance obligations for contracts with an original duration greater than one year $ 429
Period estimated revenue to be recognized 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-11-02  
Unsatisfied performance obligations  
Unsatisfied performance obligations for contracts with an original duration greater than one year $ 328
Period estimated revenue to be recognized 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-11-01  
Unsatisfied performance obligations  
Unsatisfied performance obligations for contracts with an original duration greater than one year $ 208
Period estimated revenue to be recognized 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-10-30  
Unsatisfied performance obligations  
Unsatisfied performance obligations for contracts with an original duration greater than one year $ 151
Period estimated revenue to be recognized 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-10-29  
Unsatisfied performance obligations  
Unsatisfied performance obligations for contracts with an original duration greater than one year $ 119
Period estimated revenue to be recognized 24 months
v3.24.3
SUPPLEMENTAL CASH FLOW INFORMATION - Retail Note Securitization Borrowings (Details) - Short-term securitization borrowings
$ in Billions
12 Months Ended
Oct. 27, 2024
USD ($)
Retail Note Securitization Borrowings  
Issuance of short-term securitization borrowings $ 5.3
Retirement of short-term securitization borrowings $ 3.8
v3.24.3
SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
SUPPLEMENTAL CASH FLOW INFORMATION      
Cash paid for interest $ 3,298 $ 2,227 $ 1,101
Cash paid for income taxes 2,518 3,578 1,940
Inventory transferred to equipment on operating leases 223 195 167
Accounts payable related to purchases of property and equipment $ 208 $ 211 $ 165
v3.24.3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Significant Plans Funded Status (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Pensions    
Defined Benefit Plan Disclosure    
Funded (unfunded) status $ 2,003 $ 2,076
Pensions | U.S. Salaried Qualified    
Defined Benefit Plan Disclosure    
Funded (unfunded) status 1,314  
Pensions | U.S. Hourly Qualified    
Defined Benefit Plan Disclosure    
Funded (unfunded) status 1,217  
Pensions | Other    
Defined Benefit Plan Disclosure    
Funded (unfunded) status (528)  
OPEB    
Defined Benefit Plan Disclosure    
Funded (unfunded) status (1,191) $ (1,001)
OPEB | U.S. Salaried    
Defined Benefit Plan Disclosure    
Funded (unfunded) status (1,198)  
OPEB | U.S. Hourly    
Defined Benefit Plan Disclosure    
Funded (unfunded) status 101  
OPEB | Other    
Defined Benefit Plan Disclosure    
Funded (unfunded) status $ (94)  
v3.24.3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic (Benefit) Cost (Details) - USD ($)
$ in Millions
12 Months Ended
Nov. 02, 2025
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Pensions        
Net Periodic (Benefit) Cost        
Service cost   $ 230 $ 246 $ 349
Interest cost   $ 545 $ 533 $ 330
Location of interest cost   Other operating expenses Other operating expenses Other operating expenses
Expected return on plan assets   $ (967) $ (878) $ (726)
Location of expected return on plan assets   Other operating expenses Other operating expenses Other operating expenses
Amortization of actuarial (gain) loss   $ 3 $ (13) $ 132
Location of amortization of actuarial (gain) loss   Other operating expenses Other operating expenses Other operating expenses
Amortization of prior service (credit) cost   $ 40 $ 38 $ 34
Location of amortization of prior service (credit) cost   Other operating expenses Other operating expenses Other operating expenses
Settlements/curtailments   $ 38 $ 37 $ 45
Location of settlements/curtailments   Other operating expenses Other operating expenses Other operating expenses
Net (benefit) cost   $ (111) $ (37) $ 164
Weighted-Average Assumptions:        
Discount rates - service cost (as a percent)   5.80% 5.20% 3.00%
Discount rates - interest cost (as a percent)   5.70% 5.10% 2.60%
Rate of compensation increase (as a percent)   3.80% 3.80% 3.70%
Expected long-term rates of return (as a percent)   7.00% 6.30% 5.10%
Pensions | Forecasted        
Net Periodic (Benefit) Cost        
Net periodic (benefit) increase $ (100)      
Weighted-Average Assumptions:        
Expected long-term rates of return (as a percent) 7.10%      
Pensions | United States        
Net Periodic (Benefit) Cost        
Curtailment   $ 35    
Location of curtailment   Other operating expenses    
Weighted-Average Assumptions:        
Interest crediting rate - U.S. cash balance plans (as a percent)   4.80% 4.30% 2.10%
OPEB        
Net Periodic (Benefit) Cost        
Service cost   $ 17 $ 27 $ 45
Interest cost   $ 174 $ 176 $ 99
Location of interest cost   Other operating expenses Other operating expenses Other operating expenses
Expected return on plan assets   $ (108) $ (117) $ (110)
Location of expected return on plan assets   Other operating expenses Other operating expenses Other operating expenses
Amortization of actuarial (gain) loss   $ (54) $ (59) $ (18)
Location of amortization of actuarial (gain) loss   Other operating expenses Other operating expenses Other operating expenses
Amortization of prior service (credit) cost   $ (4) $ (3) $ (4)
Location of amortization of prior service (credit) cost   Other operating expenses Other operating expenses Other operating expenses
Net (benefit) cost   $ 25 $ 24 $ 12
Weighted-Average Assumptions:        
Discount rates - service cost (as a percent)   6.70% 6.10% 3.60%
Discount rates - interest cost (as a percent)   5.90% 5.40% 2.30%
Expected long-term rates of return (as a percent)   5.60% 5.70% 4.40%
v3.24.3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Benefit Plan Obligations, Funded Status, and Assumptions (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Change in Plan Assets (Fair Value):      
Employer contribution $ 241 $ 228  
Pensions      
Change in Benefit Obligations:      
Beginning of year balance (9,928) (10,529)  
Service cost (230) (246) $ (349)
Interest cost (545) (533) (330)
Actuarial gain (loss) (1,097) 504  
Benefits paid 746 838  
Settlement - benefit obligations   112  
Foreign exchange and other (23) (74)  
End of year balance (11,077) (9,928) (10,529)
Change in Plan Assets (Fair Value):      
Beginning of year balance 12,004 13,219  
Plan assets actual gain (loss) 1,703 (387)  
Employer contribution 96 70  
Benefits paid (746) (838)  
Settlement - plan assets   (112)  
Foreign exchange and other 23 52  
End of year balance 13,080 12,004 13,219
Funded (unfunded) status $ 2,003 $ 2,076  
Weighted-Average Assumptions:      
Discount rates (as a percent) 5.10% 5.90%  
Rate of compensation increase (as a percent) 4.30% 3.80%  
Pensions | United States      
Weighted-Average Assumptions:      
Interest crediting rate - U.S. cash balance plans (as a percent) 4.10% 4.90%  
Pensions | Canada      
Change in Benefit Obligations:      
Settlement - benefit obligations   $ 112  
Change in Plan Assets (Fair Value):      
Settlement - plan assets   (112)  
Net Periodic (Benefit) Cost      
Settlement   $ 36  
Location of settlement   Other Cost and Expense, Operating  
OPEB      
Change in Benefit Obligations:      
Beginning of year balance $ (3,029) $ (3,341)  
Service cost (17) (27) (45)
Interest cost (174) (176) (99)
Actuarial gain (loss) (385) 285  
Benefits paid 263 260  
Health care subsidies (22) (27)  
Foreign exchange and other 2 (3)  
End of year balance (3,362) (3,029) (3,341)
Change in Plan Assets (Fair Value):      
Beginning of year balance 2,028 2,136  
Plan assets actual gain (loss) 259 (8)  
Employer contribution 145 158  
Benefits paid (263) (260)  
Foreign exchange and other 2 2  
End of year balance 2,171 2,028 $ 2,136
Funded (unfunded) status $ (1,191) $ (1,001)  
Weighted-Average Assumptions:      
Discount rates (as a percent) 5.20% 6.00%  
v3.24.3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Health Care Trend Assumptions (Details) - Health Care
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Health Care Cost Trend Rates    
Weighted-average health care cost trend rate, initial year (as a percent) 16.90% 18.70%
Weighted-average health care cost trend rate, second year (as a percent) 11.50% 8.80%
Ultimate weighted-average health care cost trend rate (as a percent) 4.70% 4.70%
Year that weighted-average health care cost trend rate reaches ultimate rate (year) 2033 2034 2032 2033
v3.24.3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Other (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Nov. 25, 2024
Employer Contributions      
Defined benefit plan employer contributions $ 241 $ 228  
Pensions      
Accumulated Benefit Obligations - Additional Disclosures      
Total accumulated benefit obligations for all plans 10,441 9,453  
Plans with Accumulated Benefit Obligation Exceeding Fair Value of Plan Assets      
Accumulated benefit obligations 1,405 1,147  
Fair value of plan assets 920 704  
Plans with Projected Benefit Obligation Exceeding Fair Value of Plan Assets      
Projected benefit obligations 1,541 1,261  
Fair value of plan assets 951 729  
Employer Contributions      
Defined benefit plan employer contributions 96 70  
Expected defined benefit plan employer contributions for next fiscal year 100    
Benefits Expected to be Paid from the Benefit Plans, which Reflect Expected Future Years of Service      
Defined benefit plan, expected future benefit payments, next twelve months 760    
Defined benefit plan, expected future benefit payments, year two 736    
Defined benefit plan, expected future benefit payments, year three 728    
Defined benefit plan, expected future benefit payments, year four 716    
Defined benefit plan, expected future benefit payments, year five 716    
Defined benefit plan, expected future benefit payments, five fiscal years thereafter 3,555    
OPEB      
Employer Contributions      
Defined benefit plan employer contributions 145 $ 158  
Expected defined benefit plan employer contributions for next fiscal year 660    
Benefits Expected to be Paid from the Benefit Plans, which Reflect Expected Future Years of Service      
Defined benefit plan, expected future benefit payments, next twelve months 257    
Defined benefit plan, expected future benefit payments, year two 267    
Defined benefit plan, expected future benefit payments, year three 271    
Defined benefit plan, expected future benefit payments, year four 273    
Defined benefit plan, expected future benefit payments, year five 274    
Defined benefit plan, expected future benefit payments, five fiscal years thereafter $ 1,331    
OPEB | United States | Subsequent Events      
Employer Contributions      
Expected defined benefit plan employer contributions for next fiscal year     $ 520
v3.24.3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Balance Sheet (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Amounts Recognized in the Balance Sheet    
Noncurrent asset $ 2,921 $ 3,007
Deferred compensation - current 28 25
Deferred compensation and other - noncurrent 217 183
Total 2,354 2,140
Pensions and OPEB    
Amounts Recognized in the Balance Sheet    
Less: Current liability 105 99
Less: Noncurrent liability 2,004 1,833
Current liability 105 99
Noncurrent liability 2,004 1,833
Pensions    
Amounts Recognized in Accumulated Other Comprehensive Income - Pretax    
Net actuarial (gain) loss 2,011 1,660
Prior service (credit) cost 329 406
Total 2,340 2,066
Amounts Recognized in the Balance Sheet    
Noncurrent asset 2,593 2,608
Less: Current liability 66 59
Less: Noncurrent liability 524 473
Funded (unfunded) status 2,003 2,076
Current liability 66 59
Noncurrent liability 524 473
OPEB    
Amounts Recognized in Accumulated Other Comprehensive Income - Pretax    
Net actuarial (gain) loss (632) (921)
Prior service (credit) cost 2 (1)
Total (630) (922)
Amounts Recognized in the Balance Sheet    
Noncurrent asset 328 399
Less: Current liability 39 40
Less: Noncurrent liability 1,480 1,360
Funded (unfunded) status (1,191) (1,001)
Current liability 39 40
Noncurrent liability $ 1,480 $ 1,360
v3.24.3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Fair Value of Plan Assets (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Pensions      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets $ 13,080 $ 12,004 $ 13,219
Pensions | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   6,347  
Pensions | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 7,244    
Pensions | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 1,664 1,382  
Pensions | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 5,580 4,947  
Pensions | Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   18  
Pensions | Cash and Short-term Investments | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   513  
Pensions | Cash and Short-term Investments | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 411    
Pensions | Cash and Short-term Investments | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 399 470  
Pensions | Cash and Short-term Investments | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 12 43  
Pensions | Short-term Investments | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 492 362  
Pensions | U.S. Equity Securities | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   342  
Pensions | U.S. Equity Securities | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 451    
Pensions | U.S. Equity Securities | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 440 330  
Pensions | U.S. Equity Securities | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 11 12  
Pensions | U.S. Equity Funds | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 174 92  
Pensions | International Equity Securities and Funds | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   199  
Pensions | International Equity Securities and Funds | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 238    
Pensions | International Equity Securities and Funds | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 232 197  
Pensions | International Equity Securities and Funds | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 6 2  
Pensions | International Equity Funds | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 194 151  
Pensions | Government and Agency Securities | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   1,017  
Pensions | Government and Agency Securities | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 1,250    
Pensions | Government and Agency Securities | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 932 759  
Pensions | Government and Agency Securities | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 318 258  
Pensions | Corporate Debt Securities | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   4,389  
Pensions | Corporate Debt Securities | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 4,956    
Pensions | Corporate Debt Securities | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 4,956 4,389  
Pensions | Mortgage-backed Securities | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   285  
Pensions | Mortgage-backed Securities | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 177    
Pensions | Mortgage-backed Securities | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 177 285  
Pensions | Fixed Income Funds | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 1,649 1,418  
Pensions | Real Estate Funds | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 385 462  
Pensions | Hedge Funds | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 457 491  
Pensions | Private Equity | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   18  
Pensions | Private Equity | Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   18  
Pensions | Private Equity | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 1,219 1,306  
Pensions | Venture Capital | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 1,219 1,341  
Pensions | Derivative Contracts - Assets | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   53  
Pensions | Derivative Contracts - Assets | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 130    
Pensions | Derivative Contracts - Assets | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 7 17  
Pensions | Derivative Contracts - Assets | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 123 36  
Pensions | Derivative Interest Rate Contracts - Liabilities | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   (309)  
Pensions | Derivative Interest Rate Contracts - Liabilities | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (161)    
Pensions | Derivative Interest Rate Contracts - Liabilities | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (119) (215)  
Pensions | Derivative Interest Rate Contracts - Liabilities | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (42) (94)  
Pensions | Receivables, Prepaids, and Payables | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   (137)  
Pensions | Receivables, Prepaids, and Payables | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (171)    
Pensions | Receivables, Prepaids, and Payables | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (171) (137)  
Pensions | Securities Lending Collateral | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   615  
Pensions | Securities Lending Collateral | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 662    
Pensions | Securities Lending Collateral | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 662 615  
Pensions | Securities Lending Liability | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   (615)  
Pensions | Securities Lending Liability | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (662)    
Pensions | Securities Lending Liability | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (662) (615)  
Pensions | Securities Sold Short | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   (73)  
Pensions | Securities Sold Short | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (94)    
Pensions | Securities Sold Short | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (92) (69)  
Pensions | Securities Sold Short | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (2) (4)  
Pensions | Other Investments | Level 1, Level 2, Level 3      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets   50  
Pensions | Other Investments | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 57    
Pensions | Other Investments | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 36 30  
Pensions | Other Investments | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 21 20  
Pensions | Other Investments | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 47 34  
Health Care      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 2,171 2,028  
Health Care | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 1,337 1,325  
Health Care | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 645 677  
Health Care | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 692 648  
Health Care | Cash and Short-term Investments | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 77 76  
Health Care | Cash and Short-term Investments | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 77 76  
Health Care | U.S. Equity Funds | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 163    
Health Care | International Equity Funds | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 84    
Health Care | Government and Agency Securities | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 606 637  
Health Care | Government and Agency Securities | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 561 596  
Health Care | Government and Agency Securities | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 45 41  
Health Care | Corporate Debt Securities | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 551 515  
Health Care | Corporate Debt Securities | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 551 515  
Health Care | Mortgage-backed Securities | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 92 89  
Health Care | Mortgage-backed Securities | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 92 89  
Health Care | Fixed Income Funds | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 348 392  
Health Care | Real Estate Funds | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 77 104  
Health Care | Hedge Funds | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 71 104  
Health Care | Private Equity | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 41 43  
Health Care | Venture Capital | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 41 43  
Health Care | Other Plan Assets | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 11 8  
Health Care | Other Plan Assets | Level 1      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 7 5  
Health Care | Other Plan Assets | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 4 3  
Health Care | Securities Lending Collateral | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 167 122  
Health Care | Securities Lending Collateral | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets 167 122  
Health Care | Securities Lending Liability | Level 1 and 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (167) (122)  
Health Care | Securities Lending Liability | Level 2      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets (167) (122)  
Health Care | Other Investments | Investments at Net Asset Value      
Fair Values of Pension Plan and Health Care Assets by Category      
Total net assets $ 9 $ 17  
v3.24.3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Plan Asset Information (Details)
12 Months Ended
Oct. 27, 2024
Pensions  
Expected Return on Plan Assets  
Market related value period 5 years
Pensions | United States  
Average Annual Return  
Average annual return over past 10 years (as a percent) 7.20%
Average annual return over past 20 years (as a percent) 8.00%
Pensions | Minimum | United States  
Average Annual Return  
Time period for fundamental changes in capital markets affecting return expectations 10 years
Pensions | Maximum | United States  
Average Annual Return  
Time period for fundamental changes in capital markets affecting return expectations 20 years
Pensions | Equity Investments  
Target Asset Allocations, Pension and Health Care Plan Assets  
Target allocation percentage for plan assets 7.00%
Pensions | Debt Investments  
Target Asset Allocations, Pension and Health Care Plan Assets  
Target allocation percentage for plan assets 70.00%
Pensions | Real Estate Investments  
Target Asset Allocations, Pension and Health Care Plan Assets  
Target allocation percentage for plan assets 3.00%
Pensions | Other Investments  
Target Asset Allocations, Pension and Health Care Plan Assets  
Target allocation percentage for plan assets 20.00%
Health Care | Equity Investments  
Target Asset Allocations, Pension and Health Care Plan Assets  
Target allocation percentage for plan assets 12.00%
Health Care | Debt Investments  
Target Asset Allocations, Pension and Health Care Plan Assets  
Target allocation percentage for plan assets 78.00%
Health Care | Real Estate Investments  
Target Asset Allocations, Pension and Health Care Plan Assets  
Target allocation percentage for plan assets 3.00%
Health Care | Other Investments  
Target Asset Allocations, Pension and Health Care Plan Assets  
Target allocation percentage for plan assets 7.00%
v3.24.3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Defined Contributions (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
PENSION AND OTHER POSTRETIREMENT BENEFITS      
Defined contribution plans employer contributions and costs (primarily in the U.S.) $ 326 $ 288 $ 263
v3.24.3
INCOME TAXES - Provision for Income Taxes and Income Before Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Current:      
U.S. - Federal $ 1,253 $ 1,803 $ 514
U.S. - State 257 386 136
Foreign 878 1,472 1,423
Total current 2,388 3,661 2,073
Deferred:      
U.S. - Federal (326) (485) 29
U.S. - State (29) (65) 24
Foreign 61 (240) (119)
Total deferred (294) (790) (66)
Provision for income taxes 2,094 2,871 2,007
Consolidated income before income taxes, U.S. 5,900 7,800 5,000
Consolidated income before income taxes, foreign $ 3,300 $ 5,200 $ 4,100
v3.24.3
INCOME TAXES - Statutory and Effective (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Comparison of the statutory and effective income tax provision      
Federal corporate statutory tax rate (as a percent) 21.00% 21.00% 21.00%
U.S. federal income tax provision at the U.S. statutory rate (21 percent) $ 1,933 $ 2,734 $ 1,917
State and local taxes, net of federal tax effect 179 266 133
Other impacts of Tax Cuts and Jobs Act of 2017 (60) (58) (29)
Rate differential on foreign subsidiaries 89 142 121
Research and business tax credits (99) (107) (65)
Excess tax benefits on equity compensation (35) (49) (55)
Valuation allowances (46) 9 179
Unrecognized tax benefits 70 4 93
Other - net 63 (70) (287)
Provision for income taxes 2,094 $ 2,871 $ 2,007
Accumulated earnings of certain foreign subsidiaries for which no provision for U.S. income or foreign withholding taxes has been made $ 6,000    
Unrecognized Deferred Tax Liability, Determination, Impracticable [true false] true true  
v3.24.3
INCOME TAXES - Deferred Income Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Deferred Tax Assets    
Accrual for employee benefits $ 362 $ 439
Accrual for sales allowances 847 884
Allowance for credit losses 93 79
Amortization of R&D expenditures 925 492
Deferred compensation 52 45
Lessee lease transactions 73 68
OPEB - net 256 193
Share-based compensation 50 38
Tax loss and tax credit carryforwards 1,564 1,518
Unearned revenue 174 177
Other items, assets 337 681
Less: valuation allowances (1,598) (1,612)
Deferred income tax, assets 3,135 3,002
Deferred Tax Liabilities    
Goodwill and other intangible assets 107 166
Lessee lease transactions 69 61
Lessor lease transactions 449 581
Pension - net 394 424
Tax over book depreciation 195 198
Other items, liabilities 313 278
Deferred income tax, liabilities $ 1,527 $ 1,708
v3.24.3
INCOME TAXES - Additional Deferred Income Tax Information (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Additional Deferred Income Tax Information    
Tax loss and tax credit carryforwards $ 1,564 $ 1,518
Tax loss and tax credit carryforwards, expiring from 2025 through 2044 1,063  
Tax loss and tax credit carryforwards with an indefinite carryforward period $ 501  
v3.24.3
INCOME TAXES - Uncertain Tax Positions (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Reconciliation of the Total Amounts of Unrecognized Tax Benefits      
Beginning of year balance $ 907 $ 891 $ 811
Increases to tax positions taken during the current year 59 68 98
Increases to tax positions taken during prior years 68 164 29
Decreases to tax positions taken during the current year (2) (3)  
Decreases to tax positions taken during prior years (99) (209) (18)
Decreases due to lapse of statute of limitations (7) (10) (7)
Other (1) (4) 2
Foreign exchange 3 10 (24)
End of year balance 928 907 $ 891
Unrecognized tax benefits affecting effective tax rate if recognized $ 410 $ 329  
v3.24.3
OTHER INCOME AND OTHER OPERATING EXPENSES (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Other Income      
Gain on previously held equity investment     $ 326
Total $ 51,716 $ 61,251 52,577
Other Operating Expenses      
Depreciation of equipment on operating leases 874 853 827
Extended warranty claims 340 309 267
Cost of services 248 227 214
Pension and OPEB benefit, excluding the service cost component $ (333) $ (286) $ (218)
Location of pension and OPEB benefit (cost), excluding the service cost component Other operating expenses Other operating expenses Other operating expenses
Foreign exchange loss $ 71 $ 122 $ 132
Other 57 67 53
Other operating expenses 1,257 1,292 1,275
Other Income      
Other Income      
Revenues from services 367 312 283
Extended warranty premiums earned 310 312 289
Trademark licensing income 88 95 89
Operating lease disposition gains 19 33 72
Gain on previously held equity investment     326
Investment income 127 29 14
Other 287 222 222
Total $ 1,198 $ 1,003 $ 1,295
v3.24.3
MARKETABLE SECURITIES - Amortized Cost, Fair Value, Purchases, and Proceeds (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Amortized cost and fair value of marketable securities      
Fair Value $ 1,154 $ 946  
Purchases 1,055 491 $ 250
Maturities and sale proceeds 832 186 $ 79
Equity Securities      
Net gain recognized on equity securities 88    
Less: Net gain (loss) on equity securities sold 88 (1)  
Unrealized gain on equity securities   1  
Equity Securities      
Amortized cost and fair value of marketable securities      
Fair Value   222  
International Equity Securities      
Amortized cost and fair value of marketable securities      
Fair Value   3  
International Mutual Funds Securities      
Amortized cost and fair value of marketable securities      
Fair Value   101  
U.S. Equity Funds      
Amortized cost and fair value of marketable securities      
Fair Value   86  
U.S. Fixed Income Fund      
Amortized cost and fair value of marketable securities      
Fair Value   32  
Debt Securities      
Amortized cost and fair value of marketable securities      
Amortized Cost 1,262 862  
Gross Unrealized Gains 2    
Gross Unrealized Losses 110 138  
Fair Value 1,154 724  
Corporate Debt Securities      
Amortized cost and fair value of marketable securities      
Amortized Cost 445 285  
Gross Unrealized Gains 1    
Gross Unrealized Losses 23 41  
Fair Value 423 244  
International Debt Securities      
Amortized cost and fair value of marketable securities      
Amortized Cost 169 5  
Gross Unrealized Losses 26 4  
Fair Value 143 1  
Mortgage-backed Securities      
Amortized cost and fair value of marketable securities      
Amortized Cost 193 225  
Gross Unrealized Losses 28 40  
Fair Value 165 185  
Municipal Debt Securities      
Amortized cost and fair value of marketable securities      
Amortized Cost 78 87  
Gross Unrealized Gains 1    
Gross Unrealized Losses 5 12  
Fair Value 74 75  
U.S. Government Debt Securities      
Amortized cost and fair value of marketable securities      
Amortized Cost 377 260  
Gross Unrealized Losses 28 41  
Fair Value $ 349 $ 219  
v3.24.3
MARKETABLE SECURITIES - Contractual Maturities (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Contractual Maturities of Debt Securities, Amortized Cost      
Amortized cost, due in one year or less $ 28    
Amortized cost, due after one through five years 386    
Amortized cost, due after five through 10 years 456    
Amortized cost, due after 10 years 199    
Amortized cost, mortgage-backed securities 193    
Amortized cost, debt securities 1,262    
Contractual Maturities of Debt Securities, Fair Value      
Fair value, due in one year or less 27    
Fair value, due after one through five years 356    
Fair value, due after five through 10 years 435    
Fair value, due after 10 years 171    
Fair value, mortgage-backed securities 165    
Fair value, debt securities 1,154    
Proceeds from the sales or maturity of debt securities $ 619 $ 37 $ 74
v3.24.3
RECEIVABLES - Trade Accounts and Notes Receivable (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Trade Accounts and Notes Receivable      
Trade accounts and notes receivable - net $ 5,326 $ 7,739  
Provision $ 310 (16) $ 192
Trade Accounts and Notes Receivable | Geographic Concentration Risk | U.S. and Canada      
Trade Accounts and Notes Receivable      
Concentration of credit risk (as a percent) 51.00%    
Trade Accounts and Notes Receivable      
Trade Accounts and Notes Receivable      
Trade accounts and notes receivable - net $ 5,326 7,739  
Trade accounts and notes receivable balances outstanding greater than 12 months 298 107  
Beginning of year balance 35 36 41
Provision 34 7 1
Write-offs (5) (8) (5)
Translation adjustments 2   (1)
End of year balance 66 35 $ 36
Production & Precision Ag (PPA) | Trade Accounts and Notes Receivable      
Trade Accounts and Notes Receivable      
Trade accounts and notes receivable - net 1,532 2,642  
Small Ag & Turf (SAT) | Trade Accounts and Notes Receivable      
Trade Accounts and Notes Receivable      
Trade accounts and notes receivable - net 1,657 2,344  
Construction & Forestry (CF) | Trade Accounts and Notes Receivable      
Trade Accounts and Notes Receivable      
Trade accounts and notes receivable - net $ 2,137 $ 2,753  
v3.24.3
RECEIVABLES - Financing Receivables (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Oct. 31, 2021
Financing receivables        
Allowance for credit losses $ 229 $ 197 $ 325 $ 166
Unrestricted        
Financing receivables        
Financing leases (direct and sales-type) receivables, gross 3,032 2,906    
Total financing receivables 46,365 46,220    
Financing leases (direct and sales-type) - unearned income 307 350    
Total unearned finance income 1,874 2,372    
Allowance for credit losses 182 175    
Financing receivables - net 44,309 43,673    
Securitized        
Financing receivables        
Total financing receivables 8,957 7,494    
Total unearned finance income 187 137    
Allowance for credit losses 47 22    
Financing receivables - net $ 8,723 $ 7,335    
Location of liability for pledged asset Short-term securitization borrowings Short-term securitization borrowings    
Related to Sales of Equipment | Unrestricted        
Financing receivables        
Financing leases (direct and sales-type) receivables, gross $ 295 $ 494    
Total financing receivables 9,893 8,845    
Financing leases (direct and sales-type) - unearned income 47 60    
Total unearned finance income 108 222    
Financing receivables - net $ 9,785 8,623    
Financing Receivable | Geographic Concentration Risk | U.S. and Canada        
Financing Receivables - Other Disclosures        
Concentration of credit risk (as a percent) 89.00%      
Retail Notes | Unrestricted        
Financing receivables        
Financing receivables, gross $ 29,652 31,578    
Unearned finance income 1,467 1,906    
Retail Notes | Securitized        
Financing receivables        
Financing receivables, gross 8,957 7,494    
Unearned finance income 187 137    
Retail Notes | Related to Sales of Equipment | Unrestricted        
Financing receivables        
Financing receivables, gross 647 1,404    
Unearned finance income 37 137    
Retail Notes | Agriculture and Turf | Unrestricted        
Financing receivables        
Financing receivables, gross 25,102 26,955    
Retail Notes | Agriculture and Turf | Securitized        
Financing receivables        
Financing receivables, gross 7,203 6,052    
Retail Notes | Agriculture and Turf | Related to Sales of Equipment | Unrestricted        
Financing receivables        
Financing receivables, gross 376 1,084    
Retail Notes | Construction and Forestry | Unrestricted        
Financing receivables        
Financing receivables, gross 4,550 4,623    
Retail Notes | Construction and Forestry | Securitized        
Financing receivables        
Financing receivables, gross 1,754 1,442    
Retail Notes | Construction and Forestry | Related to Sales of Equipment | Unrestricted        
Financing receivables        
Financing receivables, gross 271 320    
Wholesale Receivables        
Financing receivables        
Allowance for credit losses 2 4 4 7
Wholesale Receivables | Unrestricted        
Financing receivables        
Financing receivables, gross 8,951 6,947    
Unearned finance income 24 25    
Wholesale Receivables | Related to Sales of Equipment | Unrestricted        
Financing receivables        
Financing receivables, gross 8,951 6,947    
Unearned finance income 24 25    
Revolving Charge Accounts        
Financing receivables        
Allowance for credit losses 8 21 $ 22 $ 21
Revolving Charge Accounts | Unrestricted        
Financing receivables        
Financing receivables, gross 4,730 4,789    
Unearned finance income $ 76 $ 91    
v3.24.3
RECEIVABLES - Financing Receivable Installments (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Unrestricted    
Financing receivable installments, due in months:    
Financing receivables, Due in months: 0 - 12 $ 23,872 $ 22,176
Financing receivables, Due in months: 13 - 24 8,187 8,646
Financing receivables, Due in months: 25 -36 6,356 6,692
Financing receivables, Due in months: 37 - 48 4,509 4,844
Financing receivables, Due in months: 49 - 60 2,660 2,920
Financing receivables, Due in months: Thereafter (greater than 60 months) 781 942
Total financing receivables 46,365 46,220
Securitized    
Financing receivable installments, due in months:    
Financing receivables, Due in months: 0 - 12 3,555 2,820
Financing receivables, Due in months: 13 - 24 2,507 2,089
Financing receivables, Due in months: 25 -36 1,702 1,509
Financing receivables, Due in months: 37 - 48 918 824
Financing receivables, Due in months: 49 - 60 266 241
Financing receivables, Due in months: Thereafter (greater than 60 months) 9 11
Total financing receivables $ 8,957 $ 7,494
v3.24.3
RECEIVABLES - Financing Receivables Past Due (Details)
12 Months Ended
Oct. 27, 2024
RECEIVABLES  
Financing Receivable, Practical Expedient, Accrued Interest Exclusion [true false] false
Threshold for past due balances 30 days
Generally the threshold for a financing receivable to be considered non-performing 90 days
Generally the threshold when a receivable is delinquent and the estimated uncollectible amount is written off 120 days
v3.24.3
RECEIVABLES - Retail Notes, Financing Leases, and Revolving Charge Accounts Credit Quality Analysis (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Credit Quality Analysis      
Total $ 53,261 $ 51,205 $ 42,895
Retail Customer Receivables      
Credit Quality Analysis      
2024 and 2023, respectively 17,704 18,340  
2023 and 2022, respectively 10,562 10,705  
2022 and 2021, respectively 6,513 6,421  
2021 and 2020, respectively 3,430 2,791  
2020 and 2019, respectively 1,147 987  
Prior years 324 341  
Revolving charge accounts 4,654 4,698  
Total 44,334 44,283  
Retail Customer Receivables | Agriculture and Turf | 30-59 Days Past Due      
Credit Quality Analysis      
2024 and 2023, respectively 44 62  
2023 and 2022, respectively 101 75  
2022 and 2021, respectively 55 39  
2021 and 2020, respectively 27 21  
2020 and 2019, respectively 11 9  
Prior years 4 3  
Revolving charge accounts 40 29  
Total 282 238  
Retail Customer Receivables | Agriculture and Turf | 60-89 Days Past Due      
Credit Quality Analysis      
2024 and 2023, respectively 22 18  
2023 and 2022, respectively 50 26  
2022 and 2021, respectively 21 18  
2021 and 2020, respectively 10 10  
2020 and 2019, respectively 8 4  
Prior years 2 2  
Revolving charge accounts 13 9  
Total 126 87  
Retail Customer Receivables | Agriculture and Turf | 90 Days or Greater Past Due      
Credit Quality Analysis      
2024 and 2023, respectively 1 2  
2023 and 2022, respectively 1 1  
2022 and 2021, respectively 1 3  
2021 and 2020, respectively 2 3  
Total 5 9  
Retail Customer Receivables | Agriculture and Turf | Current      
Credit Quality Analysis      
2024 and 2023, respectively 14,394 15,191  
2023 and 2022, respectively 8,305 8,430  
2022 and 2021, respectively 5,191 5,120  
2021 and 2020, respectively 2,833 2,334  
2020 and 2019, respectively 992 853  
Prior years 253 280  
Revolving charge accounts 4,465 4,526  
Total 36,433 36,734  
Retail Customer Receivables | Agriculture and Turf | Non-performing      
Credit Quality Analysis      
2024 and 2023, respectively 23 30  
2023 and 2022, respectively 91 78  
2022 and 2021, respectively 76 62  
2021 and 2020, respectively 50 33  
2020 and 2019, respectively 20 22  
Prior years 13 22  
Revolving charge accounts 15 8  
Total 288 255  
Retail Customer Receivables | Construction and Forestry | 30-59 Days Past Due      
Credit Quality Analysis      
2024 and 2023, respectively 54 49  
2023 and 2022, respectively 47 34  
2022 and 2021, respectively 25 27  
2021 and 2020, respectively 10 9  
2020 and 2019, respectively 3 4  
Prior years 2    
Revolving charge accounts 4 4  
Total 145 127  
Retail Customer Receivables | Construction and Forestry | 60-89 Days Past Due      
Credit Quality Analysis      
2024 and 2023, respectively 25 19  
2023 and 2022, respectively 28 14  
2022 and 2021, respectively 10 12  
2021 and 2020, respectively 7 5  
2020 and 2019, respectively 2 2  
Revolving charge accounts 2 2  
Total 74 54  
Retail Customer Receivables | Construction and Forestry | 90 Days or Greater Past Due      
Credit Quality Analysis      
2024 and 2023, respectively 1    
2023 and 2022, respectively 4 6  
2022 and 2021, respectively 3 1  
2021 and 2020, respectively 1    
Prior years   1  
Total 9 8  
Retail Customer Receivables | Construction and Forestry | Current      
Credit Quality Analysis      
2024 and 2023, respectively 3,100 2,927  
2023 and 2022, respectively 1,841 1,961  
2022 and 2021, respectively 1,064 1,084  
2021 and 2020, respectively 458 353  
2020 and 2019, respectively 102 84  
Prior years 45 29  
Revolving charge accounts 114 119  
Total 6,724 6,557  
Retail Customer Receivables | Construction and Forestry | Non-performing      
Credit Quality Analysis      
2024 and 2023, respectively 40 42  
2023 and 2022, respectively 94 80  
2022 and 2021, respectively 67 55  
2021 and 2020, respectively 32 23  
2020 and 2019, respectively 9 9  
Prior years 5 4  
Revolving charge accounts 1 1  
Total $ 248 $ 214  
v3.24.3
RECEIVABLES - Wholesale Receivables Credit Quality Analysis (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Credit Quality Analysis      
Total $ 53,261 $ 51,205 $ 42,895
Wholesale Receivables      
Credit Quality Analysis      
2024 and 2023, respectively 671 654  
2023 and 2022, respectively 175 98  
2022 and 2021, respectively 32 41  
2021 and 2020, respectively 18 4  
2020 and 2019, respectively 1 2  
Prior years 1 236  
Revolving 8,029 5,887  
Total 8,927 6,922 $ 3,273
Wholesale Receivables | Agriculture and Turf | Current      
Credit Quality Analysis      
2024 and 2023, respectively 650 631  
2023 and 2022, respectively 164 93  
2022 and 2021, respectively 29 21  
2021 and 2020, respectively 6 4  
2020 and 2019, respectively 1 1  
Prior years   160  
Revolving 6,718 5,175  
Total 7,568 6,085  
Wholesale Receivables | Agriculture and Turf | Non-performing      
Credit Quality Analysis      
2020 and 2019, respectively   1  
Prior years 1    
Total 1 1  
Wholesale Receivables | Construction and Forestry | Current      
Credit Quality Analysis      
2024 and 2023, respectively 21 23  
2023 and 2022, respectively 11 5  
2022 and 2021, respectively 3 20  
2021 and 2020, respectively 12    
Prior years   76  
Revolving 1,311 712  
Total $ 1,358 $ 836  
v3.24.3
RECEIVABLES - Allowance for Credit Losses (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Allowance:      
Beginning of year balance $ 197 $ 325 $ 166
Provision 314 119  
Provision (credit) subtotal 276 (23) 192
Write-offs (281) (129) (88)
Recoveries 43 43 52
Translation adjustments (6) (19) 3
End of year balance 229 197 325
Financing receivables:      
End of year balance 53,261 51,205 42,895
Brazil      
Allowance:      
Provision reversal for assets held for sale (38)    
Russia      
Allowance:      
Provision reversal for assets held for sale   (142)  
Retail Customer Receivables      
Allowance:      
Write-offs (281)    
Financing receivables:      
End of year balance 44,334 44,283  
Retail Notes & Financing Leases      
Allowance:      
Beginning of year balance 172 299 138
Provision 262 97  
Provision (credit) subtotal 224 (45) 197
Write-offs (186) (84) (61)
Recoveries 13 21 22
Translation adjustments (4) (19) 3
End of year balance 219 172 299
Financing receivables:      
End of year balance 39,680 39,585 35,367
Retail Notes & Financing Leases | Brazil      
Allowance:      
Provision reversal for assets held for sale (38)    
Retail Notes & Financing Leases | Russia      
Allowance:      
Provision reversal for assets held for sale   (142)  
Revolving Charge Accounts      
Allowance:      
Beginning of year balance 21 22 21
Provision 52 22  
Provision (credit) subtotal 52 22 (2)
Write-offs (95) (45) (27)
Recoveries 30 22 30
End of year balance 8 21 22
Financing receivables:      
End of year balance 4,654 4,698 4,255
Wholesale Receivables      
Allowance:      
Beginning of year balance 4 4 7
Provision (credit) subtotal     (3)
Translation adjustments (2)    
End of year balance 2 4 4
Financing receivables:      
End of year balance $ 8,927 $ 6,922 $ 3,273
v3.24.3
RECEIVABLES - Write-offs by Year of Origination (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Write-offs by Year of Origination      
Total $ 281 $ 129 $ 88
Retail Customer Receivables      
Write-offs by Year of Origination      
2024 14    
2023 71    
2022 55    
2021 22    
2020 16    
Prior Years 8    
Revolving Charge Accounts 95    
Total 281    
Retail Customer Receivables | Agriculture and Turf      
Write-offs by Year of Origination      
2024 5    
2023 33    
2022 25    
2021 11    
2020 11    
Prior Years 5    
Revolving Charge Accounts 87    
Total 177    
Retail Customer Receivables | Construction and Forestry      
Write-offs by Year of Origination      
2024 9    
2023 38    
2022 30    
2021 11    
2020 5    
Prior Years 3    
Revolving Charge Accounts 8    
Total $ 104    
v3.24.3
RECEIVABLES - Financing Receivable Analysis Metrics (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
RECEIVABLES    
Past-due amounts (as a percent) 1.20% 1.02%
Non-performing (as a percent) 1.01% 0.92%
Allowance for credit losses (as a percent) 0.43% 0.38%
Deposits held as credit enhancements $ 142 $ 154
v3.24.3
RECEIVABLES - Modifications (Details)
$ in Millions
12 Months Ended
Oct. 27, 2024
USD ($)
Financing Receivables - Modifications  
Amortized cost of modified loans $ 94
Modifications (as a percent) 0.18%
Commitments to provide additional financing to customers whose accounts were modified $ 27
30-59 Days Past Due  
Financing Receivables - Modifications  
Amortized cost of modified loans 1
60-89 Days Past Due  
Financing Receivables - Modifications  
Amortized cost of modified loans 2
Current  
Financing Receivables - Modifications  
Amortized cost of modified loans 78
Non-performing  
Financing Receivables - Modifications  
Amortized cost of modified loans $ 13
Payment Deferrals and Term Extensions  
Financing Receivables - Modifications  
Weighted average payment deferral provided to borrowers experiencing financial difficulty 4 months
Weighted average term extensions provided to borrowers experiencing financial difficulty 7 months
Payment Deferrals  
Financing Receivables - Modifications  
Weighted average payment deferral provided to borrowers experiencing financial difficulty 8 months
Term Extensions  
Financing Receivables - Modifications  
Weighted average term extensions provided to borrowers experiencing financial difficulty 10 months
v3.24.3
RECEIVABLES - Troubled Debt Restructuring (Details)
$ in Millions
12 Months Ended
Oct. 29, 2023
USD ($)
item
Oct. 30, 2022
USD ($)
item
Financing Receivables - Troubled Debt Restructurings    
Number of receivable contracts | item 209 276
Pre-modification balance $ 10 $ 12
Post modification balance $ 9 $ 10
v3.24.3
RECEIVABLES - Other (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Other Receivables    
Taxes receivable $ 1,874 $ 1,626
Collateral on derivatives 254 667
Other receivables 2,545 2,623
Related Party    
Other Receivables    
Other 3 3
Nonrelated Party    
Other Receivables    
Other $ 414 $ 327
v3.24.3
SECURITIZATION OF FINANCING RECEIVABLES (Details) - USD ($)
$ in Millions
Nov. 24, 2024
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Securitization of Financing Receivables        
Other assets   $ 2,906 $ 2,503  
Total Assets   107,320 104,087 $ 90,030
Short-term securitization borrowings   8,431 6,995  
Accrued interest on borrowings - securitization transactions   14 13  
Total liabilities related to restricted securitized assets   $ 8,445 $ 7,008  
Weighted-average interest rates on short-term securitization borrowings (as a percent)   5.00% 4.70%  
Securitized        
Securitization of Financing Receivables        
Financing receivables securitized (retail notes)   $ 8,770 $ 7,357  
Allowance for credit losses   (47) (22)  
Other assets   187 152  
Total Assets   8,910 $ 7,487  
Bank Conduit Facilities Revolving Credit Agreement        
Securitization of Financing Receivables        
Revolving credit agreement capacity   2,000    
Revolving credit agreement securitization borrowings outstanding   $ 1,398    
Bank Conduit Facilities Revolving Credit Agreement | Subsequent Events        
Securitization of Financing Receivables        
Revolving credit agreement capacity $ 2,500      
v3.24.3
SECURITIZATION OF FINANCING RECEIVABLES - Payment Schedule for Short-term Securitization Borrowings (Details) - Short-term securitization borrowings
$ in Millions
Oct. 27, 2024
USD ($)
Securitization of Financing Receivables  
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, 2025 $ 4,036
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, 2026 2,440
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, 2027 1,428
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, 2028 500
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, 2029 37
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, later years $ 4
v3.24.3
INVENTORIES (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
INVENTORIES    
Inventory cost methods us-gaap:CostMethodFifoMember, us-gaap:CostMethodLifoMember us-gaap:CostMethodFifoMember, us-gaap:CostMethodLifoMember
Raw materials and supplies $ 3,486 $ 4,080
Work-in-process 930 1,010
Finished goods and parts 5,364 5,435
Total FIFO value 9,780 10,525
Excess of FIFO over LIFO 2,687 2,365
Inventories $ 7,093 $ 8,160
Percent valued on LIFO basis (as a percent) 54.00% 53.00%
v3.24.3
PROPERTY AND DEPRECIATION - Summary of Property and Equipment (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Summary of property and equipment      
Total property and equipment at cost $ 17,175 $ 15,933  
Less: accumulated depreciation (9,595) (9,054)  
Property and equipment - net 7,580 6,879  
Additions 1,707 1,597 $ 1,197
Depreciation 898 838 $ 806
Land      
Summary of property and equipment      
Total property and equipment at cost $ 390 338  
Buildings and Building Equipment      
Summary of property and equipment      
Weighted-average useful lives 22 years    
Total property and equipment at cost $ 5,168 4,735  
Machinery and Equipment      
Summary of property and equipment      
Weighted-average useful lives 11 years    
Total property and equipment at cost $ 7,125 6,613  
Dies, Patterns, Tools, etc      
Summary of property and equipment      
Weighted-average useful lives 8 years    
Total property and equipment at cost $ 1,797 1,658  
All Other      
Summary of property and equipment      
Weighted-average useful lives 5 years    
Total property and equipment at cost $ 1,382 1,323  
Construction in Progress      
Summary of property and equipment      
Total property and equipment at cost $ 1,313 $ 1,266  
v3.24.3
PROPERTY AND DEPRECIATION - Geographic Areas Property and Equipment (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Geographic Area Information    
Property and equipment $ 7,580 $ 6,879
United States    
Geographic Area Information    
Property and equipment 4,132 3,807
Germany    
Geographic Area Information    
Property and equipment 1,271 1,192
Other Countries    
Geographic Area Information    
Property and equipment $ 2,177 $ 1,880
v3.24.3
GOODWILL AND OTHER INTANGIBLE ASSETS - NET - Goodwill (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Changes in Amounts of Goodwill    
Accumulated goodwill impairment losses $ 0 $ 0
Goodwill - net, beginning balance 3,900 3,687
Acquisitions   81
Translation adjustments and other 59 132
Goodwill - net, ending balance 3,959 3,900
Production & Precision Ag (PPA)    
Changes in Amounts of Goodwill    
Goodwill - net, beginning balance 702 646
Acquisitions   41
Translation adjustments and other (1) 15
Goodwill - net, ending balance 701 702
Small Ag & Turf (SAT)    
Changes in Amounts of Goodwill    
Goodwill - net, beginning balance 363 318
Acquisitions   40
Translation adjustments and other 2 5
Goodwill - net, ending balance 365 363
Construction & Forestry (CF)    
Changes in Amounts of Goodwill    
Goodwill - net, beginning balance 2,835 2,723
Translation adjustments and other 58 112
Goodwill - net, ending balance $ 2,893 $ 2,835
v3.24.3
GOODWILL AND OTHER INTANGIBLE ASSETS - NET - Intangible Assets (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Amortized intangible assets:    
Total at cost $ 1,931 $ 1,888
Total accumulated amortization (932) (755)
Other intangible assets - net 999 1,133
Customer Lists and Relationships    
Amortized intangible assets:    
Total at cost 508 501
Total accumulated amortization (231) (195)
Technology, Patents, Trademarks and Other    
Amortized intangible assets:    
Total at cost 1,423 1,387
Total accumulated amortization $ (701) $ (560)
v3.24.3
GOODWILL AND OTHER INTANGIBLE ASSETS - NET - Amortization Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Other Intangible Assets Amortization      
Actual amortization expense $ 166 $ 169 $ 145
Estimated - 2025 146    
Estimated - 2026 128    
Estimated - 2027 121    
Estimated - 2028 87    
Estimated - 2029 $ 74    
v3.24.3
OTHER ASSETS (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
OTHER ASSETS      
Operating lease asset (Note 24) $ 274 $ 283  
Location of operating lease, right-of-use asset Other Assets Other Assets  
Capitalized software, net $ 504 $ 450  
Investments in unconsolidated affiliates 122 126  
Deferred charges (including prepaids) 412 426  
Derivative assets (Note 26) 357 292  
Prepaid taxes 238 167  
Parts return asset 141 127  
Restricted cash $ 193 $ 162 $ 167
Balance sheet location of restricted cash Other Assets Other Assets Other Assets
Matured lease & repossessed inventory $ 106 $ 59  
Other 559 411  
Other Assets $ 2,906 2,503  
Capitalized software estimated useful life 3 years    
Amortization of capitalized software $ 180 $ 144 $ 117
v3.24.3
SHORT-TERM BORROWINGS (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Short-term borrowings    
Short-term borrowings $ 13,533 $ 17,939
Commercial Paper    
Short-term borrowings    
Short-term borrowings $ 4,008 $ 9,100
Weighted-average interest rates on total short-term borrowings, excluding current maturities of long-term borrowings (as a percent) 4.80% 5.40%
Notes Payable to Banks    
Short-term borrowings    
Short-term borrowings $ 377 $ 483
Weighted-average interest rates on total short-term borrowings, excluding current maturities of long-term borrowings (as a percent) 11.00% 31.60%
Finance Lease Obligations Due Within One Year    
Short-term borrowings    
Short-term borrowings $ 33 $ 25
Long-term Borrowings Due Within One Year    
Short-term borrowings    
Short-term borrowings $ 9,115 $ 8,331
v3.24.3
SHORT-TERM BORROWINGS - Other (Details)
$ in Millions
Oct. 27, 2024
USD ($)
Line of Credit Facility  
Lines of credit available from U.S. and foreign banks $ 10,900
Lines of credit unused 6,500
364-Day Credit Facilities, Expiring Second Quarter of 2025  
Line of Credit Facility  
Lines of credit available from U.S. and foreign banks 5,000
Line of Credit Facilities Expiring, Second Quarter of 2028  
Line of Credit Facility  
Lines of credit available from U.S. and foreign banks 2,750
Line of Credit Facilities Expiring, Second Quarter of 2029  
Line of Credit Facility  
Lines of credit available from U.S. and foreign banks $ 2,750
v3.24.3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Accounts payable:      
Dividends payable $ 405 $ 388  
Operating lease liabilities $ 270 $ 281  
Location of operating lease, liability Accounts payable and accrued expenses Accounts payable and accrued expenses  
Deposits withheld from dealers and merchants $ 152 $ 163  
Other 204 153  
Accrued expenses:      
Employee benefits 1,925 2,152  
Accrued taxes 1,509 1,558  
Product warranties 1,426 1,610 $ 1,427
Dealer sales incentives 996 1,243  
Extended warranty premium 1,179 1,021  
Derivative liabilities 582 1,130  
Unearned revenue (contractual liability) 744 676  
Unearned operating lease revenue 495 451  
Accrued interest 455 434  
Parts return liability 420 392  
Other 1,077 1,005  
Accounts payable and accrued expenses 14,543 16,130  
Eliminations | Trade Accounts and Notes Receivable      
Accrued expenses:      
Dealer sales incentive accruals with a right of set-off against trade receivables 2,121 2,228  
Nonrelated Party      
Accounts payable:      
Trade payables 2,698 3,467  
Related Party      
Accounts payable:      
Trade payables $ 6 $ 6  
v3.24.3
LONG-TERM BORROWINGS (Details)
€ in Millions, $ in Millions
Oct. 27, 2024
USD ($)
Oct. 27, 2024
EUR (€)
Oct. 29, 2023
USD ($)
Oct. 29, 2023
EUR (€)
Long-term borrowings        
Less: debt issuance costs and debt discounts $ (156)   $ (135)  
Total long-term borrowings 43,229   38,477  
Principal Amounts of Long-Term Borrowings Maturing In Next Five Years        
2025 9,112      
2026 8,814      
2027 7,720      
2028 6,379      
2029 6,078      
2.75% Notes Due 2025        
Long-term borrowings        
Long-term borrowings, gross     $ 700  
Debt instrument, stated interest rate     2.75% 2.75%
6.55% Debentures Due 2028        
Long-term borrowings        
Long-term borrowings, gross $ 200   $ 200  
Debt instrument, stated interest rate 6.55% 6.55% 6.55% 6.55%
5.375% Notes Due 2029        
Long-term borrowings        
Long-term borrowings, gross $ 500   $ 500  
Debt instrument, stated interest rate 5.375% 5.375% 5.375% 5.375%
3.10% Notes Due 2030        
Long-term borrowings        
Long-term borrowings, gross $ 700   $ 700  
Debt instrument, stated interest rate 3.10% 3.10% 3.10% 3.10%
8.10% Debentures Due 2030        
Long-term borrowings        
Long-term borrowings, gross $ 250   $ 250  
Debt instrument, stated interest rate 8.10% 8.10% 8.10% 8.10%
7.125% Notes Due 2031        
Long-term borrowings        
Long-term borrowings, gross $ 300   $ 300  
Debt instrument, stated interest rate 7.125% 7.125% 7.125% 7.125%
3.90% Notes Due 2042        
Long-term borrowings        
Long-term borrowings, gross $ 1,250   $ 1,250  
Debt instrument, stated interest rate 3.90% 3.90% 3.90% 3.90%
2.875% Notes Due 2049        
Long-term borrowings        
Long-term borrowings, gross $ 500   $ 500  
Debt instrument, stated interest rate 2.875% 2.875% 2.875% 2.875%
3.75% Notes Due 2050        
Long-term borrowings        
Long-term borrowings, gross $ 850   $ 850  
Debt instrument, stated interest rate 3.75% 3.75% 3.75% 3.75%
1.85% Notes Due 2028        
Long-term borrowings        
Long-term borrowings, gross $ 650   $ 634  
Debt instrument, stated interest rate 1.85% 1.85% 1.85% 1.85%
Principal amount | €   € 600   € 600
2.20% Notes Due 2032        
Long-term borrowings        
Long-term borrowings, gross $ 650   $ 634  
Debt instrument, stated interest rate 2.20% 2.20% 2.20% 2.20%
Principal amount | €   € 600   € 600
1.65% Notes Due 2039        
Long-term borrowings        
Long-term borrowings, gross $ 704   $ 687  
Debt instrument, stated interest rate 1.65% 1.65% 1.65% 1.65%
Principal amount | €   € 650   € 650
Medium-term Notes        
Long-term borrowings        
Long-term borrowings, gross $ 36,566   $ 29,638  
Principal amount $ 37,141   $ 30,902  
Weighted-average Interest Rates (as a percent) 5.20% 5.20% 4.90% 4.90%
Other Notes and Finance Lease Obligations        
Long-term borrowings        
Long-term borrowings, gross $ 265   $ 1,769  
v3.24.3
COMMITMENTS AND CONTINGENCIES - Warranty (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Warranty Liability Reconciliation    
Beginning of year balance $ 1,610 $ 1,427
Warranty claims paid (1,327) (1,181)
New product warranty accruals 1,157 1,347
Foreign exchange (14) 17
End of year balance $ 1,426 $ 1,610
v3.24.3
COMMITMENTS AND CONTINGENCIES - Other (Details)
$ in Millions
12 Months Ended
Oct. 27, 2024
USD ($)
Long Term Purchase Commitments  
Commitments for the construction and acquisition of property and equipment $ 435
Restricted Assets and Other Miscellaneous Contingent Liabilities and Guarantees  
Other miscellaneous contingent liabilities and guarantees 130
Accrued other miscellaneous contingent liabilities and guarantees 30
Other Assets  
Restricted Assets and Other Miscellaneous Contingent Liabilities and Guarantees  
Restricted assets 253
Guarantees, Third-party Receivables  
Guarantee Obligations  
Guarantee obligations maximum exposure $ 141
v3.24.3
COMMITMENTS AND CONTINGENCIES - Commitments to Extend Credit (Details)
$ in Billions
Oct. 27, 2024
USD ($)
Wholesale Receivables  
Commitments to Extend Credit  
Unused commitments to extend credit $ 13.8
Retail Customer Receivables  
Commitments to Extend Credit  
Unused commitments to extend credit $ 33.6
v3.24.3
CAPITAL STOCK (Details)
$ / shares in Units, $ in Millions
12 Months Ended
Oct. 27, 2024
USD ($)
item
$ / shares
shares
Oct. 29, 2023
USD ($)
$ / shares
shares
Oct. 30, 2022
USD ($)
$ / shares
shares
Common stock      
Number of holders of record of the company's $1 par value common stock | item 16,354    
Common stock, authorized (in shares) 1,200,000,000 1,200,000,000  
Common stock, issued (in shares) 536,431,204 536,431,204 536,400,000
Common stock, outstanding (in shares) 271,800,000    
Preferred Shares      
Preferred stock, authorized (in shares) 9,000,000    
Preferred stock, issued (in shares) 0    
Reconciliation of Basic and Diluted Net Income Per Share      
Net Income (Loss) | $ $ 7,100 $ 10,166 $ 7,131
Average shares outstanding 276,000,000 292,200,000 304,500,000
Basic per share (in dollars per share) | $ / shares $ 25.73 $ 34.8 $ 23.42
Diluted Earnings Per Share      
Average shares outstanding 276,000,000 292,200,000 304,500,000
Effect of dilutive stock options and unvested restricted stock units (in shares) 1,100,000 1,400,000 1,800,000
Total potential shares outstanding 277,100,000 293,600,000 306,300,000
Diluted per share (in dollars per share) | $ / shares $ 25.62 $ 34.63 $ 23.28
Shares excluded as antidilutive 300,000 100,000 200,000
December 2022 Plan      
Common stock repurchase plans      
Repurchase of common stock shares, maximum authorization (in dollars) | $ $ 18,000    
Common stock shares remaining to be repurchased under repurchase plan (in dollars) | $ $ 8,900    
Common stock shares remaining to be repurchased under repurchase plan (in shares) 21,900,000    
Price per share (in dollars per share) | $ / shares $ 407.93    
v3.24.3
SHARE-BASED COMPENSATION - Share-based Compensation General Disclosures (Details) - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Share-based Compensation - General Disclosures      
Number of outstanding shares authorized for equity incentive awards 15.0    
Share-based compensation expense $ 208 $ 130 $ 85
Income tax benefits 34 21 17
Stock options and restricted stock units vested 110 $ 84 $ 74
Total unrecognized compensation cost from share-based compensation arrangements $ 110    
Weighted-average period during which unrecognized compensation is expected to be recognized 1 year 6 months    
Stock Options      
Share-based Compensation - General Disclosures      
Expiration period under share-based incentive plans 10 years    
Fair value assumption method used us-gaap:BinomialModelMember    
Stock Options | Minimum      
Share-based Compensation - General Disclosures      
Vesting period under share-based incentive plans 1 year    
Stock Options | Maximum      
Share-based Compensation - General Disclosures      
Vesting period under share-based incentive plans 3 years    
Restricted Stock Units Service-Based | Minimum      
Share-based Compensation - General Disclosures      
Vesting period under share-based incentive plans 1 year    
Restricted Stock Units Service-Based | Maximum      
Share-based Compensation - General Disclosures      
Vesting period under share-based incentive plans 3 years    
Restricted Stock Units Performance/Service-Based      
Share-based Compensation - General Disclosures      
Vesting period under share-based incentive plans 3 years    
Restricted Stock Units Performance/Service-Based | Minimum      
Share-based Compensation - General Disclosures      
Percent of common stock that may be awarded based on metric 0.00%    
Restricted Stock Units Performance/Service-Based | Maximum      
Share-based Compensation - General Disclosures      
Percent of common stock that may be awarded based on metric 200.00%    
Restricted Stock Units Market/Service-Based      
Share-based Compensation - General Disclosures      
Vesting period under share-based incentive plans 3 years    
Fair value assumption method used us-gaap:MonteCarloModelMember    
Restricted Stock Units Market/Service-Based | Minimum      
Share-based Compensation - General Disclosures      
Percent of common stock that may be awarded based on metric 0.00%    
Restricted Stock Units Market/Service-Based | Maximum      
Share-based Compensation - General Disclosures      
Percent of common stock that may be awarded based on metric 200.00%    
v3.24.3
SHARE-BASED COMPENSATION - Stock Option Activity and Assumptions (Details) - Stock Options - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Assumptions Used for the Binomial Lattice Model to Determine the Fair Value of Options      
Fair value assumption method used us-gaap:BinomialModelMember    
Risk-free interest rate, (as a percent) 3.96% 2.68% 1.27%
Expected dividends (as a percent) 1.60% 1.10% 1.20%
Weighted-average volatility (as a percent) 27.00% 33.00% 32.00%
Expected term (in years) 5 years 1 month 6 days 5 years 1 month 6 days 5 years 1 month 6 days
Stock Option Activity - Shares      
Outstanding at beginning of year (in shares) 1.7    
Granted (in shares) 0.2    
Exercised (in shares) (0.4)    
Outstanding at end of year (in shares) 1.5 1.7  
Exercisable at end of year (in shares) 1.1    
Stock Option Activity - Exercise Price, Weighted-averages      
Outstanding, weighted-average exercise price at beginning of year (in dollars per share) $ 190.08    
Granted, weighted-average exercise price (in dollars per share) 377.01    
Exercised, weighted-average exercise price (in dollars per share) 102.85    
Outstanding, weighted-average exercise price at end of year (in dollars per share) 242.41 $ 190.08  
Exercisable, weighted-average exercise price at end of year (in dollars per share) $ 197.53    
Stock Option Activity - Remaining Contractual Term (Years)      
Outstanding at end of year, Remaining Contractual Term 5 years 14 days    
Exercisable at end of year, Remaining Contractual Term 3 years 11 months 15 days    
Stock Option Amounts      
Outstanding at end of year, Aggregate Intrinsic Value $ 249.1    
Exercisable at end of year, Aggregate Intrinsic Value $ 239.6    
Weighted-average grant-date fair value (in dollars per share) $ 98.04 $ 136.46 $ 89.2
Intrinsic value of options exercised $ 125.0 $ 153.0 $ 169.0
Cash received from exercises 44.0 60.0 63.0
Tax benefit from exercises $ 27.0 $ 34.0 $ 39.0
v3.24.3
SHARE-BASED COMPENSATION - Restricted Stock Units Granted (Details) - $ / shares
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Restricted Stock Units Service-Based      
Share-based Awards, Aggregate Disclosures      
Restricted stock units granted, weighted-average fair value (in dollars per unit) $ 377.72 $ 428.35 $ 347.59
Restricted Stock Units Performance/Service-Based      
Share-based Awards, Aggregate Disclosures      
Restricted stock units granted, weighted-average fair value (in dollars per unit) 360.53 $ 424.93 $ 331.47
Restricted Stock Units Market/Service-Based      
Share-based Awards, Aggregate Disclosures      
Restricted stock units granted, weighted-average fair value (in dollars per unit) $ 370.87    
Fair value assumption method used us-gaap:MonteCarloModelMember    
v3.24.3
SHARE-BASED COMPENSATION - Restricted Stock Units Activity (Details) - $ / shares
shares in Thousands
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Restricted Stock Units Service-Based      
Restricted Shares - Shares      
Nonvested at beginning of year (in shares) 310    
Granted (in shares) 383    
Vested (in shares) (196)    
Forfeited (in shares) (26)    
Nonvested at end of year (in shares) 471 310  
Nonvested Restricted Shares - Grant-Date Fair Value, Weighted-averages      
Nonvested weighted-average grant-date fair value, at beginning of year (in dollars per share) $ 348.82    
Granted, weighted-average grant-date fair value (in dollars per share) 377.72 $ 428.35 $ 347.59
Vested, weighted-average grant-date fair value (in dollars per share) 330.73    
Forfeited, weighted-average grant-date fair value (in dollars per share) 375.41    
Nonvested weighted-average grant-date fair value, at end of year (in dollars per share) $ 378.39 $ 348.82  
Restricted Stock Units Performance/Service-Based      
Restricted Shares - Shares      
Nonvested at beginning of year (in shares) 119    
Granted (in shares) 52    
Vested (in shares) (88)    
Performance change (in shares) 44    
Forfeited (in shares) (1)    
Nonvested at end of year (in shares) 126 119  
Nonvested Restricted Shares - Grant-Date Fair Value, Weighted-averages      
Nonvested weighted-average grant-date fair value, at beginning of year (in dollars per share) $ 331.78    
Granted, weighted-average grant-date fair value (in dollars per share) 360.53 $ 424.93 $ 331.47
Vested, weighted-average grant-date fair value (in dollars per share) 245.73    
Performance change, weighted-average grant-date fair value (in dollars per share) 245.73    
Forfeited, weighted-average grant-date fair value (in dollars per share) 360.53    
Nonvested weighted-average grant-date fair value, at end of year (in dollars per share) $ 373.35 $ 331.78  
Restricted Stock Units Market/Service-Based      
Restricted Shares - Shares      
Granted (in shares) 52    
Forfeited (in shares) (1)    
Nonvested at end of year (in shares) 51    
Nonvested Restricted Shares - Grant-Date Fair Value, Weighted-averages      
Granted, weighted-average grant-date fair value (in dollars per share) $ 370.87    
Forfeited, weighted-average grant-date fair value (in dollars per share) 370.87    
Nonvested weighted-average grant-date fair value, at end of year (in dollars per share) $ 370.87    
v3.24.3
OTHER COMPREHENSIVE INCOME ITEMS - After-Tax Components (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Accumulated other comprehensive income (loss)      
Total accumulated other comprehensive income (loss) $ 22,836 $ 21,785  
Accumulated Other Comprehensive Income (Loss)      
Accumulated other comprehensive income (loss)      
Total accumulated other comprehensive income (loss) (3,706) (3,114) $ (3,056)
Retirement Benefits Adjustment      
Accumulated other comprehensive income (loss)      
Total accumulated other comprehensive income (loss) (1,274) (845) (389)
Cumulative Translation Adjustment      
Accumulated other comprehensive income (loss)      
Total accumulated other comprehensive income (loss) (2,286) (2,151) (2,594)
Unrealized Gain (Loss) on Derivatives      
Accumulated other comprehensive income (loss)      
Total accumulated other comprehensive income (loss) (72) (8) 21
Unrealized Loss on Debt Securities      
Accumulated other comprehensive income (loss)      
Total accumulated other comprehensive income (loss) $ (74) $ (110) $ (94)
v3.24.3
OTHER COMPREHENSIVE INCOME ITEMS - Amounts Recorded in and Reclassifications out of (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Other Comprehensive Income (Loss), Before Tax      
Interest expense $ (3,348) $ (2,453) $ (1,062)
Selling, administrative and general expenses 4,840 4,595 3,863
Other operating expenses (1,257) (1,292) (1,275)
Total other comprehensive income (loss), before tax (750) (208) (298)
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Total other comprehensive income (loss), tax (expense) credit 158 150 (219)
Other Comprehensive Income (Loss), After Tax      
Other comprehensive income (loss), net of income taxes (592) (58) (517)
Cumulative Translation Adjustment      
Other Comprehensive Income (Loss), Before Tax      
Other comprehensive income (loss) before reclassification, before tax   424  
Total other comprehensive income (loss), before tax (147) 445 (1,105)
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Other comprehensive income (loss) before reclassification, tax (expense) credit   (2)  
Total other comprehensive income (loss), tax (expense) credit 12 (2) (11)
Other Comprehensive Income (Loss), After Tax      
Other comprehensive income (loss) before reclassification, after tax   422  
Other comprehensive income (loss), net of income taxes (135) 443 (1,116)
Cumulative Translation Adjustment | Reclassification out of Accumulated Other Comprehensive Income (Loss) | Selling, Administrative and General Expenses      
Other Comprehensive Income (Loss), Before Tax      
Selling, administrative and general expenses   10  
Other Comprehensive Income (Loss), After Tax      
Reclassification from accumulated other comprehensive income, after tax   10  
Cumulative Translation Adjustment | Reclassification out of Accumulated Other Comprehensive Income (Loss) | Other Operating Expenses      
Other Comprehensive Income (Loss), Before Tax      
Other operating expenses   11  
Other Comprehensive Income (Loss), After Tax      
Reclassification from accumulated other comprehensive income, after tax   11  
Unrealized Gain (Loss) on Derivatives      
Other Comprehensive Income (Loss), Before Tax      
Other comprehensive income (loss) before reclassification, before tax (10) 25 89
Total other comprehensive income (loss), before tax (81) (37) 80
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Other comprehensive income (loss) before reclassification, tax (expense) credit 2 (5) (19)
Total other comprehensive income (loss), tax (expense) credit 17 8 (17)
Other Comprehensive Income (Loss), After Tax      
Other comprehensive income (loss) before reclassification, after tax (8) 20 70
Other comprehensive income (loss), net of income taxes (64) (29) 63
Unrealized Gain (Loss) on Derivatives | Interest Rate Contracts | Reclassification out of Accumulated Other Comprehensive Income (Loss)      
Other Comprehensive Income (Loss), Before Tax      
Interest expense (71) (62) (9)
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Reclassification from accumulated other comprehensive income, tax (expense) credit 15 13 2
Other Comprehensive Income (Loss), After Tax      
Reclassification from accumulated other comprehensive income, after tax (56) (49) (7)
Unrealized Gain (Loss) on Debt Securities      
Other Comprehensive Income (Loss), Before Tax      
Other comprehensive income (loss) before reclassification, before tax 45 (20) (140)
Total other comprehensive income (loss), before tax 44 (20) (139)
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Other comprehensive income (loss) before reclassification, tax (expense) credit (8) 4 30
Total other comprehensive income (loss), tax (expense) credit (8) 4 30
Other Comprehensive Income (Loss), After Tax      
Other comprehensive income (loss) before reclassification, after tax 37 (16) (110)
Other comprehensive income (loss), net of income taxes 36 (16) (109)
Unrealized Gain (Loss) on Debt Securities | Reclassification out of Accumulated Other Comprehensive Income (Loss)      
Other Comprehensive Income (Loss), Before Tax      
Other income (1)   1
Other Comprehensive Income (Loss), After Tax      
Reclassification from accumulated other comprehensive income, after tax (1)   1
Retirement Benefits Adjustment      
Other Comprehensive Income (Loss), Before Tax      
Total other comprehensive income (loss), before tax (566) (596) 866
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Total other comprehensive income (loss), tax (expense) credit 137 140 (221)
Other Comprehensive Income (Loss), After Tax      
Other comprehensive income (loss), net of income taxes (429) (456) 645
Actuarial (Gain) Loss      
Other Comprehensive Income (Loss), Before Tax      
Other comprehensive income (loss) before reclassification, before tax (568) (589) 1,192
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Other comprehensive income (loss) before reclassification, tax (expense) credit 136 139 (298)
Other Comprehensive Income (Loss), After Tax      
Other comprehensive income (loss) before reclassification, after tax (432) (450) 894
Actuarial (Gain) Loss | Reclassification out of Accumulated Other Comprehensive Income (Loss)      
Other Comprehensive Income (Loss), Before Tax      
Other operating expenses (72) (81) 116
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Reclassification from accumulated other comprehensive income, tax (expense) credit 19 20 (29)
Other Comprehensive Income (Loss), After Tax      
Reclassification from accumulated other comprehensive income, after tax (53) (61) 87
Prior Service (Credit) Cost      
Other Comprehensive Income (Loss), Before Tax      
Other comprehensive income (loss) before reclassification, before tax     (517)
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Other comprehensive income (loss) before reclassification, tax (expense) credit     124
Other Comprehensive Income (Loss), After Tax      
Other comprehensive income (loss) before reclassification, after tax     (393)
Prior Service (Credit) Cost | Reclassification out of Accumulated Other Comprehensive Income (Loss)      
Other Comprehensive Income (Loss), Before Tax      
Other operating expenses 36 37 30
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Reclassification from accumulated other comprehensive income, tax (expense) credit (9) (9) (7)
Other Comprehensive Income (Loss), After Tax      
Reclassification from accumulated other comprehensive income, after tax 27 28 23
Settlements/curtailments | Reclassification out of Accumulated Other Comprehensive Income (Loss)      
Other Comprehensive Income (Loss), Before Tax      
Other operating expenses 38   45
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Reclassification from accumulated other comprehensive income, tax (expense) credit (9)   (11)
Other Comprehensive Income (Loss), After Tax      
Reclassification from accumulated other comprehensive income, after tax $ 29   $ 34
Settlements | Reclassification out of Accumulated Other Comprehensive Income (Loss)      
Other Comprehensive Income (Loss), Before Tax      
Other operating expenses   37  
Other Comprehensive Income (Loss), Tax (Expense) Credit      
Reclassification from accumulated other comprehensive income, tax (expense) credit   (10)  
Other Comprehensive Income (Loss), After Tax      
Reclassification from accumulated other comprehensive income, after tax   $ 27  
v3.24.3
LEASES - Lease Expense By Type - (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Lease Expense by Type      
Operating lease expense $ 133 $ 129 $ 114
Short-term lease expense 38 49 55
Variable lease expense 72 80 74
Finance lease:      
Depreciation expense 34 28 26
Interest on lease liabilities 4 2 1
Total lease expense $ 281 $ 288 $ 270
v3.24.3
LEASES - Lease Right of Use Assets and Liabilities - (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Lessee    
Operating leases - Other assets $ 274 $ 283
Location of operating lease, right-of-use asset Other assets Other assets
Operating leases - Accounts payable and accrued expenses $ 270 $ 281
Location of operating lease, liability Accounts payable and accrued expenses Accounts payable and accrued expenses
Finance leases - Property and equipment - net $ 89 $ 66
Location of finance lease, right-of-use asset Property and equipment - net Property and equipment - net
Finance leases - Short-term borrowings $ 33 $ 25
Location of finance lease, liability, short-term Short-term borrowings Short-term borrowings
Finance leases - Long-term borrowings $ 72 $ 49
Location of finance lease, liability, long-term Long-term borrowings Long-term borrowings
Total finance lease liabilities $ 105 $ 74
Location of finance lease, total liability Short-term borrowings, Long-term borrowings Short-term borrowings, Long-term borrowings
v3.24.3
LEASES - Weighted Average Remaining Lease Term and Discount Rates - (Details)
Oct. 27, 2024
Oct. 29, 2023
Lessee    
Weighted-average remaining lease term - operating leases 7 years 7 years
Weighted-average remaining lease term - finance leases 4 years 4 years
Weighted-average discount rate - operating leases (as a percent) 3.50% 3.10%
Weighted-average discount rate - finance leases (as a percent) 4.30% 3.60%
v3.24.3
LEASES - Lease Payments - (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Operating Leases    
2025 $ 97  
2026 57  
2027 39  
2028 34  
2029 22  
Later years 40  
Total lease payments 289  
Less: imputed interest (19)  
Total operating lease liabilities $ 270 $ 281
Location of operating lease, liability Accounts payable and accrued expenses Accounts payable and accrued expenses
Finance Leases    
2025 $ 38  
2026 30  
2027 22  
2028 13  
2029 6  
Later years 6  
Total lease payments 115  
Less: imputed interest (10)  
Total finance lease liabilities $ 105 $ 74
Location of finance lease, total liability Short-term borrowings, Long-term borrowings Short-term borrowings, Long-term borrowings
v3.24.3
LEASES - Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Cash Paid for Amounts Included in the Measurement of Lease Liabilities      
Operating cash flows for operating leases $ 129 $ 132 $ 127
Operating cash flows for finance leases 4 2 1
Financing cash flows for finance leases 36 31 $ 28
Right of Use Assets Obtained in Exchange for Lease Liabilities      
Operating leases 75 97  
Finance leases $ 67 $ 54  
v3.24.3
LEASES - Lessor Lease Terms (Details)
12 Months Ended
Oct. 27, 2024
Lessor  
Sales-type lease option to purchase the underlying equipment true
Direct financing lease option to purchase the underlying equipment true
Operating lease option to purchase the underlying equipment true
Elected to combine lease and nonlease components true
Elected to report consideration related to sales and value added taxes net of the related tax expense true
v3.24.3
LEASES - Lease Revenues (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
LEASES      
Sales-type and direct finance lease revenues $ 190 $ 165 $ 154
Operating lease revenues 1,403 1,312 1,318
Variable lease revenues 17 16 26
Total lease revenues $ 1,610 $ 1,493 $ 1,498
v3.24.3
LEASES - Sales-type and Direct Financing Lease Receivables (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Sales-type and Direct Financing Lease Receivables    
Total sales-type and direct financing lease receivables $ 2,056 $ 2,126
Guaranteed residual values 921 723
Unguaranteed residual values 55 57
Less unearned finance income (307) (350)
Financing lease receivables 2,725 2,556
Agriculture and Turf    
Sales-type and Direct Financing Lease Receivables    
Total sales-type and direct financing lease receivables 1,022 1,078
Construction and Forestry    
Sales-type and Direct Financing Lease Receivables    
Total sales-type and direct financing lease receivables $ 1,034 $ 1,048
v3.24.3
LEASES - Scheduled Payments on Sales-type and Direct Financing Lease Receivables (Details)
$ in Millions
Oct. 27, 2024
USD ($)
Scheduled Payments on Sales-type and Direct Financing Lease Receivables  
2025 $ 1,598
2026 620
2027 389
2028 213
2029 133
Later years 24
Total $ 2,977
v3.24.3
LEASES - Cost of Equipment on Operating Leases (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Cost of Equipment on Operating Leases      
Equipment on operating leases - gross $ 9,017 $ 8,380  
Less: accumulated depreciation (1,566) (1,463)  
Equipment on operating leases - net 7,451 6,917  
Operating lease residual value 5,227 4,864  
First-loss residual value guarantees 1,393 1,188  
Depreciation expense for equipment on operating leases 874 853 $ 827
Agriculture and Turf      
Cost of Equipment on Operating Leases      
Equipment on operating leases - gross 7,875 7,168  
Construction and Forestry      
Cost of Equipment on Operating Leases      
Equipment on operating leases - gross $ 1,142 $ 1,212  
v3.24.3
LEASES - Lease Payments for Equipment on Operating Leases (Details)
$ in Millions
Oct. 27, 2024
USD ($)
Lease Payments for Equipment on Operating Leases  
2025 $ 1,151
2026 865
2027 534
2028 279
2029 71
Later years 9
Total $ 2,909
v3.24.3
FAIR VALUE MEASUREMENTS - Financial Instruments (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Fair Values of Financial Instruments    
Short-term securitization borrowings $ 8,431 $ 6,995
Unrestricted    
Fair Values of Financial Instruments    
Financing receivables - net 44,309 43,673
Securitized    
Fair Values of Financial Instruments    
Financing receivables - net $ 8,723 $ 7,335
Location of liability for pledged asset Short-term securitization borrowings Short-term securitization borrowings
Level 2    
Fair Values of Financial Instruments    
Short-term securitization borrowings $ 8,453 $ 6,921
Long-term borrowings due within one year 9,079 8,156
Long-term borrowings 42,804 36,873
Level 3 | Unrestricted    
Fair Values of Financial Instruments    
Financing receivables - net 44,336 42,777
Level 3 | Securitized    
Fair Values of Financial Instruments    
Financing receivables - net $ 8,654 $ 7,056
Location of liability for pledged asset Short-term securitization borrowings Short-term securitization borrowings
Carrying Value    
Fair Values of Financial Instruments    
Short-term securitization borrowings $ 8,431 $ 6,995
Long-term borrowings due within one year 9,115 8,331
Long-term borrowings 43,157 38,428
Carrying Value | Unrestricted    
Fair Values of Financial Instruments    
Financing receivables - net 44,309 43,673
Carrying Value | Securitized    
Fair Values of Financial Instruments    
Financing receivables - net $ 8,723 $ 7,335
Location of liability for pledged asset Short-term securitization borrowings Short-term securitization borrowings
v3.24.3
FAIR VALUE MEASUREMENTS - Assets and Liaibilities - Recurring (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities $ 1,154 $ 946
Derivative assets 357 292
Derivative liabilities 582 1,130
International Equity Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities   3
International Mutual Funds Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities   101
Equity Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities   222
U.S. Equity Funds    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities   86
U.S. Fixed Income Fund    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities   32
Corporate Debt Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 423 244
International Debt Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 143 1
Mortgage-backed Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 165 185
Municipal Debt Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 74 75
U.S. Government Debt Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 349 219
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 239 300
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | International Equity Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities   3
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | International Mutual Funds Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities   101
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | U.S. Equity Funds    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities   86
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | U.S. Fixed Income Fund    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities   32
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | U.S. Government Debt Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 239 78
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 915 646
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Other Assets    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Derivative assets 357 292
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Accounts Payable and Accrued Expenses    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Derivative liabilities 582 1,130
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Corporate Debt Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 423 244
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | International Debt Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 143 1
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Mortgage-backed Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 165 185
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Municipal Debt Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 74 75
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | U.S. Government Debt Securities    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Marketable Securities 110 141
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 3 | Accounts Payable and Accrued Expenses    
Assets and Liabilities Measured at Fair Value on a Recurring Basis    
Deferred consideration $ 147 $ 186
v3.24.3
FAIR VALUE MEASUREMENTS - Nonrecurring Level 3 Measurements (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Mar. 27, 2022
Oct. 27, 2024
Oct. 30, 2022
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis      
Assets held for sale   $ 2,944  
Excavator Factories | Deere-branded Excavators, Components, and Service Parts | Minimum      
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis      
Supply agreement period 5 years    
Excavator Factories | Deere-branded Excavators, Components, and Service Parts | Maximum      
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis      
Supply agreement period 30 years    
Fair Value, Nonrecurring Measurements | Level 3      
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis      
Losses, Inventories     $ 19
Losses, Property and equipment - net     $ 41
Location of property and equipment - net impairment     Cost of Revenue
Losses, Other intangible assets - net     $ 28
Location of intangible asset impairment     Cost of sales
Other assets   23  
Losses, Other assets   28  
Assets held for sale   2,944  
Losses, Assets held for sale   $ 97  
v3.24.3
DERIVATIVE INSTRUMENTS - Fair Values (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Fair Values of Derivative Instruments    
Derivative assets $ 357 $ 292
Derivative liabilities 582 1,130
Designated as Hedging Instruments | Cash Flow Hedges | Interest Rate Contracts    
Fair Values of Derivative Instruments    
Notional 2,875 1,500
Derivative assets 3 45
Derivative liabilities 20  
Designated as Hedging Instruments | Fair Value Hedges | Interest Rate Contracts    
Fair Values of Derivative Instruments    
Notional 15,864 12,691
Derivative assets 115  
Derivative liabilities 467 970
Designated as Hedging Instruments | Fair Value Hedges | Cross-Currency Interest Rate Contracts    
Fair Values of Derivative Instruments    
Notional 975  
Derivative assets 31  
Not Designated as Hedging Instruments | Interest Rate Contracts    
Fair Values of Derivative Instruments    
Notional 12,518 13,853
Derivative assets 97 169
Derivative liabilities 75 98
Not Designated as Hedging Instruments | Foreign Exchange Contracts    
Fair Values of Derivative Instruments    
Notional 7,533 8,117
Derivative assets 95 75
Derivative liabilities 20 54
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts    
Fair Values of Derivative Instruments    
Notional 158 176
Derivative assets $ 16 3
Derivative liabilities   $ 8
v3.24.3
DERIVATIVE INSTRUMENTS - Fair Value Hedges (Details) - Fair Value Hedges - Interest Rate Contracts - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Active Hedging Relationships    
Carrying Amount of Hedged Item   $ 11,660
Location of hedged item   Long-term borrowings
Short-term Borrowings    
Active Hedging Relationships    
Carrying Amount of Hedged Item $ 287  
Cumulative Fair Value Hedging Amount (1)  
Discontinued Hedging Relationships    
Carrying Amount of Formerly Hedged Item 1,782 $ 1,814
Cumulative Fair Value Hedging Amount - Discontinued 7 15
Long-term Borrowings    
Active Hedging Relationships    
Carrying Amount of Hedged Item 16,125  
Cumulative Fair Value Hedging Amount (347) (976)
Discontinued Hedging Relationships    
Carrying Amount of Formerly Hedged Item 8,626 7,144
Cumulative Fair Value Hedging Amount - Discontinued $ (228) $ (288)
v3.24.3
DERIVATIVE INSTRUMENTS - Gains (Losses) on Statements of Consolidated Income (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Classification and gains (losses) including accrued interest expense related to derivative instruments      
Not designated as hedges, gains (losses) $ (131) $ 143 $ 466
Interest Rate Contracts      
Classification and gains (losses) including accrued interest expense related to derivative instruments      
Cash flow hedges, recognized in OCI (10) 25 89
Interest Rate Contracts | Net Sales Related to Derivative Instruments      
Classification and gains (losses) including accrued interest expense related to derivative instruments      
Not designated as hedges, gains (losses)   1 53
Interest Rate Contracts | Interest Expense      
Classification and gains (losses) including accrued interest expense related to derivative instruments      
Fair value hedges, gains (losses) 226 (542) (1,144)
Cash flow hedges, reclassified from OCI 71 62 9
Not designated as hedges, gains (losses) (4) 40 81
Foreign Exchange Contracts | Net Sales Related to Derivative Instruments      
Classification and gains (losses) including accrued interest expense related to derivative instruments      
Not designated as hedges, gains (losses) (2) (6) (6)
Foreign Exchange Contracts | Cost of Sales      
Classification and gains (losses) including accrued interest expense related to derivative instruments      
Not designated as hedges, gains (losses) 10 8 (64)
Foreign Exchange Contracts | Other Operating Expense      
Classification and gains (losses) including accrued interest expense related to derivative instruments      
Not designated as hedges, gains (losses) $ (135) $ 100 $ 402
v3.24.3
DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details)
$ in Millions
12 Months Ended
Oct. 27, 2024
USD ($)
Cash Flow Hedges  
Cash flow hedge gain (loss) recorded in OCI expected to be reclassified within twelve months $ (6)
Gains or losses reclassified from OCI to earnings $ 0
v3.24.3
DERIVATIVE INSTRUMENTS - Counterparty Risk and Collateral (Details) - USD ($)
$ in Millions
Oct. 27, 2024
Oct. 29, 2023
Derivative instruments    
Fair value of derivatives with credit-risk-related contingent features in a liability position $ 562 $ 1,076
Cash collateral posted 245 659
Derivative Assets    
Gross amounts recognized 357 292
Netting arrangements (142) (152)
Net amount 215 140
Derivative Liabilities    
Gross amounts recognized 582 1,130
Netting arrangements (142) (152)
Collateral paid (246) (659)
Net amount 194 319
International Futures Market    
Derivative instruments    
Collateral paid to participate in an international futures market $ 8 $ 8
v3.24.3
SEGMENT DATA - Segment Net Sales and Revenues (Details)
$ in Millions
12 Months Ended
Oct. 27, 2024
USD ($)
item
Oct. 29, 2023
USD ($)
Oct. 30, 2022
USD ($)
Operating Segments      
Number of major business segments | item 4    
Net Sales and Revenues      
Net sales and revenues $ 51,716 $ 61,251 $ 52,577
Net Sales      
Net Sales and Revenues      
Net sales and revenues 44,759 55,565 47,917
Other Revenues      
Net Sales and Revenues      
Other revenues 1,175 965 1,035
Production & Precision Ag (PPA)      
Net Sales and Revenues      
Net sales and revenues 21,426 27,287 22,318
Production & Precision Ag (PPA) | Operating Segment | Net Sales      
Net Sales and Revenues      
Net sales 20,834 26,790 22,002
Small Ag & Turf (SAT)      
Net Sales and Revenues      
Net sales and revenues 11,254 14,223 13,569
Small Ag & Turf (SAT) | Operating Segment | Net Sales      
Net Sales and Revenues      
Net sales 10,969 13,980 13,381
Construction & Forestry (CF)      
Net Sales and Revenues      
Net sales and revenues 13,254 15,020 13,065
Construction & Forestry (CF) | Operating Segment | Net Sales      
Net Sales and Revenues      
Net sales 12,956 14,795 12,534
Financial Services (FS)      
Net Sales and Revenues      
Financial revenues 5,782 4,721 3,625
Financial Services (FS) | Operating Segment      
Net Sales and Revenues      
Financial revenues $ 5,782 $ 4,721 $ 3,625
v3.24.3
SEGMENT DATA - Segment Operating Profit (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Operating Profit (Loss)      
Operating profit $ 9,039 $ 12,958 $ 9,508
Interest income 4,344 3,359 2,027
Interest expense (3,348) (2,453) (1,062)
Pension and OPEB benefit, excluding service cost component $ 333 $ 286 $ 218
Location of pension and OPEB benefit (cost), excluding the service cost component Other operating expenses Other operating expenses Other operating expenses
Income taxes $ (2,094) $ (2,871) $ (2,007)
Net Income 7,088 10,155 7,130
Less: Net loss attributable to noncontrolling interests (12) (11) (1)
Net Income Attributable to Deere & Company 7,100 10,166 7,131
Operating Segment | Production & Precision Ag (PPA)      
Operating Profit (Loss)      
Operating profit 4,514 6,996 4,386
Interest income 48 29 22
Interest expense (221) (282) (122)
Operating Segment | Small Ag & Turf (SAT)      
Operating Profit (Loss)      
Operating profit 1,627 2,472 1,949
Interest income 42 35 24
Interest expense (215) (236) (105)
Operating Segment | Construction & Forestry (CF)      
Operating Profit (Loss)      
Operating profit 2,009 2,695 2,014
Interest income 14 13 8
Interest expense (204) (169) (72)
Operating Segment | Financial Services (FS)      
Operating Profit (Loss)      
Operating profit 889 795 1,159
Interest income 4,620 3,731 2,245
Interest expense (3,182) (2,362) (799)
Corporate      
Operating Profit (Loss)      
Interest income 492 559 159
Investment income 68    
Interest expense (396) (411) (390)
Foreign exchange loss from equipment operations' financing activities (81) (114) (103)
Pension and OPEB benefit, excluding service cost component $ 333 $ 286 $ 218
Location of pension and OPEB benefit (cost), excluding the service cost component Other operating expenses Other operating expenses Other operating expenses
Corporate expenses - net $ (273) $ (252) $ (255)
Income taxes (2,094) (2,871) (2,007)
Total $ (1,951) $ (2,803) $ (2,378)
v3.24.3
SEGMENT DATA - Segment Interest Income and Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Operating Segments      
Interest income $ 4,344 $ 3,359 $ 2,027
Interest expense 3,348 2,453 1,062
Operating Segment | Production & Precision Ag (PPA)      
Operating Segments      
Interest income 48 29 22
Interest expense 221 282 122
Operating Segment | Small Ag & Turf (SAT)      
Operating Segments      
Interest income 42 35 24
Interest expense 215 236 105
Operating Segment | Construction & Forestry (CF)      
Operating Segments      
Interest income 14 13 8
Interest expense 204 169 72
Operating Segment | Financial Services (FS)      
Operating Segments      
Interest income 4,620 3,731 2,245
Interest expense 3,182 2,362 799
Corporate      
Operating Segments      
Interest income 492 559 159
Interest expense 396 411 390
Intercompany Eliminations      
Operating Segments      
Interest income (872) (1,008) (431)
Interest expense $ (870) $ (1,007) $ (426)
v3.24.3
SEGMENT DATA - Segment Other Disclosures (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Operating Segments      
Depreciation and amortization expense $ 2,118 $ 2,004 $ 1,895
Identifiable operating assets 107,320 104,087 90,030
Capital additions 1,707 1,597 1,197
Operating Segment | Production & Precision Ag (PPA)      
Operating Segments      
Depreciation and amortization expense 643 581 523
Identifiable operating assets 8,696 8,734 8,414
Capital additions 1,025 896 649
Operating Segment | Small Ag & Turf (SAT)      
Operating Segments      
Depreciation and amortization expense 246 241 236
Identifiable operating assets 4,130 4,348 4,451
Capital additions 327 386 329
Operating Segment | Construction & Forestry (CF)      
Operating Segments      
Depreciation and amortization expense 331 301 282
Identifiable operating assets 7,137 7,139 6,754
Capital additions 352 311 217
Operating Segment | Financial Services (FS)      
Operating Segments      
Depreciation and amortization expense 1,040 1,016 1,050
Identifiable operating assets 73,612 70,732 58,864
Capital additions 3 4 2
Intercompany Eliminations      
Operating Segments      
Depreciation and amortization expense (142) (135) (196)
Corporate      
Operating Segments      
Identifiable operating assets $ 13,745 $ 13,134 $ 11,547
v3.24.3
SUBSEQUENT EVENTS - Quarterly Dividend (Details) - $ / shares
1 Months Ended 12 Months Ended
Dec. 03, 2024
Oct. 27, 2024
Oct. 29, 2023
Oct. 30, 2022
Subsequent Events        
Quarterly dividend declared (in dollars per share)   $ 5.88 $ 5.05 $ 4.36
Subsequent Events | Fourth Quarter 2024 Dividend        
Subsequent Events        
Dividend declared date Dec. 03, 2024      
Quarterly dividend declared (in dollars per share) $ 1.62      
Dividend payable date Feb. 10, 2025      
Stockholders of record date Dec. 31, 2024      
v3.24.3
SUBSEQUENT EVENTS - Securitization Borrowings (Details) - USD ($)
$ in Millions
Nov. 24, 2024
Oct. 27, 2024
Oct. 29, 2023
Subsequent Events      
Securitization borrowings   $ 8,431 $ 6,995
Subsequent Events | Short-term securitization borrowings      
Subsequent Events      
Securitization borrowings $ 725