# Deere & Company (DE) 10-Q SEC filing - Q3 FY2026
- Filed: Aug 27, 2026, 10:03 AM EDT
- Fiscal quarter: Q3 FY2026
- Calendar quarter: Q3 2026
- Accession: 0001104659-26-102213
- OpenCapital page: https://www.opencapital.sh/filings/0001104659-26-102213
- Markdown URL: https://www.opencapital.sh/filings/0001104659-26-102213.md
- Official SEC filing index: https://www.sec.gov/Archives/edgar/data/315189/000110465926102213/0001104659-26-102213-index.htm
## Filing documents
- [10-Q (de-20260802x10q.htm)](https://www.sec.gov/Archives/edgar/data/315189/000110465926102213/de-20260802x10q.htm)
- [EX-10.1 (de-20260802xex10d1.htm)](https://www.sec.gov/Archives/edgar/data/315189/000110465926102213/de-20260802xex10d1.htm)
- [EX-31.1 (de-20260802xex31d1.htm)](https://www.sec.gov/Archives/edgar/data/315189/000110465926102213/de-20260802xex31d1.htm)
- [EX-31.2 (de-20260802xex31d2.htm)](https://www.sec.gov/Archives/edgar/data/315189/000110465926102213/de-20260802xex31d2.htm)
- [EX-32 (de-20260802xex32.htm)](https://www.sec.gov/Archives/edgar/data/315189/000110465926102213/de-20260802xex32.htm)
---
## 10-Q
SEC source: [de-20260802x10q.htm](https://www.sec.gov/Archives/edgar/data/315189/000110465926102213/de-20260802x10q.htm)
**UNITED STATES**
**SECURITIES AND EXCHANGE COMMISSION**
WASHINGTON, D.C. 20549
**FORM** **10-Q**
**(Mark One)**
**☒** **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**
**For the quarterly period ended** **August 2,** **2026**
or
☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**
**For the transition period from ____ to ____**
Commission File Number: 1-4121
**DEERE & COMPANY**
(Exact name of registrant as specified in its charter)
**Delaware**(State or other jurisdiction of incorporation or organization) **36-2382580**(IRS Employer Identification No.)
**One John Deere Place**
**Moline****,** **Illinois** **61265**
(Address of principal executive offices, zip code)
Registrant’s Telephone Number, including area code: **(****309****)** **765-8000**
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbols Name of each exchange on which registered
Common stock, $1 par value DE New York Stock Exchange
6.55% Debentures Due 2028 DE28 New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
At August 2, 2026, 269,625,412 shares of common stock, $1 par value, of the registrant were outstanding.
PART I. FINANCIAL INFORMATION
## Item 1.FINANCIAL STATEMENTS
**DEERE & COMPANY**
### STATEMENTS OF CONSOLIDATED INCOME
**(In millions of dollars and shares except per share amounts) Unaudited**
_For the Three and Nine Months Ended August 2, 2026 and July 27, 2025_
| Line item | Three Months Ended / 2026 | Three Months Ended / 2025 | Nine Months Ended / 2026 | Nine Months Ended / 2025 |
| --- | --- | --- | --- | --- |
| Net Sales and Revenues | | | | |
| Net sales | $10,999 | $10,357 | $30,779 | $28,338 |
| Finance and interest income | 1,353 | 1,426 | 4,011 | 4,233 |
| Other income | 256 | 235 | 799 | 719 |
| Total | 12,608 | 12,018 | 35,589 | 33,290 |
| Costs and Expenses | | | | |
| Cost of sales | 7,939 | 7,570 | 22,486 | 20,215 |
| Research and development expenses | 567 | 556 | 1,704 | 1,631 |
| Selling, administrative and general expenses | 1,220 | 1,217 | 3,401 | 3,387 |
| Interest expense | 710 | 794 | 2,141 | 2,408 |
| Other operating expenses | 290 | 281 | 846 | 817 |
| Total | 10,726 | 10,418 | 30,578 | 28,458 |
| Income of Consolidated Group before Income Taxes | 1,882 | 1,600 | 5,011 | 4,832 |
| Provision for income taxes | 529 | 339 | 1,243 | 905 |
| Income of Consolidated Group | 1,353 | 1,261 | 3,768 | 3,927 |
| Equity in income of unconsolidated affiliates | 24 | 10 | 34 | 11 |
| Net Income | 1,377 | 1,271 | 3,802 | 3,938 |
| Less: Net loss attributable to noncontrolling interests | (2) | (18) | (6) | (24) |
| Net Income Attributable to Deere & Company | $1,379 | $1,289 | $3,808 | $3,962 |
| Per Share Data | | | | |
| Basic | $5.11 | $4.76 | $14.10 | $14.61 |
| Diluted | 5.10 | 4.75 | 14.06 | 14.57 |
| Dividends declared | 1.62 | 1.62 | 4.86 | 4.86 |
| Dividends paid | 1.62 | 1.62 | 4.86 | 4.71 |
| Average Shares Outstanding | | | | |
| Basic | 269.8 | 270.7 | 270.1 | 271.1 |
| Diluted | 270.7 | 271.4 | 270.8 | 271.9 |
See Condensed Notes to Interim Consolidated Financial Statements.
2
**DEERE & COMPANY**
### STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
**(In millions of dollars) Unaudited**
_For the Three and Nine Months Ended August 2, 2026 and July 27, 2025_
| Line item | Three Months Ended / 2026 | Three Months Ended / 2025 | Nine Months Ended / 2026 | Nine Months Ended / 2025 |
| --- | --- | --- | --- | --- |
| Net Income | $1,377 | $1,271 | $3,802 | $3,938 |
| Other Comprehensive Income (Loss), Net of Income Taxes | | | | |
| Retirement benefits adjustment | (1) | (22) | (46) | (17) |
| Cumulative translation adjustment | (202) | 311 | 103 | 611 |
| Unrealized gain (loss) on derivatives | 12 | 8 | 23 | (1) |
| Unrealized gain (loss) on debt securities | (18) | 3 | (24) | 12 |
| Other Comprehensive Income (Loss), Net of Income Taxes | (209) | 300 | 56 | 605 |
| Comprehensive Income | 1,168 | 1,571 | 3,858 | 4,543 |
| Less: Comprehensive loss attributable to noncontrolling interests | (3) | (16) | (6) | (18) |
| Comprehensive Income Attributable to Deere & Company | $1,171 | $1,587 | $3,864 | $4,561 |
See Condensed Notes to Interim Consolidated Financial Statements.
3
| DEERE & COMPANY / CONDENSED CONSOLIDATED BALANCE SHEETS / (In millions of dollars) Unaudited | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Assets | | | |
| Cash and cash equivalents | $8,928 | $8,276 | $8,580 |
| Marketable securities | 1,350 | 1,411 | 1,407 |
| Trade accounts and notes receivable – net | 7,723 | 5,317 | 6,103 |
| Financing receivables – net | 42,860 | 44,575 | 43,930 |
| Financing receivables securitized – net | 6,316 | 6,831 | 7,948 |
| Other receivables | 2,466 | 2,403 | 2,826 |
| Equipment on operating leases – net | 7,400 | 7,600 | 7,512 |
| Inventories | 7,811 | 7,406 | 7,713 |
| Property and equipment – net | 8,006 | 8,079 | 7,713 |
| Goodwill | 4,466 | 4,188 | 4,209 |
| Other intangible assets – net | 940 | 892 | 926 |
| Retirement benefits | 3,541 | 3,273 | 3,182 |
| Deferred income taxes | 2,343 | 2,284 | 2,209 |
| Other assets | 3,457 | 3,461 | 3,559 |
| Total Assets | $107,607 | $105,996 | $107,817 |
| Liabilities and Stockholders’ Equity | | | |
| Liabilities | | | |
| Short-term borrowings | $17,115 | $13,796 | $14,607 |
| Short-term securitization borrowings | 6,095 | 6,596 | 7,610 |
| Accounts payable and accrued expenses | 13,668 | 13,909 | 13,582 |
| Deferred income taxes | 411 | 434 | 489 |
| Long-term borrowings | 40,626 | 43,544 | 44,429 |
| Retirement benefits and other liabilities | 1,651 | 1,710 | 1,836 |
| Total liabilities | 79,566 | 79,989 | 82,553 |
| Commitments and contingencies (Note 17) | | | |
| Redeemable noncontrolling interest | 44 | 51 | 84 |
| Stockholders’ Equity | | | |
| Common stock, $1 par value (issued shares at August 2, 2026 – 536,431,204) | 5,826 | 5,668 | 5,620 |
| Common stock in treasury | (37,029) | (36,362) | (36,361) |
| Retained earnings | 62,169 | 59,676 | 59,023 |
| Accumulated other comprehensive income (loss) | (2,976) | (3,032) | (3,107) |
| Total Deere & Company stockholders’ equity | 27,990 | 25,950 | 25,175 |
| Noncontrolling interests | 7 | 6 | 5 |
| Total stockholders’ equity | 27,997 | 25,956 | 25,180 |
| Total Liabilities and Stockholders’ Equity | $107,607 | $105,996 | $107,817 |
See Condensed Notes to Interim Consolidated Financial Statements.
4
| DEERE & COMPANY / STATEMENTS OF CONSOLIDATED CASH FLOWS / For the Nine Months Ended August 2, 2026 and July 27, 2025 / (In millions of dollars) Unaudited | 2026 | 2025 |
| --- | --- | --- |
| Cash Flows from Operating Activities | | |
| Net income | $3,802 | $3,938 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| Provision for credit losses | 205 | 258 |
| Depreciation and amortization | 1,787 | 1,668 |
| Impairments and other adjustments | | 29 |
| Share-based compensation expense | 116 | 104 |
| Credit for deferred income taxes | (61) | (102) |
| Changes in assets and liabilities: | | |
| Receivables related to sales | (1,252) | (494) |
| Inventories | (443) | (526) |
| Accounts payable and accrued expenses | (266) | (717) |
| Accrued income taxes payable/receivable | (119) | (147) |
| Retirement benefits | (367) | (813) |
| Other | (152) | 266 |
| Net cash provided by operating activities | 3,250 | 3,464 |
| Cash Flows from Investing Activities | | |
| Collections of receivables (excluding receivables related to sales) | 19,922 | 19,712 |
| Proceeds from maturities and sales of marketable securities | 389 | 359 |
| Proceeds from sales of equipment on operating leases | 1,479 | 1,408 |
| Cost of receivables acquired (excluding receivables related to sales) | (19,139) | (18,962) |
| Acquisitions of businesses, net of cash acquired | (455) | (89) |
| Purchases of marketable securities | (361) | (598) |
| Purchases of property and equipment | (716) | (852) |
| Cost of equipment on operating leases acquired | (1,933) | (2,009) |
| Collections of receivables from unconsolidated affiliates | 197 | 334 |
| Collateral on derivatives – net | (63) | 127 |
| Other | (145) | (231) |
| Net cash used for investing activities | (825) | (801) |
| Cash Flows from Financing Activities | | |
| Net proceeds (payments) in short-term borrowings (original maturities three months or less) | 3,205 | (2,060) |
| Proceeds from borrowings issued (original maturities greater than three months) | 5,373 | 10,707 |
| Payments of borrowings (original maturities greater than three months) | (8,338) | (7,743) |
| Repurchases of common stock | (697) | (1,136) |
| Dividends paid | (1,316) | (1,282) |
| Other | (55) | (43) |
| Net cash used for financing activities | (1,828) | (1,557) |
| Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | 20 | 108 |
| Net Increase in Cash, Cash Equivalents, and Restricted Cash | 617 | 1,214 |
| Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 8,533 | 7,633 |
| Cash, Cash Equivalents, and Restricted Cash at End of Period | $9,150 | $8,847 |
| Components of Cash, Cash Equivalents, and Restricted Cash | | |
| Cash and cash equivalents | $8,928 | $8,580 |
| Restricted cash (Other assets) | 222 | 267 |
| Total Cash, Cash Equivalents, and Restricted Cash | $9,150 | $8,847 |
See Condensed Notes to Interim Consolidated Financial Statements.
5
**DEERE & COMPANY**
### STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY
**(In millions of dollars) Unaudited**
_For the Three and Nine Months Ended August 2, 2026 and July 27, 2025_
| Three Months Ended July 27, 2025 | Total / Stockholders’ / Equity / Three Months Ended July 27, 2025 | Total Stockholders’ Equity / Deere & Company Stockholders / Common / Stock | Total Stockholders’ Equity / Deere & Company Stockholders / Treasury / Stock | Total Stockholders’ Equity / Deere & Company Stockholders / Retained / Earnings | Total Stockholders’ Equity / Deere & Company Stockholders / Accumulated / Other / Comprehensive / Income (Loss) | Total Stockholders’ Equity / Noncontrolling / Interests | Redeemable / Noncontrolling / Interest |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Balance April 27, 2025 | $24,295 | $5,565 | $(36,064) | $58,191 | $(3,405) | $8 | $83 |
| Net income (loss) | 1,290 | | | 1,289 | | 1 | (19) |
| Other comprehensive income | 298 | | | | 298 | | 2 |
| Repurchases of common stock | (301) | | (301) | | | | |
| Treasury shares reissued | 4 | | 4 | | | | |
| Dividends declared | (439) | | | (439) | | | |
| Share based awards and other | 33 | 55 | | (18) | | (4) | 18 |
| Balance July 27, 2025 | $25,180 | $5,620 | $(36,361) | $59,023 | $(3,107) | $5 | $84 |
| Nine Months Ended July 27, 2025 | | | | | | | |
| Balance October 27, 2024 | $22,843 | $5,489 | $(35,349) | $56,402 | $(3,706) | $7 | $82 |
| Net income (loss) | 3,963 | | | 3,962 | | 1 | (25) |
| Other comprehensive income | 599 | | | | 599 | | 6 |
| Repurchases of common stock | (1,047) | | (1,047) | | | | |
| Treasury shares reissued | 35 | | 35 | | | | |
| Dividends declared | (1,320) | | | (1,320) | | | |
| Share based awards and other | 107 | 131 | | (21) | | (3) | 21 |
| Balance July 27, 2025 | $25,180 | $5,620 | $(36,361) | $59,023 | $(3,107) | $5 | $84 |
| Three Months Ended August 2, 2026 | | | | | | | |
| Balance May 3, 2026 | $27,413 | $5,777 | $(36,831) | $61,228 | $(2,768) | $7 | $47 |
| Net income (loss) | 1,379 | | | 1,379 | | | (2) |
| Other comprehensive loss | (208) | | | | (208) | | (1) |
| Repurchases of common stock | (199) | | (199) | | | | |
| Treasury shares reissued | 1 | | 1 | | | | |
| Dividends declared | (438) | | | (438) | | | |
| Share based awards and other | 49 | 49 | | | | | |
| Balance August 2, 2026 | $27,997 | $5,826 | $(37,029) | $62,169 | $(2,976) | $7 | $44 |
| Nine Months Ended August 2, 2026 | | | | | | | |
| Balance November 2, 2025 | $25,956 | $5,668 | $(36,362) | $59,676 | $(3,032) | $6 | $51 |
| Net income (loss) | 3,809 | | | 3,808 | | 1 | (7) |
| Other comprehensive income | 56 | | | | 56 | | |
| Repurchases of common stock | (695) | (4) | (691) | | | | |
| Treasury shares reissued | 24 | | 24 | | | | |
| Dividends declared | (1,315) | | | (1,315) | | | |
| Share based awards and other | 162 | 162 | | | | | |
| Balance August 2, 2026 | $27,997 | $5,826 | $(37,029) | $62,169 | $(2,976) | $7 | $44 |
See Condensed Notes to Interim Consolidated Financial Statements.
6
**Condensed Notes to Interim Consolidated Financial Statements (Unaudited)**
**(1)****Organization and Consolidation**
Deere & Company has been developing innovative solutions to help its customers become more profitable for more than 185 years. References to “Deere & Company,” “John Deere,” “Deere,” “we,” “us,” or “our” include our consolidated subsidiaries, unless otherwise stated. We manage our business through the following operating segments: Production & Precision Agriculture (PPA), Small Agriculture & Turf (SAT), Construction & 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.
We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The third quarter ends for fiscal years 2026 and 2025 were August 2, 2026, and July 27, 2025, respectively. Both quarters contained 13 weeks, while both year-to-date periods contained 39 weeks. Fiscal year 2025 contained 53 weeks, with the additional week occurring in the fourth quarter. Unless otherwise stated, references to particular years, quarters, or months refer to our fiscal years generally ending near the end of October and the associated periods in those fiscal years.
All amounts are presented in millions of U.S. dollars, unless otherwise specified. Certain prior period amounts have been reclassified to conform to current period presentation.
**Variable Interest Entities**
We consolidate certain variable interest entities (VIEs) related to retail note securitizations (see Note 10).
We have a 50% ownership interest in Banco John Deere S.A. (BJD), an equity method investment that finances retail and wholesale loans for agricultural, construction, and forestry equipment in Brazil. This investment was established in February 2025 through the sale of 50% ownership of a former subsidiary (see Note 21). BJD is a VIE as we provide funding and are exposed to losses that are disproportionate to our voting rights. However, we are not the primary beneficiary of the VIE because the power over significant activities, including the strategic plan, budget, credit policies, and funding guidelines, is shared among equity holders through an equally represented board of directors.
Financial results of BJD are reported in “Equity in income of unconsolidated affiliates.” The related investment in unconsolidated affiliates is included in “Other assets” on the condensed consolidated balance sheets, while short-term and long-term funding is recorded in receivables from unconsolidated affiliates and included in “Other receivables.”
Our carrying value of receivables from and investments in BJD and maximum exposure to loss were as follows:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Receivables from unconsolidated affiliates – “Other receivables” | $271 | $394 | $516 |
| Investments in unconsolidated affiliates – “Other assets” | 440 | 405 | 395 |
| Carrying value of assets related to VIE | 711 | 799 | 911 |
| Guarantees | 168 | 157 | 153 |
| Maximum exposure to loss | $879 | $956 | $1,064 |
Guarantees primarily include BJD debt related to government funding that existed prior to the deconsolidation of BJD. We did not record a contractual liability related to these guarantees on our condensed consolidated balance sheets.
**(2)****Summary of Significant Accounting Policies and New Accounting PROnouncements**
**Quarterly Financial Statements**
The interim consolidated financial statements of Deere & Company have been prepared by us, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been included. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. It is suggested these interim consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto appearing in our latest Annual Report on Form 10-K. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year.
**Use of Estimates in Financial Statements**
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.
7
**Accounting Pronouncements to be Adopted**
We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance.
In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which provides updated guidance on how to recognize, measure, and present government grants. The ASU will be effective for us beginning with our interim reporting for fiscal year 2030, with early adoption permitted. We are assessing the effect of this update on our consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which provides updated guidance for the capitalization of internal-use software. The ASU will be effective for us beginning with our interim reporting for fiscal year 2029, with early adoption permitted. We are assessing the effect of this update on our consolidated financial statements.
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. In January 2025, the FASB issued ASU 2025-01, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40), which clarifies the effective date of ASU 2024-03. The ASU will be effective for us beginning with our annual reporting for fiscal year 2028 and interim periods thereafter. We are assessing the effect of ASU 2024-03 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 taxes paid both in the U.S. and foreign jurisdictions. The ASU will be effective for us beginning with our annual reporting for fiscal year 2026. The adoption will not have a material impact on our consolidated financial statements.
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, including note disclosures to consolidated financial statements. All other accounting standards issued but not yet adopted were not applicable to us.
No. 2026-02 — Environmental Credits and Environmental Credit Obligations (Topic 818)
No. 2025-12 — Codification Improvements
No. 2025-11 — Interim Reporting (Topic 270): Narrow-Scope Improvements
No. 2025-09 — Derivatives and Hedging (Topic 815): Hedge Accounting Improvements
No. 2025-07 — Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract
No. 2025-05 — Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets
No. 2024-04 — Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments
No. 2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative
8
**(3)****Revenue Recognition**
Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow:
| Three Months Ended August 2, 2026 | PPA | SAT | CF | FS | Total |
| --- | --- | --- | --- | --- | --- |
| Primary geographic markets: | | | | | |
| United States | $1,737 | $1,906 | $2,132 | $1,039 | $6,814 |
| Canada | 331 | 179 | 245 | 192 | 947 |
| Western Europe | 563 | 698 | 558 | 52 | 1,871 |
| Central Europe and CIS | 268 | 112 | 102 | 2 | 484 |
| Latin America | 731 | 156 | 339 | 32 | 1,258 |
| Asia, Africa, Oceania, and Middle East | 470 | 396 | 314 | 54 | 1,234 |
| Total | $4,100 | $3,447 | $3,690 | $1,371 | $12,608 |
| Major product lines: | | | | | |
| Production agriculture | $3,919 | | | | $3,919 |
| Small agriculture | | $2,425 | | | 2,425 |
| Turf | | 875 | | | 875 |
| Construction | | | $1,556 | | 1,556 |
| Compact construction | | | 572 | | 572 |
| Roadbuilding | | | 1,146 | | 1,146 |
| Forestry | | | 283 | | 283 |
| Financial products | 61 | 35 | 23 | $1,371 | 1,490 |
| Other | 120 | 112 | 110 | | 342 |
| Total | $4,100 | $3,447 | $3,690 | $1,371 | $12,608 |
| Revenue recognized: | | | | | |
| At a point in time | $3,979 | $3,390 | $3,632 | $35 | $11,036 |
| Over time | 121 | 57 | 58 | 1,336 | 1,572 |
| Total | $4,100 | $3,447 | $3,690 | $1,371 | $12,608 |
| Nine Months Ended August 2, 2026 | PPA | SAT | CF | FS | Total |
| --- | --- | --- | --- | --- | --- |
| Primary geographic markets: | | | | | |
| United States | $4,975 | $4,845 | $6,027 | $3,126 | $18,973 |
| Canada | 1,216 | 467 | 556 | 573 | 2,812 |
| Western Europe | 1,681 | 2,011 | 1,592 | 158 | 5,442 |
| Central Europe and CIS | 737 | 293 | 283 | 6 | 1,319 |
| Latin America | 2,243 | 379 | 850 | 96 | 3,568 |
| Asia, Africa, Oceania, and Middle East | 1,124 | 1,218 | 971 | 162 | 3,475 |
| Total | $11,976 | $9,213 | $10,279 | $4,121 | $35,589 |
| Major product lines: | | | | | |
| Production agriculture | $11,415 | | | | $11,415 |
| Small agriculture | | $6,291 | | | 6,291 |
| Turf | | 2,514 | | | 2,514 |
| Construction | | | $4,182 | | 4,182 |
| Compact construction | | | 1,693 | | 1,693 |
| Roadbuilding | | | 3,188 | | 3,188 |
| Forestry | | | 846 | | 846 |
| Financial products | 170 | 85 | 57 | $4,121 | 4,433 |
| Other | 391 | 323 | 313 | | 1,027 |
| Total | $11,976 | $9,213 | $10,279 | $4,121 | $35,589 |
| Revenue recognized: | | | | | |
| At a point in time | $11,645 | $9,059 | $10,147 | $105 | $30,956 |
| Over time | 331 | 154 | 132 | 4,016 | 4,633 |
| Total | $11,976 | $9,213 | $10,279 | $4,121 | $35,589 |
9
| Three Months Ended July 27, 2025 | PPA | SAT | CF | FS | Total |
| --- | --- | --- | --- | --- | --- |
| Primary geographic markets: | | | | | |
| United States | $1,684 | $1,537 | $1,687 | $1,100 | $6,008 |
| Canada | 335 | 148 | 222 | 190 | 895 |
| Western Europe | 677 | 757 | 550 | 45 | 2,029 |
| Central Europe and CIS | 301 | 130 | 103 | 2 | 536 |
| Latin America | 1,055 | 124 | 252 | 28 | 1,459 |
| Asia, Africa, Oceania, and Middle East | 332 | 393 | 313 | 53 | 1,091 |
| Total | $4,384 | $3,089 | $3,127 | $1,418 | $12,018 |
| Major product lines: | | | | | |
| Production agriculture | $4,183 | | | | $4,183 |
| Small agriculture | | $2,189 | | | 2,189 |
| Turf | | 760 | | | 760 |
| Construction | | | $1,207 | | 1,207 |
| Compact construction | | | 491 | | 491 |
| Roadbuilding | | | 1,013 | | 1,013 |
| Forestry | | | 292 | | 292 |
| Financial products | 66 | 37 | 23 | $1,418 | 1,544 |
| Other | 135 | 103 | 101 | | 339 |
| Total | $4,384 | $3,089 | $3,127 | $1,418 | $12,018 |
| Revenue recognized: | | | | | |
| At a point in time | $4,270 | $3,032 | $3,085 | $36 | $10,423 |
| Over time | 114 | 57 | 42 | 1,382 | 1,595 |
| Total | $4,384 | $3,089 | $3,127 | $1,418 | $12,018 |
| Nine Months Ended July 27, 2025 | PPA | SAT | CF | FS | Total |
| --- | --- | --- | --- | --- | --- |
| Primary geographic markets: | | | | | |
| United States | $5,752 | $4,112 | $4,517 | $3,257 | $17,638 |
| Canada | 1,345 | 380 | 531 | 549 | 2,805 |
| Western Europe | 1,566 | 1,776 | 1,391 | 132 | 4,865 |
| Central Europe and CIS | 607 | 268 | 261 | 9 | 1,145 |
| Latin America | 2,765 | 320 | 677 | 165 | 3,927 |
| Asia, Africa, Oceania, and Middle East | 849 | 1,086 | 814 | 161 | 2,910 |
| Total | $12,884 | $7,942 | $8,191 | $4,273 | $33,290 |
| Major product lines: | | | | | |
| Production agriculture | $12,321 | | | | $12,321 |
| Small agriculture | | $5,387 | | | 5,387 |
| Turf | | 2,180 | | | 2,180 |
| Construction | | | $3,159 | | 3,159 |
| Compact construction | | | 1,358 | | 1,358 |
| Roadbuilding | | | 2,558 | | 2,558 |
| Forestry | | | 772 | | 772 |
| Financial products | 177 | 95 | 60 | $4,273 | 4,605 |
| Other | 386 | 280 | 284 | | 950 |
| Total | $12,884 | $7,942 | $8,191 | $4,273 | $33,290 |
| Revenue recognized: | | | | | |
| At a point in time | $12,575 | $7,789 | $8,080 | $99 | $28,543 |
| Over time | 309 | 153 | 111 | 4,174 | 4,747 |
| Total | $12,884 | $7,942 | $8,191 | $4,273 | $33,290 |
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We invoice in advance of recognizing the revenue of certain products and 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 $2,120, $2,039, and $2,100 at August 2, 2026, November 2, 2025, and July 27, 2025, 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 $131 and $125 during the three months and $560 and $498 during the nine months ended August 2, 2026, and July 27, 2025, respectively.
The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $1,871 at August 2, 2026. The estimated revenue to be recognized by fiscal year follows: remainder of 2026 – $128, 2027 – $645, 2028 – $455, 2029 – $293, 2030 – $183, 2031 – $101, and later years – $66. 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.
**(4)****Other Comprehensive Income Items**
The after-tax components of accumulated other comprehensive income (loss) follow:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Retirement benefits adjustment | $(1,228) | $(1,182) | $(1,291) |
| Cumulative translation adjustment | (1,650) | (1,753) | (1,681) |
| Unrealized loss on derivatives | (31) | (54) | (73) |
| Unrealized loss on debt securities | (67) | (43) | (62) |
| Accumulated other comprehensive income (loss) | $(2,976) | $(3,032) | $(3,107) |
The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss).
| Three Months Ended August 2, 2026 | Before / Tax / Amount | Tax / (Expense) / Credit | After / Tax / Amount |
| --- | --- | --- | --- |
| Cumulative translation adjustment | $(199) | $(2) | $(201) |
| Unrealized gain (loss) on derivatives: | | | |
| Unrealized hedging gain (loss) | 15 | (3) | 12 |
| Reclassification of realized (gain) loss to Interest expense | 1 | (1) | |
| Net unrealized gain (loss) on derivatives | 16 | (4) | 12 |
| Unrealized gain (loss) on debt securities: | | | |
| Unrealized holding gain (loss) | (23) | 4 | (19) |
| Reclassification of realized (gain) loss to Other income | 1 | | 1 |
| Net unrealized gain (loss) on debt securities | (22) | 4 | (18) |
| Retirement benefits adjustment: | | | |
| Reclassification to Other operating expenses through amortization of: | | | |
| Actuarial (gain) loss | (12) | 3 | (9) |
| Prior service (credit) cost | 10 | (2) | 8 |
| Net unrealized gain (loss) on retirement benefits adjustment | (2) | 1 | (1) |
| Total other comprehensive income (loss) | $(207) | $(1) | $(208) |
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| Nine Months Ended August 2, 2026 | Before / Tax / Amount | Tax / (Expense) / Credit | After / Tax / Amount |
| --- | --- | --- | --- |
| Cumulative translation adjustment: | | | |
| Unrealized translation gain (loss) | $96 | $3 | $99 |
| Reclassification of realized (gain) loss to Other income | 4 | | 4 |
| Net unrealized translation gain (loss) | 100 | 3 | 103 |
| Unrealized gain (loss) on derivatives: | | | |
| Unrealized hedging gain (loss) | 30 | (6) | 24 |
| Reclassification of realized (gain) loss to Interest expense | (1) | | (1) |
| Net unrealized gain (loss) on derivatives | 29 | (6) | 23 |
| Unrealized gain (loss) on debt securities: | | | |
| Unrealized holding gain (loss) | (30) | 5 | (25) |
| Reclassification of realized (gain) loss to Other income | 1 | | 1 |
| Net unrealized gain (loss) on debt securities | (29) | 5 | (24) |
| Retirement benefits adjustment: | | | |
| Net actuarial gain (loss) and prior service credit (cost) | (56) | 14 | (42) |
| Reclassification to Other operating expenses through amortization of: | | | |
| Actuarial (gain) loss | (36) | 9 | (27) |
| Prior service (credit) cost | 30 | (7) | 23 |
| Net unrealized gain (loss) on retirement benefits adjustment | (62) | 16 | (46) |
| Total other comprehensive income (loss) | $38 | $18 | $56 |
| Three Months Ended July 27, 2025 | Before / Tax / Amount | Tax / (Expense) / Credit | After / Tax / Amount |
| --- | --- | --- | --- |
| Cumulative translation adjustment | $311 | $(2) | $309 |
| Unrealized gain (loss) on derivatives: | | | |
| Unrealized hedging gain (loss) | 7 | (1) | 6 |
| Reclassification of realized (gain) loss to Interest expense | 3 | (1) | 2 |
| Net unrealized gain (loss) on derivatives | 10 | (2) | 8 |
| Unrealized gain (loss) on debt securities: | | | |
| Unrealized holding gain (loss) | 4 | (1) | 3 |
| Reclassification of realized (gain) loss to Other income | 1 | (1) | |
| Net unrealized gain (loss) on debt securities | 5 | (2) | 3 |
| Retirement benefits adjustment: | | | |
| Net actuarial gain (loss) | (40) | 10 | (30) |
| Reclassification to Other operating expenses through amortization of: | | | |
| Actuarial (gain) loss | (12) | 3 | (9) |
| Prior service (credit) cost | 9 | (2) | 7 |
| Settlements/curtailment | 13 | (3) | 10 |
| Net unrealized gain (loss) on retirement benefits adjustment | (30) | 8 | (22) |
| Total other comprehensive income (loss) | $296 | $2 | $298 |
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| Nine Months Ended July 27, 2025 | Before / Tax / Amount | Tax / (Expense) / Credit | After / Tax / Amount |
| --- | --- | --- | --- |
| Cumulative translation adjustment | $611 | $(6) | $605 |
| Unrealized gain (loss) on derivatives: | | | |
| Unrealized hedging gain (loss) | 3 | | 3 |
| Reclassification of realized (gain) loss to Interest expense | (5) | 1 | (4) |
| Net unrealized gain (loss) on derivatives | (2) | 1 | (1) |
| Unrealized gain (loss) on debt securities: | | | |
| Unrealized holding gain (loss) | 15 | (5) | 10 |
| Reclassification of realized (gain) loss to Other income | 3 | (1) | 2 |
| Net unrealized gain (loss) on debt securities | 18 | (6) | 12 |
| Retirement benefits adjustment: | | | |
| Net actuarial gain (loss) | (28) | 7 | (21) |
| Reclassification to Other operating expenses through amortization of: | | | |
| Actuarial (gain) loss | (37) | 9 | (28) |
| Prior service (credit) cost | 26 | (6) | 20 |
| Settlements/curtailment | 16 | (4) | 12 |
| Net unrealized gain (loss) on retirement benefits adjustment | (23) | 6 | (17) |
| Total other comprehensive income (loss) | $604 | $(5) | $599 |
**(5)****Earnings Per Share**
A reconciliation of basic and diluted earnings per share attributable to Deere & Company follows in millions, except per share amounts:
| Line item | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 |
| --- | --- | --- | --- | --- |
| Net income attributable to Deere & Company | $1,379 | $1,289 | $3,808 | $3,962 |
| Average shares outstanding | 269.8 | 270.7 | 270.1 | 271.1 |
| Basic earnings per share | $5.11 | $4.76 | $14.10 | $14.61 |
| Average shares outstanding | 269.8 | 270.7 | 270.1 | 271.1 |
| Effect of dilutive stock options and unvested restricted stock units | .9 | .7 | .7 | .8 |
| Total potential shares outstanding | 270.7 | 271.4 | 270.8 | 271.9 |
| Diluted earnings per share | $5.10 | $4.75 | $14.06 | $14.57 |
| Shares excluded as antidilutive | | .2 | .1 | .2 |
**(6)****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 components of net periodic pension and OPEB (benefit) cost excluding the service cost component are included in the line item “Other operating expenses.”
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The components of net periodic pension and OPEB (benefit) cost consisted of the following:
| Line item | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 |
| --- | --- | --- | --- | --- |
| Pensions: | | | | |
| Service cost | $58 | $65 | $174 | $190 |
| Interest cost | 126 | 131 | 376 | 388 |
| Expected return on plan assets | (249) | (256) | (746) | (754) |
| Amortization of actuarial gain | (2) | (1) | (7) | (4) |
| Amortization of prior service cost | 10 | 10 | 34 | 29 |
| Settlements/curtailment | | 13 | | 16 |
| Net benefit | $(57) | $(38) | $(169) | $(135) |
| OPEB: | | | | |
| Service cost | $4 | $4 | $12 | $13 |
| Interest cost | 37 | 39 | 112 | 117 |
| Expected return on plan assets | (41) | (28) | (123) | (83) |
| Amortization of actuarial gain | (10) | (11) | (30) | (33) |
| Amortization of prior service credit | | (1) | | (3) |
| Net (benefit) cost | $(10) | $3 | $(29) | $11 |
During the first nine months of 2026, we contributed and expect to contribute the following amounts to our pension and OPEB plans:
| Line item | Pensions | OPEB |
| --- | --- | --- |
| Contributed | $85 | $119 |
| Expected contributions remainder of the year | 30 | 26 |
**(7)****INCOME TAXES**
The effective tax rate was 28.1% and 21.2% for the third quarter of 2026 and 2025, respectively, and 24.8% and 18.7% for the nine months ended August 2, 2026, and July 27, 2025, respectively. The increase in the 2026 effective tax rates was primarily due to unfavorable discrete items in the three months and nine months ended August 2, 2026, and favorable discrete items in the nine months ended July 27, 2025 (see Note 22 for prior period special tax items).
**(8)****Segment DATA**
Our operations are organized and reported in four business segments: Production & Precision Agriculture, Small Agriculture & Turf, Construction & Forestry, and Financial Services. This presentation is consistent with how the chief operating decision maker, our Chief Executive Officer (CEO), who also serves as the Chairman of the Board, assesses the performance of the segments and makes decisions regarding resource allocations. Each segment has a group president responsible for managing financial performance and executing strategic initiatives.
- *Production & Precision Agriculture – 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.
- *Small Agriculture & Turf – 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.
- *Construction & Forestry – CF* segment defines, develops, and delivers a broad range of machines and technology solutions organized along the earthmoving, forestry, and roadbuilding production systems.
The products and services produced by the segments above are primarily 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.
- *Financial Services – FS* 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 FS segment provides wholesale financing to dealers of the foregoing equipment, finances retail revolving charge accounts, and offers extended equipment warranties.
The CEO evaluates the performance of the business segments based on operating profit, which for FS includes interest income and interest expense, and on identifiable segment operating assets. Segment operating profit and operating assets are measured
14
using accounting policies consistent with those applied in the consolidated financial statements. Because of integrated manufacturing operations and common administrative and marketing support, a substantial number of allocations must be made to determine operating segment data. Intersegment transactions are primarily made between the FS segment and PPA, SAT, and CF segments, and are recognized at current market prices.
Total identifiable assets assigned to the equipment operations operating segments consist of assets actively managed by those segments, including trade receivables, inventories, property and equipment, other intangible assets, and certain other assets. Corporate assets are managed on a consolidated basis, including cash and cash equivalents, retirement benefit net assets, goodwill, and deferred income tax assets. Financial Services assets include cash and cash equivalents, retirement benefits, and deferred income tax assets that are managed by the segment.
Information relating to operations by operating segment was as follows:
| Three Months Ended August 2, 2026 | PPA | SAT | CF | FS | Total |
| --- | --- | --- | --- | --- | --- |
| External net sales | $3,998 | $3,383 | $3,618 | | $10,999 |
| External finance and interest income | 15 | 17 | 9 | $1,253 | 1,294 |
| External other income | 51 | 36 | 52 | 118 | 257 |
| Intersegment income | 41 | 9 | 3 | 134 | 187 |
| Total segment net sales and revenues | 4,105 | 3,445 | 3,682 | 1,505 | 12,737 |
| Cost of sales | (2,829) | (2,381) | (2,740) | | (7,950) |
| Interest expense | | | | (661) | (661) |
| Other segment items* | (749) | (442) | (506) | (573) | (2,270) |
| Segment operating profit | $527 | $622 | $436 | $271 | $1,856 |
| Nine Months Ended August 2, 2026 | PPA | SAT | CF | FS | Total |
| External net sales | $11,664 | $9,036 | $10,079 | | $30,779 |
| External finance and interest income | 37 | 34 | 17 | $3,757 | 3,845 |
| External other income | 168 | 113 | 150 | 364 | 795 |
| Intersegment income | 134 | 26 | 21 | 380 | 561 |
| Total segment net sales and revenues | 12,003 | 9,209 | 10,267 | 4,501 | 35,980 |
| Cost of sales | (8,405) | (6,391) | (7,722) | | (22,518) |
| Interest expense | | | | (1,973) | (1,973) |
| Other segment items* | (2,226) | (1,280) | (1,411) | (1,705) | (6,622) |
| Segment operating profit | $1,372 | $1,538 | $1,134 | $823 | $4,867 |
| Three Months Ended July 27, 2025 | PPA | SAT | CF | FS | Total |
| External net sales | $4,273 | $3,025 | $3,059 | | $10,357 |
| External finance and interest income | 12 | 14 | 4 | $1,321 | 1,351 |
| External other income | 52 | 35 | 47 | 97 | 231 |
| Intersegment income | 42 | 8 | 2 | 126 | 178 |
| Total segment net sales and revenues | 4,379 | 3,082 | 3,112 | 1,544 | 12,117 |
| Cost of sales | (3,010) | (2,135) | (2,433) | | (7,578) |
| Interest expense | | | | (720) | (720) |
| Other segment items* | (789) | (462) | (442) | (558) | (2,251) |
| Segment operating profit | $580 | $485 | $237 | $266 | $1,568 |
| Nine Months Ended July 27, 2025 | PPA | SAT | CF | FS | Total |
| External net sales | $12,571 | $7,767 | $8,000 | | $28,338 |
| External finance and interest income | 29 | 29 | 9 | $3,960 | 4,027 |
| External other income | 157 | 101 | 137 | 313 | 708 |
| Intersegment income | 147 | 24 | 4 | 345 | 520 |
| Total segment net sales and revenues | 12,904 | 7,921 | 8,150 | 4,618 | 33,593 |
| Cost of sales | (8,573) | (5,477) | (6,189) | | (20,239) |
| Interest expense | | | | (2,206) | (2,206) |
| Other segment items* | (2,265) | (1,262) | (1,280) | (1,672) | (6,479) |
| Segment operating profit | $2,066 | $1,182 | $681 | $740 | $4,669 |
* Other segment items for PPA, SAT, and CF include selling, administrative and general expenses; advertising; engineering; research and development; equity in income (loss) of unconsolidated affiliates; and other miscellaneous operating expenses. Financial Services other segment items include selling, administrative and general expenses; foreign exchange gains and losses; equity in income (loss) of unconsolidated affiliates; and other miscellaneous operating expenses.
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A reconciliation of segment net sales and revenues and segment operating profit to consolidated net sales and revenues and consolidated net income follows:
| Line item | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 |
| --- | --- | --- | --- | --- |
| Reconciliation of net sales and revenues | | | | |
| Segment net sales and revenues | $12,737 | $12,117 | $35,980 | $33,593 |
| External other income* | 58 | 79 | 170 | 217 |
| Elimination of intersegment revenues | (187) | (178) | (561) | (520) |
| Net sales and revenues | $12,608 | $12,018 | $35,589 | $33,290 |
| Reconciliation of net income | | | | |
| Segment operating profit | $1,856 | $1,568 | $4,867 | $4,669 |
| Interest income – excluding FS | 108 | 103 | 290 | 283 |
| Interest expense – excluding FS | (99) | (102) | (294) | (282) |
| Pension and OPEB benefit, excluding service cost component | 129 | 104 | 384 | 327 |
| Corporate other – net** | (88) | (63) | (202) | (154) |
| Income taxes | (529) | (339) | (1,243) | (905) |
| Net income | $1,377 | $1,271 | $3,802 | $3,938 |
* External other income includes corporate investment income, corporate interest income, and other miscellaneous revenue items that are included in “Finance and interest income” and “Other income” on the statements of consolidated income.
** Corporate other – net includes certain foreign exchange gains and losses, certain investment income, and certain corporate administrative and general expenses.
Additional operating segment information was as follows:
| Line item | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 |
| --- | --- | --- | --- | --- |
| Depreciation* and amortization expense | | | | |
| PPA | $174 | $164 | $512 | $498 |
| SAT | 76 | 67 | 227 | 199 |
| CF | 103 | 91 | 303 | 268 |
| FS | 275 | 275 | 821 | 804 |
| Intersegment | (25) | (33) | (76) | (101) |
| Total | $603 | $564 | $1,787 | $1,668 |
| Capital additions | | | | |
| PPA | $142 | $143 | $315 | $342 |
| SAT | 74 | 79 | 154 | 152 |
| CF | 87 | 100 | 208 | 253 |
| FS | 2 | 2 | 2 | 2 |
| Total | $305 | $324 | $679 | $749 |
* Depreciation includes depreciation for equipment on operating leases.
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| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Total Assets | | | |
| PPA | $8,682 | $8,787 | $8,902 |
| SAT | 4,239 | 3,987 | 4,008 |
| CF | 8,410 | 7,792 | 7,846 |
| FS | 70,300 | 70,021 | 71,722 |
| Corporate* | 15,976 | 15,409 | 15,339 |
| Total Assets | $107,607 | $105,996 | $107,817 |
| Equity investment in unconsolidated affiliates | | | |
| PPA | $10 | $11 | $11 |
| SAT | 38 | 37 | 58 |
| CF | | | |
| FS | 502 | 462 | 451 |
| Total | $550 | $510 | $520 |
* Corporate assets are managed on a consolidated basis, including cash and cash equivalents, retirement benefit net assets, goodwill, and deferred income tax assets.
**(9)****Financing Receivables**
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.
The credit quality and aging analysis of retail notes, financing leases, and revolving charge accounts (collectively, retail customer receivables) by year of origination was as follows:
_August 2, 2026_
| Line item | 2026 | 2025 | 2024 | 2023 | 2022 | Prior Years | Revolving Charge Accounts | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Retail customer receivables: | | | | | | | | |
| Agriculture and turf | | | | | | | | |
| Current | $8,188 | $8,647 | $5,970 | $3,499 | $1,788 | $626 | $4,975 | $33,693 |
| 30-59 days past due | 34 | 78 | 65 | 39 | 18 | 8 | 34 | 276 |
| 60-89 days past due | 9 | 36 | 31 | 16 | 7 | 3 | 10 | 112 |
| 90+ days past due | 1 | 1 | 1 | 1 | | | | 4 |
| Non-performing | 15 | 121 | 122 | 87 | 43 | 26 | 13 | 427 |
| Construction and forestry | | | | | | | | |
| Current | 2,462 | 2,338 | 1,346 | 577 | 198 | 31 | 121 | 7,073 |
| 30-59 days past due | 38 | 60 | 32 | 21 | 7 | 2 | 5 | 165 |
| 60-89 days past due | 27 | 26 | 17 | 12 | 3 | 1 | 1 | 87 |
| 90+ days past due | | 1 | 3 | | 3 | | | 7 |
| Non-performing | 21 | 70 | 92 | 61 | 23 | 15 | 1 | 283 |
| Total retail customer receivables | $10,795 | $11,378 | $7,679 | $4,313 | $2,090 | $712 | $5,160 | $42,127 |
| Write-offs for the nine months ended August 2, 2026: | | | | | | | | |
| Agriculture and turf | $1 | $22 | $26 | $19 | $8 | $5 | $78 | $159 |
| Construction and forestry | 4 | 23 | 21 | 16 | 5 | 11 | 5 | 85 |
| Total | $5 | $45 | $47 | $35 | $13 | $16 | $83 | $244 |
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_November 2, 2025_
| Line item | 2025 | 2024 | 2023 | 2022 | 2021 | Prior Years | Revolving Charge Accounts | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Retail customer receivables: | | | | | | | | |
| Agriculture and turf | | | | | | | | |
| Current | $12,380 | $8,389 | $5,228 | $3,003 | $1,310 | $281 | $4,608 | $35,199 |
| 30-59 days past due | 36 | 73 | 59 | 38 | 15 | 7 | 37 | 265 |
| 60-89 days past due | 14 | 37 | 28 | 13 | 8 | 2 | 10 | 112 |
| 90+ days past due | 1 | 2 | | 1 | 2 | | | 6 |
| Non-performing | 41 | 109 | 98 | 57 | 30 | 17 | 14 | 366 |
| Construction and forestry | | | | | | | | |
| Current | 3,175 | 2,038 | 1,034 | 463 | 130 | 12 | 124 | 6,976 |
| 30-59 days past due | 42 | 47 | 31 | 12 | 4 | 1 | 5 | 142 |
| 60-89 days past due | 21 | 17 | 12 | 8 | 1 | 1 | 2 | 62 |
| 90+ days past due | 1 | 6 | 3 | 2 | | 1 | | 13 |
| Non-performing | 31 | 94 | 78 | 38 | 19 | 7 | 1 | 268 |
| Total retail customer receivables | $15,742 | $10,812 | $6,571 | $3,635 | $1,519 | $329 | $4,801 | $43,409 |
| Write-offs for the twelve months ended November 2, 2025: | | | | | | | | |
| Agriculture and turf | $6 | $32 | $34 | $21 | $9 | $7 | $102 | $211 |
| Construction and forestry | 9 | 38 | 29 | 12 | 3 | 3 | 7 | 101 |
| Total | $15 | $70 | $63 | $33 | $12 | $10 | $109 | $312 |
_July 27, 2025_
| Line item | 2025 | 2024 | 2023 | 2022 | 2021 | Prior Years | Revolving Charge Accounts | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Retail customer receivables: | | | | | | | | |
| Agriculture and turf | | | | | | | | |
| Current | $8,633 | $9,774 | $6,044 | $3,554 | $1,669 | $483 | $4,632 | $34,789 |
| 30-59 days past due | 47 | 92 | 65 | 34 | 18 | 6 | 44 | 306 |
| 60-89 days past due | 19 | 52 | 31 | 22 | 9 | 3 | 12 | 148 |
| 90+ days past due | | 5 | 1 | 1 | 2 | | | 9 |
| Non-performing | 13 | 116 | 120 | 70 | 41 | 23 | 14 | 397 |
| Construction and forestry | | | | | | | | |
| Current | 2,288 | 2,304 | 1,236 | 592 | 195 | 26 | 114 | 6,755 |
| 30-59 days past due | 36 | 72 | 43 | 19 | 7 | 2 | 4 | 183 |
| 60-89 days past due | 18 | 28 | 18 | 6 | 3 | 2 | 2 | 77 |
| 90+ days past due | | 6 | | 2 | | 1 | | 9 |
| Non-performing | 20 | 96 | 88 | 48 | 23 | 9 | 2 | 286 |
| Total retail customer receivables | $11,074 | $12,545 | $7,646 | $4,348 | $1,967 | $555 | $4,824 | $42,959 |
| Write-offs for the nine months ended July 27, 2025: | | | | | | | | |
| Agriculture and turf | $3 | $25 | $28 | $16 | $5 | $5 | $97 | $179 |
| Construction and forestry | 3 | 30 | 25 | 9 | 2 | 2 | 5 | 76 |
| Total | $6 | $55 | $53 | $25 | $7 | $7 | $102 | $255 |
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The credit quality and aging analysis of wholesale receivables was as follows:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Wholesale receivables: | | | |
| Agriculture and turf | | | |
| Current | $5,880 | $6,731 | $7,617 |
| 30+ days past due | | | |
| Non-performing | 4 | | 1 |
| Construction and forestry | | | |
| Current | 1,433 | 1,524 | 1,559 |
| 30+ days past due | | | |
| Non-performing | | | |
| Total wholesale receivables | $7,317 | $8,255 | $9,177 |
An analysis of the allowance for credit losses and investment in financing receivables follows:
| Three Months Ended August 2, 2026 | Retail Notes / & Financing / Leases | Revolving / Charge / Accounts | Wholesale / Receivables | Total |
| --- | --- | --- | --- | --- |
| Allowance: | | | | |
| Beginning of period balance | $257 | $8 | $2 | $267 |
| Provision | 57 | 23 | | 80 |
| Write-offs | (59) | (35) | | (94) |
| Recoveries | 4 | 12 | | 16 |
| Translation adjustments | (1) | | | (1) |
| End of period balance | $258 | $8 | $2 | $268 |
| Nine Months Ended August 2, 2026 | | | | |
| Allowance: | | | | |
| Beginning of period balance | $249 | $7 | $2 | $258 |
| Provision | 158 | 49 | | 207 |
| Write-offs | (161) | (83) | | (244) |
| Recoveries | 13 | 35 | | 48 |
| Translation adjustments | (1) | | | (1) |
| End of period balance | $258 | $8 | $2 | $268 |
| Financing receivables: | | | | |
| End of period balance | $36,967 | $5,160 | $7,317 | $49,444 |
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| Three Months Ended July 27, 2025 | Retail Notes / & Financing / Leases | Revolving / Charge / Accounts | Wholesale / Receivables | Total |
| --- | --- | --- | --- | --- |
| Allowance: | | | | |
| Beginning of period balance | $243 | $13 | $2 | $258 |
| Provision | 49 | 33 | | 82 |
| Write-offs | (49) | (49) | | (98) |
| Recoveries | 5 | 11 | | 16 |
| End of period balance | $248 | $8 | $2 | $258 |
| Nine Months Ended July 27, 2025 | | | | |
| Allowance: | | | | |
| Beginning of period balance | $219 | $8 | $2 | $229 |
| Provision | 171 | 74 | | 245 |
| Write-offs | (153) | (102) | | (255) |
| Recoveries | 11 | 28 | | 39 |
| End of period balance | $248 | $8 | $2 | $258 |
| Financing receivables: | | | | |
| End of period balance | $38,135 | $4,824 | $9,177 | $52,136 |
The allowance for credit losses on retail notes and financing lease receivables remained relatively flat in the third quarter of 2026 and increased slightly in the first nine months of 2026, due to higher expected losses on construction retail accounts. In 2025, the allowance for credit losses remained relatively flat in the third quarter and increased in the first nine months, primarily due to higher expected losses on agriculture and turf customer accounts as a result of elevated delinquencies and a decline in market conditions.
**Modifications**
We occasionally grant contractual modifications to customers experiencing financial difficulties. Before offering a modification, we generally evaluate the ability of the customer to meet the modified payment terms. Finance charges continue to accrue during the deferral or extension period except for modifications related to bankruptcy or similar 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.
The ending amortized cost of financing receivables modified with borrowers experiencing financial difficulty was as follows:
| Line item | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 |
| --- | --- | --- | --- | --- |
| Modified financing receivables | $46 | $45 | $155 | $115 |
| Percent of financing receivables portfolio | 0.09% | 0.09% | 0.31% | 0.22% |
Modifications offered include payment deferrals, term extensions, or a combination thereof. The weighted-average effects for contract modifications were as follows in months:
| Line item | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 |
| --- | --- | --- |
| Payment deferral | 6 | 7 |
| Term extension | 11 | 11 |
| Combination modifications: | | |
| Payment deferral | 9 | 5 |
| Term extension | 18 | 8 |
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We continue to monitor the performance of financing receivables that are modified with borrowers experiencing financial difficulty. The ending amortized cost and performance of financing receivables modified during the prior twelve months ended August 2, 2026, and July 27, 2025, were as follows:
| Line item | August 2 / 2026 | July 27 / 2025 |
| --- | --- | --- |
| Current | $170 | $116 |
| 30-59 days past due | 5 | 5 |
| 60-89 days past due | 3 | 5 |
| 90+ days past due | | 2 |
| Non-performing | 23 | 14 |
| Total | $201 | $142 |
Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the three months and the nine months ended August 2, 2026. In addition, at August 2, 2026, commitments to provide additional financing to these customers were not significant.
**(10)** **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 secured borrowings. The receivables and borrowings remain on our balance sheet and are separately reported as “Financing receivables securitized – net” and “Short-term securitization borrowings,” respectively. SPEs are consolidated as VIEs when we have the power to direct the activities that most significantly impact the SPEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the SPEs.
The components of the securitization programs were as follows:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Financing receivables securitized (retail notes) | $6,355 | $6,872 | $7,996 |
| Allowance for credit losses | (39) | (41) | (48) |
| Other assets (primarily restricted cash) | 156 | 171 | 175 |
| Total restricted securitized assets | $6,472 | $7,002 | $8,123 |
| Short-term securitization borrowings | $6,095 | $6,596 | $7,610 |
| Accrued interest on borrowings | 12 | 15 | 11 |
| Total liabilities related to restricted securitized assets | $6,107 | $6,611 | $7,621 |
**(11)****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:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Raw materials and supplies | $3,627 | $3,402 | $3,350 |
| Work-in-process | 1,008 | 956 | 1,139 |
| Finished goods and parts | 5,768 | 5,769 | 6,088 |
| Total FIFO value | 10,403 | 10,127 | 10,577 |
| Excess of FIFO over LIFO | 2,592 | 2,721 | 2,864 |
| Inventories | $7,811 | $7,406 | $7,713 |
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**(12)****Goodwill and Other Intangible Assets – Net**
The changes in amounts of goodwill by operating segments were as follows:
| Line item | PPA | SAT | CF | Total |
| --- | --- | --- | --- | --- |
| Goodwill at October 27, 2024 | $701 | $365 | $2,893 | $3,959 |
| Acquisitions (Note 21) | 32 | | 12 | 44 |
| Translation adjustments | 16 | 6 | 184 | 206 |
| Goodwill at July 27, 2025 | $749 | $371 | $3,089 | $4,209 |
| Goodwill at November 2, 2025 | $744 | $393 | $3,051 | $4,188 |
| Acquisitions (Note 21) | | | 286 | 286 |
| Translation adjustments | 1 | | (9) | (8) |
| Goodwill at August 2, 2026 | $745 | $393 | $3,328 | $4,466 |
The components of other intangible assets were as follows:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Customer lists and relationships | $551 | $482 | $486 |
| Technology, patents, trademarks, and other | 1,585 | 1,518 | 1,526 |
| Total at cost | 2,136 | 2,000 | 2,012 |
| Less accumulated amortization: | | | |
| Customer lists and relationships | (282) | (260) | (255) |
| Technology, patents, trademarks, and other | (914) | (848) | (831) |
| Total accumulated amortization | (1,196) | (1,108) | (1,086) |
| Other intangible assets – net | $940 | $892 | $926 |
The amortization expense of other intangible assets in the third quarter and the first nine months of 2026 was $40 and $110, respectively, and for the third quarter and the first nine months of 2025 was $31 and $110, respectively. The estimated amortization expense for the next five years is as follows: remainder of 2026 – $38, 2027 – $157, 2028 – $125, 2029 – $106, 2030 – $88, and 2031 – $76.
**(13)****Short-Term Borrowings**
Short-term borrowings were as follows:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Commercial paper | $6,777 | $4,218 | $5,322 |
| Notes payable to banks | 636 | 651 | 694 |
| Finance lease obligations due within one year | 43 | 39 | 41 |
| Long-term borrowings due within one year | 9,659 | 8,888 | 8,550 |
| Short-term borrowings | $17,115 | $13,796 | $14,607 |
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**(14)****Accounts Payable and Accrued Expenses**
Accounts payable and accrued expenses consisted of the following:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Accounts payable: | | | |
| Trade payables | $3,255 | $2,985 | $2,718 |
| Dividends payable | 443 | 443 | 443 |
| Operating lease liabilities | 344 | 314 | 285 |
| Deposits withheld from dealers and merchants | 132 | 143 | 137 |
| Payables to unconsolidated affiliates | 26 | 10 | 5 |
| Other | 192 | 191 | 215 |
| Accrued expenses: | | | |
| Employee benefits | 1,142 | 1,577 | 1,356 |
| Product warranties | 1,333 | 1,259 | 1,273 |
| Accrued taxes | 1,007 | 1,155 | 1,331 |
| Extended warranty premium | 1,229 | 1,202 | 1,226 |
| Dealer sales incentives | 641 | 828 | 659 |
| Unearned revenue (contractual liability) | 891 | 837 | 874 |
| Unearned operating lease revenue | 514 | 534 | 517 |
| Accrued interest | 491 | 524 | 474 |
| Derivative liabilities | 528 | 389 | 517 |
| Parts return liability | 434 | 445 | 423 |
| Other | 1,066 | 1,073 | 1,129 |
| Accounts payable and accrued expenses | $13,668 | $13,909 | $13,582 |
Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $2,198 at August 2, 2026, $1,892 at November 2, 2025, and $2,268 at July 27, 2025. Other eliminations were made for accrued taxes and other accrued expenses.
**(15)****Long-Term Borrowings**
Long-term borrowings were as follows in millions:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Underwritten term debt: | | | |
| U.S. dollar notes and debentures: | | | |
| 6.55% debentures due 2028 | $200 | $200 | $200 |
| 5.375% notes due 2029 | 500 | 500 | 500 |
| 3.10% notes due 2030 | 700 | 700 | 700 |
| 8.10% debentures due 2030 | 250 | 250 | 250 |
| 4.15% notes due 2030* | 485 | 498 | |
| 7.125% notes due 2031 | 300 | 300 | 300 |
| 4.85% notes due 2031* | 298 | | |
| 5.45% notes due 2035 | 1,250 | 1,250 | 1,250 |
| 3.90% notes due 2042 | 1,250 | 1,250 | 1,250 |
| 2.875% notes due 2049 | 500 | 500 | 500 |
| 3.75% notes due 2050 | 850 | 850 | 850 |
| 5.70% notes due 2055 | 750 | 750 | 750 |
| Euro notes: | | | |
| 1.85% notes due 2028 (€600 principal) | 692 | 694 | 705 |
| 2.20% notes due 2032 (€600 principal) | 692 | 694 | 705 |
| 1.65% notes due 2039 (€650 principal) | 749 | 752 | 764 |
| Serial issuances: | | | |
| Medium-term notes* | 30,716 | 34,041 | 35,428 |
| Other notes and finance lease obligations | 584 | 470 | 438 |
| Less: debt issuance costs and debt discounts | (140) | (155) | (161) |
| Long-term borrowings | $40,626 | $43,544 | $44,429 |
* Includes fair value hedge adjustments related to derivatives.
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The 4.15% notes due 2030 and 4.85% notes due 2031 listed above were issued on October 9, 2025, and July 15, 2026, respectively, by Deere Funding Canada Corporation (DFCC), an indirect wholly-owned finance subsidiary of Deere & Company. These notes are fully and unconditionally guaranteed on a senior unsecured basis only by Deere & Company and, therefore, rank equally with all our outstanding notes and debentures. No other subsidiaries of Deere & Company have guaranteed these notes. We have elected to exclude summarized financial information in accordance with the exception provided in Rule 13-01 of Regulation S-X.
Medium-term notes due through 2034 are primarily 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 of the 4.15% notes due 2030, 4.85% notes due 2031, and medium-term notes were as follows:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| 4.15% notes due 2030 | $500 | $500 | |
| 4.85% notes due 2031 | 300 | | |
| Medium-term notes | 31,191 | 34,241 | $35,699 |
**(16)****Leases – 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.”
Lease revenues earned by us follow:
| Line item | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 |
| --- | --- | --- | --- | --- |
| Sales-type and direct finance lease revenues | $44 | $46 | $132 | $137 |
| Operating lease revenues | 377 | 374 | 1,125 | 1,091 |
| Variable lease revenues | 5 | 5 | 16 | 14 |
| Total lease revenues | $426 | $425 | $1,273 | $1,242 |
**(17)****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:
| Line item | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 |
| --- | --- | --- | --- | --- |
| Beginning of period balance | $1,336 | $1,297 | $1,259 | $1,426 |
| Warranty claims paid | (333) | (336) | (926) | (954) |
| New product warranty accruals | 335 | 303 | 995 | 786 |
| Foreign exchange | (5) | 9 | 5 | 15 |
| End of period balance | $1,333 | $1,273 | $1,333 | $1,273 |
The costs for extended warranty programs are recognized as incurred.
In certain international markets, we provide guarantees to banks for the retail financing of John Deere equipment. As of August 2, 2026, the notional value of these guarantees was $145. We may repossess the equipment collateralizing the receivables. At August 2, 2026, the accrued losses under these guarantees were not material. We also had guarantees to a VIE (see Note 1) totaling $168 at August 2, 2026.
We also had other miscellaneous contingent liabilities and guarantees totaling approximately $115 at August 2, 2026. The accrued liability for these contingencies was $25 at August 2, 2026.
At August 2, 2026, we had commitments of approximately $580 for the construction and acquisition of property and equipment. Also, at August 2, 2026, we had restricted assets of $286, classified as “Other assets,” which includes restricted cash primarily related to securitization of financing receivables (see Note 10) and cash that is legally restricted as to withdrawal or usage.
24
We are subject to various unresolved legal actions. The accrued losses on unresolved legal matters were not material at August 2, 2026. We believe the reasonably possible range of losses, if any, for unresolved legal actions would not have a material effect on our consolidated financial statements. The most prevalent legal claims that we face relate to product liability (including asbestos-related liability), employment, patent, trademark, and antitrust matters.
**(18)****FAIR VALUE MEASUREMENTS**
The fair values of financial instruments that do not approximate the carrying values are presented in the table below. Long-term borrowings exclude finance lease liabilities.
| Line item | August 2, 2026 / Carrying Value | August 2, 2026 / Fair Value | November 2, 2025 / Carrying Value | November 2, 2025 / Fair Value | July 27, 2025 / Carrying Value | July 27, 2025 / Fair Value |
| --- | --- | --- | --- | --- | --- | --- |
| Financing receivables – net | $42,860 | $42,793 | $44,575 | $44,779 | $43,930 | $44,036 |
| Financing receivables securitized – net | 6,316 | 6,293 | 6,831 | 6,855 | 7,948 | 7,928 |
| Receivables from unconsolidated affiliates | 271 | 272 | 392 | 400 | 515 | 522 |
| Short-term securitization borrowings | 6,095 | 6,103 | 6,596 | 6,631 | 7,610 | 7,637 |
| Long-term borrowings due within one year | 9,659 | 9,698 | 8,888 | 8,911 | 8,550 | 8,556 |
| Long-term borrowings | 40,549 | 39,916 | 43,471 | 43,527 | 44,358 | 44,034 |
Fair value measurements above were Level 3 for all receivables and Level 2 for all borrowings.
Fair values of the financing receivables and receivables from unconsolidated affiliates 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 or at current market interest rates. The fair values of the remaining financing receivables approximated the carrying amounts. At August 2, 2026, November 2, 2025, and July 27, 2025, we had $39, $60, and $62, respectively, marketable securities classified as held-to-maturity Level 2 international corporate debt securities. We record held-to-maturity marketable securities at amortized cost, which approximates fair value.
Fair values of long-term borrowings and short-term securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates. Certain long-term borrowings have been swapped to current variable interest rates. The carrying values of these long-term borrowings include adjustments related to fair value hedges.
Assets and liabilities measured at fair value on a recurring basis, excluding our cash equivalents, which were carried at a cost that approximates fair value and consist of money market funds and time deposits, and excluding our held-to-maturity marketable securities, are as follows:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Level 1: | | | |
| Marketable securities | | | |
| U.S. government debt securities | $251 | $196 | $229 |
| Total Level 1 marketable securities | 251 | 196 | 229 |
| Level 2: | | | |
| Marketable securities | | | |
| International fixed income fund | 8 | 7 | 7 |
| Corporate debt securities | 501 | 510 | 477 |
| International debt securities | 127 | 174 | 195 |
| Mortgage-backed securities | 209 | 234 | 223 |
| Municipal debt securities | 105 | 113 | 102 |
| U.S. government debt securities | 110 | 117 | 112 |
| Total Level 2 marketable securities | 1,060 | 1,155 | 1,116 |
| Other assets – Derivatives | 207 | 393 | 370 |
| Accounts payable and accrued expenses – Derivatives | 528 | 389 | 517 |
| Level 3: | | | |
| Accounts payable and accrued expenses – Deferred consideration | 94 | 113 | 121 |
The mortgage-backed securities are primarily issued by U.S. government sponsored enterprises.
25
The contractual maturities of available-for-sale debt securities at August 2, 2026, follow:
| Line item | Amortized / Cost | Fair / Value |
| --- | --- | --- |
| Due in one year or less | $30 | $29 |
| Due after one through five years | 381 | 375 |
| Due after five through 10 years | 554 | 528 |
| Due after 10 years | 187 | 162 |
| Mortgage-backed securities | 236 | 209 |
| Debt securities | $1,388 | $1,303 |
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.
Fair value, nonrecurring Level 3 measurements from impairments and other adjustments were as follows:
| Line item | Fair Value / August 2 | Fair Value / November 2 | Fair Value / July 27 | Losses (Gains) / Three Months Ended / August 2 | Losses (Gains) / Three Months Ended / July 27 | Losses (Gains) / Nine Months Ended / August 2 | Losses (Gains) / Nine Months Ended / July 27 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | 2026 | 2025 | 2025 | 2026 | 2025 | 2026 | 20252 |
| Property and equipment – net1 | | $1 | $1 | | $8 | | $8 |
| Other intangible assets – net1 | | 3 | 3 | | 53 | | 53 |
| Other assets | | 8 | | | | | |
| Assets held for sale | | | | | | | (32) |
1 Fair values at November 2, 2025, and July 27, 2025, are related to an assessment of our external overseas battery operations performed in the third quarter of 2025.
2 The gain on “Assets held for sale” recorded in the first quarter of 2025 represents a reversal of prior period valuation allowance loss, not in excess of the cumulative valuation allowance recorded on “Assets held for sale.”
The following is a description of the valuation methodologies we use to measure certain financial instruments on the balance sheets at fair value:
Marketable securities – The portfolio of investments is valued on a market approach (matrix pricing model) in which all significant inputs are observable or can be derived from or corroborated by observable market data such as interest rates, yield curves, volatilities, credit risk, and prepayment speeds. Funds are valued using 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 after the acquisition date. The deferred consideration balance is reduced as purchases are made and valued on a discounted cash flow approach using market rates.
Property and equipment – net – The valuations were based on the cost approach. The inputs include reproduction cost estimates adjusted for physical deterioration and functional obsolescence (see Note 22).
Other intangible assets – net – The impairment of customer relationships and tradename of our external overseas battery operations was measured using an income approach (see Note 22).
Other assets (Investments 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.
Assets held for sale – The disposal group 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 21). The gain recorded in 2025 represents a reversal of the prior period valuation allowance, not in excess of the cumulative valuation allowance recorded on “Assets held for sale.”
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**(19)****Derivative Instruments**
Fair values of our derivative instruments and the associated notional amounts are presented below. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.”
| Line item | August 2, 2026 / Notional | August 2, 2026 / Fair Value / Assets | August 2, 2026 / Fair Value / Liabilities | November 2, 2025 / Notional | November 2, 2025 / Fair Value / Assets | November 2, 2025 / Fair Value / Liabilities | July 27, 2025 / Notional | July 27, 2025 / Fair Value / Assets | July 27, 2025 / Fair Value / Liabilities |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Cash flow hedges: | | | | | | | | | |
| Interest rate contracts | $3,225 | $13 | $4 | $2,675 | | $21 | $2,475 | | $29 |
| Fair value hedges: | | | | | | | | | |
| Interest rate contracts | 10,431 | 33 | 311 | 11,465 | $160 | 228 | 13,753 | $148 | 326 |
| Cross-currency interest rate contracts | 2,358 | 47 | 22 | 2,058 | 91 | 11 | 975 | 101 | |
| Net investment hedges: | | | | | | | | | |
| Cross-currency interest rate contracts | 1,131 | | 8 | 1,131 | | 9 | 1,131 | | 30 |
| Not designated as hedging instruments: | | | | | | | | | |
| Interest rate contracts | 14,841 | 85 | 44 | 14,084 | 94 | 81 | 15,170 | 92 | 74 |
| Foreign exchange contracts | 8,511 | 29 | 130 | 7,372 | 46 | 33 | 7,869 | 25 | 52 |
| Cross-currency interest rate contracts | 135 | | 9 | 132 | 2 | 6 | 141 | 4 | 6 |
The amounts recorded in the condensed consolidated balance sheets related to borrowings and fair value hedges are presented in the table below. Fair value hedging adjustments are included in the carrying amount of hedged items.
| Line item | Carrying Amount / of Hedged Items | Cumulative Fair Value / Hedging Amounts |
| --- | --- | --- |
| August 2, 2026 | | |
| Short-term borrowings | $2,846 | $(24) |
| Long-term borrowings | 25,681 | (493) |
| November 2, 2025 | | |
| Short-term borrowings | $2,998 | $(30) |
| Long-term borrowings | 25,013 | (203) |
| July 27, 2025 | | |
| Short-term borrowings | $2,361 | $(23) |
| Long-term borrowings | 24,893 | (271) |
The table above includes carrying amounts of short-term borrowings of $2,500, $2,544, and $2,252 and of long-term borrowings of $13,572, $11,963, and $10,396 at August 2, 2026, November 2, 2025, and July 27, 2025, respectively, for hedged items that are in discontinued hedge relationships. Also included are cumulative fair value hedging amounts on discontinued hedge relationships of short-term borrowings of ($24), ($30), and ($22) and of long-term borrowings of ($150), ($185), and ($130) at August 2, 2026, November 2, 2025, and July 27, 2025, respectively.
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The classification and gains (losses), including accrued interest expense, related to derivative instruments on the statements of consolidated income consisted of the following:
| Line item | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 |
| --- | --- | --- | --- | --- |
| Fair value hedges: | | | | |
| Interest rate contracts – Interest expense | $(229) | $(54) | $(429) | $38 |
| Cash flow hedges: | | | | |
| Recognized in OCI: | | | | |
| Interest rate contracts – OCI (pretax) | $15 | $7 | $30 | $3 |
| Reclassified from OCI: | | | | |
| Interest rate contracts – Interest expense | (1) | (3) | 1 | 5 |
| Net investment hedges: | | | | |
| Interest rate contracts – Interest expense | $5 | $4 | $14 | $5 |
| Recognized in OCI: | | | | |
| Interest rate contracts – OCI (pretax) | 9 | (26) | (4) | (30) |
| Not designated as hedges: | | | | |
| Interest rate contracts – Interest expense | $1 | $9 | $10 | $(7) |
| Foreign exchange contracts – Net sales | (5) | 1 | (1) | (2) |
| Foreign exchange contracts – Cost of sales | 13 | (21) | (82) | 7 |
| Foreign exchange contracts – Other operating expenses | 135 | (79) | (154) | 11 |
| Total not designated | $144 | $(90) | $(227) | $9 |
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 August 2, 2026, November 2, 2025, and July 27, 2025, was $398, $356, and $465, respectively. In accordance with the limits established in these agreements, we posted $126, $62, and $122 of cash collateral at August 2, 2026, November 2, 2025, and July 27, 2025, respectively. In addition, we paid $8 of collateral that was outstanding at August 2, 2026, November 2, 2025, and July 27, 2025, 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 follows:
| Line item | Gross Amounts / Recognized | Netting / Arrangements | Collateral | Net Amount |
| --- | --- | --- | --- | --- |
| August 2, 2026 | | | | |
| Assets | $207 | $(89) | | $118 |
| Liabilities | 528 | (89) | $(127) | 312 |
| November 2, 2025 | | | | |
| Assets | $393 | $(202) | | $191 |
| Liabilities | 389 | (202) | $(64) | 123 |
| July 27, 2025 | | | | |
| Assets | $370 | $(157) | $(3) | $210 |
| Liabilities | 517 | (157) | (122) | 238 |
**(20)****Share-Based Awards**
We are authorized to grant shares for equity incentive awards. The remaining shares authorized for future issuance were 12.4 million at August 2, 2026. In December 2025, we granted stock options to employees for the purchase of 161 thousand shares of common stock at an exercise price of $468.90 per share and a binomial lattice model fair value of $125.96 per share at the grant date. At August 2, 2026, options for 936 thousand shares were outstanding with a weighted-average exercise price of $362.42 per share.
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During the nine months ended August 2, 2026, the restricted stock units (RSUs) granted in thousands of shares and the weighted-average grant date fair values, using the closing price of our common stock on the grant date in dollars, follow:
| Line item | Shares | Grant-Date / Fair Value / (per share) |
| --- | --- | --- |
| Service-based | $315 | 475.79 |
| Performance/service-based | 154 | 538.25 |
| Market/service-based (fair value determined using a Monte Carlo model) | 39 | 555.14 |
In March 2026, we granted performance/service-based awards to certain of our senior officers, which vest subject to the satisfaction of pre-established annual Shareholder Value Added targets during a five-fiscal year period beginning on November 3, 2025, and ending on October 27, 2030. Each fiscal year, a payout percentage ranging from zero to 175% will be calculated and the five annual payout percentages will be averaged at the end of the performance period and used to calculate the number of common stock shares to be received. The awards include dividend equivalent payments.
**(21)****AcQUISITIONs AND Disposition**
**Acquisitions**
2026 Acquisitions
In 2026, the company completed several acquisitions to advance the capabilities of its existing technology offerings, including the February acquisition of Tenna LLC (Tenna) a U.S. construction technology company that provides mixed-fleet equipment operations and asset tracking solutions. Tenna was acquired for a purchase price of $439, net of $1 cash acquired, and the purchase price allocation to acquired assets and assumed liabilities is presented below. Tenna was assigned to the CF segment. We also acquired other small-scale businesses assigned to the PPA, SAT, and CF segments for a combined purchase price of $16. Most of the purchase price for these other acquisitions was allocated to other intangible assets.
The fair values assigned to Tenna assets and liabilities, which are based on information as of the acquisition date and available at August 2, 2026, follow:
| Line item | February / 2026 |
| --- | --- |
| Trade accounts and notes receivable | $23 |
| Inventories | 4 |
| Goodwill | 286 |
| Other intangible assets | 137 |
| Other miscellaneous assets | 3 |
| Total assets | $453 |
| Accounts payable and accrued expenses | $14 |
| Total liabilities | $14 |
The identifiable intangible assets of Tenna were related to customer relationships, technology, and trade name with a weighted average amortization period of 10 years. The goodwill for Tenna is deductible for income tax purposes.
2025 Acquisitions
In 2025, we acquired businesses to advance the capabilities of our existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions that improve profitability, efficiency, and sustainability. The combined purchase price of these acquisitions was $89, net of cash acquired. The businesses were assigned to the PPA and CF segments. Most of the purchase price for these acquisitions was allocated to goodwill and other intangible assets.
**Disposition**
In February 2025, we completed a transaction with Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become a 50% owner of our wholly-owned subsidiary in Brazil, BJD. Bradesco contributed capital directly to BJD. The transaction resulted in the deconsolidation of BJD in the second quarter of 2025. BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment and was included in our Financial Services segment. BJD was a part of our Brazil operations which is considered an integrated single foreign entity.
We retained a 50% equity interest in BJD, which was valued at the deconsolidation date at $362 based on the completed transaction with Bradesco and its amount of contributed capital. At the time of deconsolidation in February 2025, the additional gain or loss was not significant.
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The statements of consolidated cash flows noncash transactions as a result of the 2025 BJD deconsolidation include derecognition of total assets (excluding cash and cash equivalents of $110) of $2,897 and total liabilities of $1,861, and the recognition of the investments in unconsolidated affiliates of $362 and receivables from unconsolidated affiliates (BJD intercompany payables) of $781. The decrease in cash and cash equivalents resulting from the deconsolidation of BJD was recorded in other investing activities in the statements of consolidated cash flows.
We are accounting for our investment in BJD using the equity method of accounting and results of its operations are reported in “Equity in income of unconsolidated affiliates” (see Note 1). The related investment in unconsolidated affiliates and receivables from unconsolidated affiliates are reported in “Other assets” and “Other receivables,” respectively, on the condensed consolidated balance sheets.
**(22)****Special ItemS**
Impairment
In the third quarter of 2025, we recorded a non-cash charge of $61 pretax ($49 after-tax), primarily related to the trade name and customer relationship assets of our external overseas battery operations. Of this amount, $53 was recorded in “Selling, administrative and general expenses” and $8 in “Cost of sales.” The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets (see Note 18).
Tax Items
In the first quarter of 2025, we recorded favorable net discrete tax items primarily due to tax benefits of $110 related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 from an adjustment to an uncertain tax position of a foreign subsidiary.
Banco John Deere S.A.
In 2024, we entered into an agreement with Bradesco, for Bradesco to invest and become 50% owner of our wholly-owned subsidiary in Brazil, BJD. The BJD business was reclassified as held for sale in 2024. At January 26, 2025, the valuation allowance on “Assets held for sale” decreased, resulting in a pretax and after-tax gain (reversal of previous losses not in excess of cumulative valuation allowance recorded on “Assets held for sale”) of $32 recorded in “Selling, administrative and general expenses” in the three months ended January 26, 2025, and presented in “Impairments and other adjustments” in the statements of consolidated cash flows.
**(23)****Subsequent Event**
On August 26, 2026, a quarterly dividend of $1.62 per share was declared at the Board of Directors meeting, payable on November 9, 2026, to stockholders of record on September 30, 2026.
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## Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
**RESULTS OF OPERATIONS**
All amounts are presented in millions of U.S. dollars unless otherwise specified.
**Overview**
**Organization**
Deere & Company is a global leader in the production of agricultural, turf, construction, and forestry equipment and solutions. John Deere Financial provides financing for John Deere equipment, parts, services, and other inputs customers need to run their operations. Our operations are managed through the Production & Precision Agriculture (PPA), Small Agriculture & Turf (SAT), Construction & Forestry (CF), and Financial Services operating segments. References to “equipment operations” include PPA, SAT, and CF, while references to “agriculture and turf” include both PPA and SAT.
**Trends and Economic Conditions**
**Industry Sales Outlook for Fiscal Year 2026 (in units)**
*Agriculture and Turf*
*Construction and Forestry*
**Company Trends**
Our Leap Ambitions, a set of focused goals designed to guide the implementation of our Smart Industrial Operating Model, feature multi-year financial and operational goals, emphasizing the use of our differentiated equipment and service solutions, including automation, autonomy, digitalization, lifecycle solutions, and Solutions as a Service (SaaS).
Deeper integration of technology into equipment to enable customers to do more with less remains a persistent market trend. Customers seek to improve profitability, productivity, and sustainability by selecting our equipment and technology solutions. These technologies are incorporated into customer operations across the varied production systems that we serve. While we continue to benefit from the adoption of these technologies, revenue from SaaS products did not represent a significant percentage of our revenues in the periods presented.
**Company Outlook for 2026**
Large agriculture sales are expected to remain subdued in North America and to soften in South America resulting in decreased sales volume for PPA in 2026 compared to 2025. SAT and CF sales are expected to improve in 2026. Our overall net sales are expected to increase in 2026 compared to 2025, with the anticipated decline in PPA sales more than offset by improvements in CF and SAT.
*Agriculture and Turf Industry Outlook for 2026*
- Demand in the U.S. and Canada for large agriculture equipment is expected to decrease compared to 2025 levels as elevated farm input costs, commodity price volatility, and ongoing market uncertainty continue to pressure demand for equipment.
- We expect small agriculture and turf equipment sales to be flat to up slightly in the U.S. and Canada. Solid margins in the dairy and livestock sector and steady demand in residential and commercial mowing continue to support the outlook.
- In Europe, the industry is forecasted to be flat. While elevated input costs and challenging weather conditions are pressuring crop farming margins, favorable dairy market margins are expected to continue to provide ongoing support to overall industry demand.
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- Demand in South America is expected to decrease. Elevated production costs and high interest rates are pressuring farm profitability and impacting equipment demand.
- Industry sales in Asia are forecasted to be roughly flat, mainly driven by stable end market demand.
*Construction and Forestry Industry Outlook for 2026*
- Industry sales in the U.S. and Canada for construction and compact construction equipment are projected to be higher compared to 2025. Favorable industry fundamentals are supported by infrastructure, data center, and energy-related projects, as well as continued investment in rental fleets.
- Global forestry markets are expected to decrease due to continued pressure from subdued residential construction demand and lower log and lumber prices.
- Global roadbuilding markets are forecasted to be up compared to 2025 driven by increased road construction investment across multiple geographies.
*Financial Services Outlook for 2026*
Net Income Down
(–) Average portfolio Unfavorable
(–) Prior period special items Unfavorable
+ Financing spreads Favorable
+ Provision for credit losses Favorable
**Additional Trends**
*Agricultural Market Business Cycle.* The agricultural market is affected by various factors including commodity prices, acreage planted, crop yields, government policies, and uncertainty in macroeconomic trends. These factors affect farmers’ income and sentiment which may result in varying demand for our equipment. In 2026, we may experience the following effects due to unfavorable large agriculture market conditions: lower sales volumes, higher sales incentives, and elevated receivable write-offs.
*Global Trade Policies.* In 2025, new tariffs were imposed in the U.S. for imports from a broad range of countries and on certain materials. Several countries also implemented retaliatory tariffs on imports from the U.S. and introduced additional trade barriers.
Incremental import tariffs adversely affected the cost of our products and components beginning in 2025 and continue to do so in 2026. The direct impact of these incremental tariffs incurred was $502 in the first nine months of 2026, net of the tariff recovery described below, and approximately $300 in the first nine months of 2025. These amounts exclude the impact of tariffs on our suppliers and market demand.
On February 20, 2026, the Supreme Court of the United States issued a decision invalidating tariffs imposed pursuant to the International Emergency Economic Powers Act. We recorded tariff recoveries in the third quarter and first nine months of 2026 of $110 and $382, respectively, as we concluded the refunds are probable and reasonably estimable. As of August 2, 2026, approximately 80% of the recorded tariff recoveries have been received. The recovery was allocated 20%, 25%, and 55% to PPA, SAT, and CF, respectively, decreasing cost of sales. Trade policies continue to evolve, causing uncertainty in the agriculture and construction industries. We continue to pursue opportunities to mitigate impacts on our business, to the extent possible, including adjusting sourcing strategies, seeking product exemptions, and identifying cost reduction opportunities.
Changes in the agricultural market business cycle and global trade policies are driven by factors outside of our control, and as a result, we cannot reasonably foresee when these conditions may subside.
**Legal Proceeding –** On January 15, 2025, the Federal Trade Commission (FTC), along with the Attorneys General of the States of Illinois and Minnesota filed a lawsuit against us in the United States District Court for the Northern District of Illinois Western Division. The Attorneys General of the States of Arizona, Michigan, and Wisconsin joined the lawsuit. On July 8, 2026, we entered into a settlement with the FTC and plaintiff states to resolve all claims contained in the lawsuit. As part of that settlement, we have agreed, among other items, to provide certain repair resources to farmers and independent repair providers on “fair and reasonable terms” (as defined by the settlement). We have also agreed to provide regular reporting to the FTC and submit to the FTC’s oversight of our compliance with the settlement.
**Other Items of Concern and Uncertainties –** Other items that could impact our results are:
- slower economic growth and inflation
- global and regional political conditions
- shifts in energy, including positions with respect to biofuels, positions on government subsidies of farming, and changes in energy prices
- input costs, including the availability and price of fertilizers as a result of the conflict in the Middle East
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- capital market disruptions
- foreign currency and capital control policies
- right to repair and agriculture data privacy regulations and legislation
- weather conditions
- marketplace pace of adoption and monetization of technologies we have invested in
- our ability to strengthen our digital capabilities, artificial intelligence, automation, and autonomy
- changes in demand and pricing for new and used equipment
- delays or disruptions in our supply chain
- significant fluctuations in foreign currency exchange rates
- volatility in the prices of many commodities
**Consolidated Results – 2026 Compared with 2025**
| Deere & Company / (In millions of dollars, except per share amounts) | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Three Months Ended / % / Change | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 | Nine Months Ended / % / Change |
| --- | --- | --- | --- | --- | --- | --- |
| Net sales and revenues | $12,608 | $12,018 | +5 | $35,589 | $33,290 | +7 |
| Net income attributable to Deere & Company | 1,379 | 1,289 | +7 | 3,808 | 3,962 | -4 |
| Diluted earnings per share | 5.10 | 4.75 | | 14.06 | 14.57 | |
Net sales and revenues increased 5% and 7% for the quarter and year-to-date periods, respectively, primarily due to higher sales volumes, the positive effects of foreign currency translation, and favorable price realization. Net income increased $90 in the third quarter primarily due to favorable price realization of $286 ($403 pretax), partially offset by unfavorable tax impacts of $114 and increased production costs of $89 ($126 pretax), primarily from higher material costs. Results for the first nine months were also affected by favorable special tax items in the prior period (see Note 22) of $163.
An explanation of the cost of sales to net sales ratio and other significant statements of consolidated income changes follows:
| Deere & Company | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Three Months Ended / % / Change | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 | Nine Months Ended / % / Change |
| --- | --- | --- | --- | --- | --- | --- |
| Cost of sales to net sales | 72.2% | 73.1% | | 73.1% | 71.3% | |
| • Material costs | | Unfavorable | | | Unfavorable | |
| • Tariffs, net of recoveries | | Favorable | | | Unfavorable | |
| • Production efficiencies | | Favorable | | | Favorable | |
| Higher material costs driven by inflationary pressures. Incremental tariffs affected all periods. The favorable tariff impact for the quarter was due to recognition of recoveries (see Global Trade Policies section in Additional Trends). Production efficiencies had a favorable impact resulting from increased manufacturing volumes for CF and SAT. | | | | | | |
| Other income | $256 | $235 | +9 | $799 | $719 | +11 |
| Higher for both periods due to income earned from extended warranty premiums. | | | | | | |
| Research and development expenses | 567 | 556 | +2 | 1,704 | 1,631 | +4 |
| Increased due to continued focus on developing and deploying technology solutions. | | | | | | |
| Interest expense | 710 | 794 | -11 | 2,141 | 2,408 | -11 |
| Decreased for both periods primarily due to lower average borrowing rates and lower average borrowings. | | | | | | |
| Other operating expenses | 290 | 281 | +3 | 846 | 817 | +4 |
| Increased for both periods due to higher depreciation of equipment on operating leases. | | | | | | |
| Provision for income taxes | 529 | 339 | +56 | 1,243 | 905 | +37 |
| Higher for both periods primarily due to current year unfavorable discrete items and the first nine months were impacted by a prior period special tax item (see Note 22). | | | | | | |
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**Business Segment Results – 2026 compared with 2025**
The tariff impact was primarily included in the “Production Costs” category below.
| Production & Precision Agriculture | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Three Months Ended / % / Change | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 | Nine Months Ended / % / Change |
| --- | --- | --- | --- | --- | --- | --- |
| Net sales | $3,998 | $4,273 | -6 | $11,664 | $12,571 | -7 |
| Operating profit | 527 | 580 | -9 | 1,372 | 2,066 | -34 |
| Operating margin | 13.2% | 13.6% | | 11.8% | 16.4% | |
| Price realization | | | +3 | | | +1 |
| Currency translation impact on Net sales | | | +2 | | | +3 |
Production & Precision Agriculture sales decreased for the quarter as a result of lower shipment volumes (primarily in Brazil and Europe), partially offset by favorable price realization and the positive effects of foreign currency translation (primarily the Brazilian real and Australian dollar). Operating profit decreased primarily due to lower shipment volumes / sales mix and higher production costs from an increase in material costs, partially offset by favorable price realization and the effects of foreign currency exchange.
**Production & Precision Agriculture Operating Profit**
Third Quarter 2026 Compared to Third Quarter 2025
Sales for the first nine months decreased as a result of lower shipment volumes (primarily in the U.S., Canada, and Brazil), partially offset by the positive effects of foreign currency translation (primarily the Brazilian real and Euro). Operating profit decreased for the first nine months primarily due to lower shipment volumes and higher production costs, driven primarily by an increase in material costs, partially offset by favorable price realization.
**Production & Precision Agriculture Operating Profit**
First Nine Months 2026 Compared to First Nine Months 2025
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| Small Agriculture & Turf | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Three Months Ended / % / Change | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 | Nine Months Ended / % / Change |
| --- | --- | --- | --- | --- | --- | --- |
| Net sales | $3,383 | $3,025 | +12 | $9,036 | $7,767 | +16 |
| Operating profit | 622 | 485 | +28 | 1,538 | 1,182 | +30 |
| Operating margin | 18.4% | 16.0% | | 17.0% | 15.2% | |
| Price realization | | | +2 | | | +2 |
| Currency translation impact on Net sales | | | -1 | | | +1 |
Small Agriculture & Turf sales increased for the quarter as a result of higher shipment volumes (primarily in the U.S.) and favorable price realization. Operating profit increased due to higher shipment volumes / sales mix and favorable price realization, partially offset by higher production costs from increased material costs.
**Small Agriculture & Turf Operating Profit**
Third Quarter 2026 Compared to Third Quarter 2025
Sales for the first nine months increased as a result of higher shipment volumes (primarily in the U.S., Europe, and India) and favorable price realization. Operating profit for the first nine months increased due to higher shipment volumes / sales mix and favorable price realization, partially offset by higher production costs due to an increase in material costs.
**Small Agriculture & Turf Operating Profit**
First Nine Months 2026 Compared to First Nine Months 2025
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| Construction & Forestry | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Three Months Ended / % / Change | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 | Nine Months Ended / % / Change |
| --- | --- | --- | --- | --- | --- | --- |
| Net sales | $3,618 | $3,059 | +18 | $10,079 | $8,000 | +26 |
| Operating profit | 436 | 237 | +84 | 1,134 | 681 | +67 |
| Operating margin | 12.1% | 7.7% | | 11.3% | 8.5% | |
| Price realization | | | +8 | | | +4 |
| Currency translation impact on Net sales | | | +1 | | | +2 |
Construction & Forestry sales increased for the quarter primarily as a result of higher shipment volumes (primarily in the U.S.) and favorable price realization. Operating profit increased due to favorable price realization, partially offset by higher selling, administrative and general and research and development expenses.
**Construction & Forestry Operating Profit**
Third Quarter 2026 Compared to Third Quarter 2025
Sales for the first nine months increased due to higher shipment volumes (primarily in the U.S.) and favorable price realization. Operating profit increased due to higher shipment volumes / sales mix and favorable price realization, partially offset by higher production costs from increased material costs and higher selling, administrative and general and research and development expenses.
**Construction & Forestry Operating Profit**
First Nine Months 2026 Compared to First Nine Months 2025
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| Financial Services | Three Months Ended / August 2 / 2026 | Three Months Ended / July 27 / 2025 | Three Months Ended / % / Change | Nine Months Ended / August 2 / 2026 | Nine Months Ended / July 27 / 2025 | Nine Months Ended / % / Change |
| --- | --- | --- | --- | --- | --- | --- |
| Revenue (including intercompany) | $1,505 | $1,544 | -3 | $4,501 | $4,618 | -3 |
| Interest expense | 661 | 720 | -8 | 1,973 | 2,206 | -11 |
| Net income | 219 | 205 | +7 | 653 | 597 | +9 |
Revenue decreased for both periods primarily due to a lower average portfolio. The average balance of receivables and leases financed was 2% lower in the third quarter of 2026 and 2% lower in the first nine months of 2026 compared with the same periods last year. Interest expense decreased as a result of lower average borrowing rates and lower average borrowings.
Net income for both periods increased primarily due to favorable financing spreads, partially offset by the impact of a lower average portfolio. Net income in the first nine months was also impacted by the prior period benefiting from a special item (see Note 22), lower provision for credit losses, and favorable derivative valuation adjustments.
**Critical Accounting Estimates**
See our critical accounting estimates discussed in the Management’s Discussion and Analysis of the most recently filed Annual Report on Form 10-K. There have been no material changes to these policies.
**Capital Resources and Liquidity – 2026 Compared with 2025**
We have access to global markets at a reasonable cost. Sources of liquidity include:
- cash, cash equivalents, and marketable securities on hand
- funds from operations
- the issuance of commercial paper and term debt
- the securitization of retail notes
- bank lines of credit
We closely monitor our cash requirements. Based on the available sources of liquidity, we expect to meet our funding needs in the short term (next 12 months) and long term (beyond 12 months). We are forecasting operating cash flows from equipment operations in 2026 to remain flat compared with 2025 driven by an offsetting decrease in net income adjusted for non-cash provisions, and higher cash flows generated from increased accounts payable and accrued expenses.
We operate in multiple industries, which have unique funding requirements. The equipment operations are capital intensive. Historically, these operations have been subject to seasonal variations in financing requirements for inventories and receivables from dealers.
The financial services operations rely on their ability to raise substantial amounts of funds to finance their receivable and lease portfolios.
Key metrics are provided in the following table:
| Line item | August 2 / 2026 | November 2 / 2025 | July 27 / 2025 |
| --- | --- | --- | --- |
| Cash, cash equivalents, and marketable securities | $10,278 | $9,687 | $9,987 |
| Trade accounts and notes receivable – net | 7,723 | 5,317 | 6,103 |
| Ratio to prior 12 month’s net sales | 19% | 14% | 16% |
| Inventories | 7,811 | 7,406 | 7,713 |
| Ratio to prior 12 month’s cost of sales | 26% | 26% | 29% |
| Unused credit lines | 5,201 | 7,268 | 6,150 |
| Financial Services: | | | |
| Ratio of interest-bearing debt to stockholder’s equity | 8.6 to 1 | 8.4 to 1 | 8.6 to 1 |
There have been no material changes to the contractual obligations and other cash requirements identified in our most recently filed Annual Report on Form 10-K.
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**Cash Flows**
| Line item | Nine Months Ended / August 2, 2026 | Nine Months Ended / July 27, 2025 |
| --- | --- | --- |
| Net cash provided by operating activities | $3,250 | $3,464 |
| Net cash used for investing activities | (825) | (801) |
| Net cash used for financing activities | (1,828) | (1,557) |
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 20 | 108 |
| Net increase (decrease) in cash, cash equivalents, and restricted cash | $617 | $1,214 |
Cash inflows from consolidated operating activities in the first nine months of 2026 were $3,250. This resulted mainly from net income adjusted for non-cash provisions, partially offset by an increase in receivables related to sales, an increase in inventories, and a decrease in accrued employee benefits. Cash outflows from investing activities were $825 in the first nine months of this year. The primary drivers were purchases of property and equipment and the acquisition of Tenna LLC (see Note 21), partially offset by collections of receivables (excluding receivables related to sales) exceeding the cost of receivables acquired. Cash outflows from financing activities were $1,828 in the first nine months of 2026, primarily due to cash returned to shareholders. Cash returned to shareholders was $2,013 in the first nine months of 2026. Cash, cash equivalents, and restricted cash increased $617 during the first nine months of 2026.
**Key Metrics and Balance Sheet Changes**
**Trade Accounts and Notes Receivable.** Trade accounts and notes receivable arise from sales of goods to customers. Trade receivables increased $2,406 during the first nine months of 2026, primarily due to a seasonal increase and higher sales volumes. These receivables increased $1,620 compared to a year ago due to higher sales volumes. The percentage of total worldwide trade receivables outstanding for periods exceeding 12 months was 1% at August 2, 2026, 3% at November 2, 2025, and 3% at July 27, 2025.
**Financing Receivables and Equipment on Operating Leases.** Financing receivables and equipment on operating leases consist of retail notes originated in connection with financing of new and used equipment, operating leases, revolving charge accounts, sales-type and direct financing leases, and wholesale notes. Financing receivables and equipment on operating leases decreased $2,430 during the first nine months of 2026 and decreased $2,814 in the past 12 months. The decrease for both periods was due to lower agriculture and turf retail customer receivables reflecting reduced demand in recent years and lower wholesale receivables. Total acquisition volumes of financing receivables and equipment on operating leases were 8% higher in the first nine months of 2026, compared with the same period last year, as volumes of wholesale notes and revolving charge accounts were higher compared to the same period last year.
**Inventories.** Inventories increased by $405 during the first nine months of 2026 primarily due to a seasonal increase and increased by $98 compared to a year ago. A majority of these inventories are valued at cost on the “last-in, first-out” (LIFO) method.
**Property and Equipment.** Property and equipment cash expenditures in the first nine months of 2026 were $716 compared with $852 in the same period last year. Capital expenditures in 2026 are estimated to be approximately $1.3 billion.
**Accounts Payable and Accrued Expenses.** Accounts payable and accrued expenses decreased by $241 in the first nine months of 2026, primarily due to a decrease in accrued expenses associated with employee benefits and dealer sales incentives, partially offset by an increase in trade payables and derivative liabilities. Accounts payable and accrued expenses increased $86 compared to a year ago due to an increase in trade payables and accrued expenses for warranty liabilities, partially offset by a decrease in accrued expenses associated with accrued taxes and employee benefits.
**Borrowings.** Total external borrowings decreased by $100 in the first nine months of 2026 and decreased $2,810 compared to a year ago, generally corresponding with the level of the receivable and lease portfolio, as well as other working capital requirements.
John Deere Capital Corporation (Capital Corporation), a U.S. financial services subsidiary, has a revolving warehouse facility to utilize bank conduit facilities to securitize retail notes (see Note 10). The facility was renewed in November 2025, with an expiration in November 2026, and total capacity or “financing limit” of $2,500. At August 2, 2026, $1,818 of securitization borrowings were outstanding under the facility. At the end of the contractual revolving period, unless the banks and Capital Corporation agree to renew, Capital Corporation would liquidate the secured borrowings over time as payments on the retail notes are collected.
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In the first nine months of 2026, the financial services operations issued $2,525 and retired $3,027 of retail note securitization borrowings, which are presented in “Net proceeds (payments) in short-term borrowings (original maturities three months or less).”
**Lines of Credit.** We also have access to bank lines of credit with various banks throughout the world.
Worldwide lines of credit totaled $12.6 billion at August 2, 2026, consisting primarily of:
- a 364-day credit facility agreement of $5.5 billion expiring in the second quarter of 2027
- a credit facility agreement of $3.25 billion expiring in the second quarter of 2029
- a credit facility agreement of $3.25 billion expiring in the second quarter of 2031
At August 2, 2026, $5,201 of these worldwide lines of credit were unused. For the purpose of computing 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 financial statements.
**Debt Ratings.** To access public debt capital markets, we rely on credit rating agencies to assign short-term and long-term credit ratings to our debt securities as an indicator of credit quality for fixed income investors. A security rating is not a recommendation by the rating agency to buy, sell, or hold our securities. A credit rating agency may change or withdraw ratings based on its assessment of our current and future ability to meet interest and principal repayment obligations. Each agency’s rating should be evaluated independently of any other rating. Lower credit ratings generally result in higher borrowing costs, including costs of derivative transactions, reduced access to debt capital markets, and may adversely impact our liquidity. The senior long-term and short-term debt ratings and outlook currently assigned to our unsecured securities by the rating agencies engaged by us are as follows:
Senior
Long-Term Short-Term Outlook
Fitch Ratings A+ F1 Stable
Moody’s Investors Service, Inc. A1 Prime-1 Stable
Standard & Poor’s A A-1 Stable
**FORWARD-LOOKING STATEMENTS**
Certain statements contained herein, including in the sections entitled “Overview,” “Trends and Economic Conditions,” and “Condensed Notes to Interim Consolidated Financial Statements” relating to future events, expectations, and trends constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of our operations generally while others could more heavily affect a particular line of business.
Forward-looking statements are based on information currently available to us and our current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, we expressly disclaim any obligation to update or revise our forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:
- the agricultural business cycle, which can be unpredictable and is affected by factors such as farm income, international trade, world grain stocks, crop yields, available farm acres, soil conditions, prices for commodities and livestock, input costs including the availability and price of fertilizer, government farm programs, and availability of transport for crops
- construction and forestry activity, which is affected by factors such as housing starts and supply, real estate and housing prices, levels of residential and non-residential construction, public and private infrastructure development, and government policies and regulations
- macroeconomic conditions, including unemployment, inflation, interest rate volatility, energy price increases resulting from geopolitical conflicts, changes in consumer sentiment and practices due to slower economic growth or a recession, and regional or global liquidity constraints
- the uncertainty of government policies and actions with respect to the global trade environment, including increased and contested tariffs announced by the U.S. government and retaliatory trade regulations
- political, economic, and social instability in the geographies in which we operate
- worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and the resulting impacts on the demand for our equipment
- rationalization, restructuring, relocation, expansion, and/or reconfiguration of manufacturing and warehouse facilities
39
- accurately forecasting customer demand for products and services, and adequately managing inventory
- selling products domestically or internationally, managing increased costs of production, absorbing or passing on increased expenses, as well as accurately predicting financial results and industry trends
- availability and price of raw materials, components, and whole goods
- delays or disruptions in our supply chain, including those arising from geopolitical conflicts
- changes in climate patterns, unfavorable weather events, and natural disasters
- suppliers’ and manufacturers’ business practices and compliance with applicable laws such as human rights, safety, environmental, and fair wages
- higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for our products and solutions
- attracting, developing, engaging, and retaining qualified employees
- adapting in highly competitive markets, including understanding and meeting customers’ changing expectations for products and solutions, including delivery and utilization of precision technology
- realizing the anticipated benefits of our Smart Industrial Operating Model, achieving our Leap Ambitions, and executing our related business strategies in production systems, precision technologies, and aftermarket support
- our dealer network’s development and implementation of successful sales plans, management of new and used inventory, distribution of our products, and support and service for our precision technology solutions
- achieving anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes
- negative claims or publicity that damage our reputation or brand
- the impact of workforce reductions on our culture, employee retention and morale, and institutional knowledge
- labor relations and contracts, including work stoppages and other disruptions
- security breaches, cybersecurity attacks, technology failures, and other disruptions to our information technology infrastructure and products
- leveraging artificial intelligence and machine learning within our business processes
- changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign, and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environment (including climate change and engine emissions), farming, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, health and safety, human rights, import / export and trade, labor and employment, product liability, right-to-repair, tariffs, tax, telematics, and telecommunications
- governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy
- warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations because of the deficient operation of our products
- investigations, claims, lawsuits, or other legal proceedings
- loss of or challenges to intellectual property rights
Further information concerning us and our businesses, including factors that could materially affect our financial results, is included in our other filings with the SEC (including, but not limited to, the factors discussed in Item 1A. “Risk Factors” of our most recent Annual Report on Form 10-K and this Quarterly Report on Form 10-Q). There also may be other factors that we cannot anticipate or that are not described herein because we do not currently perceive them to be material.
40
**SUPPLEMENTAL CONSOLIDATING DATA**
The supplemental consolidating data presented on the subsequent pages is presented for informational purposes. Equipment operations represent the enterprise without Financial Services. Equipment operations include Production & Precision Agriculture operations, Small Agriculture & Turf operations, Construction & Forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within Financial Services. Transactions between the equipment operations and Financial Services have been eliminated to arrive at the consolidated financial statements.
Equipment operations and Financial Services participate in different industries. Equipment operations primarily generate earnings and cash flows by manufacturing and selling equipment, service parts, and technology solutions to dealers and retail customers. Financial Services finance sales and leases by dealers of new and used equipment that is largely manufactured by equipment operations. Those earnings and cash flows generally are the difference between the finance income received from customer payments less interest expense, and depreciation on equipment subject to an operating lease. The two businesses are capitalized differently and have separate performance metrics. The supplemental consolidating data is also used by management due to these differences.
41
**DEERE & COMPANY**
**SUPPLEMENTAL CONSOLIDATING DATA**
### STATEMENTS OF INCOME
_For the Three Months Ended August 2, 2026 and July 27, 2025 · Unaudited_
| Line item | EQUIPMENT / OPERATIONS / 2026 | EQUIPMENT / OPERATIONS / 2025 | FINANCIAL / SERVICES / 2026 | FINANCIAL / SERVICES / 2025 | ELIMINATIONS / 2026 | ELIMINATIONS / 2025 | CONSOLIDATED / 2026 | CONSOLIDATED / 2025 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net Sales and Revenues | | | | | | | | |
| Net sales | $10,999 | $10,357 | | | | | $10,999 | $10,357 |
| Finance and interest income | 149 | 133 | $1,383 | $1,433 | $(179) | $(140) | 1,353 | 1,426 |
| Other income | 191 | 190 | 122 | 111 | (57) | (66) | 256 | 235 |
| Total | 11,339 | 10,680 | 1,505 | 1,544 | (236) | (206) | 12,608 | 12,018 |
| Costs and Expenses | | | | | | | | |
| Cost of sales | 7,950 | 7,578 | | | (11) | (8) | 7,939 | 7,570 |
| Research and development expenses | 567 | 556 | | | | | 567 | 556 |
| Selling, administrative and general expenses | 988 | 999 | 234 | 220 | (2) | (2) | 1,220 | 1,217 |
| Interest expense | 99 | 102 | 661 | 720 | (50) | (28) | 710 | 794 |
| Interest compensation to Financial Services | 129 | 112 | | | (129) | (112) | | |
| Other operating expenses | (23) | (8) | 357 | 345 | (44) | (56) | 290 | 281 |
| Total | 9,710 | 9,339 | 1,252 | 1,285 | (236) | (206) | 10,726 | 10,418 |
| Income before Income Taxes | 1,629 | 1,341 | 253 | 259 | | | 1,882 | 1,600 |
| Provision for income taxes | 472 | 274 | 57 | 65 | | | 529 | 339 |
| Income after Income Taxes | 1,157 | 1,067 | 196 | 194 | | | 1,353 | 1,261 |
| Equity in income (loss) of unconsolidated affiliates | 1 | (1) | 23 | 11 | | | 24 | 10 |
| Net Income | 1,158 | 1,066 | 219 | 205 | | | 1,377 | 1,271 |
| Less: Net loss attributable to noncontrolling interests | (2) | (18) | | | | | (2) | (18) |
| Net Income Attributable to Deere & Company | $1,160 | $1,084 | $219 | $205 | | | $1,379 | $1,289 |
1 Elimination of intercompany interest income and expense.
2 Elimination of equipment operations’ margin from inventory transferred to equipment on operating leases.
3 Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets.
4 Elimination of intercompany service revenues and fees.
5 Elimination of Financial Services’ lease depreciation expense related to inventory transferred to equipment on operating leases.
42
**DEERE & COMPANY**
**SUPPLEMENTAL CONSOLIDATING DATA (Continued)**
### STATEMENTS OF INCOME
_For the Nine Months Ended August 2, 2026 and July 27, 2025 · Unaudited_
| Line item | EQUIPMENT / OPERATIONS / 2026 | EQUIPMENT / OPERATIONS / 2025 | FINANCIAL / SERVICES / 2026 | FINANCIAL / SERVICES / 2025 | ELIMINATIONS / 2026 | ELIMINATIONS / 2025 | CONSOLIDATED / 2026 | CONSOLIDATED / 2025 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net Sales and Revenues | | | | | | | | |
| Net sales | $30,779 | $28,338 | | | | | $30,779 | $28,338 |
| Finance and interest income | 379 | 351 | $4,093 | $4,268 | $(461) | $(386) | 4,011 | 4,233 |
| Other income | 616 | 580 | 408 | 350 | (225) | (211) | 799 | 719 |
| Total | 31,774 | 29,269 | 4,501 | 4,618 | (686) | (597) | 35,589 | 33,290 |
| Costs and Expenses | | | | | | | | |
| Cost of sales | 22,518 | 20,239 | | | (32) | (24) | 22,486 | 20,215 |
| Research and development expenses | 1,704 | 1,631 | | | | | 1,704 | 1,631 |
| Selling, administrative and general expenses | 2,775 | 2,761 | 632 | 632 | (6) | (6) | 3,401 | 3,387 |
| Interest expense | 294 | 282 | 1,973 | 2,206 | (126) | (80) | 2,141 | 2,408 |
| Interest compensation to Financial Services | 334 | 306 | | | (334) | (306) | | |
| Other operating expenses | (59) | (47) | 1,093 | 1,045 | (188) | (181) | 846 | 817 |
| Total | 27,566 | 25,172 | 3,698 | 3,883 | (686) | (597) | 30,578 | 28,458 |
| Income before Income Taxes | 4,208 | 4,097 | 803 | 735 | | | 5,011 | 4,832 |
| Provision for income taxes | 1,059 | 752 | 184 | 153 | | | 1,243 | 905 |
| Income after Income Taxes | 3,149 | 3,345 | 619 | 582 | | | 3,768 | 3,927 |
| Equity in income (loss) of unconsolidated affiliates | | (4) | 34 | 15 | | | 34 | 11 |
| Net Income | 3,149 | 3,341 | 653 | 597 | | | 3,802 | 3,938 |
| Less: Net loss attributable to noncontrolling interests | (6) | (24) | | | | | (6) | (24) |
| Net Income Attributable to Deere & Company | $3,155 | $3,365 | $653 | $597 | | | $3,808 | $3,962 |
1 Elimination of intercompany interest income and expense.
2 Elimination of equipment operations’ margin from inventory transferred to equipment on operating leases.
3 Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets.
4 Elimination of intercompany service revenues and fees.
5 Elimination of Financial Services’ lease depreciation expense related to inventory transferred to equipment on operating leases.
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| DEERE & COMPANY / SUPPLEMENTAL CONSOLIDATING DATA (Continued) / CONDENSED BALANCE SHEETS / Unaudited | DEERE & COMPANY / SUPPLEMENTAL CONSOLIDATING DATA (Continued) / CONDENSED BALANCE SHEETS / Unaudited / EQUIPMENT / OPERATIONS / Aug 2 / 2026 | DEERE & COMPANY / SUPPLEMENTAL CONSOLIDATING DATA (Continued) / CONDENSED BALANCE SHEETS / Unaudited / EQUIPMENT / OPERATIONS / Nov 2 / 2025 | DEERE & COMPANY / SUPPLEMENTAL CONSOLIDATING DATA (Continued) / CONDENSED BALANCE SHEETS / Unaudited / EQUIPMENT / OPERATIONS / Jul 27 / 2025 | FINANCIAL / SERVICES / Aug 2 / 2026 | FINANCIAL / SERVICES / Nov 2 / 2025 | FINANCIAL / SERVICES / Jul 27 / 2025 | ELIMINATIONS / Aug 2 / 2026 | ELIMINATIONS / Nov 2 / 2025 | ELIMINATIONS / Jul 27 / 2025 | CONSOLIDATED / Aug 2 / 2026 | CONSOLIDATED / Nov 2 / 2025 | CONSOLIDATED / Jul 27 / 2025 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets | | | | | | | | | | | | |
| Cash and cash equivalents | $6,607 | $6,340 | $6,641 | $2,321 | $1,936 | $1,939 | | | | $8,928 | $8,276 | $8,580 |
| Marketable securities | 155 | 217 | 240 | 1,195 | 1,194 | 1,167 | | | | 1,350 | 1,411 | 1,407 |
| Receivables from Financial Services | 5,364 | 4,649 | 3,649 | | | | $(5,364) | $(4,649) | $(3,649) | | | |
| Trade accounts and notes receivable – net | 1,472 | 1,316 | 1,335 | 8,442 | 5,900 | 7,064 | (2,191) | (1,899) | (2,296) | 7,723 | 5,317 | 6,103 |
| Financing receivables – net | 106 | 88 | 84 | 42,754 | 44,487 | 43,846 | | | | 42,860 | 44,575 | 43,930 |
| Financing receivables securitized – net | 2 | 1 | 1 | 6,314 | 6,830 | 7,947 | | | | 6,316 | 6,831 | 7,948 |
| Other receivables | 1,926 | 1,809 | 2,013 | 594 | 658 | 867 | (54) | (64) | (54) | 2,466 | 2,403 | 2,826 |
| Equipment on operating leases – net | | | | 7,400 | 7,600 | 7,512 | | | | 7,400 | 7,600 | 7,512 |
| Inventories | 7,811 | 7,406 | 7,713 | | | | | | | 7,811 | 7,406 | 7,713 |
| Property and equipment – net | 7,975 | 8,047 | 7,680 | 31 | 32 | 33 | | | | 8,006 | 8,079 | 7,713 |
| Goodwill | 4,466 | 4,188 | 4,209 | | | | | | | 4,466 | 4,188 | 4,209 |
| Other intangible assets – net | 940 | 892 | 926 | | | | | | | 940 | 892 | 926 |
| Retirement benefits | 3,439 | 3,181 | 3,092 | 104 | 94 | 92 | (2) | (2) | (2) | 3,541 | 3,273 | 3,182 |
| Deferred income taxes | 2,487 | 2,507 | 2,471 | 47 | 46 | 44 | (191) | (269) | (306) | 2,343 | 2,284 | 2,209 |
| Other assets | 2,371 | 2,218 | 2,357 | 1,098 | 1,244 | 1,211 | (12) | (1) | (9) | 3,457 | 3,461 | 3,559 |
| Total Assets | $45,121 | $42,859 | $42,411 | $70,300 | $70,021 | $71,722 | $(7,814) | $(6,884) | $(6,316) | $107,607 | $105,996 | $107,817 |
| Liabilities and Stockholders’ Equity | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | |
| Short-term borrowings | $417 | $414 | $461 | $16,698 | $13,382 | $14,146 | | | | $17,115 | $13,796 | $14,607 |
| Short-term securitization borrowings | 1 | 1 | | 6,094 | 6,595 | 7,610 | | | | 6,095 | 6,596 | 7,610 |
| Payables to equipment operations | | | | 5,364 | 4,649 | 3,649 | $(5,364) | $(4,649) | $(3,649) | | | |
| Accounts payable and accrued expenses | 12,796 | 12,757 | 12,795 | 3,129 | 3,116 | 3,146 | (2,257) | (1,964) | (2,359) | 13,668 | 13,909 | 13,582 |
| Deferred income taxes | 326 | 347 | 393 | 276 | 356 | 402 | (191) | (269) | (306) | 411 | 434 | 489 |
| Long-term borrowings | 8,907 | 8,756 | 8,789 | 31,719 | 34,788 | 35,640 | | | | 40,626 | 43,544 | 44,429 |
| Retirement benefits and other liabilities | 1,586 | 1,646 | 1,767 | 67 | 66 | 71 | (2) | (2) | (2) | 1,651 | 1,710 | 1,836 |
| Total liabilities | 24,033 | 23,921 | 24,205 | 63,347 | 62,952 | 64,664 | (7,814) | (6,884) | (6,316) | 79,566 | 79,989 | 82,553 |
| Commitments and contingencies (Note 17) | | | | | | | | | | | | |
| Redeemable noncontrolling interest | 44 | 51 | 84 | | | | | | | 44 | 51 | 84 |
| Stockholders’ Equity | | | | | | | | | | | | |
| Total Deere & Company stockholders’ equity | 27,990 | 25,950 | 25,175 | 6,953 | 7,069 | 7,058 | (6,953) | (7,069) | (7,058) | 27,990 | 25,950 | 25,175 |
| Noncontrolling interests | 7 | 6 | 5 | | | | | | | 7 | 6 | 5 |
| Financial Services’ equity | (6,953) | (7,069) | (7,058) | | | | 6,953 | 7,069 | 7,058 | | | |
| Adjusted total stockholders’ equity | 21,044 | 18,887 | 18,122 | 6,953 | 7,069 | 7,058 | | | | 27,997 | 25,956 | 25,180 |
| Total Liabilities and Stockholders’ Equity | $45,121 | $42,859 | $42,411 | $70,300 | $70,021 | $71,722 | $(7,814) | $(6,884) | $(6,316) | $107,607 | $105,996 | $107,817 |
6 Elimination of receivables / payables between equipment operations and Financial Services.
7 Primarily reclassification of sales incentive accruals on receivables sold to Financial Services.
8 Reclassification of other receivables / payables.
9 Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.
10 Elimination of Financial Services’ equity.
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**DEERE & COMPANY**
**SUPPLEMENTAL CONSOLIDATING DATA (Continued)**
### STATEMENTS OF CASH FLOWS
_For the Nine Months Ended August 2, 2026 and July 27, 2025_
| Unaudited | EQUIPMENT / OPERATIONS / 2026 | EQUIPMENT / OPERATIONS / 2025 | FINANCIAL / SERVICES / 2026 | FINANCIAL / SERVICES / 2025 | ELIMINATIONS / 2026 | ELIMINATIONS / 2025 | CONSOLIDATED / 2026 | CONSOLIDATED / 2025 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Cash Flows from Operating Activities | | | | | | | | |
| Net income | $3,149 | $3,341 | $653 | $597 | | | $3,802 | $3,938 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| Provision (credit) for credit losses | (1) | 18 | 206 | 240 | | | 205 | 258 |
| Depreciation and amortization | 1,042 | 965 | 821 | 804 | $(76) | $(101) | 1,787 | 1,668 |
| Impairments and other adjustments | | 61 | | (32) | | | | 29 |
| Share-based compensation expense | | | | | 116 | 104 | 116 | 104 |
| Distributed earnings of Financial Services | 794 | 1,066 | | | (794) | (1,066) | | |
| Provision (credit) for deferred income taxes | 20 | (242) | (81) | 140 | | | (61) | (102) |
| Changes in assets and liabilities: | | | | | | | | |
| Receivables related to sales | (123) | (66) | | | (1,129) | (428) | (1,252) | (494) |
| Inventories | (330) | (423) | | | (113) | (103) | (443) | (526) |
| Accounts payable and accrued expenses | 61 | (646) | (34) | 69 | (293) | (140) | (266) | (717) |
| Accrued income taxes payable/receivable | (99) | (89) | (20) | (58) | | | (119) | (147) |
| Retirement benefits | (359) | (770) | (8) | (43) | | | (367) | (813) |
| Other | (142) | 123 | 71 | 182 | (81) | (39) | (152) | 266 |
| Net cash provided by operating activities | 4,012 | 3,338 | 1,608 | 1,899 | (2,370) | (1,773) | 3,250 | 3,464 |
| Cash Flows from Investing Activities | | | | | | | | |
| Collections of receivables (excluding receivables related to sales) | | | 20,261 | 20,178 | (339) | (466) | 19,922 | 19,712 |
| Proceeds from maturities and sales of marketable securities | 108 | 27 | 281 | 332 | | | 389 | 359 |
| Proceeds from sales of equipment on operating leases | | | 1,479 | 1,408 | | | 1,479 | 1,408 |
| Cost of receivables acquired (excluding receivables related to sales) | | | (19,351) | (19,189) | 212 | 227 | (19,139) | (18,962) |
| Acquisitions of businesses, net of cash acquired | (455) | (89) | | | | | (455) | (89) |
| Purchases of marketable securities | (42) | (133) | (319) | (465) | | | (361) | (598) |
| Purchases of property and equipment | (714) | (851) | (2) | (1) | | | (716) | (852) |
| Cost of equipment on operating leases acquired | | | (2,086) | (2,148) | 153 | 139 | (1,933) | (2,009) |
| Increase in investment in Financial Services | (5) | | | | 5 | | | |
| Increase in trade and wholesale receivables | | | (1,550) | (807) | 1,550 | 807 | | |
| Collections of receivables from unconsolidated affiliates | | 189 | 197 | 145 | | | 197 | 334 |
| Collateral on derivatives – net | 1 | 4 | (64) | 123 | | | (63) | 127 |
| Other | (72) | (75) | (73) | (156) | | | (145) | (231) |
| Net cash used for investing activities | (1,179) | (928) | (1,227) | (580) | 1,581 | 707 | (825) | (801) |
| Cash Flows from Financing Activities | | | | | | | | |
| Net proceeds (payments) in short-term borrowings (original maturities three months or less) | 18 | 294 | 3,187 | (2,354) | | | 3,205 | (2,060) |
| Change in intercompany receivables/payables | (735) | (660) | 735 | 660 | | | | |
| Proceeds from borrowings issued (original maturities greater than three months) | 430 | 2,188 | 4,943 | 8,519 | | | 5,373 | 10,707 |
| Payments of borrowings (original maturities greater than three months) | (262) | (863) | (8,076) | (6,880) | | | (8,338) | (7,743) |
| Repurchases of common stock | (697) | (1,136) | | | | | (697) | (1,136) |
| Capital investment from Equipment Operations | | | 5 | | (5) | | | |
| Dividends paid | (1,316) | (1,282) | (794) | (1,066) | 794 | 1,066 | (1,316) | (1,282) |
| Other | (27) | (25) | (28) | (18) | | | (55) | (43) |
| Net cash used for financing activities | (2,589) | (1,484) | (28) | (1,139) | 789 | 1,066 | (1,828) | (1,557) |
| Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | 22 | 96 | (2) | 12 | | | 20 | 108 |
| Net Increase in Cash, Cash Equivalents, and Restricted Cash | 266 | 1,022 | 351 | 192 | | | 617 | 1,214 |
| Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 6,364 | 5,643 | 2,169 | 1,990 | | | 8,533 | 7,633 |
| Cash, Cash Equivalents, and Restricted Cash at End of Period | $6,630 | $6,665 | $2,520 | $2,182 | | | $9,150 | $8,847 |
11 Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.
12 Reclassification of share-based compensation expense.
13 Elimination of dividends from Financial Services to the equipment operations, which are included in the equipment operations operating activities.
14 Primarily reclassification of receivables related to the sale of equipment.
15 Reclassification of direct lease agreements with retail customers.
16 Reclassification of sales incentive accruals on receivables sold to Financial Services.
17 Elimination of change in investment from equipment operations to Financial Services.
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## Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
See our most recently filed Annual Report on Form 10-K (Part II, Item 7A). There have been no material changes in this information.
## Item 4.CONTROLS AND PROCEDURES
Our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act)) were effective as of August 2, 2026, based on the evaluation of these controls and procedures required by Rule 13a-15(b) or 15d-15(b) of the Exchange Act. During the third quarter of 2026, there were no changes that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.
PART II. OTHER INFORMATION
## Item 1.Legal Proceedings
On January 15, 2025, the Federal Trade Commission (FTC), along with the Attorneys General of the States of Illinois and Minnesota, filed a lawsuit against us in the United States District Court for the Northern District of Illinois Western Division. The Attorneys General of the States of Arizona, Michigan, and Wisconsin then joined the lawsuit. On July 8, 2026, we entered into a settlement with the FTC and plaintiff states to resolve all claims contained in the lawsuit. As part of that settlement, we have agreed, among other items, to provide certain repair resources to farmers and independent repair providers on “fair and reasonable terms” (as defined by the settlement). We have also agreed to provide regular reporting to the FTC and submit to the FTC’s oversight of our compliance with the settlement.
In addition to the litigation described above, we are also involved in other legal actions. The most prevalent legal claims relate to product liability (including asbestos-related liability), employment, patent, trademark, and antitrust matters. Currently, we believe the reasonably possible range of losses for unresolved legal actions would not have a material effect on our financial statements; however, the outcome of any current or future proceedings, claims, or investigations cannot be predicted with certainty. Adverse decisions in one or more of these proceedings, claims, or investigations could require us to pay substantial damages or fines, undertake service actions, initiate recall campaigns, or take other costly measures. It is therefore possible that legal judgments or investigations could give rise to expenses that are not covered or not fully covered by our insurance programs and could affect our business, financial condition, or results.
## Item 1A.Risk Factors
See our most recently filed Annual Report on Form 10-K (Part I, Item 1A). The risks described in the Annual Report on Form 10-K, and the “Forward-Looking Statements” in this report, are not the only risks we face. Additional risks and uncertainties may also materially affect our business, financial condition, or operating results. One should not consider the risk factors to be a complete discussion of risks, uncertainties, and assumptions.
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## Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
**Issuer Purchases of Equity Securities**
Purchases of our common stock during the third quarter of 2026 were as follows:
| Period | Total Number of / Shares / Purchased / (thousands) | Average Price / Per Share | Total Number of / Shares Purchased as / Part of Publicly / Announced Plans or / Programs1 / (thousands) | Maximum Number of / Shares that May Yet Be / Purchased under the / Plans or Programs1 / (millions) |
| --- | --- | --- | --- | --- |
| May 4 to May 31 | | | | 12.5 |
| Jun 1 to Jun 28 | 176 | $593.97 | 176 | 12.3 |
| Jun 29 to Aug 2 | 157 | 598.96 | 157 | 12.2 |
| Total | 333 | | 333 | |
1 We have a share repurchase plan that was announced in December 2022 to purchase up to $18.0 billion of shares of our common stock. The maximum number of shares that may yet be purchased under this plan was 12.2 million based on the closing price of our common stock on the New York Stock Exchange as of the end of the third quarter of 2026 of $592.67 per share. At the end of the third quarter of 2026, $7.2 billion of common stock remains to be purchased under this plan.
## Item 3.Defaults Upon Senior Securities
None.
## Item 4.Mine Safety Disclosures
Not applicable.
## Item 5.Other Information
**Director and Executive Officer Trading Arrangements**
None.
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## Item 6.Exhibits
Certain instruments relating to long-term borrowings constituting less than 10% of the registrant’s total assets are not filed as exhibits herewith pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K. The registrant will furnish copies of such instruments to the Commission upon request.
| | |
| --- | --- |
| 3.1* | Restated Certificate of Incorporation (Exhibit 3.1 to Form 10-Q of registrant for the quarter ended July 28, 2019) |
| 3.2* | Bylaws, as amended (Exhibit 3.2 to Form 10-Q of registrant for the quarter ended July 30, 2023) |
| 10.1 | Separation, Release, and Cooperation Agreement, dated as of July 17, 2026, by and between Deere & Co. and Kellye Walker |
| 31.1 | Rule 13a-14(a)/15d-14(a) Certification |
| 31.2 | Rule 13a-14(a)/15d-14(a) Certification |
| 32 | Section 1350 Certifications (furnished herewith) |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
*Incorporated by reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
DEERE & COMPANY
Date: August 27, 2026 By: */s/ Brent Norwood*
Brent Norwood
Senior Vice President and Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)
49
---
## EX-10.1
SEC source: [de-20260802xex10d1.htm](https://www.sec.gov/Archives/edgar/data/315189/000110465926102213/de-20260802xex10d1.htm)
**Exhibit 10.1**
SEPARATION, RELEASE, AND COOPERATION AGREEMENT
This Separation, Release, AND Cooperation Agreement (“Separation Agreement” or “Agreement”) is between Kellye Walker (“Employee”), an individual, and Deere & Company (the “Company”).
Employee’s employment with the Company will terminate effective as of July 17, 2026 (the “Separation Date”), subject to the terms below. Employee’s last day of work was May 19, 2026. Employee and the Company have agreed to settle any actual or potential disputes completely now and forever, and in consideration of Employee’s agreement to the terms of this Separation Agreement, the Company has agreed to provide Employee the severance payment, as described below, which Employee agrees is in addition to whatever compensation or benefits Employee is already entitled to receive from the Company.
1.In exchange for and in the consideration of Employee’s release of claims and other promises set forth in this Separation Agreement, the Company and the Employee agree to the following considerations:
(A) Employee will be placed on a paid leave of absence from May 19, 2026 through July 17, 2026 (the “Paid Leave Period”). During the Paid Leave Period, Employee will receive a daily proration of monthly base pay (monthly pay being $71,400 (less applicable federal, state, and local tax withholdings)) in accordance with the Company’s regular payroll practices. Additionally, during the Paid Leave Period, Employee will be eligible for only the following active employee benefits: 401(k), healthcare insurance, and life insurance, all of which are subject to the terms and conditions of the applicable benefit plans and/or governing documents.
(B) Within 38 calendar days after the Employee executes this Agreement, subject to the non-revocation of this Agreement, as described in Section 12, Employee will receive an initial severance payment of $1,000,000.00 (less applicable federal, state, and local tax withholdings).
(C) Subject to Employee’s (i) continued cooperation with the Company pursuant to Section 15 for the six month period following the Separation Date, and (ii) continued compliance with the restrictive covenants set forth in Section 8 during the Restriction Period, within 15 calendar days after the end of the Restriction Period, Employee will receive an additional payment of $5,170,000.00 (less applicable federal, state, and local tax withholdings).
2.Employee’s heirs, successors, representatives and assigns hereby fully and forever release and discharge the Company, its parent, subsidiary and affiliated companies, and their respective officers, directors, employees, agents, insurers, consultants, successors and assigns from any and all demands,
claims, charges, or suits, known or unknown, arising at any time up to the date Employee signs this Agreement, which Employee, Employee’s heirs, successors, representatives or assigns have or may have against the Company, its parent, subsidiary or affiliated companies (an “affiliated company” or “affiliate” as used in this Agreement means any company or other entity in which the Company has an ownership interest), and/or their respective officers, directors, agents, employees, insurers, consultants, successors or assigns, regardless of what the claims are based upon and whether such claims arise or could arise under common law, tort law, contract law, and quasi-contract law (including but not limited to claims of breach of an express or implied contract, tortious interference with contract or prospective business advantage, breach of the covenant of good faith and fair dealing, promissory estoppel, detrimental reliance, invasion of privacy, nonphysical injury, personal injury or sickness or any other harm, wrongful or retaliatory discharge, fraud, defamation, slander, libel, false imprisonment, and negligent or intentional infliction of emotional distress) the labor laws or employment discrimination laws, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA), Employee Retirement Income Security Act (ERISA), (including, but not limited to, claims for breach of fiduciary duty under ERISA), the Equal Pay Act, the Worker Adjustment and Retraining Notification Act (WARN), the Families First Coronavirus Response Act, and the Coronavirus Aid, Relief, and Economic Security Act, including all amendments thereto, and any claims or rights arising under the state statutes, laws, and/or regulations identified in Attachment A of this Agreement as applicable, or under any other statute, rule, ordinance, or administrative regulation, whether of federal, state or local origin. Employee also agrees to waive any right to bring, maintain, participate as a member or representative in, receive notice of, or recover any relief from any class, collective, or representative action against the Company and/or any released parties to the fullest extent under law. Employee further agrees that if Employee is included within a class, collective, or representative action, Employee will opt-out of the action or refrain from opting in. All matters released and discharged are collectively referred to as “Released Claims.”
**Employee expressly understands and acknowledges that Employee is waiving and releasing any rights Employee may have under the Age Discrimination in Employment Act (“ADEA”) and the Older Workers Benefit Protection Act (“OWBPA”) and that this waiver and release is knowing and voluntary.**
Notwithstanding the generality of the foregoing, nothing herein constitutes a release or waiver by Employee of, or prevents Employee from making or asserting: (i) any claim or right Employee may have under COBRA; (ii) any claim or right Employee may have for unemployment insurance or workers’ compensation benefits; (iii) any claim to vested benefits under the written terms of a qualified employee pension benefit plan; (iv) any medical claim incurred during Employee’s employment that is payable under applicable medical plans or an employer-insured liability plan; (v) any claim or right that may arise after the execution of this Agreement; (vi) any claim or right Employee may have under this Agreement; or
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(vii) any claim that is not otherwise waivable under applicable law. In addition, nothing herein shall prevent Employee from filing a charge or complaint with the Equal Employment Opportunity Commission (“EEOC”), the National Labor Relations Board (“NLRB”), or similar federal or state agency or Employee’s ability to participate in any investigation or proceeding conducted by such agency; provided, however, that pursuant to Section 3, Employee is waiving any right to recover monetary damages or any other form of personal relief in connection with any such charge, complaint, investigation or proceeding. To the extent Employee receives any personal or monetary relief in connection with any such charge, complaint, investigation or proceeding, Employee hereby assigns it to the Company and/or the Company will be entitled to an offset for the payments made pursuant to Section 1 of this Agreement.
3.Nothing in this Separation Agreement, including the limitation on disclosures, confidentiality or release of claims clauses, restricts or prohibits Employee from initiating communications directly with, cooperating with, responding to any inquiries from, providing testimony before, participating in or otherwise assisting in an action or proceeding by, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or a federal, state or local government agency or entity, including the U.S. Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General (collectively, the “Regulators”), or from testifying or making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation, compelled by subpoena or similar legal process, or otherwise protected by law. Further, nothing in this Agreement precludes Employee from disclosing information relating to workplace issues, or from assisting coworkers or former coworkers, or from communicating with others, including third parties, a union, or the NLRB, about this Agreement or Employee’s employment, nor does this Agreement in any way restrict Employee from otherwise exercising Employee’s Section 7 rights under the NLRA. However, to the maximum extent permitted by law, Employee is waiving the right to receive any individual monetary relief from the Company or any others covered by the release of claims resulting from such claims or conduct, regardless of whether Employee or another party has filed them, and in the event Employee obtains such monetary relief, Employee hereby assigns it to the Company and/or the Company will be entitled to an offset for the payments made pursuant to Section 1 of this Agreement. This Agreement does not limit Employee’s right to receive an award from any Regulator that provides awards for providing information relating to a potential violation of law. Employee does not need the prior authorization of the Company to engage in conduct protected by this paragraph, and Employee does not need to notify the Company that Employee has engaged in such conduct. Despite the foregoing, Employee is not permitted to reveal to any third-party, including any Regulator, information Employee came to learn during the course of Employee’s employment with the Company that is protected from disclosure by any applicable privilege, including but not limited to the attorney-client privilege and/or attorney work product doctrine. The Company does not waive any applicable privileges or the right to continue to protect its privileged
3
attorney-client information, attorney work product, and other privileged information. Additionally, Employee recognizes that Employee’s ability to disclose information may be limited or prohibited by applicable law and the Company does not consent to disclosures that would violate applicable law.
Please take notice that federal law provides criminal and civil immunity to federal and state claims for trade secret misappropriation to individuals who disclose a trade secret to their attorney, a court, or a government official in certain, confidential circumstances that are set forth at 18 U.S.C. §§ 1833(b)(1) and 1833(b)(2), related to the reporting or investigation of a suspected violation of the law, or in connection with a lawsuit for retaliation for reporting a suspected violation of the law.
4.Employee agrees to return all property belonging to the Company (including without limitation all keys, access codes, and passwords associated with such property), including electronically stored documents or files and storage devices, physical documents or files, identification cards or badges, laptops, computers, cell phones, hand-held electronic devices, credit cards and any other Company property in Employee’s possession as of Employee’s last day of work. Employee agrees to fully cooperate with the Company with respect to: (a) any Company inquiries about any deletion, manipulation, removal or exfiltration of Company data or information from the Company’s systems or devices; and (b) the permanent deletion of any Company material (data or information) on any personal device or cloud service. Employee further acknowledges and agrees that Employee no longer has access to and does not claim ownership of any of the Company’s cloud storage or social media accounts. Notwithstanding the above, Employee may retain her personnel, compensation, benefit, tax, and payroll records.
5.Employee agrees that, following Employee’s Separation Date, Employee will refrain from applying for or accepting employment with the Company, or any parent, subsidiary or affiliate of the Company identified in Attachment C, and agrees that in the event Employee makes application for employment in violation of this Separation Agreement, Employee’s application legitimately and lawfully may be denied solely on that ground. Employee further agrees that any acceptance of employment with any entity identified in Attachment C by the Employee is a violation of this Agreement and Employee lawfully and legitimately may be terminated solely on that ground.
6.Subject to Section 3, Employee agrees that Employee shall not at any time make any written or verbal comments or statements that are deliberately or maliciously false or made with reckless disregard for the truth or falsity of the statement, regarding the Company or their products. The Company agrees to instruct the individuals identified in Attachment E not to, during their employment or affiliation with the Company, nor instruct or direct any other person to, make any written or verbal comments or statements that are deliberately or maliciously false or made with reckless disregard for the truth or falsity of the statement, regarding Employee or her employment.
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7.Subject to Section 3, Employee agrees that Employee will not use or give to others any trade secrets, confidential, or privileged information belonging to the Company or others with whom the Company does business. Examples of what may be considered as trade secrets or confidential information are designs, processes, systems, financial data, Company policies, customer information, sales and marketing data and plans, computer programs, writings, research and development information, plant closures or modifications, product or production engineering data, plans, and strategies. To the extent Employee executed an Employee Innovation and Proprietary Information Agreement, Employee Confidentiality and Intellectual Property Agreement, Non-Disclosure Agreement, or other agreement requiring confidentiality obligations to the Company (collectively, “Confidentiality Agreement”), Employee hereby acknowledges the existing obligations contained in the Confidentiality Agreement, which is hereby incorporated by this reference and agrees to be bound by the Confidentiality Agreement on an ongoing basis.
8.Employee acknowledges and agrees that the Company is engaged in a highly competitive and global business, and by virtue of Employee’s employment with the Company, Employee has had access to and possession of confidential and proprietary information regarding the Company’s global operations and, therefore, Company will suffer immediate and irreparable harm if Employee was to engage in the activity described in Sections 8(a) and 8(b) below (regardless of geographic location) following the Separation Date. Accordingly, in exchange for the consideration provided under this Agreement, Employee agrees to the following covenants:
(a) Non-Solicitation of Employees/Consultants. Employee agrees that during the Paid Leave Period and for the six-month period following the Separation Date (the “Restriction Period”), Employee will not, either directly or through others, hire or attempt to hire any employee, consultant or independent contractor of the Company, or solicit or attempt to solicit any such person to change or terminate their relationship with the Company or otherwise to become an employee, consultant or independent contractor to, for or of any other person or business entity, unless more than three months shall have elapsed between the last day of such person’s employment or service with the Company and the first day of such solicitation or hiring or attempt to solicit or hire. Consultants or independent contractors shall not include outside law firms, lawyers, legal-service providers, or professional service providers.
(b) Non-Solicitation of Business Relationships. Employee agrees that during the Restriction Period, Employee will not, either directly or through others, solicit, divert or appropriate, or attempt to solicit, divert or appropriate for the benefit of a Competitive Business, any actual or prospective dealer of the Company with whom Employee has engaged as part of Employee’s services to the Company within the final 12 months of her employment, or
5
regarding whom Employee learned, non-public confidential or proprietary information during Employee’s employment or service with the Company. The term “Competitive Business” means any activities or services with respect to the design, manufacture, or sale of technology, machinery, equipment or service parts which compete with the technology, machinery, equipment or service parts designed, manufactured or sold by the Company during Employee’s employment by the Company and (i) that are similar to the activities Employee has performed at any time during the last three years of Employee’s employment with the Company, or (ii) about which Employee obtained and/or had access to non-public confidential and proprietary information of the Company.
(c) Non-Competition. Employee acknowledges that, in the course of Employee’s employment and by virtue of Employee’s position as a senior executive, Employee has had access to highly confidential, proprietary, and competitively sensitive information regarding the Company’s business, strategy, operations, customers, suppliers, and workforce. Employee further acknowledges and agrees that the restrictions set forth herein are (1) reasonable and necessary to protect the Company’s legitimate business interests, and (2) do not restrict, minimize, or limit Employee’ ability to practice law. Accordingly, Employee agrees that during the Paid Leave Period and during the Restriction Period, Employee will not, directly or indirectly, whether as an employee, consultant, advisor, partner, investor (other than as a passive holder of less than two percent (2%) of any publicly traded company), or in any other non-legal capacity: (i) engage in, perform services for, or otherwise participate in any Competitive Business; or (ii) undertake any role or responsibilities with a Competitive Business that would reasonably be expected to result in the use or disclosure of the Company’s confidential or proprietary information. For purposes of this Agreement, “Competitive Business” shall mean the entities, including any of their parents, subsidiaries, or affiliates, identified in Attachment D. Employee agrees that the foregoing restrictions shall apply on a worldwide basis, recognizing the global scope of the Company’s business and Employee’s role therein. Notwithstanding the foregoing, nothing in this Section shall prohibit Employee from (1) being employed by a diversified organization that conducts a Competitive Business so long as Employee is not engaged in, and has no direct or indirect responsibilities relating to, the Competitive Business unit, or (2) engaging in the practice of law in any capacity. Employee acknowledges that the duration, scope, and geographic reach of this covenant are reasonable and necessary to protect the Company’s legitimate business interests and that the consideration provided under this Agreement is sufficient to support these restrictions.
6
(d) The parties agree that the covenants set forth above, to the extent they relate to the practice of law, shall be interpreted consistent with the Illinois Supreme Court Rules of Professional Responsibility, including but not limited to, Rules 1.6, 1.9, ad 5.6.
9.The parties agree that any violation of Sections 4, 5, 6, 7 or 8 of this Separation Agreement by Employee or any agent of Employee will cause irreparable damage to the Company and that it would be exceedingly difficult, if not impossible, to ascertain with certainty the monetary damages the Company would suffer as a result of such breach. However, it is not a violation of those sections for Employee to engage in privileged communications or to respond truthfully to service of process, subpoena, or other legally required communications. Subject to these qualifications, the parties agree that a violation of such provisions constitutes a material breach of this Agreement, and if a violation occurs, the breaching party shall be given written notice and a reasonable opportunity to cure. The Company shall be entitled to injunctive relief to restrain Employee or anyone acting on Employee’s behalf from violating this Agreement, in addition to monetary damages (including the return of the compensation received under this Agreement), and the costs of such suit, including attorney and expert witness fees. The parties further agree that if Employee violates the provisions of Section 7 or 8 of this Separation Agreement, all payments not yet made in accordance with Section 1(B) shall cease and the Company may require that Employee promptly repay any amounts already paid pursuant to Section 1(B).
10.Employee agrees that: (i) Employee has received all entitlements due from the Company relating to Employee’s employment with the Company, including, but not limited to, all wages earned, sick pay, vacation pay, overtime pay, and any unpaid personal leave for which Employee was eligible and entitled, and that no other entitlements are due to Employee other than accrued and unused vacation pay or as otherwise set forth in this Separation Agreement; and (ii) the Company shall have the right to deduct from the amounts payable pursuant to this Agreement any money owed to the Company by Employee pursuant to applicable law.
11.Employee acknowledges and agrees that Employee has read and fully understands and appreciates the legal consequences of executing this Separation Agreement; that Employee was given a copy of this Agreement and afforded at least 45 calendar days to consider this Agreement (and its Attachment B) before signing; that changes to the Company’s offer contained in this Agreement will not restart the 45-day consideration period; that the Company advises the Employee to consult with legal counsel before signing this Agreement; that Employee has consulted with legal counsel of Employee’s own choice (or at least has had ample opportunity to do so) before signing this Agreement; and that Employee has signed this Agreement voluntarily without pressure or coercion.
12.Employee understands that Employee may change Employee’s mind and may revoke this Separation Agreement for a period of seven calendar days following the day this Agreement is signed. Revocation must be in writing and mailed or delivered, before the end of the seven calendar day
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revocation period to the Company, to Andrew Moline, VP, Total Rewards, One John Deere Place, Moline, IL 61265. This Agreement may not be enforced until after the revocation period has expired.
13.Employee has received a listing (as Attachment B hereto) of the ages and job titles of employees in the Decisional Unit, described in Attachment B, who were selected for termination and eligible to receive severance pay in exchange for signing a release of claims, and the employees who were not selected for termination and not eligible to receive severance pay and benefits in exchange for signing a release of claims.
14.It is understood and agreed that neither the execution of this Separation Agreement nor the terms of the Agreement constitute an admission of liability or wrongdoing by either party, and such liability or wrongdoing is expressly denied. It is further understood and agreed that no person shall use this Agreement or the consideration paid pursuant thereto, as evidence of an admission of liability, inasmuch as such liability is expressly denied.
15.Employee agrees that Employee shall reasonably cooperate with the Company and its counsel (including, if necessary, preparation for and appearance at depositions, hearings, trials or other proceedings) with regard to any past, present or future legal or regulatory matters that relate to or arise out of matters Employee has knowledge about or has been involved with during Employee’s employment with the Company. The Company shall reimburse Employee for reasonable and documented travel and related costs incurred in connection with her cooperation. Employee’s agreement to this provision is a material inducement to the Company to enter into the Agreement and to pay the consideration described herein.
16.Consistent with Company bylaws and applicable indemnification agreements, the Company agrees to indemnify and defend Employee from all claims related to acts or omissions during her service, including but not limited through advancement, contribution, defense, director and officer (D&O) insurance, fiduciary liability insurance, professional liability coverage, excess liability coverage, and related protections. Those rights should be no less favorable than the protections provided to similarly situated current or former officers, directors, executives, fiduciaries, or employees.
17.Upon request by any prospective employer, the Company agrees to provide a neutral employment reference for Employee, which shall be limited to confirming Employee's dates of employment, position(s) held, and final salary. Unless required by law, regulation, subpoena, or court order, the Company shall not provide any other information, whether oral or written, positive or negative, regarding Employee's job performance or the reasons for the termination of their employment, to any party including but not limited to insurers, plan administrators, prospective employers, or search firms. Requests for references shall be directed to the Chief People Officer or her successor(s). The Company also agrees not to oppose Employee’s application for unemployment benefits.
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18.This Separation Agreement and all matters arising out of or relating to this Agreement and Employee’s employment or termination of employment with the Company, whether sounding in contract, tort, or statute, for all purposes shall be governed by and construed in accordance with the laws of Illinois (including its statutes of limitations) without regard to any conflicts of laws principles that would require the laws of any other jurisdiction to apply. Any action or proceeding by either the Company or Employee to enforce this Agreement shall be brought only via binding arbitration at the American Arbitration Association (“AAA”) in Chicago, Illinois, with the option to appear remotely, pursuant to the AAA Employment Rules in effect as of the date this Agreement is executed.
19.This Separation Agreement contains all the terms and conditions agreed upon, and unless otherwise stated herein supersedes all other agreements, oral or otherwise, regarding the subject matters set forth in this Agreement. If any part of this Agreement other than Section 2 is deemed invalid or unenforceable, it shall be considered severed and deleted from this Agreement entirely without affecting any of the other terms and conditions of this Agreement, which shall remain in full force and effect as written. Section 2 shall at all times be considered an essential provision of this Agreement for all purposes. Employee agrees that no other representations, promises, or agreements have been made or are being relied upon in voluntarily signing this Agreement. This Agreement may not be modified, altered, or changed except in writing, with specific reference to this Agreement, signed by both Employee and the Company.
20.It is the intention of the parties that payments or benefits payable under this Agreement comply with or be exempt from Section 409A of the U.S. Internal Revenue Code of 1986, as amended and the applicable Treasury regulations and administrative guidance issued thereunder (collectively, “Section 409A”), and not be subject to the additional tax imposed pursuant to Section 409A. For purposes of Section 409A, Employee’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits under this Agreement are exempt from, or compliant with, Section 409A, and in no event shall the Company or any of its affiliates or subsidiaries be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Employee on account of non-compliance with Section 409A.
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IN WITNESS WHEREOF, the parties have knowingly and voluntarily executed this Separation Agreement on the date so indicated.
DEERE & COMPANY
*/s/ Kellye L. Walker* By: */s/ Felecia J. Pryor*
**Kellye Walker** Title: Senior Vice President & CPO
Date: July 17, 2026 Date: July 17, 2026
**THE COMPANY HEREBY ADVISES YOU TO CONSULT WITH AN ATTORNEY OF YOUR OWN CHOICE BEFORE SIGNING THIS SEPARATION AGREEMENT AND RELEASE. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK**
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---
## EX-31.1
SEC source: [de-20260802xex31d1.htm](https://www.sec.gov/Archives/edgar/data/315189/000110465926102213/de-20260802xex31d1.htm)
**Exhibit 31.1**
**CERTIFICATIONS**
I, John C. May, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Deere & Company;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: August 27, 2026 By: */s/ John C. May*
John C. May
Chairman and Chief Executive Officer
(Principal Executive Officer)
---
## EX-31.2
SEC source: [de-20260802xex31d2.htm](https://www.sec.gov/Archives/edgar/data/315189/000110465926102213/de-20260802xex31d2.htm)
**Exhibit 31.2**
**CERTIFICATIONS**
I, Brent Norwood, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Deere & Company;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: August 27, 2026 By: */s/ Brent Norwood*
Brent Norwood
Senior Vice President and Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)
---
## EX-32
SEC source: [de-20260802xex32.htm](https://www.sec.gov/Archives/edgar/data/315189/000110465926102213/de-20260802xex32.htm)
**EXHIBIT 32**
**STATEMENT PURSUANT TO**
**18 U.S.C. SECTION 1350**
**AS REQUIRED BY**
**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**
In connection with the Quarterly Report on Form 10-Q of Deere & Company (the “Company”) for the period ended August 2, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
August 27, 2026
*/s/ John C. May* Chairman and Chief Executive Officer
John C. May (Principal Executive Officer)
August 27, 2026 */s/ Brent Norwood* Senior Vice President and Chief Financial Officer
Brent Norwood (Principal Financial Officer and Principal
Accounting Officer)