DEERE & CO [DE] Filings

10-Q 1 de-20230730x10q.htm 10-Q

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 July 30, 2023

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

For the transition period from ____ to ____

Commission file no: 1-4121

DEERE & COMPANY

(Exact name of registrant as specified in its charter)


Delaware (State of incorporation)		36-2382580 (IRS employer identification no.)

One John Deere Place

Moline, Illinois 61265

(Address of principal executive offices)

Telephone Number: (309) 765-8000

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


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

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

Yes ☒ No ☐

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

Yes ☒ No ☐

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


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

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

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

Yes ☐ No ☒

At July 30, 2023, 288,000,577 shares of common stock, $1 par value, of the registrant were outstanding.

PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED INCOME
For the Three and Nine Months Ended July 30, 2023 and July 31, 2022
(In millions of dollars and shares except per share amounts) Unaudited
	Three Months Ended				Nine Months Ended
	2023		2022		2023		2022
Net Sales and Revenues
Net sales	$	14,284	$	13,000	$	41,765	$	33,565
Finance and interest income		1,253		846		3,326		2,441
Other income		264		256		748		1,035
Total		15,801		14,102		45,839		37,041

Costs and Expenses
Cost of sales		9,624		9,511		28,288		25,124
Research and development expenses		528		481		1,571		1,336
Selling, administrative and general expenses		1,110		959		3,392		2,672
Interest expense		623		296		1,671		713
Other operating expenses		310		316		971		954
Total		12,195		11,563		35,893		30,799

Income of Consolidated Group before Income Taxes		3,606		2,539		9,946		6,242
Provision for income taxes		636		654		2,164		1,364

Income of Consolidated Group		2,970		1,885		7,782		4,878
Equity in income of unconsolidated affiliates		2				5		8

Net Income		2,972		1,885		7,787		4,886
Less: Net income (loss) attributable to noncontrolling interests		(6)		1		(10)		1
Net Income Attributable to Deere & Company	$	2,978	$	1,884	$	7,797	$	4,885

Per Share Data
Basic	$	10.24	$	6.20	$	26.48	$	15.97
Diluted		10.20		6.16		26.35		15.88
Dividends declared		1.25		1.13		3.70		3.23
Dividends paid		1.25		1.05		3.58		3.15

Average Shares Outstanding
Basic		290.8		304.1		294.4		305.8
Diluted		292.1		305.7		295.9		307.7

See Condensed Notes to Interim Consolidated Financial Statements.


DEERE & COMPANY
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
For the Three and Nine Months Ended July 30, 2023 and July 31, 2022
(In millions of dollars) Unaudited
	Three Months Ended				Nine Months Ended
	2023		2022		2023		2022

Net Income	$	2,972	$	1,885	$	7,787	$	4,886

Other Comprehensive Income (Loss), Net of Income Taxes
Retirement benefits adjustment		(9)		79		(267)		(137)
Cumulative translation adjustment		144		(269)		925		(784)
Unrealized gain (loss) on derivatives		5		(1)		(26)		41
Unrealized gain (loss) on debt securities		(13)		6		13		(57)
Other Comprehensive Income (Loss), Net of Income Taxes		127		(185)		645		(937)

Comprehensive Income of Consolidated Group		3,099		1,700		8,432		3,949
Less: Comprehensive income (loss) attributable to noncontrolling interests		(5)		(3)		2		(8)
Comprehensive Income Attributable to Deere & Company	$	3,104	$	1,703	$	8,430	$	3,957

See Condensed Notes to Interim Consolidated Financial Statements.


DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
	July 30		October 30		July 31
	2023		2022		2022
Assets
Cash and cash equivalents	$	6,576	$	4,774	$	4,359
Marketable securities		841		734		719
Trade accounts and notes receivable – net		9,297		6,410		6,696
Financing receivables – net		41,302		36,634		35,056
Financing receivables securitized – net		7,001		5,936		5,141
Other receivables		3,118		2,492		1,999
Equipment on operating leases – net		6,709		6,623		6,554
Inventories		9,350		8,495		9,121
Property and equipment – net		6,418		6,056		5,666
Goodwill		3,994		3,687		3,754
Other intangible assets – net		1,199		1,218		1,281
Retirement benefits		3,573		3,730		3,125
Deferred income taxes		1,360		824		1,110
Other assets		2,659		2,417		2,236
Total Assets	$	103,397	$	90,030	$	86,817

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	17,143	$	12,592	$	14,176
Short-term securitization borrowings		6,608		5,711		4,920
Accounts payable and accrued expenses		15,340		14,822		12,986
Deferred income taxes		506		495		561
Long-term borrowings		38,112		33,596		32,132
Retirement benefits and other liabilities		2,536		2,457		2,911
Total liabilities		80,245		69,673		67,686

Commitments and contingencies (Note 16)
Redeemable noncontrolling interest		101		92		95

Stockholders’ Equity
Common stock, $1 par value (issued shares at July 30, 2023 – 536,431,204)		5,272		5,165		5,139
Common stock in treasury		(28,760)		(24,094)		(22,976)
Retained earnings		48,947		42,247		40,346
Accumulated other comprehensive income (loss)		(2,411)		(3,056)		(3,476)
Total Deere & Company stockholders’ equity		23,048		20,262		19,033
Noncontrolling interests		3		3		3
Total stockholders’ equity		23,051		20,265		19,036
Total Liabilities and Stockholders’ Equity	$	103,397	$	90,030	$	86,817

See Condensed Notes to Interim Consolidated Financial Statements.


DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Nine Months Ended July 30, 2023 and July 31, 2022
(In millions of dollars) Unaudited
	2023		2022
Cash Flows from Operating Activities
Net income	$	7,787	$	4,886
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (credit) for credit losses		(64)		62
Provision for depreciation and amortization		1,527		1,443
Impairments and other adjustments		173		81
Share-based compensation expense		112		64
Gain on remeasurement of previously held equity investment				(326)
Credit for deferred income taxes		(429)		(6)
Changes in assets and liabilities:
Receivables related to sales		(5,059)		(2,357)
Inventories		(663)		(2,526)
Accounts payable and accrued expenses		47		(15)
Accrued income taxes payable/receivable		(595)		82
Retirement benefits		(116)		(1,014)
Other		176		44
Net cash provided by operating activities		2,896		418

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)		17,592		15,774
Proceeds from sales of equipment on operating leases		1,445		1,501
Cost of receivables acquired (excluding receivables related to sales)		(20,714)		(18,578)
Acquisitions of businesses, net of cash acquired		(82)		(488)
Purchases of property and equipment		(887)		(596)
Cost of equipment on operating leases acquired		(1,968)		(1,717)
Collateral on derivatives - net		240		(193)
Other		(189)		(133)
Net cash used for investing activities		(4,563)		(4,430)

Cash Flows from Financing Activities
Increase in total short-term borrowings		5,040		4,267
Proceeds from long-term borrowings		9,972		6,281
Payments of long-term borrowings		(5,862)		(6,578)
Repurchases of common stock		(4,663)		(2,477)
Dividends paid		(1,065)		(971)
Other		(43)		(7)
Net cash provided by financing activities		3,379		515

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		125		(143)

DEERE & CO [DE] Filings
10-Q	[2023-08-31]
10-Q	[2023-06-01]
10-Q	[2023-02-23]
10-K	[2022-12-15]
10-Q	[2022-09-01]
10-Q	[2022-05-26]
10-Q	[2022-02-24]
10-K	[2021-12-16]
10-Q	[2021-08-26]
10-Q	[2021-05-27]
10-Q	[2021-02-25]
10-K	[2020-12-17]
10-Q	[2020-08-27]
10-Q	[2020-05-28]
10-Q	[2020-02-27]
10-K	[2019-12-19]
10-Q	[2019-08-29]
10-Q	[2019-05-30]
10-Q	[2019-02-28]
10-K	[2018-12-17]
10-Q	[2018-08-30]
10-Q	[2018-05-31]
10-Q	[2018-03-01]
10-K	[2017-12-18]
10-Q	[2017-08-31]
10-Q	[2017-06-02]
10-Q	[2017-02-24]
10-K	[2016-12-19]
10-Q	[2016-09-01]
10-Q	[2016-05-26]
10-Q	[2016-02-25]
10-K	[2015-12-18]
10-Q	[2015-08-27]
10-Q	[2015-05-28]
10-Q	[2015-02-26]
10-K	[2014-12-19]
10-Q	[2014-08-28]
10-Q	[2014-05-29]
10-Q	[2014-02-27]
10-K	[2013-12-16]
10-Q	[2013-08-29]
10-Q	[2013-05-30]
10-Q	[2013-02-28]
10-K	[2012-12-17]
10-Q	[2012-08-30]
10-Q	[2012-05-31]
10-Q	[2012-03-01]