Deere & Co. (DE) 10-K risk factor changes: FY2021 vs FY2020

The following risks are considered material to John Deere’s business based upon current knowledge, [removed: information] [added: information,] and assumptions.

This discussion of risk factors should be considered closely in conjunction with Management’s Discussion and Analysis [added: of Financial Condition and Results of Operations] beginning on page [removed: 24,] [added: 27,] including the risks and uncertainties described in the Safe Harbor Statement on pages [removed: 27] [added: 37] – [removed: 29,] [added: 39,] and the Notes to Consolidated Financial Statements beginning on page [removed: 44.][added: 49.]

These risk factors and other forward-looking statements that relate to future events, expectations, [removed: trends] [added: trends,] and operating periods involve certain factors that are subject to [removed: change,] [added: change] and important risks and uncertainties that could cause actual results to differ materially.

Although the risks are organized by [removed: headings,] [added: headings] and each risk is discussed separately, many are interrelated.

_The COVID pandemic resulted in additional risks that could materially adversely affect John Deere’s business, financial condition, results of [removed: operations] [added: operations,] and/or cash flows._

[added: The virus causing] COVID was identified in late 2019 and [removed: has] spread [removed: globally.][added: globally (COVID pandemic).]

The pandemic [removed: has] resulted in governments and other authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter in place [removed: orders] [added: orders,] and business closures.

These measures have impacted and may [removed: further] [added: continue to] impact all or portions of [removed: the Company’s] [added: John Deere’s] workforce and operations and the operations of [removed: customers] [added: customers, dealers,] and suppliers.

[removed: Restrictions on access to the Company’s manufacturing facilities or on the support operations or workforce, or similar limitations for suppliers and dealers, restrictions or disruptions of transportation, port closures, increased border controls or closures, and] [added: Current] material and component shortages have limited and could continue to limit [removed: the Company’s] [added: John Deere’s] ability to meet customer demand, which could have a material adverse effect on the Company’s financial condition, cash [removed: flows] [added: flows,] and results of operations.

The COVID pandemic caused a global recession and [removed: there is no certainty about when a sustained] [added: the sustainability of the] economic recovery [removed: may occur.][added: observed in 2021 remains unclear.]

The COVID pandemic has also significantly increased economic and demand [removed: uncertainty] [added: uncertainty, has caused inflationary pressure in the U.S.] and [added: elsewhere, and] has led to disruption and volatility in demand for [removed: the Company’s] [added: John Deere’s] products and services, suppliers’ ability to fill orders, and global capital markets.

Economic uncertainties could continue to affect demand for [removed: the Company’s] [added: John Deere’s] products and services, the value of the equipment financed or leased, the demand for [removed: financing] [added: financing,] and the financial condition and credit risk of [removed: our] [added: John Deere’s] dealers and customers.

[removed: Uncertainties] [added: Continued uncertainties] related to the [removed: magnitude] [added: magnitude, duration,] and [removed: duration] [added: persistent effects] of the COVID pandemic may significantly adversely affect our business and outlook.

These uncertainties [removed: include:] [added: include, among other things:] the duration and impact of the resurgence in COVID cases in any country, state, or region; [removed: prolonged reduction or closure] [added: the emergence, contagiousness, and threat] of [added: new and different strains of virus;] the [removed: Company’s operations, or a delayed recovery in our operations;] [added: availability, acceptance, and effectiveness of vaccines;] additional closures [added: or other actions] as mandated or otherwise made necessary by governmental [removed: authorities;] [added: authorities, including employee vaccine mandates;] disruptions in the supply [removed: chain] [added: chain, including those caused by industry capacity constraints, material availability,] and [added: global logistics delays and constraints arising from, among other things, the transportation capacity of ocean shipping containers, and] a prolonged delay in resumption of operations by one or more key suppliers, or the failure of any key [removed: suppliers;] [added: supplier; an increasingly competitive labor market due to a sustained labor shortage or increased turnover caused by] the [removed: Company’s] [added: COVID pandemic; John Deere’s] ability to meet commitments to [removed: our] customers on a timely basis as a result of increased costs and supply [removed: challenges; the ability to receive goods on a timely basis] and [removed: at anticipated costs;] [added: transportation challenges;] increased logistics costs; [removed: delays in the Company’s strategic initiatives as a result of reduced spending on research and development;] additional operating costs due to [added: continued] remote working arrangements, adherence to social distancing [removed: guidelines] [added: guidelines,] and other COVID-related challenges; increased risk of [removed: cyber attacks] [added: cyberattacks] on network connections used in remote working arrangements; increased privacy-related risks due to processing health-related personal information; legal claims related to personal protective equipment designed, made, or provided by [removed: the Company] [added: John Deere] or alleged exposure to COVID on [removed: Company] [added: John Deere] premises; absence of employees due to illness; [removed: the impact of the pandemic on the Company’s customers] and [removed: dealers, and their delays in their plans to invest in new equipment; requests by] the [removed: Company’s customers or dealers for payment deferrals and contract modifications; the] impact of [removed: disruptions in] the [removed: global capital markets and/or declines in our financial performance, outlook or credit ratings, which could impact the Company’s ability to obtain funding in the future; and the impact of the] pandemic on [removed: demand for our products] [added: John Deere’s customers] and [removed: services as discussed above.][added: dealers.]

[removed: All of these factors] [added: These factors, and others that are currently unknown or considered immaterial,] could materially and adversely affect [removed: our] [added: the Company’s] business, liquidity, results of [removed: operations] [added: operations,] and financial position.

_International, [removed: national] [added: national,] and regional trade laws, [removed: regulations] [added: regulations,] and policies (particularly those related to or restricting global trade) and government farm programs and policies could significantly impair John Deere’s profitability and growth prospects._

International, [removed: national] [added: national,] and regional laws, [removed: regulations] [added: regulations,] and policies directly or indirectly related to or restricting the import and export of John Deere’s products, [removed: services] [added: services,] and technology, or those of our customers, including protectionist policies in particular jurisdictions or for the benefit of favored industries or sectors, could harm John Deere’s [removed: multinational business and subject John Deere to civil and criminal sanctions for violations.][added: global business.]

Restricted access to global markets impairs John Deere’s ability to export goods and services from its various manufacturing locations around the [removed: world,] [added: world] and limits the ability to access raw materials and [removed: high quality] [added: high-quality] parts and components at competitive prices on a timely basis.

Trade restrictions, including withdrawal from or modification of existing trade agreements, negotiation of new trade agreements, [added: non-tariff trade barriers, local content requirements,] and imposition of new [removed: (and retaliatory)] [added: or retaliatory] tariffs against certain countries or covering certain products, including developments in U.S.-China trade relations, could limit John Deere’s ability to capitalize on current and future growth opportunities in international markets and impair John Deere’s ability to expand the business by offering new technologies, [removed: products] [added: products,] and services.

These trade restrictions, and changes in–or uncertainty surrounding–global trade [removed: policies] [added: policies,] may affect John Deere’s competitive position.

Furthermore, trade restrictions could impede those in developing countries from achieving a higher standard of living, which could negatively impact John Deere’s future growth opportunities arising from increasing global demand for food, [removed: fuel] [added: fuel,] and infrastructure.

Additionally, changes in government farm programs and policies, including direct payment and other subsidies, can significantly influence demand for agricultural [removed: equipment.][added: equipment as well as create unequal competition for multinational companies relative to domestic companies.]

[removed: Furthermore, embargoes,] [added: Embargoes,] sanctions, and export controls imposed by the U.S. and other governments restricting or prohibiting transactions with certain persons or entities, including financial institutions, to certain countries or regions, or involving certain products, limit the sales of [removed: Deere products and expose] John Deere [removed: to potential criminal and civil sanctions.][added: products.]

Embargoes, sanctions, and export control laws are changing rapidly for certain geographies, including with respect to [removed: Russia,] China, [removed: Venezuela,] [added: Russia, Myanmar (Burma),] and [removed: Nicaragua.][added: Belarus.]

In particular, changing U.S. export controls and sanctions on China, as well as other restrictions affecting transactions involving China and Chinese parties, could affect John Deere’s ability to collect receivables, provide aftermarket and warranty support for John Deere equipment, [added: and] sell products, and otherwise impact [added: John] Deere’s reputation and business.

_Greater political, [removed: economic] [added: economic,] and social uncertainty and the evolving globalization of businesses could significantly change the dynamics of John Deere’s competition, customer [removed: base] [added: base,] and product offerings and impact John Deere’s growth opportunities globally._

John Deere’s efforts to grow its businesses depend [removed: to a large extent] [added: in part] upon access to additional geographic markets, including, but not limited to, Argentina, Brazil, China, [removed: India and] [added: India,] Russia, and [added: South Africa, and] its success in developing market share and operating profitably in such markets.

In some cases, these countries have greater political and economic volatility, greater vulnerability to infrastructure and labor [removed: disruptions] [added: disruptions,] and differing local customer product preferences and requirements than John Deere’s other markets.

Operating and seeking to expand business in a number of different regions and countries exposes John Deere to multiple and potentially conflicting cultural practices, business [removed: practices] [added: practices,] and legal and regulatory requirements that are subject to [removed: change,] [added: change and are often complex and difficult to navigate,] including those related to tariffs and trade barriers, investments, property ownership rights, taxation, sanctions and export control requirements, repatriation of [removed: earnings] [added: earnings,] and advanced technologies.

Expanding business operations globally also increases exposure to currency [removed: fluctuations] [added: fluctuations,] which can materially affect the Company’s financial results.

While John Deere maintains a positive corporate image and its brands are widely recognized and valued in its traditional markets, the brands are less well known in some emerging [removed: markets] [added: markets,] which could impede John Deere’s efforts to successfully compete in these markets.

_Negative economic conditions and outlook can materially weaken demand for John Deere’s equipment and services, limit access to [removed: funding] [added: funding,] and result in higher funding costs._

The demand for John Deere’s products and services can be significantly reduced in an economic environment characterized by high unemployment, cautious consumer spending, lower corporate earnings, U.S. budget [removed: issues] [added: issues,] and lower business investment.

Negative or uncertain economic conditions [removed: causing] [added: that cause] John Deere’s customers to lack confidence in the general economic outlook can significantly reduce their likelihood of purchasing John Deere’s equipment.

As discussed under Risks Related to the COVID Pandemic–_The COVID pandemic resulted in additional risks that could materially adversely affect John Deere’s business, financial condition, results of [removed: operations] [added: operations,] and/or cash flows_, the COVID pandemic caused a global recession and significantly increased economic and demand uncertainty.

Sustained negative economic conditions and outlook affect housing starts, energy demand, and other [removed: construction] [added: construction,] which dampens demand for certain construction equipment.

In addition, demand for John Deere’s products and services can be significantly reduced by concerns regarding the diverse economic and political circumstances of the individual countries in the eurozone, the debt burden of certain eurozone countries and their ability to meet future financial obligations, [removed: uncertainty following] the [removed: withdrawal of the United Kingdom from the European Union, the] risk that one or more other European Union countries could come under increasing pressure to leave the European Union, or the long term stability of the euro as a single common currency.

Persistent disparity with respect to the widely varying economic conditions within the individual countries in the eurozone, and its implications for the euro as well as market perceptions concerning these and related issues, could adversely affect the value of [removed: the Company’s] [added: John Deere’s] euro-denominated assets and obligations, have an adverse effect on demand for John Deere’s products and services in the [removed: eurozone] [added: eurozone,] and have an adverse effect on financial markets in Europe and globally.

More specifically, it could affect the ability of John Deere’s customers, [removed: suppliers] [added: suppliers,] and lenders to finance their respective [removed: businesses, to] [added: businesses and] access liquidity at acceptable financing costs, if at all, [removed: and] [added: as well as] the availability of supplies and materials and [removed: on] the demand for John Deere’s products.

_Changes in government banking, [removed: monetary] [added: monetary,] and fiscal policies could have a negative effect on John Deere._

Efforts to combat the virus have been complicated by viral variants and uneven access to, and acceptance and effectiveness of, vaccines globally.

Although certain restrictions related to the COVID pandemic have eased, uncertainty continues to exist regarding such measures and potential future measures.

​

Failure of the U.S. federal government to pass a 2022 budget resolution could lead to a U.S. default under its sovereign debt, the consequences of which could have significant and unpredictable effects on global financial markets, which could in turn negatively affect John Deere’s operating results, cash flows, and financial condition.

_The transition away from the London Interbank Offered Rate (“LIBOR”) and the adoption of alternative reference rates could adversely affect John Deere’s business and results of operations._

John Deere is exposed to LIBOR-based financial instruments, primarily relating to debt, derivative, and receivables transactions, that have been entered into previously and remain outstanding.

In November 2020, the Intercontinental Exchange announced its intention to cease publication of certain LIBOR settings by the end of 2021 while continuing to publish overnight and one-, three-, six-, and twelve-month U.S. dollar LIBOR rates through June 30, 2023.

However, in early 2021, the United States Federal Reserve Board and other regulatory bodies issued guidance encouraging banks and other financial market participants to cease entering into new contracts that use U.S. dollar LIBOR as a reference rate as soon as practicable and in any event no later than December 31, 2021.

To facilitate an orderly transition from LIBOR to alternative benchmark rate(s), John Deere has established an initiative led by internal subject matter experts to assess and mitigate risks associated with the discontinuation of LIBOR.

As part of this initiative, several alternative benchmark rates have been, and continue to be, evaluated.

LIBOR exactly, which could affect John Deere’s contracts that mature after a LIBOR cessation date.

A failure to properly transition away from LIBOR could expose John Deere to various financial, operational, and regulatory risks, which could affect its results of operations and cash flows.

Significant disruptions to the supply chain resulting from shortages of raw materials, components,

As discussed under Item 1, “Construction and Forestry,” the Company agreed to voluntarily terminate its joint venture agreement with Hitachi in a transaction that is expected to close in the first half of fiscal 2022.

In connection with this termination, John Deere Construction & Forestry Company, a wholly-owned subsidiary of the Company, has entered into a supply agreement with Hitachi pursuant to which Hitachi will continue to provide John Deere-branded excavators, components, and service parts.

Any delay or failure by Hitachi to deliver these supplies, or failure by Hitachi to produce such supplies in a manner that meets John Deere’s quality and quantity requirements, could adversely affect John Deere’s business, results of operations, cash flow, and financial condition or its ability to meet commitments to its customers.

In 2020, the COVID pandemic caused a significant reduction in global demand for goods, resulting in widespread cuts in manufacturing capacity and the displacement of workers.

As economies around the world have reopened in 2021, sharp increases in demand have created significant disruptions to the global supply chain, which have affected John Deere’s ability to receive goods on a timely basis and at anticipated costs.

These supply chain disruptions have been caused and compounded by many factors, including changes in supply and demand, industry capacity constraints, weather conditions, natural disasters, business continuity, labor shortages, the COVID pandemic, geopolitical tensions, and trade conflicts.

Global logistics network challenges include shortages of shipping containers, ocean freight capacity constraints, international port delays, trucking and chassis shortages, railway and air freight capacity, and labor availability constraints, which have resulted in delays, shortages of key manufacturing components, increased order backlogs, and increased transportation costs.

John Deere actively monitors and mitigates supply chain risk, but there can be no assurance that our mitigation plans will be effective to prevent disruptions that may arise from shortages of materials that we use in the production of our products.

Uncertainties related to the magnitude and duration of global supply chain disruptions have adversely affected, and may continue to adversely affect, John Deere’s business and outlook.

Although John Deere has not suffered any significant cyber incidents that resulted in material business impact, we have from time to time been the target of malicious cyber threat actors.

_Security breaches with respect to John Deere’s products could interfere with the business of John Deere, its dealers, and/or customers, exposing John Deere to liability that would cause its business and reputation to suffer._

Some of John Deere’s products include connectivity hardware typically used for remote system updates.

While John Deere has implemented security measures intended to prevent unauthorized access to its products, malicious actors have reportedly attempted, and may attempt in the future, to gain unauthorized access to such products through such connectivity hardware in order to gain control of the products, change the products’ functionality, user interface, or performance characteristics, or gain access to data stored in or generated by the products.

Any unauthorized access to or control of John Deere products or systems or any loss of data could result in legal claims against John Deere or government investigations.

In addition, reports of unauthorized access to John Deere’s products, systems, and data, regardless of their veracity, may result in the perception that the products, systems, or data are capable of being hacked, which could harm John Deere’s brand, prospects, and operating results.

John Deere has been the subject of such reports in the past.

other employers and industries since 2020.

The failure of John Deere to successfully renegotiate labor agreements as they expire has from time to time led, and could in the future lead, to work stoppages or other disputes with labor unions.

On October 14, 2021, after employees represented by the UAW failed to approve a new collective bargaining agreement between John Deere and the UAW, the UAW initiated a labor strike affecting more than 10,000 workers at 14 John Deere facilities across the U.S., which adversely affected John Deere’s operations in the fourth quarter of fiscal 2021.

The strike ended after a new collective bargaining agreement was approved on November 17, 2021.

The UAW strike is expected to have an adverse effect on John Deere’s results of operations for the three months ending January 30, 2022 as a result of reduced production and shipments.

engines, which could negatively impact business results.

Additionally, in certain locations governments have banned or may in the future ban internal combustion engines for some types of products completely.

To the extent these bans affect products manufactured and sold by John Deere, our business, results of operations, and financial condition could be negatively affected.

_Governmental actions designed to address climate change and the emergence of new technologies and business models in connection with the transition to a lower-carbon economy could adversely affect John Deere and its customers.

Customer preferences in the markets served by John Deere could change as these markets transition to less carbon-intensive business models.

Demand for electric agricultural, turf, and construction equipment could rise.

Countries around the world have been affected by the pandemic and have taken containment actions.

Considerable uncertainty exists regarding such measures and potential future measures.

There is no certainty that measures taken by governmental authorities will be sufficient to mitigate the risks posed by the virus, and the Company’s ability to perform critical functions could be harmed.

It is unclear when a sustained economic recovery could occur and what a recovery may look like.

The ultimate magnitude of COVID effects, including the extent of its impact on the Company’s financial and operational results, which could be material, will be determined by the length of time that the pandemic continues, its effect on the demand for the Company’s products and services and the supply chain, as well as the effect of governmental regulations imposed in response to the pandemic.

We cannot at this time predict the impact of the COVID pandemic, but it could have a material adverse effect on our business, financial condition, results of operations and/or cash flows.

The financial services segment may experience credit losses that exceed its expectations and adversely affect its financial condition and results of operations.

_Changes affecting the availability of the London Interbank Offered Rate (“LIBOR”) may have consequences for John Deere that may not yet be reasonably predicted._

The Company has outstanding debt, derivative and receivable transactions with variable interest rates based on LIBOR.

Alternative benchmark rate(s) may replace LIBOR and could affect the Company's debt securities, derivative instruments, receivables, debt payments and receipts.

In addition, any changes to benchmark rates may have an uncertain impact on our cost of funds and our access to the capital markets, which could impact our results of operations and cash flows.

For example, during fiscal 2020, some of the Company’s operations were temporarily impacted by certain material or component shortages due to COVID.

John Deere uses information technology

Further, John Deere’s success depends, in part, on its ability to develop, engage, and retain qualified employees.

could impair John Deere’s ability to execute its business strategy, and could adversely affect John Deere’s business.

The Company’s ability to meet its business objectives may be affected by the departure of employees, and the expected cost savings of the employee-separation programs may not be achieved due to delays or other factors.

Further, the departure of groups of employees could increase the risk to the Company of claims or litigation from former employees.

In 2021, John Deere will be renegotiating several labor agreements.

Sales of turf equipment, particularly during the important spring selling season, can be dramatically impacted by weather.

Bribery and Corruption Risks

_John Deere is subject to extensive anti-corruption laws and regulations, the violation of which could adversely affect John Deere._

John Deere’s global operations must comply with all applicable anti-corruption laws, including the U.S. Foreign Corrupt Practices Act and the UK Bribery Act.

within the workforce, and temporary inefficiencies.

See the information under the caption “Management’s Discussion and Analysis” on pages [removed: 24] [added: 27] – [removed: 38.][added: 43.]

See the information under “Management’s Discussion and Analysis” beginning on page [removed: 24,] [added: 27,] under “Financial Instrument Market Risk Information” on page [removed: 38] [added: 43] and in Note 27 to the Consolidated Financial Statements.

Forward-looking statements [removed: give] [added: provide] our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future [removed: performance] [added: performance,] and business.

The [removed: _construction and forestry_ segment primarily manufactures and distributes] [added: segment’s primary products include] a broad range of [removed: machines and service parts used in construction, earthmoving, roadbuilding, material handling and timber harvesting, including:] backhoe [removed: loaders;] [added: loaders,] crawler dozers and [removed: loaders;] [added: loaders,] four-wheel-drive [removed: loaders; excavators;] [added: loaders, excavators,] motor [removed: graders;] [added: graders,] articulated dump [removed: trucks;] [added: trucks,] landscape [removed: loaders;] [added: loaders,] skid-steer [removed: loaders;] [added: loaders,] milling [removed: machines; recyclers; slipform pavers; surface miners; asphalt pavers; compactors; tandem and static rollers; mobile crushers and screens; mobile and stationary] [added: machines, pavers, compactors, rollers, crushers, screens,] asphalt [removed: plants;] [added: plants,] log [removed: skidders;] [added: skidders, log] feller [removed: bunchers;] [added: bunchers,] log [removed: loaders;] [added: loaders,] log [removed: forwarders;] [added: forwarders,] log [removed: harvesters and related logging attachments;] [added: harvesters,] and [removed: precision technologies.][added: a variety of attachments.]

The products and services produced by the segments above are marketed primarily through independent retail dealer networks and major retail outlets, and, as it relates to roadbuilding [removed: products,] [added: products in certain markets outside the U.S. and Canada,] primarily through Company-owned sales and service subsidiaries.

The _financial services_ segment primarily finances sales and leases by John Deere dealers of new and used [added: production and precision agriculture, small] agriculture and [removed: turf equipment] [added: turf,] and construction and forestry equipment.

In addition, the financial services segment provides wholesale financing to dealers of the foregoing equipment, finances retail revolving charge [removed: accounts] [added: accounts,] and offers extended equipment warranties.

John Deere’s worldwide [added: production and precision] agriculture [added: operations, small agriculture] and turf [removed: operations] [added: operations,] and construction and forestry operations are sometimes collectively referred to as the “equipment operations.” The financial services segment is sometimes referred to as the “financial services operations.” [added: The production and precision agriculture and small agriculture and turf segments are sometimes collectively referred to as “agriculture and turf” or the “agriculture and turf operations.”]

Additional information is presented in the discussion of business segment and geographic area results on pages [removed: 26] [added: 28] – [removed: 27.][added: 30.]

The John Deere enterprise has manufactured agricultural [removed: machinery] [added: equipment] since 1837.

The Company’s internet address is [removed: http://www.JohnDeere.com.][added: http://www.deere.com.]

Through that address, the Company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form [removed: 8-K] [added: 8-K,] and amendments to those reports are available free of charge as soon as reasonably practicable after they are filed with the United States Securities and Exchange Commission (Securities and Exchange Commission or Commission).

_Agriculture and Turf._ Industry sales of [added: large] agricultural [removed: equipment] [added: machinery] in the U.S. and Canada are [removed: forecast] [added: forecasted] to increase [removed: 5 to 10] [added: approximately 15] percent [removed: driven by gains in larger models.][added: compared to 2021.]

[removed: In South America, industry] [added: Industry] sales of [removed: tractors and combines] [added: agricultural machinery in Europe] are [removed: forecast] [added: forecasted] to be about 5 percent [removed: higher] [added: higher,] while [removed: Asian] [added: South American industry] sales [added: of tractors and combines] are [removed: expected] [added: forecasted] to be [removed: slightly lower than 2020.][added: roughly 5 percent higher in 2022.]

Industry sales of [removed: turf] [added: small agricultural] and [removed: utility] [added: turf] equipment in the U.S. and Canada are expected to be [removed: about the same to 5 percent higher for 2021.][added: flat in]

_Construction and Forestry._ [removed: Full year 2021] [added: On an industry basis,] North American construction equipment [removed: industry] [added: and compact construction equipment] sales are [added: both] expected to be [removed: down about] 5 [added: to 10] percent [removed: with sales of compact equipment up about 5 percent.][added: higher in 2022.]

[removed: _Financial Services._ Results for the full year 2021 are expected] [added: The increase was mainly due] to [removed: benefit from favorable financing spreads, lower losses] [added: improvement] on operating lease residual values, [added: a lower provision for credit losses, more favorable financing spreads,] and income earned on a higher average [removed: portfolio, partially offset by a higher provision for credit losses.][added: portfolio.]

[removed: 2020] [added: 2021] Consolidated Results Compared with [removed: 2019][added: 2020]

For fiscal [removed: 2020,] [added: 2021,] worldwide net income attributable to the Company was [removed: $2.751] [added: $5.963] billion, or [removed: $8.69] [added: $18.99] per share, compared with [removed: $3.253] [added: $2.751] billion, or [removed: $10.15] [added: $8.69] per share, in [removed: 2019.][added: fiscal 2020.]

Worldwide net sales and revenues [removed: decreased 9] [added: increased 24] percent to [removed: $35.540] [added: $44.024] billion in [removed: 2020,] [added: 2021,] compared with [removed: $39.258] [added: $35.540] billion in [removed: 2019.][added: 2020.]

Net income in 2020 was negatively affected by impairment charges and employee-separation costs of $458 million after-tax (see Notes 4 and [removed: 5).][added: 5 to the Consolidated Financial Statements).]

[removed: In addition, the] [added: The equipment operations’] provision for income taxes [removed: was] [added: and net income in 2020 were] adversely affected by non-deductible impairments and [removed: charges in 2020 and less favorably affected by discrete adjustments in 2020 than in 2019.][added: charges.]

Net sales of [added: the] worldwide equipment operations [removed: decreased] [added: increased] in fiscal [removed: 2020] [added: 2021] to [removed: $31.272] [added: $39.737] billion, compared with [removed: $34.886] [added: $31.272] billion last year.

Worldwide equipment operations had an operating profit of [removed: $3.559] [added: $6.868] billion in fiscal [removed: 2020,] [added: 2021,] compared with [removed: $3.721] [added: $3.559] billion in fiscal [removed: 2019.][added: 2020.]

Net income of the Company’s equipment operations was [removed: $2.185] [added: $5.082] billion for fiscal [removed: 2020,] [added: 2021,] compared with [removed: $2.714] [added: $2.185] billion in fiscal [removed: 2019.][added: 2020.]

The financial services operations reported net income attributable to the Company of [removed: $566] [added: $881] million for fiscal [removed: 2020] [added: 2021] compared with [removed: $539] [added: $566] million in fiscal [removed: 2019.][added: 2020.]

The cost of sales to net sales ratio for [removed: 2020] [added: 2021] was [removed: 75.7] [added: 73.3] percent, compared with [removed: 76.8] [added: 75.7] percent for [removed: 2019.][added: 2020.]

The cost of sales to net sales ratio decreased compared to [removed: 2019] [added: 2020] mainly due to price [removed: realization, improved production costs,] [added: realization] and [removed: lower warranty expenses, partially offset by impairments,] [added: the impact of impairments and] employee-separation expenses [added: recorded in 2020] (see Note [removed: 5), and the unfavorable effects of foreign currency exchange.][added: 5).]

Additional information on fiscal [removed: 2020] [added: 2021] results is presented on pages [removed: 24] [added: 27] – [removed: 27.][added: 30.]

[removed: Agriculture] [added: Small Agriculture] and Turf

[removed: The] John [removed: Deere] [added: Deere’s production and precision] agriculture and [removed: turf segment manufactures] [added: small agriculture] and [removed: distributes] [added: turf segments together offer] a full line of agriculture and turf equipment and related service parts.

[removed: This equipment includes large, medium] [added: Equipment manufactured] and [added: distributed by the segment includes: certain mid-size as well as small and] utility tractors and related [added: loaders and] attachments; [removed: tractor loaders; combines; cotton pickers; cotton strippers; sugarcane harvesters; related harvesting front-end equipment; sugarcane loaders; pull-behind scrapers;] turf and utility equipment, including riding lawn equipment, commercial mowing equipment, golf course equipment, utility vehicles, implements for mowing, tilling, snow and debris handling, [removed: aerating] [added: aerating,] and many other residential, commercial, [removed: golf] [added: golf,] and sports turf care [removed: applications] [added: applications,] and other outdoor power products; [added: and] hay and forage equipment, including self-propelled forage harvesters and attachments, [removed: balers and mowers; and tillage, seeding and application equipment, including sprayers, nutrient management] [added: balers,] and [removed: soil preparation machinery.][added: mowers.]

John Deere has developed a unique, [added: production] system-level approach designed to improve customer profitability, productivity, and sustainability.

This approach includes precise global navigation satellite systems technology, advanced connectivity and telematics, on-board sensors and [added: computing power, automation software, digital tools, and applications and analytics that together enable seamless integration of information designed to improve customer decision making and job execution.]

John Deere’s advanced telematics systems remotely connect [removed: agricultural] equipment owners, business [removed: managers] [added: managers,] and dealers to [removed: agricultural] equipment in the field, providing real-time [removed: alerts and information about equipment location, utilization, performance and maintenance to improve productivity and efficiency.]

In addition to the John Deere brand, the [added: small] agriculture and turf segment purchases and sells a variety of equipment attachments under the Frontier, [removed: Kemper] [added: Kemper,] and Green Systems brand names.

[removed: The] [added: In addition to the John Deere brand, the production and precision agriculture] segment [removed: also] manufactures and sells sprayers under the Hagie and Mazzotti brand names, planters and cultivators under the Monosem brand name, sprayers and planters under the PLA brand name, and carbon fiber sprayer booms under the King Agro brand name.

John [removed: Deere manufactures its] [added: Deere’s small] agriculture and turf equipment [removed: for sale] [added: is sold] primarily through independent retail dealer networks, [removed: and] [added: although the segment] also builds turf products for sale by mass retailers, including The Home Depot and Lowe’s.

Sales of agricultural equipment are affected by total farm cash receipts, which reflect levels of farm commodity prices, acreage planted, crop [removed: yields] [added: yields,] and government policies, including global trade [removed: policies and] [added: policies,] the amount and timing of government [removed: payments.][added: payments, and policies related to climate change.]

Sales are also influenced by general economic conditions, [removed: farm land] [added: farmland] prices, farmers’ debt levels and access to financing, interest and exchange rates, agricultural trends, including the production of and demand for renewable fuels, labor availability and costs, energy costs, tax [removed: policies] [added: policies,] and other input costs associated with farming.

Other important factors affecting new agricultural equipment sales are the value and level of used equipment, including tractors, harvesting equipment, self-propelled sprayers, hay and forage [removed: equipment] [added: equipment,] and seeding equipment.

A large proportion of the equipment operations’ total agricultural equipment sales in the U.S. and Canada, and a large proportion of sales in many countries outside the U.S. and Canada, are comprised of tractors over 100 horsepower, self-propelled combines, self-propelled cotton pickers, self-propelled forage harvesters, self-propelled [removed: sprayers] [added: sprayers,] and seeding equipment.

In fiscal year 2021, Deere & Company (the Company) and its subsidiaries (collectively, John Deere) implemented a new operating model and reporting structure.

With this change, John Deere’s agriculture and turf operations were divided into two new segments: production and precision agriculture and small agriculture and turf.

There were no reporting changes for the construction and forestry and financial services segments.

As a result, John Deere’s operations are now categorized into four major business segments:

The _production and precision agriculture_ 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 sugar.

The segment’s main products include large and certain mid-size tractors, combines, cotton pickers, sugarcane harvesters and loaders, and soil preparation, seeding, application, and crop care equipment.

The _small agriculture and turf_ segment defines, develops, and delivers global equipment and technology solutions to unlock customer value for dairy and livestock producers, high-value crop producers, and turf and utility customers.

The segment’s primary products include certain mid-size and small tractors, as well as hay and forage equipment, riding and commercial lawn equipment, golf course equipment, and utility vehicles.

The _construction and forestry_ segment defines, develops, and delivers a broad range of machines and technology solutions organized along the earthmoving, forestry, and roadbuilding production systems.

The segment’s primary products include crawler dozers and loaders, four-wheel-drive loaders, excavators, skid-steer loaders, milling machines, and log harvesters.

Available Information

2022.

Asia industry sales are forecasted to be nearly the same in 2022 as in 2021.

Global forestry industry sales are expected to increase 10 to 15 percent.

_Financial Services._ The Company’s financial services operations for full-year fiscal 2022 are expected to experience slightly lower results due to a higher provision for credit losses, lower gains on operating lease residual values, and higher selling, administrative, and general expenses.

These factors are expected to be partially offset by income earned on a higher average portfolio.

In addition, net income in 2020 was unfavorably affected by discrete adjustments to the provision for income taxes.

Production and precision agriculture, small agriculture and turf, and construction and forestry sales increased during 2021 due to higher shipment volumes and price realization.

Operating profit for production and precision agriculture increased due to price realization, higher shipment volumes / sales mix, and a favorable indirect tax ruling in Brazil.

These items were partially offset by higher production costs.

The prior year was also impacted by voluntary employee-separation program expenses.

Operating profit for small agriculture and turf increased largely as a result of higher shipment volumes/sales mix and price realization.

Partially offsetting these factors were higher production costs.

Results for the current year were positively impacted by a gain on the sale of a factory in China, while results for the prior year were affected by impairments, closure costs, and voluntary employee-separation program expenses.

Construction and forestry’s operating profit increased mainly due to higher shipment volumes/sales mix and price realization, partially offset by higher production costs.

The prior year was also impacted by employee-separation program expenses and impairments in certain fixed assets and unconsolidated affiliates.

Production and Precision Agriculture

The production and precision agriculture segment defines, develops, and delivers global equipment and technology solutions to unlock customer value for production-scale growers of large grains (such as corn and soy), small grains (such as wheat, oats, and barley), cotton, and sugar.

Equipment manufactured and distributed by the segment includes large and certain mid-size tractors, combines, cotton pickers, cotton strippers, sugarcane harvesters, related harvesting front-end equipment, sugarcane loaders, pull-behind scrapers, and tillage, seeding, and application equipment, including sprayers and nutrient management and soil preparation machinery.

alerts and information about equipment location, utilization, performance, and maintenance to improve productivity and efficiency, as well as to monitor agronomic job execution.

Aftermarket parts for production and precision agriculture products are also sold under the Vapormatic and A&I brand names.

John Deere manufactures its production and precision agriculture equipment for sale primarily through independent retail dealer networks.

The small agriculture and turf segment defines, develops, and delivers global equipment and technology solutions to unlock customer value for dairy and livestock producers, high-value crop producers, and turf and utility customers.

The segment works to leverage integrated agricultural solutions and precision technologies across its portfolio of equipment.

Aftermarket parts for small agriculture and turf products are sold under the Vapormatic, A&I, and Sunbelt brand names.

_Agriculture and Turf Operations_

Operating Model.

The segments are aligned around production systems, enabling focus on delivering equipment, technology, and solutions across all the jobs customers execute during a season.

This holistic approach to production systems enables John Deere to invest in the product roadmap and related research and development.

Sales and marketing support for both the production and precision agriculture and small agriculture and turf segments continues to be organized around four geographic customer focus areas.

Deere & Company (the Company) and its subsidiaries (collectively, John Deere) have operations that are categorized into three major business segments.

The _agriculture and turf_ segment primarily manufactures and distributes a full line of agriculture and turf equipment and related service parts, including: large, medium, and utility tractors; tractor loaders; combines, cotton pickers, cotton strippers, and sugarcane harvesters; harvesting front-end equipment; sugarcane loaders and pull-behind scrapers; tillage, seeding and application equipment, including sprayers, nutrient management and soil preparation machinery; hay and forage equipment, including self-propelled forage harvesters and attachments, balers and mowers; turf and utility equipment, including riding lawn equipment, golf course equipment, utility vehicles, and commercial mowing equipment, along with a broad line of associated implements; integrated agricultural solutions and precision technologies; and other outdoor power products.

Full year industry sales in Europe are forecast to be about the same as 2020 to 5 percent higher.

Global forestry industry sales are forecast to be about the same to 5 percent higher in 2021.

In 2019, the similar charges were $82 million.

Both Agriculture and Turf and Construction and Forestry sales decreased for 2020 due to lower shipment volumes and the unfavorable effects of currency translation, partially offset by price realization.

Operating profit for Agricultural and Turf increased largely due to price realization, reduced selling, administrative, and general expenses, lower research and development expenses, lower warranty expenses, and improved production costs.

These items were partially offset by lower sales volumes / mix, employee-separation expenses, impairments, and the unfavorable effects of currency exchange.

Construction and Forestry’s operating profit declined mainly due to lower sales volume / mix, employee-separation expenses, impairments, and the unfavorable effects of currency exchange.

The operating profit decrease was partially offset by price realization, lower research and development expenses, reduced selling, administrative and general expenses, and improved production costs.

The equipment operations’ provision for income taxes and net income were adversely affected by non-deductible impairments and charges in 2020 and less favorably affected by discrete adjustments to the provision for income taxes in 2020 than in 2019.

The increase was mainly due to lower impairments and reduced losses on operating lease residual values and income earned on a higher average portfolio, partially offset by a higher provision for credit losses, employee-separation expenses, and unfavorable financing spreads.

The segment consolidates all markets into four geographical customer focus areas to deliver measurable customer value.

Beginning in fiscal 2021, the segment’s operations are organized around the systems used by customers to produce output.

These production systems include large grains (such as corn and soy), small grains (such as wheat, oats, and barley), sugarcane, and cotton.

computing power, automation software, digital tools, and applications and analytics that together enable seamless integration of information, designed to improve customer decision making and execution of jobs.

_Seasonality_.

Dealers can use these funds to defray the costs of carrying or marketing used equipment inventory or to provide incentives to customers purchasing the used equipment.

John Deere’s construction and forestry equipment includes a broad range of backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, landscape loaders, skid-steer loaders, milling machines, pavers, compactors, rollers, crushers, screens, asphalt plants, log skidders, log feller bunchers, log loaders, log forwarders, log harvesters, and a variety of attachments.

sales, service, and administration office located in Nashville, Tennessee.

Nortrax owns some of the 437 dealer locations.

In fiscal 2020, some of John Deere’s operations were temporarily impacted by certain material or component shortages due to the COVID-19 pandemic (COVID).

“Risk Factors” under the headings Geopolitical Uncertainties; Data Security and Privacy; Environmental, Climate and Weather Risks; and Bribery and Corruption Risks.

In their everyday work, employees embody John Deere’s core values of integrity, quality, commitment and innovation, and in doing so, directly contribute to the company’s long-standing character and reputation.

Employees take pride in their work and value learning from one another.

While they hold many values in common, John Deere employees appreciate different perspectives and embrace the opportunity to work with those of diverse backgrounds.

John Deere encourages employees to become involved in their communities and many employees do contribute their time and talents to community efforts.

John Deere’s employees contribute to the company’s efforts to provide a safe and healthy workplace for all, especially through 2020.

The Company is subject to various unresolved legal actions [removed: which] [added: that] arise in the normal course of its business, the most prevalent of which relate to product liability (including asbestos-related liability), retail credit, employment, patent, and trademark matters.

The following matter is disclosed solely pursuant to that requirement: [removed: on October 3,] [added: In] 2018, the Provincia Santa Fe Ministerio de Medio Ambiente [removed: of] [added: (MoE) in] Argentina issued a Notice of Violation to Industrias John Deere Argentina [added: S.A., an indirect, wholly-owned subsidiary of the Company (IJDA),] in connection with alleged groundwater [removed: contamination at the site; the Company worked with the appropriate authorities to implement corrective actions to remediate the site.][added: contamination.]

The Company believes the reasonably possible range of losses for [removed: this and] other unresolved legal actions would not have a material effect on its financial statements.

IJDA worked with the appropriate authorities to implement corrective actions to remediate the relevant site.

In 2019, the MoE issued a Notice of Fine, which IJDA contested.

On October 12, 2021, IJDA paid an amount equal to approximately $321,000, under protest, to settle the matter.

On December 16, 2019, the Provincia Santa Fe Ministerio de Medio Ambiente issued a Notice of Fine.

The current amount of the fine is approximately $354,000.

The Company has filed an appeal with the Provincia Santa Fe Ministerio de Medio Ambiente.

For the fiscal year ended [removed: November 1, 2020][added: October 31, 2021]

The aggregate quoted market price of voting stock of [added: the] registrant held by non-affiliates at [removed: May 1, 2020] [added: April 30, 2021] was [removed: $43,155,250,076.][added: $115,521,151,966.]

At November 30, [removed: 2020, 313,361,302] [added: 2021, 307,407,282] shares of common stock, $1 par value, of the registrant were outstanding.

Portions of the proxy statement for the annual meeting of stockholders to be held on February [removed: 24, 2021] [added: 23, 2022] are incorporated by reference into Part III of this Form 10-K.

| [ITEM 1A.](#Item1a_RiskFactors__194719) | [RISK FACTORS](#Item1a_RiskFactors__194719) | [removed: 11] [added: 13] |

| [ITEM 1B.](#Item1b_UnresolvedStaffComments__194818) | [UNRESOLVED STAFF COMMENTS](#Item1b_UnresolvedStaffComments__194818) | [removed: 19] [added: 23] |

| [ITEM 2.](#Item2_Properties__194819) | [PROPERTIES](#Item2_Properties__194819) | [removed: 19] [added: 23] |

| [ITEM 3.](#Item3_LegalProceedings__194821) | [LEGAL PROCEEDINGS](#Item3_LegalProceedings__194821) | [removed: 19] [added: 23] |

| [ITEM 4.](#Item4_MineSafetyDisclosures__194822) | [MINE SAFETY DISCLOSURES](#Item4_MineSafetyDisclosures__194822) | [removed: 20] [added: 23] |

| [ITEM 5.](#Item5_MarketForRegistrantsCommonE_194831) | [MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](#Item5_MarketForRegistrantsCommonE_194831) | [removed: 20] [added: 23] |

| [ITEM 6.](#Item6_SelectedFinancialData__200525) | [removed: [SELECTED FINANCIAL DATA](#Item6_SelectedFinancialData__200525)] [added: [\[RESERVED\]](#Item6_SelectedFinancialData__200525)] | [removed: 20] [added: 24] |

| [ITEM 7.](#Item7_ManagementsDiscussionAndAna_200608) | [MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#Item7_ManagementsDiscussionAndAna_200608) | [removed: 21] [added: 24] |

| [ITEM 7A.](#Item7a_QuantitativeAndQualitative_200609) | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#Item7a_QuantitativeAndQualitative_200609) | [removed: 21] [added: 24] |

| [ITEM 8.](#Item8_FinancialStatementsAndSuppl_200627) | [FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#Item8_FinancialStatementsAndSuppl_200627) | [removed: 21] [added: 24] |

| [ITEM 9.](#Item9_ChangesInAndDisagreementsWi_200628) | [CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#Item9_ChangesInAndDisagreementsWi_200628) | [removed: 21] [added: 24] |

| [ITEM 9A.](#Item9a_ControlsAndProcedures__200629) | [CONTROLS AND PROCEDURES](#Item9a_ControlsAndProcedures__200629) | [removed: 21] [added: 24] |

| [ITEM 9B.](#Item9b_OtherInformation__200633) | [OTHER INFORMATION](#Item9b_OtherInformation__200633) | [removed: 21] [added: 25] |

| [ITEM 10.](#Item10_DirectorsExecutiveOfficers_200634) | [DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](#Item10_DirectorsExecutiveOfficers_200634) | [removed: 21] [added: 25] |

| [ITEM 11.](#Item11_ExecutiveCompensation__200641) | [EXECUTIVE COMPENSATION](#Item11_ExecutiveCompensation__200641) | [removed: 22] [added: 25] |

| [ITEM 12.](#Item12_SecurityOwnershipOfCertain_200642) | [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](#Item12_SecurityOwnershipOfCertain_200642) | ​ [removed: 22] [added: 25] |

| [ITEM 13.](#Item13_CertainRelationshipsAndRel_200647) | [CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#Item13_CertainRelationshipsAndRel_200647) | [removed: 22] [added: 25] |

| [ITEM 14.](#Item14_PrincipalAccountantFeesAnd_200653) | [PRINCIPAL ACCOUNTANT FEES AND SERVICES](#Item14_PrincipalAccountantFeesAnd_200653) | [removed: 22] [added: 25] |

| [ITEM 15.](#Partiv_200742) | [EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](#Partiv_200742) | [removed: 23] [added: 26] |

| [ITEM 16.](#Item16_Form_10K_Summary) | [FORM 10-K SUMMARY](#Item16_Form_10K_Summary) | [removed: 23] [added: 26] |

| [ITEM 9C.](#Item9c_ForeignJurisdicitons) | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#Item9c_ForeignJurisdicitons) | 25 |

The equipment operations own or lease [removed: eleven] [added: 11] facilities comprised of two locations supporting centralized parts distribution and nine regional parts depots and distribution centers throughout the U.S. and Canada.

Outside the U.S. and Canada, the equipment operations also own or lease and occupy 12 centralized parts distribution centers in Brazil, Germany, [removed: India] [added: India,] and Russia and regional parts depots and distribution centers in Argentina, Australia, China, Mexico, South Africa, [removed: Sweden] [added: Sweden,] and the United Kingdom.

John Deere also owns or leases [removed: 12] [added: eight] facilities for the manufacture and distribution of other brands of replacement parts.

The Company owns or leases [removed: 40] [added: 44] administrative offices and research facilities globally [removed: and] [added: as well as] many other smaller, miscellaneous [removed: facilities globally.][added: facilities.]

Overall, John Deere owns approximately [removed: 67.0] [added: 68.4] million square feet of facilities and leases approximately [removed: 10.2] [added: 11.8] million additional square feet in various locations.

These properties are adequate and suitable for John Deere’s business as presently conducted and are well maintained.

| (c) | The Company’s purchases of its common stock during the fourth quarter of [removed: 2020] [added: 2021] were as follows: |

| (1) | The Company announced a share repurchase plan in December [removed: 2013 to purchase up] [added: 2019] to [removed: $8,000 million of shares of the Company’s common stock. In December 2019, the Company announced an additional share repurchase plan authorizing the] purchase [removed: of] up to [removed: an additional] $8,000 million of shares of the Company’s common stock. The maximum number of shares that may yet be purchased under [removed: these two plans] [added: this plan] was based on the [added: closing share price as at] end of the fourth quarter [removed: closing share price] of [removed: $225.91] [added: $342.31] per share. At the end of the fourth quarter of [removed: 2020, $8,339] [added: 2021, $5,811] million of common stock [removed: remains] [added: remained] to be purchased under this plan. |

| (a) | The Company’s common stock is listed on the New York Stock Exchange under the symbol “DE.” The Company has a history of paying quarterly cash dividends. While we currently expect a cash dividend to be paid in the future, future dividend payments will depend on the Company’s earnings, capital requirements, financial condition, and other factors considered relevant by our Board of Directors. See the information concerning the number of stockholders in Note 22 to the Consolidated Financial Statements. |

| Aug 2 to Aug 29 | | 643 | ​ | $ | 371.02 | | 643 | | 18.5 | ​ |

| Aug 30 to Sept 26 | | 641 | ​ | ​ | 361.04 | | 641 | | 17.8 | ​ |

| Sept 27 to Oct 31 | | 845 | ​ | | 341.16 | | 845 | | 17.0 | ​ |

| Total | | 2,129 | ​ | ​ | ​ | | 2,129 | ​ | ​ | ​ |

| (a) | The Company’s common stock is listed on the New York Stock Exchange under the symbol “DE”. See the information concerning the number of stockholders and the data on dividends declared and paid per share in Notes 29 and 30 to the Consolidated Financial Statements. |

| Aug 3 to Aug 30 | | ​ | ​ | ​ | ​ | | ​ | | 39.1 | ​ |

| Aug 31 to Sept 27 | | 925 | ​ | $ | 216.22 | | 925 | | 38.2 | ​ |

| Sept 28 to Nov 1 | | 1,231 | ​ | | 232.72 | | 1,231 | | 36.9 | ​ |

| Total | | 2,156 | ​ | ​ | ​ | | 2,156 | ​ | ​ | ​ |

Financial Summary

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| ​ | ​ | November 1 | | ​ | November 3 | | ​ | October 28 | | ​ | October 29 | | ​ | October 30 | | ​ |

| (Millions of dollars except per share amounts) | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | | |

| For the Years Ended: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| Total net sales and revenues | ​ | $ | 35,540 | ​ | $ | 39,258 | ​ | $ | 37,358 | ​ | $ | 29,738 | ​ | $ | 26,644 | ​ |

| Net income attributable to Deere & Company | ​ | $ | 2,751 | ​ | $ | 3,253 | ​ | $ | 2,368 | ​ | $ | 2,159 | ​ | $ | 1,524 | ​ |

| Net income per share — basic | ​ | $ | 8.77 | ​ | $ | 10.28 | ​ | $ | 7.34 | ​ | $ | 6.76 | ​ | $ | 4.83 | ​ |

| Net income per share — diluted | ​ | $ | 8.69 | ​ | $ | 10.15 | ​ | $ | 7.24 | ​ | $ | 6.68 | ​ | $ | 4.81 | ​ |

| Dividends declared per share | ​ | $ | 3.04 | ​ | $ | 3.04 | ​ | $ | 2.58 | ​ | $ | 2.40 | ​ | $ | 2.40 | ​ |

| At Year End: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| Total assets | ​ | $ | 75,091 | ​ | $ | 73,011 | ​ | $ | 70,108 | ​ | $ | 65,786 | ​ | $ | 57,918 | ​ |

| Long-term borrowings | ​ | $ | 32,734 | ​ | $ | 30,229 | ​ | $ | 27,237 | ​ | $ | 25,891 | ​ | $ | 23,703 | ​ |

See the Consolidated Financial Statements and notes thereto and supplementary data on pages [removed: 39] [added: 44] – [removed: 81.][added: 84.]

The Company’s principal executive officer and its principal financial officer have concluded that the Company’s 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 [removed: November 1, 2020,] [added: October 31, 2021,] based on the evaluation of these controls and procedures required by Rule 13a-15(b) or 15d-15(b) of the Exchange Act.

Management assessed the effectiveness of the Company’s internal control over financial reporting as of [removed: November 1, 2020,] [added: October 31, 2021,] using the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Based on that assessment, management believes that, as of [removed: November 1, 2020,] [added: October 31, 2021,] the Company’s internal control over financial reporting was effective.

PART III

| --- | --- |

Not applicable.

PART III

The Company has adopted a code of ethics that applies to its executives, including its principal executive officer, principal financial [removed: officer] [added: officer,] and principal accounting officer.

This code of ethics and the Company's corporate governance policies are posted on the Company's website at [removed: http://www.JohnDeere.com/Governance.][added: http://www.deere.com/governance.]

The charters of the Audit Review, Corporate Governance, [removed: Compensation] [added: Compensation,] and Finance committees of the Company's Board of Directors are available on the Company's website as well.

The information regarding directors required by this Item 10 will be set forth in the definitive proxy statement for the Company’s 2022 annual meeting of stockholders (proxy statement) to be filed with the Commission in advance of such meeting.

The information regarding directors required by Item 401(a) of Regulation S-K in the definitive proxy statement for the annual meeting of stockholders to be held on February 24, 2021 (proxy statement), under the caption "Item 1 — Election of Directors" is incorporated herein by reference.

The information regarding reports required by Item 405(a) of Regulation S-K in the proxy statement under the caption “Delinquent Section 16(a) Reports” is incorporated herein by reference.

The information in the proxy statement required by Items 407(d)(4) and 407(d)(5) of Regulation S-K under the caption “Corporate Governance — Board Committees — Audit Review Committee” is incorporated herein by reference.

The information required by this Item 11 will be set forth in the proxy statement to be filed with the Commission.

The information required by Item 402 and 407(e)(4) and (e)(5) of Regulation S-K in the proxy statement under the captions "Compensation of Directors," "Compensation Discussion & Analysis," "Compensation Committee Report" and "Executive Compensation Tables" is incorporated herein by reference.

The information required by this Item 12 will be set forth in the proxy statement to be filed with the Commission.

The information required by Item 201(d) of Regulation S-K in the proxy statement under the caption "Equity Compensation Plan Information" is incorporated herein by reference.

The information required by Item 403 of Regulation S-K in the proxy statement under the caption "Security Ownership of Certain Beneficial Owners and Management" is incorporated herein by reference.

The information required by this Item 13 will be set forth in the proxy statement to be filed with the Commission.

The information required by Item 404 of Regulation S-K in the proxy statement under the caption “Review and Approval of Related Person Transactions” is incorporated herein by reference.

The information required by Item 407(a) of Regulation S-K in the proxy statement under the caption “Corporate Governance—Director Independence” is incorporated herein by reference.

The information required by this Item 14 will be set forth in the proxy statement to be filed with the Commission.

The information required by this Item 14 is set forth in the proxy statement under the captions "Ratification of Independent Registered Public Accounting Firm—Fees Paid to the Independent Registered Public Accounting Firm" and “Pre-approval of Services by the Independent Registered Public Accounting Firm” and incorporated herein by reference.

| ​ | [Statement of Consolidated Income for the years ended [added: October 31, 2021,] November 1, 2020, [added: and] November 3, [removed: 2019, and October 28, 2018](#StatementOfConsolidatedIncom_162154)] [added: 2019](#StatementOfConsolidatedIncom_162154)] | [removed: 39] [added: 44] |

| ​ | [Statement of Consolidated Comprehensive Income for the years ended [added: October 31, 2021,] November 1, 2020, [added: and] November 3, [removed: 2019, and October 28, 2018](#StatementOfConsolidatedComprehens_162202)] [added: 2019](#StatementOfConsolidatedComprehens_162202)] | [removed: 40] [added: 45] |

| ​ | [Consolidated Balance Sheet as of [removed: November 1, 2020] [added: October 31, 2021] and November [removed: 3, 2019](#ConsolidatedBalanceSheet)] [added: 1, 2020](#ConsolidatedBalanceSheet)] | [removed: 41] [added: 46] |

| ​ | [Statement of Consolidated Cash Flows for the years ended [added: October 31, 2021,] November 1, 2020, [added: and] November 3, [removed: 2019, and October 28, 2018](#StatementOfConsolidatedCashF_162215)] [added: 2019](#StatementOfConsolidatedCashF_162215)] | [removed: 42] [added: 47] |

| ​ | [Statement of Changes in Consolidated Stockholders’ Equity for the years ended [removed: October 28, 2018,] November 3, 2019, [removed: and] November 1, [removed: 2020](#StatementOfChangesInConsolidatedS_162223)] [added: 2020, and October 31, 2021](#StatementOfChangesInConsolidatedS_162223)] | [removed: 43] [added: 48] |

| ​ | [Notes to Consolidated Financial Statements](#Item15_ExhibitsAndFinancialStatementSche) | [removed: 44] [added: 49] |

| ​ | See the “[Index to Exhibits](#IndexToExhibits_072013)” on pages [removed: 86] [added: 88] – [removed: 89] [added: 91] of this report | ​ |

| ​ | Certain instruments relating to long-term [removed: borrowings,] [added: borrowings] constituting less than 10 percent of registrant’s total [removed: assets,] [added: assets] are not filed as exhibits herewith pursuant to Item 601(b)4(iii)(A) of Regulation S-K. Registrant agrees to file copies of such instruments upon request of the Commission. | ​ |

| ​ | The following schedules for the Company and consolidated subsidiaries are omitted because of the absence of the conditions under which they are required: I, II, III, [removed: IV] [added: IV,] and V. | ​ |

[removed: NOVEMBER] [added: OCTOBER 31, 2021, NOVEMBER] 1, 2020, [added: AND] NOVEMBER 3, [removed: 2019, AND OCTOBER 28, 2018][added: 2019]

The equipment operations includes the company’s [added: production and precision] agriculture [added: operations, small agriculture] and turf operations, construction and forestry operations, and other corporate assets, liabilities, [removed: revenues] [added: revenues,] and expenses not reflected within financial services.

The company also views its operations as consisting of two geographic [removed: areas,] [added: areas:] the U.S. and Canada, and outside the U.S. and Canada.

The company’s operating segments consist of [added: production and precision agriculture, small] agriculture and turf, construction and forestry, and financial services.

The company’s [added: production and precision] agriculture [added: equipment] and [added: small agriculture and] turf equipment sales [removed: decreased 6] [added: both increased 27] percent in [removed: 2020.][added: 2021.]

Industry [added: sales of large] agricultural machinery [removed: sales] in the U.S. and Canada for [removed: 2021] [added: 2022] are [removed: forecast] [added: forecasted] to increase [removed: 5 to 10 percent,] [added: approximately 15 percent] compared to [removed: 2020.][added: 2021.]

[removed: Industry sales in Europe are forecast to be about the same to 5 percent higher, and] South American industry sales of tractors and combines are [removed: forecast] [added: expected] to be [removed: about] [added: roughly] 5 percent higher in [removed: 2021.][added: 2022.]

Industry sales of [removed: turf] [added: small agricultural] and [removed: utility] [added: turf] equipment in the U.S. and Canada are expected to be [removed: about the same to 5 percent higher.][added: flat in 2022.]

The company’s construction and forestry sales [removed: decreased 20] [added: increased 27] percent in [removed: 2020.][added: 2021.]

On an industry basis, North American construction equipment [added: and compact construction equipment] sales are [added: both] expected to be [removed: down about] 5 [added: to 10] percent [removed: with sales of compact equipment up about 5 percent.][added: higher in 2022.]

Items of concern [added: that could affect the company’s results of operations and liquidity and capital resources] include uncertainty of the effectiveness of governmental and private sector actions to address COVID, [added: supply of critical parts and components,] trade agreements, the uncertainty of the results of monetary and fiscal policies, the impact of elevated levels of sovereign and state debt, capital market disruptions, changes in demand and pricing for new and used equipment, [removed: and] geopolitical [removed: events.][added: events, and the other items discussed in the “Safe Harbor Statement” below.]

The future financial effects of COVID [removed: are] [added: continue to be] unknown due to many factors.

As a [removed: result,] [added: result of these uncertainties,] predicting the company’s forecasted financial performance is [removed: difficult and] subject to many assumptions.

COVID [removed: Effects] [added: Effects, Actions,] and [removed: Actions][added: Recent Developments]

During [removed: 2020,] [added: 2020 and to a lesser extent in 2021,] the effects of COVID and the related actions of governments and other authorities to contain [removed: COVID,] [added: COVID] have affected [added: and continue to affect] the company’s operations, results, cash flows, and forecasts.

The company’s first priority in addressing the effects of COVID continues to be the health, safety, and overall welfare of its [removed: employees.]

[removed: Additional information is presented in “Business Segment and Geographic Area Results.”][added: BUSINESS SEGMENT AND GEOGRAPHIC AREA RESULTS]

The company continued to work closely with [removed: distribution channel and equipment user] customers [removed: during 2020, and, as necessary, provided] [added: in 2021 in connection with] short-term payment relief on obligations owed to the company.

| ​ | ​ | [added: 2021 | | ​ |] 2020 | | [removed: ​] [added: ​] | 2019 | | ​ | [added: 2021 | | ​ | 2020 | | ​ | 2019 | | ​ | 2021 | | ​ | 2020 | | ​ | 2019 | | ​ | 2021 | | ​ | 2020 | | ​ | 2019 | | ​ | ​ | ​ |]

| Net income attributable to Deere & Company | ​ | [removed: $] [added: ​] | 2,751 | ​ | [removed: $] [added: ​] | 3,253 | ​ |

| [removed: Basic earnings] [added: Basic] per [removed: share] [added: share] | [removed: ​] | [removed: ​] [added: $] | [added: 19.14 | | $ |] 8.77 | [removed: ​] | [removed: ​] [added: $] | 10.28 | ​ |

| [removed: ​] [added: (In millions of dollars)] | ​ | 2020 | | ​ | 2019 | | ​ | % Change | ​ |

| [removed: Worldwide net] [added: Net] sales and revenues | ​ | $ | 35,540 | ​ | $ | 39,258 | ​ | [removed: \-9 | ​ |]

| [removed: Worldwide equipment operations net] [added: Net] sales | ​ | [removed: ​] [added: $] | 31,272 | ​ | [removed: ​] [added: $] | 34,886 | ​ | \-10 | ​ |

| Outside U.S. and [removed: Canada equipment operations net sales] [added: Canada:] | ​ | ​ | [removed: 13,318] [added: ​] | ​ | ​ | [removed: 14,622] [added: ​] | ​ | [removed: \-9] [added: ​] | ​ |

The [removed: company’s] [added: company has] equipment operations [removed: operating profit] and [removed: net income and] financial services operations [removed: net income follow] in [removed: millions of dollars:][added: Argentina.]

| [removed: Equipment operations operating] [added: Operating] profit | ​ | [removed: $] [added: ​] | 3,559 | ​ | [removed: $] [added: ​] | 3,721 | ​ | \-4 | ​ |

| [removed: Equipment operations net income*] [added: Net income] | ​ | ​ | 2,185 | ​ | ​ | 2,714 | ​ | \-19 | ​ |

| [removed: Financial services net] [added: Net] income | ​ | ​ | 566 | ​ | ​ | 539 | ​ | +5 | ​ |

[removed: *Includes equity] [added: | Equity in] income (loss) [removed: from] [added: of] unconsolidated [removed: affiliates.][added: affiliates | ​ | ​ | 18 | ​ | ​ | (50) | ​ | ​ | 20 | ​ | ​ | 3 | ​ | ​ | 2 | ​ | ​ | 1 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 21 | ​ | ​ | (48) | ​ | ​ | 21 | ​ | ​ | ​ |]

The equipment operations’ provision for income taxes and net income were adversely affected by non-deductible impairments and charges in 2020 and [removed: was] [added: were] less favorably affected by discrete adjustments to the provision for income taxes in 2020 than in 2019.

[removed: Financial services segment net] [added: Net] income [added: in 2020] increased [removed: compared to 2019] mainly due to lower impairments and reduced losses on operating lease residual values and income earned on a higher average portfolio, partially offset by a higher provision for credit losses, employee-separation expenses, and unfavorable financing spreads.

[removed: The] [added: A discussion of the] cost of sales to net sales ratio and other significant statement of consolidated income changes [removed: not previously discussed in millions of dollars follow:][added: follows:]

| [removed: ​] [added: (In millions of dollars)] | ​ | 2020 | | [removed: ​] [added: ​] | 2019 | | [removed: ​] [added: ​] | % Change | ​ |

The cost of sales to net sales ratio decreased compared to 2019 mainly due to price realization, improved production costs, and lower warranty expenses, partially offset by impairments, employee-separation expenses (see Note 5), and the unfavorable [removed: effects of foreign currency exchange.]

Selling, administrative and general expenses decreased [removed: primarily] [added: largely] due to spending reductions and the favorable effects of currency translation, mostly offset by employee-separation expenses (see Note 5) and an increase in the provision for credit losses.

The long-term expected return on plan assets, which is reflected in these costs, was an expected gain of [removed: 6.4] [added: 5.9] percent in [removed: 2020] [added: 2021] and [removed: 6.5] [added: 6.4] percent in [removed: 2019,] [added: 2020,] or [removed: $869] [added: $876] million and [removed: $838] [added: $869] million, respectively.

The actual return was a gain of [removed: $1,177] [added: $3,616] million in [removed: 2020] [added: 2021] and [removed: $2,163] [added: $1,177] million in [removed: 2019.][added: 2020.]

In [removed: 2021,] [added: 2022,] the expected return [removed: will be] [added: is] approximately [removed: 5.9] [added: 5.0] percent.

Total company [added: pension and OPEB] contributions in [removed: 2021] [added: 2022] are expected to be approximately [removed: $950] [added: $1,250] million.

The following Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to promote understanding of the financial condition and results of operations.

The MD&A is provided as a supplement to, and should be read in conjunction with, the consolidated financial statements and the accompanying Notes to Consolidated Financial Statements (Part II, Item 8 of this Form 10-K).

Asia industry sales are forecasted to be nearly the same in 2022 as in 2021.

Global forestry industry sales are projected to increase 10 to 15 percent.

The company’s financial services operations for the full year 2022 are expected to experience slightly lower results due to a higher provision for credit losses,

lower gains on operating lease residual values, and higher selling, general and administrative expenses.

These factors are expected to be partially offset by income earned on a higher average portfolio.

The UAW, the union representing the majority of the company’s production and maintenance employees in the U.S., initiated a strike on October 14, 2021.

This resulted in a work stoppage affecting employees at 14 U.S. facilities.

The work stoppage continued through the approval of a new six-year collective bargaining agreement on November 17, 2021.

The company’s operations during the remainder of the fourth quarter were adversely affected by the work stoppage, which reduced production and shipments.

The company’s 2021 full-year performance reflects strong end-market demand and the ability of the company’s dedicated employees, dealers, and suppliers throughout the world, who have helped safely maintain operations, manage supply chain challenges, and continue to serve customers throughout the COVID pandemic.

Demand for farm and construction equipment is expected to continue to benefit from positive fundamentals, including favorable crop prices, economic growth, and increased investment in infrastructure.

While supply-chain pressures are expected to persist into at least the early part of fiscal year 2022, the company is working closely with key suppliers to secure the parts and components that customers need in order to deliver essential food and infrastructure more profitably and sustainably.

employees.

The company broadened its supply base to minimize the impact of potential supply chain disruptions on its ability to meet customer demand.

The company has experienced shortages of critical parts and components, which caused challenges and production disruptions.

The company continues to monitor the situation and work closely with suppliers.

Financing receivables and operating leases granted relief since the beginning of the pandemic that remained outstanding at October 31, 2021 represented about 3 percent and about 2 percent of the respective portfolio balances.

The trade receivables granted relief that remained outstanding at October 31, 2021 were not material.

2021 COMPARED WITH 2020

| Deere & Company | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| (In millions of dollars, except per share amounts) | ​ | 2021 | | ​ | 2020 | | ​ |

| Diluted earnings per share | ​ | ​ | 18.99 | ​ | ​ | 8.69 | ​ |

In addition, net income in 2020 was less favorably affected by discrete adjustments to the provision for income taxes.

| (In millions of dollars) | ​ | 2021 | | ​ | 2020 | | ​ | % Change | ​ |

| Worldwide: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| Net income | ​ | ​ | 5,082 | ​ | ​ | 2,185 | ​ | +133 | ​ |

| Price realization | ​ | ​ | ​ | ​ | ​ | ​ | ​ | +6 | ​ |

| Currency translation | ​ | ​ | ​ | ​ | ​ | ​ | ​ | +2 | ​ |

| Net sales | ​ | $ | 22,476 | ​ | $ | 17,954 | ​ | +25 | ​ |

| Price realization | ​ | ​ | ​ | ​ | ​ | ​ | ​ | +5 | ​ |

| Currency translation | ​ | ​ | ​ | ​ | ​ | ​ | ​ | +1 | ​ |

| Net sales | ​ | $ | 17,261 | ​ | $ | 13,318 | ​ | +30 | ​ |

| Price realization | ​ | ​ | ​ | ​ | ​ | ​ | ​ | +8 | ​ |

| Currency translation | ​ | ​ | ​ | ​ | ​ | ​ | ​ | +4 | ​ |

| Deere & Company | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| (In millions of dollars) | ​ | 2021 | | ​ | 2020 | | ​ | % Change | ​ |

| Cost of sales to net sales | ​ | ​ | 73.3% | ​ | ​ | 75.7% | ​ | ​ | ​ |

| Finance and interest income | ​ | $ | 3,296 | ​ | $ | 3,450 | ​ | \-4 | ​ |

Asian sales are also forecast to be slightly lower.

Global forestry industry sales are expected to be about the same to about 5 percent higher than 2020 sales.

In the face of the ongoing challenges associated with managing the global pandemic, the company was able to complete a successful year and is positioned to continue providing differentiated solutions for customers.

The company expects to benefit from improving conditions in the farm economy and stabilization in construction and forestry markets.

In addition, the manufacturing location and product reviews that started in 2020 as part of the company’s transition to an updated strategy will continue in 2021.

The economic effects of COVID have reduced customer demand for some of the company’s products and services, particularly construction and forestry equipment (see Note 6), which resulted in lower shipment volumes.

During most of 2020, all of the company’s factories have operated, some at reduced capacity due to component shortages or lower demand.

During the year, the company broadened the supply base and increased the inventory level of certain essential materials and components to address potential supplier issues.

The measures taken beginning in the second quarter to aggressively decrease operational and selling, administrative and general expenses have been effective.

In addition, the company’s actions taken in the second quarter to increase borrowings, along with significant cash generated from operations, provided a strong financial position (see Note 20 for additional information on long-term borrowings).

Cash and cash equivalents were $7,066 million at November 1, 2020 and the company’s revolving credit facilities were undrawn.

The company’s share repurchase programs were suspended in the second quarter and all of the third quarter.

These programs were reinstated in the fourth quarter with $487 million of shares repurchased.

Additional information is presented in “Capital Resources and Liquidity.”

The payment relief provided on balances of trade receivables, financing receivables, and operating lease payments outstanding at November 1, 2020 was about 2 percent, 4 percent,

and 4 percent of the portfolio balances, respectively.

The following table provides the net income attributable to Deere & Company in millions of dollars as well as diluted and basic earnings per share in dollars:

Annual savings from the separation programs are estimated to be approximately $250 million, of which $85 million was realized in 2020.

The worldwide net sales and revenues, price realization, and the effect of currency translation for worldwide, U.S. and Canada, and outside U.S. and Canada in millions of dollars follows:

| U.S. and Canada equipment operations net sales | ​ | ​ | 17,954 | ​ | ​ | 20,264 | ​ | \-11 | ​ |

Additional information is presented in the following discussion of the “Worldwide Financial Services Operations.”

The company’s costs under these plans in 2021 are expected to decrease approximately $150 million.

The anticipated contributions include a voluntary U.S. OPEB plan contribution of $700 million.

The agriculture and turf segment results in millions of dollars follow:

| Net sales | ​ | $ | 22,325 | ​ | $ | 23,666 | ​ | \-6 | ​ |

| Operating margin | ​ | ​ | 13.3% | ​ | ​ | 10.6% | ​ | ​ | ​ |

The construction and forestry segment results in millions of dollars follow:

The financial services segment revenue, interest expense, and operating profit in millions of dollars follow:

The equipment operations in the U.S. and Canada results in millions of dollars follow:

| Operating profit | ​ | ​ | 2,194 | ​ | ​ | 2,335 | ​ | \-6 | ​ |

| Operating margin | ​ | ​ | 12.2% | ​ | ​ | 11.5% | ​ | ​ | ​ |

The physical volume of sales decreased 14 percent compared with 2019.

The equipment operations outside the U.S. and Canada results in millions of dollars follow:

| Operating profit | ​ | ​ | 1,365 | ​ | ​ | 1,386 | ​ | \-2 | ​ |

| Operating margin | ​ | ​ | 10.2% | ​ | ​ | 9.5% | ​ | ​ | ​ |

The physical volume of sales decreased 9 percent compared with 2019.

MARKET CONDITIONS

Agriculture and Turf. Industry sales of agricultural equipment in the U.S. and Canada are forecast to increase 5 to 10 percent driven by gains in larger models.

In South America, industry sales of tractors and combines are forecast to be about 5 percent higher while Asian sales are expected to be slightly lower than 2020.

Industry sales of turf and utility equipment in the U.S. and Canada are expected to be about the same to 5 percent higher for 2021.