Item 1. Financial Statements

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Item 1. Financial Statements


DEERE & COMPANY
STATEMENTS OF CONSOLIDATED INCOME
For the Three Months Ended January 26, 2025 and January 28, 2024
(In millions of dollars and shares except per share amounts) Unaudited
	2025		2024
Net Sales and Revenues
Net sales	$	6,809	$	10,486
Finance and interest income		1,453		1,360
Other income		246		339
Total		8,508		12,185

Costs and Expenses
Cost of sales		5,037		7,200
Research and development expenses		526		533
Selling, administrative and general expenses		972		1,066
Interest expense		829		802
Other operating expenses		249		369
Total		7,613		9,970

Income of Consolidated Group before Income Taxes		895		2,215
Provision for income taxes		27		469

Income of Consolidated Group		868		1,746
Equity in income (loss) of unconsolidated affiliates		(1)		2

Net Income		867		1,748
Less: Net loss attributable to noncontrolling interests		(2)		(3)
Net Income Attributable to Deere & Company	$	869	$	1,751

Per Share Data
Basic	$	3.20	$	6.25
Diluted		3.19		6.23
Dividends declared		1.62		1.47
Dividends paid		1.47		1.35

Average Shares Outstanding
Basic		271.6		279.9
Diluted		272.3		281.1

See Condensed Notes to Interim Consolidated Financial Statements.


DEERE & COMPANY
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
For the Three Months Ended January 26, 2025 and January 28, 2024
(In millions of dollars) Unaudited
	2025		2024
Net Income	$	867	$	1,748

Other Comprehensive Income (Loss), Net of Income Taxes
Retirement benefits adjustment		3		(21)
Cumulative translation adjustment		(451)		274
Unrealized loss on derivatives		(1)		(15)
Unrealized gain (loss) on debt securities		(15)		13
Other Comprehensive Income (Loss), Net of Income Taxes		(464)		251

Comprehensive Income of Consolidated Group		403		1,999
Less: Comprehensive loss attributable to noncontrolling interests		(5)		(2)
Comprehensive Income Attributable to Deere & Company	$	408	$	2,001

See Condensed Notes to Interim Consolidated Financial Statements.


DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
	January 26		October 27		January 28
	2025		2024		2024
Assets
Cash and cash equivalents	$	6,601	$	7,324	$	5,137
Marketable securities		1,214		1,154		1,136
Trade accounts and notes receivable – net		4,931		5,326		7,795
Financing receivables – net		41,396		44,309		43,708
Financing receivables securitized – net		8,257		8,723		6,400
Other receivables		2,979		2,545		2,017
Equipment on operating leases – net		7,157		7,451		6,751
Inventories		7,744		7,093		8,937
Property and equipment – net		7,425		7,580		6,914
Goodwill		3,872		3,959		3,966
Other intangible assets – net		937		999		1,112
Retirement benefits		3,018		2,921		3,087
Deferred income taxes		1,852		2,086		1,833
Other assets		2,807		2,906		2,578
Assets held for sale		2,929		2,944
Total Assets	$	103,119	$	107,320	$	101,371

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	12,811	$	13,533	$	17,117
Short-term securitization borrowings		8,014		8,431		6,116
Accounts payable and accrued expenses		12,162		14,543		13,361
Deferred income taxes		448		478		550
Long-term borrowings		43,556		43,229		39,933
Retirement benefits and other liabilities		1,734		2,354		2,115
Liabilities held for sale		1,830		1,827
Total liabilities		80,555		84,395		79,192

Commitments and contingencies (Note 16)
Redeemable noncontrolling interest		78		82		100

Stockholders’ Equity
Common stock, $1 par value (issued shares at January 26, 2025 – 536,431,204)		5,526		5,489		5,335
Common stock in treasury		(35,709)		(35,349)		(32,663)
Retained earnings		56,829		56,402		52,266
Accumulated other comprehensive income (loss)		(4,167)		(3,706)		(2,863)
Total Deere & Company stockholders’ equity		22,479		22,836		22,075
Noncontrolling interests		7		7		4
Total stockholders’ equity		22,486		22,843		22,079
Total Liabilities and Stockholders’ Equity	$	103,119	$	107,320	$	101,371

See Condensed Notes to Interim Consolidated Financial Statements.


DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Three Months Ended January 26, 2025 and January 28, 2024
(In millions of dollars) Unaudited
	2025		2024
Cash Flows from Operating Activities
Net income	$	867	$	1,748
Adjustments to reconcile net income to net cash used for operating activities:
Provision for credit losses		69		31
Provision for depreciation and amortization		549		520
Impairments and other adjustments		(32)
Share-based compensation expense		28		46
Provision for deferred income taxes		208		27
Changes in assets and liabilities:
Receivables related to sales		1,063		(277)
Inventories		(795)		(723)
Accounts payable and accrued expenses		(1,845)		(2,327)
Accrued income taxes payable/receivable		(540)		183
Retirement benefits		(688)		(129)
Other		(16)		(7)
Net cash used for operating activities		(1,132)		(908)

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)		8,137		7,752
Proceeds from maturities and sales of marketable securities		61		184
Proceeds from sales of equipment on operating leases		433		506
Cost of receivables acquired (excluding receivables related to sales)		(6,045)		(6,447)
Purchases of marketable securities		(141)		(229)
Purchases of property and equipment		(352)		(362)
Cost of equipment on operating leases acquired		(439)		(454)
Collateral on derivatives – net		(191)		310
Other		(47)		(43)
Net cash provided by investing activities		1,416		1,217

Cash Flows from Financing Activities
Net payments in short-term borrowings (original maturities three months or less)		(1,484)		(2,951)
Proceeds from borrowings issued (original maturities greater than three months)		3,168		5,287
Payments of borrowings (original maturities greater than three months)		(1,753)		(3,237)
Repurchases of common stock		(441)		(1,328)
Dividends paid		(403)		(386)
Other		(10)		(30)
Net cash used for financing activities		(923)		(2,645)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		(87)		16

Net Decrease in Cash, Cash Equivalents, and Restricted Cash		(726)		(2,320)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		7,633		7,620
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	6,907	$	5,300

Components of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents	$	6,601	$	5,137
Cash, cash equivalents, and restricted cash (Assets held for sale)		116
Restricted cash (Other assets)		190		163
Total Cash, Cash Equivalents, and Restricted Cash	$	6,907	$	5,300

See Condensed Notes to Interim Consolidated Financial Statements.


DEERE & COMPANY
STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY
For the Three Months Ended January 26, 2025 and January 28, 2024
(In millions of dollars) Unaudited
			Total Stockholders’ Equity
			Deere & Company Stockholders
									Accumulated
	Total								Other				Redeemable
	Stockholders’		Common		Treasury		Retained		Comprehensive		Noncontrolling		Noncontrolling
	Equity		Stock		Stock		Earnings		Income (Loss)		Interests		Interest
Balance October 29, 2023	$	21,789	$	5,303	$	(31,335)	$	50,931	$	(3,114)	$	4	$	97
Net income (loss)		1,752						1,751				1		(4)
Other comprehensive income		251								251				1
Repurchases of common stock		(1,340)				(1,340)
Treasury shares reissued		12				12
Dividends declared		(411)						(411)
Share based awards and other		26		32				(5)				(1)		6
Balance January 28, 2024	$	22,079	$	5,335	$	(32,663)	$	52,266	$	(2,863)	$	4	$	100


Balance October 27, 2024	$	22,843	$	5,489	$	(35,349)	$	56,402	$	(3,706)	$	7	$	82
Net income (loss)		869						869						(2)
Other comprehensive loss		(461)								(461)				(3)
Repurchases of common stock		(384)				(384)
Treasury shares reissued		24				24
Dividends declared		(441)						(441)
Share based awards and other		36		37				(1)						1
Balance January 26, 2025	$	22,486	$	5,526	$	(35,709)	$	56,829	$	(4,167)	$	7	$	78

See Condensed Notes to Interim Consolidated Financial Statements.

Condensed Notes to Interim Consolidated Financial Statements (Unaudited)

(1) Organization and Consolidation

Deere & Company has been developing innovative solutions to help its customers become more profitable for more than 185 years. References to “Deere & Company,” “John Deere,” “we,” “us,” or “our” include our consolidated subsidiaries. We manage our business through the following operating segments: production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (John Deere Financial or FS). References to “agriculture and turf” include both PPA and SAT.

We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The first quarter ends for fiscal year 2025 and 2024 were January 26, 2025 and January 28, 2024, respectively. Both periods contained 13 weeks. Fiscal year 2025 will contain 53 weeks, with the additional week occurring in the fourth quarter. Unless otherwise stated, references to particular years, quarters, or months refer to our fiscal years generally ending in October and the associated periods in those fiscal years.

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

(2) Summary of Significant Accounting Policies and New Accounting Pronouncements

Quarterly Financial Statements

The interim consolidated financial statements of Deere & Company have been prepared by us, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been included. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. It is suggested these interim consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto appearing in our latest Annual Report on Form 10-K. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year.

Use of Estimates in Financial Statements

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

New Accounting Pronouncements Adopted

We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. We adopted the following standards in 2025, none of which had a material effect on our consolidated financial statements.


No. 2023-05 — Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement
No. 2022-03 — Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions

Accounting Pronouncements to be Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which expands disclosures about specific expense categories presented on the face of the income statement. In January 2025, the FASB issued ASU 2025-01, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40), which clarifies the effective date of ASU 2024-03. The ASU will be effective for us beginning with our annual reporting for fiscal year 2028 and interim periods thereafter. We are assessing the effect of ASU 2024-03 on our related disclosures.

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

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


No. 2024-04 — Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments
No. 2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures
No. 2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative

(3) Revenue Recognition

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


	Three Months Ended January 26, 2025
	PPA		SAT		CF		FS		Total
Primary geographic markets:
United States	$	1,555	$	949	$	1,113	$	1,085	$	4,702
Canada		354		79		101		187		721
Western Europe		277		352		344		43		1,016
Central Europe and CIS		67		39		71		4		181
Latin America		715		80		205		96		1,096
Asia, Africa, Oceania, and Middle East		205		308		224		55		792
Total	$	3,173	$	1,807	$	2,058	$	1,470	$	8,508

Major product lines:
Production agriculture	$	3,002							$	3,002
Small agriculture			$	1,234						1,234
Turf				463						463
Construction					$	770				770
Compact construction						361				361
Roadbuilding						596				596
Forestry						226				226
Financial products		55		33		21	$	1,470		1,579
Other		116		77		84				277
Total	$	3,173	$	1,807	$	2,058	$	1,470	$	8,508

Revenue recognized:
At a point in time	$	3,086	$	1,760	$	2,028	$	29	$	6,903
Over time		87		47		30		1,441		1,605
Total	$	3,173	$	1,807	$	2,058	$	1,470	$	8,508


	Three Months Ended January 28, 2024
	PPA		SAT		CF		FS		Total
Primary geographic markets:
United States	$	2,721	$	1,345	$	2,095	$	970	$	7,131
Canada		386		118		210		172		886
Western Europe		503		517		361		40		1,421
Central Europe and CIS		179		73		94		8		354
Latin America		819		98		256		130		1,303
Asia, Africa, Oceania, and Middle East		435		341		258		56		1,090
Total	$	5,043	$	2,492	$	3,274	$	1,376	$	12,185

Major product lines:
Production agriculture	$	4,791							$	4,791
Small agriculture			$	1,718						1,718
Turf				649						649
Construction					$	1,483				1,483
Compact construction						626				626
Roadbuilding						763				763
Forestry						292				292
Financial products		60		26		18	$	1,376		1,480
Other		192		99		92				383
Total	$	5,043	$	2,492	$	3,274	$	1,376	$	12,185

Revenue recognized:
At a point in time	$	4,955	$	2,456	$	3,243	$	28	$	10,682
Over time		88		36		31		1,348		1,503
Total	$	5,043	$	2,492	$	3,274	$	1,376	$	12,185

We invoice in advance of recognizing the revenue of certain products and services. These relate to extended warranty premiums, advance payments for future equipment sales, and subscription and service revenue related to precision guidance, telematic services, and other information-enabled solutions. These advanced customer payments are presented as deferred revenue, a contract liability, in “Accounts payable and accrued expenses.” The deferred revenue received, but not recognized in revenue, was $2,027, $1,923, and $1,747 at January 26, 2025, October 27, 2024, and January 28, 2024, respectively. The contract liability is reduced as the revenue is recognized. Revenue recognized from deferred revenue that was recorded as a contract liability at the beginning of the fiscal year was $197 and $230 during the three months ended January 26, 2025 and January 28, 2024, respectively.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $1,734 at January 26, 2025. The estimated revenue to be recognized by fiscal year follows: remainder of 2025 – $395, 2026 – $444, 2027 – $352, 2028 – $235, 2029 – $144, 2030 – $102, and later years – $62. As permitted, we elected only to disclose remaining performance obligations with an original contract duration greater than one year. The contracts with an expected duration of one year or less are for sales to dealers and retail customers for equipment, service parts, repair services, and certain telematics services.

(4) Other Comprehensive Income Items

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


	January 26		October 27		January 28
	2025		2024		2024
Retirement benefits adjustment	$	(1,271)	$	(1,274)	$	(866)
Cumulative translation adjustment		(2,734)		(2,286)		(1,877)
Unrealized loss on derivatives		(73)		(72)		(23)
Unrealized loss on debt securities		(89)		(74)		(97)
Accumulated other comprehensive income (loss)	$	(4,167)	$	(3,706)	$	(2,863)

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


	Before		Tax		After
	Tax		(Expense)		Tax
Three Months Ended January 26, 2025	Amount		Credit		Amount
Cumulative translation adjustment	$	(449)	$	1	$	(448)
Unrealized gain (loss) on interest rate derivatives:
Unrealized hedging gain (loss)		7		(2)		5
Reclassification of realized (gain) loss to Interest expense		(8)		2		(6)
Net unrealized gain (loss) on derivatives		(1)				(1)
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)		(19)		4		(15)
Net unrealized gain (loss) on debt securities		(19)		4		(15)
Retirement benefits adjustment:
Net actuarial gain (loss)		6		(1)		5
Reclassification to Other operating expenses through amortization of:
Actuarial (gain) loss		(11)		3		(8)
Prior service (credit) cost		9		(3)		6
Net unrealized gain (loss) on retirement benefits adjustment		4		(1)		3
Total other comprehensive income (loss)	$	(465)	$	4	$	(461)


	Before		Tax		After
	Tax		(Expense)		Tax
Three Months Ended January 28, 2024	Amount		Credit		Amount
Cumulative translation adjustment	$	273	$	1	$	274
Unrealized gain (loss) on interest rate derivatives:
Unrealized hedging gain (loss)		(8)		2		(6)
Reclassification of realized (gain) loss to Interest expense		(11)		2		(9)
Net unrealized gain (loss) on derivatives		(19)		4		(15)
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)		1		6		7
Reclassification of realized (gain) loss to Other income		8		(2)		6
Net unrealized gain (loss) on debt securities		9		4		13
Retirement benefits adjustment:
Net actuarial gain (loss)		(17)		4		(13)
Reclassification to Other operating expenses through amortization of:
Actuarial (gain) loss		(20)		5		(15)
Prior service (credit) cost		9		(2)		7
Net unrealized gain (loss) on retirement benefits adjustment		(28)		7		(21)
Total other comprehensive income (loss)	$	235	$	16	$	251

(5) Earnings Per Share

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


	Three Months Ended
	January 26		January 28
	2025		2024
Net income attributable to Deere & Company	$	869	$	1,751
Average shares outstanding		271.6		279.9
Basic per share	$	3.20	$	6.25

Average shares outstanding		271.6		279.9
Effect of dilutive stock options and unvested restricted stock units		.7		1.2
Total potential shares outstanding		272.3		281.1
Diluted per share	$	3.19	$	6.23

Shares excluded from EPS calculation, as antidilutive		.3		.2

(6) Pension and Other Postretirement Benefits

We have several funded and unfunded defined benefit pension plans and other postretirement benefit (OPEB) plans. These plans cover U.S. employees and certain foreign employees. The components of net periodic pension and OPEB (benefit) cost consisted of the following:


	Three Months Ended
	January 26		January 28
	2025		2024
Pensions:
Service cost	$	65	$	58
Interest cost		128		136
Expected return on plan assets		(254)		(241)
Amortization of actuarial gain		(1)		(4)
Amortization of prior service cost		10		10
Net benefit	$	(52)	$	(41)

OPEB:
Service cost	$	5	$	5
Interest cost		40		43
Expected return on plan assets		(28)		(27)
Amortization of actuarial gain		(10)		(16)
Amortization of prior service credit		(1)		(1)
Net cost	$	6	$	4

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

During the first three months of 2025, we contributed and expect to contribute the following amounts to our pension and OPEB plans:


	Pensions		OPEB
Contributed	$	28	$	622
Expected contributions remainder of the year		72		38

In the first quarter of 2025, a committee of our Board of Directors approved and a $520 voluntary contribution was made to a U.S. OPEB plan. This contribution increased plan assets.

(7) Segment Data

Information relating to operations by operating segment follows:


	Three Months Ended
	January 26		January 28		%
	2025		2024		Change
Net sales and revenues
PPA net sales	$	3,067	$	4,849	-37
SAT net sales		1,748		2,425	-28
CF net sales		1,994		3,212	-38
FS revenues		1,470		1,376	+7
Other revenues		229		323	-29
Total net sales and revenues	$	8,508	$	12,185	-30
Operating profit
PPA	$	338	$	1,045	-68
SAT		124		326	-62
CF		65		566	-89
FS		266		257	+4
Total operating profit		793		2,194	-64
Reconciling items		103		26	+296
Income taxes		(27)		(469)	-94
Net income attributable to Deere & Company	$	869	$	1,751	-50

Intersegment sales and revenues:
PPA net sales			$	8
SAT net sales				1
CF net sales
FS revenues	$	103		176

Operating profit for PPA, SAT, and CF is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of financial services includes the effect of interest expense and foreign exchange gains and losses. Reconciling items to net income are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and OPEB benefit (cost) amounts excluding the service cost component, and net income attributable to noncontrolling interests.


Identifiable operating assets were as follows:
	January 26		October 27		January 28
	2025		2024		2024
PPA	$	8,773	$	8,696	$	9,059
SAT		4,179		4,130		4,426
CF		7,237		7,137		7,371
FS		69,686		73,612		69,900
Corporate		13,244		13,745		10,615
Total assets	$	103,119	$	107,320	$	101,371

(8) Financing Receivables

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

	●	Past due balances represent any payments 30 days or more past the due date.

	●	Non-performing financing receivables represent receivables for which we have stopped accruing finance income. This generally occurs when receivables are 90 days delinquent.

	●	Write-offs generally occur when receivables are 120 days delinquent. In these situations, the estimated uncollectible amount is written off to the allowance for credit losses.

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


	January 26, 2025
	2025		2024		2023		2022		2021		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	2,421	$	12,687	$	7,437	$	4,560	$	2,387	$	903	$	3,027	$	33,422
30-59 days past due		8		113		94		51		27		12		128		433
60-89 days past due		1		44		38		21		10		5		24		143
90+ days past due				2		1				4						7
Non-performing				44		120		81		49		33		15		342
Construction and forestry
Current		883		2,834		1,614		880		349		73		99		6,732
30-59 days past due		7		72		45		29		11		3		5		172
60-89 days past due				30		21		11		4		1		3		70
90+ days past due				4		2		3				1				10
Non-performing				66		100		56		33		15		1		271
Total retail customer receivables	$	3,320	$	15,896	$	9,472	$	5,692	$	2,874	$	1,046	$	3,302	$	41,602

Write-offs for the three months ended January 26, 2025:
Agriculture and turf			$	5	$	9	$	6	$	2	$	3	$	10	$	35
Construction and forestry				9		8		4		1		1		3		26
Total			$	14	$	17	$	10	$	3	$	4	$	13	$	61


	October 27, 2024
	2024		2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	14,394	$	8,305	$	5,191	$	2,833	$	992	$	253	$	4,465	$	36,433
30-59 days past due		44		101		55		27		11		4		40		282
60-89 days past due		22		50		21		10		8		2		13		126
90+ days past due		1		1		1		2								5
Non-performing		23		91		76		50		20		13		15		288
Construction and forestry
Current		3,100		1,841		1,064		458		102		45		114		6,724
30-59 days past due		54		47		25		10		3		2		4		145
60-89 days past due		25		28		10		7		2				2		74
90+ days past due		1		4		3		1								9
Non-performing		40		94		67		32		9		5		1		248
Total retail customer receivables	$	17,704	$	10,562	$	6,513	$	3,430	$	1,147	$	324	$	4,654	$	44,334

Write-offs for the twelve months ended October 27, 2024:
Agriculture and turf	$	5	$	33	$	25	$	11	$	11	$	5	$	87	$	177
Construction and forestry		9		38		30		11		5		3		8		104
Total	$	14	$	71	$	55	$	22	$	16	$	8	$	95	$	281


	January 28, 2024
	2024		2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	3,248	$	13,626	$	7,731	$	4,577	$	2,032	$	931	$	2,798	$	34,943
30-59 days past due		5		122		66		47		22		11		71		344
60-89 days past due		1		50		26		15		7		5		16		120
90+ days past due				1		1		3		4						9
Non-performing				49		95		66		34		42		11		297
Construction and forestry
Current		803		2,698		1,743		911		276		109		101		6,641
30-59 days past due		8		73		46		26		8		3		5		169
60-89 days past due				26		20		13		6		3		2		70
90+ days past due						2		1				1				4
Non-performing		1		67		86		48		20		9		2		233
Total retail customer receivables	$	4,066	$	16,712	$	9,816	$	5,707	$	2,409	$	1,114	$	3,006	$	42,830

Write-offs for the three months ended January 28, 2024:
Agriculture and turf			$	2	$	4	$	3	$	4	$	1	$	9	$	23
Construction and forestry				6		7		2		1		1		2		19
Total			$	8	$	11	$	5	$	5	$	2	$	11	$	42

The credit quality and aging analysis of wholesale receivables was as follows:


	January 26		October 27		January 28
	2025		2024		2024
Wholesale receivables:
Agriculture and turf
Current	$	7,098	$	7,568	$	6,564
30+ days past due						1
Non-performing		1		1		1
Construction and forestry
Current		1,200		1,358		907
30+ days past due
Non-performing
Total wholesale receivables	$	8,299	$	8,927	$	7,473

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


	Three Months Ended January 26, 2025
	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
Allowance:
Beginning of period balance	$	219	$	8	$	2	$	229
Provision		68		2				70
Write-offs		(48)		(13)				(61)
Recoveries		2		9				11
Translation adjustments		(1)						(1)
End of period balance	$	240	$	6	$	2	$	248

Financing receivables:
End of period balance	$	38,300	$	3,302	$	8,299	$	49,901


	Three Months Ended January 28, 2024
	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
Allowance:
Beginning of period balance	$	172	$	21	$	4	$	197
Provision (credit)		35		(2)				33
Write-offs		(31)		(11)				(42)
Recoveries		1		8				9
Translation adjustments						(2)		(2)
End of period balance	$	177	$	16	$	2	$	195

Financing receivables:
End of period balance	$	39,824	$	3,006	$	7,473	$	50,303

The allowance for credit losses on retail notes and financing lease receivables increased in the first quarter of 2025, primarily due to higher expected losses as a result of elevated delinquencies and market conditions.

During the third quarter of 2024, we determined that the financial services business in Brazil met the held for sale criteria. The receivables in Brazil were reclassified to “Assets held for sale.” The associated allowance for credit losses was reversed and a valuation allowance for the “Assets held for sale” was recorded (see Note 20).

Modifications

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

The ending amortized cost of financing receivables modified with borrowers experiencing financial difficulty during the first quarter ended January 26, 2025 and January 28, 2024 were $28 and $17, respectively. These modifications represented 0.06% and 0.03% of our financing receivable portfolio for the same periods, respectively.

The financial effects of payment deferrals with borrowers experiencing financial difficulty resulted in a weighted average payment deferral of 8 months to the modified contracts. Term extensions provided to borrowers experiencing financial difficulty added a weighted average of 12 months to the modified contracts. Additionally, modifications with a combination of both payment deferrals and term extensions resulted in a weighted average payment deferral of 4 months and a weighted average term extension of 6 months.

We continue to monitor the performance of financing receivables that are modified with borrowers experiencing financial difficulty. The ending amortized cost and performance of financing receivables modified during the prior twelve months ended January 26, 2025 and January 28, 2024 were as follows:


	January 26		January 28
	2025		2024*
Current	$	74	$	16
30-59 days past due		7
60-89 days past due		4
90+ days past due		3
Non-performing		13		1
Total	$	101	$	17

In accordance with the adoption date of the accounting modification guidance, this period includes receivables modified during the prior three months.

Defaults and subsequent write-offs of financing receivables modified in the prior twelve months were not significant during the three months ended January 26, 2025 and January 28, 2024. In addition, at January 26, 2025, commitments to provide additional financing to these customers were not significant.

(9) Securitization of Financing Receivables

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

	1.	We transfer financing receivables into a bankruptcy-remote special purpose entity (SPE).

	2.	The SPE issues debt to investors. The debt is secured by the financing receivables.

	3.	Investors are paid back based on cash receipts from the financing receivables.

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

The components of securitization programs were as follows:


	January 26		October 27		January 28
	2025		2024		2024
Financing receivables securitized (retail notes)	$	8,307	$	8,770	$	6,418
Allowance for credit losses		(50)		(47)		(18)
Other assets (primarily restricted cash)		182		187		140
Total restricted securitized assets	$	8,439	$	8,910	$	6,540

Short-term securitization borrowings	$	8,014	$	8,431	$	6,116
Accrued interest on borrowings		11		14		10
Total liabilities related to restricted securitized assets	$	8,025	$	8,445	$	6,126

(10) Inventories

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


	January 26		October 27		January 28
	2025		2024		2024
Raw materials and supplies	$	3,549	$	3,486	$	4,117
Work-in-process		1,046		930		1,223
Finished goods and parts		6,055		5,364		6,146
Total FIFO value		10,650		9,780		11,486
Excess of FIFO over LIFO		2,906		2,687		2,549
Inventories	$	7,744	$	7,093	$	8,937

(11) Goodwill and Other Intangible Assets – Net

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


	PPA		SAT		CF		Total
Goodwill at October 29, 2023	$	702	$	363	$	2,835	$	3,900
Translation adjustments		4		2		60		66
Goodwill at January 28, 2024	$	706	$	365	$	2,895	$	3,966

Goodwill at October 27, 2024	$	701	$	365	$	2,893	$	3,959
Translation adjustments		(11)		(4)		(72)		(87)
Goodwill at January 26, 2025	$	690	$	361	$	2,821	$	3,872

The components of other intangible assets were as follows:


	January 26		October 27		January 28
	2025		2024		2024
Customer lists and relationships	$	490	$	508	$	509
Technology, patents, trademarks, and other		1,392		1,423		1,412
Total at cost		1,882		1,931		1,921
Less accumulated amortization:
Customer lists and relationships		(229)		(231)		(207)
Technology, patents, trademarks, and other		(716)		(701)		(602)
Total accumulated amortization		(945)		(932)		(809)
Other intangible assets – net	$	937	$	999	$	1,112

The amortization of other intangible assets in the first quarter of 2025 and 2024 was $41 and $42, respectively. The estimated amortization expense for the next five years is as follows: remainder of 2025 – $102, 2026 – $125, 2027 – $118, 2028 – $85, 2029 – $73, and 2030 – $70.

(12) Short-Term Borrowings

Short-term borrowings were as follows:


	January 26		October 27		January 28
	2025		2024		2024
Commercial paper	$	2,699	$	4,008	$	8,378
Notes payable to banks		561		377		310
Finance lease obligations due within one year		34		33		27
Long-term borrowings due within one year		9,517		9,115		8,402
Short-term borrowings	$	12,811	$	13,533	$	17,117

(13) Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:


	January 26		October 27		January 28
	2025		2024		2024
Accounts payable:
Trade payables	$	2,393	$	2,698	$	3,184
Dividends payable		443		405		413
Operating lease liabilities		274		270		293
Deposits withheld from dealers and merchants		136		152		153
Payables to unconsolidated affiliates		8		6		6
Other		207		204		183
Accrued expenses:
Employee benefits		786		1,925		1,107
Accrued taxes		1,111		1,509		1,364
Product warranties		1,360		1,426		1,589
Dealer sales discounts		246		996		243
Extended warranty premium		1,173		1,179		1,047
Derivative liabilities		750		582		744
Unearned revenue (contractual liability)		854		744		700
Unearned operating lease revenue		474		495		456
Accrued interest		487		455		502
Parts return liability		418		420		393
Other		1,042		1,077		984
Accounts payable and accrued expenses	$	12,162	$	14,543	$	13,361

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $1,901 at January 26, 2025, $2,121 at October 27, 2024, and $2,410 at January 28, 2024. Other eliminations were made for accrued taxes and other accrued expenses.

(14) Long-Term Borrowings

Long-term borrowings consisted of:


	January 26		October 27		January 28
	2025		2024		2024
Underwritten term debt
U.S. dollar notes and debentures:
2.75% notes due 2025					$	700
6.55% debentures due 2028	$	200	$	200		200
5.375% notes due 2029		500		500		500
3.10% notes due 2030		700		700		700
8.10% debentures due 2030		250		250		250
7.125% notes due 2031		300		300		300
5.45% notes due 2035		1,250
3.90% notes due 2042		1,250		1,250		1,250
2.875% notes due 2049		500		500		500
3.75% notes due 2050		850		850		850
5.70% notes due 2055		750
Euro notes:
1.85% notes due 2028 (€600 principal)		625		650		651
2.20% notes due 2032 (€600 principal)		625		650		651
1.65% notes due 2039 (€650 principal)		677		704		705
Serial issuances:
Medium-term notes		34,974		36,566		31,001
Other notes and finance lease obligations		272		265		1,810
Less debt issuance costs and debt discounts		(167)		(156)		(135)
Long-term borrowings	$	43,556	$	43,229	$	39,933

Medium-term notes due through 2034 are primarily offered by prospectus and issued at fixed and variable rates. The principal balances of the medium-term notes were $35,770, $37,141, and $31,808 at January 26, 2025, October 27, 2024, and January 28, 2024, respectively. All outstanding notes and debentures are senior unsecured borrowings and rank equally with each other.

(15) Leases – Lessor

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

Lease revenues earned by us follow:


	Three Months Ended
	January 26		January 28
	2025		2024
Sales-type and direct finance lease revenues	$	47	$	47
Operating lease revenues		362		339
Variable lease revenues		4		4
Total lease revenues	$	413	$	390

(16) Commitments and Contingencies

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

The reconciliation of the changes in the warranty liability follows:


	Three Months Ended
	January 26		January 28
	2025		2024
Beginning of period balance	$	1,426	$	1,610
Warranty claims paid		(310)		(309)
New product warranty accruals		256		281
Foreign exchange		(12)		7
End of period balance	$	1,360	$	1,589

The costs for extended warranty programs are recognized as incurred.

In certain international markets, we provide guarantees to banks for the retail financing of John Deere equipment. As of January 26, 2025, the notional value of these guarantees was $128. We may repossess the equipment collateralizing the receivables. At January 26, 2025, the accrued losses under these guarantees were not material.

We also had other miscellaneous contingent liabilities totaling approximately $115 at January 26, 2025. The accrued liability for these contingencies was $25 at January 26, 2025.

At January 26, 2025, we had commitments of approximately $490 for the construction and acquisition of property and equipment. Also at January 26, 2025, we had restricted assets of $259, classified as “Other assets.”

We are subject to various unresolved legal actions. The accrued losses on these matters were not material at January 26, 2025. We believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on our consolidated financial statements. The most prevalent legal claims relate to product liability (including asbestos-related liability), employment, patent, trademark, and antitrust matters (including class action litigation).

(17) Fair Value Measurements

The fair values of financial instruments that do not approximate the carrying values were as follows. Long-term borrowings exclude finance lease liabilities.


	January 26, 2025				October 27, 2024				January 28, 2024
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financing receivables – net	$	41,396	$	41,311	$	44,309	$	44,336	$	43,708	$	43,236
Financing receivables securitized – net		8,257		8,174		8,723		8,654		6,400		6,225
Short-term securitization borrowings		8,014		8,036		8,431		8,453		6,116		6,104
Long-term borrowings due within one year		9,517		9,468		9,115		9,079		8,402		8,283
Long-term borrowings		43,483		43,172		43,157		42,804		39,878		39,321

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

Fair values of the financing receivables that were issued long-term were based on the discounted values of their related cash flows at interest rates currently being offered by us for similar financing receivables. The fair values of the remaining financing receivables approximated the carrying amounts.

Fair values of long-term borrowings and short-term securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates.

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


	January 26		October 27		January 28
	2025		2024		2024
Level 1:
Marketable securities
International equity securities					$	5
International mutual funds securities						57
U.S. equity fund						105
U.S. fixed income fund						34
U.S. government debt securities	$	301	$	239		274
Total Level 1 marketable securities		301		239		475

Level 2:
Marketable securities
Corporate debt securities		419		423		220
International debt securities		132		143		87
Mortgage-backed securities		174		165		161
Municipal debt securities		80		74		69
U.S. government debt securities		108		110		124
Total Level 2 marketable securities		913		915		661
Other assets – Derivatives		216		357		253
Accounts payable and accrued expenses – Derivatives		750		582		744

Level 3:
Accounts payable and accrued expenses – Deferred consideration		138		147		176

The mortgage-backed securities are primarily issued by U.S. government sponsored enterprises.

The contractual maturities of available-for-sale debt securities at January 26, 2025 follow:


	Amortized		Fair
	Cost		Value
Due in one year or less	$	41	$	32
Due after one through five years		354		341
Due after five through 10 years		531		498
Due after 10 years		200		169
Mortgage-backed securities		205		174
Debt securities	$	1,331	$	1,214

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

Fair value, nonrecurring Level 3 measurements from impairments and other adjustments were as follows:


	Fair Value					(Gains) Losses
						Three Months Ended
	January 26		October 27		January 28	January 26		January 28
	2025		2024		2024	2025*		2024
Other assets			$	23
Assets held for sale	$	2,929		2,944		$	(32)

The gain on “Assets held for sale” in the first quarter of 2025 represents a reversal of prior period valuation allowance loss, not in excess of cumulative valuation allowance recorded on “Assets held for sale.”

The following is a description of the valuation methodologies we use to measure certain financial instruments on the balance sheets at fair value:

Marketable securities – The portfolio of investments is valued on a market approach (matrix pricing model) in which all significant inputs are observable or can be derived from or corroborated by observable market data such as interest rates, yield curves, volatilities, credit risk, and prepayment speeds. Funds are valued using the fund’s net asset value, based on the fair value of the underlying securities. International debt securities are valued using quoted prices for identical assets in inactive markets.

Derivatives – Our derivative financial instruments consist of interest rate contracts (swaps), foreign currency exchange contracts (futures, forwards, and swaps), and cross-currency interest rate contracts (swaps). The portfolio is valued based on an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates for currencies.

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

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

Assets held for sale – The disposal group was measured at the lower of the carrying amount or fair value less cost to sell. Fair value was based on the probable sale price. The inputs included estimates of the final sale price (see Note 20).

(18) Derivative Instruments

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


	January 26, 2025						October 27, 2024						January 28, 2024
			Fair Value						Fair Value						Fair Value
	Notional		Assets		Liabilities		Notional		Assets		Liabilities		Notional		Assets		Liabilities
Cash flow hedges:
Interest rate contracts	$	3,275	$	1	$	31	$	2,875	$	3	$	20	$	2,200	$	27	$	4

Fair value hedges:
Interest rate contracts		15,256		32		602		15,864		115		467		12,633		58		592
Cross-currency interest rate contracts		975				2		975		31

Not designated as hedging instruments:
Interest rate contracts		13,082		88		72		12,518		97		75		14,200		129		82
Foreign exchange contracts		7,408		81		43		7,533		95		20		7,856		39		53
Cross-currency interest rate contracts		164		14				158		16				189				13

The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. Fair value hedging adjustments are included in the carrying amount of the hedged item.


	Active Hedging Relationships				Discontinued Hedging Relationships
	Carrying Amount		Cumulative Fair Value		Carrying Amount of		Cumulative Fair Value
	of Hedged Item		Hedging Amount		Formerly Hedged Item		Hedging Amount
January 26, 2025
Short-term borrowings					$	2,110	$	(14)
Long-term borrowings	$	15,515	$	(617)		8,923		(179)

October 27, 2024
Short-term borrowings	$	287	$	(1)	$	1,782	$	7
Long-term borrowings		16,125		(347)		8,626		(228)

January 28, 2024
Short-term borrowings	$	288	$	(9)	$	1,960	$	10
Long-term borrowings		11,745		(537)		7,711		(270)

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


	Three Months Ended
	January 26		January 28
	2025		2024
Fair value hedges:
Interest rate contracts – Interest expense	$	(343)	$	344

Cash flow hedges:
Recognized in OCI:
Interest rate contracts – OCI (pretax)	$	7	$	(8)
Reclassified from OCI:
Interest rate contracts – Interest expense		8		11

Not designated as hedges:
Interest rate contracts – Interest expense	$	(4)	$	(9)
Foreign exchange contracts – Net sales		(7)		5
Foreign exchange contracts – Cost of sales		35		(30)
Foreign exchange contracts – Other operating expenses		208		(181)
Total not designated	$	232	$	(215)

Certain of our derivative agreements contain credit support provisions that may require us to post collateral based on the size of the net liability positions and credit ratings. The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at January 26, 2025, October 27, 2024, and January 28, 2024 was $707, $562, and $691, respectively. In accordance with the limits established in these agreements, we posted $436, $245, and $368 of cash collateral at January 26, 2025, October 27, 2024, and January 28, 2024, respectively. In addition, we paid $8 of collateral that was outstanding at January 26, 2025, October 27, 2024, and January 28, 2024 to participate in an international futures market to hedge currency exposure, not included in the following table.

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and collateral follows:


	Gross Amounts		Netting
	Recognized		Arrangements		Collateral		Net Amount
January 26, 2025
Assets	$	216	$	(62)			$	154
Liabilities		750		(62)	$	(437)		251

October 27, 2024
Assets	$	357	$	(142)			$	215
Liabilities		582		(142)	$	(246)		194

January 28, 2024
Assets	$	253	$	(112)	$	(19)	$	122
Liabilities		744		(112)		(368)		264

(19) Share-Based Awards

We are authorized to grant shares for equity incentive awards. The outstanding shares authorized were 13.7 million at January 26, 2025. In December 2024, we granted stock options to employees for the purchase of 168 thousand shares of common stock at an exercise price of $448.03 per share and a binomial lattice model fair value of $116.27 per share at the grant date. At January 26, 2025, options for 1.4 million shares were outstanding with a weighted-average exercise price of $291.97 per share.

During the three months ended January 26, 2025, the restricted stock units (RSUs) granted in thousands of shares and the weighted-average grant date fair values, using the closing price of our common stock on the grant date, in dollars follow:


		Grant-Date
	Shares	Fair Value (per share)
Service-based	300	$	447.84
Performance/service-based	39		429.77
Market/service-based (fair value determined using a Monte Carlo model)	39		591.13

(20) Special Items

Discrete Tax Items

In the first quarter of 2025, we recorded favorable net discrete tax items primarily due to tax benefits of $110 related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 from an adjustment to an uncertain tax position of a foreign subsidiary.

Banco John Deere S.A.

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

The BJD business was reclassified as held for sale in 2024. At January 26, 2025, the valuation allowance on “Assets held for sale” decreased to $65, resulting in a pretax and after-tax gain (reversal of previous losses) of $32 recorded in “Selling, administrative and general expenses” in the three months ended January 26, 2025 and presented in “Impairments and other adjustments” in the statements of consolidated cash flows.

The major classes of the total consolidated assets and liabilities of BJD that were classified as held for sale and liabilities of BJD to other intercompany parties were as follows:


	January 26, 2025
Cash and cash equivalents	$	115
Trade accounts and notes receivable – net		105
Financing receivables – net		2,719
Deferred income taxes		34
Other miscellaneous assets*		21
Valuation allowance		(65)
Assets held for sale	$	2,929

Short-term borrowings	$	487
Accounts payable and accrued expenses		124
Long-term borrowings		1,218
Retirement benefits and other liabilities		1
Liabilities held for sale	$	1,830

Total intercompany payables	$	627

Includes $1 restricted cash balance.

(21) Subsequent Events

In February 2025, we completed the transaction with Bradesco (see Note 20) for the sale of 50% ownership in BJD. Bradesco contributed capital equal to our equity investment in BJD. We retained a 50% equity interest in BJD and will report the results of the joint venture as an equity investment in unconsolidated affiliates.

On February 26, 2025, a quarterly dividend of $1.62 per share was declared at the Board of Directors meeting, payable on May 8, 2025, to stockholders of record on March 31, 2025.

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