Feb 15, 2024 SOURCE: PR NewsWire
Deere Reports First Quarter Net Income of $1.751 Billion
-- Strong quarterly operating margins from equipment operations demonstrate
structural improvement near mid-cycle volumes.
-- Fleet replenishment moderating as agricultural fundamentals normalize.
-- Full-year net income now forecasted to be $7.50 to $7.75 billion.
MOLINE, Ill., Feb. 15, 2024 /PRNewswire/ -- Deere & Company reported net income of $1.751 billion for the first quarter ended January 28, 2024, or $6.23 per share, compared with net income of $1.959 billion, or $6.55 per share, for the quarter ended January 29, 2023.
Worldwide net sales and revenues decreased 4 percent, to $12.185 billion, in the most recent quarter. Net sales were $10.486 billion for the quarter, compared with $11.402 billion in 2023.
"Deere's first-quarter performance underscores the effectiveness of our Smart Industrial operating model and the dedication of our workforce, enabling improved performance across economic cycles that surpasses historical benchmarks," said John C. May, chairman and chief executive officer. "Moreover, we remain committed to empowering our customers to improve their productivity and sustainability through ongoing investment in the next generation of solutions, as evidenced by our partnership on satellite communications to expand rural connectivity announced this quarter."
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2024 is forecasted to be in a range of $7.50 billion to $7.75 billion.
"Moving forward, we expect fleet replenishment to moderate as agricultural fundamentals normalize from record levels in 2022 and 2023," May said. "Regardless of where we are in the cycle, demand is accelerating for products and solutions that empower our customers to do more with less, and we are uniquely positioned to deliver unparalleled value to our customers."
Deere & Company
First Quarter
$ in millions, except per share amounts 2024 2023 % Change
Net sales and revenues $
12,185 $
12,652 -4 %
Net income $
1,751 $
1,959 -11 %
Fully diluted EPS $
6.23 $
6.55
Production & Precision Agriculture
First Quarter
$ in millions 2024 2023 % Change
Net sales $
4,849 $
5,198 -7 %
Operating profit $
1,045 $
1,208 -13 %
Operating margin 21.6 % 23.2 %
Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit decreased due to lower shipment volumes and higher SA&G and R&D expenses, partially offset by price realization.
Small Agriculture & Turf
First Quarter
$ in millions 2024 2023 % Change
Net sales $
2,425 $
3,001 -19 %
Operating profit $
326 $
447 -27 %
Operating margin 13.4 % 14.9 %
Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit decreased due to lower shipment volumes and higher SA&G and R&D expenses. These items were partially offset by price realization and lower production costs.
Construction & Forestry
First Quarter
$ in millions 2024 2023 % Change
Net sales $
3,212 $
3,203
Operating profit $
566 $
625 -9 %
Operating margin 17.6 % 19.5 %
Construction and forestry sales were flat for the quarter, with positive price realization offset by lower shipment volumes. Operating profit decreased primarily due to higher production costs, lower shipment volumes, the unfavorable effects of currency translation, and higher SA&G and R&D expenses. These items were partially offset by price realization and a favorable sales mix.
Financial Services
First Quarter
$ in millions 2024 2023 % Change
Net income $
207 $
185 12 %
Financial services net income for the quarter increased due to income earned on higher average portfolio balances, partially offset by less-favorable financing spreads.
Industry Outlook for Fiscal 2024
Agriculture & Turf
U.S. & Canada:
Large Ag Down 10 to 15%
Small Ag & Turf Down 5 to 10%
Europe Down 10 to 15%
South America (Tractors & Combines) Down ~ 10%
Asia Down moderately
Construction & Forestry
U.S. & Canada:
Construction Equipment Flat to Down 5%
Compact Construction Equipment
Flat
Global Forestry Down ~ 10%
Global Roadbuilding
Flat
Deere Segment Outlook for Fiscal 2024 Currency Price
$ in millions Net Sales Translation Realization
Production & Precision Ag Down ~ 20% ~ Flat +1.5 %
Small Ag & Turf Down 10 to 15% ~ Flat +1.5 %
Construction & Forestry Down 5 to 10% ~ Flat +1.5 %
Financial Services Net Income ~$ 770
Financial Services. Fiscal-year 2024 net income attributable to Deere & Company for the financial services operations is forecast to be approximately $770 million. Results are expected to be higher than fiscal year 2023 due to income earned on a higher average portfolio, partially offset by less-favorable financing spreads. A correction of the accounting treatment for financing incentives offered to John Deere dealers impacted 2023 financial results. The cumulative effect of this correction, $173 million pretax ($135 million after-tax), was recorded in the second quarter of 2023.
FORWARD-LOOKING STATEMENTS
Certain statements contained herein, including in the section entitled "Company Outlook & Summary," "Industry Outlook," and "Deere Segment Outlook," relating to future events, expectations, and trends constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally while others could more heavily affect a particular line of business.
Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:
-- changes and compliance with U.S., foreign and international laws,
regulations, and policies relating to trade, economic sanctions, data
privacy, spending, taxing, banking, monetary, environmental (including
climate change and engine emission), and farming policies;
-- political, economic, and social instability of the geographies in which
the company operates, including the ongoing war between Russia and
Ukraine and the war between Israel and Hamas;
-- adverse macroeconomic conditions, including unemployment, inflation,
rising interest rates, changes in consumer practices due to slower
economic growth, and regional or global liquidity constraints;
-- worldwide demand for food and different forms of renewable energy;
-- the ability to execute business strategies, including the company's
Smart Industrial Operating Model, Leap Ambitions, and mergers and
acquisitions;
-- the ability to understand and meet customers' changing expectations and
demand for John Deere products and solutions;
-- accurately forecasting customer demand for products and services and
adequately managing inventory;
-- the ability to integrate new technology, including automation and
machine learning, and deliver precision technology and solutions to
customers;
-- changes to governmental communications channels (radio frequency
technology);
-- the ability to adapt in highly competitive markets;
-- dealer practices and their ability to manage distribution of John Deere
products and support and service precision technology solutions;
-- changes in climate patterns, unfavorable weather events, and natural
disasters;
-- governmental and other actions designed to address climate change in
connection with a transition to a lower-carbon economy;
-- higher interest rates and currency fluctuations which could adversely
affect the U.S. dollar, customer confidence, access to capital, and
demand for John Deere products and solutions;
-- availability and price of raw materials, components, and whole goods;
-- delays or disruptions in the company's supply chain;
-- our equipment fails to perform as expected, which could result in
warranty claims, post-sales repairs or recalls, product liability
litigation, and regulatory investigations;
-- the ability to attract, develop, engage, and retain qualified personnel;
-- security breaches, cybersecurity attacks, technology failures, and other
disruptions to John Deere information technology infrastructure and
products;
-- loss of or challenges to intellectual property rights;
-- legislation introduced or enacted that could affect the company's
business model and intellectual property, such as right to repair or
right to modify legislation;
-- investigations, claims, lawsuits, or other legal proceedings;
-- events that damage the company's reputation or brand;
-- world grain stocks, available farm acres, soil conditions, harvest
yields, prices for commodities and livestock, input costs, and
availability of transport for crops; and
-- housing starts and supply, real estate and housing prices, levels of
public and non-residential construction, and infrastructure investment.
Further information concerning the company and its businesses, including factors that could materially affect the financial results, is included in the company's filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.
DEERE & COMPANY
FIRST QUARTER 2024 PRESS RELEASE
(In millions of dollars) Unaudited
Three Months Ended
January 28 January 29 %
2024 2023 Change
Net sales and revenues:
Production & precision ag net sales $
4,849 $
5,198 -7
Small ag & turf net sales 2,425 3,001 -19
Construction & forestry net sales 3,212 3,203
Financial services revenues 1,376 1,040 +32
Other revenues 323 210 +54
Total net sales and revenues $
12,185 $
12,652 -4
Operating profit: *
Production & precision ag $
1,045 $
1,208 -13
Small ag & turf 326 447 -27
Construction & forestry 566 625 -9
Financial services 257 238 +8
Total operating profit 2,194 2,518 -13
Reconciling items ** 26 (22)
Income taxes (469) (537) -13
Net income attributable to Deere & Company $
1,751 $
1,959 -11
* Operating profit is income from continuing operations before corporate expenses, certain external interest expense, certain foreign exchange gains and losses, and
income taxes. Operating profit for financial services includes the effect of interest expense and foreign exchange gains or losses.
** Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement
benefit costs excluding the service cost component, equity in income of unconsolidated affiliates, and net income attributable to noncontrolling interests.
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED INCOME
For the Three Months Ended January 28, 2024 and January 29, 2023
(In millions of dollars and shares except per share amounts) Unaudited
2024 2023
Net Sales and Revenues
Net sales $
10,486 $
11,402
Finance and interest income 1,360 994
Other income 339 256
Total 12,185 12,652
Costs and Expenses
Cost of sales 7,200 7,934
Research and development expenses 533 495
Selling, administrative and general expenses 1,066 952
Interest expense 802 479
Other operating expenses 369 299
Total 9,970 10,159
Income of Consolidated Group before Income Taxes 2,215 2,493
Provision for income taxes 469 537
Income of Consolidated Group 1,746 1,956
Equity in income of unconsolidated affiliates 2 1
Net Income 1,748 1,957
Less: Net loss attributable to noncontrolling interests (3) (2)
Net Income Attributable to Deere & Company $
1,751 $
1,959
Per Share Data
Basic $
6.25 $
6.58
Diluted 6.23 6.55
Dividends declared 1.47 1.20
Dividends paid 1.35 1.13
Average Shares Outstanding
Basic 279.9 297.6
Diluted 281.1 299.1
See Condensed Notes to Interim Consolidated Financial
Statements.
DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
January 28 October 29 January 29
2024 2023 2023
Assets
Cash and cash equivalents $
5,137 $
7,458 $
3,976
Marketable securities 1,136 946 852
Trade accounts and notes receivable - net 7,795 7,739 7,609
Financing receivables - net 43,708 43,673 36,882
Financing receivables securitized - net 6,400 7,335 5,089
Other receivables 2,017 2,623 1,992
Equipment on operating leases - net 6,751 6,917 6,502
Inventories 8,937 8,160 10,056
Property and equipment - net 6,914 6,879 6,212
Goodwill 3,966 3,900 3,891
Other intangible assets - net 1,112 1,133 1,255
Retirement benefits 3,087 3,007 3,793
Deferred income taxes 1,833 1,814 914
Other assets 2,578 2,503 2,597
Total Assets $
101,371 $
104,087 $
91,620
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings $
17,117 $
17,939 $
14,129
Short-term securitization borrowings 6,116 6,995 4,864
Accounts payable and accrued expenses 13,361 16,130 13,108
Deferred income taxes 550 520 519
Long-term borrowings 39,933 38,477 35,071
Retirement benefits and other liabilities 2,115 2,140 2,493
Total liabilities 79,192 82,201 70,184
Redeemable noncontrolling interest 100 97 100
Stockholders' Equity
Total Deere & Company stockholders' equity 22,075 21,785 21,332
Noncontrolling interests 4 4 4
Total stockholders' equity 22,079 21,789 21,336
Total Liabilities and Stockholders' Equity $
101,371 $
104,087 $
91,620
See Condensed Notes to Interim Consolidated Financial
Statements.
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Three Months Ended January 28, 2024 and January 29, 2023
(In millions of dollars) Unaudited
2024 2023
Cash Flows from Operating Activities
Net income $
1,748 $
1,957
Adjustments to reconcile net income to net cash used for operating activities:
Provision (credit) for credit losses 31 (130)
Provision for depreciation and amortization 520 494
Share-based compensation expense 46 23
Provision (credit) for deferred income taxes 27 (56)
Changes in assets and liabilities:
Receivables related to sales (277) (1,015)
Inventories (723) (1,279)
Accounts payable and accrued expenses (2,327) (1,577)
Accrued income taxes payable/receivable 183 199
Retirement benefits (129) (48)
Other (7) 186
Net cash used for operating activities (908) (1,246)
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales) 7,752 7,198
Proceeds from sales of equipment on operating leases 506 497
Cost of receivables acquired (excluding receivables related to sales) (6,447) (6,322)
Purchases of property and equipment (362) (315)
Cost of equipment on operating leases acquired (454) (497)
Collateral on derivatives - net 310 345
Other (88) (146)
Net cash provided by investing activities 1,217 760
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less) (2,951) 697
Proceeds from borrowings issued (original maturities greater than three months) 5,287 2,505
Payments of borrowings (original maturities greater than three months) (3,237) (1,925)
Repurchases of common stock (1,328) (1,257)
Dividends paid (386) (341)
Other (30) (18)
Net cash used for financing activities (2,645) (339)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 16 62
Net Decrease in Cash, Cash Equivalents, and Restricted Cash (2,320) (763)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 7,620 4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period $
5,300 $
4,178
See Condensed Notes to Interim Consolidated Financial
Statements.
DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial Statements
(In millions of dollars) Unaudited
(1) The consolidated financial statements represent the consolidation of all Deere & Company's subsidiaries. The supplemental consolidating data is presented for
informational purposes. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidated financial
statements. In the supplemental consolidating data in Note 2 to the financial statements, the "Equipment Operations" represents the enterprise without "Financial
Services", which include the company's production and precision agriculture operations, small agriculture and turf operations, and construction and forestry
operations, and other corporate assets, liabilities, revenues, and expenses not reflected within "Financial Services."
DEERE & COMPANY
(2) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME
For the Three Months Ended January 28, 2024 and January 29, 2023
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES ELIMINATIONS CONSOLIDATED
2024 2023 2024 2023 2024 2023 2024 2023
Net Sales and Revenues
Net sales $
10,486 $
11,402 $
10,486 $
11,402
Finance and interest income 157 114 $
1,433 $
1,067 $
(230) $
(187) 1,360 994 1
Other income 289 234 119 177 (69) (155) 339 256 2, 3
Total 10,932 11,750 1,552 1,244 (299) (342) 12,185 12,652
Costs and Expenses
Cost of sales 7,207 7,940 (7) (6) 7,200 7,934 4
Research and development expenses 533 495 533 495
Selling, administrative and general expenses 876 783 192 172 (2) (3) 1,066 952 4
Interest expense 108 101 762 442 (68) (64) 802 479 1
Interest compensation to Financial Services 162 123 (162) (123) 1
Other operating expenses 90 53 339 392 (60) (146) 369 299 3, 5
Total 8,976 9,495 1,293 1,006 (299) (342) 9,970 10,159
Income before Income Taxes 1,956 2,255 259 238 2,215 2,493
Provision for income taxes 416 483 53 54 469 537
Income after Income Taxes 1,540 1,772 206 184 1,746 1,956
Equity in income of unconsolidated affiliates 1 1 1 2 1
Net Income 1,541 1,772 207 185 1,748 1,957
Less: Net loss attributable to noncontrolling interests (3) (2) (3) (2)
Net Income Attributable to Deere & Company $
1,544 $
1,774 $
207 $
185 $
1,751 $
1,959
(1)
Elimination of intercompany interest income and expense.
(2)
Elimination of Equipment Operations' margin from inventory transferred to equipment on operating leases.
(3) Elimination of income and expense between Equipment Operations and Financial Services related to intercompany guarantees of investments in certain international
markets and intercompany service revenues and expenses.
4
Elimination of intercompany service fees.
5
Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.
DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEETS
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES
ELIMINATIONS
CONSOLIDATED
Jan 28 Oct 29 Jan 29 Jan 28 Oct 29 Jan 29 Jan 28 Oct 29 Jan 29 Jan 28 Oct 29 Jan 29
2024 2023 2023 2024 2023 2023 2024 2023 2023 2024 2023 2023
Assets
Cash and cash equivalents $
3,467 $
5,720 $
2,665 $
1,670 $
1,738 $
1,311 $
5,137 $
7,458 $
3,976
Marketable securities 147 104 18 989 842 834 1,136 946 852
Receivables from Financial Services 4,296 4,516 5,348 $
(4,296) $
(4,516) $
(5,348) 6
Trade accounts and notes receivable - net 1,093 1,320 1,342 9,167 8,687 7,827 (2,465) (2,268) (1,560) 7,795 7,739 7,609 7
Financing receivables - net 72 64 51 43,636 43,609 36,831 43,708 43,673 36,882
Financing receivables securitized - net 6,400 7,335 5,089 6,400 7,335 5,089
Other receivables 1,515 1,813 1,583 559 869 489 (57) (59) (80) 2,017 2,623 1,992 7
Equipment on operating leases - net 6,751 6,917 6,502 6,751 6,917 6,502
Inventories 8,937 8,160 10,056 8,937 8,160 10,056
Property and equipment - net 6,879 6,843 6,178 35 36 34 6,914 6,879 6,212
Goodwill 3,966 3,900 3,891 3,966 3,900 3,891
Other intangible assets - net 1,112 1,133 1,255 1,112 1,133 1,255
Retirement benefits 3,013 2,936 3,728 75 72 67 (1) (1) (2) 3,087 3,007 3,793 8
Deferred income taxes 2,133 2,133 1,015 72 68 53 (372) (387) (154) 1,833 1,814 914 9
Other assets 2,058 1,948 1,936 546 559 684 (26) (4) (23) 2,578 2,503 2,597
Total Assets $
38,688 $
40,590 $
39,066 $
69,900 $
70,732 $
59,721 $
(7,217) $
(7,235) $
(7,167) $
101,371 $
104,087 $
91,620
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings $
1,203 $
1,230 $
969 $
15,914 $
16,709 $
13,160 $
17,117 $
17,939 $
14,129
Short-term securitization borrowings 6,116 6,995 4,864 6,116 6,995 4,864
Payables to Equipment Operations 4,296 4,516 5,348 $
(4,296) $
(4,516) $
(5,348) 6
Accounts payable and accrued expenses 12,677 14,862 11,819 3,232 3,599 2,952 (2,548) (2,331) (1,663) 13,361 16,130 13,108 7
Deferred income taxes 478 452 404 444 455 269 (372) (387) (154) 550 520 519 9
Long-term borrowings 7,270 7,210 8,155 32,663 31,267 26,916 39,933 38,477 35,071
Retirement benefits and other liabilities 2,006 2,032 2,384 110 109 111 (1) (1) (2) 2,115 2,140 2,493 8
Total liabilities 23,634 25,786 23,731 62,775 63,650 53,620 (7,217) (7,235) (7,167) 79,192 82,201 70,184
Redeemable noncontrolling interest 100 97 100 100 97 100
Stockholders' Equity
Total Deere & Company stockholders' equity 22,075 21,785 21,332 7,125 7,082 6,101 (7,125) (7,082) (6,101) 22,075 21,785 21,332 10
Noncontrolling interests 4 4 4 4 4 4
Financial Services' equity (7,125) (7,082) (6,101) 7,125 7,082 6,101 10
Adjusted total stockholders' equity 14,954 14,707 15,235 7,125 7,082 6,101 22,079 21,789 21,336
Total Liabilities and Stockholders' Equity $
38,688 $
40,590 $
39,066 $
69,900 $
70,732 $
59,721 $
(7,217) $
(7,235) $
(7,167) $
101,371 $
104,087 $
91,620
6 Elimination of receivables /payables between Equipment Operations and
Financial Services.
7 Primarily reclassification of sales incentive accruals on receivables sold
to Financial Services.
8
Reclassification of net pension assets / liabilities.
9 Reclassification of deferred tax assets /liabilities in the same taxing
jurisdictions.
10
Elimination of Financial Services' equity.
DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF CASH FLOWS
For the Three Months Ended January 28, 2024 and January 29, 2023
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES ELIMINATIONS CONSOLIDATED
2024 2023 2024 2023 2024 2023 2024 2023
Cash Flows from Operating Activities
Net income $
1,541 $
1,772 $
207 $
185 $
1,748 $
1,957
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses (2) 1 33 (131) 31 (130)
Provision for depreciation and amortization 302 279 254 252 $
(36) $
(37) 520 494 11
Share-based compensation expense 46 23 46 23 12
Distributed earnings of Financial Services 233 3 (233) (3) 13
Provision (credit) for deferred income taxes 48 (39) (21) (17) 27 (56)
Changes in assets and liabilities:
Receivables related to sales 209 (23) (486) (992) (277) (1,015) 14, 16
Inventories (687) (1,254) (36) (25) (723) (1,279) 15
Accounts payable and accrued expenses (2,155) (1,458) 25 145 (197) (264) (2,327) (1,577) 16
Accrued income taxes payable/receivable 165 192 18 7 183 199
Retirement benefits (127) (49) (2) 1 (129) (48)
Other (46) 17 61 163 (22) 6 (7) 186 11, 12,
15
Net cash provided by (used for) operating activities (519) (559) 575 605 (964) (1,292) (908) (1,246)
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales) 8,007 7,495 (255) (297) 7,752 7,198 14
Proceeds from sales of equipment on operating leases 506 497 506 497
Cost of receivables acquired (excluding receivables related to sales) (6,513) (6,375) 66 53 (6,447) (6,322) 14
Purchases of property and equipment (362) (315) (362) (315)
Cost of equipment on operating leases acquired (503) (531) 49 34 (454) (497) 15
Decrease in investment in Financial Services 10 (10) 17
Increase in trade and wholesale receivables (871) (1,499) 871 1,499 14
Collateral on derivatives - net 310 345 310 345
Other 10 (9) (98) (137) (88) (146)
Net cash provided by (used for) investing activities (342) (324) 838 (205) 721 1,289 1,217 760
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less) 78 (136) (3,029) 833 (2,951) 697
Change in intercompany receivables/payables 288 1,469 (288) (1,469)
Proceeds from borrowings issued (original maturities greater than three months) 11 1 5,276 2,504 5,287 2,505
Payments of borrowings (original maturities greater than three months) (40) (3,197) (1,925) (3,237) (1,925)
Repurchases of common stock (1,328) (1,257) (1,328) (1,257)
Capital investment from Equipment Operations (10) 10 17
Dividends paid (386) (341) (233) (3) 233 3 (386) (341) 13
Other (22) (6) (8) (12) (30) (18)
Net cash used for financing activities (1,399) (270) (1,489) (72) 243 3 (2,645) (339)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 11 48 5 14 16 62
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash (2,249) (1,105) (71) 342 (2,320) (763)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 5,755 3,781 1,865 1,160 7,620 4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period $
3,506 $
2,676 $
1,794 $
1,502 $
5,300 $
4,178
11
Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.
12
Reclassification of share-based compensation expense.
13 Elimination of dividends from Financial Services to the Equipment Operations, which are included in the Equipment
Operations operating activities.
14
Primarily reclassification of receivables related to the sale of equipment.
15
Reclassification of direct lease agreements with retail customers.
16
Reclassification of sales incentive accruals on receivables sold to Financial Services.
17
Elimination of change in investment from Equipment Operations to Financial Services.
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SOURCE John Deere Company
