| REVENUE RECOGNITION |
5. REVENUE RECOGNITION Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow: | | | | | | | | | | | | | | | | | | | PPA | | SAT | | CF | | FS | | Total | | 2025 | | | | | | | | | | | | | | | | | Primary geographic markets: | | | | | | | | | | | | | | | | | United States | | $ | 7,753 | | $ | 5,282 | | $ | 6,489 | | $ | 4,450 | | $ | 23,974 | | Canada | | | 1,735 | | | 496 | | | 743 | | | 761 | | | 3,735 | | Western Europe | | | 2,070 | | | 2,340 | | | 1,955 | | | 185 | | | 6,550 | | Central Europe and CIS | | | 832 | | | 359 | | | 373 | | | 11 | | | 1,575 | | Latin America | | | 4,021 | | | 453 | | | 936 | | | 197 | | | 5,607 | | Asia, Africa, Oceania, and Middle East | | | 1,338 | | | 1,534 | | | 1,154 | | | 217 | | | 4,243 | | Total | | $ | 17,749 | | $ | 10,464 | | $ | 11,650 | | $ | 5,821 | | $ | 45,684 | | | | | | | | | | | | | | | | | | | Major product lines: | | | | | | | | | | | | | | | | | Production agriculture | | $ | 16,960 | | | | | | | | | | | $ | 16,960 | | Small agriculture | | | | | $ | 7,215 | | | | | | | | | 7,215 | | Turf | | | | | | 2,731 | | | | | | | | | 2,731 | | Construction | | | | | | | | $ | 4,570 | | | | | | 4,570 | | Compact construction | | | | | | | | | 1,922 | | | | | | 1,922 | | Roadbuilding | | | | | | | | | 3,552 | | | | | | 3,552 | | Forestry | | | | | | | | | 1,124 | | | | | | 1,124 | | Financial products | | | 257 | | | 134 | | | 84 | | $ | 5,821 | | | 6,296 | | Other | | | 532 | | | 384 | | | 398 | | | | | | 1,314 | | Total | | $ | 17,749 | | $ | 10,464 | | $ | 11,650 | | $ | 5,821 | | $ | 45,684 | | | | | | | | | | | | | | | | | | | Revenue recognized: | | | | | | | | | | | | | | | | | At a point in time | | $ | 17,311 | | $ | 10,249 | | $ | 11,494 | | $ | 139 | | $ | 39,193 | | Over time | | | 438 | | | 215 | | | 156 | | | 5,682 | | | 6,491 | | Total | | $ | 17,749 | | $ | 10,464 | | $ | 11,650 | | $ | 5,821 | | $ | 45,684 | |
| | | | | | | | | | | | | | | | | | | PPA | | SAT | | CF | | FS | | Total | | 2024 | | | | | | | | | | | | | | | | | Primary geographic markets: | | | | | | | | | | | | | | | | | United States | | $ | 11,741 | | $ | 6,249 | | $ | 8,086 | | $ | 4,166 | | $ | 30,242 | | Canada | | | 1,818 | | | 605 | | | 760 | | | 717 | | | 3,900 | | Western Europe | | | 2,068 | | | 2,203 | | | 1,729 | | | 189 | | | 6,189 | | Central Europe and CIS | | | 787 | | | 284 | | | 381 | | | 36 | | | 1,488 | | Latin America | | | 3,482 | | | 433 | | | 1,170 | | | 453 | | | 5,538 | | Asia, Africa, Oceania, and Middle East | | | 1,530 | | | 1,480 | | | 1,128 | | | 221 | | | 4,359 | | Total | | $ | 21,426 | | $ | 11,254 | | $ | 13,254 | | $ | 5,782 | | $ | 51,716 | | | | | | | | | | | | | | | | | | | Major product lines: | | | | | | | | | | | | | | | | | Production agriculture | | $ | 20,574 | | | | | | | | | | | $ | 20,574 | | Small agriculture | | | | | $ | 7,693 | | | | | | | | | 7,693 | | Turf | | | | | | 3,023 | | | | | | | | | 3,023 | | Construction | | | | | | | | $ | 5,523 | | | | | | 5,523 | | Compact construction | | | | | | | | | 2,459 | | | | | | 2,459 | | Roadbuilding | | | | | | | | | 3,641 | | | | | | 3,641 | | Forestry | | | | | | | | | 1,108 | | | | | | 1,108 | | Financial products | | | 240 | | | 131 | | | 67 | | $ | 5,782 | | | 6,220 | | Other | | | 612 | | | 407 | | | 456 | | | | | | 1,475 | | Total | | $ | 21,426 | | $ | 11,254 | | $ | 13,254 | | $ | 5,782 | | $ | 51,716 | | | | | | | | | | | | | | | | | | | Revenue recognized: | | | | | | | | | | | | | | | | | At a point in time | | $ | 21,059 | | $ | 11,084 | | $ | 13,137 | | $ | 133 | | $ | 45,413 | | Over time | | | 367 | | | 170 | | | 117 | | | 5,649 | | | 6,303 | | Total | | $ | 21,426 | | $ | 11,254 | | $ | 13,254 | | $ | 5,782 | | $ | 51,716 | |
| | | | | | | | | | | | | | | | | | | PPA | | SAT | | CF | | FS | | Total | | 2023 | | | | | | | | | | | | | | | | | Primary geographic markets: | | | | | | | | | | | | | | | | | United States | | $ | 13,917 | | $ | 7,796 | | $ | 9,109 | | $ | 3,283 | | $ | 34,105 | | Canada | | | 1,738 | | | 687 | | | 1,221 | | | 641 | | | 4,287 | | Western Europe | | | 2,640 | | | 2,824 | | | 1,725 | | | 132 | | | 7,321 | | Central Europe and CIS | | | 1,218 | | | 530 | | | 353 | | | 36 | | | 2,137 | | Latin America | | | 5,608 | | | 707 | | | 1,429 | | | 453 | | | 8,197 | | Asia, Africa, Oceania, and Middle East | | | 2,166 | | | 1,679 | | | 1,183 | | | 176 | | | 5,204 | | Total | | $ | 27,287 | | $ | 14,223 | | $ | 15,020 | | $ | 4,721 | | $ | 61,251 | | | | | | | | | | | | | | | | | | | Major product lines: | | | | | | | | | | | | | | | | | Production agriculture | | $ | 26,450 | | | | | | | | | | | $ | 26,450 | | Small agriculture | | | | | $ | 10,122 | | | | | | | | | 10,122 | | Turf | | | | | | 3,505 | | | | | | | | | 3,505 | | Construction | | | | | | | | $ | 6,842 | | | | | | 6,842 | | Compact construction | | | | | | | | | 2,451 | | | | | | 2,451 | | Roadbuilding | | | | | | | | | 3,794 | | | | | | 3,794 | | Forestry | | | | | | | | | 1,429 | | | | | | 1,429 | | Financial products | | | 219 | | | 96 | | | 58 | | $ | 4,721 | | | 5,094 | | Other | | | 618 | | | 500 | | | 446 | | | | | | 1,564 | | Total | | $ | 27,287 | | $ | 14,223 | | $ | 15,020 | | $ | 4,721 | | $ | 61,251 | | | | | | | | | | | | | | | | | | | Revenue recognized: | | | | | | | | | | | | | | | | | At a point in time | | $ | 26,969 | | $ | 14,092 | | $ | 14,915 | | $ | 111 | | $ | 56,087 | | Over time | | | 318 | | | 131 | | | 105 | | | 4,610 | | | 5,164 | | Total | | $ | 27,287 | | $ | 14,223 | | $ | 15,020 | | $ | 4,721 | | $ | 61,251 | |
The “Financial products” category above includes finance and interest income from retail notes related to sales of John Deere equipment to retail customers, wholesale financing to dealers of John Deere equipment, and revolving charge accounts; lease income from retail leases of John Deere equipment; and revenue from extended warranties. The ”Other” category includes sales of components to other equipment manufacturers that are included in “Net sales;” revenue earned over time from precision guidance, telematics, and other information enabled solutions; revenue from service performed at company owned dealerships and service centers; gains on disposition of property and businesses; trademark licensing revenue; and other miscellaneous revenue items that are included in “Other income.” Revenues are assigned to the geographic market based on customer location. 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 $2,039 and $1,923 at November 2, 2025, and October 27, 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 $654 in 2025, $553 in 2024, and $547 in 2023. The amount of unsatisfied performance obligations for contracts with an original duration greater than one year and the estimated revenue to be recognized by fiscal year at November 2, 2025, follows: | | | | | Year | | Net Sales and Revenues | | 2026 | | $ | 502 | | 2027 | | | 463 | | 2028 | | | 353 | | 2029 | | | 227 | | 2030 | | | 167 | | Later years | | | 98 | | Total | | $ | 1,810 | |
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.
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