RECEIVABLES

12 Months Ended

Nov. 02, 2025

RECEIVABLES

RECEIVABLES

11. RECEIVABLES

Trade Accounts and Notes Receivable

Trade accounts and notes receivable arise from sales of goods and services to dealers. See Note 2 for our revenue recognition policy. We evaluate and assess customers’ creditworthiness on an ongoing basis. Receivables are secured with collateral or other credit enhancements. Trade accounts and notes receivable at the end of 2025 and 2024 follow:


		2025			2024
Trade accounts and notes receivable:
Production & Precision Agriculture		$	1,673		$	1,532
Small Agriculture & Turf			1,967			1,657
Construction & Forestry			1,677			2,137
Trade accounts and notes receivable – net		$	5,317		$	5,326

These receivables have significant concentrations of credit risk in the agriculture and turf and construction and forestry markets. Historically, credit losses have been low. There is not a disproportionate concentration of credit risk with any single customer. On a geographic basis, 48% of our trade accounts and notes receivable are located in the U.S. and Canada at November 2, 2025.

At November 2, 2025, and October 27, 2024, trade accounts and notes receivable balances outstanding greater than 12 months were $172 and $298, respectively.

The allowance for credit losses on trade accounts and notes receivable at November 2, 2025, October 27, 2024, and October 29, 2023, as well as the related activity, follow:


		2025			2024			2023
Beginning of year balance		$	66		$	35		$	36
Provision			10			34			7
Write-offs			(8)			(5)			(8)
Translation adjustments			1			2
End of year balance*		$	69		$	66		$	35

* Individual allowances were not significant.

The equipment operations sell a significant portion of their trade receivables to financial services. Compensation is provided to financial services at market interest rates.

Financing Receivables ‒ Overall

Financing receivables originate under the following circumstances:

●

Retail customers purchase (or lease) equipment from a dealer and finance the equipment through John Deere Financial.

●

We sell the equipment to a dealer under trade terms. Trade terms end and the dealer finances the equipment on a wholesale receivable. Shown as wholesale notes in “Financing Receivables – Related to the Sale of Equipment.”

●

A dealer finances the purchase of used equipment through John Deere Financial.

●

We sell (or lease) the equipment directly to a retail customer with terms typically greater than 12 months. Shown as retail notes or sales-type leases in the “Financing Receivables –Related to the Sale of Equipment.”

●

The retail customer utilizes a revolving credit product to finance parts, service, or input costs.

Financing receivables at the end of 2025 and 2024 follow:


		2025						2024
		Unrestricted/Securitized						Unrestricted/Securitized
Retail notes:
Agriculture and turf		$	25,356		$	5,805		$	25,102		$	7,203
Construction and forestry			5,454			1,216			4,550			1,754
Total			30,810			7,021			29,652			8,957
Wholesale notes			8,274						8,951
Revolving charge accounts			4,872						4,730
Financing leases (direct and sales-type)			2,923						3,032
Total financing receivables			46,879			7,021			46,365			8,957
Less:
Unearned finance income:
Retail notes			1,667			149			1,467			187
Wholesale notes			19						24
Revolving charge accounts			71						76
Financing leases			330						307
Total			2,087			149			1,874			187
Allowance for credit losses			217			41			182			47
Financing receivables – net		$	44,575		$	6,831		$	44,309		$	8,723

Credit risk continues to be evaluated by market, rather than by operating segment. Financing receivables have significant concentrations of credit risk in the agriculture and turf and construction and forestry markets. On a geographic basis, 89% of our financing receivables were located in the U.S. and Canada at November 2, 2025. There is no disproportionate concentration of credit risk with any single customer or dealer. We retain as collateral security in the equipment associated with most financing receivables. Theft and physical damage insurance are required for this equipment.

Financing Receivables ‒ Related to the Sale of Equipment

Financing receivables related to the sale of equipment are presented in the operating section of the cash flow statement. The balances at the end of 2025 and 2024 were as follows:


		2025			2024
Retail notes*:
Agriculture and turf		$	174		$	376
Construction and forestry			238			271
Total			412			647
Wholesale notes			8,274			8,951
Direct financing and sales-type leases*			228			295
Total financing receivables			8,914			9,893
Less:
Unearned finance income:
Retail notes			27			37
Wholesale notes			19			24
Direct financing and sales-type leases			60			47
Total			106			108
Financing receivables related to our sales of equipment		$	8,808		$	9,785

* These balances arise from sales and direct financing leases of equipment by company-owned dealers or through direct sales.

Financing Receivables ‒ Contractual Installment Payments

Financing receivable installments, including unearned finance income, at November 2, 2025, and October 27, 2024, were scheduled as follows:


		2025						2024
		Unrestricted/Securitized						Unrestricted/Securitized
Due in months:
0 – 12		$	21,667		$	3,107		$	23,872		$	3,555
13 – 24			9,667			2,043			8,187			2,507
25 – 36			7,313			1,262			6,356			1,702
37 – 48			4,950			529			4,509			918
49 – 60			2,591			75			2,660			266
Thereafter			691			5			781			9
Total		$	46,879		$	7,021		$	46,365		$	8,957

Financing Receivables ‒ Credit Quality Analysis

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.

Finance income for non-performing receivables is recognized on a cash basis. Accrual of finance income is resumed when the receivable becomes contractually current and collections are reasonably assured.

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:


		November 2, 2025
		2025			2024			2023			2022
Retail customer receivables:
Agriculture and turf:
Current		$	12,380		$	8,389		$	5,228		$	3,003
30-59 days past due			36			73			59			38
60-89 days past due			14			37			28			13
90+ days past due			1			2						1
Non-performing			41			109			98			57
Construction and forestry:
Current			3,175			2,038			1,034			463
30-59 days past due			42			47			31			12
60-89 days past due			21			17			12			8
90+ days past due			1			6			3			2
Non-performing			31			94			78			38
Total		$	15,742		$	10,812		$	6,571		$	3,635

Write-offs for the period ended November 2, 2025:
Agriculture and turf		$	6		$	32		$	34		$	21
Construction and forestry			9			38			29			12
Total		$	15		$	70		$	63		$	33

		November 2, 2025
		2021			Prior Years			Revolving Charge Accounts			Total
Retail customer receivables:
Agriculture and turf:
Current		$	1,310		$	281		$	4,608		$	35,199
30-59 days past due			15			7			37			265
60-89 days past due			8			2			10			112
90+ days past due			2									6
Non-performing			30			17			14			366
Construction and forestry:
Current			130			12			124			6,976
30-59 days past due			4			1			5			142
60-89 days past due			1			1			2			62
90+ days past due						1						13
Non-performing			19			7			1			268
Total		$	1,519		$	329		$	4,801		$	43,409

Write-offs for the period ended November 2, 2025:
Agriculture and turf		$	9		$	7		$	102		$	211
Construction and forestry			3			3			7			101
Total		$	12		$	10		$	109		$	312


		October 27, 2024
		2024			2023			2022			2021
Retail customer receivables:
Agriculture and turf:
Current		$	14,394		$	8,305		$	5,191		$	2,833
30-59 days past due			44			101			55			27
60-89 days past due			22			50			21			10
90+ days past due			1			1			1			2
Non-performing			23			91			76			50
Construction and forestry:
Current			3,100			1,841			1,064			458
30-59 days past due			54			47			25			10
60-89 days past due			25			28			10			7
90+ days past due			1			4			3			1
Non-performing			40			94			67			32
Total		$	17,704		$	10,562		$	6,513		$	3,430

Write-offs for the period ended October 27, 2024:
Agriculture and turf		$	5		$	33		$	25		$	11
Construction and forestry			9			38			30			11
Total		$	14		$	71		$	55		$	22

		October 27, 2024
		2020			Prior Years			Revolving Charge Accounts			Total
Retail customer receivables:
Agriculture and turf:
Current		$	992		$	253		$	4,465		$	36,433
30-59 days past due			11			4			40			282
60-89 days past due			8			2			13			126
90+ days past due												5
Non-performing			20			13			15			288
Construction and forestry:
Current			102			45			114			6,724
30-59 days past due			3			2			4			145
60-89 days past due			2						2			74
90+ days past due												9
Non-performing			9			5			1			248
Total		$	1,147		$	324		$	4,654		$	44,334

Write-offs for the period ended October 27, 2024:
Agriculture and turf		$	11		$	5		$	87		$	177
Construction and forestry			5			3			8			104
Total		$	16		$	8		$	95		$	281

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


		2025			2024
Wholesale receivables:
Agriculture and turf:
Current		$	6,731		$	7,568
30+ days past due
Non-performing						1
Construction and forestry:
Current			1,524			1,358
30+ days past due
Non-performing
Total		$	8,255		$	8,927

Financing Receivables ‒ Allowance for Credit Losses

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


		Retail Notes			Revolving
		& Financing			Charge			Wholesale
		Leases			Accounts			Receivables			Total
2025
Allowance:
Beginning of year balance		$	219		$	8		$	2		$	229
Provision			217			67						284
Write-offs			(202)			(110)						(312)
Recoveries			15			42						57
End of year balance*		$	249		$	7		$	2		$	258

Financing receivables:
End of year balance		$	38,608		$	4,801		$	8,255		$	51,664


2024
Allowance:
Beginning of year balance		$	172		$	21		$	4		$	197
Provision			262			52						314
Provision reversal for assets held for sale			(38)									(38)
Provision subtotal			224			52						276
Write-offs			(186)			(95)						(281)
Recoveries			13			30						43
Translation adjustments			(4)						(2)			(6)
End of year balance*		$	219		$	8		$	2		$	229

Financing receivables:
End of year balance		$	39,680		$	4,654		$	8,927		$	53,261


2023
Allowance:
Beginning of year balance		$	299		$	22		$	4		$	325
Provision			97			22						119
Provision reversal for assets held for sale			(142)									(142)
Provision (credit) subtotal			(45)			22						(23)
Write-offs			(84)			(45)						(129)
Recoveries			21			22						43
Translation adjustments			(19)									(19)
End of year balance*		$	172		$	21		$	4		$	197

Financing receivables:
End of year balance		$	39,585		$	4,698		$	6,922		$	51,205

* Individual allowances were not significant.

We monitor the economy as part of the allowance setting process, including potential impacts of the agricultural market business cycle, global trade policies, and interest rates. Adjustments to the allowance are incorporated, as necessary.

The allowance for credit losses on retail notes and financing lease receivables increased in 2025, primarily due to higher expected losses on agriculture and turf customer accounts as a result of elevated delinquencies and a decline in market conditions.

During 2024, the financial services business in Brazil met the held for sale criteria, therefore the receivables were reclassified to “Assets held for sale” and the associated allowance for credit losses was reversed. These operations were deconsolidated in the second quarter of 2025 (see Note 3). Excluding the impact of BJD, the allowance for credit losses on retail notes and financing lease receivables increased in 2024, primarily due to higher expected losses on agriculture customer accounts as a result of elevated delinquencies and a decline in market conditions, partially offset by a decrease in the allowance on revolving charge accounts due to write-offs of seasonal financing program accounts and future recoveries expected.

During 2023, the financial services business in Russia met the held for sale criteria. The financing receivables in Russia were reclassified to “Other assets” and the associated allowance for credit losses was reversed. These operations were sold in the second quarter of 2023 (see Note 3). Excluding the portfolio in Russia, the allowance increased in 2023, primarily driven by growth in the retail notes and financing lease portfolios and higher expected losses on turf and construction customer accounts.

Financing receivables analysis metrics follow:


		2025			2024
Percent of financing receivables portfolio:
Past-due amounts			1.16%			1.20%
Non-performing			1.23%			1.01%
Allowance for credit losses			0.50%			0.43%
Deposits held as credit enhancements		$	134		$	142

Financing Receivables – 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. Finance charges continue to accrue during the deferral or extension period except for 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.

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 in 2025 and 2024 were as follows:


		2025			2024
Current		$	160		$	78
30-59 days past due			7			1
60-89 days past due			3			2
Non-performing			16			13
Total		$	186		$	94
Percent of financing receivables portfolio			0.36%			0.18%

Modifications offered include payment deferrals, term extensions, or a combination thereof. The weighted-average effects for contract modifications were as follows in months:


		2025			2024
Payment deferral			7			8
Term extension			10			10
Combination modifications
Payment deferral			5			4
Term extension			8			7

Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during 2025 and 2024. At November 2, 2025, commitments to provide additional financing to these customers were $23.

Financing Receivables – Troubled Debt Restructurings

Prior to adopting ASU 2022-02, modifications of loans to borrowers experiencing financial difficulty were considered troubled debt restructurings when the significant modification of the receivable resulted in a concession we would not otherwise consider.

The following table quantifies troubled debt restructurings:


		2023
Number of receivable contracts			209
Pre-modification balance		$	10
Post modification balance			9

Troubled debt restructurings related to retail notes. In 2023, there were no significant troubled debt restructurings that subsequently defaulted and were written off.

Other Receivables

Other receivables at the end of 2025 and 2024 consisted of:


		2025			2024
Taxes receivable		$	1,554		$	1,874
Collateral on derivatives			72			254
Receivables from unconsolidated affiliates			396			3
Other			381			414
Other receivables		$	2,403		$	2,545