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.


	Three Months Ended
	February 1		January 26
	2026		2025
Beginning of period balance	$	1,259	$	1,426
Warranty claims paid		(299)		(310)
New product warranty accruals		342		256
Foreign exchange		9		(12)
End of period balance	$	1,311	$	1,360

In certain international markets, we provide guarantees to banks for the retail financing of John Deere equipment. As of February 1, 2026, the notional value of these guarantees was $141. We may repossess the equipment collateralizing the receivables. At February 1, 2026, the accrued losses under these guarantees were not material. We also had guarantees to a VIE (see Note 1) totaling $164 at February 1, 2026.

We also had other miscellaneous contingent liabilities and guarantees totaling approximately $105 at February 1, 2026. The accrued liability for these contingencies was $25 at February 1, 2026.

At February 1, 2026, we had commitments of approximately $430 for the construction and acquisition of property and equipment. Also, at February 1, 2026, we had restricted assets of $342, classified as “Other assets,” which includes restricted cash primarily related to securitization of financing receivables (see Note 10) and cash that is legally restricted as to withdrawal or usage.

We are subject to various unresolved legal actions. The total accrued losses on unresolved legal matters were approximately $175 at February 1, 2026. The accrual includes estimated total accrued losses on unresolved legal matters in connection with a consolidated multidistrict class action antitrust lawsuit, which was recorded in the fourth quarter of 2025. The accrual is based on management’s best estimate of probable losses as the outcome of litigation is inherently uncertain. We believe the reasonably possible range of losses in excess of the recorded accruals for these unresolved legal actions would not have a material effect on our consolidated financial statements. The most prevalent legal claims relate to antitrust matters (including class action litigation), product liability (including asbestos-related liability), employment, patent, and trademark.