| REVENUE RECOGNITION |
(3) Revenue Recognition Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow: | | | | | | | | | | | | | | | | | | | Three Months Ended April 28, 2024 | | | | Production & Precision Ag | | Small Ag & Turf | | Construction
& Forestry | | Financial
Services | | Total | | Primary geographic markets: | | | | | | | | | | | | | | | | | United States | | $ | 3,881 | | $ | 1,842 | | $ | 2,500 | | $ | 996 | | $ | 9,219 | | Canada | | | 600 | | | 167 | | | 242 | | | 175 | | | 1,184 | | Western Europe | | | 659 | | | 688 | | | 470 | | | 40 | | | 1,857 | | Central Europe and CIS | | | 275 | | | 80 | | | 91 | | | 8 | | | 454 | | Latin America | | | 850 | | | 103 | | | 334 | | | 122 | | | 1,409 | | Asia, Africa, Oceania, and Middle East | | | 414 | | | 373 | | | 271 | | | 54 | | | 1,112 | | Total | | $ | 6,679 | | $ | 3,253 | | $ | 3,908 | | $ | 1,395 | | $ | 15,235 | | | | | | | | | | | | | | | | | | | Major product lines: | | | | | | | | | | | | | | | | | Production agriculture | | $ | 6,507 | | | | | | | | | | | $ | 6,507 | | Small agriculture | | | | | $ | 2,098 | | | | | | | | | 2,098 | | Turf | | | | | | 1,017 | | | | | | | | | 1,017 | | Construction | | | | | | | | $ | 1,736 | | | | | | 1,736 | | Compact construction | | | | | | | | | 695 | | | | | | 695 | | Roadbuilding | | | | | | | | | 1,080 | | | | | | 1,080 | | Forestry | | | | | | | | | 271 | | | | | | 271 | | Financial products | | | 39 | | | 32 | | | 17 | | $ | 1,395 | | | 1,483 | | Other | | | 133 | | | 106 | | | 109 | | | | | | 348 | | Total | | $ | 6,679 | | $ | 3,253 | | $ | 3,908 | | $ | 1,395 | | $ | 15,235 | | | | | | | | | | | | | | | | | | | Revenue recognized: | | | | | | | | | | | | | | | | | At a point in time | | $ | 6,609 | | $ | 3,213 | | $ | 3,882 | | $ | 35 | | $ | 13,739 | | Over time | | | 70 | | | 40 | | | 26 | | | 1,360 | | | 1,496 | | Total | | $ | 6,679 | | $ | 3,253 | | $ | 3,908 | | $ | 1,395 | | $ | 15,235 | |
| | Six Months Ended April 28, 2024 | | | | Production & Precision Ag | | Small Ag & Turf | | Construction
& Forestry | | Financial
Services | | Total | | Primary geographic markets: | | | | | | | | | | | | | | | | | United States | | $ | 6,602 | | $ | 3,187 | | $ | 4,596 | | $ | 1,965 | | $ | 16,350 | | Canada | | | 986 | | | 285 | | | 452 | | | 347 | | | 2,070 | | Western Europe | | | 1,162 | | | 1,205 | | | 831 | | | 80 | | | 3,278 | | Central Europe and CIS | | | 454 | | | 153 | | | 185 | | | 16 | | | 808 | | Latin America | | | 1,669 | | | 201 | | | 590 | | | 252 | | | 2,712 | | Asia, Africa, Oceania, and Middle East | | | 849 | | | 714 | | | 529 | | | 110 | | | 2,202 | | Total | | $ | 11,722 | | $ | 5,745 | | $ | 7,183 | | $ | 2,770 | | $ | 27,420 | | | | | | | | | | | | | | | | | | | Major product lines: | | | | | | | | | | | | | | | | | Production agriculture | | $ | 11,298 | | | | | | | | | | | $ | 11,298 | | Small agriculture | | | | | $ | 3,816 | | | | | | | | | 3,816 | | Turf | | | | | | 1,666 | | | | | | | | | 1,666 | | Construction | | | | | | | | $ | 3,220 | | | | | | 3,220 | | Compact construction | | | | | | | | | 1,321 | | | | | | 1,321 | | Roadbuilding | | | | | | | | | 1,843 | | | | | | 1,843 | | Forestry | | | | | | | | | 563 | | | | | | 563 | | Financial products | | | 99 | | | 58 | | | 35 | | $ | 2,770 | | | 2,962 | | Other | | | 325 | | | 205 | | | 201 | | | | | | 731 | | Total | | $ | 11,722 | | $ | 5,745 | | $ | 7,183 | | $ | 2,770 | | $ | 27,420 | | | | | | | | | | | | | | | | | | | Revenue recognized: | | | | | | | | | | | | | | | | | At a point in time | | $ | 11,564 | | $ | 5,669 | | $ | 7,126 | | $ | 62 | | $ | 24,421 | | Over time | | | 158 | | | 76 | | | 57 | | | 2,708 | | | 2,999 | | Total | | $ | 11,722 | | $ | 5,745 | | $ | 7,183 | | $ | 2,770 | | $ | 27,420 | |
| | | | | | | | | | | | | | | | | | | Three Months Ended April 30, 2023 | | | | Production & Precision Ag | | Small Ag & Turf | | Construction
& Forestry | | Financial
Services | | Total | | Primary geographic markets: | | | | | | | | | | | | | | | | | United States | | $ | 4,058 | | $ | 2,241 | | $ | 2,561 | | $ | 766 | | $ | 9,626 | | Canada | | | 546 | | | 189 | | | 302 | | | 153 | | | 1,190 | | Western Europe | | | 758 | | | 888 | | | 492 | | | 31 | | | 2,169 | | Central Europe and CIS | | | 393 | | | 212 | | | 90 | | | 8 | | | 703 | | Latin America | | | 1,543 | | | 201 | | | 388 | | | 106 | | | 2,238 | | Asia, Africa, Oceania, and Middle East | | | 614 | | | 469 | | | 335 | | | 43 | | | 1,461 | | Total | | $ | 7,912 | | $ | 4,200 | | $ | 4,168 | | $ | 1,107 | | $ | 17,387 | | | | | | | | | | | | | | | | | | | Major product lines: | | | | | | | | | | | | | | | | | Production agriculture | | $ | 7,733 | | | | | | | | | | | $ | 7,733 | | Small agriculture | | | | | $ | 2,952 | | | | | | | | | 2,952 | | Turf | | | | | | 1,099 | | | | | | | | | 1,099 | | Construction | | | | | | | | $ | 1,813 | | | | | | 1,813 | | Compact construction | | | | | | | | | 663 | | | | | | 663 | | Roadbuilding | | | | | | | | | 1,134 | | | | | | 1,134 | | Forestry | | | | | | | | | 429 | | | | | | 429 | | Financial products | | | 29 | | | 20 | | | 12 | | $ | 1,107 | | | 1,168 | | Other | | | 150 | | | 129 | | | 117 | | | | | | 396 | | Total | | $ | 7,912 | | $ | 4,200 | | $ | 4,168 | | $ | 1,107 | | $ | 17,387 | | | | | | | | | | | | | | | | | | | Revenue recognized: | | | | | | | | | | | | | | | | | At a point in time | | $ | 7,861 | | $ | 4,171 | | $ | 4,146 | | $ | 27 | | $ | 16,205 | | Over time | | | 51 | | | 29 | | | 22 | | | 1,080 | | | 1,182 | | Total | | $ | 7,912 | | $ | 4,200 | | $ | 4,168 | | $ | 1,107 | | $ | 17,387 | |
| | | | | | | | | | | | | | | | | | | Six Months Ended April 30, 2023 | | | | Production & Precision Ag | | Small Ag & Turf | | Construction
& Forestry | | Financial
Services | | Total | | Primary geographic markets: | | | | | | | | | | | | | | | | | United States | | $ | 6,686 | | $ | 3,906 | | $ | 4,461 | | $ | 1,479 | | $ | 16,532 | | Canada | | | 906 | | | 335 | | | 577 | | | 303 | | | 2,121 | | Western Europe | | | 1,259 | | | 1,452 | | | 857 | | | 60 | | | 3,628 | | Central Europe and CIS | | | 595 | | | 335 | | | 165 | | | 20 | | | 1,115 | | Latin America | | | 2,780 | | | 357 | | | 727 | | | 201 | | | 4,065 | | Asia, Africa, Oceania, and Middle East | | | 989 | | | 869 | | | 635 | | | 84 | | | 2,577 | | Total | | $ | 13,215 | | $ | 7,254 | | $ | 7,422 | | $ | 2,147 | | $ | 30,038 | | | | | | | | | | | | | | | | | | | Major product lines: | | | | | | | | | | | | | | | | | Production agriculture | | $ | 12,845 | | | | | | | | | | | $ | 12,845 | | Small agriculture | | | | | $ | 5,146 | | | | | | | | | 5,146 | | Turf | | | | | | 1,818 | | | | | | | | | 1,818 | | Construction | | | | | | | | $ | 3,295 | | | | | | 3,295 | | Compact construction | | | | | | | | | 1,136 | | | | | | 1,136 | | Roadbuilding | | | | | | | | | 1,952 | | | | | | 1,952 | | Forestry | | | | | | | | | 785 | | | | | | 785 | | Financial products | | | 60 | | | 38 | | | 25 | | $ | 2,147 | | | 2,270 | | Other | | | 310 | | | 252 | | | 229 | | | | | | 791 | | Total | | $ | 13,215 | | $ | 7,254 | | $ | 7,422 | | $ | 2,147 | | $ | 30,038 | | | | | | | | | | | | | | | | | | | Revenue recognized: | | | | | | | | | | | | | | | | | At a point in time | | $ | 13,109 | | $ | 7,200 | | $ | 7,375 | | $ | 50 | | $ | 27,734 | | Over time | | | 106 | | | 54 | | | 47 | | | 2,097 | | | 2,304 | | Total | | $ | 13,215 | | $ | 7,254 | | $ | 7,422 | | $ | 2,147 | | $ | 30,038 | |
We invoice in advance of recognizing the sale of certain products and the revenue for certain 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 $1,911, $1,697, and $1,622 at April 28, 2024, October 29, 2023, and April 30, 2023, respectively. The contract liability is reduced as the revenue is recognized. During the three months ended April 28, 2024 and April 30, 2023, $128 and $129, respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year. During the six months ended April 28, 2024 and April 30, 2023, $358 and $343, respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year. The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $1,633 at April 28, 2024. The estimated revenue to be recognized by fiscal year follows: remainder of 2024 – $297, 2025 – $438, 2026 – $352, 2027 – $224, 2028 – $137, 2029 – $97, and later years – $88. 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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