Operating cash flow was so low in Q1 2023 because the company recorded a net cash **used for operating activities of $(1,246) million**. Despite a significantly higher net income of **$1,957 million**, the inflow was offset by several factors. Notably, there was a substantial outflow due to **increased trade, notes, and financing receivables (an outflow of $(1,015) million)**, along with ongoing outflows in accounts payable and accrued expenses. Additionally, although the outflows for retirement benefits were lower compared to the previous year, the cumulative impact of these working capital adjustments led to the overall negative operating cash flow in Q1 2023.  **[0001558370-23-001877_de-20230129x10q.htm:47]** **[0001558370-23-001480_de-20230217xex99d1.htm:7]** 

Why was operating cash flow so low in Q1 2023?

The strong operating cash flow in Q4 2023 was driven by several factors including **higher net income**, which reflected robust operational performance; **lower inventory levels** that helped improve working capital efficiency; **increased receivables related to sales** reflecting higher sales activity; adjustments in **accounts payable and accrued expenses**; as well as supportive non-cash adjustments like **depreciation, amortization, and impairments**. Additionally, the **absence of a one-time other postretirement benefit contribution** that had impacted the previous period also played a key role in bolstering operating cash flow.  **[0001558370-23-019292_de-20231122xex99d1.htm:18]** **[0001558370-23-019292_de-20231122xex99d1.htm:8]** **[0001558370-23-019812_de-20231029x10k.htm:68]** 

What factors drove the strong operating cash flow in Q4 2023?

The common stock repurchases intensified in Q4 2023 primarily due to **strong cash flow and liquidity**, a disciplined **capital allocation strategy** that prioritizes returning excess cash to shareholders (with nearly **75%** of cash from operations being returned in recent years), and increased confidence in a **structurally more profitable business** as evidenced by a substantial dividend increase. Additionally, the acceleration was supported by the company's **$18 billion share repurchase plan**—with **$13 billion** still available—demonstrating a robust commitment to shareholder returns.  **[DE_3367923_17]** **[0001558370-23-019812_de-20231029x10k.htm:40]** **[0001558370-23-019812_de-20231029x10k.htm:127]** 

Why did common stock repurchases intensify in Q4 2023?

7019edff7cabd623526e0a7953ddc17b6cd13ffe1010fd7d8d403ed3385473e9

Based on the documents, there is no specific explanation for why cash and cash equivalents increased in Q3 2024. One document does note a change—from **$7,458 million** as of October 29, 2023, to **$7,004 million** as of July 28, 2024—but it explicitly states that the documents do not provide further details regarding the reasons behind this change.  **[0001558370-24-012529_de-20240728x10q.htm:3]** **[0001558370-24-012287_de-20240815xex99d1.htm:6]** **[20240815CG84231:6]** 

Why did Cash and cash equivalents jump in Q3 2024?

The sharp decline in **Trade accounts and notes receivable – net** in Q4 2024 was primarily driven by **lower sales** during the period. Additionally, an increase in **dealer inventory levels** contributed to the decline, as it resulted in **6% of receivables being outstanding for periods exceeding 12 months**.  **[0001558370-24-015876_de-20241121xex99d1.htm:15]** **[0001558370-24-016169_de-20241027x10k.htm:67]** 

What drove the sharp decline in Trade accounts and notes receivable in Q4 2024?

The reduction in **Short-term borrowings** in Q4 2024 was primarily due to a **substantial decrease** in **commercial paper**—from **$9,100 million** in 2023 to **$4,008 million** in 2024—and a decrease in **notes payable to banks** from **$483 million** to **$377 million**. Please note that although there was an increase in **long-term borrowings due within one year** (from **$8,331 million** to **$9,115 million**), this partially offset the decrease from the other factors.  **[20241121CG62899:7]** **[0001558370-24-016169_de-20241027x10k.htm:127]** **[0001558370-24-016169_de-20241027x10k.htm:92]** 

What factors contributed to the reduction in Short-term borrowings in Q4 2024?

In Q3 2024, Total Assets peaked at **$107,841 million** mainly due to increased financing receivables, higher equipment on operating leases, and the addition of a new “Assets Held for Sale” line item—all of which contributed to an overall boost of **$3,754 million**.  **[0001558370-24-012529_de-20240728x10q.htm:3]** **[0001558370-24-012287_de-20240815xex99d1.htm:6]**  In Q4 2024, however, these asset components did not maintain their previous pace of growth, resulting in a slight decline to **$107,320 million**.  **[0001558370-24-016169_de-20241027x10k.htm:92]** **[0001558370-24-016169_de-20241027x10k.htm:80]** 

Why did Total Assets peak in Q3 2024 before a slight decline in Q4 2024?

303a898a036ab81322050daa09f09d6bdd2a3e2200f9fac84b9a361c0cb6200c

The significant drop in Q4 2024 was primarily driven by **lower shipment volumes** across all major segments, which directly impacted net sales. Additionally, the company faced **challenging market conditions** such as weak farm fundamentals, high interest rates, and elevated used inventory levels, further reducing demand. There was also **planned underproduction** due to extended factory shutdowns implemented to match the lower demand, plus a slight negative impact from **currency translation**.  **[0001558370-24-015876_de-20241121xex99d2.htm:2]** **[DE_3409748_1]** **[0001558370-24-015876_de-20241121xex99d1.htm:0]** 

What drove the significant drop in Net Sales and Revenues in Q4 2024?

The **EPS (Net Income per Share - Basic)** was notably low in Q4 2024 because the company experienced a **47% decrease in net income** (dropping from **$2.369 billion** to **$1.245 billion**), accompanied by a **28% decline in net sales and revenues** (down from **$15.412 billion** to **$11.143 billion**). In addition, there were significant reductions in operating profit across key segments – for instance, a **64% decline in Production & Precision Agriculture** – and the company faced broader market challenges such as **lower shipment volumes and sales mix issues**.  **[0001558370-24-015876_de-20241121xex99d2.htm:2]** **[0001558370-24-015876_de-20241121xex99d1.htm:0]** 

Why was the EPS so low in Q4 2024?

The equity income turned negative in Q4 2024 because a **non-cash impairment charge** was recorded. Deere & Company recognized a **$28 million charge** due to an other-than-temporary decline in the value of its investment in the **Small Agriculture and Turf (SAT)** segment, which directly impacted the equity income line item.  **[20241121CG62899:9]** **[0001558370-24-015876_de-20241121xex99d1.htm:9]** **[0001558370-24-016169_de-20241027x10k.htm:104]** 

What caused the equity income to turn negative in Q4 2024?

The sharp decline in **Income before Income Taxes** in Q4 2024 was primarily due to a significant drop in **net sales**—a decrease of **28%** compared to Q4 2023—which led to lower revenues across all major segments. Additionally, **operating profit** fell by **52%**, driven by reduced shipment volumes, an unfavorable sales mix, and the impact of special items within the financial statements. These factors, combined with cost reductions that did not keep pace with the decline in revenue, collectively resulted in the approximately **51%** fall in income before income taxes for Q4 2024.  **[0001558370-24-015876_de-20241121xex99d1.htm:12]** **[20241121CG62899:6]** 

Why did Income before Taxes sharply decline in Q4 2024?

The lower annual net income in FY 2024 was mainly driven by **lower net sales and revenues**—a **16% decline** from FY 2023 due to **reduced sales volumes** amid challenging market conditions in the agricultural and construction sectors.  **[0001558370-24-015876_de-20241121xex99d2.htm:2]** **[0001558370-24-015876_de-20241121xex99d1.htm:13]**  Additionally, there were **segment-specific declines**, with Production & Precision Agriculture and Small Agriculture & Turf both falling by **22%**, and Construction & Forestry dropping by **12%**.  **[0001558370-24-015876_de-20241121xex99d1.htm:5]**  The impact was compounded by **increased operating costs**, such as higher selling, administrative, and general expenses, and a **higher provision for credit losses** in financial services, which further reduced net income.  **[0001558370-24-015876_de-20241121xex99d1.htm:13]** **[0001558370-24-015876_de-20241121xex99d1.htm:2]**  Finally, ongoing **strategic investments and structural adjustments** added short-term costs while the company focused on long-term profitability.  **[0001558370-24-016169_de-20241027x10k.htm:61]** **[0001558370-25-000112_de-20250226xdef14a.htm:10]** 

What factors led to the lower annual net income in FY 2024?

2108eb4132a062a4403616da8436d4fd88a94dfdc1f446411b9d3ff4cf886d8a

Cash and cash equivalents (USD, millions)

Marketable securities (USD, millions)

Trade accounts and notes receivable – net (USD, millions)

Financing receivables – net (USD, millions)

Financing receivables securitized – net (USD, millions)

Other receivables (USD, millions)

Equipment on operating leases – net (USD, millions)

Inventories (USD, millions)

Property and equipment – net (USD, millions)

Goodwill (USD, millions)

Other intangible assets – net (USD, millions)

Retirement benefits (USD, millions)

Deferred income taxes (USD, millions)

Other assets (USD, millions)

Assets held for sale (USD, millions)

Total Assets (USD, millions)

Short-term borrowings (USD, millions)

Short-term securitization borrowings (USD, millions)

Accounts payable and accrued expenses (USD, millions)

Deferred income taxes (Liabilities) (USD, millions)

Long-term borrowings (USD, millions)

Retirement benefits and other liabilities (USD, millions)

Liabilities held for sale (USD, millions)

Total liabilities (USD, millions)

Redeemable noncontrolling interest (USD, millions)

Total Deere & Company stockholders’ equity (USD, millions)

Noncontrolling interests (USD, millions)

Total stockholders’ equity (USD, millions)

Total Liabilities and Stockholders’ Equity (USD, millions)

436a8022c08127c7d60610eb9fd3945e44dfba5f4e0f47a1fa3ad6b3caa55253

Net income [USD, millions]

Provision (credit) for credit losses [USD, millions]

Provision for depreciation and amortization [USD, millions]

Impairments and other adjustments [USD, millions]

Share-based compensation expense [USD, millions]

Provision (credit) for deferred income taxes [USD, millions]

Net cash provided by operating activities [USD, millions]

Collections of receivables (excluding receivables related to sales) [USD, millions]

Proceeds from sales of equipment on operating leases [USD, millions]

Cost of receivables acquired (excluding receivables related to sales) [USD, millions]

Purchases of property and equipment [USD, millions]

Cost of equipment on operating leases acquired [USD, millions]

Other Investing Activities [USD, millions]

Net cash used for investing activities [USD, millions]

Net proceeds (payments) in short-term borrowings (original maturities three months or less) [USD, millions]

Proceeds from borrowings issued (original maturities greater than three months) [USD, millions]

Payments of borrowings (original maturities greater than three months) [USD, millions]

Repurchases of common stock [USD, millions]

Dividends paid [USD, millions]

Other Financing Activities [USD, millions]

Net cash provided by (used for) financing activities [USD, millions]

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash [USD, millions]

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash [USD, millions]

Collateral on derivatives – net [USD, millions]

Cash, Cash Equivalents, and Restricted Cash at Beginning of Year [USD, millions]

Cash, Cash Equivalents, and Restricted Cash at End of Year [USD, millions]

1f9a0c8bbc377c1c4739eb8b9b6299e8e2811c9c206f811db7a53144cd2bc9ca

Net Sales and Revenues (USD, millions)

Net Sales (USD, millions)

Finance and Interest Income (USD, millions)

Other Income (USD, millions)

Cost of Sales (USD, millions)

Research and Development Expenses (USD, millions)

Selling, Administrative and General Expenses (USD, millions)

Interest Expense (USD, millions)

Other Operating Expenses (USD, millions)

Total Costs and Expenses (USD, millions)

Income before Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Income after Income Taxes (USD, millions)

Equity in Income of Unconsolidated Affiliates (USD, millions)

Net Income (USD, millions)

Net Loss Attributable to Noncontrolling Interests (USD, millions)

Net Income Attributable to Deere & Company (USD, millions)

Net Income per Share - Basic (USD)

Net Income per Share - Diluted (USD)

Dividends declared per share (USD)

Dividends paid per share (USD)

Average number of common shares outstanding - Basic (millions)

Average number of common shares outstanding - Diluted (millions)

b95be30939f13d8cb4bddd17a53b24d0c10e197e9d148d8751fc01e33153f9b3

b71c3d689733f5f8e8e6a52276d552d6477ab99c39a625353706f63af3c7de63

ea0d3c3862279854fbd8c262797c847867c15cd9681d1480c7c727d78113f162

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

be969b4c18e7cebc456963ca595d90f064b18dcbf70b967f6335fc2227514163

Year-over-year Sales Volume Change for Production & Precision Agriculture in U.S. and Canada (percentage)

Year-over-year Sales Volume Change for Production & Precision Agriculture in Brazil (percentage)

Year-over-year Sales Volume Change for Production & Precision Agriculture in Europe (percentage)

Year-over-year Sales Volume Change for Small Agriculture & Turf in U.S. and Canada (percentage)

Year-over-year Sales Volume Change for Small Agriculture & Turf in Europe (percentage)

Year-over-year Sales Volume Change for Small Agriculture & Turf in Mexico (percentage)

Year-over-year Sales Volume Change for Construction & Forestry in U.S. and Canada (percentage)

Year-over-year Sales Volume Change for Construction & Forestry outside U.S. and Canada (percentage)

4eb2018ef49112f96dccf8eb17c31f24a3c71b344766ed4d06cb8efeac1b086d

962e82de5e1cb08fa1d9c92c92d24306c31320c9ed8139c1a5939439897daeaf

United States

Canada

Western Europe

Central Europe and CIS

Latin America

Asia, Africa, Oceania, and Middle East

U.S. and Canada

- Equipment Operations Net Sales

- Financial Services Revenues

Outside U.S. and Canada

Other Revenues

Total Revenue

fedfe9030138ec56dc9a75913f2c7c56c5e551d1edf079e28030adc80b62d85e

DEERE & (DE)

Financials