http://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://jdcc.deere.com/20250126#ForeignDebtSecuritiesMemberhttp://jdcc.deere.com/20250126#ForeignDebtSecuritiesMemberhttp://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://fasb.org/us-gaap/2024#OtherAssetshttp://fasb.org/us-gaap/2024#OtherAssetshttp://fasb.org/us-gaap/2024#InterestExpense http://fasb.org/us-gaap/2024#SellingGeneralAndAdministrativeExpensehttp://fasb.org/us-gaap/2024#InterestExpense http://fasb.org/us-gaap/2024#SellingGeneralAndAdministrativeExpensehttp://jdcc.deere.com/20250126#UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberhttp://jdcc.deere.com/20250126#UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberhttp://jdcc.deere.com/20250126#UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberhttp://jdcc.deere.com/20250126#UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberhttp://jdcc.deere.com/20250126#LongTermDebtAndFinanceLeasesNoncurrenthttp://jdcc.deere.com/20250126#LongTermDebtAndFinanceLeasesNoncurrent250025002500http://fasb.org/us-gaap/2024#OtherAssetshttp://fasb.org/us-gaap/2024#OtherAssetshttp://fasb.org/us-gaap/2024#OtherAssetshttp://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://fasb.org/us-gaap/2024#SecuredDebtCurrenthttp://jdcc.deere.com/20250126#ForeignDebtSecuritiesMemberhttp://jdcc.deere.com/20250126#LongTermDebtAndFinanceLeasesNoncurrentDEERE JOHN CAPITAL CORP0000027673false--11-02Q10000027673us-gaap:RetainedEarningsMember2025-01-260000027673us-gaap:NoncontrollingInterestMember2025-01-260000027673us-gaap:CommonStockMember2025-01-260000027673us-gaap:RetainedEarningsMember2024-10-270000027673us-gaap:NoncontrollingInterestMember2024-10-270000027673us-gaap:CommonStockMember2024-10-270000027673us-gaap:RetainedEarningsMember2024-01-280000027673us-gaap:NoncontrollingInterestMember2024-01-280000027673us-gaap:CommonStockMember2024-01-280000027673us-gaap:RetainedEarningsMember2023-10-290000027673us-gaap:NoncontrollingInterestMember2023-10-290000027673us-gaap:CommonStockMember2023-10-290000027673us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-290000027673us-gaap:AccumulatedTranslationAdjustmentMember2025-01-260000027673us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-260000027673us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2025-01-260000027673us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-01-260000027673us-gaap:AccumulatedTranslationAdjustmentMember2024-10-270000027673us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-10-270000027673us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-10-270000027673us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-10-270000027673us-gaap:AccumulatedTranslationAdjustmentMember2024-01-280000027673us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-280000027673us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-01-280000027673us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-280000027673jdcc:ConstructionAndForestryEquipmentMember2025-01-260000027673jdcc:AgricultureAndTurfEquipmentMember2025-01-260000027673jdcc:ConstructionAndForestryEquipmentMember2024-10-270000027673jdcc:AgricultureAndTurfEquipmentMember2024-10-270000027673jdcc:ConstructionAndForestryEquipmentMember2024-01-280000027673jdcc:AgricultureAndTurfEquipmentMember2024-01-280000027673us-gaap:NoncontrollingInterestMember2024-10-282025-01-260000027673us-gaap:NoncontrollingInterestMember2023-10-302024-01-280000027673us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-10-282025-01-260000027673us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-302024-01-280000027673us-gaap:InterestRateSwapMember2024-10-282025-01-260000027673us-gaap:InterestRateSwapMember2023-10-302024-01-280000027673us-gaap:AccumulatedTranslationAdjustmentMember2024-10-282025-01-260000027673us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-10-282025-01-260000027673us-gaap:AccumulatedTranslationAdjustmentMember2023-10-302024-01-280000027673us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-10-302024-01-280000027673us-gaap:AssetPledgedAsCollateralWithRightMember2025-01-260000027673us-gaap:AssetPledgedAsCollateralWithRightMember2024-10-270000027673us-gaap:AssetPledgedAsCollateralWithRightMember2024-01-280000027673us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-10-282025-01-260000027673us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-10-302024-01-280000027673jdcc:FinanceLeaseObligationsMember2025-01-260000027673jdcc:FinanceLeaseObligationsMember2024-10-270000027673jdcc:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-01-260000027673jdcc:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-10-270000027673jdcc:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-280000027673us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-10-282025-01-260000027673us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-10-302024-01-280000027673us-gaap:InterestRateSwapMember2025-01-260000027673us-gaap:InterestRateSwapMember2024-10-270000027673us-gaap:InterestRateSwapMember2024-01-280000027673us-gaap:FinancialGuaranteeMemberjdcc:JohnDeereFinancialIncMemberus-gaap:CommercialPaperMember2025-01-260000027673us-gaap:SubsequentEventMember2024-10-282025-11-020000027673us-gaap:RetainedEarningsMember2024-10-282025-01-260000027673us-gaap:RetainedEarningsMember2023-10-302024-01-280000027673jdcc:O2025Q1DividendsMemberus-gaap:SubsequentEventMember2025-01-272025-02-240000027673us-gaap:FinancialGuaranteeMemberjdcc:JohnDeereFinancialIncMemberus-gaap:DerivativeMember2025-01-260000027673us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2024-10-282025-01-260000027673us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2024-10-282025-01-260000027673us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2023-10-302024-01-280000027673us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2023-10-302024-01-280000027673jdcc:UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberus-gaap:RelatedPartyMember2023-10-302024-01-280000027673us-gaap:InterestRateCapMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:ShortMember2025-01-260000027673us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-01-260000027673us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-01-260000027673jdcc:OtherPayablesToRelatedPartyMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-01-260000027673us-gaap:InterestRateCapMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:ShortMember2024-10-270000027673us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-10-270000027673jdcc:OtherPayablesToRelatedPartyMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-10-270000027673us-gaap:InterestRateCapMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:ShortMember2024-01-280000027673us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-280000027673jdcc:OtherPayablesToRelatedPartyMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-280000027673us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2024-01-280000027673us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-01-260000027673us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-01-260000027673us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-01-260000027673us-gaap:InterestRateCapMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:LongMember2025-01-260000027673jdcc:ReceivablesFromRelatedPartyMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-01-260000027673us-gaap:InterestRateSwapMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2025-01-260000027673us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2025-01-260000027673us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2025-01-260000027673us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-10-270000027673us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-10-270000027673us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-10-270000027673us-gaap:InterestRateCapMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:LongMember2024-10-270000027673us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-10-270000027673jdcc:ReceivablesFromRelatedPartyMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-10-270000027673us-gaap:InterestRateSwapMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2024-10-270000027673us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2024-10-270000027673us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2024-10-270000027673us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-280000027673us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-280000027673us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-280000027673us-gaap:InterestRateCapMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:LongMember2024-01-280000027673jdcc:ReceivablesFromRelatedPartyMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-280000027673us-gaap:InterestRateSwapMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2024-01-280000027673us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2024-01-280000027673jdcc:UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberus-gaap:RelatedPartyMember2025-01-260000027673jdcc:UnrelatedExternalCounterpartiesMember2025-01-260000027673jdcc:UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberus-gaap:RelatedPartyMember2024-10-270000027673jdcc:UnrelatedExternalCounterpartiesMember2024-10-270000027673jdcc:UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberus-gaap:RelatedPartyMember2024-01-280000027673jdcc:UnrelatedExternalCounterpartiesMember2024-01-280000027673us-gaap:FinancialGuaranteeMemberjdcc:JohnDeereFinancialIncMemberus-gaap:MediumTermNotesMember2025-01-260000027673jdcc:MediumTermNotesDueInNextTenYearsMember2025-01-260000027673jdcc:MediumTermNotesDueInNextTenYearsMember2024-10-270000027673jdcc:MediumTermNotesDueInNextTenYearsMember2024-01-280000027673us-gaap:RelatedPartyMember2024-10-282025-01-260000027673us-gaap:RelatedPartyMember2023-10-302024-01-280000027673us-gaap:AccountingStandardsUpdate202309Member2025-01-260000027673us-gaap:AccountingStandardsUpdate202307Member2025-01-260000027673us-gaap:AccountingStandardsUpdate202306Member2025-01-260000027673us-gaap:AccountingStandardsUpdate202305Member2025-01-260000027673jdcc:AccountingStandardsUpdate202501Member2025-01-260000027673jdcc:AccountingStandardsUpdate202404Member2025-01-260000027673jdcc:AccountingStandardsUpdate202403Member2025-01-260000027673us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-01-260000027673us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-10-270000027673us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-280000027673us-gaap:NonrelatedPartyMember2025-01-260000027673us-gaap:NonrelatedPartyMember2024-10-270000027673us-gaap:NonrelatedPartyMember2024-01-280000027673us-gaap:UnfundedLoanCommitmentMember2025-01-260000027673us-gaap:ConstructionSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2025-01-260000027673us-gaap:ConstructionSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-01-260000027673us-gaap:ConstructionSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-01-260000027673us-gaap:ConstructionSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-01-260000027673us-gaap:AgriculturalSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2025-01-260000027673us-gaap:AgriculturalSectorMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2025-01-260000027673us-gaap:AgriculturalSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-01-260000027673us-gaap:AgriculturalSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-01-260000027673us-gaap:AgriculturalSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-01-260000027673jdcc:RetailNotesPortfolioSegmentMemberus-gaap:AssetPledgedAsCollateralWithRightMember2025-01-260000027673jdcc:RetailNotesPortfolioSegmentMemberus-gaap:AssetNotPledgedAsCollateralMember2025-01-260000027673jdcc:FinancingLeasesPortfolioSegmentMember2025-01-260000027673us-gaap:ConstructionSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2024-10-270000027673us-gaap:ConstructionSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-10-270000027673us-gaap:ConstructionSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-10-270000027673us-gaap:ConstructionSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-10-270000027673us-gaap:AgriculturalSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2024-10-270000027673us-gaap:AgriculturalSectorMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2024-10-270000027673us-gaap:AgriculturalSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-10-270000027673us-gaap:AgriculturalSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-10-270000027673us-gaap:AgriculturalSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-10-270000027673jdcc:RetailNotesPortfolioSegmentMemberus-gaap:AssetPledgedAsCollateralWithRightMember2024-10-270000027673jdcc:RetailNotesPortfolioSegmentMemberus-gaap:AssetNotPledgedAsCollateralMember2024-10-270000027673jdcc:FinancingLeasesPortfolioSegmentMember2024-10-270000027673us-gaap:ConstructionSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2024-01-280000027673us-gaap:ConstructionSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-01-280000027673us-gaap:ConstructionSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-01-280000027673us-gaap:ConstructionSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-01-280000027673us-gaap:AgriculturalSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2024-01-280000027673us-gaap:AgriculturalSectorMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2024-01-280000027673us-gaap:AgriculturalSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-01-280000027673us-gaap:AgriculturalSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-01-280000027673us-gaap:AgriculturalSectorMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-01-280000027673jdcc:RetailNotesPortfolioSegmentMemberus-gaap:AssetPledgedAsCollateralWithRightMember2024-01-280000027673jdcc:RetailNotesPortfolioSegmentMemberus-gaap:AssetNotPledgedAsCollateralMember2024-01-280000027673jdcc:FinancingLeasesPortfolioSegmentMember2024-01-280000027673us-gaap:FairValueInputsLevel3Memberus-gaap:AssetPledgedAsCollateralWithRightMember2025-01-260000027673us-gaap:FairValueInputsLevel3Memberus-gaap:AssetNotPledgedAsCollateralMember2025-01-260000027673us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:AssetPledgedAsCollateralWithRightMember2025-01-260000027673us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:AssetNotPledgedAsCollateralMember2025-01-260000027673us-gaap:FairValueInputsLevel3Memberus-gaap:AssetPledgedAsCollateralWithRightMember2024-10-270000027673us-gaap:FairValueInputsLevel3Memberus-gaap:AssetNotPledgedAsCollateralMember2024-10-270000027673us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:AssetPledgedAsCollateralWithRightMember2024-10-270000027673us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:AssetNotPledgedAsCollateralMember2024-10-270000027673us-gaap:FairValueInputsLevel3Memberus-gaap:AssetPledgedAsCollateralWithRightMember2024-01-280000027673us-gaap:FairValueInputsLevel3Memberus-gaap:AssetNotPledgedAsCollateralMember2024-01-280000027673us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:AssetPledgedAsCollateralWithRightMember2024-01-280000027673us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:AssetNotPledgedAsCollateralMember2024-01-280000027673us-gaap:RelatedPartyMember2025-01-260000027673us-gaap:RelatedPartyMember2024-10-270000027673us-gaap:RelatedPartyMember2024-01-280000027673jdcc:UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberus-gaap:RelatedPartyMember2024-10-282025-01-260000027673us-gaap:FairValueInputsLevel2Member2025-01-260000027673us-gaap:CarryingReportedAmountFairValueDisclosureMember2025-01-260000027673us-gaap:FairValueInputsLevel2Member2024-10-270000027673us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-10-270000027673us-gaap:FairValueInputsLevel2Member2024-01-280000027673us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-01-280000027673jdcc:UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberus-gaap:DerivativeMemberus-gaap:RelatedPartyMember2025-01-260000027673jdcc:UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberus-gaap:DerivativeMemberus-gaap:RelatedPartyMember2024-10-270000027673jdcc:UltimateParentCompanyAndItsWhollyOwnedSubsidiariesMemberus-gaap:DerivativeMemberus-gaap:RelatedPartyMember2024-01-280000027673jdcc:LongTermDebtNoncurrentMemberus-gaap:InterestRateSwapMember2025-01-260000027673jdcc:DebtCurrentMemberus-gaap:InterestRateSwapMember2025-01-260000027673jdcc:LongTermDebtNoncurrentMemberus-gaap:InterestRateSwapMember2024-10-270000027673jdcc:DebtCurrentMemberus-gaap:InterestRateSwapMember2024-10-270000027673jdcc:LongTermDebtNoncurrentMemberus-gaap:InterestRateSwapMember2024-01-280000027673jdcc:DebtCurrentMemberus-gaap:InterestRateSwapMember2024-01-280000027673us-gaap:FinancialGuaranteeMemberjdcc:JohnDeereFinancialIncMemberus-gaap:MediumTermNotesMember2024-10-282025-01-260000027673us-gaap:UnfundedLoanCommitmentMember2024-10-282025-01-260000027673us-gaap:UnfundedLoanCommitmentMember2023-10-302024-01-280000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-10-270000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-10-270000027673us-gaap:ConstructionSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2025-01-260000027673us-gaap:ConstructionSectorMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2025-01-260000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-01-260000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-01-260000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-01-260000027673us-gaap:AgriculturalSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2025-01-260000027673us-gaap:AgriculturalSectorMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2025-01-260000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-01-260000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-01-260000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-01-260000027673us-gaap:ConsumerPortfolioSegmentMember2025-01-260000027673us-gaap:ConstructionSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-10-270000027673us-gaap:ConstructionSectorMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-10-270000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-10-270000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-10-270000027673us-gaap:AgriculturalSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-10-270000027673us-gaap:AgriculturalSectorMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-10-270000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-10-270000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-10-270000027673us-gaap:ConsumerPortfolioSegmentMember2024-10-270000027673us-gaap:ConstructionSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-01-280000027673us-gaap:ConstructionSectorMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-01-280000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-01-280000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-01-280000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-01-280000027673us-gaap:AgriculturalSectorMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-01-280000027673us-gaap:AgriculturalSectorMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-01-280000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-01-280000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-01-280000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-01-280000027673us-gaap:ConsumerPortfolioSegmentMember2024-01-280000027673us-gaap:ExtendedMaturityMember2024-10-282025-01-260000027673us-gaap:PaymentDeferralMember2024-10-282025-01-260000027673jdcc:PaymentDeferralAndExtendedMaturityMember2024-10-282025-01-260000027673us-gaap:PerformingFinancingReceivableMember2024-10-282025-01-260000027673us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-10-282025-01-260000027673us-gaap:FinancingReceivables60To89DaysPastDueMember2024-10-282025-01-260000027673us-gaap:FinancingReceivables30To59DaysPastDueMember2024-10-282025-01-260000027673us-gaap:PerformingFinancingReceivableMember2023-10-302024-01-280000027673us-gaap:FinancingReceivables30To59DaysPastDueMember2023-10-302024-01-280000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMember2024-10-282025-01-260000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMember2024-10-282025-01-260000027673us-gaap:ConsumerPortfolioSegmentMember2024-10-282025-01-260000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMember2023-10-302024-10-270000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMember2023-10-302024-10-270000027673us-gaap:ConsumerPortfolioSegmentMember2023-10-302024-10-270000027673us-gaap:ConstructionSectorMemberus-gaap:ConsumerPortfolioSegmentMember2023-10-302024-01-280000027673us-gaap:AgriculturalSectorMemberus-gaap:ConsumerPortfolioSegmentMember2023-10-302024-01-280000027673us-gaap:ConsumerPortfolioSegmentMember2023-10-302024-01-280000027673jdcc:RetailRevolvingChargeAccountsPortfolioSegmentMember2024-10-282025-01-260000027673jdcc:RetailRevolvingChargeAccountsPortfolioSegmentMember2023-10-302024-01-280000027673jdcc:RetailNotesAndFinanceLeasesPortfolioSegmentMember2023-10-302024-01-280000027673us-gaap:CommercialPortfolioSegmentMember2024-10-282025-01-260000027673jdcc:RetailNotesAndFinanceLeasesPortfolioSegmentMember2024-10-282025-01-260000027673us-gaap:CommercialPortfolioSegmentMember2023-10-302024-01-2800000276732023-10-302024-01-280000027673us-gaap:CommercialPortfolioSegmentMember2025-01-260000027673jdcc:RetailRevolvingChargeAccountsPortfolioSegmentMember2025-01-260000027673jdcc:RetailNotesAndFinanceLeasesPortfolioSegmentMember2025-01-260000027673us-gaap:CommercialPortfolioSegmentMember2024-10-270000027673jdcc:RetailRevolvingChargeAccountsPortfolioSegmentMember2024-10-270000027673jdcc:RetailNotesAndFinanceLeasesPortfolioSegmentMember2024-10-270000027673us-gaap:CommercialPortfolioSegmentMember2024-01-280000027673jdcc:RetailRevolvingChargeAccountsPortfolioSegmentMember2024-01-280000027673jdcc:RetailNotesAndFinanceLeasesPortfolioSegmentMember2024-01-280000027673us-gaap:CommercialPortfolioSegmentMember2023-10-290000027673jdcc:RetailRevolvingChargeAccountsPortfolioSegmentMember2023-10-290000027673jdcc:RetailNotesAndFinanceLeasesPortfolioSegmentMember2023-10-2900000276732023-10-290000027673us-gaap:NonperformingFinancingReceivableMember2024-10-282025-01-260000027673us-gaap:NonperformingFinancingReceivableMember2023-10-302024-01-280000027673jdcc:O2025Q1DividendsMembersrt:ParentCompanyMemberus-gaap:SubsequentEventMember2025-01-272025-02-2400000276732025-01-2600000276732024-10-2700000276732024-01-2800000276732025-02-2700000276732024-10-282025-01-26xbrli:sharesiso4217:USDxbrli:pure

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 26, 2025

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission File Number: 1-6458

JOHN DEERE CAPITAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)

36-2386361
(IRS Employer Identification No.)

P.O. Box 5328
Madison, Wisconsin 53705-0328
(Address of principal executive offices, zip code)

Registrant’s Telephone Number, including area code: (800) 438-7394

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on which registered

2.00% Senior Notes Due 2031

JDCC 31

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No

At February 27, 2025, 2,500 shares of common stock, without par value, of the registrant were outstanding, all of which were owned by John Deere Financial Services, Inc., a wholly-owned subsidiary of Deere & Company.

The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with certain reduced disclosures as permitted by those instructions.

PART I. FINANCIAL INFORMATION

Item 1.     FINANCIAL STATEMENTS

John Deere Capital Corporation and Subsidiaries

Statements of Consolidated Income

(Unaudited)

(in millions)

Three Months Ended 

January 26

January 28

    

2025

    

2024

Revenues

Finance income earned on retail notes

$

507.4

$

452.3

Lease revenues

 

285.8

 

264.8

Revolving charge account income

 

116.4

 

105.2

Finance income earned on wholesale receivables

 

241.0

 

271.1

Other income

 

47.8

 

67.1

Total revenues

 

1,198.4

 

1,160.5

Expenses

Interest expense

 

637.3

571.4

Operating expenses:

Depreciation of equipment on operating leases

 

178.5

167.2

Administrative and operating expenses

 

108.9

132.2

Fees and interest paid to John Deere

 

22.0

57.1

Provision for credit losses

60.4

 

21.0

Total operating expenses

 

369.8

 

377.5

Total expenses

 

1,007.1

 

948.9

Income of Consolidated Group before Income Taxes

 

191.3

 

211.6

Provision for income taxes

 

32.9

38.9

Income of Consolidated Group

 

158.4

 

172.7

Equity in income of unconsolidated affiliate

 

.9

1.3

Net Income

 

159.3

 

174.0

Less: Net income (loss) attributable to noncontrolling interests

.2

(.5)

Net Income Attributable to the Company

$

159.1

$

174.5

See Condensed Notes to Interim Consolidated Financial Statements.

2

John Deere Capital Corporation and Subsidiaries

Statements of Consolidated Comprehensive Income

(Unaudited)

(in millions)

Three Months Ended 

January 26

January 28

  

2025

  

2024

Net Income

$

159.3

$

174.0

Other Comprehensive Income (Loss), Net of Income Taxes

Cumulative translation adjustment

(36.7)

26.8

Unrealized loss on derivatives

(1.9)

(15.6)

Unrealized gain on debt securities

.3

.6

Other Comprehensive Income (Loss), Net of Income Taxes

 

(38.3)

 

11.8

Comprehensive Income of Consolidated Group

 

121.0

 

185.8

Less: Comprehensive income (loss) attributable to noncontrolling interests

.2

(.5)

Comprehensive Income Attributable to the Company

$

120.8

$

186.3

See Condensed Notes to Interim Consolidated Financial Statements.

3

John Deere Capital Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in millions)

January 26

October 27

January 28

2025

2024

2024

Assets

    

    

    

Cash and cash equivalents

$

1,715.7

$

1,621.9

$

1,520.1

Marketable securities

3.8

3.8

2.3

Receivables:

Retail notes

 

24,742.2

 

25,169.4

 

25,716.4

Retail notes securitized

 

8,304.8

 

8,768.4

 

6,417.7

Revolving charge accounts

 

3,220.2

 

4,538.8

 

2,925.5

Wholesale receivables

 

12,783.2

 

14,114.1

 

14,542.8

Financing leases

 

1,376.0

 

1,636.9

 

1,251.0

Total receivables

 

50,426.4

 

54,227.6

 

50,853.4

Allowance for credit losses

 

(242.0)

 

(227.5)

 

(139.6)

Total receivables – net

 

50,184.4

 

54,000.1

 

50,713.8

Other receivables

 

172.7

 

142.1

 

163.1

Receivables from John Deere

 

70.1

 

192.3

 

146.6

Equipment on operating leases – net

 

5,293.7

 

5,427.7

 

4,933.4

Notes receivable from John Deere

590.3

576.3

663.7

Investment in unconsolidated affiliate

 

48.0

 

49.0

 

29.6

Deferred income taxes

 

29.8

 

29.9

 

24.1

Other assets

 

433.8

 

471.5

 

387.6

Total Assets

$

58,542.3

$

62,514.6

$

58,584.3

Liabilities and Stockholder’s Equity

Short-term external borrowings:

Commercial paper and other notes payable

$

83.1

$

1,679.9

$

6,416.4

Securitization borrowings

 

8,012.6

 

8,429.3

 

6,116.1

Current maturities of long-term external borrowings

 

8,376.6

 

7,628.9

 

5,705.1

Total short-term external borrowings

 

16,472.3

 

17,738.1

 

18,237.6

Notes payable to John Deere

 

1,228.4

 

2,681.5

 

3,512.5

Other payables to John Deere

 

642.6

 

489.2

 

596.7

Accounts payable and accrued expenses

 

1,123.6

 

1,238.0

 

1,082.5

Deposits held from dealers and merchants

 

115.1

 

129.6

 

129.3

Deferred income taxes

 

510.7

 

285.6

 

431.9

Long-term external borrowings

 

32,236.4

 

33,725.4

 

28,720.4

Total liabilities

 

52,329.1

 

56,287.4

 

52,710.9

Commitments and contingencies (Note 9)

Stockholder’s equity:

Common stock, without par value (issued and outstanding –
2,500 shares owned by John Deere Financial Services, Inc.)

 

2,292.8

 

2,292.8

 

2,292.8

Retained earnings

 

4,103.7

 

4,079.6

 

3,672.7

Accumulated other comprehensive loss

 

(184.5)

 

(146.2)

 

(92.6)

Total Company stockholder’s equity

 

6,212.0

 

6,226.2

 

5,872.9

Noncontrolling interests

 

1.2

 

1.0

 

.5

Total stockholder’s equity

 

6,213.2

 

6,227.2

 

5,873.4

Total Liabilities and Stockholder’s Equity

$

58,542.3

$

62,514.6

$

58,584.3

See Condensed Notes to Interim Consolidated Financial Statements.

4

John Deere Capital Corporation and Subsidiaries

Statements of Consolidated Cash Flows

(Unaudited)

(in millions)

    

Three Months Ended 

January 26

January 28

   

2025

   

2024

Cash Flows from Operating Activities:

Net income

$

159.3

$

174.0

Adjustments to reconcile net income to net cash provided by operating activities:

Provision for credit losses

 

60.4

21.0

Provision for depreciation and amortization

 

184.1

173.0

Provision (credit) for deferred income taxes

 

225.5

(20.1)

Change in accounts payable and accrued expenses

 

(79.8)

(45.3)

Change in accrued income taxes payable/receivable

 

(35.0)

35.6

Other

 

116.7

71.4

Net cash provided by operating activities

 

631.2

 

409.6

Cash Flows from Investing Activities:

Cost of receivables acquired (excluding wholesale)

 

(5,492.7)

(5,863.0)

Collections of receivables (excluding wholesale)

 

7,774.0

7,447.7

Decrease (increase) in wholesale receivables – net

 

1,201.6

(1,100.8)

Cost of equipment on operating leases acquired

 

(355.2)

(361.4)

Proceeds from sales of equipment on operating leases

 

296.2

319.2

Cost of notes receivable acquired from John Deere

(18.4)

(8.3)

Collections of notes receivable from John Deere

12.6

4.4

Other

 

5.4

(8.4)

Net cash provided by investing activities

 

3,423.5

 

429.4

Cash Flows from Financing Activities:

Decrease in commercial paper and other notes payable – net (original maturities
of three months or less)

 

(1,589.7)

(1,688.2)

Decrease in securitization borrowings – net

 

(419.5)

(881.5)

Increase (decrease) in short-term borrowings with John Deere – net

 

(1,405.9)

311.2

Proceeds from external borrowings issued (original maturities greater than three months)

 

949.8

4,831.4

Payments of external borrowings (original maturities greater than three months)

 

(1,350.6)

(3,160.4)

Dividends paid

 

(135.0)

(215.0)

Debt issuance costs

 

(4.8)

(8.1)

Net cash used for financing activities

 

(3,955.7)

 

(810.6)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash

 

(7.1)

1.5

Net Increase in Cash, Cash Equivalents, and Restricted Cash

 

91.9

 

29.9

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period

 

1,787.0

 

1,612.9

Cash, Cash Equivalents, and Restricted Cash at End of Period

$

1,878.9

$

1,642.8

Components of Cash, Cash Equivalents, and Restricted Cash:

Cash and cash equivalents

$

1,715.7

$

1,520.1

Restricted cash*

163.2

122.7

Total Cash, Cash Equivalents, and Restricted Cash

$

1,878.9

$

1,642.8

* Restricted cash is reported in “Other assets” on the consolidated balance sheets and primarily relates to the securitization of receivables (see Note 5).

See Condensed Notes to Interim Consolidated Financial Statements.

5

John Deere Capital Corporation and Subsidiaries

Statements of Changes in Consolidated Stockholder’s Equity

For the Three Months Ended January 26, 2025 and January 28, 2024

(Unaudited)

(in millions)

Company Stockholder

Accumulated

Total

Other

Stockholder’s

Common

Retained

Comprehensive

Noncontrolling

Equity

Stock

Earnings

Income (Loss)

Interests

    

    

    

    

    

Balance October 29, 2023

$

5,902.6

$

2,292.8

$

3,713.2

$

(104.4)

$

1.0

Net income (loss)

 

174.0

 

174.5

(.5)

Other comprehensive income

 

11.8

11.8

Dividends declared

(215.0)

(215.0)

Balance January 28, 2024

$

5,873.4

$

2,292.8

$

3,672.7

$

(92.6)

$

.5

Balance October 27, 2024

$

6,227.2

$

2,292.8

$

4,079.6

$

(146.2)

$

1.0

Net income

 

159.3

 

159.1

.2

Other comprehensive loss

 

(38.3)

(38.3)

Dividends declared

 

(135.0)

(135.0)

Balance January 26, 2025

$

6,213.2

$

2,292.8

$

4,103.7

$

(184.5)

$

1.2

See Condensed Notes to Interim Consolidated Financial Statements.

6

Condensed Notes to Interim Consolidated Financial Statements (Unaudited)

(1) ORGANIZATION AND CONSOLIDATION

References to John Deere Capital Corporation (Capital Corporation), “the Company,” “we,” “us,” or “our” include our consolidated subsidiaries. John Deere Financial Services, Inc., a wholly-owned subsidiary of Deere & Company, owns all of the outstanding common stock of Capital Corporation. We provide and administer financing for retail purchases of new equipment manufactured by Deere & Company’s production and precision agriculture operations, small agriculture and turf operations, and construction and forestry operations and used equipment taken in trade for this equipment. References to “agriculture and turf” include both production and precision agriculture and small agriculture and turf. Deere & Company and its wholly-owned subsidiaries are collectively called “John Deere.”

We offer the following financing solutions:

Retail notes – we purchase retail installment sales and loan contracts from John Deere, which are generally acquired through independent John Deere retail dealers, and finance a limited amount of non-John Deere retail notes;
Revolving charge accounts – we finance and service revolving charge accounts, in most cases acquired from and offered through merchants and dealers in the agriculture and turf and construction and forestry markets;
Wholesale receivables – we provide wholesale financing to dealers of John Deere agriculture and turf equipment and construction and forestry equipment, primarily to finance inventories of equipment for those dealers; and
Financing and operating leases – we lease John Deere equipment and a limited amount of non-John Deere equipment to retail customers.

Retail notes, revolving charge accounts, and financing leases are collectively called “Customer Receivables.” Customer Receivables and wholesale receivables are collectively called “Receivables.” Receivables and equipment on operating leases are collectively called “Receivables and Leases.” We secure our Receivables, other than certain revolving charge accounts, by retaining as collateral security in the equipment associated with those Receivables or with the use of other collateral, and require theft and physical damage insurance on such equipment.

We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The first quarter ends for fiscal years 2025 and 2024 were January 26, 2025 and January 28, 2024, respectively. Both periods contained 13 weeks. Fiscal year 2025 will contain 53 weeks, with the additional week occurring in the fourth quarter. Unless otherwise stated, references to particular years, quarters, or months refer to our fiscal years generally ending in October and the associated periods in those fiscal years.

We are the primary beneficiary of and consolidate certain variable interest entities that are special purpose entities (SPEs) related to the securitization of receivables. See Note 5 for more information on these SPEs.

Presentation of Amounts

All amounts are presented in millions of dollars, unless otherwise specified. Certain prior period amounts have been reclassified to conform to current period presentation.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS

Quarterly Financial Statements

We have prepared our interim consolidated financial statements, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been included. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. It is suggested these interim consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto appearing in our latest Annual Report on Form 10-K. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year.

Use of Estimates in Financial Statements

Certain accounting policies require management to make estimates and assumptions in determining the amounts reflected in the financial statements and related disclosures. Actual results could differ from those estimates.

7

New Accounting Pronouncements Adopted

We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. We adopted the following standard in 2025, which did not have a material effect on our consolidated financial statements.  

2023-05 — Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

Accounting Pronouncements to be Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which expands disclosures about specific expense categories presented on the face of the income statement. In January 2025, the FASB issued ASU 2025-01, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40), which clarifies the effective date of ASU 2024-03. The ASU will be effective for us beginning with our annual reporting for fiscal year 2028 and interim periods thereafter. We are assessing the effect of ASU 2024-03 on our related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and cash taxes paid both in the U.S. and foreign jurisdictions. The ASU will be effective for us beginning with our annual reporting for fiscal year 2026. We are assessing the effect of this update on our related disclosures.

We will also adopt the following standards in future periods, none of which are expected to have a material effect on our consolidated financial statements.

2024-04 — Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments

2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative

(3) OTHER COMPREHENSIVE INCOME ITEMS

The after-tax components of accumulated other comprehensive income (loss) were as follows:

January 26

October 27

January 28

2025

2024

2024

Cumulative translation adjustment

$

(150.7)

$

(114.0)

$

(110.0)

Unrealized gain (loss) on derivatives

(33.2)

(31.3)

19.2

Unrealized loss on debt securities

(.6)

(.9)

(1.8)

Total accumulated other comprehensive income (loss)

$

(184.5)

$

(146.2)

$

(92.6)

8

The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss).

Before

Tax

After

Tax

(Expense)

Tax

Amount

Credit

Amount

Three Months Ended January 26, 2025

Cumulative translation adjustment

$

(36.7)

$

(36.7)

Unrealized gain (loss) on derivatives:

Unrealized hedging gain (loss)

 

6.8

$

(1.4)

5.4

Reclassification of realized (gain) loss to Interest expense

 

(9.2)

1.9

(7.3)

Net unrealized gain (loss) on derivatives

 

(2.4)

.5

 

(1.9)

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

.4

(.1)

.3

Total other comprehensive income (loss)

$

(38.7)

$

.4

$

(38.3)

Three Months Ended January 28, 2024

Cumulative translation adjustment

$

26.8

$

26.8

Unrealized gain (loss) on derivatives:

Unrealized hedging gain (loss)

 

(7.8)

$

1.6

 

(6.2)

Reclassification of realized (gain) loss to Interest expense

 

(11.9)

2.5

(9.4)

Net unrealized gain (loss) on derivatives

 

(19.7)

 

4.1

 

(15.6)

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

.8

(.2)

.6

Total other comprehensive income (loss)

$

7.9

$

3.9

$

11.8

(4) RECEIVABLES

Credit Quality

We monitor the credit quality of Receivables based on delinquency status, defined as follows:

Past due balances represent Receivables still accruing finance income with any payments 30 days or more past the contractual payment due date.
Non-performing Receivables represent Receivables for which we have stopped accruing finance income, which generally occurs when Customer Receivables are 90 days delinquent and when interest-bearing wholesale receivables become 60 days delinquent. Accrued finance income and lease revenue previously recognized on non-performing Receivables is reversed and subsequently recognized on a cash basis. Accrual of finance income and lease revenue is resumed when the receivable becomes contractually current and collections are reasonably assured.  

Accrued finance income and lease revenue reversed on non-performing Receivables, and finance income and lease revenue recognized from cash payments on non-performing Receivables were as follows:

Three Months Ended

January 26

January 28

2025

2024

Accrued finance income and lease revenue reversed

$

13.4

$

6.7

Finance income and lease revenue recognized on cash payments

11.2

5.9

Total Receivable balances represent principal plus accrued interest. Receivable balances are written off to the allowance for credit losses when, in the judgment of management, they are considered uncollectible. Write-offs generally occur when Customer Receivables are 120 days delinquent, and on a case-by-case basis when wholesale receivables are 60 days delinquent. In these situations, collateral is repossessed (for collateral-dependent Receivables) or the account is designated for litigation, and the estimated uncollectible amount is written off to the allowance for credit losses.

9

The credit quality and aging analysis of Customer Receivables by year of origination was as follows:

January 26, 2025

2025

2024

2023

2022

2021

Prior Years

Revolving Charge Accounts

Total

Customer Receivables:

 

 

 

 

 

 

 

 

Agriculture and turf

Current

$

2,152.3

$

11,464.4

$

6,777.2

$

4,157.4

$

2,226.8

$

832.9

$

2,948.5

$

30,559.5

30-59 days past due

7.5

101.9

81.8

45.3

23.6

10.8

125.7

396.6

60-89 days past due

.3

38.4

33.0

17.2

9.3

4.6

23.3

126.1

90+ days past due

2.2

.8

.3

3.4

.4

7.1

Non-performing

42.1

112.8

74.5

40.0

30.2

14.1

313.7

Construction and forestry

Current

803.9

2,392.2

1,381.0

742.0

292.8

59.3

99.6

5,770.8

30-59 days past due

6.5

65.1

37.5

24.4

10.2

2.3

5.3

151.3

60-89 days past due

26.8

17.1

9.5

4.0

1.3

2.5

61.2

90+ days past due

.8

.1

.2

.2

1.3

Non-performing

61.4

93.7

53.5

32.3

13.5

1.2

255.6

Total Customer Receivables

$

2,970.5

$

14,195.3

$

8,535.0

$

5,124.3

$

2,642.4

$

955.5

$

3,220.2

$

37,643.2

Write-offs for the three months ended January 26, 2025:

Agriculture and turf

$

4.5

$

8.4

$

4.8

$

1.6

$

2.2

$

10.0

$

31.5

Construction and forestry

7.8

7.5

3.9

1.3

.4

2.5

23.4

Total

$

12.3

$

15.9

$

8.7

$

2.9

$

2.6

$

12.5

$

54.9

October 27, 2024

2024

2023

2022

2021

2020

Prior Years

Revolving Charge Accounts

Total

Customer Receivables:

 

 

 

 

 

 

 

 

Agriculture and turf

Current

$

12,957.7

$

7,528.9

$

4,715.5

$

2,633.1

$

915.6

$

232.8

$

4,351.5

$

33,335.1

30-59 days past due

 

39.5

93.3

49.2

25.2

10.6

3.6

39.2

260.6

60-89 days past due

 

18.4

43.7

16.7

8.8

7.0

1.9

12.3

108.8

90+ days past due

.4

.9

.3

2.2

.2

4.0

Non-performing

22.2

84.9

69.9

40.4

18.4

11.7

13.9

261.4

Construction and forestry

Current

2,636.0

1,564.0

893.1

380.1

83.2

41.9

114.2

5,712.5

30-59 days past due

49.4

41.3

23.2

9.8

2.5

1.5

4.0

131.7

60-89 days past due

20.0

23.5

8.2

5.8

1.5

.3

1.8

61.1

90+ days past due

.4

.5

.1

.2

.2

1.4

Non-performing

38.2

89.4

64.5

30.6

8.5

3.8

1.9

236.9

Total Customer Receivables

$

15,782.2

$

9,470.4

$

5,840.7

$

3,136.2

$

1,047.7

$

297.5

$

4,538.8

$

40,113.5

Write-offs for the twelve months ended October 27, 2024:

Agriculture and turf

$

4.0

$

29.2

$

23.5

$

10.3

$

9.9

$

3.1

$

86.0

$

166.0

Construction and forestry

8.2

33.4

23.4

10.3

4.7

2.5

7.8

90.3

Total

$

12.2

$

62.6

$

46.9

$

20.6

$

14.6

$

5.6

$

93.8

$

256.3

10

January 28, 2024

2024

2023

2022

2021

2020

Prior Years

Revolving Charge Accounts

Total

Customer Receivables:

 

 

 

 

 

 

 

 

Agriculture and turf

Current

$

2,740.5

$

11,557.0

$

6,550.6

$

3,954.2

$

1,692.4

$

667.3

$

2,719.3

$

29,881.3

30-59 days past due

4.5

105.0

58.5

40.8

18.8

10.0

69.7

307.3

60-89 days past due

.5

45.9

19.3

12.7

6.1

4.3

15.8

104.6

90+ days past due

1.1

.5

3.0

4.4

.3

9.3

Non-performing

.3

39.1

78.6

48.7

26.9

24.8

10.4

228.8

Construction and forestry

Current

677.8

2,156.0

1,400.8

716.3

216.8

94.0

101.2

5,362.9

30-59 days past due

7.2

64.9

35.5

24.1

7.8

3.3

5.3

148.1

60-89 days past due

.4

24.2

19.2

11.7

5.7

2.8

2.2

66.2

90+ days past due

.2

.2

.4

Non-performing

55.3

74.8

44.6

17.9

7.5

1.6

201.7

Total Customer Receivables

$

3,431.2

$

14,048.5

$

8,238.0

$

4,856.1

$

1,996.8

$

814.5

$

2,925.5

$

36,310.6

Write-offs for the three months ended January 28, 2024:

Agriculture and turf

$

1.5

$

2.9

$

1.8

$

3.6

$

.6

$

8.8

$

19.2

Construction and forestry

$

.2

5.5

4.5

2.2

.8

.7

1.9

15.8

Total

$

.2

$

7.0

$

7.4

$

4.0

$

4.4

$

1.3

$

10.7

$

35.0

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

January 26

October 27

January 28

2025

2024

2024

Wholesale receivables:

Agriculture and turf

Current

$

9,791.4

$

10,439.1

$

10,924.9

30-59 days past due

6.4

4.5

9.8

60-89 days past due

7.9

4.2

17.4

90+ days past due

9.3

10.2

34.7

Non-performing

29.0

35.3

5.8

Construction and forestry

Current

2,917.3

3,599.9

3,533.5

30-59 days past due

4.1

8.1

4.5

60-89 days past due

4.1

5.1

2.2

90+ days past due

13.7

7.7

10.0

Total wholesale receivables

$

12,783.2

$

14,114.1

$

14,542.8

Allowance for Credit Losses

The allowance for credit losses is an estimate of the credit losses expected over the life of our Receivable portfolio. Non-performing Receivables are included in the estimate of expected credit losses. The allowance is measured on a collective basis for receivables with similar risk characteristics. Receivables that do not share risk characteristics are evaluated on an individual basis. Risk characteristics include:

product category
market
geography
credit risk
remaining balance

11

Recoveries from freestanding credit enhancements, such as dealer deposits and certain credit insurance and bank guarantee contracts, are not included in the estimate of expected credit losses. Recoveries from dealer deposits are recognized in “Other income” when the dealer’s deposit account is charged, while recoveries from other freestanding credit enhancements are generally recognized when the associated credit loss is recorded.

An analysis of the allowance for credit losses and investment in Receivables was as follows:

Three Months Ended January 26, 2025

Retail Notes

Revolving

& Financing

Charge

Wholesale

Total

Leases

Accounts

Receivables

Receivables

Allowance for credit losses:

Beginning of period balance

$

192.4

$

7.6

$

27.5

$

227.5

Provision (credit) for credit losses*

 

62.3

1.9

(3.6)

60.6

Write-offs

 

(42.4)

(12.5)

(.2)

(55.1)

Recoveries

 

2.2

8.7

10.9

Translation adjustments

 

(.3)

(1.6)

(1.9)

End of period balance

$

214.2

$

5.7

$

22.1

$

242.0

Receivables:

End of period balance

$

34,423.0

$

3,220.2

$

12,783.2

$

50,426.4

Three Months Ended January 28, 2024

Retail Notes

Revolving

& Financing

Charge

Wholesale

Total

Leases

Accounts

Receivables

Receivables

Allowance for credit losses:

Beginning of period balance

$

114.9

$

20.4

$

11.1

$

146.4

Provision (credit) for credit losses*

 

22.8

(2.0)

(.4)

20.4

Write-offs

 

(24.3)

(10.7)

(35.0)

Recoveries

 

1.7

7.6

9.3

Translation adjustments

 

(1.5)

(1.5)

End of period balance

$

115.1

$

15.3

$

9.2

$

139.6

Receivables:

End of period balance

$

33,385.1

$

2,925.5

$

14,542.8

$

50,853.4

* Excludes provision (credit) for credit losses on unfunded commitments of $(.2) and $.6 for the three months ended January 26, 2025 and January 28, 2024, respectively. The estimated credit losses related to unfunded commitments are recorded in “Accounts payable and accrued expenses.”

The allowance for credit losses increased in the first three months of 2025, primarily due to higher expected losses on retail notes and financing leases as a result of elevated delinquencies and market conditions. We monitor the economy as part of the allowance setting process, including potential impacts of the agricultural cycle and interest rates, among other factors, and qualitative adjustments to the allowance are incorporated as necessary.

Recoveries from freestanding credit enhancements recorded in “Other income” were $7.9 and $7.3 for the first three months of 2025 and 2024, respectively.

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. Modifications offered include payment deferrals, term extensions, or a combination thereof. Finance charges continue to accrue during the deferral or extension period with the exception of 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.

12

The ending amortized cost of Receivables modified with borrowers experiencing financial difficulty during the first quarter ended January 26, 2025 and January 28, 2024 were $24.1 and $9.3, respectively. These modifications represented .05% and .02% of our Receivable portfolio for the same periods, respectively.

The financial effects of payment deferrals with borrowers experiencing financial difficulty resulted in a weighted average payment deferral of 7 months, while term extensions added a weighted average of 12 months to the terms of the modified contracts. Additionally, modifications with a combination of both payment deferrals and term extensions resulted in a weighted average payment deferral of 5 months and a weighted average term extension of 7 months.

We continue to monitor the performance of Receivables that are modified with borrowers experiencing financial difficulty. The ending amortized cost and performance of Receivables modified during the prior twelve months ended January 26, 2025 and January 28, 2024 were as follows:

January 26

January 28

2025

2024*

Current

$

63.9

$

8.6

30-59 days past due

6.6

.1

60-89 days past due

4.0

90+ days past due

3.0

Non-performing

13.1

.6

Total

$

90.6

$

9.3

*  In accordance with the adoption date of the accounting modification guidance, this period includes Receivables modified during the prior three months.

Defaults and subsequent write-offs of Receivables modified in the prior twelve months were not significant during the three months ended January 26, 2025 and January 28, 2024. In addition, at January 26, 2025, commitments to provide additional financing to these customers were not significant.

(5) SECURITIZATION OF RECEIVABLES

Our funding strategy includes retail note securitizations. While these securitization programs are administered in various forms, they are accomplished in the following basic steps:

1.  We transfer retail notes into a bankruptcy-remote SPE.

2.  The SPE issues debt to investors. The debt is secured by the retail notes.

3.  Investors are paid back based on cash receipts from the retail notes.

As part of step 1, these retail notes are legally isolated from the claims of our general creditors. This ensures cash receipts from the retail notes are accessible to pay back securitization program investors. The structure of these transactions does not meet the accounting criteria for a sale of receivables. As a result, they are accounted for as secured borrowings. The receivables and borrowings remain on our balance sheet and are separately reported as “Retail notes securitized” and “Securitization borrowings,” respectively.

The components of the securitization programs were as follows:

January 26

October 27

January 28

2025

2024

2024

Retail notes securitized

$

8,304.8

$

8,768.4

$

6,417.7

Allowance for credit losses

 

(49.6)

 

(47.0)

 

(17.8)

Other assets*

 

182.4

 

186.5

 

139.9

Total restricted securitized assets

$

8,437.6

$

8,907.9

$

6,539.8

Securitization borrowings

$

8,012.6

$

8,429.3

$

6,116.1

Accrued interest on borrowings

 

11.5

 

13.9

 

10.0

Total liabilities related to restricted securitized assets

$

8,024.1

$

8,443.2

$

6,126.1

* Primarily restricted cash of $163.0, $164.8, and $122.4 at January 26, 2025, October 27, 2024, and January 28, 2024, respectively.

13

(6) LEASES

We lease John Deere equipment and a limited amount of non-John Deere equipment to retail customers through sales-type, direct financing, and operating leases. Sales-type and direct financing leases are reported in “Financing leases” and operating leases are reported in “Equipment on operating leases – net.”

Lease revenues earned by us were as follows:

Three Months Ended

January 26

January 28

2025

2024

Sales-type and direct financing lease revenues

$

28.2

$

27.0

Operating lease revenues

254.1

234.2

Variable lease revenues

 

4.1

 

4.0

Total lease revenues

$

286.4

$

265.2

Variable lease revenues reported above primarily relate to separately invoiced property taxes on leased equipment in certain markets, late fees, and excess use and damage fees. Excess use and damage fees are reported in “Other income” and were $.6 and $.4 for the first quarter of 2025 and 2024, respectively.

The cost of equipment on operating leases by market was as follows:

January 26

October 27

January 28

2025

2024

2024

Agriculture and turf

$

5,693.4

$

5,765.0

$

5,198.3

Construction and forestry

931.5

 

963.7

1,005.7

Total

6,624.9

6,728.7

6,204.0

Accumulated depreciation

 

(1,331.2)

(1,301.0)

(1,270.6)

Equipment on operating leases – net

$

5,293.7

$

5,427.7

$

4,933.4

Total operating lease residual values at January 26, 2025, October 27, 2024, and January 28, 2024 were $3,734.7, $3,786.2, and $3,483.7, respectively. John Deere dealers generally provide a first-loss residual value guarantee on operating lease originations. Total residual value guarantees were $697.5, $698.7, and $580.4 at January 26, 2025, October 27, 2024, and January 28, 2024, respectively.

We discuss options to purchase the equipment or extend the lease prior to operating lease maturity with lessees and dealers. We remarket equipment returned to us upon termination of leases. The matured operating lease inventory balances at January 26, 2025, October 27, 2024, and January 28, 2024 were $33.3, $26.6, and $19.7, respectively. Matured operating lease inventory is reported in “Other assets.”

(7) NOTES RECEIVABLE FROM AND PAYABLE TO JOHN DEERE

We provide loans to Banco John Deere S.A. (BJD), a John Deere finance subsidiary in Brazil, which are reported in “Notes receivable from John Deere.” In 2024, John Deere entered into a joint venture agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become 50% owner of BJD. The transaction closed in February 2025. We plan to provide funding to the joint venture and will report the loans as receivables from related parties in future quarters.

Balances due from BJD were as follows:

January 26

October 27

January 28

2025

2024

2024

Notes receivable from John Deere

$

590.3

$

576.3

$

663.7

The loan agreements mature over the next seven years and charge interest at competitive market rates. Interest earned from John Deere is recorded in “Other income” and was $10.1 for the first three months of 2025, compared with $11.5 for the same period last year.

14

We also obtain funding from affiliated companies which resulted in notes payable to John Deere as follows:

January 26

October 27

January 28

2025

2024

2024

Notes payable to John Deere

$

1,228.4

$

2,681.5

$

3,512.5

The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. There were no intercompany borrowings that were long-term loans without a due on demand call option at January 26, 2025 and October 27, 2024, compared with $542.3 at January 28, 2024. We pay interest to John Deere for these borrowings based on competitive market rates. Interest expense paid to John Deere was $9.9 and $43.8 for the three months ended January 26, 2025 and January 28, 2024, respectively, which is recorded in “Fees and interest paid to John Deere.” The decrease was primarily attributable to lower average intercompany borrowings in the first three months of 2025 compared to the same period in 2024.

(8) LONG-TERM EXTERNAL BORROWINGS

Long-term external borrowings consisted of the following:

January 26

October 27

January 28

2025

2024

2024

Senior Debt:

Medium-term notes

$

32,339.9

$

33,835.8

$

28,805.4

Finance lease obligations

.1

.1

Total senior debt

32,340.0

33,835.9

28,805.4

Unamortized debt discount and debt issuance costs

(103.6)

(110.5)

(85.0)

Total

$

32,236.4

$

33,725.4

$

28,720.4

Medium-term notes due through 2034 are primarily offered by prospectus and issued at fixed and variable rates. The principal balances of the medium-term notes were $33,128.1, $34,398.2, and $29,581.7 at January 26, 2025, October 27, 2024, and January 28, 2024, respectively. All outstanding medium-term notes are senior unsecured borrowings and generally rank equally with each other. The medium-term notes in the table above include unamortized fair value adjustments related to interest rate swaps.

(9) COMMITMENTS AND CONTINGENCIES

We provide guarantees related to certain financial instruments issued by John Deere Financial Inc., a John Deere finance subsidiary in Canada. At January 26, 2025, the following notional amounts were guaranteed by us:

Medium-term notes: $2,850.4
Commercial paper: $2,707.3
Derivatives: $5,423.9, with a fair value liability of $78.2

The weighted-average interest rate on the medium-term notes at January 26, 2025 was 3.8% with a maximum remaining maturity of five years.

We have commitments to extend credit to customers and John Deere dealers through lines of credit and other pre-approved credit arrangements. We apply the same credit policies and approval process for these commitments to extend credit as we do for our Receivables and Leases, and generally have the right to unconditionally cancel, alter, or amend the terms at any time. Collateral is not required for these commitments, but if credit is extended, collateral may be required upon funding. A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts likely do not represent a future cash requirement. The unused commitments at January 26, 2025 were as follows:

John Deere dealers: $12,424.6
Customers: $34,136.8, primarily related to revolving charge accounts

We have a reserve for credit losses of $4.2 on unfunded commitments that are not unconditionally cancellable at January 26, 2025, which is recorded in “Accounts payable and accrued expenses.”

At January 26, 2025, we had restricted other assets associated with borrowings related to securitizations (see Note 5). Excluding the securitization programs, the remaining balance of restricted other assets was not material as of January 26, 2025.

15

We are subject to various unresolved legal actions, the most prevalent of which relate to retail credit matters. Currently, we believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on our consolidated financial statements.

(10) FAIR VALUE MEASUREMENTS

The fair values of financial instruments that do not approximate the carrying values were as follows:

January 26, 2025

October 27, 2024

January 28, 2024

Carrying

Fair

Carrying

Fair

Carrying

Fair

Value

Value

Value

Value

Value

Value

Receivables financed – net

$

41,929.2

$

41,818.8

$

45,278.7

$

45,291.5

$

44,313.9

$

43,978.1

Retail notes securitized – net

 

8,255.2

 

8,172.3

 

8,721.4

 

8,651.8

 

6,399.9

 

6,224.9

Securitization borrowings

 

8,012.6

8,033.7

 

8,429.3

 

8,451.1

 

6,116.1

6,103.8

Current maturities of long-term
external borrowings

 

8,376.6

8,331.1

 

7,628.9

 

7,600.4

 

5,705.1

5,610.7

Long-term external borrowings

 

32,236.4

 

32,505.5

 

33,725.4

 

33,904.9

 

28,720.4

 

28,775.5

Fair value measurements above were Level 3 for all Receivables and Level 2 for all borrowings.

Fair values of Receivables that were issued long-term were based on the discounted values of their related cash flows at interest rates currently being offered by us for similar Receivables. The fair values of the remaining Receivables approximated the carrying amounts.

Fair values of long-term external borrowings and securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates. Certain long-term external borrowings have been swapped to current variable interest rates. The carrying values of these long-term external borrowings include adjustments related to fair value hedges.

Assets and liabilities measured at fair value on a recurring basis were as follows:

    

January 26

    

October 27

    

January 28

2025

2024

2024

Marketable securities

    

    

    

International debt securities

$

3.8

$

3.8

$

2.3

Receivables from John Deere

Derivatives

70.1

192.3

146.6

Other assets

Derivatives

1.4

 

27.7

 

22.2

Total assets

$

75.3

$

223.8

$

171.1

Other payables to John Deere

Derivatives

$

642.6

$

489.2

$

596.7

Accounts payable and accrued expenses

Derivatives

17.6

 

.8

 

4.3

Total liabilities

$

660.2

$

490.0

$

601.0

All fair value measurements in the table above were Level 2. Excluded from the table above were our cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of time deposits and money market funds.

The international debt securities mature over the next six years. At January 26, 2025, the amortized cost basis and fair value of these available-for-sale debt securities were $4.6 and $3.8, respectively.

There were no assets or liabilities measured at fair value on a nonrecurring basis during each of the periods ended January 26, 2025, October 27, 2024, and January 28, 2024.

The following is a description of the valuation methodologies we use to measure certain balance sheet items at fair value:

Marketable securities – The international debt securities are valued using quoted prices for identical assets in inactive markets.

16

Derivatives – Our derivative financial instruments consist of interest rate contracts (swaps and caps), foreign currency exchange contracts (forwards and swaps), and cross-currency interest rate contracts (swaps). The portfolio is valued based on an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates for currencies.

(11) DERIVATIVE INSTRUMENTS

Our outstanding derivative transactions are with both unrelated external counterparties and John Deere. For derivative transactions with John Deere, we utilize a centralized hedging structure in which John Deere enters into a derivative transaction with an unrelated external counterparty and simultaneously enters into a derivative transaction with us. Except for collateral provisions, the terms of the transaction between John Deere and us are identical to the terms of the transaction between John Deere and its unrelated external counterparty. Derivative asset and liability positions for transactions with John Deere are recorded in “Receivables from John Deere” and “Other payables to John Deere,” respectively. Derivative asset and liability positions for transactions with unrelated external counterparty banks are recorded in “Other assets” and “Accounts payable and accrued expenses,” respectively.

The fair values of our derivative instruments and the associated notional amounts were as follows:

January 26, 2025

October 27, 2024

January 28, 2024

Fair Value

Fair Value

Fair Value

Notional

Asset

Liability

Notional

Asset

Liability

Notional

Asset

Liability

Cash flow hedges:

Interest rate contracts - swaps

$

3,275.0

$

1.4

$

31.1

$

2,875.0

$

2.9

$

20.0

$

2,200.0

$

27.4

$

4.4

Fair value hedges:

Interest rate contracts - swaps

14,734.5

21.3

585.3

15,033.9

107.8

445.2

11,779.6

52.1

547.3

Cross-currency interest rate contracts

974.5

2.1

974.5

30.4

Not designated as hedging instruments:

Interest rate contracts - swaps

6,655.1

20.8

11.7

5,907.0

25.9

15.0

7,784.7

53.8

18.3

Foreign currency exchange contracts

1,494.0

1.4

17.6

1,707.8

27.7

.8

1,814.8

22.2

4.3

Cross-currency interest rate contracts

164.0

14.5

.3

157.8

16.5

.2

188.6

13.4

Interest rate caps - sold

1,916.2

12.1

1,469.1

8.8

1,199.5

13.3

Interest rate caps - purchased

1,916.2

12.1

1,469.1

8.8

1,199.5

13.3

The amount of loss recorded in other comprehensive income (OCI) related to cash flow hedges at January 26, 2025 that is expected to be reclassified to interest expense in the next twelve months if interest rates remain unchanged is $15.8 after-tax. No gains or losses were reclassified from OCI to earnings based on the probability that the original forecasted transaction would not occur.

The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. Fair value hedging adjustments are included in the carrying amount of the hedged item.

Active Hedging Relationships

Discontinued Hedging Relationships

Cumulative

Carrying

Cumulative

Carrying

Fair Value

Amount of

Fair Value

Amount of

Hedging

Formerly

Hedging

January 26, 2025

Hedged Item

Adjustment

Hedged Item

Adjustment

Current maturities of long-term external borrowings

$

2,109.7

$

(14.3)

Long-term external borrowings

$

15,002.0

$

(608.8)

8,922.6

(179.4)

October 27, 2024

Current maturities of long-term external borrowings

$

1,781.8

$

7.3

Long-term external borrowings

$

15,596.8

$

(335.1)

8,625.8

(227.3)

January 28, 2024

Current maturities of long-term external borrowings

$

1,959.5

$

10.4

Long-term external borrowings

$

11,220.3

$

(506.6)

7,710.9

(269.7)

17

The classification and gains (losses), including accrued interest expense, related to derivative instruments on the statements of consolidated income consisted of the following:

Three Months Ended

January 26

January 28

   

2025

   

2024

Fair Value Hedges

Interest rate contracts – Interest expense *

 

$

(345.1)

$

335.7

Cash Flow Hedges

Recognized in OCI:

Interest rate contracts – OCI (pretax)

 

6.8

$

(7.8)

Reclassified from OCI:

Interest rate contracts Interest expense

 

 

9.2

 

11.9

Not Designated as Hedges

Interest rate contracts – Interest expense *

 

$

(3.8)

$

(5.7)

Foreign currency exchange contracts – Administrative and operating expenses *

 

109.4

(103.2)

Total not designated

$

105.6

$

(108.9)

* Includes interest and foreign currency exchange gains (losses) from cross-currency interest rate contracts.

Included in the table above are interest expense and administrative and operating expense amounts we incurred on derivatives transacted with John Deere. The amounts we recognized on these affiliated party transactions for the three months ended January 26, 2025 and January 28, 2024 were gains (losses) of $(337.3) and $331.4, respectively.

None of our derivative agreements contain credit-risk-related contingent features. We have a loss sharing agreement with John Deere in which we have agreed to absorb any losses and expenses John Deere incurs if an unrelated external counterparty fails to meet its obligations on a derivative transaction that John Deere entered into to manage our exposures. The loss sharing agreement did not increase the maximum amount of loss that we would incur, after considering collateral received and netting arrangements, as of January 26, 2025, October 27, 2024, and January 28, 2024.

18

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities for external derivatives and those with John Deere related to netting arrangements and any collateral received or paid were as follows:

January 26, 2025

Gross Amounts
Recognized

Netting
Arrangements

Collateral

Net
Amount

Derivatives:

Assets

    

    

    

    

    

    

External

$

1.4

$

1.4

John Deere

 

70.1

$

(25.5)

 

44.6

Liabilities

External

 

17.6

 

 

17.6

John Deere

 

642.6

 

(25.5)

 

 

617.1

October 27, 2024

Gross Amounts
Recognized

Netting
Arrangements

Collateral

Net
Amount

Derivatives:

Assets

    

    

    

    

    

    

External

$

27.7

$

(.1)

  

$

27.6

John Deere

 

192.3

 

(151.2)

 

41.1

Liabilities

External

 

.8

 

(.1)

 

.7

John Deere

 

489.2

 

(151.2)

 

338.0

January 28, 2024

Gross Amounts
Recognized

Netting
Arrangements

Collateral

Net
Amount

Derivatives:

Assets

    

    

    

    

    

    

External

$

22.2

$

(3.0)

$

19.2

John Deere

 

146.6

(101.6)

 

45.0

Liabilities

External

 

4.3

 

(3.0)

 

1.3

John Deere

 

596.7

 

(101.6)

 

 

495.1

(12)SUBSEQUENT EVENT

On February 24, 2025, Capital Corporation declared a $630 dividend to be paid to JDFS on March 12, 2025. JDFS, in turn, declared a $630 dividend to Deere & Company, also payable on March 12, 2025.

19

Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

All amounts are presented in millions of dollars unless otherwise specified.

OVERVIEW

Organization

We provide financial solutions that enable John Deere customers and dealers to advance their lives and livelihoods. Through our offering of retail notes, leases, and revolving charge accounts, customers are able to finance new and used John Deere equipment, as well as parts, services, and other input costs needed to run their operations. We also provide wholesale financing to John Deere dealers.

TRENDS AND ECONOMIC CONDITIONS

Our volume of Receivables and Leases is largely dependent upon the level of retail sales and leases of John Deere products. The level of John Deere retail sales and leases is responsive to a variety of economic, financial, climatic, legislative, regulatory, and other factors that influence supply and demand for its products.

Industry Sales Outlook for Fiscal Year 2025

Agriculture and Turf

Graphic

Construction and Forestry

Graphic

John Deere Trends

Customers seek to improve profitability, productivity, and sustainability through integrating technology into their operations. Deeper integration of technology into equipment is a persistent market trend. The technologies that are the focus of John Deere’s operating model are incorporated into products within each of John Deere’s operating segments. John Deere expects this trend to persist for the foreseeable future. John Deere’s Smart Industrial Operating Model and Leap Ambitions are intended to capitalize on this market trend.

John Deere Outlook for 2025

Sales volumes are expected to decline in 2025 compared to 2024 due to reduced demand. We are uncertain of the impact potential import tariffs by the U.S. and retaliatory actions taken by other countries could have on John Deere’s outlook due to the rapidly evolving environment.

Agriculture and Turf Outlook for 2025

Demand in the U.S. and Canada is expected to decline due to market uncertainty, high interest rates, and elevated used inventory levels, partially offset by the impact of U.S government subsidies on farm incomes.
John Deere expects small agricultural equipment sales to be down from 2024 levels in the U.S. and Canada. Strong profitability is anticipated to continue in the dairy and livestock segment as dairy and livestock prices remain elevated; however, this is projected to be more than offset by restrained demand in the turf and compact utility tractor markets amid high interest rates.
In Europe, the industry is forecasted to be down as farm fundamentals in the region have stabilized at reduced levels as commodity prices have steadied and stronger dairy margins are expected to partially offset continued market uncertainty. Better wheat prices and lower input costs are expected to support increased farm incomes.

20

Argentina industry sales are forecasted to improve amidst currency stabilization and export tax reductions despite some recent dry weather conditions.

Construction and Forestry Outlook for 2025

Construction equipment industry sales are forecasted to be down in the U.S. and Canada from 2024 levels. The decline is due to further slowdowns in multi-family housing developments and the commercial real estate market and low levels of earthmoving rental purchases, partially offset by high levels of U.S. government infrastructure spending and projected growth in single family housing starts. High interest rates are also expected to further pressure equipment sales as market uncertainty persists.
Global forestry markets are expected to be flat to down as global markets remain challenged.
Global roadbuilding markets are forecasted to be generally flat with strong market demand.

Company Trends

Our net income for fiscal year 2025 is expected to be higher than fiscal year 2024 primarily due to a lower provision for credit losses, partially offset by less favorable financing spreads.

Agricultural Market Business Cycle. The agricultural market is affected by various factors including commodity prices, acreage planted, crop yields, government policies, and uncertainty in macroeconomic trends. These factors affect farmers’ income and sentiment which may result in lower demand for John Deere’s equipment. In the first quarter of 2025, we increased our allowance for credit losses and expect to continue experiencing elevated write-offs due to unfavorable market conditions.

Interest Rates. While interest rates in the U.S. began to decrease in the fourth quarter of 2024, they remain elevated. Higher rates impact us in several ways, primarily affecting the demand for John Deere’s products and our financing spreads.

Changes in the agricultural market business cycle and interest rates are driven by factors outside of our control, and as a result we cannot reasonably foresee when these conditions will fully subside.

Other Items of Concern and Uncertainties

Other items that could impact our results are:

global and regional political conditions, including the ongoing war between Russia and Ukraine and the conflicts in the Middle East
shifts in energy, economic, tax, trade policies, and positions on government subsidies of farming
new or retaliatory tariffs
capital market disruptions
foreign currency and capital control policies
right to repair regulations and legislation
weather conditions
marketplace adoption and monetization of technologies we have invested in
John Deere’s and our ability to strengthen our digital capabilities, automation, autonomy, and alternative power technologies
changes in demand and pricing for new and used equipment
delays or disruptions in John Deere’s supply chain
significant fluctuations in foreign currency exchange rates
volatility in the prices of many commodities
slower economic growth

21

2025 COMPARED WITH 2024

The total revenues and net income attributable to the Company were as follows:

Three Months Ended

January 26

January 28

%

   

2025

   

2024

Change

Total revenues

   

$

1,198.4

   

$

1,160.5

   

3

Net income attributable to the Company

159.1

174.5

(9)

Total revenues increased slightly for the first quarter of 2025 primarily due to a 3% increase in average portfolio balances and higher average finance rates. Net income for the quarter was lower than the same period in 2024 primarily due to a higher provision for credit losses, partially offset by lower administrative and operating expenses.

Graphic

Revenues

Finance income, lease revenues, and other income earned by us were as follows:

Three Months Ended

January 26

January 28

%

 

2025

2024

Change

Finance income earned on:

   

   

   

Retail notes

$

507.4

$

452.3

12

Revolving charge accounts

116.4

105.2

11

Wholesale receivables

241.0

271.1

(11)

Lease revenues

285.8

264.8

8

Other income

47.8

67.1

(29)

Increased revenues for the first three months of 2025 compared to 2024 were driven by higher average finance rates for retail notes and revolving charge accounts, as well as higher average portfolio balances of Customer Receivables and equipment on operating leases. However, finance income earned on wholesale receivables decreased due to lower average finance rates and lower average portfolio balances.

Other income decreased in the first quarter of 2025 compared to 2024 due to an international support payment received from John Deere in 2024 as a result of foreign exchange losses in Argentina due to currency devaluation, as well as lower gains on operating lease dispositions.

Revenues earned from John Deere totaled $228.9 for the first quarter of 2025, compared with $278.4 for the same period last year. The decrease was primarily due to decreased compensation paid by John Deere on wholesale receivables driven by lower average finance rates, in addition to lower average portfolio balances. Revenues earned from John Deere are included in each of the revenue amounts discussed above.

22

Expenses

Expenses incurred by us were as follows:

Three Months Ended

January 26

January 28

%

2025

2024

Change

Interest expense

   

$

637.3

   

$

571.4

   

12

Depreciation of equipment on operating leases

178.5

167.2

7

Administrative and operating expenses

108.9

132.2

(18)

Fees and interest paid to John Deere

22.0

57.1

(61)

Provision for credit losses

60.4

21.0

188

Provision for income taxes

32.9

38.9

(15)

The increase in interest expense for the first quarter of 2025 was primarily due to higher average borrowings and higher average borrowing rates.

Administrative and operating expenses in the first quarter of 2025 decreased compared to the same period in 2024 due to lower foreign exchange losses in Argentina and lower employee compensation and benefits.

Fees and interest paid to John Deere decreased in the first quarter of 2025 due to lower interest on intercompany borrowings from John Deere, driven by lower average borrowings.

The provision for credit losses increased in the first quarter of 2025 compared with the same period last year due to higher net write-offs on retail notes and an increase in the allowance for credit losses, driven primarily by higher expected losses on retail notes as a result of elevated delinquencies and market conditions. The annualized provision for credit losses, as a percentage of the average balance of total Receivables, was .47% for the first quarter of 2025, compared with .17% for the same period last year.

The provision for income taxes decreased during the first quarter of 2025 primarily due to lower pretax income and favorable discrete tax items.

Receivables and Leases

Receivable and Lease (excluding wholesale) volumes were as follows:

Three Months Ended

January 26

January 28

$

%

2025

2024

Change

Change

Retail notes:

    

   

   

    

    

    

Agriculture and turf

2,174.3

2,833.1

(658.8)

(23)

Construction and forestry

 

868.2

 

753.6

 

114.6

15

Total retail notes

 

3,042.5

 

3,586.7

 

(544.2)

(15)

Revolving charge accounts

 

2,258.4

 

2,075.6

 

182.8

9

Financing leases

 

177.3

 

185.3

 

(8.0)

(4)

Equipment on operating leases

 

355.2

 

360.2

 

(5.0)

(1)

Total Receivables and Leases (excluding wholesale)

$

5,833.4

$

6,207.8

$

(374.4)

(6)

Receivable and Lease portfolio balances were as follows:

 

January 26

 

October 27

 

January 28

2025

2024

2024

Retail notes:

    

 

    

 

    

 

Agriculture and turf

27,104.4

28,117.2

26,678.4

Construction and forestry

 

5,942.6

 

5,820.6

 

5,455.7

Total retail notes

 

33,047.0

 

33,937.8

 

32,134.1

Revolving charge accounts

 

3,220.2

 

4,538.8

 

2,925.5

Wholesale receivables

 

12,783.2

 

14,114.1

 

14,542.8

Financing leases

 

1,376.0

 

1,636.9

 

1,251.0

Equipment on operating leases

 

5,293.7

 

5,427.7

 

4,933.4

Total Receivables and Leases

55,720.1

59,655.3

55,786.8

23

Total Receivables and Leases decreased $3,935.2 during the first three months of 2025, driven by lower wholesale receivables, a seasonal decline in revolving charge accounts, and lower agriculture and turf retail notes. The decrease in wholesale receivables was due to lower dealer inventory levels, while the reduction in agriculture and turf retail notes resulted from lower volumes due to a decline in John Deere retail sales.

Total Receivables 30 days or more past due, non-performing Receivables, and the allowance for credit losses were as follows (as a percentage of the Receivables balance):

January 26, 2025

October 27, 2024

January 28, 2024

Dollars

Percent

Dollars

Percent

Dollars

Percent

Receivables 30 days or more past due

$

789.1

1.56

$

607.4

1.12

$

714.5

1.41

Non-performing Receivables

598.3

1.19

533.6

.98

436.3

.86

Allowance for credit losses

242.0

.48

227.5

.42

139.6

.27

We monitor the credit quality of Receivables based on delinquency status. Receivables 30 days or more past due continue to accrue finance income. We stop accruing finance income once Receivables are considered non-performing, which generally occurs once Receivables are 90 days past due. An allowance for credit losses is recorded for the estimated credit losses expected over the life of the Receivable portfolio. We measure expected credit losses on a collective basis when similar risk characteristics exist. Risk characteristics include product category, market, geography, credit risk, and remaining balance. Receivables that do not share risk characteristics with other receivables in the portfolio are evaluated on an individual basis. Non-performing Receivables are included in the estimate of expected credit losses. While we believe our allowance for credit losses is sufficient to provide for losses over the life of our existing Receivable portfolio, different assumptions or changes in economic conditions would result in changes to the allowance for credit losses and the provision for credit losses. See Note 4 for additional information related to the allowance for credit losses.

Deposits held from dealers and merchants amounted to $115.1 at January 26, 2025, compared with $129.6 at October 27, 2024 and $129.3 at January 28, 2024. These balances primarily represent the aggregate dealer retail note and lease deposits from individual John Deere dealers to which losses from retail notes and leases originating from the respective dealers can be charged. Recoveries from dealer deposits are recognized in “Other income” when the dealer’s deposit account is charged.

We also utilize other freestanding credit enhancements, such as credit insurance and bank guarantees, to mitigate credit risk. Recoveries from these freestanding credit enhancements are generally recognized when the associated credit loss is recorded. Recoveries from dealer deposits and other freestanding credit enhancements recorded in “Other income” were $7.9 in the first quarter of 2025, compared with $7.3 for the same period last year, respectively.

24

Write-offs and recoveries of Receivables, by product, and as an annualized percentage of average balances held during the period, were as follows:

Three Months Ended

January 26, 2025

January 28, 2024

Dollars

Percent

Dollars

Percent

Write-offs:

    

    

    

    

    

    

    

Retail notes and financing leases:

Agriculture and turf

$

(21.5)

 

(.30)

$

(10.4)

 

(.15)

Construction and forestry

 

(20.9)

 

(1.37)

 

(13.9)

 

(.99)

Total retail notes and financing leases

 

(42.4)

 

(.49)

 

(24.3)

 

(.29)

Revolving charge accounts

 

(12.5)

 

(1.37)

 

(10.7)

 

(1.19)

Wholesale receivables

 

(.2)

 

(.01)

 

 

Total write-offs

 

(55.1)

 

(.43)

 

(35.0)

 

(.28)

Recoveries:

Retail notes and financing leases:

Agriculture and turf

 

1.3

 

.02

 

1.3

 

.02

Construction and forestry

 

.9

 

.06

 

.4

 

.03

Total retail notes and financing leases

 

2.2

 

.03

 

1.7

 

.02

Revolving charge accounts

 

8.7

 

.95

 

7.6

 

.85

Total recoveries

 

10.9

 

.09

 

9.3

 

.08

Total net write-offs

$

(44.2)

 

(.34)

$

(25.7)

 

(.20)

CRITICAL ACCOUNTING ESTIMATES

See our critical accounting estimates discussed in Management’s Discussion and Analysis of Financial Condition and Results of Operations of our recently filed Annual Report on Form 10-K. There have been no material changes to these estimates.

CAPITAL RESOURCES AND LIQUIDITY – 2025 COMPARED WITH 2024

We rely on our ability to raise substantial amounts of funds to finance our Receivable and Lease portfolios. We have access to global capital markets at a reasonable cost and our ability to meet our debt obligations is supported in several ways. Sources of liquidity include:

cash and cash equivalents
the issuance of commercial paper and term debt
the securitization of retail notes
intercompany loans from John Deere
our Receivable and Lease portfolio, which is self-liquidating in nature
bank lines of credit

We closely monitor our cash requirements. Based on the available sources of liquidity, we expect to meet our funding needs in the short term (next 12 months) and long term (beyond 12 months).

Key metrics and certain balance sheet data are provided in the following table:

January 26

October 27

January 28

   

2025

   

2024

   

2024

Cash, cash equivalents, and marketable securities

$

1,719.5

$

1,625.7

$

1,522.4

Receivables and Leases – net

55,478.1

59,427.8

55,647.2

Interest-bearing debt

49,937.1

54,145.0

50,470.5

Unused credit lines

7,792.7

6,474.0

1,576.6

Ratio of interest-bearing debt to stockholder’s equity

8.0 to 1

8.7 to 1

8.6 to 1

The increase in unused credit lines in 2025 compared to both prior periods primarily relates to a decrease in commercial paper outstanding, by both us and John Deere.

There have been no material changes to the contractual obligations and other cash requirements identified in our most recently filed Annual Report on Form 10-K.

25

Cash Flows

Three Months Ended

January 26

January 28

   

2025

   

2024

Net cash provided by operating activities

$

631.2

$

409.6

Net cash provided by investing activities

3,423.5

429.4

Net cash used for financing activities

(3,955.7)

(810.6)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(7.1)

1.5

Net increase in cash, cash equivalents, and restricted cash

$

91.9

$

29.9

Net cash provided by investing activities during the first three months of 2025 resulted primarily from a seasonal decrease in revolving charge account receivables and a decrease in wholesale receivables. The aggregate net cash provided by investing and operating activities was used primarily to decrease borrowings, resulting in cash outflows for financing activities.

Borrowings

Total borrowings decreased $4,207.9 in the first three months of 2025 and decreased $533.4 compared to a year ago, generally corresponding with the level of the Receivable and Lease portfolios. During the first three months of 2025, we issued $949.8 and retired $1,350.0 of long-term external borrowings, which primarily consisted of medium-term notes. During the first three months of 2025, we also issued $725.2 and retired $1,144.7 of retail note securitization borrowings and maintained an average commercial paper balance of $1,239.3. Our funding profile may be altered to reflect such factors as relative costs of funding sources, assets available for securitizations, and capital market accessibility.

We have a revolving warehouse facility to utilize bank conduit facilities to securitize retail notes (see Note 5). The facility was renewed in November 2024 with an expiration in November 2025 and with an increase in total capacity or “financing limit” from $2,000.0 to $2,500.0. At January 26, 2025, $1,917.3 of securitization borrowings were outstanding under the facility. At the end of the contractual revolving period, unless we and the banks agree to renew, we would liquidate the secured borrowings over time as payments on the retail notes are collected.

Lines of Credit

We have access to bank lines of credit with various banks throughout the world. Some of the lines are available to both us and Deere & Company.

Worldwide lines of credit were $10,652.6 at January 26, 2025, consisting primarily of:

a 364-day credit facility agreement of $5,000.0 expiring in the second quarter of 2025
a credit facility agreement of $2,750.0 expiring in the second quarter of 2028
a credit facility agreement of $2,750.0 expiring in the second quarter of 2029

At January 26, 2025, $7,792.7 of these worldwide lines of credit were unused. For the purpose of computing the unused credit lines, commercial paper and short-term bank borrowings of us and John Deere were considered to constitute utilization.

The credit agreements governing these lines of credit require us to maintain a consolidated ratio of earnings to fixed charges at not less than 1.05 to 1 for any four consecutive fiscal quarterly periods and our ratio of senior debt, excluding securitization indebtedness, to capital base (total subordinated debt and stockholder’s equity excluding accumulated other comprehensive income (loss)) at not more than 11 to 1 at the end of any fiscal quarter. All of these credit agreement requirements have been met during the periods included in the consolidated financial statements. The agreements are mutually extendable, and the annual facility fees are not significant.

Debt Ratings

Our ability to obtain funding is affected by our debt ratings, which are closely related to the outlook for and the financial condition of John Deere, and the nature and availability of support facilities, such as our lines of credit and the support agreement from Deere & Company.

26

To access public debt capital markets, we rely on credit rating agencies to assign short-term and long-term credit ratings to our debt securities as an indicator of credit quality for fixed income investors. A security rating is not a recommendation by the rating agency to buy, sell, or hold our debt securities. A credit rating agency may change or withdraw ratings based on its assessment of our current and future ability to meet interest and principal repayment obligations. Each agency’s rating should be evaluated independently of any other rating. Lower credit ratings generally result in higher borrowing costs, including costs of derivative transactions, reduced access to debt capital markets, and may adversely impact our liquidity.

The senior long-term and short-term debt ratings and outlook currently assigned to our unsecured debt securities by the rating agencies engaged by us are the same as those for John Deere and are as follows:

    

Senior Long-Term

    

Short-Term

    

Outlook

Fitch Ratings

A+

F1

Stable

Moody’s Investors Service, Inc.

 

A1

 

Prime-1

 

Stable

Standard & Poor’s

 

A

 

A-1

 

Stable

FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the sections entitled “Overview” and “Condensed Notes to Interim Consolidated Financial Statements” relating to future events, expectations, and trends constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially.

Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, we expressly disclaim any obligation to update or revise our forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:

our profitability and financial condition, including volume of Receivables and Leases, being dependent upon the level of retail sales and leases of John Deere products;
John Deere dealers’ practices and their ability to manage inventory and distribution of John Deere products and to provide support and service precision technology solutions;
John Deere’s and our ability to execute business strategies, including John Deere’s Smart Industrial Operating Model and Leap Ambitions;
negative claims or publicity that damage John Deere’s or our reputation or brand;
the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, harvest yields, available farm acres, acreage planted, soil conditions, prices for commodities and livestock, input costs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer practices due to slower economic growth, ability to export commodities, and regional or global liquidity constraints; these constraints may impact our customers and dealers, resulting in higher provisions for credit losses and write-offs;
housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment;
political, economic, and social instability of the geographies in which we and John Deere operate, including the ongoing war between Russia and Ukraine and the conflict in the Middle East;
a decrease in the value of used equipment or higher than estimated returns of equipment on operating leases;
higher interest rates and currency fluctuations, which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for John Deere’s and our products and solutions;
changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign, and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environmental (including climate change and engine emissions), farming, health, and safety, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, human rights, import / export and trade, tariffs, labor and employment, product liability, telematics, and telecommunications;
availability and price of raw materials, components, and whole goods;
delays or disruptions in John Deere’s supply chain;

27

changes in climate patterns, unfavorable weather events, and natural disasters, including potential consequences from the recent California wildfires;
changes in our credit ratings and any failure to comply with financial covenants in credit agreements could impact access to funding;
John Deere’s and our ability to understand and meet customers’ changing expectations and demand for John Deere products and solutions, including our financing solutions;
worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and consequently the demand for John Deere’s equipment;
the ability to attract, develop, engage, and retain qualified employees;
the impact of workforce reductions on employee retention, morale, and institutional knowledge;
security breaches, cybersecurity attacks, technology failures, and other disruptions to John Deere’s or our information technology infrastructure and products;
leveraging artificial intelligence and machine learning within John Deere’s and our business processes;
governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy; and
investigations, claims, lawsuits, or other legal proceedings.

Further information concerning our business, including factors that could materially affect our financial results, is included in our other filings with the SEC (including, but not limited to, the factors discussed in Item 1A. “Risk Factors” of our most recent Annual Report on Form 10-K and this Quarterly Report on Form 10-Q). There also may be other factors that we cannot anticipate or that are not described herein because we do not currently perceive them to be material.

Our business is closely related to John Deere’s business. Further information, including factors that could materially affect our financial results and John Deere’s financial results, is included in the most recent Deere & Company Annual Report on Form 10-K and Quarterly Report on Form 10-Q (including, but not limited to, the factors discussed in Item 1A., “Risk Factors” of the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q) and other Deere & Company filings with the SEC.

Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Omitted pursuant to General Instruction H.

Item 4.CONTROLS AND PROCEDURES

Our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act)) were effective as of January 26, 2025, based on the evaluation of these controls and procedures required by Rule 13a-15(b) or 15d-15(b) of the Exchange Act. During the first quarter of 2025, there were no changes that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

PART II.  OTHER INFORMATION

Item 1.Legal Proceedings

We are subject to various unresolved legal actions, the most prevalent of which relate to retail credit matters. Currently, we believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on our consolidated financial statements.

Item 1A.Risk Factors

See our most recently filed Annual Report on Form 10-K (Part I, Item 1A). The risks described in the Annual Report on Form 10-K, and the “Forward-Looking Statements” in this report, are not the only risks we face. Additional risks and uncertainties may also materially affect our business, financial condition, or operating results. One should not consider the risk factors to be a complete discussion of risks, uncertainties, and assumptions.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

Omitted pursuant to General Instruction H.

28

Item 3.Defaults Upon Senior Securities

Omitted pursuant to General Instruction H.

Item 4.Mine Safety Disclosures

Not applicable.

Item 5.Other Information

None.

Item 6.Exhibits

Certain instruments relating to long-term debt, constituting less than 10% of the registrant’s total assets, are not filed as exhibits herewith pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K. The registrant will furnish copies of such instruments to the SEC upon request of the SEC.

3.1

Certificate of Incorporation, as amended (Exhibit 3.1 to Form 10-K of the registrant for the year ended October 31, 1999, Securities and Exchange Commission file number 1-6458*)

3.2

Bylaws, as amended (Exhibit 3.2 to Form 10-K of the registrant for the year ended October 31, 1999, Securities and Exchange Commission file number 1-6458*)

31.1

Rule 13a-14(a)/15d-14(a) Certification

31.2

Rule 13a-14(a)/15d-14(a) Certification

32

Section 1350 Certifications (furnished herewith)

101.INS

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*     Incorporated by reference.

29

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

JOHN DEERE CAPITAL CORPORATION

Date:

February 27, 2025

By:

/s/ Joshua A. Jepsen

Joshua A. Jepsen

Senior Vice President

(Principal Financial Officer and Principal Accounting Officer)

30