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.”


	Three Months Ended				Six Months Ended
	May 3		April 27		May 3		April 27
	2026		2025		2026		2025
Sales-type and direct financing lease revenues	$	27.7	$	27.8	$	57.2	$	56.0
Operating lease revenues		268.3		256.8		532.6		510.9
Variable lease revenues		5.2		4.8		10.3		8.9
Total lease revenues	$	301.2	$	289.4	$	600.1	$	575.8

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 $1.2 and $2.6 for the three and six months ended May 3, 2026, respectively, compared with $1.0 and $1.6 for the same periods last year, respectively.

The cost of equipment on operating leases by market and residual values were as follows:


	May 3		November 2		April 27
	2026		2025		2025
Agriculture and turf	$	6,023.3	$	6,046.7	$	5,792.3
Construction and forestry		903.0		908.5		919.0
Total		6,926.3		6,955.2		6,711.3
Accumulated depreciation		(1,455.4)		(1,415.7)		(1,358.3)
Equipment on operating leases – net	$	5,470.9	$	5,539.5	$	5,353.0
Operating lease residual values	$	3,858.9	$	3,899.1	$	3,785.4
First-loss residual value guarantees		728.1		756.9		714.9

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 May 3, 2026, November 2, 2025, and April 27, 2025 were $27.1, $20.2, and $21.4, respectively. Matured operating lease inventory is reported in “Other assets.”