Notes Receivable from and Payable to John Deere

3 Months Ended

Jan. 28, 2024

Notes Receivable from and Payable to John Deere

Notes Receivable from and Payable to John Deere

(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.” Balances due from BJD were as follows:

	January 28		October 29		January 29
	2024		2023		2023
Notes receivable from John Deere	$	663.7	$	650.7	$	494.4

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 $11.5 for the first three months of 2024, compared with $6.9 for the same period last year.

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

	January 28		October 29		January 29
	2024		2023		2023
Notes payable to John Deere	$	3,512.5	$	3,184.0	$	4,416.2

The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. At January 28, 2024, $542.3 of the intercompany borrowings were long-term loans without a due on demand call option, which mature in 2025. We pay interest to John Deere for these borrowings based on competitive market rates. Interest expense paid to John Deere was $43.8 and $40.0 for the three months ended January 28, 2024 and January 29, 2023 respectively, which is recorded in “Fees and interest paid to John Deere.”