NOTES RECEIVABLE FROM AND PAYABLE TO JOHN DEERE

9 Months Ended

Jul. 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:

	July 28		October 29		July 30
	2024		2023		2023
Notes receivable from John Deere	$	592.3	$	650.7	$	648.1

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 third quarter and $34.3 in the first nine months of 2024 compared with $10.4 and $25.8 for the same periods last year, respectively.

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

	July 28		October 29		July 30
	2024		2023		2023
Notes payable to John Deere	$	3,608.2	$	3,184.0	$	4,139.2

The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. At July 28, 2024, there were no intercompany borrowings that were long-term loans without a due on demand call option, compared with $528.1 and $548.8 at October 29, 2023 and July 30, 2023, respectively. We pay interest to John Deere for these borrowings based on competitive market rates. Interest expense paid to John Deere was $47.8 for the third quarter and $133.1 for the first nine months of 2024, compared with $60.1 and $145.8 for the same periods last year, respectively, which is recorded in “Fees and interest paid to John Deere.”