NOTES RECEIVABLE FROM AND PAYABLE TO JOHN DEERE

12 Months Ended

Oct. 27, 2024

NOTES RECEIVABLE FROM AND PAYABLE TO JOHN DEERE

NOTES RECEIVABLE FROM AND PAYABLE TO JOHN DEERE

NOTE 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 August 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 percent owner of BJD. The transaction is expected to close in the first half of 2025. We plan to provide funding to the joint venture after the transaction closes and will report the loans as receivables from unconsolidated affiliates.

Balances due from BJD at October 27, 2024 and October 29, 2023 were as follows:

	2024		2023
Notes receivable from John Deere	$	576.3	$	650.7

The loan agreements mature over the next eight years and charge interest at competitive market rates. Interest earned from John Deere was $44.8, $37.6, and $16.9 in 2024, 2023, and 2022, respectively, which is recorded in “Other income.”

We also obtain funding from affiliated companies which resulted in notes payable to John Deere at October 27, 2024 and October 29, 2023 as follows:

	2024		2023
Notes payable to John Deere	$	2,681.5	$	3,184.0
Weighted average interest rate		4.4%		5.2%

The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. At October 27, 2024, there were no intercompany borrowings that were long-term loans without a due on demand call option, compared with $528.1 at October 29, 2023. We pay interest to John Deere for these borrowings based on competitive market rates. Interest expense paid to John Deere was $163.7, $199.9, and $86.8 in 2024, 2023, and 2022, respectively, which is recorded in “Fees and interest paid to John Deere.”