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INCOME TAXES (Tables)
12 Months Ended
Oct. 27, 2024
INCOME TAXES  
Provision for Income Taxes by Taxing Jurisdiction and by Significant Component

We are subject to income taxes in a number of jurisdictions. We determine our income tax provision using the asset and liability method. The provision for income taxes by taxing jurisdiction and by significant component consisted of the following:

    

2024

    

2023

    

2022

 

Current:

U.S.:

Federal

$

234.4

$

(98.6)

$

200.8

State

 

24.8

 

(33.7)

 

10.8

Foreign

 

50.8

 

41.0

 

29.3

Total current

 

310.0

 

(91.3)

 

240.9

Deferred:

U.S.:

Federal

 

(138.0)

 

230.6

 

(48.9)

State

 

(16.5)

 

29.1

 

3.2

Foreign

 

(4.7)

 

(2.5)

 

10.4

Total deferred

 

(159.2)

 

257.2

 

(35.3)

Provision for income taxes

$

150.8

$

165.9

$

205.6

Amounts Due from (Payable to) Deere & Company Under the Tax Sharing Arrangements

The amounts due from (payable to) Deere & Company under the tax sharing arrangements at October 27, 2024 and October 29, 2023 were as follows:

    

2024

    

2023

Tax sharing receivables

$

43.8

Tax sharing payables

$

(42.4)

(7.5)

The tax sharing receivables are included in “Other receivables” and the payables are included in “Accounts payable and accrued expenses.”

Comparison of Statutory and Effective Income Tax Provision

A comparison of the statutory and effective income tax provision and reasons for related differences follows:

    

2024

    

2023

    

2022

 

U.S. federal income tax provision at a statutory rate (21 percent)

$

152.8

$

154.1

$

187.8

Increase (decrease) resulting from:

Tax rates on foreign earnings

 

3.5

 

1.4

 

6.0

State and local income taxes, net of federal income tax benefit

 

3.4

 

.4

 

11.3

Other - net

 

(8.9)

 

10.0

 

.5

Provision for income taxes

$

150.8

$

165.9

$

205.6

Analysis of Deferred Income Tax Assets and Liabilities

Deferred income taxes arise because there are certain items that are treated differently for financial accounting than for income tax reporting purposes. An analysis of deferred income tax assets and liabilities at October 27, 2024 and October 29, 2023 was as follows:

2024

2023

 

    

Deferred

    

Deferred

    

Deferred

    

Deferred

 

Tax

Tax

Tax

Tax

 

Assets

Liabilities

Assets

Liabilities

 

Lease transactions

$

.2

$

437.1

$

1.2

$

562.6

Accrual for retirement and other benefits

1.0

3.8

Accrual for other employee benefits

19.7

19.6

Allowance for credit losses

71.1

39.8

Net unrealized gain/loss on derivatives/investments

6.5

8.8

Tax loss and tax credit carryforwards

 

14.8

 

27.6

Federal taxes on deferred state tax deductions

 

8.4

 

4.9

Miscellaneous accruals and other

 

76.5

12.2

 

61.1

8.1

Less valuation allowances

 

(4.6)

 

(10.2)

Total

$

193.6

$

449.3

$

147.8

$

579.5

Reconciliation of Total Amounts of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits at October 27, 2024, October 29, 2023, and October 30, 2022 was as follows:

    

2024

    

2023

    

2022

 

Beginning of year balance

$

44.4

$

36.5

$

34.9

Increases to tax positions taken during the current year

 

19.2

 

15.0

 

9.3

Increases to tax positions taken during prior years

 

4.4

 

3.2

 

1.2

Decreases to tax positions taken during prior years

 

(7.7)

 

(6.9)

 

(6.1)

Decreases due to lapse of statute of limitations

 

 

(2.6)

 

(2.7)

Settlements

(.5)

(.8)

(.1)

End of year balance

$

59.8

$

44.4

$

36.5