NOTES RECEIVABLE FROM AND PAYABLE TO JOHN DEERE

3 Months Ended

Jan. 26, 2025

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.” In 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% owner of BJD. The transaction closed in February 2025. We plan to provide funding to the joint venture and will report the loans as receivables from related parties in future quarters.

Balances due from BJD were as follows:

	January 26		October 27		January 28
	2025		2024		2024
Notes receivable from John Deere	$	590.3	$	576.3	$	663.7

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 $10.1 for the first three months of 2025, compared with $11.5 for the same period last year.

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

	January 26		October 27		January 28
	2025		2024		2024
Notes payable to John Deere	$	1,228.4	$	2,681.5	$	3,512.5

The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. There were no intercompany borrowings that were long-term loans without a due on demand call option at January 26, 2025 and October 27, 2024, compared with $542.3 at January 28, 2024. We pay interest to John Deere for these borrowings based on competitive market rates. Interest expense paid to John Deere was $9.9 and $43.8 for the three months ended January 26, 2025 and January 28, 2024, respectively, which is recorded in “Fees and interest paid to John Deere.” The decrease was primarily attributable to lower average intercompany borrowings in the first three months of 2025 compared to the same period in 2024.