We lease John Deere equipment and a limited amount of non-John Deere equipment to retail customers through sales-type, direct financing, and operating leases. Sales-type and direct financing leases are reported in “Financing leases” and operating leases are reported in “Equipment on operating leases – net.”


	Three Months Ended				Nine Months Ended
	July 27		July 28		July 27		July 28
	2025		2024		2025		2024
Sales-type and direct financing lease revenues	$	30.0	$	30.4	$	86.0	$	83.7
Operating lease revenues		262.7		246.3		773.6		716.2
Variable lease revenues		4.4		4.0		13.3		12.1
Total lease revenues	$	297.1	$	280.7	$	872.9	$	812.0

Variable lease revenues reported above primarily relate to separately invoiced property taxes on leased equipment in certain markets, late fees, and excess use and damage fees. Excess use and damage fees are reported in “Other income” and were $.8 and $2.4 for the third quarter and the nine months ended July 27, 2025, respectively, compared with $.6 and $1.7 for the same periods last year, respectively.


	July 27		October 27		July 28
	2025		2024		2024
Agriculture and turf	$	5,922.2	$	5,765.0	$	5,510.2
Construction and forestry		911.4		963.7		970.2
Total		6,833.6		6,728.7		6,480.4
Accumulated depreciation		(1,400.0)		(1,301.0)		(1,281.0)
Equipment on operating leases – net	$	5,433.6	$	5,427.7	$	5,199.4

Total operating lease residual values at July 27, 2025, October 27, 2024, and July 28, 2024 were $3,836.7, $3,786.2, and $3,637.3, respectively. John Deere dealers generally provide a first-loss residual value guarantee on operating lease originations. Total residual value guarantees were $738.8, $698.7, and $649.6 at July 27, 2025, October 27, 2024, and July 28, 2024, respectively.

We discuss options to purchase the equipment or extend the lease prior to operating lease maturity with lessees and dealers. We remarket equipment returned to us upon termination of leases. The matured operating lease inventory balances at July 27, 2025, October 27, 2024, and July 28, 2024 were $27.2, $26.6, and $25.4, respectively. Matured operating lease inventory is reported in “Other assets.”