Notes Receivable from and Payable to John Deere

12 Months Ended

Oct. 31, 2021

Notes Receivable from and Payable to John Deere

Notes Receivable from and Payable to John Deere

Note 8. Notes Receivable from and Payable to John Deere

The Company makes loans to affiliated companies. The Company receives interest from John Deere at competitive market interest rates. The lending agreements mature over the next seven years. Interest earned from John Deere was $15.4 million, $16.6 million, and $17.4 million in 2021, 2020, and 2019, respectively, which is recorded in other income.

The Company had notes receivable from John Deere at October 31, 2021 and November 1, 2020 with the following affiliated companies as follows (in millions of dollars):

	2021		2020
Limited Liability Company John Deere Financial	$	233.7	$	132.5
Banco John Deere S.A.		159.8		217.5
Total Notes Receivable from John Deere	$	393.5	$	350.0

The Company also obtains funding from affiliated companies. At October 31, 2021 and November 1, 2020, the Company had notes payable to John Deere of $5,619.4 million and $5,249.5 million, respectively. The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. At October 31, 2021, the Company had $584.0 million of long-term intercompany loans without a due on demand call option, which mature in 2024. The Company pays interest to John Deere for these borrowings based on competitive market rates. The weighted-average interest rates on total intercompany borrowings at October 31, 2021 and November 1, 2020 were 1.2 percent and .7 percent, respectively. Interest expense paid to John Deere was $53.0 million, $18.1 million, and $17.0 million in 2021, 2020, and 2019, respectively, which is recorded in fees paid to John Deere.