Notes Receivable from and Payable to John Deere

3 Months Ended

Jan. 30, 2022

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

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 $5.4 million in the first three months of 2022, compared with $3.3 million for the same period last year, which is recorded in other income.

The Company had notes receivable from John Deere with the following affiliated companies as follows (in millions of dollars):

	January 30		October 31		January 31
	2022		2021		2021
Limited Liability Company John Deere Financial	$	196.9	$	233.7	$	89.4
Banco John Deere S.A.		174.8		159.8		210.6
Total Notes Receivable from John Deere	$	371.7	$	393.5	$	300.0

The Company also obtains funding from affiliated companies. At January 30, 2022, October 31, 2021, and January 31, 2021, the Company had notes payable to John Deere of $5,306.4 million, $5,619.4 million and $5,227.4 million, respectively. The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. At January 30, 2022, the Company had $557.2 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. Interest expense paid to John Deere was $16.4 million and $9.9 million for the three months ended January 30, 2022 and January 31, 2021, respectively, which is recorded in fees paid to John Deere.