Notes Receivable from and Payable to John Deere

3 Months Ended

Jan. 29, 2023

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 provides loans to and holds other receivables from affiliated companies. 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 $6.9 million for the three months of 2023, compared with $5.4 million for the same period last year.

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

	January 29		October 30		January 30
	2023		2022		2022
Limited Liability Company John Deere Financial					$	196.9
Banco John Deere S.A.	$	494.4	$	370.0		174.8
John Deere Agricultural Holdings, Inc.				.7
Total Notes Receivable from John Deere	$	494.4	$	370.7	$	371.7

The Company also obtains funding from affiliated companies. At January 29, 2023, October 30, 2022, and January 30, 2022, the Company had notes payable to John Deere of $4,416.2 million, $5,225.5 million and $5,306.4 million, respectively. The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. At January 29, 2023, $544.6 million of the intercompany borrowings were long-term 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, which is recorded in fees and interest paid to John Deere, was $40.0 million and $16.4 million for the three months ended January 29, 2023 and January 30, 2022 respectively.