Notes Receivable from and Payable to John Deere

9 Months Ended

Jul. 30, 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 $10.4 million for the third quarter and $25.8 million in the first nine months of 2023, respectively, compared with $2.5 million and $12.7 million for the same periods last year, respectively.

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

	July 30		October 30		July 31
	2023		2022		2022
Banco John Deere S.A.	$	648.1	$	370.0	$	270.4
John Deere Agricultural Holdings, Inc.				.7		8.8
Total Notes Receivable from John Deere	$	648.1	$	370.7	$	279.2

The Company also obtains funding from affiliated companies. At July 30, 2023, October 30, 2022, and July 31, 2022, the Company had notes payable to John Deere of $4,139.2 million, $5,225.5 million and $4,499.8 million, respectively. The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. At July 30, 2023, $548.8 million of the intercompany borrowings were long-term loans without a due on demand call option, which mature in 2025. 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 $60.1 million for the third quarter and $145.8 million for the first nine months of 2023, respectively, compared with $23.7 million and $57.6 million for the same periods last year, respectively.