Notes Receivable from and Payable to John Deere

12 Months Ended

Oct. 29, 2023

Notes Receivable from and Payable to John Deere

Notes Receivable from and Payable to John Deere

Note 7. Notes Receivable from and Payable to John Deere

At October 29, 2023 and October 30, 2022 we had notes receivable from John Deere with the following affiliated companies:

	2023		2022
Banco John Deere S.A.	$	650.7	$	370.0
John Deere Agricultural Holdings, Inc.				.7
Total notes receivable from John Deere	$	650.7	$	370.7

The loan agreements mature over the next seven years and charge interest at competitive market interest rates. Interest earned from John Deere was $37.6, $16.9, and $15.4 in 2023, 2022, and 2021, respectively, which is recorded in “Other income.”

At October 29, 2023 and October 30, 2022, we had notes payable to John Deere as follows:

	2023		2022
Notes payable to John Deere	$	3,184.0	$	5,225.5
Weighted average interest rate		5.2%		3.3%

The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. At October 29, 2023, $528.1 of the intercompany borrowings were long-term loans without a due on demand call option, which mature in 2025. We pay interest to John Deere for these borrowings based on competitive market rates. Interest expense paid to John Deere was $199.9, $86.8, and $53.0 in 2023, 2022, and 2021, respectively, which is recorded in “Fees and interest paid to John Deere.”