Income Taxes (Tables)

12 Months Ended

Oct. 29, 2023

Income Taxes

Provision for Income Taxes by Taxing Jurisdiction and by Significant Component

We are subject to income taxes in a number of jurisdictions. The income tax provision is determined using the asset and liability method. The provision for income taxes by taxing jurisdiction and by significant component consisted of the following:

	2023		2022		2021
Current:
U.S.:
Federal	$	(98.6)	$	200.8	$	231.1
State		(33.7)		10.8		15.2
Foreign		41.0		29.3		37.2
Total current		(91.3)		240.9		283.5
Deferred:
U.S.:
Federal		230.6		(48.9)		(75.4)
State		29.1		3.2		1.9
Foreign		(2.5)		10.4		(16.2)
Total deferred		257.2		(35.3)		(89.7)
Provision for income taxes	$	165.9	$	205.6	$	193.8

Amounts Due from (Payable to) Deere & Company Under the Tax Sharing Arrangements

The amounts due from (payable to) Deere & Company under the tax sharing arrangements at October 29, 2023 and October 30, 2022 were as follows:

	2023		2022
Tax sharing receivables	$	43.8	$	6.3
Tax sharing payables		(7.5)		(9.3)

The tax sharing receivables are included in “Other receivables” and the payables are included in “Accounts payable and accrued expenses.”

Comparison of Statutory and Effective Income Tax Provision

A comparison of the statutory and effective income tax provision and reasons for related differences follows:

	2023		2022		2021
U.S. federal income tax provision at a statutory rate (21 percent)	$	154.1	$	187.8	$	184.4
Increase (decrease) resulting from:
Tax rates on foreign earnings		1.4		6.0		5.5
State and local income taxes, net of federal income tax benefit		.4		11.3		13.7
Other - net		10.0		.5		(9.8)
Provision for income taxes	$	165.9	$	205.6	$	193.8

Analysis of Deferred Income Tax Assets and Liabilities

Deferred income taxes arise because there are certain items that are treated differently for financial accounting than for income tax reporting purposes. An analysis of deferred income tax assets and liabilities at October 29, 2023 and October 30, 2022 was as follows:

	2023				2022
	Deferred		Deferred		Deferred		Deferred
	Tax		Tax		Tax		Tax
	Assets		Liabilities		Assets		Liabilities
Lease transactions	$	1.2	$	562.6	$	.1	$	262.6
Accrual for retirement and other benefits		3.8				5.3
Accrual for other employee benefits		19.6				14.3
Allowance for credit losses		39.8				32.6
Net unrealized gain on derivatives/investments				8.8				26.5
Tax loss and tax credit carryforwards		27.6				11.6
Federal taxes on deferred state tax deductions		4.9				7.8
Miscellaneous accruals and other		61.1		8.1		46.8		4.1
Less valuation allowances		(10.2)				(8.3)
Deferred income tax assets and liabilities	$	147.8	$	579.5	$	110.2	$	293.2

Reconciliation of Total Amounts of Unrecognized Tax Benefits

A reconciliation of the total amounts of unrecognized tax benefits at October 29, 2023, October 30, 2022, and October 31, 2021 was as follows:

	2023		2022		2021
Beginning of year balance	$	36.5	$	34.9	$	33.3
Increases to tax positions taken during the current year		15.0		9.3		11.2
Increases to tax positions taken during prior years		3.2		1.2		1.4
Decreases to tax positions taken during prior years		(6.9)		(6.1)		(5.8)
Decreases due to lapse of statute of limitations		(2.6)		(2.7)		(3.7)
Settlements		(.8)		(.1)		(1.5)
End of year balance	$	44.4	$	36.5	$	34.9