NOTES RECEIVABLE FROM AND PAYABLE TO JOHN DEERE

6 Months Ended

Apr. 28, 2024

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

We provide loans to Banco John Deere S.A. (BJD), a John Deere finance subsidiary in Brazil, which are reported in “Notes receivable from John Deere.” Balances due from BJD were as follows:

	April 28		October 29		April 30
	2024		2023		2023
Notes receivable from John Deere	$	631.7	$	650.7	$	545.6

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 $11.3 for the second quarter and $22.8 in the first six months of 2024 compared with $8.6 and $15.4 for the same periods last year, respectively.

We also obtain funding from affiliated companies which resulted in notes payable to John Deere as follows:

	April 28		October 29		April 30
	2024		2023		2023
Notes payable to John Deere	$	3,694.0	$	3,184.0	$	4,810.4

The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. At April 28, 2024, $536.5 of the intercompany borrowings were long-term loans without a due on demand call option, which mature in 2026. We pay interest to John Deere for these borrowings based on competitive market rates. Interest expense paid to John Deere was $41.5 for the second quarter and $85.3 for the first six months of 2024, compared with $45.8 and $85.7 for the same periods last year, respectively, which is recorded in “Fees and interest paid to John Deere.”