8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report: February 21, 2020

(Date of earliest event reported)

DEERE & COMPANY

(Exact name of registrant as specified in its charter)

Delaware	1-4121	36-2382580
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One John Deere Place

Moline, Illinois 61265

(Address of principal executive offices and zip code)

(309) 765-8000

(Registrant’s telephone number, including area code)

___________________________________________________

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of each class	Trading symbol	Name of each exchange on which registered
Common stock, $1 par value	DE	New York Stock Exchange
8½% Debentures Due 2022	DE22	New York Stock Exchange
6.55% Debentures Due 2028	DE28	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Items 2.02

and 7.01            Results of Operations and Financial Condition and Regulation FD Disclosure (Furnished

herewith)

Deere & Company’s press release dated February 21, 2020 concerning First Quarter of Fiscal 2020 financial results and supplemental financial information (Exhibit 99.1) is furnished under Form 8-K Items 2.02 and 7.01. The attached schedules of Other Financial Information (Exhibit 99.2) and First Quarter 2020 Earnings Conference Call Information (Exhibit 99.3) are furnished under Form 8-K Items 2.02 and 7.01. The information is not filed for purposes of the Securities Exchange Act of 1934 and is not deemed incorporated by reference by any general statements incorporating by reference this report or future filings into any filings under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent Deere & Company specifically incorporates the information by reference.

Item 9.01Financial Statements and Exhibits

(d)Exhibits

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Exhibit Index

Number and Description of Exhibit
(99.1)	Press Release and Supplemental Financial Information (Furnished herewith)
(99.2)	Other Financial Information (Furnished herewith)
(99.3)	First Quarter 2020 Earnings Conference Call Information (Furnished herewith)
(104)	Cover Page Interactive Data File (the cover page XBRL tags are imbedded in the Inline XBRL document)

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Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	DEERE & COMPANY
	By:	/s/ Todd E. Davies
		Todd E. Davies
		Secretary
Dated: February 21, 2020

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EX-99.1

Exhibit 99.1

(Furnished herewith)

NEWS RELEASE

Ken Golden

Director, Global Public Relations

Deere & Company

309‑765‑5678

Deere Reports First-Quarter Income of $517 Million

· Net income rises 4% on 6% decline in net sales.

· U.S. farm sector shows early signs of stabilization.

· Full-year earnings forecast unchanged.

MOLINE, Illinois (February 21, 2020) — Deere & Company reported net income of $517 million for the first quarter ended February 2, 2020, or $1.63 per share, compared with net income of $498 million, or $1.54 per share, for the quarter ended January 27, 2019. Worldwide net sales and revenues decreased 4 percent in the first quarter of 2020 to $7.631 billion. Net sales of the equipment operations were $6.530 billion for the quarter, compared with $6.941 billion in 2019.

“John Deere’s first-quarter performance reflected early signs of stabilization in the U.S. farm sector,” said John C. May, chief executive officer. “Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports. At the same time, activity in the construction sector has slowed leading to lower sales and profit for our Construction & Forestry division. Also impacting results in Deere’s construction equipment business were our actions to reduce factory production and lower inventories in response to current market conditions. Additionally, the quarter included costs of a voluntary employee-separation program, which is among the steps Deere is taking to improve flexibility and efficiency.”

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2020 is forecast to be in a range of $2.7 billion to $3.1 billion.

“Looking ahead, we are particularly encouraged by the broad use of precision technologies and believe the company is well-positioned to strengthen its leadership in this vital area,” May said. “In addition, we are proceeding with a series of measures to create a more focused organizational structure that can operate with greater speed and agility. These steps are leading to improved efficiencies and helping the company focus its resources and investments on areas that have the most impact on performance.”

Deere & Company	First Quarter
$ in millions	2020		2019		% Change
Net sales and revenues	$	7,631	$	7,984	-4%
Net income	$	517	$	498	4%
Fully diluted EPS	$	1.63	$	1.54

The voluntary employee-separation program’s total pretax expense recognized in the first quarter of 2020 was $127 million, with another $9 million to be recorded over the remainder of the year. Included in first-quarter expense was $22 million for items excluded from operating profit and $3 million recorded by financial services. Annual estimated savings from the separation program are approximately $85 million, 

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with about $65 million expected in 2020. Discrete income tax benefits also affected the quarter’s net income.

Equipment Operations	First Quarter
$ in millions	2020		2019		% Change
Net sales	$	6,530	$	6,941	-6%
Operating profit	$	466	$	577	-19%
Net income	$	383	$	340	13%

For a discussion of net sales and operating profit results, see the Agriculture & Turf and Construction & Forestry sections below.

Agriculture & Turf	First Quarter
$ in millions	2020		2019		% Change
Net sales	$	4,486	$	4,681	-4%
Operating profit	$	373	$	348	7%
Operating margin		8.3%		7.4%

Agriculture & Turf sales for the quarter declined due to lower shipment volumes and the unfavorable effects of currency translation, partially offset by price realization. Operating profit increased primarily due to price realization, improved production costs, and lower warranty-related expenses, partially offset by lower shipment volumes / sales mix and voluntary employee-separation expenses.

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Construction & Forestry	First Quarter
$ in millions	2020		2019		% Change
Net sales	$	2,044	$	2,260	-10%
Operating profit	$	93	$	229	-59%
Operating margin		4.5%		10.1%

Construction & Forestry sales declined for the quarter due to lower shipment volumes and the unfavorable effects of currency translation, partially offset by price realization. Operating profit moved lower as a result of lower shipment volumes / sales mix and voluntary employee-separation expenses. These items were partially offset by price realization.

Financial Services	First Quarter
$ in millions	2020		2019		% Change
Net income	$	137	$	154	-11%

Financial services net income for the quarter decreased from the prior-year period. The decline was due primarily to higher losses on lease residual values, an increased provision for credit losses, prior-year favorable discrete adjustments to the provision for income taxes and greater selling, administrative and general expenses. These factors were partially offset by income earned on a higher average portfolio.

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Market Conditions and Outlook (Annual)		Currency	Price
$ in millions	Net Sales	Translation	Realization
Agriculture & Turf	-5% to -10%	-1%	2%
Construction & Forestry	-10% to -15%	-1%	1%
John Deere Financial	Net Income	$ 600

Agriculture & Turf. Deere’s worldwide sales of agriculture and turf equipment are forecast to decline 5 to 10 percent for fiscal-year 2020, including a negative currency-translation effect of about 1 percent. Industry sales of agricultural equipment in the U.S. and Canada are forecast to be down about 5 percent, driven by lower demand for large equipment in Canada. Full-year industry sales in Europe are forecast to be approximately flat as are South American industry sales of tractors and combines. Asian sales are forecast to be about the same as the prior year. Industry sales of turf and utility equipment in the U.S. and Canada are expected to be about flat.

Construction & Forestry. Deere’s worldwide sales of construction and forestry equipment are anticipated to be down 10 to 15 percent for 2020, with foreign-currency rates having an unfavorable translation effect of about 1 percent. The outlook reflects slowing construction activity as well as efforts to bring down field inventory levels. Industry construction-equipment sales in North America are expected to decline by 5 to 10 percent for the year. In forestry, global industry sales are expected to be down 5 to 10 percent due to weaker demand in North America and Russia.

Financial Services. Full-year 2020 results are expected to benefit from lower losses on lease residual values and income earned from a higher average portfolio, partially offset by a higher provision for credit losses and prior-year favorable discrete adjustments to the provision for income taxes.

John Deere Capital Corporation

The following is disclosed on behalf of the company’s financial services subsidiary, John Deere Capital Corporation (JDCC), in connection with the disclosure requirements applicable to its periodic issuance of debt securities in the public market.

	First Quarter
$ in millions	2020		2019		% Change
Revenue	$	719	$	661	9%
Net income	$	99	$	122	-19%
Ending portfolio balance	$	37,146	$	34,975	6%

Results for the quarter were lower than the same period in 2019 related to an increased provision for credit losses, higher losses on lease residual values, prior-year favorable discrete adjustments to the provision for income taxes, and greater selling, administrative and general expenses, partially offset by income earned on a higher average portfolio.

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Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:  Statements under “Company Outlook & Summary,” “Market Conditions & Outlook,” and other forward-looking statements herein that relate to future events, expectations, and trends involve factors that are subject to change, and risks and uncertainties that could cause actual results to differ materially.  Some of these risks and uncertainties could affect particular lines of business, while others could affect all of the company’s businesses.

The company’s agricultural equipment business is subject to a number of uncertainties including the factors that affect farmers’ confidence and financial condition.  These factors include demand for agricultural products, world grain stocks, weather conditions, soil conditions, harvest yields, prices for commodities and livestock, crop and livestock production expenses, availability of transport for crops, trade restrictions and tariffs (e.g., China), global trade agreements (e.g., the United States-Mexico-Canada Agreement), the level of farm product exports (including concerns about genetically modified organisms), the growth and sustainability of non-food uses for some crops (including ethanol and biodiesel production), real estate values, available acreage for farming, the land ownership policies of governments, changes in government farm programs and policies, international reaction to such programs, changes in and effects of crop insurance programs, changes in environmental regulations and their impact on farming practices, animal diseases (e.g., African swine fever) and their effects on poultry, beef and pork consumption and prices and on livestock feed demand, and crop pests and diseases.

Factors affecting the outlook for the company’s turf and utility equipment include consumer confidence, weather conditions, customer profitability, labor supply, consumer borrowing patterns, consumer purchasing preferences, housing starts and supply, infrastructure investment, spending by municipalities and golf courses, and consumable input costs.

Consumer spending patterns, real estate and housing prices, the number of housing starts, interest rates and the levels of public and non-residential construction are important to sales and results of the company’s construction and forestry equipment.  Prices for pulp, paper, lumber and structural panels are important to sales of forestry equipment.

All of the company’s businesses and its results are affected by general economic conditions in the global markets and industries in which the company operates; customer confidence in general economic conditions; government spending and taxing; foreign currency exchange rates and their volatility, especially fluctuations in the value of the U.S. dollar; interest rates (including the availability of IBOR reference rates); inflation and deflation rates; changes in weather patterns; the political and social stability of the global markets in which the company operates; the effects of, or response to, terrorism and security threats; wars and other conflicts; natural disasters; and the spread of major epidemics (including Coronavirus) and responses to epidemics such as government-imposed travel restrictions and extended shut down of businesses.

Significant changes in market liquidity conditions, changes in the company’s credit ratings and any failure to comply with financial covenants in credit agreements could impact access to funding and funding costs, which could reduce the company’s earnings and cash flows.  Financial market conditions could also negatively impact customer access to capital for purchases of the company’s products and customer confidence and purchase decisions, borrowing and repayment practices, and the number and size of customer loan delinquencies and defaults.  A debt crisis, in Europe or elsewhere, could negatively impact currencies, global financial markets, social and political stability, funding sources and costs, asset and obligation values, customers, suppliers, demand for equipment, and company operations and results.  The company’s investment management activities could be impaired by changes in the equity, bond and other financial markets, which would negatively affect earnings.

The withdrawal of the United Kingdom from the European Union and the perceptions as to the impact of the withdrawal may adversely affect business activity, political stability and economic conditions in the United Kingdom, the European Union and elsewhere.  The economic conditions and outlook could be further adversely affected by (i) uncertainty regarding any new or modified trade arrangements between the United Kingdom and the European Union and/or other countries, (ii) the risk that one or more other

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European Union countries could come under increasing pressure to leave the European Union, or (iii) the risk that the euro as the single currency of the Eurozone could cease to exist.  Any of these developments, or the perception that any of these developments are likely to occur, could affect economic growth or business activity in the United Kingdom or the European Union, and could result in the relocation of businesses, cause business interruptions, lead to economic recession or depression, and impact the stability of the financial markets, availability of credit, currency exchange rates, interest rates, financial institutions, and political, financial and monetary systems.  Any of these developments could affect our businesses, liquidity, results of operations and financial position.

Additional factors that could materially affect the company’s operations, access to capital, expenses and results include changes in, uncertainty surrounding and the impact of governmental trade, banking, monetary and fiscal policies, including financial regulatory reform and its effects on the consumer finance industry, derivatives, funding costs and other areas, and governmental programs, policies, tariffs and sanctions in particular jurisdictions or for the benefit of certain industries or sectors; retaliatory actions to such changes in trade, banking, monetary and fiscal policies; actions by central banks; actions by financial and securities regulators; actions by environmental, health and safety regulatory agencies, including those related to engine emissions, carbon and other greenhouse gas emissions, noise and the effects of climate change; changes to GPS radio frequency bands or their permitted uses; changes in labor and immigration regulations; changes to accounting standards; changes in tax rates, estimates, laws and regulations and company actions related thereto; changes to and compliance with privacy regulations; compliance with U.S. and foreign laws when expanding to new markets and otherwise; and actions by other regulatory bodies.

Other factors that could materially affect results include production, design and technological innovations and difficulties, including capacity and supply constraints and prices; the loss of or challenges to intellectual property rights whether through theft, infringement, counterfeiting or otherwise; the availability and prices of strategically sourced materials, components and whole goods; delays or disruptions in the company’s supply chain or the loss of liquidity by suppliers; disruptions of infrastructures that support communications, operations or distribution; the failure of suppliers or the company to comply with laws, regulations and company policy pertaining to employment, human rights, health, safety, the environment, anti-corruption, privacy and data protection and other ethical business practices; events that damage the company’s reputation or brand; significant investigations, claims, lawsuits or other legal proceedings; start-up of new plants and products; the success of new product initiatives; changes in customer product preferences and sales mix; gaps or limitations in rural broadband coverage, capacity and speed needed to support technology solutions; oil and energy prices, supplies and volatility; the availability and cost of freight; actions of competitors in the various industries in which the company competes, particularly price discounting; dealer practices especially as to levels of new and used field inventories; changes in demand and pricing for used equipment and resulting impacts on lease residual values; labor relations and contracts; changes in the ability to attract, train and retain qualified personnel; acquisitions and divestitures of businesses; greater than anticipated transaction costs; the integration of new businesses; the failure or delay in closing or realizing anticipated benefits of acquisitions, joint ventures or divestitures; the implementation of organizational changes; the failure to realize anticipated savings or benefits of cost reduction, productivity, or efficiency efforts; difficulties related to the conversion and implementation of enterprise resource planning systems; security breaches, cybersecurity attacks, technology failures and other disruptions to the company’s and suppliers’ information technology infrastructure; changes in company declared dividends and common stock issuances and repurchases; changes in the level and funding of employee retirement benefits; changes in market values of investment assets, compensation, retirement, discount and mortality rates which impact retirement benefit costs; and significant changes in health care costs.

The liquidity and ongoing profitability of John Deere Capital Corporation and other credit subsidiaries depend largely on timely access to capital in order to meet future cash flow requirements, and to fund operations, costs, and purchases of the company’s products.  If general economic conditions deteriorate or capital markets become more volatile, funding could be unavailable or insufficient.  Additionally, customer confidence levels may result in declines in credit applications and increases in delinquencies and default rates, which could materially impact write-offs and provisions for credit losses.

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The company’s outlook is based upon assumptions relating to the factors described above, which are sometimes based upon estimates and data prepared by government agencies.  Such estimates and data are often revised.  The company, except as required by law, undertakes no obligation to update or revise its outlook, whether as a result of new developments or otherwise.  Further information concerning the company and its businesses, including factors that could materially affect the company’s financial results, is included in the company’s other filings with the SEC (including, but not limited to, the factors discussed in Item 1A.  Risk Factors of the company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q).

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First Quarter 2020 Press Release

(in millions of dollars)

Unaudited

	Three Months Ended
	February 2		January 27		%
	2020		2019		Change
Net sales and revenues:
Agriculture and turf	$	4,486	$	4,681	-4
Construction and forestry		2,044		2,260	-10
Total net sales		6,530		6,941	-6
Financial services		931		855	+9
Other revenues		170		188	-10
Total net sales and revenues	$	7,631	$	7,984	-4
Operating profit: *
Agriculture and turf	$	373	$	348	+7
Construction and forestry		93		229	-59
Financial services		179		192	-7
Total operating profit		645		769	-16
Reconciling items **		(78)		(87)	-10
Income taxes		(50)		(184)	-73
Net income attributable to Deere & Company	$	517	$	498	+4

*     Operating profit is income from continuing operations before corporate expenses, certain external interest expense, certain foreign exchange gains and losses, and income taxes. Operating profit of the financial services segment includes the effect of interest expense and foreign exchange gains or losses.

**   Reconciling items are primarily corporate expenses, certain external interest expense, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests.

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DEERE & COMPANY

STATEMENT OF CONSOLIDATED INCOME

For the Three Months Ended February 2, 2020 and January 27, 2019

(In millions of dollars and shares except per share amounts) Unaudited

	2020		2019
Net Sales and Revenues
Net sales	$	6,530	$	6,941
Finance and interest income		896		815
Other income		205		228
Total		7,631		7,984
Costs and Expenses
Cost of sales		5,077		5,432
Research and development expenses		425		407
Selling, administrative and general expenses		809		764
Interest expense		336		353
Other operating expenses		415		351
Total		7,062		7,307
Income of Consolidated Group before Income Taxes		569		677
Provision for income taxes		50		184
Income of Consolidated Group		519		493
Equity in income (loss) of unconsolidated affiliates		(1)		7
Net Income		518		500
Less: Net income attributable to noncontrolling interests		1		2
Net Income Attributable to Deere & Company	$	517	$	498
Per Share Data
Basic	$	1.65	$	1.56
Diluted	$	1.63	$	1.54
Average Shares Outstanding
Basic		313.5		318.5
Diluted		317.2		322.7

See Condensed Notes to Interim Consolidated Financial Statements.

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DEERE & COMPANY

CONDENSED CONSOLIDATED BALANCE SHEET

(In millions of dollars) Unaudited

	February 2		November 3		January 27
	2020		2019		2019
Assets
Cash and cash equivalents	$	3,602	$	3,857	$	3,626
Marketable securities		609		581		523
Receivables from unconsolidated affiliates		38		46		36
Trade accounts and notes receivable - net		5,360		5,230		5,497
Financing receivables - net		27,294		29,195		25,150
Financing receivables securitized - net		4,478		4,383		4,563
Other receivables		1,367		1,487		1,651
Equipment on operating leases - net		7,504		7,567		6,904
Inventories		6,482		5,975		7,402
Property and equipment - net		5,900		5,973		5,785
Investments in unconsolidated affiliates		217		215		212
Goodwill		2,945		2,917		3,048
Other intangible assets - net		1,349		1,380		1,507
Retirement benefits		900		840		1,348
Deferred income taxes		1,414		1,466		834
Other assets		2,362		1,899		1,832
Total Assets	$	71,821	$	73,011	$	69,918
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings	$	10,008	$	10,784	$	10,738
Short-term securitization borrowings		4,416		4,321		4,464
Payables to unconsolidated affiliates		147		142		144
Accounts payable and accrued expenses		8,630		9,656		9,086
Deferred income taxes		491		495		525
Long-term borrowings		30,475		30,229		27,855
Retirement benefits and other liabilities		5,710		5,953		5,759
Total liabilities		59,877		61,580		58,571
Redeemable noncontrolling interest		14		14		14
Stockholders’ Equity
Total Deere & Company stockholders’ equity		11,926		11,413		11,328
Noncontrolling interests		4		4		5
Total stockholders’ equity		11,930		11,417		11,333
Total Liabilities and Stockholders’ Equity	$	71,821	$	73,011	$	69,918

See Condensed Notes to Interim Consolidated Financial Statements.

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DEERE & COMPANY

STATEMENT OF CONSOLIDATED CASH FLOWS

For the Three Months Ended February 2, 2020 and January 27, 2019

(In millions of dollars) Unaudited

	2020		2019
Cash Flows from Operating Activities
Net income	$	518	$	500
Adjustments to reconcile net income to net cash used for operating activities:
Provision for credit losses		15		2
Provision for depreciation and amortization		538		503
Share-based compensation expense		19		20
Undistributed earnings of unconsolidated affiliates				(7)
Credit for deferred income taxes		(29)		(56)
Changes in assets and liabilities:
Trade, notes and financing receivables related to sales		70		(507)
Inventories		(642)		(1,396)
Accounts payable and accrued expenses		(1,134)		(698)
Accrued income taxes payable/receivable		(53)		98
Retirement benefits		36		(4)
Other		154		(106)
Net cash used for operating activities		(508)		(1,651)
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)		5,664		5,496
Proceeds from maturities and sales of marketable securities		18		8
Proceeds from sales of equipment on operating leases		426		371
Cost of receivables acquired (excluding receivables related to sales)		(4,303)		(4,213)
Purchases of marketable securities		(34)		(32)
Purchases of property and equipment		(271)		(297)
Cost of equipment on operating leases acquired		(517)		(361)
Other		43		(3)
Net cash provided by investing activities		1,026		969
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		(473)		476
Proceeds from long-term borrowings		1,702		2,211
Payments of long-term borrowings		(1,651)		(1,941)
Proceeds from issuance of common stock		53		51
Repurchases of common stock		(114)		(144)
Dividends paid		(242)		(220)
Other		(38)		(30)
Net cash provided by (used for) financing activities		(763)		403
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		(1)		(13)
Net Decrease in Cash, Cash Equivalents, and Restricted Cash		(246)		(292)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		3,956		4,015
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	3,710	$	3,723

See Condensed Notes to Interim Consolidated Financial Statements.

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Condensed Notes to Interim Consolidated Financial Statements (Unaudited)

(1) During the first quarter of 2020, the Company announced a broad voluntary employee-separation program for the U.S. salaried workforce that continues the efforts to create a more efficient organization structure and reduce operating costs. The program provided for cash payments based on years of service. The expense was recorded primarily in the period in which the employees irrevocably accepted the separation offer. The program’s total estimated pretax expenses are approximately $136 million, of which $127 million was recorded in the first quarter. The payments for the program were substantially made in the first quarter of 2020. Included in the total pretax expense is a non-cash charge of $21 million resulting from a curtailment in certain OPEB plans, which will be recorded outside of operating profit in “Other operating expense.” The first quarter 2020 expenses that are included in operating profit of $105 million are allocated 37 percent “Cost of sales,” 15 percent “Research and development,” and 48 percent “Selling, administrative and general.” In addition, the expenses are allocated 75 percent to the agriculture and turf operations, 23 percent to the construction and forestry operations, and 2 percent to the financial services operations. Annual savings from this program are estimated to be approximately $85 million with about  $65 million in 2020.

(2) Dividends declared and paid on a per share basis were as follows:

	Three Months Ended
	February 2		January 27
	2020		2019
Dividends declared	$	.76	$	.76
Dividends paid	$	.76	$	.69

(3) The calculation of basic net income per share is based on the average number of shares outstanding. The calculation of diluted net income per share recognizes any dilutive effect of share-based compensation.

(4) The consolidated financial statements represent the consolidation of all Deere & Company’s subsidiaries. In the supplemental consolidating data in Note 5 to the financial statements, “Equipment Operations” include the Company’s agriculture and turf operations and construction and forestry operations with “Financial Services” reflected on the equity basis.

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(5)  SUPPLEMENTAL CONSOLIDATING DATA

STATEMENT OF INCOME

For the Three Months Ended February 2, 2020 and January 27, 2019

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2020		2019		2020		2019
Net Sales and Revenues
Net sales	$	6,530	$	6,941
Finance and interest income		27		23	$	936	$	866
Other income		209		215		62		60
Total		6,766		7,179		998		926
Costs and Expenses
Cost of sales		5,078		5,432
Research and development expenses		425		407
Selling, administrative and general expenses		672		645		138		121
Interest expense		63		71		275		287
Interest compensation to Financial Services		64		69
Other operating expenses		72		71		408		325
Total		6,374		6,695		821		733
Income of Consolidated Group before Income Taxes		392		484		177		193
Provision for income taxes		9		144		41		40
Income of Consolidated Group		383		340		136		153
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services		137		154		1		1
Other		(2)		6
Total		135		160		1		1
Net Income		518		500		137		154
Less: Net income attributable to noncontrolling interests		1		2
Net Income Attributable to Deere & Company	$	517	$	498	$	137	$	154

* Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

17

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

CONDENSED BALANCE SHEET

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	February 2		November 3		January 27		February 2		November 3		January 27
	2020		2019		2019		2020		2019		2019
Assets
Cash and cash equivalents	$	2,862	$	3,175	$	2,671	$	740	$	682	$	955
Marketable securities		4		1		8		605		580		515
Receivables from unconsolidated subsidiaries and affiliates		1,425		2,017		274
Trade accounts and notes receivable - net		1,115		1,482		1,177		5,707		5,153		5,746
Financing receivables - net		130		65		102		27,164		29,130		25,048
Financing receivables securitized - net		42		44		67		4,436		4,339		4,496
Other receivables		1,252		1,376		1,485		131		116		184
Equipment on operating leases - net								7,504		7,567		6,904
Inventories		6,482		5,975		7,402
Property and equipment - net		5,857		5,929		5,739		43		44		46
Investments in unconsolidated subsidiaries and affiliates		5,317		5,326		5,175		17		16		16
Goodwill		2,945		2,917		3,048
Other intangible assets - net		1,349		1,380		1,507
Retirement benefits		871		836		1,291		58		58		57
Deferred income taxes		1,821		1,896		1,507		56		57		70
Other assets		1,546		1,158		1,241		818		741		593
Total Assets	$	33,018	$	33,577	$	32,694	$	47,279	$	48,483	$	44,630
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings	$	947	$	987	$	1,494	$	9,061	$	9,797	$	9,244
Short-term securitization borrowings		42		44		67		4,374		4,277		4,397
Payables to unconsolidated subsidiaries and affiliates		146		142		227		1,387		1,970		155
Accounts payable and accrued expenses		8,325		9,232		8,711		1,786		1,836		1,821
Deferred income taxes		408		414		470		546		568		798
Long-term borrowings		5,567		5,415		4,712		24,908		24,814		23,143
Retirement benefits and other liabilities		5,639		5,912		5,666		100		94		93
Total liabilities		21,074		22,146		21,347		42,162		43,356		39,651
Redeemable noncontrolling interest		14		14		14
Stockholders’ Equity
Total Deere & Company stockholders’ equity		11,926		11,413		11,328		5,117		5,127		4,979
Noncontrolling interests		4		4		5
Total stockholders’ equity		11,930		11,417		11,333		5,117		5,127		4,979
Total Liabilities and Stockholders’ Equity	$	33,018	$	33,577	$	32,694	$	47,279	$	48,483	$	44,630

* Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

18

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

STATEMENT OF CASH FLOWS

For the Three Months Ended February 2, 2020 and January 27, 2019

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2020		2019		2020		2019
Cash Flows from Operating Activities
Net income	$	518	$	500	$	137	$	154
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses		1		(1)		14		3
Provision for depreciation and amortization		261		260		311		276
Undistributed earnings of unconsolidated subsidiaries and affiliates		(11)		39		(1)
Credit for deferred income taxes		(7)		(31)		(22)		(25)
Changes in assets and liabilities:
Trade receivables and Equipment Operations' financing receivables		312		186
Inventories		(530)		(1,290)
Accounts payable and accrued expenses		(1,058)		(535)		(19)		(12)
Accrued income taxes payable/receivable		(43)		(429)		(10)		527
Retirement benefits		30		(6)		6		2
Other		147		(127)		30		47
Net cash provided by (used for) operating activities		(380)		(1,434)		446		972
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						6,056		5,885
Proceeds from maturities and sales of marketable securities				3		18		5
Proceeds from sales of equipment on operating leases						426		371
Cost of receivables acquired (excluding trade and wholesale)						(4,569)		(4,448)
Purchases of marketable securities				(2)		(34)		(30)
Purchases of property and equipment		(271)		(297)
Cost of equipment on operating leases acquired						(669)		(505)
Increase in trade and wholesale receivables						(382)		(1,021)
Other		(9)		(6)		11		26
Net cash provided by (used for) investing activities		(280)		(302)		857		283
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		20		88		(493)		388
Change in intercompany receivables/payables		572		1,526		(572)		(1,526)
Proceeds from long-term borrowings		167		91		1,535		2,120
Payments of long-term borrowings		(83)		(142)		(1,568)		(1,799)
Proceeds from issuance of common stock		53		51
Repurchases of common stock		(114)		(144)
Dividends paid		(242)		(220)		(125)		(200)
Other		(29)		(23)		(9)		(8)
Net cash provided by (used for) financing activities		344		1,227		(1,232)		(1,025)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		3		(12)		(4)		(1)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		(313)		(521)		67		229
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		3,196		3,202		760		813
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	2,883	$	2,681	$	827	$	1,042

* Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

19

EX-99.2

Exhibit 99.2

(Furnished herewith)

Deere & Company

Other Financial Information

For the Three Months Ended	Equipment Operations*						Agriculture and Turf						Construction and Forestry*
	February 2			January 27			February 2			January 27			February 2			January 27
Dollars in millions	2020			2019			2020			2019			2020			2019
Net Sales	$	6,530		$	6,941		$	4,486		$	4,681		$	2,044		$	2,260
Net Sales - excluding Roadbuilding	$	5,925		$	6,343		$	4,486		$	4,681		$	1,439		$	1,662
Average Identifiable Assets
With Inventories at LIFO	$	20,197		$	20,774		$	10,782		$	10,892		$	9,415		$	9,882
With Inventories at LIFO - excluding Roadbuilding	$	14,237		$	14,427		$	10,782		$	10,892		$	3,455		$	3,535
With Inventories at Standard Cost	$	21,615		$	22,140		$	11,932		$	11,993		$	9,683		$	10,147
With Inventories at Standard Cost - excluding Roadbuilding	$	15,655		$	15,793		$	11,932		$	11,993		$	3,723		$	3,800
Operating Profit	$	466		$	577		$	373		$	348		$	93		$	229
Operating Profit - excluding Roadbuilding	$	449		$	563		$	373		$	348		$	76		$	215
Percent of Net Sales - excluding Roadbuilding		7.6	%		8.9	%		8.3	%		7.4	%		5.3	%		12.9	%
Operating Return on Assets - excluding Roadbuilding
With Inventories at LIFO - excluding Roadbuilding		3.2	%		3.9	%		3.5	%		3.2	%		2.2	%		6.1	%
With Inventories at Standard Cost - excluding Roadbuilding		2.9	%		3.6	%		3.1	%		2.9	%		2.0	%		5.7	%
SVA Cost of Assets	$	(470)		$	(474)		$	(358)		$	(360)		$	(112)		$	(114)
SVA	$	(21)		$	89		$	15		$	(12)		$	(36)		$	101
For the Three Months Ended	Financial Services
	February 2			January 27
Dollars in millions	2020			2019
Net Income Attributable to Deere & Company	$	137		$	154
Average Equity	$	5,119		$	4,997
Return on Equity		2.7	%		3.1	%
Operating Profit	$	179		$	192
Cost of Equity	$	(166)		$	(156)
SVA	$	13		$	36
The Company evaluates its business results on the basis of accounting principles generally accepted in the United States. In addition, it uses a metric referred to as Shareholder Value Added (SVA), which management believes is an appropriate measure for the performance of its businesses. SVA is, in effect, the pretax profit left over after subtracting the cost of enterprise capital. The Company is aiming for a sustained creation of SVA and is using this metric for various performance goals. Certain compensation is also determined on the basis of performance using this measure. For purposes of determining SVA, each of the equipment segments is assessed a pretax cost of assets, which on an annual basis is approximately 12 percent of the segment’s average identifiable operating assets during the applicable period with inventory at standard cost. Management believes that valuing inventories at standard cost more closely approximates the current cost of inventory and the Company’s investment in the asset. The Financial Services segment is assessed an annual pretax cost of approximately 13 percent of the segment's average equity. The cost of assets or equity, as applicable, is deducted from the operating profit or added to the operating loss of each segment to determine the amount of SVA. * The results and assets related to the Company's Roadbuilding product line are excluded from the calculation of SVA to allow time for integration and assimilation of the 2017 acquisition of Wirtgen Group Holding GmbH's operations.

20

EX-99.3

Exhibit 99.3

1Q 2020 Earnings Call 21 February 2020 21

John Deere | 1Q20 Earnings Call | February 21, 2020 2 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance, acquisitions and divestitures of businesses, anticipated transaction costs, the integration of new businesses, anticipated benefits of acquisitions, and other factors that impact our businesses and customers. They also may include financial measures that are not in conformance with accounting principles generally accepted in the United States of America (GAAP). Words such as “forecast,” “projection,” “outlook,” “prospects,” “expected,” “estimated,” “will,” “plan,” “anticipate,” “intend,” “believe,” or other similar words or phrases often identify forward-looking statements. Actual results may differ materially from those projected in these forward-looking statements based on a number of factors and uncertainties. Additional information concerning factors that could cause actual results to differ materially is contained in the company’s most recent Form 8-K and periodic report filed with the U.S. Securities and Exchange Commission, and is incorporated by reference herein. Investors should refer to and consider the incorporated information on risks and uncertainties in addition to the information presented here. The company, except as required by law, undertakes no obligation to update or revise its forward- looking statements whether as a result of new developments or otherwise. The call and accompanying materials are not an offer to sell or a solicitation of offers to buy any of the company’s securities. 22

John Deere | 1Q20 Earnings Call | February 21, 2020 3 1Q 2020 Results ($ millions except where noted) $7,984 $7,631 1Q 2019 1Q 2020 $6,941 $6,530 1Q 2019 1Q 2020 $498 $517 1Q 2019 1Q 2020 $1.54 $1.63 1Q 2019 1Q 2020 6% 4% Net Sales & Revenues Net Sales (Equipment Operations) Net Income (attributable to Deere & Company) Diluted EPS ($ per share) 6% 4% 23

John Deere | 1Q20 Earnings Call | February 21, 2020 4 Worldwide Agriculture & Turf 1Q 2020 Results $ in millions $4,681 $4,486 1Q 2019 1Q 2020 Net Sales 4% $373 ($115)($78)($26) $348 $132 $13 $30 $65 $4 1Q19 Volume/ Mix Price Currency Warranty Production Costs SA&G/ R&D Voluntary Separation Other 1Q20 Operating Profit Comparison 24

John Deere | 1Q20 Earnings Call | February 21, 2020 5 Regional Ag Commentary MARKET ACCESS FUNDAMENTALS AG INDUSTRY SENTIMENT MARKET DYNAMICS – Deere large ag inventory below industry – Used equipment pricing/inventory stable – Canadian industry still weak – Improved sentiment w/ ↑ market access – U.S. farm cash receipts expected ↑ – Receipts enhanced by 3rd tranche of MFP – Canada farm income ↑, but ↓ average – Signed phase I US/China trade agreement – Passage of USMCA provides clarity – Trade barriers in Canada persist North America 25

John Deere | 1Q20 Earnings Call | February 21, 2020 6 Regional Ag Commentary FUNDAMENTALS FUNDAMENTALS MARKET DYNAMICS MARKET DYNAMICS South America Europe – Farmer confidence muted – Deere optimizing operations in region – Equipment demand off to slow start – Further clarity on financing – Argentina sentiment subdued – Fundamentals mostly stable – Recovery continues post drought – Strong dairy & pork prices – Record soybean harvest in Brazil – Improving sugar prices – Brazilian Real weak, margins ↑ 26

John Deere | 1Q20 Earnings Call | February 21, 2020 7 Agriculture & Turf Industry Outlook – FY20 Source: Deere & Company forecast as of 21 February 2020 U.S. AND CANADA AG EUROPE AG SOUTH AMERICA AG (tractors and combines) ASIA AG U.S. & CANADA TURF & UTILITY ~5% ~Flat ~Flat ~Flat ~Flat 27

John Deere | 1Q20 Earnings Call | February 21, 2020 8 Worldwide Agriculture & Turf Divisional Outlook $23,666 FY2019 FY2020 Fcst 5%-10% NET SALES 10.5%-11.5% OPERATING MARGIN Source: Deere & Company forecast as of 21 February 2020 10.6% FY2019 FY2020 Fcst 28

John Deere | 1Q20 Earnings Call | February 21, 2020 9 Worldwide Construction & Forestry 1Q 2020 Results $ in millions $2,260 $2,044 1Q 2019 1Q 2020 Net Sales 10% $93 ($118)($11)($1)($5)($24) $229 $15 $5 $3 1Q19 Volume/ Mix Price Currency Warranty Production Costs SA&G/ R&D Voluntary Separation Other 1Q20 Operating Profit Comparison 29

John Deere | 1Q20 Earnings Call | February 21, 2020 10 Construction & Forestry Industry Outlook Source: Deere & Company forecast as of 21 February 2020 NORTH AMERICAN CONSTRUCTION EQUIPMENT GLOBAL FORESTRY ~5-10% ~5-10% 30

John Deere | 1Q20 Earnings Call | February 21, 2020 11 Worldwide Construction & Forestry Divisional Outlook Source: Deere & Company forecast as of 21 February 2020 $11,220 FY2019 FY2020 Fcst 10%-15% NET SALES 9.5%-10.5% OPERATING MARGIN 10.8% FY2019 FY2020 Fcst 31

John Deere | 1Q20 Earnings Call | February 21, 2020 12 Worldwide Financial Services Net Income - 1Q20 Results and Outlook Source: Deere & Company forecast as of 21 February 2020 $154 $137 1Q19 1Q20 ACTUAL 1Q20 FY2020 FORECAST $539 $600 FY2019 FY2020 Fcst 32

John Deere | 1Q20 Earnings Call | February 21, 2020 13 Deere & Company Outlook Effective Tax Rate* Net Income (attributable to Deere & Co.) 22-24% $2.7-3.1B FY20 FORECAST Net Operating Cash Flow* $3.1-3.5B *Equipment Operations Source: Deere & Company forecast as of 21 February 2020 33

John Deere | 1Q20 Earnings Call | February 21, 2020 14 Appendix 34

John Deere | 1Q20 Earnings Call | February 21, 2020 15 ($ millions) 1Q20 Fiscal 2020 Forecast COS (percent of Net Sales)* 78% ~76% SA&G* 4% ~2% Research and Development* 5% ~ 2% Capital Expenditures ~ $1,100 Pension/OPEB Expense ~ $90 Pension/OPEB Contributions ~ $530 Other Financial Information Equipment Operations *As reported (including Voluntary Separation Expense) Source: Deere & Company forecast as of 21 February 2020 35

John Deere | 1Q20 Earnings Call | February 21, 2020 16 Share Repurchase As Part of Publicly Announced Plans * All shares adjusted for two-for-one stock split effective 26 November 2007 1Q 2020: Cost of repurchases $99.0 million Shares repurchased 0.6 million 2004–1Q 2020: Cumulative cost of repurchases $18.7 billion Shares repurchased 260.0 million December 2013 authorization of $8 billion: Amount remaining $1.0 billion December 2019 authorization of $8 billion: Amount remaining $8.0 billion Shares outstanding: 2 February 2020 period ended basic shares 313.6 million 1Q 2020 average diluted shares 317.2 million $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 0 10 20 30 40 2004 2006 2008 2010 2012 2014 2016 2018 2020 $ Billions Millions of Shares* Shares Repurchased Amount Spent 37% net share reduction since 2004 36

John Deere | 1Q20 Earnings Call | February 21, 2020 17 January 2020 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 5% In line with the industry 2WD Tractors (40 < 100 PTO hp) 3% Low double digits 2WD Tractors (100+ PTO hp) 4% In line with the industry 4WD Tractors 15% More than the industry Combines 13% More than the industry Deere Dealer Inventories*** U.S. and Canada Ag 2020 2019 2WD Tractors (100+ PTO hp) 31% 38% Combines 15% 19% * As reported by the Association of Equipment Manufacturers ** As reported to the Association of Equipment Manufacturers *** In units as a % of trailing 12 months retail sales, as reported to the Association of Equipment Manufacturers 37

John Deere | 1Q20 Earnings Call | February 21, 2020 18 Retail Sales U.S. and Canada Deere* Selected Turf & Utility Equipment Flat Construction & Forestry First-in-the-Dirt Settlements Low single digit Single digit January 2020 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors Low double digits Combines Double digits * Based on internal sales reports 38

John Deere | 1Q20 Earnings Call | February 21, 2020 19 U.S. Farm Cash Receipts $0 $100 $200 $300 $400 $500 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020F $ Billions Crops Livestock Government Payments USDA Aid* *USDA Aid includes partial MFP1 and two tranches of MFP2 Note: USDA announced a trade retaliation relief package $16B in 2019. The $16B package includes $14.5B direct payment via Market Facilitation Program (MFP) which was distributed in three separate tranches; 1st tranche Aug 2019, 2nd tranche Nov 2019 and 3rd tranche Feb 2020. Source: 2001–2018: USDA, 5 February 2020 2019F–2020F: Deere & Company forecast as of 21 February 2020 39

John Deere | 1Q20 Earnings Call | February 21, 2020 20 40

John Deere | 1Q20 Earnings Call | February 21, 2020 21 Deere & Company’s 2Q 2020 earnings call is scheduled for 9:00 a.m. central time on Friday, 22 May 2020. 41

42

XML

Document and Entity Information	Feb. 21, 2020
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Feb. 21, 2020
Entity File Number	1-4121
Entity Registrant Name	DEERE & CO
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-2382580
Entity Address, Address Line One	One John Deere Place
Entity Address, City or Town	Moline
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	61265
City Area Code	309
Local Phone Number	765-8000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0000315189
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common stock, $1 par value
Trading Symbol	DE
Security Exchange Name	NYSE
8-1/2% Debentures Due 2022
Document Information [Line Items]
Title of 12(b) Security	8½% Debentures Due 2022
Trading Symbol	DE22
Security Exchange Name	NYSE
6.55% Debentures Due 2028
Document Information [Line Items]
Title of 12(b) Security	6.55% Debentures Due 2028
Trading Symbol	DE28
Security Exchange Name	NYSE