REVENUE RECOGNITION

3 Months Ended

Jan. 29, 2023

REVENUE RECOGNITION

REVENUE RECOGNITION

(3)  Revenue Recognition

The Company’s net sales and revenues by primary geographic market, major product line, and timing of revenue recognition in millions of dollars follow:

	Three Months Ended January 29, 2023
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	2,628	$	1,665	$	1,901	$	713	$	6,907
Canada		360		146		275		150		931
Western Europe		501		564		365		29		1,459
Central Europe and CIS		202		123		75		12		412
Latin America		1,237		156		339		95		1,827
Asia, Africa, Oceania, and Middle East		375		400		300		41		1,116
Total	$	5,303	$	3,054	$	3,255	$	1,040	$	12,652
Major product lines:
Production agriculture	$	5,112							$	5,112
Small agriculture			$	2,194						2,194
Turf				719						719
Construction					$	1,483				1,483
Compact construction						473				473
Roadbuilding						818				818
Forestry						356				356
Financial products		31		18		13	$	1,040		1,102
Other		160		123		112				395
Total	$	5,303	$	3,054	$	3,255	$	1,040	$	12,652
Revenue recognized:
At a point in time	$	5,248	$	3,029	$	3,230	$	23	$	11,530
Over time		55		25		25		1,017		1,122
Total	$	5,303	$	3,054	$	3,255	$	1,040	$	12,652

	Three Months Ended January 30, 2022
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	1,608	$	1,438	$	1,260	$	573	$	4,879
Canada		139		122		332		152		745
Western Europe		467		532		358		26		1,383
Central Europe and CIS		202		126		195		11		534
Latin America		776		104		228		68		1,176
Asia, Africa, Oceania, and Middle East		241		352		219		40		852
Total	$	3,433	$	2,674	$	2,592	$	870	$	9,569
Major product lines:
Production agriculture	$	3,283							$	3,283
Small agriculture			$	1,932						1,932
Turf				627						627
Construction					$	1,175				1,175
Compact construction						321				321
Roadbuilding						692				692
Forestry						305				305
Financial products		12		11		5	$	870		898
Other		138		104		94				336
Total	$	3,433	$	2,674	$	2,592	$	870	$	9,569
Revenue recognized:
At a point in time	$	3,396	$	2,654	$	2,570	$	24	$	8,644
Over time		37		20		22		846		925
Total	$	3,433	$	2,674	$	2,592	$	870	$	9,569

The Company invoices in advance of recognizing the sale of certain products and the revenue for certain services. These relate to extended warranty premiums, advance payments for future equipment sales, and subscription and service revenue related to precision guidance and telematic services. These advanced customer payments are presented as deferred revenue, a contract liability, in “Accounts payable and accrued expenses” in the consolidated balance sheets. The deferred revenue received, but not recognized in revenue, including extended warranty premiums also shown in Note 16, was $1,502 million, $1,423 million, and $1,348 million at January 29, 2023, October 30, 2022, and January 30, 2022, respectively. The contract liability is reduced as the revenue is recognized. During the three months ended January 29, 2023 and January 30, 2022, $215 million and $265 million, respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $1,282 million at January 29, 2023. The estimated revenue to be recognized by fiscal year in millions of dollars follows: remainder of 2023 - $278, 2024 - $332, 2025 - $260, 2026 - $168, 2027 - $100, 2028 - $61, and later years - $83. As permitted, the Company elected only to disclose remaining performance obligations with an original contract duration greater than one year. The contracts with an expected duration of one year or less are for sales of equipment, service parts, repair services, and certain telematics services.