REVENUE RECOGNITION

12 Months Ended

Oct. 29, 2023

REVENUE RECOGNITION

REVENUE RECOGNITION

5. REVENUE RECOGNITION

Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow:

	PPA		SAT		CF		FS		Total
2023
Primary geographic markets:
United States	$	13,917	$	7,796	$	9,109	$	3,283	$	34,105
Canada		1,738		687		1,221		641		4,287
Western Europe		2,640		2,824		1,725		132		7,321
Central Europe and CIS		1,218		530		353		36		2,137
Latin America		5,608		707		1,429		453		8,197
Asia, Africa, Oceania, and Middle East		2,166		1,679		1,183		176		5,204
Total	$	27,287	$	14,223	$	15,020	$	4,721	$	61,251
Major product lines:
Production agriculture	$	26,450							$	26,450
Small agriculture			$	10,122						10,122
Turf				3,505						3,505
Construction					$	6,842				6,842
Compact construction						2,451				2,451
Roadbuilding						3,794				3,794
Forestry						1,429				1,429
Financial products		219		96		58	$	4,721		5,094
Other		618		500		446				1,564
Total	$	27,287	$	14,223	$	15,020	$	4,721	$	61,251
Revenue recognized:
At a point in time	$	26,969	$	14,092	$	14,915	$	111	$	56,087
Over time		318		131		105		4,610		5,164
Total	$	27,287	$	14,223	$	15,020	$	4,721	$	61,251

	PPA		SAT		CF		FS		Total
2022
Primary geographic markets:
United States	$	10,975	$	7,741	$	7,103	$	2,419	$	28,238
Canada		1,387		676		1,238		601		3,902
Western Europe		2,188		2,478		1,576		102		6,344
Central Europe and CIS		1,207		488		545		49		2,289
Latin America		4,991		578		1,467		303		7,339
Asia, Africa, Oceania, and Middle East		1,570		1,608		1,136		151		4,465
Total	$	22,318	$	13,569	$	13,065	$	3,625	$	52,577
Major product lines:
Production agriculture	$	21,685							$	21,685
Small agriculture			$	10,027						10,027
Turf				3,027						3,027
Construction					$	5,864				5,864
Compact construction						1,667				1,667
Roadbuilding						3,441				3,441
Forestry						1,308				1,308
Financial products		60		52		32	$	3,625		3,769
Other		573		463		753				1,789
Total	$	22,318	$	13,569	$	13,065	$	3,625	$	52,577
Revenue recognized:
At a point in time	$	22,178	$	13,493	$	12,980	$	105	$	48,756
Over time		140		76		85		3,520		3,821
Total	$	22,318	$	13,569	$	13,065	$	3,625	$	52,577

	PPA		SAT		CF		FS		Total
2021
Primary geographic markets:
United States	$	8,223	$	6,505	$	5,697	$	2,389	$	22,814
Canada		853		498		1,047		617		3,015
Western Europe		2,086		2,433		1,807		103		6,429
Central Europe and CIS		1,322		475		828		39		2,664
Latin America		2,916		456		903		247		4,522
Asia, Africa, Oceania, and Middle East		1,417		1,679		1,331		153		4,580
Total	$	16,817	$	12,046	$	11,613	$	3,548	$	44,024
Major product lines:
Production agriculture	$	16,248							$	16,248
Small agriculture			$	8,619						8,619
Turf				2,853						2,853
Construction					$	4,684				4,684
Compact construction						1,489				1,489
Roadbuilding						3,749				3,749
Forestry						1,280				1,280
Financial products		55		46		20	$	3,548		3,669
Other		514		528		391				1,433
Total	$	16,817	$	12,046	$	11,613	$	3,548	$	44,024
Revenue recognized:
At a point in time	$	16,659	$	11,969	$	11,522	$	105	$	40,255
Over time		158		77		91		3,443		3,769
Total	$	16,817	$	12,046	$	11,613	$	3,548	$	44,024

Following is a description of the elements of net sales and revenues for our major product lines:

Production Agriculture – Includes net sales of large and certain mid-size tractors and associated attachments, combines, cotton pickers, cotton strippers, sugarcane harvesters, sugarcane loaders and pull behind scrapers, tillage, seeding, and application equipment, including sprayers and nutrient management and soil preparation machinery, and related attachments and service parts.

Small Agriculture – Includes net sales of mid-size, utility, and compact utility tractors, self-propelled forage harvesters, hay and forage equipment, balers, mowers, and related attachments and service parts.

Turf – Includes net sales of turf and utility equipment, including riding lawn equipment, golf course equipment, utility vehicles, and commercial mowing equipment, along with a broad line of associated implements, other outdoor power products, and related attachments and service parts.

Construction – Includes net sales of a broad range of machines used in construction, earthmoving, and material handling, including backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, and related attachments and service parts.

Compact Construction – Includes net sales of smaller construction equipment, including compact excavators, compact track loaders, compact wheel loaders, skid steers, landscape loaders, and related attachments and service parts.

Roadbuilding – Includes net sales of equipment used in roadbuilding and renovation, including milling machines, recyclers, slipform pavers, surface miners, asphalt pavers, compactors, tandem and static rollers, mobile crushers and screens, mobile and stationary asphalt plants, and related attachments and service parts.

Forestry – Includes net sales of equipment used in timber harvesting, including log skidders, feller bunchers, log loaders, log forwarders, log harvesters, and related attachments and service parts.

Financial Products – Includes finance and interest income from retail notes related to sales of John Deere equipment to retail customers, wholesale financing to dealers of John Deere equipment, and revolving charge accounts; lease income from retail leases of John Deere equipment; and revenue from extended warranties.

Other – Includes sales of components to other equipment manufacturers that are included in “Net sales;” revenue earned over time from precision guidance, telematics, and other information enabled solutions; revenue from service performed at company owned dealerships and service centers; gains on disposition of property and businesses; trademark licensing revenue; and other miscellaneous revenue items that are included in “Other income.”

We invoice 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, telematic services, and other information enabled solutions. These advanced customer payments are presented as deferred revenue, a contract liability, in “Accounts payable and accrued expenses.” The deferred revenue received, but not recognized in revenue was $1,697 and $1,423 at October 29, 2023 and October 30, 2022, respectively. The contract liability is reduced as the revenue is recognized. Revenue recognized from deferred revenue that was recorded as a contract liability at the beginning of the fiscal year was $547 in 2023, $609 in 2022, and $485 in 2021.

The total amount of unsatisfied performance obligations for contracts with an original duration greater than one year and the estimated revenue to be recognized by fiscal year at October 29, 2023 follows:

Year	Net Sales and Revenues
2024	$	457
2025		382
2026		268
2027		161
2028		97
Later years		126
Total	$	1,491

As permitted, we 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 to dealers and retail customers for equipment, service parts, repair services, and certain telematics services.