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REVENUE RECOGNITION
 3 Months Ended
Jan. 30, 2022
REVENUE RECOGNITION  
REVENUE RECOGNITION

(4)  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 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, Australia, New Zealand, 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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended January 31, 2021

​

​

​

Production & Precision Ag

​

Small Ag & Turf

​

Construction & Forestry

​

Financial Services

​

Total

​

Primary geographic markets:

 

​

​

 

​

​

 

​

​

 

​

             

 

​

             

​

United States

​

$

1,608

​

$

1,424

​

$

1,202

​

$

598

​

$

4,832

​

Canada

​

​

112

​

​

79

​

​

188

​

 

154

​

 

533

​

Western Europe

​

​

449

​

​

486

​

​

439

​

 

24

​

 

1,398

​

Central Europe and CIS

​

​

161

​

​

84

​

​

178

​

 

9

​

 

432

​

Latin America

​

​

513

​

​

77

​

​

170

​

 

59

​

 

819

​

Asia, Africa, Australia, New Zealand, and Middle East

​

​

304

​

​

401

​

​

353

​

​

40

​

​

1,098

​

Total

​

$

3,147

​

$

2,551

​

$

2,530

​

$

884

​

$

9,112

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Major product lines:

​

​

​

​

​

​

​

​

​

​

​

             

​

​

             

​

Production agriculture

​

$

3,011

​

​

​

​

​

​

​

​

​

​

$

3,011

​

Small agriculture

​

​

​

​

$

1,812

​

​

​

​

 

​

​

 

1,812

​

Turf

​

​

​

​

​

651

​

​

​

​

 

​

​

 

651

​

Construction

​

​

​

​

​

​

​

$

887

​

 

​

​

 

887

​

Compact construction

​

​

​

​

​

​

​

​

346

​

​

​

​

​

346

​

Roadbuilding

​

​

​

​

​

​

​

​

910

​

 

​

​

 

910

​

Forestry

​

​

​

​

​

​

​

​

290

​

 

​

​

 

290

​

Financial products

​

​

16

​

​

10

​

​

7

​

$

884

​

 

917

​

Other

​

​

120

​

​

78

​

​

90

​

 

​

​

 

288

​

Total

​

$

3,147

​

$

2,551

​

$

2,530

​

$

884

​

$

9,112

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenue recognized:

​

​

​

​

​

​

​

​

​

​

​

             

​

​

             

​

At a point in time

​

$

3,105

​

$

2,535

​

$

2,500

​

$

24

​

$

8,164

​

Over time

​

​

42

​

​

16

​

​

30

​

​

860

​

​

948

​

Total

​

$

3,147

​

$

2,551

​

$

2,530

​

$

884

​

$

9,112

​

​

Following is a description of the Company’s 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 and 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 primarily 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; 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”; and 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.”

The Company invoices in advance of recognizing the sale of certain products and the revenue for certain services. These items are primarily for premiums for extended warranties, 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 sheet. The deferred revenue received, but not recognized in revenue, including extended warranty premiums also shown in Note 16, was $1,348 million, $1,344 million, and $1,169 million at January 30, 2022, October 31, 2021, and January 31, 2021, respectively. The contract liability is reduced as the revenue is recognized. During the three months ended January 30, 2022 and January 31, 2021, $265 million and $223 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 $1,056 million at January 30, 2022. The estimated revenue to be recognized by fiscal year in millions of dollars follows: remainder of 2022 - $219, 2023 - $297, 2024 - $232, 2025 - $143, 2026 - $72, 2027 - $40 and later years - $53. 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 generally for sales of equipment, service parts, repair services, and certain telematics services.