XML 76 R15.htm IDEA: XBRL DOCUMENT
v3.24.3

INCOME TAXES | 12 Months Ended
--- | ---
Oct. 27, 2024
INCOME TAXES |
INCOME TAXES | 8. INCOME TAXES We are subject to income taxes in a number of jurisdictions. We determine our income tax provision using the asset and liability method. The provision for income taxes by taxing jurisdiction and by significant component consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2024 |  | 2023 |  | 2022 |
Current: | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
U.S.: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 1,253 | ​ | $ | 1,803 | ​ | $ | 514 | ​
State | ​ |  | 257 | ​ |  | 386 | ​ |  | 136 | ​
Foreign | ​ |  | 878 | ​ |  | 1,472 | ​ |  | 1,423 | ​
Total current | ​ |  | 2,388 | ​ |  | 3,661 | ​ |  | 2,073 | ​
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S.: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ |  | (326) | ​ |  | (485) | ​ |  | 29 | ​
State | ​ |  | (29) | ​ |  | (65) | ​ |  | 24 | ​
Foreign | ​ |  | 61 | ​ |  | (240) | ​ |  | (119) | ​
Total deferred | ​ |  | (294) | ​ |  | (790) | ​ |  | (66) | ​
Provision for income taxes | ​ | $ | 2,094 | ​ | $ | 2,871 | ​ | $ | 2,007 | ​
​ Based upon the location of our operations, the consolidated income before income taxes in the U.S. in 2024, 2023, and 2022 was $5.9 billion, $7.8 billion, and $5.0 billion, respectively, and in foreign countries was $3.3 billion, $5.2 billion, and $4.1 billion, respectively. Certain foreign operations are branches or partnerships of Deere & Company and are subject to U.S. as well as foreign income tax regulations. The pretax income by location and the preceding analysis of the income tax provision by taxing jurisdiction are not directly related. A comparison of the statutory and effective income tax provision and reasons for related differences follow: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2024 |  | 2023 |  | 2022 |
U.S. federal income tax provision at the U.S. statutory rate (21 percent) | ​ | $ | 1,933 | ​ | $ | 2,734 | ​ | $ | 1,917 | ​
State and local taxes, net of federal effect | ​ | ​ | 179 | ​ | ​ | 266 | ​ | ​ | 133 | ​
Other impacts of Tax Cuts and Jobs Act of 2017 | ​ | ​ | (60) | ​ | ​ | (58) | ​ | ​ | (29) | ​
Rate differential on foreign subsidiaries | ​ |  | 89 | ​ |  | 142 | ​ |  | 121 | ​
Research and business tax credits | ​ |  | (99) | ​ |  | (107) | ​ |  | (65) | ​
Excess tax benefits on equity compensation | ​ | ​ | (35) | ​ | ​ | (49) | ​ | ​ | (55) | ​
Valuation allowances | ​ |  | (46) | ​ |  | 9 | ​ |  | 179 | ​
Unrecognized tax benefits | ​ | ​ | 70 | ​ |  | 4 | ​ |  | 93 | ​
Other – net | ​ |  | 63 | ​ | ​ | (70) | ​ | ​ | (287) | ​
Provision for income taxes | ​ | $ | 2,094 | ​ | $ | 2,871 | ​ | $ | 2,007 | ​
​ At October 27, 2024, undistributed profits of subsidiaries outside the U.S. of approximately $6.0 billion are considered indefinitely reinvested. Determination of the amount of a foreign withholding tax liability on these unremitted earnings is not practicable. Deferred income taxes arise because there are certain items that are treated differently for financial accounting than for income tax reporting purposes. An analysis of the deferred income tax assets and liabilities at October 27, 2024 and October 29, 2023 follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2024 | ​ | 2023 | ​
​ | ​ | Deferred | ​ | Deferred | ​ | Deferred | ​ | Deferred | ​
​ | ​ | Tax | ​ | Tax | ​ | Tax | ​ | Tax | ​
​ |  | Assets |  | Liabilities |  | Assets |  | Liabilities |
Accrual for employee benefits | ​ | $ | 362 | ​ | ​ | ​ | ​ | $ | 439 | ​ | ​ | ​ | ​
Accrual for sales allowances | ​ |  | 847 | ​ | ​ | ​ | ​ |  | 884 | ​ | ​ | ​ | ​
Allowance for credit losses | ​ |  | 93 | ​ | ​ | ​ | ​ |  | 79 | ​ | ​ | ​ | ​
Amortization of R&D expenditures | ​ | ​ | 925 | ​ | ​ | ​ | ​ | ​ | 492 | ​ | ​ | ​ | ​
Deferred compensation | ​ |  | 52 | ​ | ​ | ​ | ​ |  | 45 | ​ | ​ | ​ | ​
Goodwill and other intangible assets | ​ | ​ | ​ | ​ | $ | 107 | ​ | ​ | ​ | ​ | $ | 166 | ​
Lessee lease transactions | ​ | ​ | 73 | ​ | ​ | 69 | ​ | ​ | 68 | ​ | ​ | 61 | ​
Lessor lease transactions | ​ | ​ | ​ | ​ | ​ | 449 | ​ | ​ | ​ | ​ | ​ | 581 | ​
OPEB – net | ​ | ​ | 256 | ​ | ​ | ​ | ​ | ​ | 193 | ​ | ​ | ​ | ​
Pension – net | ​ |  | ​ | ​ | ​ | 394 | ​ |  | ​ | ​ | ​ | 424 | ​
Share-based compensation | ​ |  | 50 | ​ | ​ | ​ | ​ |  | 38 | ​ | ​ | ​ | ​
Tax loss and tax credit carryforwards | ​ |  | 1,564 | ​ | ​ | ​ | ​ |  | 1,518 | ​ | ​ | ​ | ​
Tax over book depreciation | ​ | ​ | ​ | ​ | ​ | 195 | ​ | ​ | ​ | ​ | ​ | 198 | ​
Unearned revenue | ​ | ​ | 174 | ​ |  | ​ | ​ | ​ | 177 | ​ |  | ​ | ​
Other items | ​ |  | 337 | ​ |  | 313 | ​ |  | 681 | ​ |  | 278 | ​
Less: valuation allowances | ​ |  | (1,598) | ​ | ​ | ​ | ​ |  | (1,612) | ​ | ​ | ​ | ​
Total | ​ | $ | 3,135 | ​ | $ | 1,527 | ​ | $ | 3,002 | ​ | $ | 1,708 | ​
​ Deere & Company files a consolidated federal income tax return in the U.S., which includes the wholly-owned financial services subsidiaries. These subsidiaries account for income taxes as if they filed separate income tax returns, with a modification for realizability of certain tax benefits. At October 27, 2024, tax loss and tax credit carryforwards of $1,564 were available with $1,063 expiring from 2025 through 2044 and $501 with an indefinite carryforward period. ​ A reconciliation of unrecognized tax benefits at October 27, 2024, October 29, 2023, and October 30, 2022 follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2024 |  | 2023 |  | 2022 |
Beginning of year balance | ​ | $ | 907 | ​ | $ | 891 | ​ | $ | 811 | ​
Increases to tax positions taken during the current year | ​ |  | 59 | ​ |  | 68 | ​ |  | 98 | ​
Increases to tax positions taken during prior years | ​ |  | 68 | ​ |  | 164 | ​ |  | 29 | ​
Decreases to tax positions taken during the current year | ​ | ​ | (2) | ​ | ​ | (3) | ​ | ​ | ​ | ​
Decreases to tax positions taken during prior years | ​ |  | (99) | ​ |  | (209) | ​ |  | (18) | ​
Decreases due to lapse of statute of limitations | ​ |  | (7) | ​ |  | (10) | ​ |  | (7) | ​
Other | ​ | ​ | (1) | ​ | ​ | (4) | ​ | ​ | 2 | ​
Foreign exchange | ​ |  | 3 | ​ |  | 10 | ​ |  | (24) | ​
End of year balance | ​ | $ | 928 | ​ | $ | 907 | ​ | $ | 891 | ​
​ The amount of unrecognized tax benefits at October 27, 2024 and October 29, 2023 that would impact the effective tax rate if the tax benefits were recognized was $410 and $329, respectively. The remaining liability was related to tax positions for which there are offsetting tax receivables, or the uncertainty was only related to timing. We expect that any reasonably possible change in the amounts of unrecognized tax benefits in the next twelve months would not be significant. We file our tax returns according to the tax laws of the jurisdictions in which we operate, which includes the U.S. federal jurisdiction and various state and foreign jurisdictions. The U.S. Internal Revenue Service (IRS) has completed the examination of our federal income tax returns for periods prior to 2015. The federal income tax returns for years 2015 to 2020 are currently under examination. Various state and foreign income tax returns also remain subject to examination by taxing authorities.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration