REVENUE RECOGNITION

6 Months Ended

Apr. 28, 2024

(3) Revenue Recognition

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


	Three Months Ended April 28, 2024
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	3,881	$	1,842	$	2,500	$	996	$	9,219
Canada		600		167		242		175		1,184
Western Europe		659		688		470		40		1,857
Central Europe and CIS		275		80		91		8		454
Latin America		850		103		334		122		1,409
Asia, Africa, Oceania, and Middle East		414		373		271		54		1,112
Total	$	6,679	$	3,253	$	3,908	$	1,395	$	15,235

Major product lines:
Production agriculture	$	6,507							$	6,507
Small agriculture			$	2,098						2,098
Turf				1,017						1,017
Construction					$	1,736				1,736
Compact construction						695				695
Roadbuilding						1,080				1,080
Forestry						271				271
Financial products		39		32		17	$	1,395		1,483
Other		133		106		109				348
Total	$	6,679	$	3,253	$	3,908	$	1,395	$	15,235

Revenue recognized:
At a point in time	$	6,609	$	3,213	$	3,882	$	35	$	13,739
Over time		70		40		26		1,360		1,496
Total	$	6,679	$	3,253	$	3,908	$	1,395	$	15,235

	Six Months Ended April 28, 2024
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	6,602	$	3,187	$	4,596	$	1,965	$	16,350
Canada		986		285		452		347		2,070
Western Europe		1,162		1,205		831		80		3,278
Central Europe and CIS		454		153		185		16		808
Latin America		1,669		201		590		252		2,712
Asia, Africa, Oceania, and Middle East		849		714		529		110		2,202
Total	$	11,722	$	5,745	$	7,183	$	2,770	$	27,420

Major product lines:
Production agriculture	$	11,298							$	11,298
Small agriculture			$	3,816						3,816
Turf				1,666						1,666
Construction					$	3,220				3,220
Compact construction						1,321				1,321
Roadbuilding						1,843				1,843
Forestry						563				563
Financial products		99		58		35	$	2,770		2,962
Other		325		205		201				731
Total	$	11,722	$	5,745	$	7,183	$	2,770	$	27,420

Revenue recognized:
At a point in time	$	11,564	$	5,669	$	7,126	$	62	$	24,421
Over time		158		76		57		2,708		2,999
Total	$	11,722	$	5,745	$	7,183	$	2,770	$	27,420


	Three Months Ended April 30, 2023
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	4,058	$	2,241	$	2,561	$	766	$	9,626
Canada		546		189		302		153		1,190
Western Europe		758		888		492		31		2,169
Central Europe and CIS		393		212		90		8		703
Latin America		1,543		201		388		106		2,238
Asia, Africa, Oceania, and Middle East		614		469		335		43		1,461
Total	$	7,912	$	4,200	$	4,168	$	1,107	$	17,387

Major product lines:
Production agriculture	$	7,733							$	7,733
Small agriculture			$	2,952						2,952
Turf				1,099						1,099
Construction					$	1,813				1,813
Compact construction						663				663
Roadbuilding						1,134				1,134
Forestry						429				429
Financial products		29		20		12	$	1,107		1,168
Other		150		129		117				396
Total	$	7,912	$	4,200	$	4,168	$	1,107	$	17,387

Revenue recognized:
At a point in time	$	7,861	$	4,171	$	4,146	$	27	$	16,205
Over time		51		29		22		1,080		1,182
Total	$	7,912	$	4,200	$	4,168	$	1,107	$	17,387


	Six Months Ended April 30, 2023
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	6,686	$	3,906	$	4,461	$	1,479	$	16,532
Canada		906		335		577		303		2,121
Western Europe		1,259		1,452		857		60		3,628
Central Europe and CIS		595		335		165		20		1,115
Latin America		2,780		357		727		201		4,065
Asia, Africa, Oceania, and Middle East		989		869		635		84		2,577
Total	$	13,215	$	7,254	$	7,422	$	2,147	$	30,038

Major product lines:
Production agriculture	$	12,845							$	12,845
Small agriculture			$	5,146						5,146
Turf				1,818						1,818
Construction					$	3,295				3,295
Compact construction						1,136				1,136
Roadbuilding						1,952				1,952
Forestry						785				785
Financial products		60		38		25	$	2,147		2,270
Other		310		252		229				791
Total	$	13,215	$	7,254	$	7,422	$	2,147	$	30,038

Revenue recognized:
At a point in time	$	13,109	$	7,200	$	7,375	$	50	$	27,734
Over time		106		54		47		2,097		2,304
Total	$	13,215	$	7,254	$	7,422	$	2,147	$	30,038

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 $1,911, $1,697, and $1,622 at April 28, 2024, October 29, 2023, and April 30, 2023, respectively. The contract liability is reduced as the revenue is recognized. During the three months ended April 28, 2024 and April 30, 2023, $128 and $129, respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year. During the six months ended April 28, 2024 and April 30, 2023, $358 and $343, 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 was $1,633 at April 28, 2024. The estimated revenue to be recognized by fiscal year follows: remainder of 2024 – $297, 2025 – $438, 2026 – $352, 2027 – $224, 2028 – $137, 2029 – $97, and later years – $88. 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.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details