REVENUE RECOGNITION

9 Months Ended

Jul. 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 July 28, 2024
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	2,839	$	1,824	$	1,967	$	1,076	$	7,706
Canada		489		207		183		191		1,070
Western Europe		522		542		432		64		1,560
Central Europe and CIS		201		70		106		12		389
Latin America		841		125		305		94		1,365
Asia, Africa, Oceania, and Middle East		350		360		300		52		1,062
Total	$	5,242	$	3,128	$	3,293	$	1,489	$	13,152

Major product lines:
Production agriculture	$	5,038							$	5,038
Small agriculture			$	2,168						2,168
Turf				825						825
Construction					$	1,308				1,308
Compact construction						643				643
Roadbuilding						961				961
Forestry						269				269
Financial products		65		33		8	$	1,489		1,595
Other		139		102		104				345
Total	$	5,242	$	3,128	$	3,293	$	1,489	$	13,152

Revenue recognized:
At a point in time	$	5,143	$	3,084	$	3,269	$	35	$	11,531
Over time		99		44		24		1,454		1,621
Total	$	5,242	$	3,128	$	3,293	$	1,489	$	13,152


	Nine Months Ended July 28, 2024
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	9,441	$	5,011	$	6,563	$	3,041	$	24,056
Canada		1,475		492		635		538		3,140
Western Europe		1,684		1,747		1,263		144		4,838
Central Europe and CIS		655		223		291		28		1,197
Latin America		2,510		326		895		346		4,077
Asia, Africa, Oceania, and Middle East		1,199		1,074		829		162		3,264
Total	$	16,964	$	8,873	$	10,476	$	4,259	$	40,572

Major product lines:
Production agriculture	$	16,336							$	16,336
Small agriculture			$	5,984						5,984
Turf				2,491						2,491
Construction					$	4,528				4,528
Compact construction						1,964				1,964
Roadbuilding						2,804				2,804
Forestry						832				832
Financial products		164		91		43	$	4,259		4,557
Other		464		307		305				1,076
Total	$	16,964	$	8,873	$	10,476	$	4,259	$	40,572

Revenue recognized:
At a point in time	$	16,707	$	8,753	$	10,395	$	97	$	35,952
Over time		257		120		81		4,162		4,620
Total	$	16,964	$	8,873	$	10,476	$	4,259	$	40,572


	Three Months Ended July 30, 2023
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	3,394	$	2,098	$	2,346	$	860	$	8,698
Canada		397		179		288		165		1,029
Western Europe		833		802		421		35		2,091
Central Europe and CIS		302		85		98		6		491
Latin America		1,326		220		371		117		2,034
Asia, Africa, Oceania, and Middle East		720		422		271		45		1,458
Total	$	6,972	$	3,806	$	3,795	$	1,228	$	15,801

Major product lines:
Production agriculture	$	6,721							$	6,721
Small agriculture			$	2,688						2,688
Turf				964						964
Construction					$	1,745				1,745
Compact construction						614				614
Roadbuilding						987				987
Forestry						334				334
Financial products		89		28		15	$	1,228		1,360
Other		162		126		100				388
Total	$	6,972	$	3,806	$	3,795	$	1,228	$	15,801

Revenue recognized:
At a point in time	$	6,857	$	3,769	$	3,767	$	30	$	14,423
Over time		115		37		28		1,198		1,378
Total	$	6,972	$	3,806	$	3,795	$	1,228	$	15,801


	Nine Months Ended July 30, 2023
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	10,079	$	6,005	$	6,807	$	2,339	$	25,230
Canada		1,303		514		865		468		3,150
Western Europe		2,092		2,254		1,278		95		5,719
Central Europe and CIS		897		420		263		26		1,606
Latin America		4,106		577		1,098		318		6,099
Asia, Africa, Oceania, and Middle East		1,709		1,291		906		129		4,035
Total	$	20,186	$	11,061	$	11,217	$	3,375	$	45,839

Major product lines:
Production agriculture	$	19,565							$	19,565
Small agriculture			$	7,835						7,835
Turf				2,782						2,782
Construction					$	5,040				5,040
Compact construction						1,750				1,750
Roadbuilding						2,939				2,939
Forestry						1,119				1,119
Financial products		149		66		40	$	3,375		3,630
Other		472		378		329				1,179
Total	$	20,186	$	11,061	$	11,217	$	3,375	$	45,839

Revenue recognized:
At a point in time	$	19,965	$	10,970	$	11,142	$	80	$	42,157
Over time		221		91		75		3,295		3,682
Total	$	20,186	$	11,061	$	11,217	$	3,375	$	45,839

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 $1,895, $1,697, and $1,753 at July 28, 2024, October 29, 2023, and July 30, 2023, respectively. The contract liability is reduced as the revenue is recognized. During the three months ended July 28, 2024 and July 30, 2023, $126 and $96, 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 nine months ended July 28, 2024 and July 30, 2023, $484 and $440, 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 $1,677 at July 28, 2024. The estimated revenue to be recognized by fiscal year follows: remainder of 2024 – $188, 2025 – $456, 2026 – $384, 2027 – $254, 2028 – $157, 2029 – $128, and later years – $110. 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