REVENUE RECOGNITION

6 Months Ended

Apr. 27, 2025

(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 27, 2025
	PPA		SAT		CF		FS		Total
Primary geographic markets:
United States	$	2,512	$	1,626	$	1,717	$	1,072	$	6,927
Canada		656		153		208		172		1,189
Western Europe		612		667		497		44		1,820
Central Europe and CIS		239		99		87		3		428
Latin America		995		116		220		41		1,372
Asia, Africa, Oceania, and Middle East		312		385		277		53		1,027
Total	$	5,326	$	3,046	$	3,006	$	1,385	$	12,763

Major product lines:
Production agriculture	$	5,135							$	5,135
Small agriculture			$	1,964						1,964
Turf				957						957
Construction					$	1,182				1,182
Compact construction						506				506
Roadbuilding						949				949
Forestry						254				254
Financial products		56		25		16	$	1,385		1,482
Other		135		100		99				334
Total	$	5,326	$	3,046	$	3,006	$	1,385	$	12,763

Revenue recognized:
At a point in time	$	5,218	$	2,997	$	2,967	$	34	$	11,216
Over time		108		49		39		1,351		1,547
Total	$	5,326	$	3,046	$	3,006	$	1,385	$	12,763


	Six Months Ended April 27, 2025
	PPA		SAT		CF		FS		Total
Primary geographic markets:
United States	$	4,067	$	2,575	$	2,830	$	2,158	$	11,630
Canada		1,010		232		309		359		1,910
Western Europe		889		1,019		841		87		2,836
Central Europe and CIS		306		138		158		7		609
Latin America		1,710		196		425		137		2,468
Asia, Africa, Oceania, and Middle East		517		693		501		108		1,819
Total	$	8,499	$	4,853	$	5,064	$	2,856	$	21,272

Major product lines:
Production agriculture	$	8,137							$	8,137
Small agriculture			$	3,198						3,198
Turf				1,420						1,420
Construction					$	1,952				1,952
Compact construction						867				867
Roadbuilding						1,545				1,545
Forestry						480				480
Financial products		111		58		37	$	2,856		3,062
Other		251		177		183				611
Total	$	8,499	$	4,853	$	5,064	$	2,856	$	21,272

Revenue recognized:
At a point in time	$	8,304	$	4,757	$	4,995	$	63	$	18,119
Over time		195		96		69		2,793		3,153
Total	$	8,499	$	4,853	$	5,064	$	2,856	$	21,272


	Three Months Ended April 28, 2024
	PPA		SAT		CF		FS		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
	PPA		SAT		CF		FS		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

We invoice in advance of recognizing the revenue of certain products and 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 $2,089, $1,923, and $1,911 at April 27, 2025, October 27, 2024, and April 28, 2024, 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 $176 and $128 during the three months and $373 and $358 during the six months ended April 27, 2025 and April 28, 2024, respectively.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $1,774 at April 27, 2025. The estimated revenue to be recognized by fiscal year follows: remainder of 2025 – $289, 2026 – $478, 2027 – $383, 2028 – $262, 2029 – $162, 2030 – $116, and later years – $84. 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