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COMMITMENTS AND CONTINGENCIES | 6 Months Ended
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May 03, 2026
COMMITMENTS AND CONTINGENCIES |
COMMITMENTS AND CONTINGENCIES | (17) Commitments and Contingencies A standard warranty is provided as assurance that the equipment will function as intended. The standard warranty period varies by product and region. At the time a sale is recognized, we record an estimate of future warranty costs based on historical claims rate experience and estimated population under warranty. The reconciliation of the changes in the warranty liability follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Six Months Ended |
​ | ​ | May 3 | ​ | April 27 | ​ | May 3 | ​ | April 27 |
​ | ​ | 2026 | ​ | 2025 | ​ | 2026 | ​ | 2025 |
Beginning of period balance | ​ | $ | 1,311 | ​ ​ | $ | 1,360 | ​ ​ | $ | 1,259 | ​ ​ | $ | 1,426 | ​
Warranty claims paid | ​ | ​ | (294) | ​ |  | (308) | ​ | ​ | (593) | ​ |  | (618) | ​
New product warranty accruals | ​ | ​ | 318 | ​ |  | 227 | ​ | ​ | 660 | ​ |  | 483 | ​
Foreign exchange | ​ | ​ | 1 | ​ |  | 18 | ​ | ​ | 10 | ​ |  | 6 | ​
End of period balance | ​ | $ | 1,336 | ​ | $ | 1,297 | ​ | $ | 1,336 | ​ | $ | 1,297 | ​
​ The costs for extended warranty programs are recognized as incurred. In certain international markets, we provide guarantees to banks for the retail financing of John Deere equipment. As of May 3, 2026, the notional value of these guarantees was $137. We may repossess the equipment collateralizing the receivables. At May 3, 2026, the accrued losses under these guarantees were not material. We also had guarantees to a VIE (see Note 1) totaling $172 at May 3, 2026. We also had other miscellaneous contingent liabilities and guarantees totaling approximately $150 at May 3, 2026. The accrued liability for these contingencies was $40 at May 3, 2026. At May 3, 2026, we had commitments of approximately $525 for the construction and acquisition of property and equipment. Also, at May 3, 2026, we had restricted assets of $297, classified as “Other assets,” which includes restricted cash primarily related to securitization of financing receivables (see Note 10) and cash that is legally restricted as to withdrawal or usage. We are subject to various unresolved legal actions. The total accrued losses on unresolved legal matters were approximately $175 at May 3, 2026. The accrual includes losses associated with a settlement agreement in a consolidated multidistrict class action antitrust lawsuit, which was recorded in the fourth quarter of 2025. The accrual for all other matters is based on management’s best estimate of probable losses as the outcome of litigation is inherently uncertain. We believe the reasonably possible range of losses in excess of the recorded accruals for these unresolved legal actions would not have a material effect on our consolidated financial statements. The most prevalent legal claims relate to antitrust, product liability (including asbestos-related liability), employment, patent, and trademark matters.

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