Deere (DE) Risk Factor Changes

We protect our intellectual property with a combination of patents, trademarks, copyrights, trade secret laws, and legal agreements.

We are currently subject to a consolidated multidistrict class action lawsuit in the Northern District of Illinois alleging that we have engaged in attempted monopolization, exclusionary conduct, and restraint of the…

Regulators in Europe and the U.S.

Climate change considerations have led to new international, national, regional, and local legislative and regulatory responses.

We are increasingly dependent on technology systems to operate on a day-to-day basis.

Furthermore, any confidential information that is disclosed to a third-party generative artificial intelligence platform could be leaked or disclosed to others, including sensitive information that is used to train th…

While we believe the use of these emerging technologies can present significant benefits, they also create risks and challenges.

We utilize and intend to expand our use of automation and machine learning in many of our products, including consumer-facing features, and we leverage generative artificial intelligence in our business processes.

Some of our products include connectivity hardware and software typically used for remote system updates.

Although we have not suffered any significant cyber incidents that have resulted in material business impact, we have from time to time been, and expect to continue to be, the target of malicious cyber threat actors.

We rely upon information technology networks and systems, some of which are managed by third parties, to process, transmit, and store electronic information and to manage or support a variety of products within our po…

Our failure to successfully renegotiate labor agreements as they expire has, from time to time led, and could in the future lead, to work stoppages or other disputes with labor unions.

While we strive to reduce the impact of the departure of employees, our operations or ability to execute our business strategy may be affected by the loss of employees, including in connection with reductions in workf…

Our continued success depends, in part, on our ability to identify and attract qualified candidates with the requisite education, background, and experience, as well as our ability to develop, engage, and retain quali…

Our brand has worldwide recognition and contributes to the success of our business.

due diligence evaluations of potential transactions not identifying all of the business, legal, compliance, and financial risks to accurately estimate the impact of a particular acquisition or joint venture, including…

regulatory or compliance exposure until appropriate processes and controls are implemented;

difficulties integrating acquisitions with our operations, applying internal control processes to these acquisitions (including those related to cybersecurity), managing strategic investments, assimilating new capabil…

In addition, the dealer channel’s ability to support and service new technologies may affect customers’ acceptance and adoption rates of these products.

Our dealers carry inventories of finished products as part of their operations and adjust those inventories based on future needs and market conditions, including the level of used equipment inventory.

We rely on the capability of our dealers to develop and implement effective sales plans to create demand among purchasers for the equipment and related products and services they purchase from us.

From time to time, we have received warranty claims and have had to perform post-sales repairs or recalls due to our equipment not performing as expected.

We compete on product performance, innovation, quality, distribution, sustainability, customer service, and price.

our estimates and assumptions related to efficiency of our products and the adoption of precision technology may not be accurate; in particular, we have experienced slower than expected customer adoption of some of ou…

Similarly, we may not realize the anticipated benefits of our Leap Ambitions and related goals within the expected timelines, or at all.

being unable to optimize our capital allocation in connection with the Smart Industrial Operating Model, and

our inability to holistically provide lifecycle solutions,

our inability to accurately assess market opportunities and the technology required to address such opportunities,

Failure to realize the anticipated benefits of our Smart Industrial Operating Model and related business strategies in production systems, precision technologies, and aftermarket support, as well as failure to have se…

We are subject to income taxes in the U.S.

The financial services segment’s inability to access funds at cost-effective rates to support our financing activities could have a material adverse effect on our business.

The potential physical impacts of weather conditions or climate change on our facilities, suppliers, and customers, and therefore on our business, are uncertain and will be specific to the circumstances developing in…

The occurrence of one or more unexpected events, including war, lack of available natural resources, acts of terrorism, epidemics and pandemics, civil unrest, fires, tornadoes, tsunamis, hurricanes, earthquakes, tempe…

Failure to comply could lead us to seek alternative suppliers, which could increase our costs and result in delayed delivery of our products, product shortages, or other disruptions in operations.

To ensure adequate inventory supply, we must forecast inventory needs and expenses and place orders sufficiently in advance with suppliers and contract manufacturers.

Inability to accurately forecast customer demand for products and services, and to adequately manage inventory, could adversely affect our operating results.

Restructuring, rationalization, and relocation of manufacturing facilities may cause capacity constraints, inventory fluctuations, and other issues.

Changing worldwide demand for farm outputs to meet the world’s growing food and renewable energy demands, driven in part by government policies, including those related to climate change, and a growing world populatio…

Changing worldwide demand for food and different forms of renewable energy can impact the price of farm commodities and consequently the demand for our equipment.

Restricted access to global markets could impair our ability to export goods and services from various manufacturing locations around the world and limit the ability to access raw materials and high-quality parts and…

Changing U.S.

International, national, and regional laws, regulations, and policies directly or indirectly related to or restricting the import and export of our products, services, and technology, or those of our customers or supp…

We face risks associated with international, national, and regional trade laws, regulations, and policies that could materially impair our profitability.

Sustained general negative economic conditions and outlook could also affect construction and housing activities, and energy prices and demand, which could decrease demand for construction and turf equipment and could…

The demand for our products and services depends on the fundamentals in the markets in which we operate and can be significantly reduced in an economic environment characterized by high unemployment, high interest rat…

The economic health of the agricultural industry is affected by numerous factors, including farm income, international trade, farmland values, debt levels, and financing costs.

Our business may suffer if our equipment fails to perform as expected.

John Deere brand agricultural equipment, as well as our information security practices and statements as they relate to the risk of unauthorized access to our computer systems, products, and services.

We routinely are a party to claims and legal actions and the subject of government inquiries and investigations, the most prevalent of which relate to product liability (including asbestos related liability), employme…

Changes in government farm programs and policies can influence demand for agricultural equipment as well as create unequal competition for multinational companies relative to domestic companies.

Trade restrictions, negotiation of new trade agreements, non-tariff trade barriers, local content requirements, and imposition of new or retaliatory tariffs against certain countries or covering certain products, incl…

In addition, we must comply with the U.S.

We are subject to numerous international, federal, state, and local laws and regulations, many of which are complex, frequently changing, and subject to varying interpretations.

In addition, disruptions with GPS signals or the failure of telecommunications network operators to supply the bandwidth we need to support our products could interfere with the speed, availability, and usability of o…

In January 2024, we entered into an agreement with SpaceX and its Starlink network to provide satellite communications (SATCOM) service to farmers facing rural connectivity challenges, with an initial focus on Brazil.

Our current and planned integrated agricultural business and equipment management systems, as well as our fleet management telematics solutions for construction equipment, depend upon the use of RF signals.

We could be impacted by changes to or reallocation of radio frequency (RF) bands which could disrupt or degrade the reliability of our high precision augmented Global Positioning System (GPS) or other RF technology, w…

in our technology systems could harm our reputation and credibility and could have a material adverse effect on our business, financial condition, and results of operations.

data centers, which are often owned by third parties and maintained on their information technology networks.

Additionally, we collect and store confidential data, including intellectual property, proprietary business information, and the proprietary business information of our customers, suppliers, and dealers, as well as pe…

Disputes with labor unions may adversely affect our ability to operate in our facilities as well as impact our financial results.

Our brand has worldwide recognition and contributes to the success of our business.

We may also decide to divest businesses and terminate joint ventures before their stated expiration.

We may not realize all the anticipated benefits of acquisitions or joint ventures, or the realized benefits may be significantly delayed; for example, our joint venture with Bradesco in Brazil with respect to Banco Jo…

Integrating acquisitions is often costly and may require significant attention from management and personnel;

demand for the products and services of competitors, unanticipated changes in general market conditions, and the weakening of economic conditions or customer confidence in future economic conditions.

Furthermore, our approach to precision technology involves hardware and software, guidance, connectivity and digital solutions, automation and machine intelligence, and autonomy.

In addition, if we are unable to remain relevant and effectively develop and deliver technology that customers can easily adopt and utilize, customer adoption rates could reduce, adversely impacting our business opera…

If we are unable to remain competitive and relevant, including by delivering precision technology solutions to our customers, our business, results of operations, and financial condition could be adversely affected.

The infrastructure required to achieve our goals, such as sufficient charging stations or fuel availability, may become too costly or may not be developed on the expected timelines.

Customers may not embrace the value proposition of the Solutions as a Service license model; and

Certain materials, such as quality battery cells, may become unavailable or too costly;

Failure to develop and introduce new technologies or lack of adoption of such technologies by our customers;

While central banks began cutting their policy interest rates in the latter part of fiscal year 2024, interest rates remain above recent norms.

Additionally, the reporting currency for our consolidated financial statements is the U.S.

We are a global company with transactions denominated in a variety of currencies.

Our consolidated financial results are reported in U.S.

The rationalization or restructuring of our manufacturing facilities, including relocating production or closing facilities, may result in temporary constraints on our ability to produce the quantity of products neces…

Additionally, third parties may initiate legal proceedings to challenge the validity of our intellectual property or allege that we infringe on their intellectual property.

Each of these conditions could negatively affect demand for agricultural and turf equipment and the financial condition and credit risk of our dealers and customers.

Drought conditions can adversely affect sales of certain mowing equipment and can similarly cause lower sales volume.

Adverse weather conditions in a particular geographic region, particularly during the important spring selling season; and

Natural disasters such as regional floods, hurricanes or other storms, droughts, diseases, wildfires, and pests, either as a physical effect of climate change or otherwise, which have had, and could in the future have…

Temperatures outside normal ranges, which can cause crop failure or decreased yields and may also affect disease incidence;

Excessive rain or flooding can prevent planting from occurring at optimal times and may cause crop loss through increased disease or mold growth;

Insufficient levels of rain, which prevent farmers from planting new crops and may cause growing crops to die or result in lower yields;

The purchasing decisions of our customers, particularly the purchasers of agriculture and turf equipment, can be significantly affected by poor or unusual weather conditions.

Unfavorable weather conditions or natural catastrophes that reduce agricultural production and demand for agriculture and turf equipment could directly and indirectly affect our business.

We rely on our suppliers to acquire the raw materials, components, and whole goods required to manufacture their products.

We have experienced changes in the availability and prices of raw materials, components, whole goods, and freight over the past several years, especially in fiscal years 2021 and 2022.

We require access to various raw materials, components, and whole goods at competitive prices to manufacture and distribute our products.

Geopolitical tensions, including the Russia/Ukraine war and the conflict in the Middle East, have also exacerbated market volatility and affected agricultural global production and demand levels.

Market uncertainty and volatility in various geographies have been magnified as a result of potential shifts in U.S.

While our brands are widely recognized in our traditional markets, they are less known in some emerging markets, which could impede our efforts to successfully compete in these markets.

Expanding business operations globally also increases exposure to currency fluctuations, which can materially affect our financial results.

Having business operations in various regions and countries exposes us to multiple and potentially conflicting business practices and legal and regulatory requirements that are subject to change.

In some cases, these countries have greater political and economic volatility, greater vulnerability to infrastructure and labor disruptions, and differing customer product preferences and requirements than our other…

Efforts to grow our businesses depend in part upon access to and developing market share and profitability in additional geographic markets, including, but not limited to, Argentina, Brazil, CIS, China, India, and Sou…

We may be unable to manage increasing political, economic, and social uncertainty in certain regions of the world, which could significantly change the dynamics of our competition, customer base, and product offerings…

We routinely are a party to claims and legal actions and the subject of government inquiries and investigations, the most prevalent of which relate to antitrust (including class action litigation), product liability (…