DEERE & CO Debt Disclosure
21. LONG-TERM BORROWINGS
Long-term borrowings at November 3, 2019 and October 28, 2018 consisted of the following in millions of dollars:
| 2019 |
| 2018 |
| |||
Equipment Operations |
|
| |||||
U.S. dollar notes and debentures: | |||||||
-1/2% debentures due 2022 | $ | 105 | $ | 105 | |||
2.60% notes due 2022 |
| 1,000 |
| 1,000 | |||
6.55% debentures due 2028 |
| 200 |
| 200 | |||
5.375% notes due 2029 |
| 500 |
| 500 | |||
8.10% debentures due 2030 |
| 250 |
| 250 | |||
7.125% notes due 2031 |
| 300 |
| 300 | |||
3.90% notes due 2042 |
| 1,250 |
| 1,250 | |||
2.875% notes due 2049 | 500 | ||||||
Euro notes: | |||||||
Medium-term note due 2020: (€350 principal) Average interest rate of .0% - 2018 | 398 | ||||||
.5% notes due 2023 (€500 principal) | 558 | 569 | |||||
1.65% notes due 2039 (€650 principal) | 725 | ||||||
Other notes |
| 51 |
| 159 | |||
Less debt issuance costs | 24 | 17 | |||||
Total |
| 5,415 |
| 4,714 | |||
Financial Services |
|
| |||||
Notes and debentures: | |||||||
Medium-term notes due 2020 - 2029: (principal $23,265 - 2019, $21,721 - 2018) Average interest rates of 2.7% - 2019, 2.8% - 2018 |
| 23,528 | * | 21,354 | * | ||
Other notes |
| 1,335 |
| 1,215 | |||
Less debt issuance costs | 49 | 46 | |||||
Total |
| 24,814 |
| 22,523 | |||
Long-term borrowings** |
| $ | 30,229 | $ | 27,237 | ||
* Includes unamortized fair value adjustments related to interest rate swaps.
** All interest rates are as of year end.
The approximate principal amounts of the equipment operations’ long-term borrowings maturing in each of the next five years in millions of dollars are as follows: 2020 - $643, 2021 - $39, 2022 - $1,121, 2023 - $562, and 2024 - $1. The approximate principal amounts of the financial services’ long-term borrowings maturing in each of the next five years in millions of dollars are as follows: 2020 - $6,795, 2021 - $6,885, 2022 - $6,323, 2023 - $3,791, and 2024 - $3,013.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2019 | Dec 19, 2019 | Showing above |
| 2018 | Dec 17, 2018 | |
| 2017 | Dec 18, 2017 | |
| 2016 | Dec 19, 2016 | |
| 2015 | Dec 18, 2015 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.