Summary
Deere & Company (DE) has filed a Form 8-K to announce a significant change in its operating model and reporting structure, effective for fiscal year 2021. The company has divested its previous agriculture and turf segment into two distinct reportable segments: 'Production and Precision Agriculture' and 'Small Agriculture and Turf'. This restructuring aims to provide more focused operational management and clearer financial reporting for different customer bases within the agriculture and turf markets. Investors should note that the 'Construction and Forestry' and 'Financial Services' segments remain unchanged. Recast historical segment financial data for prior fiscal years and interim periods of fiscal year 2020 has been furnished to reflect these new segment definitions, allowing for better comparability going forward.
Key Highlights
- 1Deere & Company has implemented a new operating model and reporting structure for fiscal year 2021.
- 2The former 'Agriculture and Turf' segment has been divided into two new reportable segments: 'Production and Precision Agriculture' and 'Small Agriculture and Turf'.
- 3The 'Production and Precision Agriculture' segment will focus on large-scale growers and related equipment/technology.
- 4The 'Small Agriculture and Turf' segment will cater to mid-size and small growers, as well as turf and utility customers.
- 5The 'Construction and Forestry' and 'Financial Services' segments will continue to be reported as before.
- 6Recast historical segment financial data for fiscal years 2018-2020 has been provided to reflect the new segment structure.
- 7This change is intended to enhance operational focus and investor understanding of segment performance.