Deere & Company reported a net loss of $535.1 million for the first quarter ended January 28, 2018 compared with net income of $199.0 million for the quarter ended January 29, 2017.

Affecting Q1/18 results were charges to the provision for income taxes due to the enactment of U.S. tax reform legislation on December 22, 2017. The provisional income tax expense includes a write-down of net deferred tax assets of $715.6 million, reflecting a reduction in the U.S. corporate tax rate from 35% to 21% beginning on the enactment date, as well as the cost of a mandatory deemed repatriation of previously untaxed non-U.S. earnings of $261.6 million, partially offset by a favorable reduction in the annual effective tax rate and other adjustments of $12.1 million.

Without these adjustments, first-quarter net income would have been $430.0 million.

Worldwide net sales and revenues for the first quarter increased 23%, to $6.913 billion, compared with $5.625 billion for the same period last year. Net sales of the equipment operations were $5.974 billion for the quarter compared with $4.698 billion a year ago.

Financial services reported net income attributable to Deere & Company of $425.3 million for the quarter compared with $114.4 million for the same period last year. The increase was largely attributable to a provisional income tax benefit of $278.1 million related to tax reform. Additionally, quarterly results benefited from a higher average portfolio and lower losses on lease residual values. Last year’s results included expenses associated with a voluntary employee-separation program.

Net income attributable to John Deere Capital (JDCC) was $399.4 million for the quarter compared with $74.2 million for the same period in 2017. Results for the quarter benefited from a favorable provision for income taxes associated with tax reform, a higher average portfolio and lower losses on lease residual values. The prior period included employee-separation expenses.

Net receivables and leases financed by JDCC were $32.449 billion at January 28, 2018, compared with $30.643 billion at January 29, 2017.

“Deere has continued to experience strong increases in demand for its products as conditions in key markets show further improvement,” said Samuel R. Allen, chairman and chief executive officer. “Sales gains for the quarter, however, were moderated by bottlenecks in the supply chain and logistical delays in shipping products to our dealers. In line with strengthening conditions, we have raised our sales and adjusted-earnings forecasts for 2018 and have confidence we will be able to fulfill the needs of our customers over the course of the year.”