SEGMENT AND GEOGRAPHIC AREA DATA (Tables)

12 Months Ended

Oct. 28, 2018

Schedule of Segment Reporting Information

Information relating to operations by operating segment in millions of dollars follows for the years ended October 28, 2018, October 29, 2017, and October 30, 2016. In addition to the following unaffiliated sales and revenues by segment, intersegment sales and revenues in 2018, 2017, and 2016 were as follows: agriculture and turf net sales of $47 million, $39 million, and $31 million, construction and forestry net sales of none, $1 million, and $1 million, and financial services revenues of $308 million, $244 million, and $225 million, respectively.


OPERATING SEGMENTS	2018		2017		2016
Net sales and revenues
Unaffiliated customers:
Agriculture and turf net sales	$	23,191	$	20,167	$	18,487
Construction and forestry net sales		10,160		5,718		4,900
Total net sales		33,351		25,885		23,387
Financial services revenues		3,252		2,935		2,694
Other revenues*		755		918		563
Total	$	37,358	$	29,738	$	26,644

* Other revenues are primarily the equipment operations’ revenues for finance and interest income, and other income as disclosed in Note 31, net of certain intercompany eliminations.


Operating profit
Agriculture and turf	$	2,816	$	2,513	$	1,719
Construction and forestry		868		346		189
Financial services*		792		715		701
Total operating profit**		4,476		3,574		2,609
Interest income		80		55		48
Interest expense		(298)		(264)		(251)
Foreign exchange gains (losses) from equipment operations’ financing activities		36		(12)		(12)
Pension and OPEB costs, excluding service cost component		(15)		(31)		(20)
Corporate expenses – net		(182)		(192)		(153)
Income taxes		(1,727)		(971)		(700)
Total		(2,106)		(1,415)		(1,088)
Net income		2,370		2,159		1,521
Less: Net income (loss) attributable to noncontrolling interests		2				(3)
Net income attributable to Deere & Company	$	2,368	$	2,159	$	1,524

* Operating profit of the financial services business segment includes the effect of its interest expense and foreign exchange gains or losses.

** Fiscal year 2017 and 2016 amounts were restated for the adoption of ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. See Note 3.


Interest income*
Agriculture and turf	$	14	$	16	$	12
Construction and forestry		33		1		1
Financial services		1,998		1,771		1,650
Corporate		80		55		48
Intercompany		(331)		(268)		(240)
Total	$	1,794	$	1,575	$	1,471

* Does not include finance rental income for equipment on operating leases.


Interest expense
Agriculture and turf	$	229	$	182	$	173
Construction and forestry		71		53		44
Financial services		937		669		536
Corporate		298		264		251
Intercompany		(331)		(268)		(240)
Total	$	1,204	$	900	$	764

Depreciation* and amortization expense
Agriculture and turf	$	723	$	695	$	667
Construction and forestry		251		145		136
Financial services		953		876		757
Total	$	1,927	$	1,716	$	1,560

* Includes depreciation for equipment on operating leases.


Equity in income (loss) of unconsolidated affiliates
Agriculture and turf	$	6	$	2	$	9
Construction and forestry		19		(27)		(13)
Financial services		2		1		2
Total	$	27	$	(24)	$	(2)


Identifiable operating assets
Agriculture and turf	$	10,161	$	9,359	$	8,405
Construction and forestry		9,855		3,212		3,017
Financial services		45,720		42,596		40,837
Corporate*		4,372		10,619		5,659
Total	$	70,108	$	65,786	$	57,918

* Corporate assets are primarily the equipment operations’ retirement benefits, deferred income tax assets, marketable securities, and cash and cash equivalents as disclosed in Note 31, net of certain intercompany eliminations.


Capital additions
Agriculture and turf	$	675	$	485	$	556
Construction and forestry		308		114		115
Financial services		2		3		3
Total	$	985	$	602	$	674


Investments in unconsolidated affiliates
Agriculture and turf	$	26	$	25	$	56
Construction and forestry		166		143		165
Financial services		15		14		12
Total	$	207	$	182	$	233

Schedule of Geographic Area Reporting Information

The company views and has historically disclosed its operations as consisting of two geographic areas, the U.S. and Canada, and outside the U.S. and Canada, shown below in millions of dollars. No individual foreign country’s net sales and revenues were material for disclosure purposes.


GEOGRAPHIC AREAS	2018		2017		2016
Net sales and revenues
Unaffiliated customers:
U.S. and Canada:
Equipment operations net sales (88%)*	$	18,847	$	15,031	$	14,376
Financial services revenues (79%)*		2,785		2,526		2,366
Total		21,632		17,557		16,742
Outside U.S. and Canada:
Equipment operations net sales		14,504		10,854		9,011
Financial services revenues		467		409		328
Total		14,971		11,263		9,339
Other revenues		755		918		563
Total	$	37,358	$	29,738	$	26,644

* The percentages indicate the approximate proportion of each amount that relates to the U.S. only and are based upon a three-year average for 2018, 2017, and 2016.


GEOGRAPHIC AREAS	2018		2017		2016
Operating profit*
U.S. and Canada:
Equipment operations	$	2,356	$	1,754	$	1,328
Financial services		604		515		543
Total		2,960		2,269		1,871
Outside U.S. and Canada:
Equipment operations		1,328		1,105		580
Financial services		188		200		158
Total		1,516		1,305		738
Total	$	4,476	$	3,574	$	2,609

* Fiscal year 2017 and 2016 amounts were restated for the adoption of FASB ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. See Note 3.


Property and equipment
U.S.	$	3,031	$	2,976	$	3,077
Germany		1,164		598		569
Other countries		1,673		1,494		1,525
Total	$	5,868	$	5,068	$	5,171