SUPPLEMENTAL CONSOLIDATING DATA (Tables)

12 Months Ended

Oct. 28, 2018

Supplemental Consolidating Data Income Statement


INCOME STATEMENT
For the Years Ended October 28, 2018, October 29, 2017, and October 30, 2016
(In millions of dollars)
	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2018		2017		2016		2018		2017		2016
Net Sales and Revenues
Net sales	$	33,350.7	$	25,885.1	$	23,387.3
Finance and interest income		126.3		71.7		61.1	$	3,311.4	$	2,928.2	$	2,690.1
Other income		874.5		1,065.0		653.7		248.6		250.9		229.0
Total		34,351.5		27,021.8		24,102.1		3,560.0		3,179.1		2,919.1

Costs and Expenses
Cost of sales		25,573.0		19,867.9		18,198.0
Research and development expenses		1,657.6		1,372.5		1,393.7
Selling, administrative and general expenses		2,934.9		2,555.0		2,282.6		527.9		549.2		515.9
Interest expense		297.8		263.7		250.5		936.6		669.2		536.5
Interest compensation to Financial Services		299.8		234.5		216.6
Other operating expenses		315.4		295.2		243.8		1,297.8		1,239.9		1,159.6
Total		31,078.5		24,588.8		22,585.2		2,762.3		2,458.3		2,212.0

Income of Consolidated Group before Income Taxes		3,273.0		2,433.0		1,516.9		797.7		720.8		707.1
Provision (credit) for income taxes		1,869.2		726.0		459.0		(142.3)		245.1		241.1
Income of Consolidated Group		1,403.8		1,707.0		1,057.9		940.0		475.7		466.0
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services		942.0		476.9		467.6		2.0		1.2		1.6
Other		24.8		(24.7)		(4.0)
Total		966.8		452.2		463.6		2.0		1.2		1.6
Net Income		2,370.6		2,159.2		1,521.5		942.0		476.9		467.6
Less: Net income (loss) attributable to noncontrolling interests		2.2		.1		(2.4)
Net Income Attributable to Deere & Company	$	2,368.4	$	2,159.1	$	1,523.9	$	942.0	$	476.9	$	467.6

* Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. The consolidated group data in the “Equipment Operations” income statement reflect the results of the agriculture and turf operations and construction and forestry operations. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

Supplemental Consolidating Data Condensed Balance Sheet


BALANCE SHEET
As of October 28, 2018 and October 29, 2017
(In millions of dollars except per share amounts)
	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2018		2017		2018		2017
ASSETS
Cash and cash equivalents	$	3,194.8	$	8,168.4	$	709.2	$	1,166.5
Marketable securities		8.2		20.2		481.9		431.4
Receivables from unconsolidated subsidiaries and affiliates		1,700.4		1,032.1
Trade accounts and notes receivable - net		1,373.7		876.3		4,906.4		4,134.1
Financing receivables - net		93.1				26,961.0		25,104.1
Financing receivables securitized - net		76.1				3,945.3		4,158.8
Other receivables		1,009.7		1,045.6		775.7		195.5
Equipment on operating leases - net						7,165.4		6,593.7
Inventories		6,148.9		3,904.1
Property and equipment - net		5,820.6		5,017.3		46.9		50.4
Investments in unconsolidated subsidiaries and affiliates		5,231.2		4,812.3		15.2		13.8
Goodwill		3,100.7		1,033.3
Other intangible assets - net		1,562.4		218.0
Retirement benefits		1,241.5		538.1		56.8		16.9
Deferred income taxes		1,502.6		3,098.8		69.4		79.8
Other assets		1,132.8		973.9		587.1		651.4
Total Assets	$	33,196.7	$	30,738.4	$	45,720.3	$	42,596.4

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES
Short-term borrowings	$	1,434.0	$	375.5	$	9,627.4	$	9,659.8
Short-term securitization borrowings		75.6				3,881.7		4,118.7
Payables to unconsolidated subsidiaries and affiliates		128.9		121.9		1,678.7		996.2
Accounts payable and accrued expenses		9,382.5		7,718.1		2,055.7		1,827.1
Deferred income taxes		496.8		115.6		823.0		857.7
Long-term borrowings		4,713.9		5,490.9		22,523.5		20,400.4
Retirement benefits and other liabilities		5,659.8		7,341.9		91.2		92.9
Total liabilities		21,891.5		21,163.9		40,681.2		37,952.8

Commitments and contingencies (Note 22)
Redeemable noncontrolling interest (Note 4)		14.0		14.0

STOCKHOLDERS’ EQUITY
Common stock, $1 par value (authorized – 1,200,000,000 shares; issued – 536,431,204 shares in 2018 and 2017), at paid-in amount		4,474.2		4,280.5		2,099.5		2,099.1
Common stock in treasury, 217,975,806 shares in 2018 and 214,589,902 shares in 2017, at cost		(16,311.8)		(15,460.8)
Retained earnings		27,553.0		25,301.3		3,257.2		2,782.0
Accumulated other comprehensive income (loss)		(4,427.6)		(4,563.7)		(317.6)		(237.5)
Total Deere & Company stockholders’ equity		11,287.8		9,557.3		5,039.1		4,643.6
Noncontrolling interests		3.4		3.2
Total stockholders’ equity		11,291.2		9,560.5		5,039.1		4,643.6
Total Liabilities and Stockholders’ Equity	$	33,196.7	$	30,738.4	$	45,720.3	$	42,596.4

* Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

Supplemental Consolidating Data Statement of Cash Flows


STATEMENT OF CASH FLOWS
For the Years Ended October 28, 2018, October 29, 2017, and October 30, 2016
(In millions of dollars)
	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2018		2017		2016		2018		2017		2016
Cash Flows from Operating Activities
Net income	$	2,370.6	$	2,159.2	$	1,521.5	$	942.0	$	476.9	$	467.6
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		39.4		9.9		8.2		51.4		88.4		86.1
Provision for depreciation and amortization		974.4		839.3		803.4		1,077.3		984.3		846.7
Impairment charges				39.8		25.4						59.7
Gain on sale of affiliates and investments		(25.1)		(375.1)		(74.5)
Undistributed earnings of unconsolidated subsidiaries and affiliates		(502.8)		(125.0)		94.0		(1.8)		(1.1)		(1.5)
Provision (credit) for deferred income taxes		1,503.7		(6.7)		13.2		(23.8)		106.8		269.5
Changes in assets and liabilities:
Trade receivables and Equipment Operations' financing receivables		(239.1)		(243.9)		(175.3)
Inventories		(917.2)		(504.3)		578.4
Accounts payable and accrued expenses		792.6		946.2		(169.6)		120.0		93.9		40.6
Accrued income taxes payable/receivable		102.8		(122.7)		18.2		(569.0)		38.5		(11.2)
Retirement benefits		(984.8)		(39.2)		232.4		(41.3)		7.3		6.2
Other		164.4		(139.5)		36.5		88.0		81.5		97.1
Net cash provided by operating activities		3,278.9		2,438.0		2,911.8		1,642.8		1,876.5		1,860.8

Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)								17,032.3		15,963.2		15,831.4
Proceeds from maturities and sales of marketable securities		11.4		297.9		81.9		65.2		106.3		87.5
Proceeds from sales of equipment on operating leases								1,482.7		1,440.8		1,256.2
Proceeds from sales of businesses and unconsolidated affiliates, net of cash sold		155.6		113.9		81.1
Cost of receivables acquired (excluding trade and wholesale)								(18,777.6)		(16,799.9)		(15,168.2)
Acquisitions of businesses, net of cash acquired		(5,245.0)		(284.2)		(198.5)
Purchases of marketable securities						(59.4)		(132.8)		(118.0)		(111.8)
Purchases of property and equipment		(893.0)		(591.4)		(641.8)		(3.4)		(3.5)		(2.6)
Cost of equipment on operating leases acquired								(3,209.3)		(3,079.8)		(3,235.7)
Increase in investment in Financial Services		(.4)		(20.0)		(28.2)
Decrease (increase) in trade and wholesale receivables								(1,222.4)		(379.9)		492.5
Other		17.7		(32.7)		(55.2)		(73.5)		(26.5)		24.6
Net cash used for investing activities		(5,953.7)		(516.5)		(820.1)		(4,838.8)		(2,897.3)		(826.1)

Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		16.1		64.5		(207.2)		457.1		1,246.1		(1,006.4)
Change in intercompany receivables/payables		(748.0)		2,142.0		(756.0)		748.0		(2,142.0)		756.0
Proceeds from long-term borrowings		148.5		1,107.0		173.4		8,139.3		7,595.2		4,897.3
Payments of long-term borrowings		(163.4)		(66.3)		(72.8)		(6,081.9)		(5,330.7)		(5,194.8)
Proceeds from issuance of common stock		216.9		528.7		36.0
Repurchases of common stock		(957.9)		(6.2)		(205.4)
Capital investment from Equipment Operations								.4		20.0		28.2
Dividends paid		(805.8)		(764.0)		(761.3)		(463.7)		(365.2)		(562.1)
Other		(60.0)		(54.4)		(36.7)		(32.5)		(33.4)		(28.0)
Net cash provided by (used for) financing activities		(2,353.6)		2,951.3		(1,830.0)		2,766.7		990.0		(1,109.8)

Effect of Exchange Rate Changes on Cash and Cash Equivalents		54.8		155.1		(21.2)		(28.0)		2.0		8.2
Net Increase (Decrease) in Cash and Cash Equivalents		(4,973.6)		5,027.9		240.5		(457.3)		(28.8)		(66.9)
Cash and Cash Equivalents at Beginning of Year		8,168.4		3,140.5		2,900.0		1,166.5		1,195.3		1,262.2
Cash and Cash Equivalents at End of Year	$	3,194.8	$	8,168.4	$	3,140.5	$	709.2	$	1,166.5	$	1,195.3

* Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.