SUPPLEMENTAL CONSOLIDATING DATA (Tables)

3 Months Ended

Jan. 28, 2018

Supplemental Consolidating Data Income Statement

(20) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended January 28, 2018 and January 29, 2017
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2018		2017		2018		2017
Net Sales and Revenues
Net sales	$	5,973.9	$	4,697.8
Finance and interest income		11.5		21.3	$	777.0	$	687.3
Other income		196.5		258.1		62.7		58.3
Total		6,181.9		4,977.2		839.7		745.6

Costs and Expenses
Cost of sales		4,705.0		3,781.9
Research and development expenses		356.8		312.1
Selling, administrative and general expenses		590.5		545.4		116.2		123.3
Interest expense		96.0		66.7		194.1		148.8
Interest compensation to Financial Services		61.7		45.7
Other operating expenses		72.2		65.6		311.2		305.3
Total		5,882.2		4,817.4		621.5		577.4

Income of Consolidated Group before Income Taxes		299.7		159.8		218.2		168.2
Provision (credit) for income taxes		1,263.8		74.9		(206.3)		54.3
Income (Loss) of Consolidated Group		(964.1)		84.9		424.5		113.9

Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services		425.3		114.4		.8		.5
Other		4.1		(.9)
Total		429.4		113.5		.8		.5
Net Income (Loss)		(534.7)		198.4		425.3		114.4
Less: Net income (loss) attributable to noncontrolling interests		.4		(.6)
Net Income (Loss) Attributable to Deere & Company	$	(535.1)	$	199.0	$	425.3	$	114.4

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

The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

Supplemental Consolidating Data Condensed Balance Sheet


SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEET
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	January 28		October 29		January 29		January 28		October 29		January 29
	2018		2017		2017		2018		2017		2017
Assets
Cash and cash equivalents	$	2,617.1	$	8,168.4	$	2,667.9	$	1,298.0	$	1,166.5	$	1,222.1
Marketable securities		17.6		20.2		29.1		444.7		431.4		416.4
Receivables from unconsolidated subsidiaries and affiliates		667.7		1,032.1		2,855.8
Trade accounts and notes receivable – net		1,051.3		876.3		537.4		4,907.1		4,134.1		3,787.5
Financing receivables – net		51.6				.7		23,803.5		25,104.1		23,030.2
Financing receivables securitized – net		124.9						4,349.1		4,158.8		4,250.4
Other receivables		885.7		1,045.6		778.6		156.4		195.5		116.2
Equipment on operating leases – net								6,619.8		6,593.7		5,825.3
Inventories		6,614.2		3,904.1		3,959.6
Property and equipment – net		5,733.0		5,017.3		4,979.3		48.2		50.4		51.1
Investments in unconsolidated subsidiaries and affiliates		5,285.8		4,812.3		4,658.6		15.5		13.8		12.2
Goodwill		3,111.8		1,033.3		809.2
Other intangible assets – net		1,659.5		218.0		95.5
Retirement benefits		580.2		538.1		133.7		16.2		16.9		19.8
Deferred income taxes		2,248.7		3,098.8		3,567.1		80.1		79.8		72.1
Other assets		1,118.2		973.9		847.0		563.1		651.4		654.5
Total Assets	$	31,767.3	$	30,738.4	$	25,919.5	$	42,301.7	$	42,596.4	$	39,457.8

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	858.2	$	375.5	$	269.7	$	8,885.3	$	9,659.8	$	7,171.9
Short-term securitization borrowings		125.8						4,302.5		4,118.7		4,220.2
Payables to unconsolidated subsidiaries and affiliates		118.0		121.9		94.7		634.0		996.2		2,826.9
Accounts payable and accrued expenses		7,894.3		7,718.1		5,885.0		1,876.9		1,827.1		1,552.4
Deferred income taxes		491.2		115.6		87.4		551.6		857.7		763.2
Long-term borrowings		5,572.5		5,490.9		4,533.8		20,849.3		20,400.4		18,382.8
Retirement benefits and other liabilities		7,428.4		7,341.9		8,199.6		94.8		92.9		90.6
Total liabilities		22,488.4		21,163.9		19,070.2		37,194.4		37,952.8		35,008.0

Commitments and contingencies (Note 14)
Redeemable noncontrolling interest		14.0		14.0		14.0

Stockholders’ Equity
Common stock, $1 par value (issued shares at January 28, 2018 – 536,431,204)		4,374.0		4,280.5		4,079.1		2,099.1		2,099.1		2,079.1
Common stock in treasury		(15,404.3)		(15,460.8)		(15,569.1)
Retained earnings		24,571.9		25,301.3		23,919.6		3,169.0		2,782.0		2,644.6
Accumulated other comprehensive income (loss)		(4,289.0)		(4,563.7)		(5,604.5)		(160.8)		(237.5)		(273.9)
Total Deere & Company stockholders' equity		9,252.6		9,557.3		6,825.1		5,107.3		4,643.6		4,449.8
Noncontrolling interests		12.3		3.2		10.2
Total stockholders’ equity		9,264.9		9,560.5		6,835.3		5,107.3		4,643.6		4,449.8
Total Liabilities and Stockholders’ Equity	$	31,767.3	$	30,738.4	$	25,919.5	$	42,301.7	$	42,596.4	$	39,457.8

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

The supplemental consolidating data is presented for informational purposes. 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


SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF CASH FLOWS
For the Three Months Ended January 28, 2018 and January 29, 2017
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2018		2017		2018		2017
Cash Flows from Operating Activities
Net income (loss)	$	(534.7)	$	198.4	$	425.3	$	114.4
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Provision (credit) for credit losses		.8		(.2)		1.7		6.7
Provision for depreciation and amortization		232.4		212.3		261.6		233.3
Undistributed earnings of unconsolidated subsidiaries and affiliates		(392.9)		25.1		(.8)		(.5)
Provision (credit) for deferred income taxes		786.4		(10.8)		(306.7)		22.7
Changes in assets and liabilities:
Trade receivables		295.1		102.1
Inventories		(1,099.7)		(624.6)
Accounts payable and accrued expenses		(735.7)		(618.5)		8.9		(23.9)
Accrued income taxes payable/receivable		453.1		.9		(28.0)		9.2
Retirement benefits		63.2		44.2		2.4		2.3
Other		(50.6)		(74.7)		65.9		60.5
Net cash provided by (used for) operating activities		(982.6)		(745.8)		430.3		424.7

Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						5,601.4		5,132.5
Proceeds from maturities and sales of marketable securities		2.7		6.2		10.4		17.5
Proceeds from sales of equipment on operating leases						339.6		368.2
Proceeds from sales of businesses and unconsolidated affiliates, net of cash sold		49.7		113.9
Cost of receivables acquired (excluding trade and wholesale)						(4,368.5)		(3,864.2)
Acquisitions of businesses, net of cash acquired		(5,129.7)
Purchases of marketable securities						(24.3)		(21.7)
Purchases of property and equipment		(176.0)		(154.9)		(.3)		(.3)
Cost of equipment on operating leases acquired						(553.8)		(542.8)
Increase in trade and wholesale receivables						(601.9)		(213.5)
Other		57.6		(5.7)		(3.5)		(6.4)
Net cash provided by (used for) investing activities		(5,195.7)		(40.5)		399.1		869.3

Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		132.9		(14.5)		(668.4)		(1,050.4)
Change in intercompany receivables/payables		388.1		316.9		(388.1)		(316.9)
Proceeds from long-term borrowings		77.8		19.2		2,184.3		1,276.6
Payments of long-term borrowings		(68.0)		(18.3)		(1,803.2)		(1,030.6)
Proceeds from issuance of common stock		143.0		263.3
Repurchases of common stock		(9.7)		(6.2)
Dividends paid		(193.0)		(188.9)		(38.2)		(140.0)
Other		(17.5)		(19.1)		(9.2)		(5.3)
Net cash provided by (used for) financing activities		453.6		352.4		(722.8)		(1,266.6)

Effect of Exchange Rate Changes on Cash and Cash Equivalents		173.4		(38.7)		24.9		(.6)

Net Increase (Decrease) in Cash and Cash Equivalents		(5,551.3)		(472.6)		131.5		26.8
Cash and Cash Equivalents at Beginning of Period		8,168.4		3,140.5		1,166.5		1,195.3
Cash and Cash Equivalents at End of Period	$	2,617.1	$	2,667.9	$	1,298.0	$	1,222.1

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