SUPPLEMENTAL CONSOLIDATING DATA (Tables)

6 Months Ended

Apr. 29, 2018

Supplemental Consolidating Data Income Statement

(20) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended April 29, 2018 and April 30, 2017
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2018		2017		2018		2017
Net Sales and Revenues
Net sales	$	9,747.0	$	7,259.8
Finance and interest income		27.8		18.7	$	812.5	$	716.4
Other income		202.9		339.6		64.9		61.0
Total		9,977.7		7,618.1		877.4		777.4

Costs and Expenses
Cost of sales		7,333.8		5,428.1
Research and development expenses		415.2		325.4
Selling, administrative and general expenses		799.5		644.1		141.5		141.3
Interest expense		78.2		67.0		231.2		169.4
Interest compensation to Financial Services		80.6		60.4
Other operating expenses		66.7		83.2		324.7		307.3
Total		8,774.0		6,608.2		697.4		618.0

Income of Consolidated Group before Income Taxes		1,203.7		1,009.9		180.0		159.4
Provision for income taxes		100.8		309.7		76.3		56.1
Income of Consolidated Group		1,102.9		700.2		103.7		103.3

Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		104.1		103.5		.4		.2
Other		2.7		4.6
Total		106.8		108.1		.4		.2
Net Income		1,209.7		808.3		104.1		103.5
Less: Net income (loss) attributable to noncontrolling interests		1.4		(.2)
Net Income Attributable to Deere & Company	$	1,208.3	$	808.5	$	104.1	$	103.5

* 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 (Continued)
STATEMENT OF INCOME
For the Six Months Ended April 29, 2018 and April 30, 2017
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2018		2017		2018		2017
Net Sales and Revenues
Net sales	$	15,721.0	$	11,957.7
Finance and interest income		39.4		40.0	$	1,589.4	$	1,403.7
Other income		399.3		597.6		127.7		119.2
Total		16,159.7		12,595.3		1,717.1		1,522.9

Costs and Expenses
Cost of sales		12,038.8		9,210.0
Research and development expenses		772.0		637.5
Selling, administrative and general expenses		1,390.2		1,189.3		257.7		264.7
Interest expense		174.2		133.8		425.3		318.1
Interest compensation to Financial Services		142.2		106.1
Other operating expenses		138.9		148.9		635.9		612.5
Total		14,656.3		11,425.6		1,318.9		1,195.3

Income of Consolidated Group before Income Taxes		1,503.4		1,169.7		398.2		327.6
Provision (credit) for income taxes		1,364.7		384.6		(130.0)		110.5
Income of Consolidated Group		138.7		785.1		528.2		217.1

Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		529.4		217.9		1.2		.8
Other		6.8		3.7
Total		536.2		221.6		1.2		.8
Net Income		674.9		1,006.7		529.4		217.9
Less: Net income (loss) attributable to noncontrolling interests		1.7		(.8)
Net Income Attributable to Deere & Company	$	673.2	$	1,007.5	$	529.4	$	217.9

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

Supplemental Consolidating Data Condensed Balance Sheet

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEET
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	April 29		October 29		April 30		April 29		October 29		April 30
	2018		2017		2017		2018		2017		2017
Assets
Cash and cash equivalents	$	2,988.9	$	8,168.4	$	3,343.8	$	1,212.5	$	1,166.5	$	1,182.0
Marketable securities		16.9		20.2		118.1		462.4		431.4		428.2
Receivables from unconsolidated subsidiaries and affiliates		1,668.0		1,032.1		3,453.0
Trade accounts and notes receivable – net		1,515.9		876.3		742.9		6,436.0		4,134.1		4,867.3
Financing receivables – net		75.7						24,199.8		25,104.1		23,301.1
Financing receivables securitized – net		113.1						4,323.2		4,158.8		4,281.8
Other receivables		1,273.3		1,045.6		801.6		190.1		195.5		136.0
Equipment on operating leases – net								6,723.1		6,593.7		5,923.9
Inventories		6,888.9		3,904.1		4,114.8
Property and equipment – net		5,696.0		5,017.3		4,909.7		46.9		50.4		50.2
Investments in unconsolidated subsidiaries and affiliates		4,915.9		4,812.3		4,612.2		15.3		13.8		12.5
Goodwill		3,188.7		1,033.3		806.2
Other intangible assets – net		1,692.2		218.0		90.8
Retirement benefits		617.9		538.1		176.2		15.0		16.9		18.9
Deferred income taxes		2,065.5		3,098.8		3,651.1		76.4		79.8		76.3
Other assets		1,186.3		973.9		901.1		577.3		651.4		636.8
Total Assets	$	33,903.2	$	30,738.4	$	27,721.5	$	44,278.0	$	42,596.4	$	40,915.0

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	659.1	$	375.5	$	276.6	$	10,235.5	$	9,659.8	$	7,687.0
Short-term securitization borrowings		113.2						4,287.9		4,118.7		4,224.6
Payables to unconsolidated subsidiaries and affiliates		145.7		121.9		101.6		1,633.7		996.2		3,418.1
Accounts payable and accrued expenses		9,265.7		7,718.1		6,765.0		2,030.8		1,827.1		1,587.1
Deferred income taxes		462.9		115.6		89.7		523.2		857.7		764.8
Long-term borrowings		5,536.5		5,490.9		4,520.4		20,742.1		20,400.4		18,732.7
Retirement benefits and other liabilities		7,285.5		7,341.9		8,260.4		95.6		92.9		91.7
Total liabilities		23,468.6		21,163.9		20,013.7		39,548.8		37,952.8		36,506.0

Commitments and contingencies (Note 14)
Redeemable noncontrolling interest		14.6		14.0		14.0

Stockholders’ Equity
Common stock, $1 par value (issued shares at April 29, 2018 – 536,431,204)		4,423.4		4,280.5		4,165.4		2,099.1		2,099.1		2,079.1
Common stock in treasury		(15,425.9)		(15,460.8)		(15,521.0)
Retained earnings		25,586.0		25,301.3		24,535.8		2,872.4		2,782.0		2,608.1
Accumulated other comprehensive income (loss)		(4,173.2)		(4,563.7)		(5,495.5)		(242.3)		(237.5)		(278.2)
Total Deere & Company stockholders' equity		10,410.3		9,557.3		7,684.7		4,729.2		4,643.6		4,409.0
Noncontrolling interests		9.7		3.2		9.1
Total stockholders’ equity		10,420.0		9,560.5		7,693.8		4,729.2		4,643.6		4,409.0
Total Liabilities and Stockholders’ Equity	$	33,903.2	$	30,738.4	$	27,721.5	$	44,278.0	$	42,596.4	$	40,915.0

* 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 Six Months Ended April 29, 2018 and April 30, 2017
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2018		2017		2018		2017
Cash Flows from Operating Activities
Net income	$	674.9	$	1,006.7	$	529.4	$	217.9
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (credit) for credit losses		9.2		(.2)		17.6		32.8
Provision for depreciation and amortization		483.8		427.0		529.3		476.9
Gain on sale of affiliates and investments		(13.2)		(281.4)
Undistributed earnings of unconsolidated subsidiaries and affiliates		(93.8)		59.8		(1.0)		(.6)
Provision (credit) for deferred income taxes		934.5		(118.8)		(330.2)		18.4
Changes in assets and liabilities:
Trade receivables		(188.5)		(87.7)
Inventories		(1,439.5)		(771.8)
Accounts payable and accrued expenses		578.0		200.0		84.2		18.0
Accrued income taxes payable/receivable		147.4		191.5		5.6		3.6
Retirement benefits		62.7		111.0		4.9		4.6
Other		(106.1)		(49.2)		72.0		104.8
Net cash provided by operating activities		1,049.4		686.9		911.8		876.4

Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						9,486.7		8,833.8
Proceeds from maturities and sales of marketable securities		3.6		7.9		20.2		33.4
Proceeds from sales of equipment on operating leases						748.6		786.4
Proceeds from sales of businesses and unconsolidated affiliates, net of cash sold		55.0		113.9
Cost of receivables acquired (excluding trade and wholesale)						(8,918.8)		(8,238.0)
Acquisitions of businesses, net of cash acquired		(5,171.1)
Purchases of marketable securities						(62.8)		(43.7)
Purchases of property and equipment		(351.6)		(252.2)		(.6)		(.8)
Cost of equipment on operating leases acquired						(1,409.3)		(1,355.6)
Increase in trade and wholesale receivables						(2,293.8)		(1,012.7)
Other		44.2		(18.1)		(47.0)		(.6)
Net cash used for investing activities		(5,419.9)		(148.5)		(2,476.8)		(997.8)

Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		(67.1)		(7.4)		266.2		190.5
Change in intercompany receivables/payables		(641.6)		(287.5)		641.6		287.5
Proceeds from long-term borrowings		107.1		19.1		3,970.6		2,642.5
Payments of long-term borrowings		(85.3)		(24.7)		(2,803.4)		(2,717.5)
Proceeds from issuance of common stock		198.6		383.6
Repurchases of common stock		(60.6)		(6.2)
Dividends paid		(386.9)		(379.5)		(439.1)		(280.2)
Other		(25.5)		(25.8)		(18.5)		(13.9)
Net cash provided by (used for) financing activities		(961.3)		(328.4)		1,617.4		108.9

Effect of Exchange Rate Changes on Cash and Cash Equivalents		152.3		(6.7)		(6.4)		(.8)

Net Increase (Decrease) in Cash and Cash Equivalents		(5,179.5)		203.3		46.0		(13.3)
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	$	2,988.9	$	3,343.8	$	1,212.5	$	1,182.0

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