
(20) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended July 29, 2018 and July 30, 2017
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2018		2017		2018		2017
Net Sales and Revenues
Net sales	$	9,286.4	$	6,833.0
Finance and interest income		30.9		20.3	$	851.9	$	744.8
Other income		231.2		266.6		66.8		63.4
Total		9,548.5		7,119.9		918.7		808.2

Costs and Expenses
Cost of sales		7,153.1		5,249.0
Research and development expenses		415.7		336.8
Selling, administrative and general expenses		768.9		645.7		145.6		154.6
Interest expense		51.4		65.8		249.8		161.3
Interest compensation to Financial Services		86.2		65.4
Other operating expenses		80.3		67.2		326.1		292.4
Total		8,555.6		6,429.9		721.5		608.3

Income of Consolidated Group before Income Taxes		992.9		690.0		197.2		199.9
Provision for income taxes		242.3		184.2		46.4		69.0
Income of Consolidated Group		750.6		505.8		150.8		130.9

Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		151.2		131.2		.4		.3
Other		9.5		5.3
Total		160.7		136.5		.4		.3
Net Income		911.3		642.3		151.2		131.2
Less: Net income attributable to noncontrolling interests		1.0		.5
Net Income Attributable to Deere & Company	$	910.3	$	641.8	$	151.2	$	131.2

* 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 Nine Months Ended July 29, 2018 and July 30, 2017
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2018		2017		2018		2017
Net Sales and Revenues
Net sales	$	25,007.4	$	18,790.7
Finance and interest income		70.3		60.3	$	2,441.3	$	2,148.6
Other income		630.5		864.2		194.5		182.5
Total		25,708.2		19,715.2		2,635.8		2,331.1

Costs and Expenses
Cost of sales		19,191.9		14,459.1
Research and development expenses		1,187.7		974.2
Selling, administrative and general expenses		2,159.2		1,835.2		403.3		419.2
Interest expense		225.5		199.6		675.0		479.4
Interest compensation to Financial Services		228.5		171.5
Other operating expenses		219.0		215.9		962.1		905.0
Total		23,211.8		17,855.5		2,040.4		1,803.6

Income of Consolidated Group before Income Taxes		2,496.4		1,859.7		595.4		527.5
Provision (credit) for income taxes		1,607.0		569.2		(83.6)		179.5
Income of Consolidated Group		889.4		1,290.5		679.0		348.0

Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		680.6		349.1		1.6		1.1
Other		16.2		8.9
Total		696.8		358.0		1.6		1.1
Net Income		1,586.2		1,648.5		680.6		349.1
Less: Net income (loss) attributable to noncontrolling interests		2.6		(.3)
Net Income Attributable to Deere & Company	$	1,583.6	$	1,648.8	$	680.6	$	349.1

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


SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEET
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	July 29		October 29		July 30		July 29		October 29		July 30
	2018		2017		2017		2018		2017		2017
Assets
Cash and cash equivalents	$	2,802.9	$	8,168.4	$	5,338.4	$	1,120.4	$	1,166.5	$	1,199.0
Marketable securities		11.4		20.2		21.4		476.8		431.4		404.7
Receivables from unconsolidated subsidiaries and affiliates		1,794.4		1,032.1		2,570.9
Trade accounts and notes receivable – net		1,586.2		876.3		758.8		6,079.5		4,134.1		4,828.8
Financing receivables – net		78.0						25,135.0		25,104.1		23,722.1
Financing receivables securitized – net		90.2						4,571.5		4,158.8		4,923.1
Other receivables		1,130.6		1,045.6		708.0		176.1		195.5		147.1
Equipment on operating leases – net								6,804.9		6,593.7		6,235.6
Inventories		6,239.3		3,904.1		4,252.9
Property and equipment – net		5,592.2		5,017.3		4,919.1		46.3		50.4		49.4
Investments in unconsolidated subsidiaries and affiliates		4,992.1		4,812.3		4,800.4		15.1		13.8		13.8
Goodwill		3,046.5		1,033.3		845.8
Other intangible assets – net		1,580.8		218.0		92.0
Retirement benefits		727.2		538.1		219.1		13.7		16.9		17.9
Deferred income taxes		1,983.9		3,098.8		3,720.6		68.1		79.8		68.8
Other assets		1,148.3		973.9		948.5		530.4		651.4		644.7
Total Assets	$	32,804.0	$	30,738.4	$	29,195.9	$	45,037.8	$	42,596.4	$	42,255.0

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	789.5	$	375.5	$	342.8	$	10,215.0	$	9,659.8	$	8,676.6
Short-term securitization borrowings		90.2						4,437.5		4,118.7		4,780.9
Payables to unconsolidated subsidiaries and affiliates		110.8		121.9		77.8		1,766.5		996.2		2,542.4
Accounts payable and accrued expenses		9,046.9		7,718.1		7,213.5		1,901.8		1,827.1		1,611.2
Deferred income taxes		431.5		115.6		105.2		500.1		857.7		806.5
Long-term borrowings		5,525.7		5,490.9		4,523.6		21,312.3		20,400.4		19,150.7
Retirement benefits and other liabilities		6,429.5		7,341.9		8,344.1		96.1		92.9		93.4
Total liabilities		22,424.1		21,163.9		20,607.0		40,229.3		37,952.8		37,661.7

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

Stockholders’ Equity
Common stock, $1 par value (issued shares at July 29, 2018 – 536,431,204)		4,450.8		4,280.5		4,245.1		2,099.4		2,099.1		2,099.1
Common stock in treasury		(15,813.5)		(15,460.8)		(15,477.3)
Retained earnings		26,272.3		25,301.3		24,984.2		3,008.9		2,782.0		2,699.2
Accumulated other comprehensive income (loss)		(4,553.3)		(4,563.7)		(5,179.8)		(299.8)		(237.5)		(205.0)
Total Deere & Company stockholders' equity		10,356.3		9,557.3		8,572.2		4,808.5		4,643.6		4,593.3
Noncontrolling interests		9.6		3.2		2.7
Total stockholders’ equity		10,365.9		9,560.5		8,574.9		4,808.5		4,643.6		4,593.3
Total Liabilities and Stockholders’ Equity	$	32,804.0	$	30,738.4	$	29,195.9	$	45,037.8	$	42,596.4	$	42,255.0

* 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 (Continued)
STATEMENT OF CASH FLOWS
For the Nine Months Ended July 29, 2018 and July 30, 2017
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2018		2017		2018		2017
Cash Flows from Operating Activities
Net income	$	1,586.2	$	1,648.5	$	680.6	$	349.1
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		18.8		1.5		47.3		75.3
Provision for depreciation and amortization		740.8		640.1		800.6		725.1
Gain on sale of affiliates and investments		(25.1)		(375.1)
Undistributed earnings of unconsolidated subsidiaries and affiliates		(235.2)		(37.3)		(1.4)		(1.0)
Provision (credit) for deferred income taxes		986.0		(145.1)		(345.2)		67.6
Changes in assets and liabilities:
Trade receivables		(331.0)		(104.2)
Inventories		(975.1)		(829.4)
Accounts payable and accrued expenses		519.4		471.8		66.1		28.9
Accrued income taxes payable/receivable		230.9		150.9		(55.2)		16.9
Retirement benefits		(821.5)		166.6		6.8		6.5
Other		(87.8)		(50.9)		141.1		116.0
Net cash provided by operating activities		1,606.4		1,537.4		1,340.7		1,384.4

Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						13,245.7		12,275.9
Proceeds from maturities and sales of marketable securities		9.0		296.3		46.8		92.5
Proceeds from sales of equipment on operating leases						1,115.6		1,086.6
Proceeds from sales of businesses and unconsolidated affiliates, net of cash sold		133.0		113.9
Cost of receivables acquired (excluding trade and wholesale)						(13,830.0)		(12,366.5)
Acquisitions of businesses, net of cash acquired		(5,170.9)
Purchases of marketable securities						(101.4)		(77.0)
Purchases of property and equipment		(569.1)		(372.5)		(1.5)		(1.2)
Cost of equipment on operating leases acquired						(2,189.6)		(2,096.2)
Increase in trade and wholesale receivables						(2,329.7)		(1,070.9)
Other		42.1		(55.7)		(33.4)		(18.7)
Net cash used for investing activities		(5,555.9)		(18.0)		(4,077.5)		(2,175.5)

Cash Flows from Financing Activities
Increase in total short-term borrowings		119.0		42.3		1,064.4		1,606.6
Change in intercompany receivables/payables		(796.8)		634.9		796.8		(634.9)
Proceeds from long-term borrowings		159.4		64.8		5,579.7		4,299.7
Payments of long-term borrowings		(117.6)		(44.5)		(4,254.2)		(4,161.1)
Proceeds from issuance of common stock		208.7		488.6
Repurchases of common stock		(454.0)		(6.2)
Dividends paid		(582.6)		(571.3)		(453.7)		(320.2)
Other		(41.7)		(43.2)		(24.8)		.3
Net cash provided by (used for) financing activities		(1,505.6)		565.4		2,708.2		790.4

Effect of Exchange Rate Changes on Cash and Cash Equivalents		89.6		113.1		(17.5)		4.4

Net Increase (Decrease) in Cash and Cash Equivalents		(5,365.5)		2,197.9		(46.1)		3.7
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	$	2,802.9	$	5,338.4	$	1,120.4	$	1,199.0

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