
(20) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended April 28, 2019 and April 29, 2018
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2019		2018		2019		2018
Net Sales and Revenues
Net sales	$	10,272.8	$	9,747.0
Finance and interest income		25.1		27.8	$	909.7	$	812.5
Other income		213.6		202.9		72.4		64.9
Total		10,511.5		9,977.7		982.1		877.4

Costs and Expenses
Cost of sales		7,755.1		7,333.8
Research and development expenses		457.1		415.2
Selling, administrative and general expenses		795.2		799.5		153.6		141.5
Interest expense		43.5		78.2		311.7		231.2
Interest compensation to Financial Services		92.4		80.6
Other operating expenses		67.1		66.7		344.5		324.7
Total		9,210.4		8,774.0		809.8		697.4

Income of Consolidated Group before Income Taxes		1,301.1		1,203.7		172.3		180.0
Provision for income taxes		291.4		100.8		52.1		76.3
Income of Consolidated Group		1,009.7		1,102.9		120.2		103.7

Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		120.7		104.1		.5		.4
Other		5.9		2.7
Total		126.6		106.8		.5		.4
Net Income		1,136.3		1,209.7		120.7		104.1
Less: Net income attributable to noncontrolling interests		1.4		1.4
Net Income Attributable to Deere & Company	$	1,134.9	$	1,208.3	$	120.7	$	104.1

* 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 28, 2019 and April 29, 2018
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2019		2018		2019		2018
Net Sales and Revenues
Net sales	$	17,213.7	$	15,721.0
Finance and interest income		48.5		39.4	$	1,775.9	$	1,589.4
Other income		428.5		399.3		132.9		127.7
Total		17,690.7		16,159.7		1,908.8		1,717.1

Costs and Expenses
Cost of sales		13,187.2		12,038.8
Research and development expenses		863.8		772.0
Selling, administrative and general expenses		1,439.7		1,390.2		274.9		257.7
Interest expense		115.0		174.2		598.8		425.3
Interest compensation to Financial Services		161.5		142.2
Other operating expenses		138.5		138.9		669.5		635.9
Total		15,905.7		14,656.3		1,543.2		1,318.9

Income of Consolidated Group before Income Taxes		1,785.0		1,503.4		365.6		398.2
Provision (credit) for income taxes		435.5		1,364.7		92.0		(130.0)
Income of Consolidated Group		1,349.5		138.7		273.6		528.2

Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		274.6		529.4		1.0		1.2
Other		11.8		6.8
Total		286.4		536.2		1.0		1.2
Net Income		1,635.9		674.9		274.6		529.4
Less: Net income attributable to noncontrolling interests		2.5		1.7
Net Income Attributable to Deere & Company	$	1,633.4	$	673.2	$	274.6	$	529.4

* 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
	April 28		October 28		April 29		April 28		October 28		April 29
	2019		2018		2018		2019		2018		2018
Assets
Cash and cash equivalents	$	2,893.4	$	3,194.8	$	2,988.9	$	590.3	$	709.2	$	1,212.5
Marketable securities		6.9		8.2		16.9		538.2		481.9		462.4
Receivables from unconsolidated subsidiaries and affiliates		1,091.6		1,700.4		1,668.0
Trade accounts and notes receivable – net		1,607.8		1,373.7		1,515.9		7,554.2		4,906.4		6,436.0
Financing receivables – net		101.8		93.1		75.7		25,768.5		26,961.0		24,199.8
Financing receivables securitized – net		58.9		76.1		113.1		4,754.7		3,945.3		4,323.2
Other receivables		1,325.3		1,009.7		1,273.3		166.2		775.7		190.1
Equipment on operating leases – net								7,039.9		7,165.4		6,723.1
Inventories		7,160.9		6,148.9		6,888.9
Property and equipment – net		5,711.9		5,820.6		5,696.0		45.2		46.9		46.9
Investments in unconsolidated subsidiaries and affiliates		5,186.8		5,231.2		4,915.9		15.6		15.2		15.3
Goodwill		3,024.9		3,100.7		3,188.7
Other intangible assets – net		1,475.9		1,562.4		1,692.2
Retirement benefits		1,325.3		1,241.5		617.9		57.4		56.8		15.0
Deferred income taxes		1,574.9		1,502.6		2,065.5		72.8		69.4		76.4
Other assets		1,235.1		1,132.8		1,186.3		636.7		587.1		577.3
Total Assets	$	33,781.4	$	33,196.7	$	33,903.2	$	47,239.7	$	45,720.3	$	44,278.0

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	1,336.9	$	1,434.0	$	659.1	$	10,424.9	$	9,627.4	$	10,235.5
Short-term securitization borrowings		58.3		75.6		113.2		4,643.9		3,881.7		4,287.9
Payables to unconsolidated subsidiaries and affiliates		199.5		128.9		145.7		1,057.5		1,678.7		1,633.7
Accounts payable and accrued expenses		9,470.7		9,382.5		9,265.7		1,812.6		2,055.7		2,030.8
Deferred income taxes		460.9		496.8		462.9		661.5		823.0		523.2
Long-term borrowings		4,678.8		4,713.9		5,536.5		23,576.6		22,523.5		20,742.1
Retirement benefits and other liabilities		5,638.0		5,659.8		7,285.5		95.1		91.2		95.6
Total liabilities		21,843.1		21,891.5		23,468.6		42,272.1		40,681.2		39,548.8

Commitments and contingencies (Note 15)
Redeemable noncontrolling interest		14.3		14.0		14.6

Stockholders’ Equity
Common stock, $1 par value (issued shares at April 28, 2019 – 536,431,204)		4,559.1		4,474.2		4,423.4		2,106.9		2,099.5		2,099.1
Common stock in treasury		(16,738.5)		(16,311.8)		(15,425.9)
Retained earnings		28,708.8		27,553.0		25,586.0		3,227.5		3,257.2		2,872.4
Accumulated other comprehensive income (loss)		(4,609.9)		(4,427.6)		(4,173.2)		(366.8)		(317.6)		(242.3)
Total Deere & Company stockholders’ equity		11,919.5		11,287.8		10,410.3		4,967.6		5,039.1		4,729.2
Noncontrolling interests		4.5		3.4		9.7
Total stockholders’ equity		11,924.0		11,291.2		10,420.0		4,967.6		5,039.1		4,729.2
Total Liabilities and Stockholders’ Equity	$	33,781.4	$	33,196.7	$	33,903.2	$	47,239.7	$	45,720.3	$	44,278.0

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


SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF CASH FLOWS
For the Six Months Ended April 28, 2019 and April 29, 2018
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2019		2018		2019		2018
Cash Flows from Operating Activities
Net income	$	1,635.9	$	674.9	$	274.6	$	529.4
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		4.5		9.2		32.1		17.6
Provision for depreciation and amortization		525.2		483.8		557.3		529.3
Gain on sales of businesses				(13.2)
Undistributed earnings of unconsolidated subsidiaries and affiliates		29.8		(93.8)		(.8)		(1.0)
Provision (credit) for deferred income taxes		(117.7)		934.5		(164.5)		(330.2)
Changes in assets and liabilities:
Trade receivables and Equipment Operations' financing receivables		(271.1)		(188.5)
Inventories		(1,086.2)		(1,439.5)
Accounts payable and accrued expenses		247.4		578.0		53.0		84.2
Accrued income taxes payable/receivable		(344.1)		147.4		501.1		5.6
Retirement benefits		16.6		62.7		3.7		4.9
Other		67.7		(104.5)		99.6		71.9
Net cash provided by operating activities		708.0		1,051.0		1,356.1		911.7

Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						9,893.7		9,486.7
Proceeds from maturities and sales of marketable securities		5.3		3.6		25.0		20.2
Proceeds from sales of equipment on operating leases						823.4		748.6
Proceeds from sales of businesses, net of cash sold				55.0
Cost of receivables acquired (excluding trade and wholesale)						(9,422.9)		(8,918.8)
Acquisitions of businesses, net of cash acquired				(5,171.1)
Purchases of marketable securities		(2.0)				(57.6)		(62.8)
Purchases of property and equipment		(489.9)		(351.6)		(1.0)		(.6)
Cost of equipment on operating leases acquired						(1,340.5)		(1,409.3)
Increase in trade and wholesale receivables						(3,028.1)		(2,293.8)
Other		(51.3)		44.2		19.5		(52.6)
Net cash used for investing activities		(537.9)		(5,419.9)		(3,088.5)		(2,482.4)

Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		(130.7)		(67.1)		1,701.1		266.2
Change in intercompany receivables/payables		610.8		(641.6)		(610.8)		641.6
Proceeds from long-term borrowings		120.3		107.1		4,111.9		3,970.6
Payments of long-term borrowings		(157.5)		(85.3)		(3,269.3)		(2,803.4)
Proceeds from issuance of common stock		94.7		198.6
Repurchases of common stock		(480.4)		(60.6)
Dividends paid		(462.3)		(386.9)		(312.2)		(439.1)
Other		(36.1)		(25.5)		(12.1)		(18.5)
Net cash provided by (used for) financing activities		(441.2)		(961.3)		1,608.6		1,617.4

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		(26.9)		152.3		(7.9)		(6.4)

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		(298.0)		(5,177.9)		(131.7)		40.3
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		3,201.8		8,174.4		813.5		1,292.4
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	2,903.8	$	2,996.5	$	681.8	$	1,332.7

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