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SEGMENT AND GEOGRAPHIC AREA DATA | 12 Months Ended
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Oct. 31, 2021
SEGMENT AND GEOGRAPHIC AREA DATA |
SEGMENT REPORTING | 28. SEGMENT AND GEOGRAPHIC AREA DATA In fiscal year 2021, the company implemented a new operating model and reporting structure. With this change, the company’s agriculture and turf operations were divided into two new segments: production and precision agriculture and small agriculture and turf. There were no changes to the construction and forestry and financial services segments. This presentation is consistent with how the chief operating decision maker assesses the performance of the segments and makes decisions about resource allocations. The company’s operations are presently organized and reported in four business segments described as follows: The production and precision agriculture segment defines, develops, and delivers global equipment and technology solutions to unlock customer value for production-scale growers of large grains, small grains, cotton, and sugar. Main products include large and certain mid-size tractors, combines, cotton pickers, sugarcane harvesters and loaders, and soil preparation, seeding, application and crop care equipment. The small agriculture and turf segment defines, develops, and delivers global equipment and technology solutions to unlock customer value for dairy and livestock producers, high-value crop producers, and turf and utility customers. The segment’s primary products include certain mid-size and small tractors, as well as hay and forage equipment, riding and commercial lawn equipment, golf course equipment, and utility vehicles. The construction and forestry segment defines, develops, and delivers a broad range of machines and technology solutions organized along the earthmoving, forestry, and roadbuilding production systems. The segment’s primary products include crawler dozers and loaders, four-wheel-drive loaders, excavators, skid-steer loaders, milling machines, and log harvesters. The products and services produced by the segments above are marketed primarily through independent retail dealer networks and major retail outlets, and, as it relates to roadbuilding products in certain markets outside the U.S. and Canada, primarily through company-owned sales and service subsidiaries. The financial services segment primarily finances sales and leases by John Deere dealers of new and used production and precision agriculture equipment, small agriculture and turf equipment, and construction and forestry equipment. In addition, the financial services segment provides wholesale financing to dealers of the foregoing equipment, finances retail revolving charge accounts, and offers extended equipment warranties. Because of integrated manufacturing operations and common administrative and marketing support, a substantial number of allocations must be made to determine operating segment and geographic area data. Intersegment sales and revenues represent sales of components and finance charges, which are generally based on market prices. At the beginning of fiscal year 2021, the company reclassified goodwill from identifiable operating segment assets to corporate assets for segment reporting, as goodwill is no longer considered in evaluating the operating performance of the segments. Prior period amounts have been restated for a consistent presentation. Information relating to operations by operating segment in millions of dollars follows for the years ended October 31, 2021, November 1, 2020 and November 3, 2019. In addition to the following unaffiliated sales and revenues by segment, intersegment sales and revenues in 2021, 2020, and 2019 were as follows: production and precision agriculture net sales of $27 million, $22 million, and $31 million; small agriculture and turf net sales of $11 million, $2 million, and $3 million; construction and forestry had no intersegment sales in 2021, $1 million in 2020, and $1 million in 2019; and financial services revenues of $246 million, $278 million, and $348 million, respectively. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
OPERATING SEGMENTS | ​ | 2021 |  | 2020 |  | 2019 |
Net sales and revenues |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Unaffiliated customers: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Production & precision ag net sales | ​ | $ | 16,509 | ​ | $ | 12,962 | ​ | $ | 13,364 | ​
Small ag & turf net sales | ​ | ​ | 11,860 | ​ | ​ | 9,363 | ​ | ​ | 10,302 | ​
Construction & forestry net sales | ​ |  | 11,368 | ​ |  | 8,947 | ​ |  | 11,220 | ​
Financial services revenues | ​ |  | 3,548 | ​ |  | 3,589 | ​ |  | 3,621 | ​
Other revenues* | ​ |  | 739 | ​ |  | 679 | ​ |  | 751 | ​
Total | ​ | $ | 44,024 | ​ | $ | 35,540 | ​ | $ | 39,258 | ​
* Other revenues are primarily the equipment operations’ revenues for finance and interest income, and other income. ​ ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
OPERATING SEGMENTS |  | 2021 |  | 2020 |  | 2019 |
Operating profit |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Production & precision ag | ​ | $ | 3,334 | ​ | $ | 1,969 | ​ | $ | 1,729 | ​
Small ag & turf | ​ | ​ | 2,045 | ​ | ​ | 1,000 | ​ | ​ | 777 | ​
Construction & forestry | ​ |  | 1,489 | ​ |  | 590 | ​ |  | 1,215 | ​
Financial services* | ​ |  | 1,144 | ​ |  | 746 | ​ |  | 694 | ​
Total operating profit* | ​ |  | 8,012 | ​ |  | 4,305 | ​ |  | 4,415 | ​
Interest income | ​ |  | 82 | ​ |  | 62 | ​ |  | 85 | ​
Interest expense | ​ |  | (368) | ​ |  | (329) | ​ |  | (256) | ​
Foreign exchange gains (losses) from equipment operations’ financing activities | ​ |  | (45) | ​ |  | 17 | ​ |  | (22) | ​
Pension and OPEB benefit (cost), excluding service cost component | ​ | ​ | 183 | ​ | ​ | 31 | ​ | ​ | 67 | ​
Corporate expenses – net | ​ |  | (241) | ​ |  | (251) | ​ |  | (180) | ​
Income taxes | ​ |  | (1,658) | ​ |  | (1,082) | ​ |  | (852) | ​
Total | ​ |  | (2,047) | ​ |  | (1,552) | ​ |  | (1,158) | ​
Net income | ​ |  | 5,965 | ​ |  | 2,753 | ​ |  | 3,257 | ​
Less: Net income attributable to noncontrolling interests | ​ |  | 2 | ​ | ​ | 2 | ​ | ​ | 4 | ​
Net income attributable to Deere & Company | ​ | $ | 5,963 | ​ | $ | 2,751 | ​ | $ | 3,253 | ​
* Operating profit of the financial services business segment includes the effect of its interest expense and foreign exchange gains or losses. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest income* |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Production & precision ag | ​ | $ | 21 | ​ | $ | 22 | ​ | $ | 16 | ​
Small ag & turf | ​ | ​ | 21 | ​ | ​ | 16 | ​ | ​ | 6 | ​
Construction & forestry | ​ |  | 10 | ​ |  | 12 | ​ |  | 11 | ​
Financial services | ​ |  | 1,999 | ​ |  | 2,122 | ​ |  | 2,316 | ​
Corporate | ​ |  | 82 | ​ |  | 62 | ​ |  | 85 | ​
Intercompany | ​ |  | (279) | ​ |  | (272) | ​ |  | (360) | ​
Total | ​ | $ | 1,854 | ​ | $ | 1,962 | ​ | $ | 2,074 | ​
* Does not include finance rental income for equipment on operating leases. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest expense |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Production & precision ag | ​ | $ | 84 | ​ | $ | 76 | ​ | $ | 87 | ​
Small ag & turf | ​ | ​ | 87 | ​ | ​ | 111 | ​ | ​ | 158 | ​
Construction & forestry | ​ |  | 46 | ​ |  | 61 | ​ |  | 91 | ​
Financial services | ​ |  | 687 | ​ |  | 942 | ​ |  | 1,234 | ​
Corporate | ​ |  | 368 | ​ |  | 329 | ​ |  | 256 | ​
Intercompany | ​ |  | (279) | ​ |  | (272) | ​ |  | (360) | ​
Total | ​ | $ | 993 | ​ | $ | 1,247 | ​ | $ | 1,466 | ​
​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Depreciation* and amortization expense |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Production & precision ag | ​ | $ | 495 | ​ | $ | 480 | ​ | $ | 475 | ​
Small ag & turf | ​ | ​ | 245 | ​ | ​ | 247 | ​ | ​ | 248 | ​
Construction & forestry | ​ |  | 303 | ​ |  | 289 | ​ |  | 292 | ​
Financial services | ​ |  | 1,140 | ​ |  | 1,227 | ​ |  | 1,135 | ​
Intercompany | ​ | ​ | (133) | ​ | ​ | (125) | ​ | ​ | (131) | ​
Total | ​ | $ | 2,050 | ​ | $ | 2,118 | ​ | $ | 2,019 | ​
* Includes depreciation for equipment on operating leases. ​ (continued) ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
OPERATING SEGMENTS |  | 2021 |  | 2020 |  | 2019 |
Equity in income (loss) of unconsolidated affiliates |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Small ag & turf | ​ | $ | 2 | ​ | $ | 2 | ​ | $ | 6 | ​
Construction & forestry | ​ |  | 16 | ​ | ​ | (52) | ​ | ​ | 14 | ​
Financial services | ​ |  | 3 | ​ |  | 2 | ​ |  | 1 | ​
Total | ​ | $ | 21 | ​ | $ | (48) | ​ | $ | 21 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Identifiable operating assets |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Production & precision ag | ​ | $ | 7,021 | ​ | $ | 5,708 | ​ | $ | 6,149 | ​
Small ag & turf | ​ | ​ | 3,959 | ​ | ​ | 3,266 | ​ | ​ | 3,656 | ​
Construction & forestry | ​ |  | 6,457 | ​ |  | 6,322 | ​ |  | 7,044 | ​
Financial services | ​ |  | 51,624 | ​ |  | 48,719 | ​ |  | 48,483 | ​
Corporate* | ​ |  | 15,053 | ​ |  | 11,076 | ​ |  | 7,679 | ​
Total | ​ | $ | 84,114 | ​ | $ | 75,091 | ​ | $ | 73,011 | ​
* Corporate assets are primarily the equipment operations’ retirement benefits, deferred income tax assets, goodwill, marketable securities, and cash and cash equivalents. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Capital additions |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Production & precision ag | ​ | $ | 458 | ​ | $ | 431 | ​ | $ | 595 | ​
Small ag & turf | ​ | ​ | 253 | ​ | ​ | 223 | ​ | ​ | 264 | ​
Construction & forestry | ​ |  | 183 | ​ |  | 157 | ​ |  | 245 | ​
Financial services | ​ |  | 3 | ​ |  | 4 | ​ |  | 3 | ​
Total | ​ | $ | 897 | ​ | $ | 815 | ​ | $ | 1,107 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Investments in unconsolidated affiliates |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Production & precision ag | ​ | ​ | ​ | ​ | $ | 1 | ​ | $ | 1 | ​
Small ag & turf | ​ | $ | 31 | ​ | ​ | 29 | ​ | ​ | 27 | ​
Construction & forestry | ​ |  | 122 | ​ |  | 144 | ​ |  | 171 | ​
Financial services | ​ |  | 22 | ​ |  | 19 | ​ |  | 16 | ​
Total | ​ | $ | 175 | ​ | $ | 193 | ​ | $ | 215 | ​
​ ​ The company views and has historically disclosed its operations as consisting of two geographic areas (the U.S. and Canada, and outside the U.S. and Canada) for net sales and revenues and operating profit shown below in millions of dollars. No individual foreign country’s net sales and revenues were material for disclosure purposes. For property and equipment, a material amount does reside in the country of Germany, separately disclosed below in millions of dollars. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
GEOGRAPHIC AREAS | ​ | 2021 | ​ | 2020 | ​ | 2019 |
Net sales and revenues |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Unaffiliated customers: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. and Canada | ​ | $ | 25,829 | ​ | $ | 21,386 | ​ | $ | 23,746 | ​
Outside U.S. and Canada | ​ | ​ | 18,195 | ​ | ​ | 14,154 | ​ | ​ | 15,512 | ​
Total | ​ | $ | 44,024 | ​ | $ | 35,540 | ​ | $ | 39,258 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating profit |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
U.S. and Canada | ​ | $ | 4,774 | ​ | $ | 2,775 | ​ | $ | 2,841 | ​
Outside U.S. and Canada | ​ | ​ | 3,238 | ​ | ​ | 1,530 | ​ | ​ | 1,574 | ​
Total | ​ | $ | 8,012 | ​ | $ | 4,305 | ​ | $ | 4,415 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Property and equipment |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
U.S. and Canada | ​ | $ | 3,164 | ​ | $ | 3,178 | ​ | $ | 3,197 | ​
Germany | ​ |  | 1,096 | ​ |  | 1,113 | ​ |  | 1,137 | ​
Other countries | ​ |  | 1,560 | ​ |  | 1,526 | ​ |  | 1,639 | ​
Total | ​ | $ | 5,820 | ​ | $ | 5,817 | ​ | $ | 5,973 | ​
​

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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