Pension and Other Postretirement Benefits

6 Months Ended

Apr. 30, 2012

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

(10)The Company is a participating employer in certain Deere & Company sponsored defined benefit pension plans for employees in the U.S. and certain defined benefit pension plans outside the U.S. These pension plans provide for benefits that are based primarily on years of service and employee compensation. Pension expense is actuarially determined based on the Company’s employees included in the plan. The Company’s pension expense amounted to $1.4 million for the second quarter and $3.1 million for the first six months of 2012, compared with $1.4 million and $2.6 million for the same periods last year. The accumulated benefit obligation and plan net assets for the employees of the Company are not determined separately from Deere & Company. The Company generally provides defined benefit health care and life insurance plans for retired employees in the U.S. as a participating employer in Deere & Company’s sponsored plans. Health care and life insurance benefits expense is actuarially determined based on the Company’s employees included in the plans and amounted to $1.4 million for the second quarter and $3.9 million for the first six months of 2012, compared with $2.0 million and $4.0 million for the same periods last year. Further disclosure for these plans is included in Deere & Company’s Form 10-Q for the quarter ended April 30, 2012.