Unconsolidated Affiliated Company

12 Months Ended

Oct. 31, 2013

Note 23. Unconsolidated Affiliated Company

The Capital Corporation’s investment in an unconsolidated affiliated company consists of a 50% ownership in John Deere Financial S.A.S., a joint venture in France that primarily offers lease financing to customers. The Capital Corporation does not control the joint venture and accounts for its investment in the joint venture on the equity basis. The Company’s share of the income or loss of this joint venture is reported in the consolidated income statement under “Equity in income of unconsolidated affiliate.” The investment in this joint venture is reported in the consolidated balance sheet under “Investment in unconsolidated affiliate.”

Summarized financial information of the unconsolidated affiliated company was as follows (in millions of dollars):

	Year Ended October 31
	2013		2012		2011
Operations:
Total revenue	$	11.9	$	11.2	$	9.9
Net income	2.2		2.8		2.3
The Company’s equity in net income	1.1		1.4		1.2

	October 31
	2013		2012
Financial Position:
Total assets	$	189.2	$	137.2
Total external borrowings	165.7		110.7
Total net assets	20.5		17.4
The Company’s share of net assets	10.2		8.7

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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