EX-12 3 exhibit_12.htm DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exhibit 12

EXHIBIT 12

DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

Nine Months Ended
July 31,

 

Year Ended October 31,

 

2002

 

2001

 

2001

 

 

2000

 

1999

 

1998

 

1997

 

(In thousand of dollars)

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income of consolidated group before income    taxes

$

475,475

 

$

443,802

 

$

(24,757)

 

$

777,507

 

$

365,135

 

$

1,560,032

 

$

1,507,070

 

Dividends received from less-than-fifty percent    owned affiliates

1,043

 

815

 

1,675

 

3,065

 

5,734

 

5,555

 

3,591

 

Fixed charges excluding capitalized interest

493,390

 

601,405

 

787,737

 

693,626

 

571,949

 

531,817

 

433,673

 

Total earnings

$

969,908

 

$

1,046,022

 

$

764,655

 

$

1,474,198

 

$

942,818

 

$

2,097,404

 

$

1,944,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense of consolidated group    including capitalized interest

$

477,217

 

$

588,942

 

$

766,254

 

$

677,424

 

$

557,740

 

$

521,418

 

$

422,588

 

Portion of rental charges deemed to be interest

16,522

 

12,842

 

22,030

 

17,122

 

15,347

 

12,451

 

11,497

 

Total fixed charges

$

493,739

 

$

601,784

 

$

788,284

 

$

694,546

 

$

573,087

 

$

533,869

 

$

434,085

Ratio of earnings to fixed charges*

1.96

 

1.74

 

**

 

2.12

 

1.65

 

3.93

 

4.48

 

The computation of the ratio of earnings to fixed charges is based on applicable amounts of the Company and its consolidated subsidiaries plus dividends received from less-than-fifty percent owned affiliates. "Earnings" consist of income before income taxes, the cumulative effect of changes in accounting and fixed charges excluding capitalized interest. "Fixed charges" consist of interest on indebtedness, amortization of debt discount and expense, an estimated amount of rental expense which is deemed to be representative of the interest factor, and capitalized interest.

*

The Company has not issued preferred stock. Therefore, the ratios of earnings to combined fixed charges and preferred stock dividends are the same as the ratios presented above.

**

For the year ended October 31, 2001, earnings available for fixed charges coverage were $24 million less than the amount required for a ratio of earnings to fixed charges of 1.0.

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