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

 

Six Months Ended
April 30,

 

Year Ended October 31,

 

2003

 

2002

 

2002

 

2001

 

2000

 

1999

 

1998

 

(In thousand of dollars)

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income of consolidated group before income taxes

$

503,676

 

$

186,669

 

$

602,705

 

$

(24,757

)

$

777,507

 

$

365,135

 

$

1,560,032

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends received from less-than-fifty percent
   owned affiliates

410

 

993

 

2,236

 

1,675

 

3,065

 

5,734

 

5,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges excluding capitalized interest

323,597

 

329,579

 

659,263

 

787,737

 

693,626

 

571,949

 

531,817

 

Total earnings

$

827,683

 

$

517,241

 

$

1,264,204

 

$

764,655

 

$

1,474,198

 

$

942,818

 

$

2,097,404

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense of consolidated group
   including capitalized interest

$

312,548

 

$

318,762

 

$

637,571

 

$

766,254

 

$

677,424

 

$

557,740

 

$

521,418

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portion of rental charges deemed to be interest

11,073

11,015

22,145

22,030

17,122

15,347

12,451

Total fixed charges

$

323,621

$

329,777

$

659,716

$

788,284

$

694,546

$

573,087

$

533,869

Ratio of earnings to fixed charges*

2.56

1.57

1.92

**

2.12

1.65

3.93

 

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 that 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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