EX-12 8 dex12.htm COMPUTATION OF RATIO OF EARNINGS COMPUTATION OF RATIO OF EARNINGS
 
EXHIBIT 12
 
 
DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands of dollars)
 
    
Year Ended October 31
    
2002
   
2001
     
2000
   
1999
   
1998
Earnings:
                                     
Income of consolidated group before income taxes and changes in accounting
   
$
602,705
   
$
(24,757
)
   
$
777,507
   
$
365,135
   
$
1,560,032
Dividends received from less than fifty percent owned affiliates
   
 
2,236
   
 
1,675
 
   
 
3,065
   
 
5,734
   
 
5,555
Fixed charges excluding capitalized interest
   
 
659,263
   
 
787,737
 
   
 
693,626
   
 
571,949
   
 
531,817
    
  
  
  
  
Total earnings
   
$
1,264,204
   
$
764,655
 
   
$
1,474,198
   
$
942,818
   
$
2,097,404
    
  
  
  
  
Fixed charges:
                                     
Interest expense of consolidated group including capitalized interest
   
$
637,571
   
$
766,254
 
   
$
677,424
   
$
557,740
   
$
521,418
Portion of rental charges deemed to be interest
   
 
22,145
   
 
22,030
 
   
 
17,122
   
 
15,347
   
 
12,451
    
  
  
  
  
Total fixed charges
   
$
659,716
   
$
788,284
 
   
$
694,546
   
$
573,087
   
$
533,869
    
  
  
  
  
Ratio of earnings to fixed charges*
   
 
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, 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.