UNCONSOLIDATED AFFILIATED COMPANIES

12 Months Ended

Oct. 31, 2015

UNCONSOLIDATED AFFILIATED COMPANIES

UNCONSOLIDATED AFFILIATED COMPANIES

10. UNCONSOLIDATED AFFILIATED COMPANIES

Unconsolidated affiliated companies are companies in which Deere & Company generally owns 20 percent to 50 percent of the outstanding voting shares. Deere & Company does not control these companies and accounts for its investments in them on the equity basis. The investments in these companies primarily consist of Bell Equipment Limited (32 percent ownership), Deere-Hitachi Construction Machinery Corporation (50 percent ownership), Deere-Hitachi Maquinas de Construcao do Brasil S.A. (50 percent ownership) and SiteOne Landscapes Supply, LLC. (35 percent ownership). The unconsolidated affiliated companies primarily manufacture or market equipment and landscapes products. Deere & Company’s share of the income or loss of these companies is reported in the consolidated income statement under “Equity in income (loss) of unconsolidated affiliates.” The investment in these companies is reported in the consolidated balance sheet under “Investments in unconsolidated affiliates.”

Combined financial information of the unconsolidated affiliated companies in millions of dollars follows:

Operations	2015		2014		2013
Sales	$	3,290	$	3,082	$	2,299
Net income		23		1		10
Deere & Company’s equity in net income (loss)		1		(8)

Financial Position	2015		2014
Total assets	$	2,139	$	2,101
Total external borrowings		660		648
Total net assets		878		842
Deere & Company’s share of the net assets		303		303

Consolidated retained earnings at October 31, 2015 include undistributed earnings of the unconsolidated affiliates of $165 million. Dividends from unconsolidated affiliates were $1 million in 2015, $1 million in 2014 and $10 million in 2013.

In the ordinary course of business, the company purchases components and finished goods and sells these products to the unconsolidated affiliated companies. Transactions with unconsolidated affiliated companies reported in the statement of consolidated income in millions of dollars follow:

	2015		2014		2013
Net sales	$	37	$	39	$	54
Purchases		1,284		1,415		1,427