d31. SUPPLEMENTAL CONSOLIDATING DATA


INCOME STATEMENT
For the Years Ended October 31, 2016, 2015 and 2014
(In millions of dollars)
	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2016		2015		2014		2016		2015		2014
Net Sales and Revenues
Net sales	$	23,387.3	$	25,775.2	$	32,960.6
Finance and interest income		61.1		77.0		76.5	$	2,690.1	$	2,557.0	$	2,475.0
Other income		653.7		602.7		622.6		229.0		258.9		330.2
Total		24,102.1		26,454.9		33,659.7		2,919.1		2,815.9		2,805.2

Costs and Expenses
Cost of sales		18,250.8		20,145.2		24,777.8
Research and development expenses		1,389.1		1,425.1		1,452.0
Selling, administrative and general expenses		2,262.5		2,393.8		2,765.1		508.5		487.3		529.2
Interest expense		250.5		272.8		289.4		536.5		455.0		430.9
Interest compensation to Financial Services		216.6		204.8		212.1
Other operating expenses		215.7		195.0		285.4		1,167.0		911.7		925.6
Total		22,585.2		24,636.7		29,781.8		2,212.0		1,854.0		1,885.7

Income of Consolidated Group before Income Taxes		1,516.9		1,818.2		3,877.9		707.1		961.9		919.5
Provision for income taxes		459.0		509.9		1,329.6		241.1		330.2		296.9
Income of Consolidated Group		1,057.9		1,308.3		2,548.3		466.0		631.7		622.6
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services		467.6		632.9		624.5		1.6		1.2		1.9
Other		(4.0)		(.3)		(9.5)
Total		463.6		632.6		615.0		1.6		1.2		1.9
Net Income		1,521.5		1,940.9		3,163.3		467.6		632.9		624.5
Less: Net income (loss) attributable to noncontrolling interests		(2.4)		.9		1.6
Net Income Attributable to Deere & Company	$	1,523.9	$	1,940.0	$	3,161.7	$	467.6	$	632.9	$	624.5

* Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. The consolidated group data in the “Equipment Operations” income statement reflect the results of the agriculture and turf operations and construction and forestry operations. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

31. SUPPLEMENTAL CONSOLIDATING DATA (continued)


BALANCE SHEET
As of October 31, 2016 and 2015
(In millions of dollars except per share amounts)
	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2016		2015		2016		2015
ASSETS
Cash and cash equivalents	$	3,140.5	$	2,900.0	$	1,195.3	$	1,262.2
Marketable securities		34.2		47.7		419.3		389.7
Receivables from unconsolidated subsidiaries and affiliates		3,150.1		2,428.7
Trade accounts and notes receivable - net		654.2		485.2		3,370.5		3,553.1
Financing receivables - net		.4		.9		23,701.9		24,808.1
Financing receivables securitized - net						5,126.5		4,834.6
Other receivables		855.4		849.5		164.0		152.9
Equipment on operating leases - net						5,901.5		4,970.4
Inventories		3,340.5		3,817.0
Property and equipment - net		5,118.5		5,126.2		52.1		55.3
Investments in unconsolidated subsidiaries and affiliates		4,697.0		4,817.6		11.9		10.5
Goodwill		815.7		726.0
Other intangible assets - net		104.1		63.6
Retirement benefits		93.6		211.9		20.5		25.0
Deferred income taxes		3,556.0		3,092.0		75.5		67.9
Other assets		855.8		807.3		840.1		779.1
Total Assets	$	26,416.0	$	25,373.6	$	40,879.1	$	40,908.8

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES
Short-term borrowings	$	249.0	$	464.3	$	6,663.2	$	7,962.3
Short-term securitization borrowings						5,002.5		4,590.0
Payables to unconsolidated subsidiaries and affiliates		81.5		80.6		3,133.6		2,395.4
Accounts payable and accrued expenses		6,661.2		6,801.2		1,595.2		1,511.2
Deferred income taxes		87.3		86.8		745.9		466.6
Long-term borrowings		4,586.2		4,460.6		19,173.5		19,372.2
Retirement benefits and other liabilities		8,206.0		6,722.5		89.0		86.4
Total liabilities		19,871.2		18,616.0		36,402.9		36,384.1

Commitments and contingencies (Note 22)
Redeemable noncontrolling interest (Note 4)		14.0

STOCKHOLDERS’ EQUITY
Common stock, $1 par value (authorized – 1,200,000,000 shares; issued – 536,431,204 shares in 2016 and 2015), at paid-in amount		3,911.8		3,825.6		2,079.1		2,050.8
Common stock in treasury, 221,663,380 shares in 2016 and 219,743,893 shares in 2015, at cost		(15,677.1)		(15,497.6)
Retained earnings		23,911.3		23,144.8		2,670.3		2,764.8
Accumulated other comprehensive income (loss)		(5,626.0)		(4,729.4)		(273.2)		(290.9)
Total Deere & Company stockholders’ equity		6,520.0		6,743.4		4,476.2		4,524.7
Noncontrolling interests		10.8		14.2
Total stockholders’ equity		6,530.8		6,757.6		4,476.2		4,524.7
Total Liabilities and Stockholders’ Equity	$	26,416.0	$	25,373.6	$	40,879.1	$	40,908.8

* Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

31. SUPPLEMENTAL CONSOLIDATING DATA (continued)


STATEMENT OF CASH FLOWS
For the Years Ended October 31, 2016, 2015 and 2014
(In millions of dollars)
	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2016		2015		2014		2016		2015		2014
Cash Flows from Operating Activities
Net income	$	1,521.5	$	1,940.9	$	3,163.3	$	467.6	$	632.9	$	624.5
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		8.2		5.5		2.9		86.1		49.9		35.2
Provision for depreciation and amortization		803.4		791.8		795.7		846.7		688.5		574.9
Impairment charges		25.4		15.3		95.9		59.7		19.5
Undistributed earnings of unconsolidated subsidiaries and affiliates		94.0		46.6		(463.4)		(1.5)		(1.0)		(1.7)
Provision (credit) for deferred income taxes		13.2		(139.8)		(236.4)		269.5		121.4		(43.7)
Changes in assets and liabilities:
Trade receivables		(175.3)		113.4		231.5
Insurance receivables										333.4		(149.9)
Inventories		578.4		(17.0)		496.2
Accounts payable and accrued expenses		(169.6)		(253.8)		(277.0)		40.6		(245.4)		263.3
Accrued income taxes payable/receivable		12.8		(133.0)		330.5		(11.2)		(4.6)		12.1
Retirement benefits		232.4		414.3		323.0		6.2		13.2		13.9
Other		(38.0)		271.1		70.0		97.1		(25.7)		(7.7)
Net cash provided by operating activities		2,906.4		3,055.3		4,532.2		1,860.8		1,582.1		1,320.9

Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)								15,831.4		16,266.1		16,772.0
Proceeds from maturities and sales of marketable securities		81.9		700.1		1,000.1		87.5		160.6		22.4
Proceeds from sales of equipment on operating leases								1,256.2		1,049.4		1,091.5
Proceeds from sales of businesses and unconsolidated affiliates, net of cash sold		81.1				345.8				149.2
Cost of receivables acquired (excluding trade and wholesale)								(15,168.2)		(16,327.8)		(19,015.3)
Purchases of marketable securities		(59.4)		(60.0)		(504.1)		(111.8)		(94.9)		(110.5)
Purchases of property and equipment		(641.8)		(688.1)		(1,045.2)		(2.6)		(5.9)		(3.1)
Cost of equipment on operating leases acquired								(3,235.7)		(3,043.6)		(2,684.2)
Increase in investment in Financial Services		(28.2)		(27.4)		(66.8)
Acquisitions of businesses, net of cash acquired		(198.5)
Decrease (increase) in trade and wholesale receivables								492.5		657.0		(782.0)
Other		(55.2)		6.8		(98.6)		24.6		(45.1)		(47.1)
Net cash used for investing activities		(820.1)		(68.6)		(368.8)		(826.1)		(1,235.0)		(4,756.3)

Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		(207.2)		211.9		(65.8)		(1,006.4)		289.7		155.0
Change in intercompany receivables/payables		(756.0)		928.6		(367.5)		756.0		(928.6)		367.5
Proceeds from long-term borrowings		173.4		6.2		60.7		4,897.3		5,704.8		8,171.3
Payments of long-term borrowings		(72.8)		(214.2)		(819.1)		(5,194.8)		(4,649.0)		(4,390.0)
Proceeds from issuance of common stock		36.0		172.1		149.5
Repurchases of common stock		(205.4)		(2,770.7)		(2,731.1)
Capital investment from Equipment Operations								28.2		27.4		66.8
Dividends paid		(761.3)		(816.3)		(786.0)		(562.1)		(679.6)		(150.0)
Excess tax benefits from share-based compensation		5.4		18.5		30.8
Other		(36.7)		(45.4)		(27.7)		(28.0)		(26.7)		(35.9)
Net cash provided by (used for) financing activities		(1,824.6)		(2,509.3)		(4,556.2)		(1,109.8)		(262.0)		4,184.7

Effect of Exchange Rate Changes on Cash and Cash Equivalents		(21.2)		(146.6)		(61.3)		8.2		(40.7)		(12.3)
Net Increase (Decrease) in Cash and Cash Equivalents		240.5		330.8		(454.1)		(66.9)		44.4		737.0
Cash and Cash Equivalents at Beginning of Year		2,900.0		2,569.2		3,023.3		1,262.2		1,217.8		480.8
Cash and Cash Equivalents at End of Year	$	3,140.5	$	2,900.0	$	2,569.2	$	1,195.3	$	1,262.2	$	1,217.8

* Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.