SEGMENT AND GEOGRAPHIC AREA DATA FOR THE YEARS ENDED OCTOBER 31, 2016, 2015 AND 2014 (Tables)

12 Months Ended

Oct. 31, 2016

SEGMENT AND GEOGRAPHIC AREA DATA FOR THE YEARS ENDED OCTOBER 31, 2016, 2015 AND 2014

Schedule of Segment Reporting Information

Information relating to operations by operating segment in millions of dollars follows. In addition to the following unaffiliated sales and revenues by segment, intersegment sales and revenues in 2016, 2015 and 2014 were as follows: agriculture and turf net sales of $31 million, $49 million and $89 million, construction and forestry net sales of $1 million, $1 million and $1 million, and financial services revenues of $225 million, $225 million and $228 million, respectively.

OPERATING SEGMENTS	2016		2015		2014
Net sales and revenues
Unaffiliated customers:
Agriculture and turf net sales	$	18,487	$	19,812	$	26,380
Construction and forestry net sales		4,900		5,963		6,581
Total net sales		23,387		25,775		32,961
Financial services revenues		2,694		2,591		2,577
Other revenues*		563		497		529
Total	$	26,644	$	28,863	$	36,067

*    Other revenues are primarily the equipment operations’ revenues for finance and interest income, and other income as disclosed in Note 31, net of certain intercompany eliminations.

Operating profit
Agriculture and turf	$	1,700	$	1,649	$	3,649
Construction and forestry		180		528		648
Financial services*		709		963		921
Total operating profit		2,589		3,140		5,218
Interest income		48		61		57
Investment income						2
Interest expense		(251)		(273)		(289)
Foreign exchange gains (losses) from equipment operations’ financing activities		(12)		13		(2)
Corporate expenses – net		(153)		(160)		(196)
Income taxes		(700)		(840)		(1,627)
Total		(1,068)		(1,199)		(2,055)
Net income		1,521		1,941		3,163
Less: Net income (loss) attributable to noncontrolling interests		(3)		1		1
Net income attributable to Deere & Company	$	1,524	$	1,940	$	3,162

*    Operating profit of the financial services business segment includes the effect of its interest expense and foreign exchange gains or losses.

Interest income*
Agriculture and turf	$	12	$	14	$	17
Construction and forestry		1		2		1
Financial services		1,650		1,687		1,754
Corporate		48		61		57
Intercompany		(240)		(253)		(268)
Total	$	1,471	$	1,511	$	1,561

*    Does not include finance rental income for equipment on operating leases.

Interest expense
Agriculture and turf	$	173	$	160	$	175
Construction and forestry		44		45		37
Financial services		536		455		431
Corporate		251		273		289
Intercompany		(240)		(253)		(268)
Total	$	764	$	680	$	664
Depreciation* and amortization expense
Agriculture and turf	$	667	$	659	$	681
Construction and forestry		136		133		115
Financial services		757		590		511
Total	$	1,560	$	1,382	$	1,307

*    Includes depreciation for equipment on operating leases.

Equity in income (loss) of unconsolidated affiliates
Agriculture and turf	$	9	$	7	$	8
Construction and forestry		(13)		(7)		(18)
Financial services		2		1		2
Total	$	(2)	$	1	$	(8)
Identifiable operating assets
Agriculture and turf	$	8,405	$	8,332	$	9,442
Construction and forestry		3,017		3,295		3,405
Financial services		40,879		40,909		42,784
Corporate*		5,680		5,412		5,705
Total	$	57,981	$	57,948	$	61,336

*    Corporate assets are primarily the equipment operations’ retirement benefits, deferred income tax assets, marketable securities and cash and cash equivalents as disclosed in Note 31, net of certain intercompany eliminations.

Capital additions
Agriculture and turf	$	556	$	522	$	868
Construction and forestry		115		138		145
Financial services		3		6		3
Total	$	674	$	666	$	1,016
Investments in unconsolidated affiliates
Agriculture and turf	$	56	$	116	$	110
Construction and forestry		165		177		182
Financial services		12		10		11
Total	$	233	$	303	$	303

Schedule of Geographic Area Reporting Information

The company views and has historically disclosed its operations as consisting of two geographic areas, the U.S. and Canada, and outside the U.S. and Canada, shown below in millions of dollars. No individual foreign country’s net sales and revenues were material for disclosure purposes.

GEOGRAPHIC AREAS	2016		2015		2014
Net sales and revenues
Unaffiliated customers:
U.S. and Canada:
Equipment operations net sales (88%)*	$	14,376	$	16,498	$	20,171
Financial services revenues (79%)*		2,366		2,252		2,220
Total		16,742		18,750		22,391
Outside U.S. and Canada:
Equipment operations net sales		9,011		9,277		12,790
Financial services revenues		328		339		357
Total		9,339		9,616		13,147
Other revenues		563		497		529
Total	$	26,644	$	28,863	$	36,067

*    The percentages indicate the approximate proportion of each amount that relates to the U.S. only and are based upon a three-year average for 2016, 2015 and 2014.

Operating profit
U.S. and Canada:
Equipment operations	$	1,305	$	1,643	$	3,311
Financial services		551		802		727
Total		1,856		2,445		4,038
Outside U.S. and Canada:
Equipment operations		575		534		986
Financial services		158		161		194
Total		733		695		1,180
Total	$	2,589	$	3,140	$	5,218
Property and equipment
U.S.	$	3,077	$	3,098	$	3,154
Germany		569		568		640
Other countries		1,525		1,515		1,784
Total	$	5,171	$	5,181	$	5,578