EX-12 5 a04-14942_1ex12.htm EX-12

EXHIBIT 12

 

DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In thousands of dollars)

 

 

 

Year Ended October 31

 

 

 

2004

 

2003

 

2002

 

2001

 

2000

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income of consolidated group before income taxes

 

$

2,113,673

 

$

971,277

 

$

602,705

 

$

(24,757

)

$

777,507

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends received from unconsolidated affiliates

 

21,579

 

3,151

 

2,236

 

1,675

 

3,065

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges excluding capitalized interest

 

606,460

 

643,511

 

659,263

 

787,737

 

693,626

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earnings

 

$

2,741,712

 

$

1,617,939

 

$

1,264,204

 

$

764,655

 

$

1,474,198

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense of consolidated group including capitalized interest

 

$

592,802

 

$

628,647

 

$

637,571

 

$

766,254

 

$

677,424

 

 

 

 

 

 

 

 

 

 

 

 

 

Portion of rental charges deemed to be interest

 

14,368

 

15,044

 

22,145

 

22,030

 

17,122

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

607,170

 

$

643,691

 

$

659,716

 

$

788,284

 

$

694,546

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges*

 

4.52

 

2.51

 

1.92

 

 

**

2.12

 

 

 

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 unconsolidated 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.