SUPPLEMENTAL CONSOLIDATING DATA

9 Months Ended

Jul. 31, 2011

SUPPLEMENTAL CONSOLIDATING DATA

SUPPLEMENTAL CONSOLIDATING DATA

(21) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended July 31, 2011 and 2010

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2011		2010		2011		2010
Net Sales and Revenues
Net sales	$	7,721.6	$	6,224.0
Finance and interest income	21.9		14.6		$	531.2	$	493.4
Other income	112.2		91.5		75.8		96.6
Total	7,855.7		6,330.1		607.0		590.0
Costs and Expenses
Cost of sales	5,792.5		4,520.0
Research and development expenses	312.0		256.3
Selling, administrative and general expenses	716.4		630.7		102.8		122.9
Interest expense	49.3		45.1		148.6		159.4
Interest compensation to Financial Services	47.3		50.8
Other operating expenses	52.8		53.9		161.9		159.2
Total	6,970.3		5,556.8		413.3		441.5
Income of Consolidated Group before Income Taxes	885.4		773.3		193.7		148.5
Provision for income taxes	301.2		261.7		68.3		46.5
Income of Consolidated Group	584.2		511.6		125.4		102.0
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services	125.6		102.1		.2		.1
Other	5.0		5.8
Total	130.6		107.9		.2		.1
Net Income	714.8		619.5		125.6		102.1
Less:  Net income attributable to noncontrolling interests	2.5		2.5
Net Income Attributable to Deere & Company	$	712.3	$	617.0	$	125.6	$	102.1

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

The supplemental consolidating data is presented for informational purposes.  Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF INCOME
For the Nine Months Ended July 31, 2011 and 2010

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2011		2010		2011		2010
Net Sales and Revenues
Net sales	$	21,563.0	$	17,009.5
Finance and interest income	55.5		47.9		$	1,542.2	$	1,462.6
Other income	335.8		281.3		169.5		242.9
Total	21,954.3		17,338.7		1,711.7		1,705.5
Costs and Expenses
Cost of sales	15,994.2		12,491.4
Research and development expenses	879.3		758.1
Selling, administrative and general expenses	2,016.1		1,770.0		301.8		364.6
Interest expense	151.2		133.8		468.2		516.1
Interest compensation to Financial Services	136.6		142.6
Other operating expenses	139.2		127.4		413.6		465.4
Total	19,316.6		15,423.3		1,183.6		1,346.1
Income of Consolidated Group before Income Taxes	2,637.7		1,915.4		528.1		359.4
Provision for income taxes	860.6		780.3		180.0		86.0
Income of Consolidated Group	1,777.1		1,135.1		348.1		273.4
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services	348.9		274.1		.8		.6
Other	9.8		5.8
Total	358.7		279.9		.8		.6
Net Income	2,135.8		1,415.0		348.9		274.0
Less:  Net income (loss) attributable to noncontrolling interests	5.5		7.3				(.1)
Net Income Attributable to Deere & Company	$	2,130.3	$	1,407.7	$	348.9	$	274.1

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

The supplemental consolidating data is presented for informational purposes.  Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

CONDENSED BALANCE SHEET

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS *						FINANCIAL SERVICES
	July 31 2011		October 31 2010		July 31 2010		July 31 2011		October 31 2010		July 31 2010
Assets
Cash and cash equivalents	$	3,167.8	$	3,348.3	$	3,333.5	$	450.5	$	442.3	$	420.2
Marketable securities	200.4						259.0		227.9		232.3
Receivables from unconsolidated subsidiaries and affiliates	2,054.4		1,712.6		1,373.4				1.6		2.0
Trade accounts and notes receivable - net	1,061.8		999.8		804.0		3,547.5		2,979.7		3,340.4
Financing receivables - net	8.2		9.4		10.4		19,428.7		17,672.8		16,225.7
Financing receivables securitized - net							2,480.6		2,238.3		2,631.8
Other receivables	744.3		889.5		642.7		224.4		49.4		68.1
Equipment on operating leases - net							2,015.0		1,936.2		1,777.9
Inventories	4,687.7		3,063.0		3,175.4
Property and equipment - net	4,003.4		3,722.4		3,381.4		65.4		68.3		1,017.2
Investments in unconsolidated subsidiaries and affiliates	3,481.3		3,420.2		3,350.1		7.9		7.0		6.3
Goodwill	1,023.2		998.6		992.9
Other intangible assets - net	129.4		113.0		122.1		4.0		4.0		4.0
Retirement benefits	230.1		145.8		196.8		29.0		31.4		5.1
Deferred income taxes	2,959.7		2,737.1		2,763.6		103.1		103.2		97.7
Other assets	472.5		381.2		331.2		621.2		812.9		879.0
Assets held for sale									931.4
Total Assets	$	24,224.2	$	21,540.9	$	20,477.5	$	29,236.3	$	27,506.4	$	26,707.7
Liabilities and Stockholders’ Equity
Short-term borrowings	$	480.4	$	85.0	$	92.1	$	7,447.5	$	5,240.7	$	4,816.2
Short-term securitization borrowings							2,380.9		2,208.8		2,577.3
Payables to unconsolidated subsidiaries and affiliates	143.8		205.2		163.3		2,022.1		1,673.7		1,341.5
Accounts payable and accrued expenses	6,645.3		5,757.1		5,198.5		1,248.9		1,253.3		1,292.0
Deferred income taxes	98.3		92.0		82.4		299.5		415.5		319.6
Long-term borrowings	3,371.5		3,328.6		3,181.9		12,521.0		13,485.9		13,192.3
Retirement benefits and other liabilities	5,944.9		5,771.6		5,635.1		51.9		43.8		43.6
Total liabilities	16,684.2		15,239.5		14,353.3		25,971.8		24,321.7		23,582.5
Commitments and contingencies (Note 14)
Common stock, $1 par value (issued shares at July 31, 2011 — 536,431,204)	3,231.1		3,106.3		3,075.0		1,565.6		1,722.5		1,722.5
Common stock in treasury	(6,723.9)		(5,789.5)		(5,598.0)
Retained earnings	14,017.7		12,353.1		12,023.1		1,495.4		1,335.2		1,312.0
Accumulated other comprehensive income (loss)	(2,997.3)		(3,379.6)		(3,384.9)		203.5		125.0		89.1
Total Deere & Company stockholders’ equity	7,527.6		6,290.3		6,115.2		3,264.5		3,182.7		3,123.6
Noncontrolling interests	12.4		11.1		9.0				2.0		1.6
Total stockholders’ equity	7,540.0		6,301.4		6,124.2		3,264.5		3,184.7		3,125.2
Total Liabilities and Stockholders’ Equity	$	24,224.2	$	21,540.9	$	20,477.5	$	29,236.3	$	27,506.4	$	26,707.7

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

The supplemental consolidating data is presented for informational purposes.  Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

STATEMENT OF CASH FLOWS

For the Nine Months Ended July 31, 2011 and 2010

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2011		2010		2011		2010
Cash Flows from Operating Activities
Net income	$	2,135.8	$	1,415.0	$	348.9	$	274.0
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful receivables	2.5		1.8		15.3		83.0
Provision for depreciation and amortization	439.7		416.3		293.0		319.9
Undistributed earnings of unconsolidated subsidiaries and affiliates	(82.8)		(132.5)		(.8)		(.6)
Provision (credit) for deferred income taxes	(372.0)		95.7		47.2		11.0
Changes in assets and liabilities:
Receivables	(24.9)		(168.1)				(8.4)
Inventories	(1,483.6)		(818.8)
Accounts payable and accrued expenses	686.7		729.9		134.7		2.8
Accrued income taxes payable/receivable	274.7		108.4		(8.4)		20.5
Retirement benefits	340.9		(79.5)		10.2		12.2
Other	(182.4)		191.0		(77.9)		198.2
Net cash provided by operating activities	1,734.6		1,759.2		762.2		912.6
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)					10,169.3		9,318.5
Proceeds from maturities and sales of marketable securities					24.5		23.5
Proceeds from sales of equipment on operating leases					522.8		463.5
Government grants related to property and equipment							92.3
Proceeds from sales of businesses, net of cash sold	894.4		25.0
Cost of receivables acquired (excluding trade and wholesale)					(11,187.4)		(9,800.5)
Purchases of marketable securities	(200.5)				(55.5)		(55.0)
Purchases of property and equipment	(680.2)		(432.0)		(1.3)		(25.4)
Cost of equipment on operating leases acquired					(790.6)		(718.4)
Acquisitions of businesses, net of cash acquired	(60.8)		(34.7)				(8.3)
Increase in trade and wholesale receivables					(1,153.5)		(1,287.5)
Other	(135.3)		(60.6)		(73.4)		(1.7)
Net cash used for investing activities	(182.4)		(502.3)		(2,545.1)		(1,999.0)
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings	312.7		(86.0)		531.7		325.9
Change in intercompany receivables/payables	(845.3)		(924.8)		845.3		924.8
Proceeds from long-term borrowings	90.4		139.4		3,424.7		1,697.4
Payments of long-term borrowings	(11.5)		(311.5)		(2,783.6)		(2,288.1)
Proceeds from issuance of common stock	165.9		68.0
Repurchases of common stock	(1,093.2)		(102.8)
Dividends paid	(422.2)		(356.2)		(264.1)		(142.0)
Excess tax benefits from share-based compensation	66.8		19.3
Other	(12.9)		(14.2)		40.4		29.8
Net cash provided by (used for) financing activities	(1,749.3)		(1,568.8)		1,794.4		547.8
Effect of Exchange Rate Changes on Cash and Cash Equivalents	16.6		(44.4)		(3.3)		(3.1)
Net Increase (Decrease) in Cash and Cash Equivalents	(180.5)		(356.3)		8.2		(541.7)
Cash and Cash Equivalents at Beginning of Period	3,348.3		3,689.8		442.3		961.9
Cash and Cash Equivalents at End of Period	$	3,167.8	$	3,333.5	$	450.5	$	420.2

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

The supplemental consolidating data is presented for informational purposes.  Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.