SUPPLEMENTAL CONSOLIDATING DATA

6 Months Ended

Apr. 30, 2012

SUPPLEMENTAL CONSOLIDATING DATA

SUPPLEMENTAL CONSOLIDATING DATA

(18) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended April 30, 2012 and 2011

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2012		2011		2012		2011
Net Sales and Revenues
Net sales	$	9,404.6	$	8,327.6
Finance and interest income	17.1		18.0		$	533.6	$	513.0
Other income	132.2		109.8		21.3		36.6
Total	9,553.9		8,455.4		554.9		549.6
Costs and Expenses
Cost of sales	6,834.8		6,107.2
Research and development expenses	352.0		298.5
Selling, administrative and general expenses	767.7		728.4		116.3		102.8
Interest expense	50.5		50.1		157.0		156.2
Interest compensation to Financial Services	55.0		48.5
Other operating expenses	71.7		44.7		106.7		127.9
Total	8,131.7		7,277.4		380.0		386.9
Income of Consolidated Group before Income Taxes	1,422.2		1,178.0		174.9		162.7
Provision for income taxes	475.4		381.0		66.0		57.9
Income of Consolidated Group	946.8		797.0		108.9		104.8
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services	109.2		105.1		.3		.3
Other	2.1		4.6
Total	111.3		109.7		.3		.3
Net Income	1,058.1		906.7		109.2		105.1
Less: Net income attributable to noncontrolling interests	1.9		2.4
Net Income Attributable to Deere & Company	$	1,056.2	$	904.3	$	109.2	$	105.1

*  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 Six Months Ended April 30, 2012 and 2011

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2012		2011		2012		2011
Net Sales and Revenues
Net sales	$	15,523.6	$	13,841.4
Finance and interest income	32.8		33.5		$	1,045.2	$	1,011.0
Other income	250.6		223.7		109.9		93.7
Total	15,807.0		14,098.6		1,155.1		1,104.7
Costs and Expenses
Cost of sales	11,411.1		10,201.6
Research and development expenses	664.5		567.4
Selling, administrative and general expenses	1,377.5		1,299.7		217.8		199.2
Interest expense	99.8		101.9		311.1		319.5
Interest compensation to Financial Services	95.9		89.3
Other operating expenses	110.0		86.3		277.1		251.6
Total	13,758.8		12,346.2		806.0		770.3
Income of Consolidated Group before Income Taxes	2,048.2		1,752.4		349.1		334.4
Provision for income taxes	685.8		559.4		121.6		111.7
Income of Consolidated Group	1,362.4		1,193.0		227.5		222.7
Equity in Income of Unconsolidated
Subsidiaries and Affiliates
Financial Services	228.3		223.3		.8		.6
Other	1.8		4.8
Total	230.1		228.1		.8		.6
Net Income	1,592.5		1,421.1		228.3		223.3
Less: Net income attributable to noncontrolling interests	3.4		3.0
Net Income Attributable to Deere & Company	$	1,589.1	$	1,418.1	$	228.3	$	223.3

*  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
	April 30 2012			October 31 2011			April 30 2011			April 30 2012		October 31 2011		April 30 2011
Assets
Cash and cash equivalents	$	1,700.4		$	3,187.5		$	3,515.0		$	1,319.3	$	459.7	$	434.8
Marketable securities	1,002.8			502.6						336.1		284.7		239.5
Receivables from unconsolidated subsidiaries and affiliates	2,192.4			1,713.4			1,785.7
Trade accounts and notes receivable - net	1,258.0			1,093.9			1,066.3			4,619.6		2,807.2		3,786.2
Financing receivables - net	14.0			14.0			8.9			19,438.7		19,909.5		18,446.4
Financing receivables securitized - net										3,116.0		2,905.0		2,871.2
Other receivables	790.8			965.6			715.1			306.0		370.1		120.8
Equipment on operating leases - net										2,168.0		2,150.0		1,945.2
Inventories	6,112.4			4,370.6			4,687.0
Property and equipment - net	4,324.3			4,287.5			3,902.0			63.3		64.9		66.5
Investments in unconsolidated subsidiaries and affiliates	3,695.3			3,473.9			3,381.5			8.3		8.1		8.1
Goodwill	965.3			999.8			1,038.7
Other intangible assets - net	110.2			123.4			126.8			4.0		4.0		4.0
Retirement benefits	29.7			29.6			200.0			26.2		28.0		29.9
Deferred income taxes	3,137.9			3,052.8			2,917.7			52.1		91.2		103.8
Other assets	553.9			468.6			446.4			773.3		712.6		574.6
Total Assets	$	25,887.4		$	24,283.2		$	23,791.1		$	32,230.9	$	29,795.0	$	28,631.0
Liabilities and Stockholders’ Equity
Short-term borrowings	$	1,592.0		$	528.5		$	431.6		$	6,318.0	$	6,323.8	$	6,640.3
Short-term securitization borrowings										3,033.3		2,777.4		2,821.5
Payables to unconsolidated subsidiaries and affiliates	189.6			117.7			193.5			2,125.5		1,665.5		1,740.5
Accounts payable and accrued expenses	7,109.9			6,869.3			6,355.3			1,368.1		1,547.8		1,124.6
Deferred income taxes	96.5			99.0			102.8			313.8		354.7		255.5
Long-term borrowings	3,174.9			3,167.1			3,361.4			15,544.5		13,792.8		12,830.8
Retirement benefits and other liabilities	6,328.5			6,686.7			5,912.9			57.8		52.6		49.2
Total liabilities	18,491.4			17,468.3			16,357.5			28,761.0		26,514.6		25,462.4
Commitments and contingencies (Note 14)
Common stock, $1 par value (issued shares at April 30, 2012 – 536,431,204)	3,298.9			3,251.7			3,211.7			1,613.5		1,570.6		1,526.6
Common stock in treasury	(8,005.1		)	(7,292.8		)	(6,237.5		)
Retained earnings	15,759.4			14,519.4			13,476.3			1,726.3		1,541.5		1,439.7
Accumulated other comprehensive income (loss)	(3,674.3		)	(3,678.0		)	(3,027.2		)	130.1		168.3		202.3
Total Deere & Company stockholders’ equity	7,378.9			6,800.3			7,423.3			3,469.9		3,280.4		3,168.6
Noncontrolling interests	17.1			14.6			10.3
Total stockholders’ equity	7,396.0			6,814.9			7,433.6			3,469.9		3,280.4		3,168.6
Total Liabilities and Stockholders’ Equity	$	25,887.4		$	24,283.2		$	23,791.1		$	32,230.9	$	29,795.0	$	28,631.0

* 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 Six Months Ended April 30, 2012 and 2011

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2012			2011			2012			2011
Cash Flows from Operating Activities
Net income	$	1,592.5		$	1,421.1		$	228.3		$	223.3
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful receivables	5.1			1.4			6.5			12.2
Provision for depreciation and amortization	325.8			294.6			212.5			191.6
Undistributed earnings of unconsolidated subsidiaries and affiliates	(188.8		)	(24.4		)	(.8		)	(.6		)
Provision (credit) for deferred income taxes	(120.8		)	(314.9		)	(3.3		)	4.6
Changes in assets and liabilities:
Receivables	(200.0		)	(20.4		)
Inventories	(1,806.1		)	(1,458.1		)
Accounts payable and accrued expenses	316.7			465.1			(193.9		)	(1.1		)
Accrued income taxes payable/receivable	234.3			250.4			16.4			(10.9		)
Retirement benefits	(42.3		)	213.7			7.0			6.5
Other	(34.7		)	(153.2		)	36.5			39.3
Net cash provided by operating activities	81.7			675.3			309.2			464.9
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)							7,685.9			7,202.4
Proceeds from maturities and sales of marketable securities							15.8			18.8
Proceeds from sales of equipment on operating leases							418.8			383.4
Proceeds from sales of businesses, net of cash sold	20.2			893.5
Cost of receivables acquired (excluding trade and wholesale)							(7,975.5		)	(7,575.1		)
Purchases of marketable securities	(501.7		)				(68.7		)	(34.0		)
Purchases of property and equipment	(511.6		)	(440.2		)	(1.5		)	(.9		)
Cost of equipment on operating leases acquired							(607.9		)	(489.4		)
Acquisitions of businesses, net of cash acquired				(46.6		)
Increase in trade and wholesale receivables							(1,575.2		)	(1,390.8		)
Other	(121.8		)	(60.7		)	(23.3		)	(86.3		)
Net cash provided by (used for) investing activities	(1,114.9		)	346.0			(2,131.6		)	(1,971.9		)
Cash Flows from Financing Activities
Increase in total short-term borrowings	1,097.9			291.8			199.7			511.4
Change in intercompany receivables/payables	(511.8		)	(544.3		)	511.8			544.3
Proceeds from long-term borrowings	44.9			31.6			4,012.0			1,409.1
Payments of long-term borrowings				(11.5		)	(2,035.6		)	(770.6		)
Proceeds from issuance of common stock	28.9			160.7
Repurchases of common stock	(746.3		)	(601.2		)
Dividends paid	(333.0		)	(275.0		)	(43.5		)	(194.1		)
Excess tax benefits from share-based compensation	14.4			64.7
Other	(8.9		)	(9.3		)	23.6			9.3
Net cash provided by (used for) financing activities	(413.9		)	(892.5		)	2,668.0			1,509.4
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(40.0		)	37.9			14.0			(9.9		)
Net Increase (Decrease) in Cash and Cash Equivalents	(1,487.1		)	166.7			859.6			(7.5		)
Cash and Cash Equivalents at Beginning of Period	3,187.5			3,348.3			459.7			442.3
Cash and Cash Equivalents at End of Period	$	1,700.4		$	3,515.0		$	1,319.3		$	434.8

* 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.