ORGANIZATION AND CONSOLIDATION

6 Months Ended

Apr. 30, 2012

ORGANIZATION AND CONSOLIDATION

ORGANIZATION AND CONSOLIDATION

(1)	The information in the notes and related commentary are presented in a format which includes data grouped as follows:
	Equipment Operations - Includes the Company’s agriculture and turf operations and construction and forestry operations with financial services reflected on the equity basis.
	Financial Services - Includes the Company’s financial services operations.
	Consolidated - Represents the consolidation of the equipment operations and financial services.  References to “Deere & Company” or “the Company” refer to the entire enterprise.
	Variable Interest Entities
	The Company is the primary beneficiary of and consolidates a supplier that is a variable interest entity (VIE).  The Company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.  No additional support beyond what was previously contractually required has been provided during any periods presented.  The VIE produces blended fertilizer and other lawn care products for the agriculture and turf segment.
	The assets and liabilities of this supplier VIE consisted of the following in millions of dollars:

	April 30 2012		October 31 2011		April 30 2011
Cash and cash equivalents	$	17	$	11
Intercompany receivables	18		14		$	19
Inventories	42		30		52
Property and equipment - net	3		3		4
Other assets	9		3		9
Total assets	$	89	$	61	$	84
Short-term borrowings	$	3			$	3
Accounts payable and accrued expenses	78		$	56	80
Total liabilities	$	81	$	56	$	83

The VIE is financed through its own accounts payable and short-term borrowings.  The assets of the VIE can only be used to settle the obligations of the VIE.  The creditors of the VIE do not have recourse to the general credit of the Company.

See Note 11 for VIEs related to securitization of financing receivables.