SUPPLEMENTAL CONSOLIDATING DATA

9 Months Ended

Jul. 31, 2012

SUPPLEMENTAL CONSOLIDATING DATA

SUPPLEMENTAL CONSOLIDATING DATA

(18)   SUPPLEMENTAL CONSOLIDATING DATA

STATEMENT OF INCOME

For the Three Months Ended July 31, 2012 and 2011

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2012		2011		2012		2011
Net Sales and Revenues
Net sales	$	8,930.3	$	7,721.6
Finance and interest income	21.9		21.9		$	539.4	$	531.2
Other income	109.1		112.2		78.7		75.8
Total	9,061.3		7,855.7		618.1		607.0
Costs and Expenses
Cost of sales	6,756.3		5,792.5
Research and development expenses	367.8		312.0
Selling, administrative and general expenses	770.7		716.4		110.7		102.8
Interest expense	57.4		49.3		148.4		148.6
Interest compensation to Financial Services	57.2		47.3
Other operating expenses	7.5		52.8		188.7		161.9
Total	8,016.9		6,970.3		447.8		413.3
Income of Consolidated Group
before Income Taxes	1,044.4		885.4		170.3		193.7
Provision for income taxes	366.7		301.2		60.1		68.3
Income of Consolidated Group	677.7		584.2		110.2		125.4
Equity in Income of Unconsolidated
Subsidiaries and Affiliates
Financial Services	110.4		125.6		.2		.2
Other	2.1		5.0
Total	112.5		130.6		.2		.2
Net Income	790.2		714.8		110.4		125.6
Less: Net income attributable to noncontrolling interests	2.2		2.5
Net Income Attributable to Deere & Company	$	788.0	$	712.3	$	110.4	$	125.6

*  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, 2012 and 2011

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2012		2011		2012		2011
Net Sales and Revenues
Net sales	$	24,453.9	$	21,563.0
Finance and interest income	54.7		55.5		$	1,584.6	$	1,542.2
Other income	359.7		335.8		188.6		169.5
Total	24,868.3		21,954.3		1,773.2		1,711.7
Costs and Expenses
Cost of sales	18,167.3		15,994.2
Research and development expenses	1,032.3		879.3
Selling, administrative and general expenses	2,148.3		2,016.1		328.5		301.8
Interest expense	157.2		151.2		459.5		468.2
Interest compensation to Financial Services	153.1		136.6
Other operating expenses	117.5		139.2		465.8		413.6
Total	21,775.7		19,316.6		1,253.8		1,183.6
Income of Consolidated Group before Income Taxes	3,092.6		2,637.7		519.4		528.1
Provision for income taxes	1,052.4		860.6		181.7		180.0
Income of Consolidated Group	2,040.2		1,777.1		337.7		348.1
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services	338.6		348.9		.9		.8
Other	3.9		9.8
Total	342.5		358.7		.9		.8
Net Income	2,382.7		2,135.8		338.6		348.9
Less: Net income attributable to noncontrolling interests	5.6		5.5
Net Income Attributable to Deere & Company	$	2,377.1	$	2,130.3	$	338.6	$	348.9

*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 2012			October 31 2011			July 31 2011			July 31 2012		October 31 2011		July 31 2011
Assets
Cash and cash equivalents	$	2,914.7		$	3,187.5		$	3,167.8		$	482.7	$	459.7	$	450.5
Marketable securities	1,202.5			502.6			200.4			343.2		284.7		259.0
Receivables from unconsolidated subsidiaries and affiliates	2,288.6			1,713.4			2,054.4
Trade accounts and notes receivable - net	1,156.1			1,093.9			1,061.8			4,378.3		2,807.2		3,547.5
Financing receivables - net	7.3			14.0			8.2			20,678.0		19,909.5		19,428.7
Financing receivables securitized - net										3,163.6		2,905.0		2,480.6
Other receivables	805.8			965.6			744.3			523.2		370.1		224.4
Equipment on operating leases - net										2,249.7		2,150.0		2,015.0
Inventories	5,867.5			4,370.6			4,687.7
Property and equipment - net	4,401.2			4,287.5			4,003.4			62.2		64.9		65.4
Investments in unconsolidated subsidiaries and affiliates	3,759.6			3,473.9			3,481.3			7.8		8.1		7.9
Goodwill	933.6			999.8			1,023.2
Other intangible assets - net	103.8			123.4			129.4			4.0		4.0		4.0
Retirement benefits	38.2			29.6			230.1			25.1		28.0		29.0
Deferred income taxes	3,233.5			3,052.8			2,959.7			43.4		91.2		103.1
Other assets	567.9			468.6			472.5			979.8		712.6		621.2
Total Assets	$	27,280.3		$	24,283.2		$	24,224.2		$	32,941.0	$	29,795.0	$	29,236.3
Liabilities and Stockholders’ Equity
Short-term borrowings	$	953.0		$	528.5		$	480.4		$	6,088.0	$	6,323.8	$	7,447.5
Short-term securitization borrowings										3,028.0		2,777.4		2,380.9
Payables to unconsolidated subsidiaries and affiliates	103.5			117.7			143.8			2,217.8		1,665.5		2,022.1
Accounts payable and accrued expenses	7,169.7			6,869.3			6,645.3			1,882.5		1,547.8		1,248.9
Deferred income taxes	95.7			99.0			98.3			315.0		354.7		299.5
Long-term borrowings	5,357.2			3,167.1			3,371.5			15,799.9		13,792.8		12,521.0
Retirement benefits and other liabilities	6,186.6			6,686.7			5,944.9			60.1		52.6		51.9
Total liabilities	19,865.7			17,468.3			16,684.2			29,391.3		26,514.6		25,971.8
Commitments and contingencies (Note 14)
Common stock, $1 par value (issued shares at July 31, 2012 – 536,431,204)	3,320.1			3,251.7			3,231.1			1,627.7		1,570.6		1,565.6
Common stock in treasury	(8,476.2		)	(7,292.8		)	(6,723.9		)
Retained earnings	16,366.5			14,519.4			14,017.7			1,836.7		1,541.5		1,495.4
Accumulated other comprehensive income (loss)	(3,814.6		)	(3,678.0		)	(2,997.3		)	85.3		168.3		203.5
Total Deere & Company stockholders’ equity	7,395.8			6,800.3			7,527.6			3,549.7		3,280.4		3,264.5
Noncontrolling interests	18.8			14.6			12.4
Total stockholders’ equity	7,414.6			6,814.9			7,540.0			3,549.7		3,280.4		3,264.5
Total Liabilities and Stockholders’ Equity	$	27,280.3		$	24,283.2		$	24,224.2		$	32,941.0	$	29,795.0	$	29,236.3

* 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)

STATEMENT OF CASH FLOWS

For the Nine Months Ended July 31, 2012 and 2011

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2012			2011			2012			2011
Cash Flows from Operating Activities
Net income	$	2,382.7		$	2,135.8		$	338.6		$	348.9
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (credit) for doubtful receivables	7.1			2.5			(1.0		)	15.3
Provision for depreciation and amortization	480.1			439.7			320.8			293.0
Undistributed earnings of unconsolidated subsidiaries and affiliates	(301.6		)	(82.8		)	(.8		)	(.8		)
Provision (credit) for deferred income taxes	(213.2		)	(372.0		)	7.9			47.2
Changes in assets and liabilities:
Receivables	(137.6		)	(24.9		)
Inventories	(1,691.7		)	(1,483.6		)
Accounts payable and accrued expenses	588.6			686.7			164.6			134.7
Accrued income taxes payable/receivable	72.7			274.7			27.7			(8.4		)
Retirement benefits	(80.6		)	340.9			10.5			10.2
Other	(18.2		)	(182.4		)	(329.5		)	(77.9		)
Net cash provided by operating activities	1,088.3			1,734.6			538.8			762.2
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)							10,770.1			10,169.3
Proceeds from maturities and sales of marketable securities	100.0						25.8			24.5
Proceeds from sales of equipment on operating leases							583.1			522.8
Proceeds from sales of businesses, net of cash sold	30.4			894.4
Cost of receivables acquired (excluding trade and wholesale)							(11,868.2		)	(11,187.4		)
Purchases of marketable securities	(802.2		)	(200.5		)	(80.5		)	(55.5		)
Purchases of property and equipment	(806.1		)	(680.2		)	(2.3		)	(1.3		)
Cost of equipment on operating leases acquired							(972.4		)	(790.6		)
Acquisitions of businesses, net of cash acquired				(60.8		)
Increase in trade and wholesale receivables							(2,117.7		)	(1,153.5		)
Other	(145.3		)	(135.3		)	93.9			(73.4		)
Net cash used for investing activities	(1,623.2		)	(182.4		)	(3,568.2		)	(2,545.1		)
Cash Flows from Financing Activities
Increase in total short-term borrowings	386.8			312.7			848.6			531.7
Change in intercompany receivables/payables	(698.3		)	(845.3		)	698.3			845.3
Proceeds from long-term borrowings	2,374.5			90.4			5,881.7			3,424.7
Payments of long-term borrowings				(11.5		)	(4,396.8		)	(2,783.6		)
Proceeds from issuance of common stock	37.1			165.9
Repurchases of common stock	(1,225.3		)	(1,093.2		)
Dividends paid	(516.3		)	(422.2		)	(43.5		)	(264.1		)
Excess tax benefits from share-based compensation	16.8			66.8
Other	(28.8		)	(12.9		)	32.9			40.4
Net cash provided by (used for) financing activities	346.5			(1,749.3		)	3,021.2			1,794.4
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(84.4		)	16.6			31.2			(3.3		)
Net Increase (Decrease) in Cash and Cash Equivalents	(272.8		)	(180.5		)	23.0			8.2
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	$	2,914.7		$	3,167.8		$	482.7		$	450.5

* 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.