UNCONSOLIDATED AFFILIATED COMPANIES

12 Months Ended

Oct. 31, 2012

UNCONSOLIDATED AFFILIATED COMPANIES

UNCONSOLIDATED AFFILIATED COMPANIES

10. UNCONSOLIDATED AFFILIATED COMPANIES

Unconsolidated affiliated companies are companies in which Deere & Company generally owns 20 percent to 50 percent of the outstanding voting shares. Deere & Company does not control these companies and accounts for its investments in them on the equity basis. The investments in these companies primarily consist of Bell Equipment Limited (32 percent ownership), Deere-Hitachi Construction Machinery Corporation (50 percent ownership), John Deere Tiantuo Company, Ltd. (51 percent ownership), Xuzhou XCG John Deere Machinery Manufacturing Co., Ltd. (50 percent ownership) and Ashok Leyland John Deere Construction Equipment Company Private Limited (50 percent ownership). The unconsolidated affiliated companies primarily manufacture or market equipment. Deere & Company’s share of the income or loss of these companies is reported in the consolidated income statement under “Equity in income (loss) of unconsolidated affiliates.” The investment in these companies is reported in the consolidated balance sheet under “Investments in unconsolidated affiliates.”

Combined financial information of the unconsolidated affiliated companies in millions of dollars follows:

Operations	2012			2011		2010
Sales	$	2,722		$	2,233	$	1,502
Net income (loss)	(1		)	34		23
Deere & Company’s equity in net income (loss)	(3		)	9		11

Financial Position	2012		2011
Total assets	$	1,621	$	1,357
Total external borrowings	345		321
Total net assets	558		495
Deere & Company’s share of the net assets	215		202

Consolidated retained earnings at October 31, 2012 include undistributed earnings of the unconsolidated affiliates of $63 million. Dividends from unconsolidated affiliates were $.2 million in 2012, $18 million in 2011 and $6 million in 2010.