SUPPLEMENTAL CONSOLIDATING DATA

12 Months Ended

Oct. 31, 2012

SUPPLEMENTAL CONSOLIDATING DATA

SUPPLEMENTAL CONSOLIDATING DATA

31. SUPPLEMENTAL CONSOLIDATING DATA

INCOME STATEMENT

For the Years Ended October 31, 2012, 2011 and 2010

(In millions of dollars)

	EQUIPMENT OPERATIONS*							FINANCIAL SERVICES
	2012			2011		2010		2012		2011		2010
Net Sales and Revenues
Net sales	$	33,500.9		$	29,466.1	$	23,573.2
Finance and interest income	74.0			73.3		64.8		$	2,155.7	$	2,080.8	$	1,975.1
Other income	493.2			455.5		386.2		298.8		292.5		322.5
Total	34,068.1			29,994.9		24,024.2		2,454.5		2,373.3		2,297.6
Costs and Expenses
Cost of sales	25,009.2			21,920.7		17,400.3
Research and development expenses	1,433.6			1,226.2		1,052.4
Selling, administrative and general expenses	2,988.8			2,786.6		2,496.0		439.3		394.4		482.9
Interest expense	231.1			191.4		184.1		596.4		621.0		670.1
Interest compensation to Financial Services	203.6			178.5		186.3
Other operating expenses	178.1			192.5		177.9		708.1		634.2		646.7
Total	30,044.4			26,495.9		21,497.0		1,743.8		1,649.6		1,799.7
Income of Consolidated Group before Income Taxes	4,023.7			3,499.0		2,527.2		710.7		723.7		497.9
Provision for income taxes	1,407.6			1,169.6		1,035.2		251.8		253.9		126.4
Income of Consolidated Group	2,616.1			2,329.4		1,492.0		458.9		469.8		371.5
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services	460.3			471.0		372.5		1.4		1.2		.9
Other	(4.8		)	7.4		9.9
Total	455.5			478.4		382.4		1.4		1.2		.9
Net Income	3,071.6			2,807.8		1,874.4		460.3		471.0		372.4
Less: Net income (loss) attributable to noncontrolling interests	6.9			7.9		9.4						(.1		)
Net Income Attributable to Deere & Company	$	3,064.7		$	2,799.9	$	1,865.0	$	460.3	$	471.0	$	372.5

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

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. The consolidated group data in the “Equipment Operations” income statement reflect the results of the agriculture and turf operations and construction and forestry operations. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

BALANCE SHEET

As of October 31, 2012 and 2011

(In millions of dollars except per share amounts)

	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2012			2011			2012			2011
ASSETS
Cash and cash equivalents	$	3,907.9		$	3,187.5		$	744.3		$	459.7
Marketable securities	1,101.5			502.6			368.9			284.7
Receivables from unconsolidated subsidiaries and affiliates	1,579.0			1,713.4
Trade accounts and notes receivable - net	1,279.7			1,093.9			3,333.3			2,807.2
Financing receivables - net	11.5			14.0			22,147.5			19,909.5
Financing receivables securitized - net							3,617.6			2,905.0
Other receivables	1,092.4			965.6			703.6			370.1
Equipment on operating leases - net							2,527.8			2,150.0
Inventories	5,170.0			4,370.6
Property and equipment - net	4,950.5			4,287.5			61.4			64.9
Investments in unconsolidated subsidiaries and affiliates	4,102.4			3,473.9			8.7			8.1
Goodwill	921.2			999.8
Other intangible assets - net	101.0			123.4			4.0			4.0
Retirement benefits	14.9			29.6			44.6			28.0
Deferred income taxes	3,497.3			3,052.8			50.3			91.2
Other assets	582.9			468.6			883.5			712.6
Total Assets	$	28,312.2		$	24,283.2		$	34,495.5		$	29,795.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Short-term borrowings	$	424.8		$	528.5		$	5,967.7		$	6,323.8
Short-term securitization borrowings							3,574.8			2,777.4
Payables to unconsolidated subsidiaries and affiliates	135.2			117.7			1,519.3			1,665.5
Accounts payable and accrued expenses	7,679.0			6,869.3			2,129.9			1,547.8
Deferred income taxes	93.3			99.0			338.3			354.7
Long-term borrowings	5,444.9			3,167.1			17,008.2			13,792.8
Retirement benefits and other liabilities	7,673.0			6,686.7			61.2			52.6
Total liabilities	21,450.2			17,468.3			30,599.4			26,514.6
Commitments and contingencies (Note 22)
STOCKHOLDERS’ EQUITY
Common stock, $1 par value (authorized — 1,200,000,000 shares; issued — 536,431,204 shares in 2012 and 2011), at paid-in amount	3,352.2			3,251.7			1,834.7			1,570.6
Common stock in treasury, 148,625,875 shares in 2012 and 130,361,345 shares in 2011, at cost	(8,813.8		)	(7,292.8		)
Retained earnings	16,875.2			14,519.4			1,958.3			1,541.5
Accumulated other comprehensive income (loss):
Retirement benefits adjustment	(4,759.0		)	(4,135.4		)
Cumulative translation adjustment	184.1			453.8			98.3			164.7
Unrealized loss on derivatives	(13.4		)	(8.3		)	(11.6		)	(8.3		)
Unrealized gain on investments	16.8			11.9			16.4			11.9
Accumulated other comprehensive income (loss)	(4,571.5		)	(3,678.0		)	103.1			168.3
Total Deere & Company stockholders’ equity	6,842.1			6,800.3			3,896.1			3,280.4
Noncontrolling interests	19.9			14.6
Total stockholders’ equity	6,862.0			6,814.9			3,896.1			3,280.4
Total Liabilities and Stockholders’ Equity	$	28,312.2		$	24,283.2		$	34,495.5		$	29,795.0

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

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

STATEMENT OF CASH FLOWS

For the Years Ended October 31, 2012, 2011 and 2010

(In millions of dollars)

	EQUIPMENT OPERATIONS*									FINANCIAL SERVICES
	2012			2011			2010			2012			2011			2010
Cash Flows from Operating Activities
Net income	$	3,071.6		$	2,807.8		$	1,874.4		$	460.3		$	471.0		$	372.4
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (credit) for doubtful receivables	6.0			4.5			6.3			(.9		)	9.0			100.1
Provision for depreciation and amortization	643.1			587.0			548.7			439.2			401.5			424.6
Goodwill impairment charges	33.4						27.2
Undistributed earnings of unconsolidated subsidiaries and affiliates	(413.7		)	(118.8		)	(156.7		)	(1.3		)	(1.0		)	(.9		)
Provision (credit) for deferred income taxes	(115.7		)	(278.3		)	74.8			23.9			110.2			100.2
Changes in assets and liabilities:
Trade receivables	(255.0		)	(109.5		)	(333.0		)
Insurance receivables										(338.5		)	(300.1		)
Inventories	(947.6		)	(1,281.8		)	(647.7		)
Accounts payable and accrued expenses	887.0			1,027.0			1,062.9			382.1			351.3			5.7
Accrued income taxes payable/receivable	(102.7		)	45.3			6.5			30.4			(44.1		)	15.6
Retirement benefits	71.2			483.2			(140.1		)	(7.9		)	12.1			(14.0		)
Other	70.5			(168.0		)	221.6			(109.9		)	55.1			270.5
Net cash provided by operating activities	2,948.1			2,998.4			2,544.9			877.4			1,065.0			1,274.2
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)										14,320.7			13,333.1			12,287.7
Proceeds from maturities and sales of marketable securities	200.1			.3						40.2			32.2			38.4
Proceeds from sales of equipment on operating leases										799.5			683.4			621.9
Government grants related to property and equipment																92.3
Proceeds from sales of businesses, net of cash sold	30.2			911.1			34.9
Cost of receivables acquired (excluding trade and wholesale)										(16,730.2		)	(15,365.9		)	(13,681.6		)
Purchases of marketable securities	(802.2		)	(503.1		)				(120.0		)	(83.8		)	(63.4		)
Purchases of property and equipment	(1,316.2		)	(1,054.3		)	(735.5		)	(3.1		)	(2.4		)	(26.2		)
Cost of equipment on operating leases acquired										(1,562.0		)	(1,230.5		)	(1,098.4		)
Increase in investment in Financial Services	(264.1		)	(69.0		)	(43.8		)
Acquisitions of businesses, net of cash acquired				(60.8		)	(37.2		)							(8.3		)
Increase in trade and wholesale receivables										(1,518.5		)	(561.8		)	(838.8		)
Other	(95.6		)	(79.5		)	(32.9		)	138.8			(35.7		)	18.3
Net cash used for investing activities	(2,247.8		)	(855.3		)	(814.5		)	(4,634.6		)	(3,231.4		)	(2,658.1		)
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings	(36.4		)	230.8			(127.9		)	931.3			(456.9		)	883.9
Change in intercompany receivables/payables	45.5			(552.6		)	(1,229.9		)	(45.5		)	552.6			1,229.9
Proceeds from long-term borrowings	2,521.5			69.0			305.0			8,120.5			5,586.0			2,316.0
Payments of long-term borrowings	(220.1		)	(11.5		)	(311.5		)	(5,175.9		)	(3,209.3		)	(3,364.2		)
Proceeds from issuance of common stock	61.0			170.0			129.1
Repurchases of common stock	(1,587.7		)	(1,667.0		)	(358.8		)
Capital investment from Equipment Operations										264.1			69.0			43.8
Dividends paid	(697.9		)	(593.1		)	(483.5		)	(43.5		)	(340.1		)	(217.2		)
Excess tax benefits from share-based compensation	30.1			70.1			43.5
Other	(32.7		)	(17.3		)	(20.7		)	(33.6		)	(31.2		)	(20.6		)
Net cash provided by (used for) financing activities	83.3			(2,301.6		)	(2,054.7		)	4,017.4			2,170.1			871.6
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(63.2		)	(2.3		)	(17.2		)	24.4			13.7			(7.3		)
Net Increase (Decrease) in Cash and Cash Equivalents	720.4			(160.8		)	(341.5		)	284.6			17.4			(519.6		)
Cash and Cash Equivalents at Beginning of Year	3,187.5			3,348.3			3,689.8			459.7			442.3			961.9
Cash and Cash Equivalents at End of Year	$	3,907.9		$	3,187.5		$	3,348.3		$	744.3		$	459.7		$	442.3

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

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.