SUPPLEMENTAL CONSOLIDATING DATA

6 Months Ended

Apr. 30, 2013

SUPPLEMENTAL CONSOLIDATING DATA

SUPPLEMENTAL CONSOLIDATING DATA

(18) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended April 30, 2013 and 2012

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2013		2012		2013		2012
Net Sales and Revenues
Net sales	$	10,265.0	$	9,404.6
Finance and interest income	20.6		17.1		$	555.6	$	533.6
Other income	130.1		132.2		38.9		21.3
Total	10,415.7		9,553.9		594.5		554.9
Costs and Expenses
Cost of sales	7,482.5		6,834.8
Research and development expenses	376.8		352.0
Selling, administrative and general expenses	836.9		767.7		122.3		116.3
Interest expense	73.4		50.5		127.4		157.0
Interest compensation to Financial Services	54.3		55.0
Other operating expenses	45.7		71.7		147.1		106.7
Total	8,869.6		8,131.7		396.8		380.0
Income of Consolidated Group before Income Taxes	1,546.1		1,422.2		197.7		174.9
Provision for income taxes	593.2		475.4		73.2		66.0
Income of Consolidated Group	952.9		946.8		124.5		108.9
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services	125.0		109.2		.5		.3
Other	6.4		2.1
Total	131.4		111.3		.5		.3
Net Income	1,084.3		1,058.1		125.0		109.2
Less:  Net income attributable to noncontrolling interests	.1		1.9
Net Income Attributable to Deere & Company	$	1,084.2	$	1,056.2	$	125.0	$	109.2

*   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.

For the Six Months Ended April 30, 2013 and 2012

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2013		2012		2013		2012
Net Sales and Revenues
Net sales	$	17,057.9	$	15,523.6
Finance and interest income	38.1		32.8		$	1,089.5	$	1,045.2
Other income	260.2		250.6		76.9		109.9
Total	17,356.2		15,807.0		1,166.4		1,155.1
Costs and Expenses
Cost of sales	12,497.7		11,411.1
Research and development expenses	733.3		664.5
Selling, administrative and general expenses	1,509.8		1,377.5		233.9		217.8
Interest expense	143.0		99.8		246.7		311.1
Interest compensation to Financial Services	95.8		95.9
Other operating expenses	80.7		110.0		291.8		277.1
Total	15,060.3		13,758.8		772.4		806.0
Income of Consolidated Group before Income Taxes	2,295.9		2,048.2		394.0		349.1
Provision for income taxes	818.4		685.8		136.9		121.6
Income of Consolidated Group	1,477.5		1,362.4		257.1		227.5
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services	257.9		228.3		.8		.8
Other	(1.4)		1.8
Total	256.5		230.1		.8		.8
Net Income	1,734.0		1,592.5		257.9		228.3
Less: Net income attributable to noncontrolling interests	.1		3.4
Net Income Attributable to Deere & Company	$	1,733.9	$	1,589.1	$	257.9	$	228.3

*   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.

CONDENSED BALANCE SHEET

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*									FINANCIAL SERVICES
	April 30 2013			October 31 2012			April 30 2012			April 30 2013		October 31 2012		April 30 2012
Assets
Cash and cash equivalents	$	3,145.8		$	3,907.9		$	1,700.4		$	505.7	$	744.3	$	1,319.3
Marketable securities	1,003.6			1,101.5			1,002.8			395.4		368.9		336.1
Receivables from unconsolidated subsidiaries and affiliates	2,738.8			1,579.0			2,192.4
Trade accounts and notes receivable - net	1,430.4			1,279.7			1,258.0			5,056.6		3,333.3		4,619.6
Financing receivables - net	12.0			11.5			14.0			22,732.8		22,147.5		19,438.7
Financing receivables securitized - net										3,788.3		3,617.6		3,116.0
Other receivables	911.9			1,092.4			790.8			267.8		703.6		306.0
Equipment on operating leases - net										2,575.5		2,527.8		2,168.0
Inventories	6,173.0			5,170.0			6,112.4
Property and equipment - net	5,054.6			4,950.5			4,324.3			59.4		61.4		63.3
Investments in unconsolidated subsidiaries and affiliates	4,271.6			4,102.4			3,695.3			9.6		8.7		8.3
Goodwill	922.9			921.2			965.3
Other intangible assets - net	89.8			101.0			110.2			4.0		4.0		4.0
Retirement benefits	30.6			14.9			29.7			41.0		44.6		26.2
Deferred income taxes	3,590.0			3,497.3			3,137.9			48.3		50.3		52.1
Other assets	611.2			582.9			553.9			842.1		883.5		773.3
Total Assets	$	29,986.2		$	28,312.2		$	25,887.4		$	36,326.5	$	34,495.5	$	32,230.9
Liabilities and Stockholders’ Equity
Short-term borrowings	$	1,368.6		$	424.8		$	1,592.0		$	7,045.4	$	5,967.7	$	6,318.0
Short-term securitization borrowings										3,788.4		3,574.8		3,033.3
Payables to unconsolidated subsidiaries and affiliates	143.3			135.2			189.6			2,686.4		1,519.3		2,125.5
Accounts payable and accrued expenses	7,728.0			7,679.0			7,109.9			1,523.9		2,129.9		1,368.1
Deferred income taxes	88.8			93.3			96.5			334.9		338.3		313.8
Long-term borrowings	4,925.2			5,444.9			3,174.9			16,827.7		17,008.2		15,544.5
Retirement benefits and other liabilities	7,465.5			7,673.0			6,328.5			68.6		61.2		57.8
Total liabilities	21,719.4			21,450.2			18,491.4			32,275.3		30,599.4		28,761.0
Commitments and contingencies (Note 14)
Common stock, $1 par value (issued shares at April 30, 2013 – 536,431,204)	3,474.4			3,352.2			3,298.9			1,882.1		1,834.7		1,613.5
Common stock in treasury	(8,987.0		)	(8,813.8		)	(8,005.1		)
Retained earnings	18,231.5			16,875.2			15,759.4			2,070.2		1,958.3		1,726.3
Accumulated other comprehensive income (loss)	(4,454.0		)	(4,571.5		)	(3,674.3		)	98.9		103.1		130.1
Total Deere & Company stockholders’ equity	8,264.9			6,842.1			7,378.9			4,051.2		3,896.1		3,469.9
Noncontrolling interests	1.9			19.9			17.1
Total stockholders’ equity	8,266.8			6,862.0			7,396.0			4,051.2		3,896.1		3,469.9
Total Liabilities and Stockholders’ Equity	$	29,986.2		$	28,312.2		$	25,887.4		$	36,326.5	$	34,495.5	$	32,230.9

* 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.

STATEMENT OF CASH FLOWS

For the Six Months Ended April 30, 2013 and 2012

(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2013		2012		2013		2012
Cash Flows from Operating Activities
Net income	$	1,734.0	$	1,592.5	$	257.9	$	228.3
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	5.9		5.1		2.6		6.5
Provision for depreciation and amortization	366.5		325.8		236.0		212.5
Undistributed earnings of unconsolidated subsidiaries and affiliates	(102.0)		(188.8)		(.8)		(.8)
Credit for deferred income taxes	(100.5)		(120.8)		(3.4)		(3.3)
Changes in assets and liabilities:
Trade receivables	(156.9)		(200.0)
Insurance receivables					462.0		81.4
Inventories	(1,016.4)		(1,806.1)
Accounts payable and accrued expenses	120.3		316.7		(511.2)		(193.9)
Accrued income taxes payable/receivable	104.5		234.3		(7.2)		16.4
Retirement benefits	5.9		(42.3)		10.9		7.0
Other	3.6		(34.7)		21.0		(44.9)
Net cash provided by operating activities	964.9		81.7		467.8		309.2
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)					8,420.6		7,685.9
Proceeds from maturities and sales of marketable securities	500.6				27.4		15.8
Proceeds from sales of equipment on operating leases					506.4		418.8
Proceeds from sales of businesses, net of cash sold			20.2
Cost of receivables acquired (excluding trade and wholesale)					(8,962.2)		(7,975.5)
Purchases of marketable securities	(404.0)		(501.7)		(56.5)		(68.7)
Purchases of property and equipment	(501.9)		(511.6)		(1.8)		(1.5)
Cost of equipment on operating leases acquired					(814.3)		(607.9)
Increase in trade and wholesale receivables					(2,049.2)		(1,575.2)
Other	(98.9)		(121.8)		(35.5)		(23.3)
Net cash used for investing activities	(504.2)		(1,114.9)		(2,965.1)		(2,131.6)
Cash Flows from Financing Activities
Increase in total short-term borrowings	235.3		1,097.9		1,106.4		199.7
Change in intercompany receivables/payables	(1,188.7)		(511.8)		1,188.7		511.8
Proceeds from long-term borrowings	238.4		44.9		2,232.2		4,012.0
Payments of long-term borrowings	(35.6)				(2,139.5)		(2,035.6)
Proceeds from issuance of common stock	149.7		28.9
Repurchases of common stock	(288.0)		(746.3)
Dividends paid	(357.6)		(333.0)		(146.0)		(43.5)
Excess tax benefits from share-based compensation	43.1		14.4
Other	(21.1)		(8.9)		35.4		23.6
Net cash provided by (used for) financing activities	(1,224.5)		(413.9)		2,277.2		2,668.0
Effect of Exchange Rate Changes on Cash and Cash Equivalents	1.7		(40.0)		(18.5)		14.0
Net Increase (Decrease) in Cash and Cash Equivalents	(762.1)		(1,487.1)		(238.6)		859.6
Cash and Cash Equivalents at Beginning of Period	3,907.9		3,187.5		744.3		459.7
Cash and Cash Equivalents at End of Period	$	3,145.8	$	1,700.4	$	505.7	$	1,319.3

* 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.