SEGMENT AND GEOGRAPHIC AREA DATA FOR THE YEARS ENDED OCTOBER 31, 2013, 2012 AND 2011 (Tables)

12 Months Ended

Oct. 31, 2013

SEGMENT AND GEOGRAPHIC AREA DATA FOR THE YEARS ENDED OCTOBER 31, 2013, 2012 AND 2011

Schedule of Segment Reporting Information by Segment

Information relating to operations by operating segment in millions of dollars follows. In addition to the following unaffiliated sales and revenues by segment, intersegment sales and revenues in 2013, 2012 and 2011 were as follows: agriculture and turf net sales of $69 million, $84 million and $98 million, construction and forestry net sales of $2 million, $1 million and $3 million, and financial services revenues of $220 million, $219 million and $210 million, respectively.

OPERATING SEGMENTS	2013		2012		2011
Net sales and revenues
Unaffiliated customers:
Agriculture and turf net sales	$	29,132	$	27,123	$	24,094
Construction and forestry net sales	5,866		6,378		5,372
Total net sales	34,998		33,501		29,466
Financial services revenues	2,349		2,235		2,163
Other revenues*	448		421		384
Total	$	37,795	$	36,157	$	32,013

*   Other revenues are primarily the equipment operations’ revenues for finance and interest income, and other income as disclosed in Note 31, net of certain intercompany eliminations.

Operating profit
Agriculture and turf	$	4,680	$	3,921	$	3,447
Construction and forestry	378		476		392
Financial services*	870		712		725
Total operating profit	5,928		5,109		4,564
Interest income	55		43		47
Investment income	2		2
Interest expense	(297)		(231)		(191)
Foreign exchange losses from equipment operations’ financing activities	(8)		(11)		(11)
Corporate expenses - net	(197)		(181)		(177)
Income taxes	(1,946)		(1,659)		(1,424)
Total	(2,391)		(2,037)		(1,756)
Net income	3,537		3,072		2,808
Less: Net income attributable to noncontrolling interests			7		8
Net income attributable to Deere & Company	$	3,537	$	3,065	$	2,800

*   Operating profit of the financial services business segment includes the effect of its interest expense and foreign exchange gains or losses.

OPERATING SEGMENTS	2013		2012		2011
Interest income*
Agriculture and turf	$	24	$	29	$	23
Construction and forestry	2		2		3
Financial services	1,668		1,610		1,581
Corporate	55		43		47
Intercompany	(247)		(248)		(231)
Total	$	1,502	$	1,436	$	1,423

*   Does not include finance rental income for equipment on operating leases.

Interest expense
Agriculture and turf	$	167	$	168	$	152
Construction and forestry	36		36		26
Financial services	488		596		621
Corporate	297		231		191
Intercompany	(247)		(248)		(231)
Total	$	741	$	783	$	759

Depreciation* and amortization expense
Agriculture and turf	$	627	$	550	$	505
Construction and forestry	106		93		82
Financial services	407		361		328
Total	$	1,140	$	1,004	$	915

*   Includes depreciation for equipment on operating leases.

Equity in income (loss) of unconsolidated affiliates
Agriculture and turf	$	(1)	$	(2)	$	5
Construction and forestry			(2)		3
Financial services	1		1		1
Total			$	(3)	$	9

Identifiable operating assets
Agriculture and turf	$	10,799	$	10,429	$	9,178
Construction and forestry	3,461		3,365		2,915
Financial services	38,646		34,495		29,795
Corporate*	6,615		7,977		6,319
Total	$	59,521	$	56,266	$	48,207

*   Corporate assets are primarily the equipment operations’ retirement benefits, deferred income tax assets, marketable securities and cash and cash equivalents as disclosed in Note 31, net of certain intercompany eliminations.

Capital additions
Agriculture and turf	$	981	$	1,145	$	909
Construction and forestry	174		228		148
Financial services	3		3		2
Total	$	1,158	$	1,376	$	1,059

Investments in unconsolidated affiliates
Agriculture and turf	$	24	$	32	$	35
Construction and forestry	187		174		159
Financial services	10		9		8
Total	$	221	$	215	$	202

Schedule of Geographic Area Reporting Information

The company views and has historically disclosed its operations as consisting of two geographic areas, the U.S. and Canada, and outside the U.S. and Canada, shown below in millions of dollars. No individual foreign country’s net sales and revenues were material for disclosure purposes.

GEOGRAPHIC AREAS	2013		2012		2011
Net sales and revenues
Unaffiliated customers:
U.S. and Canada:
Equipment operations net sales (87%)*	$	21,821	$	20,807	$	17,357
Financial services revenues (77%)*	2,031		1,930		1,857
Total	23,852		22,737		19,214
Outside U.S. and Canada:
Equipment operations net sales	13,177		12,694		12,109
Financial services revenues	318		305		306
Total	13,495		12,999		12,415
Other revenues	448		421		384
Total	$	37,795	$	36,157	$	32,013

*   The percentages indicate the approximate proportion of each amount that relates to the U.S. only and are based upon a three-year average for 2013, 2012 and 2011.

Operating profit
U.S. and Canada:
Equipment operations	$	4,062	$	3,836	$	2,898
Financial services	706		566		593
Total	4,768		4,402		3,491
Outside U.S. and Canada:
Equipment operations	996		561		941
Financial services	164		146		132
Total	1,160		707		1,073
Total	$	5,928	$	5,109	$	4,564
Property and equipment
U.S.	$	2,997	$	2,742	$	2,329
Germany	647		568		572
Other countries	1,823		1,702		1,451
Total	$	5,467	$	5,012	$	4,352