UNCONSOLIDATED AFFILIATED COMPANIES

12 Months Ended

Oct. 31, 2014

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), Ashok Leyland John Deere Construction Equipment Company Private Limited (50 percent ownership), Deere-Hitachi Maquinas de Construcao do Brasil S.A. (50 percent ownership) and John Deere Landscapes, LLC (38 percent ownership). The unconsolidated affiliated companies primarily manufacture or market equipment and landscapes products. 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	2014			2013		2012
Sales	$	3,082		$	2,299	$	2,722
Net income (loss)	1			10		(1		)
Deere & Company’s equity in net income (loss)	(8		)			(3		)
Financial Position				2014		2013
Total assets				$	2,101	$	1,566
Total external borrowings				648		550
Total net assets				842		547
Deere & Company’s share of the net assets				303		221

Consolidated retained earnings at October 31, 2014 include undistributed earnings of the unconsolidated affiliates of $152 million. Dividends from unconsolidated affiliates were $1 million in 2014, $10 million in 2013 and $.2 million in 2012.