SUPPLEMENTAL CONSOLIDATING DATA

6 Months Ended

Apr. 30, 2016

SUPPLEMENTAL CONSOLIDATING DATA

SUPPLEMENTAL CONSOLIDATING DATA

(20) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended April 30, 2016 and 2015
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2016		2015		2016		2015
Net Sales and Revenues
Net sales	$	7,106.6	$	7,398.5
Finance and interest income		12.9		17.5	$	662.9	$	623.6
Other income		139.9		150.3		68.2		85.3
Total		7,259.4		7,566.3		731.1		708.9
Costs and Expenses
Cost of sales		5,531.5		5,694.7
Research and development expenses		345.0		341.1
Selling, administrative and general expenses		588.5		620.4		128.0		121.8
Interest expense		67.7		67.3		125.9		109.5
Interest compensation to Financial Services		61.8		53.4
Other operating expenses		91.4		37.2		317.4		212.8
Total		6,685.9		6,814.1		571.3		444.1
Income of Consolidated Group before Income Taxes		573.5		752.2		159.8		264.8
Provision for income taxes		180.4		228.6		57.4		95.4
Income of Consolidated Group		393.1		523.6		102.4		169.4
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services		102.6		169.8		.2		.4
Other		(1.0)		(2.6)
Total		101.6		167.2		.2		.4
Net Income		494.7		690.8		102.6		169.8
Less: Net income (loss) attributable to noncontrolling interests		(.7)		.3
Net Income Attributable to Deere & Company	$	495.4	$	690.5	$	102.6	$	169.8

* 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.

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF INCOME
For the Six Months Ended April 30, 2016 and 2015
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2016		2015		2016		2015
Net Sales and Revenues
Net sales	$	11,875.8	$	13,003.6
Finance and interest income		30.8		38.0	$	1,297.9	$	1,256.6
Other income		280.0		310.4		116.3		150.2
Total		12,186.6		13,352.0		1,414.2		1,406.8
Costs and Expenses
Cost of sales		9,372.1		10,115.8
Research and development expenses		664.3		674.3
Selling, administrative and general expenses		1,069.6		1,160.6		242.0		243.0
Interest expense		129.8		138.4		245.9		232.4
Interest compensation to Financial Services		106.6		99.4
Other operating expenses		112.5		76.2		573.5		434.0
Total		11,454.9		12,264.7		1,061.4		909.4
Income of Consolidated Group before Income Taxes		731.7		1,087.3		352.8		497.4
Provision for income taxes		211.5		323.0		121.8		171.6
Income of Consolidated Group		520.2		764.3		231.0		325.8
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services		232.0		326.6		1.0		.8
Other		(3.7)		(13.2)
Total		228.3		313.4		1.0		.8
Net Income		748.5		1,077.7		232.0		326.6
Less: Net income (loss) attributable to noncontrolling interests		(1.3)		.5
Net Income Attributable to Deere & Company	$	749.8	$	1,077.2	$	232.0	$	326.6

* 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.

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEET
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	April 30		October 31		April 30		April 30		October 31		April 30
	2016		2015		2015		2016		2015		2015
Assets
Cash and cash equivalents	$	2,790.8	$	2,900.0	$	3,162.9	$	1,342.4	$	1,262.2	$	1,192.5
Marketable securities		71.2		47.7				404.3		389.7		392.9
Receivables from unconsolidated subsidiaries and affiliates		2,226.2		2,428.7		2,558.0
Trade accounts and notes receivable - net		631.2		485.2		681.3		5,529.4		3,553.1		5,160.8
Financing receivables - net		.7		.9		8.7		23,414.6		24,808.1		24,737.1
Financing receivables securitized - net								4,734.7		4,834.6		4,741.1
Other receivables		778.2		849.5		780.7		130.8		152.9		122.5
Equipment on operating leases - net								5,455.5		4,970.4		4,195.2
Inventories		4,061.0		3,817.0		4,624.2
Property and equipment - net		5,026.2		5,126.2		5,191.7		53.5		55.3		53.4
Investments in unconsolidated subsidiaries and affiliates		4,774.7		4,817.6		4,895.5		11.9		10.5		10.5
Goodwill		835.0		726.0		737.0
Other intangible assets - net		120.5		63.6		60.4
Retirement benefits		280.9		211.9		314.3		23.2		25.0		29.0
Deferred income taxes		3,185.7		3,092.0		2,991.2		70.4		67.9		62.9
Other assets		883.0		807.3		889.9		932.3		779.1		700.2
Total Assets	$	25,665.3	$	25,373.6	$	26,895.8	$	42,103.0	$	40,908.8	$	41,398.1
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings	$	218.7	$	464.3	$	549.6	$	8,357.3	$	7,962.3	$	8,439.4
Short-term securitization borrowings								4,641.8		4,590.0		4,702.7
Payables to unconsolidated subsidiaries and affiliates		109.5		80.6		130.1		2,144.9		2,395.4		2,511.6
Accounts payable and accrued expenses		6,674.5		6,801.2		6,964.0		1,603.7		1,511.2		1,453.5
Deferred income taxes		102.7		86.8		79.3		651.8		466.6		464.8
Long-term borrowings		4,584.0		4,460.6		4,488.9		20,064.0		19,372.2		19,133.9
Retirement benefits and other liabilities		6,785.2		6,722.5		6,507.9		89.6		86.4		85.5
Total liabilities		18,474.6		18,616.0		18,719.8		37,553.1		36,384.1		36,791.4
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest (Note 18)		14.0
Stockholders’ Equity
Common stock, $1 par value (issued shares at April 30, 2016 – 536,431,204)		3,862.0		3,825.6		3,745.2		2,071.9		2,050.8		2,051.3
Common stock in treasury		(15,693.6)		(15,497.6)		(13,951.2)
Retained earnings		23,514.7		23,144.8		22,673.4		2,719.7		2,764.8		2,718.8
Accumulated other comprehensive income (loss)		(4,518.8)		(4,729.4)		(4,293.6)		(241.7)		(290.9)		(163.4)
Total Deere & Company stockholders' equity		7,164.3		6,743.4		8,173.8		4,549.9		4,524.7		4,606.7
Noncontrolling interests		12.4		14.2		2.2
Total stockholders’ equity		7,176.7		6,757.6		8,176.0		4,549.9		4,524.7		4,606.7
Total Liabilities and Stockholders’ Equity	$	25,665.3	$	25,373.6	$	26,895.8	$	42,103.0	$	40,908.8	$	41,398.1

* 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.

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF CASH FLOWS
For the Six Months Ended April 30, 2016 and 2015
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2016		2015		2016		2015
Cash Flows from Operating Activities
Net income	$	748.5	$	1,077.7	$	232.0	$	326.6
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		4.0		.3		31.1		14.8
Provision for depreciation and amortization		410.2		409.8		399.4		328.4
Impairment charges						49.7
Undistributed earnings of unconsolidated subsidiaries and affiliates		51.5		102.6		(1.0)		(.8)
Provision (credit) for deferred income taxes		(87.3)		(3.0)		180.6		120.8
Changes in assets and liabilities:
Trade receivables		(142.2)		(33.2)
Insurance receivables								333.4
Inventories		(136.7)		(656.8)
Accounts payable and accrued expenses		(107.9)		(219.2)		14.7		(336.8)
Accrued income taxes payable/receivable		.2		(82.1)		11.8		5.8
Retirement benefits		86.8		179.3		4.3		7.3
Other		(18.2)		75.8		40.7		(42.7)
Net cash provided by operating activities		808.9		851.2		963.3		756.8
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						8,699.2		8,998.2
Proceeds from maturities and sales of marketable securities		31.3		700.0		40.1		91.9
Proceeds from sales of equipment on operating leases						630.1		552.3
Proceeds from sale of business, net of cash sold								148.8
Cost of receivables acquired (excluding trade and wholesale)						(7,343.6)		(7,977.1)
Purchases of marketable securities		(63.1)				(49.1)		(33.9)
Purchases of property and equipment		(231.7)		(323.2)		(.9)		(1.1)
Cost of equipment on operating leases acquired						(1,567.7)		(1,203.4)
Increase in trade and wholesale receivables						(1,547.0)		(1,084.7)
Acquisitions of businesses, net of cash acquired		(198.9)
Other		(70.9)		(51.1)		53.6		(36.0)
Net cash provided by (used for) investing activities		(533.3)		325.7		(1,085.3)		(545.0)
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		(193.4)		84.6		231.7		1,062.4
Change in intercompany receivables/payables		290.8		960.7		(290.8)		(960.7)
Proceeds from long-term borrowings		133.5		7.0		3,143.1		2,505.2
Payments of long-term borrowings		(67.7)		(39.8)		(2,618.9)		(2,413.5)
Proceeds from issuance of common stock		11.1		86.1
Repurchases of common stock		(205.4)		(1,173.9)
Dividends paid		(383.2)		(415.8)		(277.1)		(419.6)
Excess tax benefits from share-based compensation		2.7		11.7
Other		(14.4)		(24.1)		2.9		13.2
Net cash provided by (used for) financing activities		(426.0)		(503.5)		190.9		(213.0)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		41.2		(79.7)		11.3		(24.1)
Net Increase (Decrease) in Cash and Cash Equivalents		(109.2)		593.7		80.2		(25.3)
Cash and Cash Equivalents at Beginning of Period		2,900.0		2,569.2		1,262.2		1,217.8
Cash and Cash Equivalents at End of Period	$	2,790.8	$	3,162.9	$	1,342.4	$	1,192.5

* 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.