SUPPLEMENTAL CONSOLIDATING DATA (Tables)

9 Months Ended

Jul. 31, 2016

SUPPLEMENTAL CONSOLIDATING DATA

Supplemental Consolidating Data Income Statement

(21) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended July 31, 2016 and 2015
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2016		2015		2016		2015
Net Sales and Revenues
Net sales	$	5,861.4	$	6,839.5
Finance and interest income		15.1		20.8	$	691.0	$	644.3
Other income		216.9		140.8		27.6		51.2
Total		6,093.4		7,001.1		718.6		695.5
Costs and Expenses
Cost of sales		4,494.6		5,358.4
Research and development expenses		338.8		346.8
Selling, administrative and general expenses		573.1		633.5		137.6		123.9
Interest expense		65.9		69.6		140.8		113.6
Interest compensation to Financial Services		61.6		56.7
Other operating expenses		45.6		36.3		248.9		219.3
Total		5,579.6		6,501.3		527.3		456.8
Income of Consolidated Group before Income Taxes		513.8		499.8		191.3		238.7
Provision for income taxes		160.9		155.5		65.6		85.5
Income of Consolidated Group		352.9		344.3		125.7		153.2
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		125.9		153.4		.2		.2
Other		9.8		14.0
Total		135.7		167.4		.2		.2
Net Income		488.6		511.7		125.9		153.4
Less: Net income (loss) attributable to noncontrolling interests		(.2)		.1
Net Income Attributable to Deere & Company	$	488.8	$	511.6	$	125.9	$	153.4

* 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 Nine Months Ended July 31, 2016 and 2015
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2016		2015		2016		2015
Net Sales and Revenues
Net sales	$	17,737.1	$	19,843.1
Finance and interest income		45.8		58.8	$	1,988.9	$	1,900.9
Other income		497.1		451.2		143.9		201.4
Total		18,280.0		20,353.1		2,132.8		2,102.3
Costs and Expenses
Cost of sales		13,866.7		15,474.2
Research and development expenses		1,003.1		1,021.1
Selling, administrative and general expenses		1,642.6		1,794.1		379.6		366.9
Interest expense		195.7		208.0		386.7		346.0
Interest compensation to Financial Services		168.2		156.0
Other operating expenses		158.2		112.6		822.4		653.3
Total		17,034.5		18,766.0		1,588.7		1,366.2
Income of Consolidated Group before Income Taxes		1,245.5		1,587.1		544.1		736.1
Provision for income taxes		372.5		478.5		187.4		257.1
Income of Consolidated Group		873.0		1,108.6		356.7		479.0
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		357.9		480.0		1.2		1.0
Other		6.1		.8
Total		364.0		480.8		1.2		1.0
Net Income		1,237.0		1,589.4		357.9		480.0
Less: Net income (loss) attributable to noncontrolling interests		(1.6)		.6
Net Income Attributable to Deere & Company	$	1,238.6	$	1,588.8	$	357.9	$	480.0

* 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 Condensed Balance Sheet

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEET
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	July 31		October 31		July 31		July 31		October 31		July 31
	2016		2015		2015		2016		2015		2015
Assets
Cash and cash equivalents	$	3,134.9	$	2,900.0	$	2,907.1	$	1,186.1	$	1,262.2	$	1,223.7
Marketable securities		40.2		47.7		47.4		428.7		389.7		373.7
Receivables from unconsolidated subsidiaries and affiliates		2,429.5		2,428.7		2,941.5
Trade accounts and notes receivable - net		535.4		485.2		581.2		4,560.6		3,553.1		4,780.9
Financing receivables - net		.4		.9		4.7		22,594.4		24,808.1		24,968.7
Financing receivables securitized - net								5,947.4		4,834.6		4,737.8
Other receivables		726.6		849.5		779.2		103.0		152.9		76.2
Equipment on operating leases - net								5,602.7		4,970.4		4,426.0
Inventories		3,851.3		3,817.0		4,319.0
Property and equipment - net		4,994.7		5,126.2		5,072.4		52.6		55.3		54.0
Investments in unconsolidated subsidiaries and affiliates		4,752.9		4,817.6		4,923.8		11.6		10.5		10.2
Goodwill		823.6		726.0		715.9
Other intangible assets - net		109.5		63.6		57.8
Retirement benefits		319.0		211.9		335.5		21.8		25.0		27.1
Deferred income taxes		3,173.2		3,092.0		3,028.6		71.9		67.9		61.6
Other assets		860.1		807.3		859.4		1,045.8		779.1		730.0
Total Assets	$	25,751.3	$	25,373.6	$	26,573.5	$	41,626.6	$	40,908.8	$	41,469.9
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings	$	261.7	$	464.3	$	650.8	$	7,100.4	$	7,962.3	$	8,697.1
Short-term securitization borrowings								5,728.9		4,590.0		4,595.4
Payables to unconsolidated subsidiaries and affiliates		74.2		80.6		73.7		2,410.7		2,395.4		2,898.3
Accounts payable and accrued expenses		6,470.8		6,801.2		7,025.1		1,521.0		1,511.2		1,387.3
Deferred income taxes		97.3		86.8		79.9		707.5		466.6		456.2
Long-term borrowings		4,578.6		4,460.6		4,475.4		19,549.8		19,372.2		18,725.5
Retirement benefits and other liabilities		6,814.6		6,722.5		6,543.6		90.0		86.4		86.7
Total liabilities		18,297.2		18,616.0		18,848.5		37,108.3		36,384.1		36,846.5
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest (Note 18)		14.4
Stockholders’ Equity
Common stock, $1 par value (issued shares at July 31, 2016 – 536,431,204)		3,883.9		3,825.6		3,806.5		2,071.9		2,050.8		2,051.3
Common stock in treasury		(15,688.3)		(15,497.6)		(14,562.5)
Retained earnings		23,815.0		23,144.8		22,986.5		2,710.5		2,764.8		2,812.2
Accumulated other comprehensive income (loss)		(4,582.2)		(4,729.4)		(4,507.4)		(264.1)		(290.9)		(240.1)
Total Deere & Company stockholders' equity		7,428.4		6,743.4		7,723.1		4,518.3		4,524.7		4,623.4
Noncontrolling interests		11.3		14.2		1.9
Total stockholders’ equity		7,439.7		6,757.6		7,725.0		4,518.3		4,524.7		4,623.4
Total Liabilities and Stockholders’ Equity	$	25,751.3	$	25,373.6	$	26,573.5	$	41,626.6	$	40,908.8	$	41,469.9

* 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.

Supplemental Consolidating Data Statement of Cash Flows

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF CASH FLOWS
For the Nine Months Ended July 31, 2016 and 2015
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2016		2015		2016		2015
Cash Flows from Operating Activities
Net income	$	1,237.0	$	1,589.4	$	357.9	$	480.0
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		5.3		2.1		65.0		33.3
Provision for depreciation and amortization		613.7		605.6		615.5		503.2
Impairment charges						49.7
Undistributed earnings of unconsolidated subsidiaries and affiliates		55.9		(4.9)		(1.0)		(.8)
Provision (credit) for deferred income taxes		(77.0)		(39.6)		232.5		112.6
Changes in assets and liabilities:
Trade receivables		(57.5)		37.2
Insurance receivables								333.4
Inventories		59.5		(473.2)
Accounts payable and accrued expenses		(285.6)		(113.4)		7.8		(322.3)
Accrued income taxes payable/receivable		72.4		(82.9)		5.9		24.8
Retirement benefits		139.6		282.1		6.2		11.3
Other		(118.8)		145.8		56.8		(25.5)
Net cash provided by operating activities		1,644.5		1,948.2		1,396.3		1,150.0
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						12,208.1		12,516.5
Proceeds from maturities and sales of marketable securities		75.6		700.1		63.6		132.9
Proceeds from sales of equipment on operating leases						916.6		773.7
Proceeds from sales of business and unconsolidated affiliates, net of cash sold		81.1						149.2
Cost of receivables acquired (excluding trade and wholesale)						(11,236.7)		(12,063.2)
Purchases of marketable securities		(61.0)		(49.1)		(88.9)		(51.7)
Purchases of property and equipment		(385.4)		(458.1)		(1.6)		(3.3)
Cost of equipment on operating leases acquired						(2,324.8)		(1,988.6)
Increase in trade and wholesale receivables						(786.5)		(924.0)
Acquisitions of businesses, net of cash acquired		(198.9)
Other		(24.2)		2.2		70.7		(22.1)
Net cash provided by (used for) investing activities		(512.8)		195.1		(1,179.5)		(1,480.6)
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		(170.0)		318.5		36.3		1,486.7
Change in intercompany receivables/payables		(12.1)		447.2		12.1		(447.2)
Proceeds from long-term borrowings		139.4		6.7		3,975.8		3,633.1
Payments of long-term borrowings		(70.3)		(147.1)		(3,907.0)		(3,833.0)
Proceeds from issuance of common stock		17.5		170.4
Repurchases of common stock		(205.4)		(1,833.9)
Dividends paid		(572.6)		(617.9)		(412.1)		(479.6)
Excess tax benefits from share-based compensation		3.8		18.5
Other		(28.7)		(38.1)		(3.8)		9.5
Net cash provided by (used for) financing activities		(898.4)		(1,675.7)		(298.7)		369.5
Effect of Exchange Rate Changes on Cash and Cash Equivalents		1.6		(129.7)		5.8		(33.0)
Net Increase (Decrease) in Cash and Cash Equivalents		234.9		337.9		(76.1)		5.9
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	$	3,134.9	$	2,907.1	$	1,186.1	$	1,223.7

* 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.