SUPPLEMENTAL CONSOLIDATING DATA

9 Months Ended

Jul. 30, 2017

SUPPLEMENTAL CONSOLIDATING DATA

SUPPLEMENTAL CONSOLIDATING DATA

(21) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended July 30, 2017 and July 31, 2016
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2017		2016		2017		2016
Net Sales and Revenues
Net sales	$	6,833.0	$	5,861.4
Finance and interest income		20.3		15.1	$	744.8	$	691.0
Other income		266.6		216.9		63.4		27.6
Total		7,119.9		6,093.4		808.2		718.6
Costs and Expenses
Cost of sales		5,265.5		4,494.6
Research and development expenses		335.4		338.8
Selling, administrative and general expenses		639.7		573.1		152.7		137.6
Interest expense		65.8		65.9		161.3		140.8
Interest compensation to Financial Services		65.4		61.6
Other operating expenses		58.1		45.6		294.3		248.9
Total		6,429.9		5,579.6		608.3		527.3
Income of Consolidated Group before Income Taxes		690.0		513.8		199.9		191.3
Provision for income taxes		184.2		160.9		69.0		65.6
Income of Consolidated Group		505.8		352.9		130.9		125.7
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		131.2		125.9		.3		.2
Other		5.3		9.8
Total		136.5		135.7		.3		.2
Net Income		642.3		488.6		131.2		125.9
Less: Net income (loss) attributable to noncontrolling interests		.5		(.2)
Net Income Attributable to Deere & Company	$	641.8	$	488.8	$	131.2	$	125.9

* 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 (Continued)
STATEMENT OF INCOME
For the Nine Months Ended July 30, 2017 and July 31, 2016
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2017		2016		2017		2016
Net Sales and Revenues
Net sales	$	18,790.7	$	17,737.1
Finance and interest income		60.3		45.8	$	2,148.6	$	1,988.9
Other income		864.2		497.1		182.5		143.9
Total		19,715.2		18,280.0		2,331.1		2,132.8
Costs and Expenses
Cost of sales		14,507.8		13,866.7
Research and development expenses		970.7		1,003.1
Selling, administrative and general expenses		1,816.2		1,642.6		414.0		379.6
Interest expense		199.6		195.7		479.4		386.7
Interest compensation to Financial Services		171.5		168.2
Other operating expenses		189.7		158.2		910.2		822.4
Total		17,855.5		17,034.5		1,803.6		1,588.7
Income of Consolidated Group before Income Taxes		1,859.7		1,245.5		527.5		544.1
Provision for income taxes		569.2		372.5		179.5		187.4
Income of Consolidated Group		1,290.5		873.0		348.0		356.7
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		349.1		357.9		1.1		1.2
Other		8.9		6.1
Total		358.0		364.0		1.1		1.2
Net Income		1,648.5		1,237.0		349.1		357.9
Less: Net loss attributable to noncontrolling interests		(.3)		(1.6)
Net Income Attributable to Deere & Company	$	1,648.8	$	1,238.6	$	349.1	$	357.9

* 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 (Continued)
CONDENSED BALANCE SHEET
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	July 30		October 30		July 31		July 30		October 30		July 31
	2017		2016		2016		2017		2016		2016
Assets
Cash and cash equivalents	$	5,338.4	$	3,140.5	$	3,134.9	$	1,199.0	$	1,195.3	$	1,186.1
Marketable securities		21.4		34.2		40.2		404.7		419.3		428.7
Receivables from unconsolidated subsidiaries and affiliates		2,570.9		3,150.1		2,429.5
Trade accounts and notes receivable – net		758.8		654.2		535.4		4,828.8		3,370.5		4,560.6
Financing receivables – net				.4		.4		23,722.1		23,701.9		22,594.4
Financing receivables securitized – net								4,923.1		5,126.5		5,947.4
Other receivables		708.0		855.4		726.6		147.1		164.0		103.0
Equipment on operating leases – net								6,235.6		5,901.5		5,602.7
Inventories		4,252.9		3,340.5		3,851.3
Property and equipment – net		4,919.1		5,118.5		4,994.7		49.4		52.1		52.6
Investments in unconsolidated subsidiaries and affiliates		4,800.4		4,697.0		4,752.9		13.8		11.9		11.6
Goodwill		845.8		815.7		823.6
Other intangible assets – net		92.0		104.1		109.5
Retirement benefits		219.1		93.6		319.0		17.9		20.5		21.8
Deferred income taxes		3,720.6		3,556.0		3,173.2		68.8		75.5		71.9
Other assets		948.5		834.9		838.7		644.7		798.1		999.9
Total Assets	$	29,195.9	$	26,395.1	$	25,729.9	$	42,255.0	$	40,837.1	$	41,580.7
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings	$	342.8	$	249.0	$	261.7	$	8,676.6	$	6,661.7	$	7,098.9
Short-term securitization borrowings								4,780.9		4,997.8		5,722.6
Payables to unconsolidated subsidiaries and affiliates		77.8		81.5		74.2		2,542.4		3,133.6		2,410.7
Accounts payable and accrued expenses		7,213.5		6,661.2		6,470.8		1,611.2		1,595.2		1,521.0
Deferred income taxes		105.2		87.3		97.3		806.5		745.9		707.5
Long-term borrowings		4,523.6		4,565.3		4,557.2		19,150.7		19,137.7		19,511.7
Retirement benefits and other liabilities		8,344.1		8,206.0		6,814.6		93.4		89.0		90.0
Total liabilities		20,607.0		19,850.3		18,275.8		37,661.7		36,360.9		37,062.4
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest		14.0		14.0		14.4
Stockholders’ Equity
Common stock, $1 par value (issued shares at July 30, 2017 – 536,431,204)		4,245.1		3,911.8		3,883.9		2,099.1		2,079.1		2,071.9
Common stock in treasury		(15,477.3)		(15,677.1)		(15,688.3)
Retained earnings		24,984.2		23,911.3		23,815.0		2,699.2		2,670.3		2,710.5
Accumulated other comprehensive income (loss)		(5,179.8)		(5,626.0)		(4,582.2)		(205.0)		(273.2)		(264.1)
Total Deere & Company stockholders' equity		8,572.2		6,520.0		7,428.4		4,593.3		4,476.2		4,518.3
Noncontrolling interests		2.7		10.8		11.3
Total stockholders’ equity		8,574.9		6,530.8		7,439.7		4,593.3		4,476.2		4,518.3
Total Liabilities and Stockholders’ Equity	$	29,195.9	$	26,395.1	$	25,729.9	$	42,255.0	$	40,837.1	$	41,580.7

* 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.

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF CASH FLOWS
For the Nine Months Ended July 30, 2017 and July 31, 2016
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2017		2016		2017		2016
Cash Flows from Operating Activities
Net income	$	1,648.5	$	1,237.0	$	349.1	$	357.9
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		1.5		5.3		75.3		65.0
Provision for depreciation and amortization		640.1		613.7		725.1		615.5
Impairment charges								49.7
Gain on sale of unconsolidated affiliates and investments		(375.1)		(74.5)
Undistributed earnings of unconsolidated subsidiaries and affiliates		(37.3)		55.9		(1.0)		(1.0)
Provision (credit) for deferred income taxes		(145.1)		(77.0)		67.6		232.5
Changes in assets and liabilities:
Trade receivables		(104.2)		(57.5)
Inventories		(829.4)		59.5
Accounts payable and accrued expenses		471.8		(285.6)		28.9		7.8
Accrued income taxes payable/receivable		150.9		76.2		16.9		5.9
Retirement benefits		166.6		139.6		6.5		6.2
Other		(50.9)		(44.3)		116.0		56.8
Net cash provided by operating activities		1,537.4		1,648.3		1,384.4		1,396.3
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						12,275.9		12,208.1
Proceeds from maturities and sales of marketable securities		296.3		75.6		92.5		63.6
Proceeds from sales of equipment on operating leases						1,086.6		916.6
Proceeds from sales of businesses and unconsolidated affiliates, net of cash sold		113.9		81.1
Cost of receivables acquired (excluding trade and wholesale)						(12,366.5)		(11,236.7)
Purchases of marketable securities				(61.0)		(77.0)		(88.9)
Purchases of property and equipment		(372.5)		(385.4)		(1.2)		(1.6)
Cost of equipment on operating leases acquired						(2,096.2)		(2,324.8)
Increase in trade and wholesale receivables						(1,070.9)		(786.5)
Acquisitions of businesses, net of cash acquired				(198.9)
Other		(55.7)		(24.2)		(18.7)		70.7
Net cash used for investing activities		(18.0)		(512.8)		(2,175.5)		(1,179.5)
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		42.3		(170.0)		1,606.6		36.3
Change in intercompany receivables/payables		634.9		(12.1)		(634.9)		12.1
Proceeds from long-term borrowings		64.8		139.4		4,299.7		3,975.8
Payments of long-term borrowings		(44.5)		(70.3)		(4,161.1)		(3,907.0)
Proceeds from issuance of common stock		488.6		17.5
Repurchases of common stock		(6.2)		(205.4)
Dividends paid		(571.3)		(572.6)		(320.2)		(412.1)
Other		(43.2)		(28.7)		.3		(3.8)
Net cash provided by (used for) financing activities		565.4		(902.2)		790.4		(298.7)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		113.1		1.6		4.4		5.8
Net Increase (Decrease) in Cash and Cash Equivalents		2,197.9		234.9		3.7		(76.1)
Cash and Cash Equivalents at Beginning of Period		3,140.5		2,900.0		1,195.3		1,262.2
Cash and Cash Equivalents at End of Period	$	5,338.4	$	3,134.9	$	1,199.0	$	1,186.1

* 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.