SUPPLEMENTAL CONSOLIDATING DATA

9 Months Ended

Jul. 28, 2019

SUPPLEMENTAL CONSOLIDATING DATA

SUPPLEMENTAL CONSOLIDATING DATA

(20) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended July 28, 2019 and July 29, 2018
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2019		2018		2019		2018
Net Sales and Revenues
Net sales	$	8,969	$	9,286
Finance and interest income		30		31	$	952	$	852
Other income		185		231		51		67
Total		9,184		9,548		1,003		919
Costs and Expenses
Cost of sales		6,871		7,153
Research and development expenses		431		416
Selling, administrative and general expenses		751		769		147		145
Interest expense		67		52		311		250
Interest compensation to Financial Services		93		86
Other operating expenses		64		80		339		326
Total		8,277		8,556		797		721
Income of Consolidated Group before Income Taxes		907		992		206		198
Provision for income taxes		190		242		31		47
Income of Consolidated Group		717		750		175		151
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		175		151
Other		7		10
Total		182		161
Net Income		899		911		175		151
Less: Net income attributable to noncontrolling interests				1
Net Income Attributable to Deere & Company	$	899	$	910	$	175	$	151

* 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 28, 2019 and July 29, 2018
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2019		2018		2019		2018
Net Sales and Revenues
Net sales	$	26,182	$	25,007
Finance and interest income		79		70	$	2,727	$	2,441
Other income		614		631		184		195
Total		26,875		25,708		2,911		2,636
Costs and Expenses
Cost of sales		20,058		19,192
Research and development expenses		1,295		1,188
Selling, administrative and general expenses		2,191		2,159		422		403
Interest expense		182		226		910		675
Interest compensation to Financial Services		254		228
Other operating expenses		203		219		1,008		962
Total		24,183		23,212		2,340		2,040
Income of Consolidated Group before Income Taxes		2,692		2,496		571		596
Provision (credit) for income taxes		625		1,607		123		(83)
Income of Consolidated Group		2,067		889		448		679
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		450		681		2		2
Other		18		16
Total		468		697		2		2
Net Income		2,535		1,586		450		681
Less: Net income attributable to noncontrolling interests		3		2
Net Income Attributable to Deere & Company	$	2,532	$	1,584	$	450	$	681

* 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 28		October 28		July 29		July 28		October 28		July 29
	2019		2018		2018		2019		2018		2018
Assets
Cash and cash equivalents	$	2,694	$	3,195	$	2,803	$	689	$	709	$	1,120
Marketable securities		5		8		11		560		482		477
Receivables from unconsolidated subsidiaries and affiliates		2,395		1,700		1,795
Trade accounts and notes receivable – net		1,606		1,374		1,586		6,807		4,906		6,080
Financing receivables – net		100		93		78		26,949		26,961		25,135
Financing receivables securitized – net		54		76		90		5,146		3,946		4,572
Other receivables		1,428		1,010		1,131		126		776		176
Equipment on operating leases – net								7,269		7,165		6,805
Inventories		6,747		6,149		6,239
Property and equipment – net		5,753		5,821		5,592		45		47		46
Investments in unconsolidated subsidiaries and affiliates		5,309		5,231		4,992		16		15		15
Goodwill		3,013		3,101		3,047
Other intangible assets – net		1,444		1,562		1,581
Retirement benefits		1,374		1,241		727		57		57		14
Deferred income taxes		1,579		1,503		1,984		72		69		68
Other assets		1,269		1,133		1,148		708		587		530
Total Assets	$	34,770	$	33,197	$	32,804	$	48,444	$	45,720	$	45,038
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings	$	1,372	$	1,434	$	789	$	9,770	$	9,628	$	10,215
Short-term securitization borrowings		53		75		90		4,995		3,882		4,438
Payables to unconsolidated subsidiaries and affiliates		136		129		111		2,341		1,678		1,766
Accounts payable and accrued expenses		9,422		9,383		9,047		1,641		2,056		1,902
Deferred income taxes		454		497		431		616		823		500
Long-term borrowings		5,364		4,714		5,526		23,878		22,523		21,312
Retirement benefits and other liabilities		5,685		5,660		6,430		97		91		96
Total liabilities		22,486		21,892		22,424		43,338		40,681		40,229
Commitments and contingencies (Note 15)
Redeemable noncontrolling interest		14		14		14
Stockholders’ Equity
Common stock, $1 par value (issued shares at July 28, 2019 – 536,431,204)		4,599		4,474		4,451		2,107		2,100		2,100
Common stock in treasury		(17,121)		(16,312)		(15,814)
Retained earnings		29,369		27,553		26,272		3,338		3,257		3,009
Accumulated other comprehensive income (loss)		(4,581)		(4,427)		(4,553)		(339)		(318)		(300)
Total Deere & Company stockholders’ equity		12,266		11,288		10,356		5,106		5,039		4,809
Noncontrolling interests		4		3		10
Total stockholders’ equity		12,270		11,291		10,366		5,106		5,039		4,809
Total Liabilities and Stockholders’ Equity	$	34,770	$	33,197	$	32,804	$	48,444	$	45,720	$	45,038

* 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 28, 2019 and July 29, 2018
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2019		2018		2019		2018
Cash Flows from Operating Activities
Net income	$	2,535	$	1,586	$	450	$	681
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		1		19		57		47
Provision for depreciation and amortization		782		741		836		800
Gain on sales of businesses				(25)
Undistributed earnings of unconsolidated subsidiaries and affiliates		(62)		(235)		(1)		(1)
Provision (credit) for deferred income taxes		(123)		986		(209)		(345)
Changes in assets and liabilities:
Trade receivables and Equipment Operations' financing receivables		(248)		(331)
Inventories		(670)		(975)
Accounts payable and accrued expenses		50		519		23		66
Accrued income taxes payable/receivable		(282)		231		535		(55)
Retirement benefits		35		(821)		5		7
Other		(59)		(86)		140		141
Net cash provided by operating activities		1,959		1,609		1,836		1,341
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						13,807		13,246
Proceeds from maturities and sales of marketable securities		9		9		63		47
Proceeds from sales of equipment on operating leases						1,171		1,116
Proceeds from sales of businesses, net of cash sold				133
Cost of receivables acquired (excluding trade and wholesale)						(14,597)		(13,830)
Acquisitions of businesses, net of cash acquired				(5,171)
Purchases of marketable securities		(3)				(107)		(101)
Purchases of property and equipment		(754)		(569)		(2)		(2)
Cost of equipment on operating leases acquired						(2,135)		(2,190)
Increase in trade and wholesale receivables						(2,551)		(2,330)
Other		(64)		42		12		(61)
Net cash used for investing activities		(812)		(5,556)		(4,339)		(4,105)
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		(119)		119		(217)		1,064
Change in intercompany receivables/payables		(683)		(797)		683		797
Proceeds from long-term borrowings		868		159		6,572		5,580
Payments of long-term borrowings		(194)		(118)		(4,162)		(4,254)
Proceeds from issuance of common stock		133		209
Repurchases of common stock		(880)		(454)
Dividends paid		(703)		(583)		(377)		(454)
Other		(52)		(41)		(22)		(25)
Net cash provided by (used for) financing activities		(1,630)		(1,506)		2,477		2,708
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		(16)		89		(8)		(18)
Net Decrease in Cash, Cash Equivalents, and Restricted Cash		(499)		(5,364)		(34)		(74)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		3,202		8,174		813		1,293
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	2,703	$	2,810	$	779	$	1,219

* 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.