SEGMENT AND GEOGRAPHIC AREA DATA (Tables)

12 Months Ended

Nov. 03, 2019

SEGMENT AND GEOGRAPHIC AREA DATA

Schedule of Segment Reporting Information

Information relating to operations by operating segment in millions of dollars follows for the years ended November 3, 2019, October 28, 2018, and October 29, 2017. In addition to the following unaffiliated sales and revenues by segment, intersegment sales and revenues in 2019, 2018, and 2017 were as follows: agriculture and turf net sales of $34 million, $47 million, and $39 million, construction and forestry net sales of $1 million, none, and $1 million, and financial services revenues of $348 million, $308 million, and $244 million, respectively.

OPERATING SEGMENTS	2019		2018		2017
Net sales and revenues
Unaffiliated customers:
Agriculture and turf net sales	$	23,666	$	23,191	$	20,167
Construction and forestry net sales		11,220		10,160		5,718
Total net sales		34,886		33,351		25,885
Financial services revenues		3,621		3,252		2,935
Other revenues*		751		755		918
Total	$	39,258	$	37,358	$	29,738

*    Other revenues are primarily the equipment operations’ revenues for finance and interest income, and other income as disclosed in Note 32, net of certain intercompany eliminations.

Operating profit
Agriculture and turf	$	2,506	$	2,816	$	2,513
Construction and forestry		1,215		868		346
Financial services*		694		792		715
Total operating profit*		4,415		4,476		3,574
Interest income		85		80		55
Interest expense		(256)		(298)		(264)
Foreign exchange gains (losses) from equipment operations’ financing activities		(22)		36		(12)
Pension and OPEB benefit (cost), excluding service cost component		67		(15)		(31)
Corporate expenses – net		(180)		(181)		(192)
Income taxes		(852)		(1,727)		(971)
Total		(1,158)		(2,105)		(1,415)
Net income		3,257		2,371		2,159
Less: Net income attributable to noncontrolling interests		4		3
Net income attributable to Deere & Company	$	3,253	$	2,368	$	2,159

*    Operating profit of the financial services business segment includes the effect of its interest expense and foreign exchange gains or losses.

(continued)

OPERATING SEGMENTS	2019		2018		2017
Interest income*
Agriculture and turf	$	22	$	14	$	16
Construction and forestry		11		33		1
Financial services		2,316		1,997		1,771
Corporate		85		80		55
Intercompany		(360)		(330)		(268)
Total	$	2,074	$	1,794	$	1,575

*    Does not include finance rental income for equipment on operating leases.

Interest expense
Agriculture and turf	$	245	$	229	$	182
Construction and forestry		91		71		52
Financial services		1,234		936		669
Corporate		256		298		264
Intercompany		(360)		(330)		(268)
Total	$	1,466	$	1,204	$	899
Depreciation* and amortization expense
Agriculture and turf	$	723	$	723	$	695
Construction and forestry		292		251		145
Financial services		1,004		953		876
Total	$	2,019	$	1,927	$	1,716

*    Includes depreciation for equipment on operating leases.

Equity in income (loss) of unconsolidated affiliates
Agriculture and turf	$	6	$	6	$	2
Construction and forestry		14		19		(27)
Financial services		1		2		1
Total	$	21	$	27	$	(24)
Identifiable operating assets
Agriculture and turf	$	10,379	$	10,161	$	9,359
Construction and forestry		9,387		9,855		3,212
Financial services		48,483		45,720		42,596
Corporate*		4,762		4,372		10,619
Total	$	73,011	$	70,108	$	65,786

*    Corporate assets are primarily the equipment operations’ retirement benefits, deferred income tax assets, marketable securities, and cash and cash equivalents as disclosed in Note 32, net of certain intercompany eliminations.

Capital additions
Agriculture and turf	$	859	$	675	$	485
Construction and forestry		245		308		114
Financial services		3		2		3
Total	$	1,107	$	985	$	602
Investments in unconsolidated affiliates
Agriculture and turf	$	28	$	26	$	25
Construction and forestry		171		166		143
Financial services		16		15		14
Total	$	215	$	207	$	182

Schedule of Geographic Area Reporting Information

The company views and has historically disclosed its operations as consisting of two geographic areas, the U.S. and Canada, and outside the U.S. and Canada, shown below in millions of dollars. No individual foreign country’s net sales and revenues were material for disclosure purposes.

GEOGRAPHIC AREAS	2019		2018		2017
Net sales and revenues
Unaffiliated customers:
U.S. and Canada:
Equipment operations net sales and revenues*	$	20,647	$	18,847	$	15,031
Financial services revenues*		3,099		2,785		2,526
Total		23,746		21,632		17,557
Outside U.S. and Canada:
Equipment operations net sales and revenues		14,990		14,504		10,854
Financial services revenues		522		467		409
Total		15,512		14,971		11,263
Other revenues				755		918
Total	$	39,258	$	37,358	$	29,738

*    The 2018 and 2017 equipment operations’ amounts are only for net sales and approximate the proportion of each amount that relates to the U.S. only based on a three-year average. The equipment operations’ percentages for 2018 and 2017 were 88%. The financial services’ U.S. only percentages were 79% for both fiscal years. See Note 6 for additional 2019 geographic net sales and revenues information.

Operating profit
U.S. and Canada:
Equipment operations	$	2,335	$	2,356	$	1,754
Financial services		506		604		515
Total		2,841		2,960		2,269
Outside U.S. and Canada:
Equipment operations		1,386		1,328		1,105
Financial services		188		188		200
Total		1,574		1,516		1,305
Total	$	4,415	$	4,476	$	3,574

Property and equipment
U.S.	$	3,169	$	3,031	$	2,976
Germany		1,137		1,164		598
Other countries		1,667		1,673		1,494
Total	$	5,973	$	5,868	$	5,068