SUPPLEMENTAL CONSOLIDATING DATA (Tables)

3 Months Ended

Feb. 02, 2020

SUPPLEMENTAL CONSOLIDATING DATA

Supplemental Consolidating Data Income Statement

(21) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended February 2, 2020 and January 27, 2019
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2020		2019		2020		2019
Net Sales and Revenues
Net sales	$	6,530	$	6,941
Finance and interest income		27		23	$	936	$	866
Other income		209		215		62		60
Total		6,766		7,179		998		926
Costs and Expenses
Cost of sales		5,078		5,432
Research and development expenses		425		407
Selling, administrative and general expenses		672		645		138		121
Interest expense		63		71		275		287
Interest compensation to Financial Services		64		69
Other operating expenses		72		71		408		325
Total		6,374		6,695		821		733
Income of Consolidated Group before Income Taxes		392		484		177		193
Provision for income taxes		9		144		41		40
Income of Consolidated Group		383		340		136		153
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services		137		154		1		1
Other		(2)		6
Total		135		160		1		1
Net Income		518		500		137		154
Less: Net income attributable to noncontrolling interests		1		2
Net Income Attributable to Deere & Company	$	517	$	498	$	137	$	154

* 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
	February 2		November 3		January 27		February 2		November 3		January 27
	2020		2019		2019		2020		2019		2019
Assets
Cash and cash equivalents	$	2,862	$	3,175	$	2,671	$	740	$	682	$	955
Marketable securities		4		1		8		605		580		515
Receivables from unconsolidated subsidiaries and affiliates		1,425		2,017		274
Trade accounts and notes receivable – net		1,115		1,482		1,177		5,707		5,153		5,746
Financing receivables – net		130		65		102		27,164		29,130		25,048
Financing receivables securitized – net		42		44		67		4,436		4,339		4,496
Other receivables		1,252		1,376		1,485		131		116		184
Equipment on operating leases – net								7,504		7,567		6,904
Inventories		6,482		5,975		7,402
Property and equipment – net		5,857		5,929		5,739		43		44		46
Investments in unconsolidated subsidiaries and affiliates		5,317		5,326		5,175		17		16		16
Goodwill		2,945		2,917		3,048
Other intangible assets – net		1,349		1,380		1,507
Retirement benefits		871		836		1,291		58		58		57
Deferred income taxes		1,821		1,896		1,507		56		57		70
Other assets		1,546		1,158		1,241		818		741		593
Total Assets	$	33,018	$	33,577	$	32,694	$	47,279	$	48,483	$	44,630
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings	$	947	$	987	$	1,494	$	9,061	$	9,797	$	9,244
Short-term securitization borrowings		42		44		67		4,374		4,277		4,397
Payables to unconsolidated subsidiaries and affiliates		146		142		227		1,387		1,970		155
Accounts payable and accrued expenses		8,325		9,232		8,711		1,786		1,836		1,821
Deferred income taxes		408		414		470		546		568		798
Long-term borrowings		5,567		5,415		4,712		24,908		24,814		23,143
Retirement benefits and other liabilities		5,639		5,912		5,666		100		94		93
Total liabilities		21,074		22,146		21,347		42,162		43,356		39,651
Commitments and contingencies (Note 16)
Redeemable noncontrolling interest		14		14		14
Stockholders’ Equity
Common stock, $1 par value (issued shares at February 2, 2020 – 536,431,204)		4,675		4,642		4,512		2,107		2,107		2,099
Common stock in treasury		(17,549)		(17,474)		(16,422)
Retained earnings		30,129		29,852		27,816		3,390		3,378		3,219
Accumulated other comprehensive income (loss)		(5,329)		(5,607)		(4,578)		(380)		(358)		(339)
Total Deere & Company stockholders' equity		11,926		11,413		11,328		5,117		5,127		4,979
Noncontrolling interests		4		4		5
Total stockholders’ equity		11,930		11,417		11,333		5,117		5,127		4,979
Total Liabilities and Stockholders’ Equity	$	33,018	$	33,577	$	32,694	$	47,279	$	48,483	$	44,630

* 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 Three Months Ended February 2, 2020 and January 27, 2019
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2020		2019		2020		2019
Cash Flows from Operating Activities
Net income	$	518	$	500	$	137	$	154
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses		1		(1)		14		3
Provision for depreciation and amortization		261		260		311		276
Undistributed earnings of unconsolidated subsidiaries and affiliates		(11)		39		(1)
Credit for deferred income taxes		(7)		(31)		(22)		(25)
Changes in assets and liabilities:
Trade receivables and Equipment Operations' financing receivables		312		186
Inventories		(530)		(1,290)
Accounts payable and accrued expenses		(1,058)		(535)		(19)		(12)
Accrued income taxes payable/receivable		(43)		(429)		(10)		527
Retirement benefits		30		(6)		6		2
Other		147		(127)		30		47
Net cash provided by (used for) operating activities		(380)		(1,434)		446		972
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						6,056		5,885
Proceeds from maturities and sales of marketable securities				3		18		5
Proceeds from sales of equipment on operating leases						426		371
Cost of receivables acquired (excluding trade and wholesale)						(4,569)		(4,448)
Purchases of marketable securities				(2)		(34)		(30)
Purchases of property and equipment		(271)		(297)
Cost of equipment on operating leases acquired						(669)		(505)
Increase in trade and wholesale receivables						(382)		(1,021)
Other		(9)		(6)		11		26
Net cash provided by (used for) investing activities		(280)		(302)		857		283
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		20		88		(493)		388
Change in intercompany receivables/payables		572		1,526		(572)		(1,526)
Proceeds from long-term borrowings		167		91		1,535		2,120
Payments of long-term borrowings		(83)		(142)		(1,568)		(1,799)
Proceeds from issuance of common stock		53		51
Repurchases of common stock		(114)		(144)
Dividends paid		(242)		(220)		(125)		(200)
Other		(29)		(23)		(9)		(8)
Net cash provided by (used for) financing activities		344		1,227		(1,232)		(1,025)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		3		(12)		(4)		(1)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		(313)		(521)		67		229
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		3,196		3,202		760		813
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	2,883	$	2,681	$	827	$	1,042

* 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.