SUPPLEMENTAL CONSOLIDATING DATA (Tables)

6 Months Ended

May 03, 2020

SUPPLEMENTAL CONSOLIDATING DATA

Supplemental Consolidating Data Income Statement

(23) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended May 3, 2020 and April 28, 2019
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2020		2019		2020		2019
Net Sales and Revenues
Net sales	$	8,224	$	10,273
Finance and interest income		23		25	$	906	$	910
Other income		181		213		61		72
Total		8,428		10,511		967		982
Costs and Expenses
Cost of sales		6,294		7,755
Research and development expenses		406		457
Selling, administrative and general expenses		700		795		208		154
Interest expense		83		44		266		312
Interest compensation to Financial Services		73		92
Other operating expenses		21		67		416		344
Total		7,577		9,210		890		810
Income of Consolidated Group before Income Taxes		851		1,301		77		172
Provision for income taxes		228		291		17		52
Income of Consolidated Group		623		1,010		60		120
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services		60		121				1
Other		(17)		5
Total		43		126				1
Net Income		666		1,136		60		121
Less: Net income attributable to noncontrolling interests				1
Net Income Attributable to Deere & Company	$	666	$	1,135	$	60	$	121

* 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 Six Months Ended May 3, 2020 and April 28, 2019
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2020		2019		2020		2019
Net Sales and Revenues
Net sales	$	14,754	$	17,214
Finance and interest income		49		49	$	1,841	$	1,776
Other income		391		428		124		133
Total		15,194		17,691		1,965		1,909
Costs and Expenses
Cost of sales		11,372		13,187
Research and development expenses		831		864
Selling, administrative and general expenses		1,373		1,440		346		275
Interest expense		146		115		541		599
Interest compensation to Financial Services		137		162
Other operating expenses		92		138		824		669
Total		13,951		15,906		1,711		1,543
Income of Consolidated Group before Income Taxes		1,243		1,785		254		366
Provision for income taxes		237		436		58		92
Income of Consolidated Group		1,006		1,349		196		274
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services		197		275		1		1
Other		(19)		12
Total		178		287		1		1
Net Income		1,184		1,636		197		275
Less: Net income attributable to noncontrolling interests		2		3
Net Income Attributable to Deere & Company	$	1,182	$	1,633	$	197	$	275

* 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
	May 3		November 3		April 28		May 3		November 3		April 28
	2020		2019		2019		2020		2019		2019
Assets
Cash and cash equivalents	$	7,466	$	3,175	$	2,894	$	1,434	$	682	$	590
Marketable securities		3		1		7		623		580		538
Receivables from unconsolidated subsidiaries and affiliates		2,248		2,017		1,091
Trade accounts and notes receivable – net		1,419		1,482		1,608		6,050		5,153		7,554
Financing receivables – net		118		65		101		27,138		29,130		25,769
Financing receivables securitized – net		37		44		59		4,648		4,339		4,755
Other receivables		1,072		1,376		1,325		148		116		166
Equipment on operating leases – net								7,245		7,567		7,040
Inventories		6,171		5,975		7,161
Property and equipment – net		5,642		5,929		5,712		43		44		45
Investments in unconsolidated subsidiaries and affiliates		5,119		5,326		5,187		17		16		16
Goodwill		2,917		2,917		3,025
Other intangible assets – net		1,311		1,380		1,476
Retirement benefits		908		836		1,325		58		58		58
Deferred income taxes		1,796		1,896		1,575		52		57		73
Other assets		1,506		1,158		1,235		1,208		741		636
Total Assets	$	37,733	$	33,577	$	33,781	$	48,664	$	48,483	$	47,240
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings	$	1,398	$	987	$	1,337	$	9,781	$	9,797	$	10,425
Short-term securitization borrowings		37		44		58		4,603		4,277		4,644
Payables to unconsolidated subsidiaries and affiliates		91		142		200		2,216		1,970		1,057
Accounts payable and accrued expenses		8,416		9,232		9,470		2,149		1,836		1,813
Deferred income taxes		395		414		461		493		568		662
Long-term borrowings		9,947		5,415		4,679		24,377		24,814		23,576
Retirement benefits and other liabilities		5,584		5,912		5,638		101		94		95
Total liabilities		25,868		22,146		21,843		43,720		43,356		42,272
Commitments and contingencies (Note 16)
Redeemable noncontrolling interest (Note 22)				14		14
Stockholders’ Equity
Common stock, $1 par value (issued shares at May 3, 2020 – 536,431,204)		4,713		4,642		4,559		2,114		2,107		2,107
Common stock in treasury		(17,690)		(17,474)		(16,739)
Retained earnings		30,556		29,852		28,709		3,349		3,378		3,228
Accumulated other comprehensive income (loss)		(5,715)		(5,607)		(4,610)		(519)		(358)		(367)
Total Deere & Company stockholders’ equity		11,864		11,413		11,919		4,944		5,127		4,968
Noncontrolling interests		1		4		5
Total stockholders’ equity		11,865		11,417		11,924		4,944		5,127		4,968
Total Liabilities and Stockholders’ Equity	$	37,733	$	33,577	$	33,781	$	48,664	$	48,483	$	47,240

* 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 Six Months Ended May 3, 2020 and April 28, 2019
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2020		2019		2020		2019
Cash Flows from Operating Activities
Net income	$	1,184	$	1,636	$	197	$	275
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		9		5		98		32
Provision for depreciation and amortization		515		525		621		557
Impairment charges		82				32
Undistributed earnings of unconsolidated subsidiaries and affiliates		21		30		(1)		(1)
Provision (credit) for deferred income taxes		9		(118)		(70)		(164)
Changes in assets and liabilities:
Trade receivables and Equipment Operations' financing receivables		(80)		(271)
Inventories		(242)		(1,086)
Accounts payable and accrued expenses		(659)		247		30		53
Accrued income taxes payable/receivable		(154)		(344)		(19)		501
Retirement benefits		50		16		8		4
Other		107		68		95		99
Net cash provided by operating activities		842		708		991		1,356
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						10,385		9,894
Proceeds from maturities and sales of marketable securities				5		39		25
Proceeds from sales of equipment on operating leases						898		823
Cost of receivables acquired (excluding trade and wholesale)						(9,885)		(9,423)
Purchases of marketable securities				(2)		(71)		(57)
Purchases of property and equipment		(440)		(490)		(1)		(1)
Cost of equipment on operating leases acquired						(1,304)		(1,341)
Increase in trade and wholesale receivables						(673)		(3,028)
Collateral on derivatives - net				1		319		59
Other		(40)		(52)		(36)		(39)
Net cash used for investing activities		(480)		(538)		(329)		(3,088)
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		554		(131)		584		1,701
Change in intercompany receivables/payables		(292)		611		292		(611)
Proceeds from long-term borrowings		4,602		120		2,673		4,112
Payments of long-term borrowings		(152)		(158)		(3,163)		(3,269)
Proceeds from issuance of common stock		70		95
Repurchases of common stock		(263)		(481)
Dividends paid		(481)		(462)		(225)		(312)
Other		(61)		(35)		(13)		(12)
Net cash provided by (used for) financing activities		3,977		(441)		148		1,609
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		(58)		(27)		(44)		(8)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		4,281		(298)		766		(131)
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	$	7,477	$	2,904	$	1,526	$	682

* 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.