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SUPPLEMENTAL CONSOLIDATING DATA
9 Months Ended
Aug. 02, 2020
SUPPLEMENTAL CONSOLIDATING DATA  
SUPPLEMENTAL CONSOLIDATING DATA

(21) SUPPLEMENTAL CONSOLIDATING DATA

STATEMENT OF INCOME

For the Three Months Ended August 2, 2020 and July 28, 2019

(In millions of dollars) Unaudited

EQUIPMENT OPERATIONS*

FINANCIAL SERVICES

 

2020

2019

2020

2019

 

Net Sales and Revenues

    

 

    

    

 

    

Net sales

$

7,859

$

8,969

Finance and interest income

25

 

30

$

878

$

952

Other income

206

 

185

73

 

51

Total

8,090

 

9,184

951

 

1,003

Costs and Expenses

Cost of sales

5,836

 

6,871

Research and development expenses

370

 

431

Selling, administrative and general expenses

616

 

751

137

 

147

Interest expense

91

 

67

206

 

311

Interest compensation to Financial Services

58

 

93

Other operating expenses

94

 

64

363

 

339

Total

7,065

 

8,277

706

 

797

Income of Consolidated Group before Income Taxes

1,025

 

907

245

 

206

Provision for income taxes

395

 

190

62

 

31

Income of Consolidated Group

630

 

717

183

 

175

Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates

Financial Services

183

 

175

 

Other

(2)

 

7

Total

181

 

182

 

Net Income

811

 

899

183

 

175

Less: Net income attributable to noncontrolling interests

 

Net Income Attributable to Deere & Company

$

811

$

899

$

183

$

175

*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 August 2, 2020 and July 28, 2019

(In millions of dollars) Unaudited

EQUIPMENT OPERATIONS*

FINANCIAL SERVICES

 

2020

2019

2020

2019

 

Net Sales and Revenues

Net sales

$

22,612

$

26,182

Finance and interest income

75

 

79

$

2,720

$

2,727

Other income

597

 

614

196

 

184

Total

23,284

 

26,875

2,916

 

2,911

Costs and Expenses

Cost of sales

17,208

 

20,058

Research and development expenses

1,201

 

1,295

Selling, administrative and general expenses

1,989

 

2,191

483

 

422

Interest expense

237

 

182

747

 

910

Interest compensation to Financial Services

195

 

254

Other operating expenses

186

 

203

1,187

 

1,008

Total

21,016

 

24,183

2,417

 

2,340

Income of Consolidated Group before Income Taxes

2,268

 

2,692

499

 

571

Provision for income taxes

632

 

625

120

 

123

Income of Consolidated Group

1,636

 

2,067

379

 

448

Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates

Financial Services

381

 

450

2

 

2

Other

(22)

 

18

Total

359

 

468

2

 

2

Net Income

1,995

 

2,535

381

 

450

Less: Net income attributable to noncontrolling interests

2

 

3

Net Income Attributable to Deere & Company

$

1,993

$

2,532

$

381

$

450

*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

 

August 2

November 3

July 28

August 2

November 3

July 28

 

2020

2019

2019

2020

2019

2019

 

Assets

  

               

  

    

  

               

  

               

   

    

  

               

Cash and cash equivalents

$

7,440

$

3,175

$

2,694

$

750

$

682

$

689

Marketable securities

8

 

1

 

5

632

 

580

 

560

Receivables from unconsolidated subsidiaries and affiliates

3,619

 

2,017

 

2,395

Trade accounts and notes receivable – net

1,251

 

1,482

 

1,606

5,595

 

5,153

 

6,807

Financing receivables – net

111

 

65

 

100

27,703

 

29,130

 

26,949

Financing receivables securitized – net

37

44

54

5,432

 

4,339

 

5,146

Other receivables

1,083

 

1,376

 

1,428

162

 

116

 

126

Equipment on operating leases – net

7,158

 

7,567

 

7,269

Inventories

5,650

 

5,975

 

6,747

Property and equipment – net

5,711

 

5,929

 

5,753

43

 

44

 

45

Investments in unconsolidated subsidiaries and affiliates

5,383

 

5,326

 

5,309

19

 

16

 

16

Goodwill

2,984

 

2,917

 

3,013

Other intangible assets – net

1,301

 

1,380

 

1,444

 

 

Retirement benefits

972

 

836

 

1,374

59

 

58

 

57

Deferred income taxes

1,865

 

1,896

 

1,579

56

 

57

 

72

Other assets

1,566

 

1,158

 

1,269

1,260

 

741

 

708

Total Assets

$

38,981

$

33,577

$

34,770

$

48,869

$

48,483

$

48,444

Liabilities and Stockholders’ Equity

Liabilities

Short-term borrowings

$

853

$

987

$

1,372

$

8,222

$

9,797

$

9,770

Short-term securitization borrowings

37

44

53

5,324

 

4,277

 

4,995

Payables to unconsolidated subsidiaries and affiliates

80

 

142

 

136

3,593

 

1,970

 

2,341

Accounts payable and accrued expenses

8,834

 

9,232

 

9,422

2,134

 

1,836

 

1,641

Deferred income taxes

398

 

414

 

454

468

 

568

 

616

Long-term borrowings

10,217

 

5,415

 

5,364

23,820

 

24,814

 

23,878

Retirement benefits and other liabilities

5,671

 

5,912

 

5,685

105

 

94

 

97

Total liabilities

26,090

22,146

22,486

43,666

43,356

43,338

Commitments and contingencies (Note 16)

Redeemable noncontrolling interest (Note 20)

14

14

Stockholders’ Equity

Common stock, $1 par value (issued shares at August 2, 2020 – 536,431,204)

4,750

 

4,642

 

4,599

2,121

 

2,107

 

2,107

Common stock in treasury

(17,671)

 

(17,474)

 

(17,121)

Retained earnings

31,128

 

29,852

 

29,369

3,498

 

3,378

 

3,338

Accumulated other comprehensive income (loss)

(5,319)

 

(5,607)

 

(4,581)

(416)

 

(358)

 

(339)

Total Deere & Company stockholders’ equity

12,888

 

11,413

 

12,266

5,203

5,127

5,106

Noncontrolling interests

3

 

4

 

4

Total stockholders’ equity

12,891

 

11,417

 

12,270

5,203

 

5,127

 

5,106

Total Liabilities and Stockholders’ Equity

$

38,981

$

33,577

$

34,770

$

48,869

$

48,483

$

48,444

*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 August 2, 2020 and July 28, 2019

(In millions of dollars) Unaudited

EQUIPMENT OPERATIONS*

FINANCIAL SERVICES

2020

2019

2020

2019

Cash Flows from Operating Activities

    

    

    

    

    

    

    

    

Net income

$

1,995

$

2,535

$

381

$

450

Adjustments to reconcile net income to net cash provided by operating activities:

Provision for credit losses

 

6

 

1

 

117

 

57

Provision for depreciation and amortization

 

787

 

782

 

925

 

836

Impairment charges

115

 

 

32

 

Undistributed earnings of unconsolidated subsidiaries and affiliates

 

(124)

 

(62)

 

(1)

 

(1)

Credit for deferred income taxes

 

(57)

 

(123)

 

(103)

 

(209)

Changes in assets and liabilities:

Trade receivables and Equipment Operations' financing receivables

 

116

 

(248)

Inventories

 

387

 

(670)

Accounts payable and accrued expenses

 

(567)

 

50

 

(38)

 

23

Accrued income taxes payable/receivable

 

(25)

 

(282)

 

29

 

535

Retirement benefits

 

77

 

35

 

11

 

5

Other

 

145

 

(59)

 

89

 

140

Net cash provided by operating activities

 

2,855

 

1,959

 

1,442

 

1,836

Cash Flows from Investing Activities

Collections of receivables (excluding trade and wholesale)

 

14,352

 

13,807

Proceeds from maturities and sales of marketable securities

 

 

9

 

70

 

63

Proceeds from sales of equipment on operating leases

 

1,310

 

1,171

Cost of receivables acquired (excluding trade and wholesale)

 

(15,367)

 

(14,597)

Purchases of marketable securities

 

(3)

 

(91)

 

(107)

Purchases of property and equipment

 

(591)

 

(754)

 

(3)

 

(2)

Cost of equipment on operating leases acquired

 

(1,836)

 

(2,135)

Decrease (increase) in trade and wholesale receivables

 

423

 

(2,551)

Collateral on derivatives – net

(6)

330

59

Other

 

(55)

 

(64)

 

(46)

 

(47)

Net cash used for investing activities

 

(652)

 

(812)

 

(858)

 

(4,339)

Cash Flows from Financing Activities

Increase (decrease) in total short-term borrowings

 

(32)

 

(119)

 

202

 

(217)

Change in intercompany receivables/payables

 

(1,468)

 

(683)

 

1,468

 

683

Proceeds from long-term borrowings

 

4,592

 

868

 

3,739

 

6,572

Payments of long-term borrowings

 

(179)

 

(194)

 

(5,618)

 

(4,162)

Proceeds from issuance of common stock

 

111

 

133

Repurchases of common stock

 

(263)

 

(880)

Dividends paid

 

(718)

 

(703)

 

(260)

(377)

Other

 

(86)

 

(52)

 

(11)

 

(22)

Net cash provided by (used for) financing activities

 

1,957

 

(1,630)

 

(480)

 

2,477

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash

 

95

 

(16)

 

(15)

 

(8)

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash

 

4,255

 

(499)

 

89

 

(34)

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

$

7,451

$

2,703

$

849

$

779

*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.