SEGMENT AND GEOGRAPHIC AREA DATA (Tables)

12 Months Ended

Oct. 31, 2021

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 October 31, 2021, November 1, 2020 and November 3, 2019. In addition to the following unaffiliated sales and revenues by segment, intersegment sales and revenues in 2021, 2020, and 2019 were as follows: production and precision agriculture net sales of $27 million, $22 million, and $31 million; small agriculture and turf net sales of $11 million, $2 million, and $3 million; construction and forestry had no intersegment sales in 2021, $1 million in 2020, and $1 million in 2019; and financial services revenues of $246 million, $278 million, and $348 million, respectively.

OPERATING SEGMENTS	2021		2020		2019
Net sales and revenues
Unaffiliated customers:
Production & precision ag net sales	$	16,509	$	12,962	$	13,364
Small ag & turf net sales		11,860		9,363		10,302
Construction & forestry net sales		11,368		8,947		11,220
Financial services revenues		3,548		3,589		3,621
Other revenues*		739		679		751
Total	$	44,024	$	35,540	$	39,258

*    Other revenues are primarily the equipment operations’ revenues for finance and interest income, and other income.

OPERATING SEGMENTS	2021		2020		2019
Operating profit
Production & precision ag	$	3,334	$	1,969	$	1,729
Small ag & turf		2,045		1,000		777
Construction & forestry		1,489		590		1,215
Financial services*		1,144		746		694
Total operating profit*		8,012		4,305		4,415
Interest income		82		62		85
Interest expense		(368)		(329)		(256)
Foreign exchange gains (losses) from equipment operations’ financing activities		(45)		17		(22)
Pension and OPEB benefit (cost), excluding service cost component		183		31		67
Corporate expenses – net		(241)		(251)		(180)
Income taxes		(1,658)		(1,082)		(852)
Total		(2,047)		(1,552)		(1,158)
Net income		5,965		2,753		3,257
Less: Net income attributable to noncontrolling interests		2		2		4
Net income attributable to Deere & Company	$	5,963	$	2,751	$	3,253

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

Interest income*
Production & precision ag	$	21	$	22	$	16
Small ag & turf		21		16		6
Construction & forestry		10		12		11
Financial services		1,999		2,122		2,316
Corporate		82		62		85
Intercompany		(279)		(272)		(360)
Total	$	1,854	$	1,962	$	2,074

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

Interest expense
Production & precision ag	$	84	$	76	$	87
Small ag & turf		87		111		158
Construction & forestry		46		61		91
Financial services		687		942		1,234
Corporate		368		329		256
Intercompany		(279)		(272)		(360)
Total	$	993	$	1,247	$	1,466
Depreciation* and amortization expense
Production & precision ag	$	495	$	480	$	475
Small ag & turf		245		247		248
Construction & forestry		303		289		292
Financial services		1,140		1,227		1,135
Intercompany		(133)		(125)		(131)
Total	$	2,050	$	2,118	$	2,019

*    Includes depreciation for equipment on operating leases.

(continued)

OPERATING SEGMENTS	2021		2020		2019
Equity in income (loss) of unconsolidated affiliates
Small ag & turf	$	2	$	2	$	6
Construction & forestry		16		(52)		14
Financial services		3		2		1
Total	$	21	$	(48)	$	21
Identifiable operating assets
Production & precision ag	$	7,021	$	5,708	$	6,149
Small ag & turf		3,959		3,266		3,656
Construction & forestry		6,457		6,322		7,044
Financial services		51,624		48,719		48,483
Corporate*		15,053		11,076		7,679
Total	$	84,114	$	75,091	$	73,011

*    Corporate assets are primarily the equipment operations’ retirement benefits, deferred income tax assets, goodwill, marketable securities, and cash and cash equivalents.

Capital additions
Production & precision ag	$	458	$	431	$	595
Small ag & turf		253		223		264
Construction & forestry		183		157		245
Financial services		3		4		3
Total	$	897	$	815	$	1,107
Investments in unconsolidated affiliates
Production & precision ag			$	1	$	1
Small ag & turf	$	31		29		27
Construction & forestry		122		144		171
Financial services		22		19		16
Total	$	175	$	193	$	215

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) for net sales and revenues and operating profit shown below in millions of dollars. No individual foreign country’s net sales and revenues were material for disclosure purposes. For property and equipment, a material amount does reside in the country of Germany, separately disclosed below in millions of dollars.

GEOGRAPHIC AREAS	2021		2020		2019
Net sales and revenues
Unaffiliated customers:
U.S. and Canada	$	25,829	$	21,386	$	23,746
Outside U.S. and Canada		18,195		14,154		15,512
Total	$	44,024	$	35,540	$	39,258

Operating profit
U.S. and Canada	$	4,774	$	2,775	$	2,841
Outside U.S. and Canada		3,238		1,530		1,574
Total	$	8,012	$	4,305	$	4,415

Property and equipment
U.S. and Canada	$	3,164	$	3,178	$	3,197
Germany		1,096		1,113		1,137
Other countries		1,560		1,526		1,639
Total	$	5,820	$	5,817	$	5,973