SEGMENT AND GEOGRAPHIC AREA DATA FOR THE YEARS ENDED OCTOBER 31, 2012, 2011 AND 2010 (Tables)

12 Months Ended

Oct. 31, 2012

SEGMENT AND GEOGRAPHIC AREA DATA FOR THE YEARS ENDED OCTOBER 31, 2012, 2011 AND 2010

Schedule of Segment Reporting Information by Segment

Information relating to operations by operating segment in millions of dollars follows. In addition to the following unaffiliated sales and revenues by segment, intersegment sales and revenues in 2012, 2011 and 2010 were as follows: agriculture and turf net sales of $84 million, $98 million and $59 million, construction and forestry net sales of $1 million, $3 million and $7 million, and financial services revenues of $219 million, $210 million and $224 million, respectively.

OPERATING SEGMENTS		2012			2011			2010
Net sales and revenues
Unaffiliated customers:
Agriculture and turf net sales		$	27,123		$	24,094		$	19,868
Construction and forestry net sales		6,378			5,372			3,705
Total net sales		33,501			29,466			23,573
Financial services revenues		2,235			2,163			2,074
Other revenues*		421			384			358
Total		$	36,157		$	32,013		$	26,005

* Other revenues are primarily the equipment operations’ revenues for finance and interest income, and other income as disclosed in Note 31, net of certain intercompany eliminations.

Operating profit
Agriculture and turf		$	3,921		$	3,447		$	2,790
Construction and forestry		476			392			119
Financial services*		712			725			499
Total operating profit		5,109			4,564			3,408
Interest income		43			47			42
Investment income		2
Interest expense		(231		)	(191		)	(184		)
Foreign exchange losses from equipment operations’ financing activities		(11		)	(11		)	(30		)
Corporate expenses — net		(181		)	(177		)	(200		)
Income taxes		(1,659		)	(1,424		)	(1,162		)
Total		(2,037		)	(1,756		)	(1,534		)
Net income		3,072			2,808			1,874
Less: Net income attributable to noncontrolling interests		7			8			9
Net income attributable to Deere & Company		$	3,065		$	2,800		$	1,865

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

Interest income*
Agriculture and turf		$	29		$	23		$	20
Construction and forestry		2			3			3
Financial services		1,610			1,581			1,528
Corporate		43			47			42
Intercompany		(248		)	(231		)	(229		)
Total		$	1,436		$	1,423		$	1,364

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

Interest expense
Agriculture and turf		$	168		$	152		$	165
Construction and forestry		36			26			21
Financial services		596			621			670
Corporate		231			191			184
Intercompany		(248		)	(231		)	(229		)
Total		$	783		$	759		$	811

*Depreciation and amortization expense**
Agriculture and turf		$	550		$	505		$	470
Construction and forestry		93			82			79
Financial services		361			328			366
Total		$	1,004		$	915		$	915

* Includes depreciation for equipment on operating leases.

Equity in income (loss) of unconsolidated affiliates
Agriculture and turf		$	(2	)	$	5		$	13
Construction and forestry		(2		)	3			(3		)
Financial services		1			1			1
Total		$	(3	)	$	9		$	11

Identifiable operating assets
Agriculture and turf		$	10,429		$	9,178		$	7,593
Construction and forestry		3,365			2,915			2,353
Financial services		34,495			29,795			27,507
Corporate*		7,977			6,319			5,814
Total		$	56,266		$	48,207		$	43,267

* Corporate assets are primarily the equipment operations’ retirement benefits, deferred income tax assets, marketable securities and cash and cash equivalents as disclosed in Note 31, net of certain intercompany eliminations.

Capital additions
Agriculture and turf		$	1,145		$	909		$	729
Construction and forestry		228			148			73
Financial services		3			2
Total		$	1,376		$	1,059		$	802

Investments in unconsolidated affiliates
Agriculture and turf		$	32		$	35		$	66
Construction and forestry		174			159			172
Financial services		9			8			7
Total		$	215		$	202		$	245

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		2012			2011			2010
Net sales and revenues
Unaffiliated customers:
U.S. and Canada:
Equipment operations net sales (87%)*		$	20,807		$	17,357		$	14,794
Financial services revenues (79%)*		1,930			1,857			1,817
Total		22,737			19,214			16,611
Outside U.S. and Canada:
Equipment operations net sales		12,694			12,109			8,779
Financial services revenues		305			306			257
Total		12,999			12,415			9,036
Other revenues		421			384			358
Total		$	36,157		$	32,013		$	26,005

* The percentages indicate the approximate proportion of each amount that relates to the U.S. only and are based upon a three-year average for 2012, 2011 and 2010.

Operating profit
U.S. and Canada:
Equipment operations		$	3,836		$	2,898		$	2,302
Financial services		566			593			400
Total		4,402			3,491			2,702
Outside U.S. and Canada:
Equipment operations		561			941			607
Financial services		146			132			99
Total		707			1,073			706
Total		$	5,109		$	4,564		$	3,408

Property and equipment
U.S.		$	2,742		$	2,329		$	2,035
Germany		568			572			489
Other countries		1,702			1,451			1,267
Total		$	5,012		$	4,352		$	3,791

Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries.

+ References+ Details

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details