
(20) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended January 27, 2019 and January 28, 2018
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2019		2018		2019		2018
Net Sales and Revenues
Net sales	$	6,940.9	$	5,973.9
Finance and interest income		23.4		11.5	$	866.2	$	777.0
Other income		214.9		196.5		60.4		62.7
Total		7,179.2		6,181.9		926.6		839.7

Costs and Expenses
Cost of sales		5,432.1		4,705.0
Research and development expenses		406.8		356.8
Selling, administrative and general expenses		644.5		590.5		121.3		116.2
Interest expense		71.5		96.0		287.1		194.1
Interest compensation to Financial Services		69.0		61.7
Other operating expenses		71.4		72.2		324.9		311.2
Total		6,695.3		5,882.2		733.3		621.5

Income of Consolidated Group before Income Taxes		483.9		299.7		193.3		218.2
Provision (credit) for income taxes		144.1		1,263.8		40.0		(206.3)
Income (Loss) of Consolidated Group		339.8		(964.1)		153.3		424.5

Equity in Income of Unconsolidated Subsidiaries and Affiliates
Financial Services		153.9		425.3		.6		.8
Other		5.9		4.1
Total		159.8		429.4		.6		.8
Net Income (Loss)		499.6		(534.7)		153.9		425.3
Less: Net income attributable to noncontrolling interests		1.1		.4
Net Income (Loss) Attributable to Deere & Company	$	498.5	$	(535.1)	$	153.9	$	425.3

* 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
	January 27		October 28		January 28		January 27		October 28		January 28
	2019		2018		2018		2019		2018		2018
Assets
Cash and cash equivalents	$	2,670.4	$	3,194.8	$	2,617.1	$	955.3	$	709.2	$	1,298.0
Marketable securities		8.7		8.2		17.6		514.8		481.9		444.7
Receivables from unconsolidated subsidiaries and affiliates		273.7		1,700.4		667.7
Trade accounts and notes receivable – net		1,177.4		1,373.7		1,051.3		5,746.4		4,906.4		4,907.1
Financing receivables – net		101.5		93.1		51.6		25,048.2		26,961.0		23,803.5
Financing receivables securitized – net		67.6		76.1		124.9		4,495.8		3,945.3		4,349.1
Other receivables		1,485.0		1,009.7		885.7		183.7		775.7		156.4
Equipment on operating leases – net								6,903.6		7,165.4		6,619.8
Inventories		7,401.9		6,148.9		6,614.2
Property and equipment – net		5,739.4		5,820.6		5,733.0		45.8		46.9		48.2
Investments in unconsolidated subsidiaries and affiliates		5,175.1		5,231.2		5,285.8		15.7		15.2		15.5
Goodwill		3,047.6		3,100.7		3,111.8
Other intangible assets – net		1,507.5		1,562.4		1,659.5
Retirement benefits		1,291.0		1,241.5		580.2		57.2		56.8		16.2
Deferred income taxes		1,507.1		1,502.6		2,248.7		70.3		69.4		80.1
Other assets		1,240.5		1,132.8		1,118.2		593.0		587.1		563.1
Total Assets	$	32,694.4	$	33,196.7	$	31,767.3	$	44,629.8	$	45,720.3	$	42,301.7

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	1,494.0	$	1,434.0	$	858.2	$	9,243.5	$	9,627.4	$	8,885.3
Short-term securitization borrowings		66.9		75.6		125.8		4,397.1		3,881.7		4,302.5
Payables to unconsolidated subsidiaries and affiliates		227.8		128.9		118.0		154.8		1,678.7		634.0
Accounts payable and accrued expenses		8,710.9		9,382.5		7,894.3		1,820.6		2,055.7		1,876.9
Deferred income taxes		470.2		496.8		491.2		798.5		823.0		551.6
Long-term borrowings		4,712.4		4,713.9		5,572.5		23,142.8		22,523.5		20,849.3
Retirement benefits and other liabilities		5,665.5		5,659.8		7,428.4		93.4		91.2		94.8
Total liabilities		21,347.7		21,891.5		22,488.4		39,650.7		40,681.2		37,194.4

Commitments and contingencies (Note 15)
Redeemable noncontrolling interest		14.0		14.0		14.0

Stockholders’ Equity
Common stock, $1 par value (issued shares at January 27, 2019 – 536,431,204)		4,511.5		4,474.2		4,374.0		2,099.5		2,099.5		2,099.1
Common stock in treasury		(16,422.1)		(16,311.8)		(15,404.3)
Retained earnings		27,816.3		27,553.0		24,571.9		3,219.0		3,257.2		3,169.0
Accumulated other comprehensive income (loss)		(4,577.9)		(4,427.6)		(4,289.0)		(339.4)		(317.6)		(160.8)
Total Deere & Company stockholders' equity		11,327.8		11,287.8		9,252.6		4,979.1		5,039.1		5,107.3
Noncontrolling interests		4.9		3.4		12.3
Total stockholders’ equity		11,332.7		11,291.2		9,264.9		4,979.1		5,039.1		5,107.3
Total Liabilities and Stockholders’ Equity	$	32,694.4	$	33,196.7	$	31,767.3	$	44,629.8	$	45,720.3	$	42,301.7

* 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 Three Months Ended January 27, 2019 and January 28, 2018
(In millions of dollars) Unaudited	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2019		2018		2019		2018
Cash Flows from Operating Activities
Net income (loss)	$	499.6	$	(534.7)	$	153.9	$	425.3
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Provision (credit) for credit losses		(.7)		.8		3.2		1.7
Provision for depreciation and amortization		259.8		232.4		276.3		261.6
Gain on sales of businesses				(13.2)
Undistributed earnings of unconsolidated subsidiaries and affiliates		39.4		(392.9)		(.6)		(.8)
Provision (credit) for deferred income taxes		(30.7)		786.4		(25.0)		(306.7)
Changes in assets and liabilities:
Trade receivables and Equipment Operations' financing receivables		185.5		295.1
Inventories		(1,289.7)		(1,099.7)
Accounts payable and accrued expenses		(535.0)		(735.7)		(12.0)		8.9
Accrued income taxes payable/receivable		(428.6)		453.1		526.5		(28.0)
Retirement benefits		(6.4)		63.2		2.1		2.4
Other		(127.0)		(36.6)		47.3		65.9
Net cash provided by (used for) operating activities		(1,433.8)		(981.8)		971.7		430.3

Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)						5,885.4		5,601.4
Proceeds from maturities and sales of marketable securities		3.1		2.7		4.8		10.4
Proceeds from sales of equipment on operating leases						370.8		339.6
Proceeds from sales of businesses, net of cash sold				49.7
Cost of receivables acquired (excluding trade and wholesale)						(4,447.7)		(4,368.5)
Acquisitions of businesses, net of cash acquired				(5,129.7)
Purchases of marketable securities		(2.1)				(29.4)		(24.3)
Purchases of property and equipment		(297.2)		(176.0)		(.2)		(.3)
Cost of equipment on operating leases acquired						(505.0)		(553.8)
Increase in trade and wholesale receivables						(1,021.1)		(601.9)
Other		(6.6)		57.6		25.3		(9.5)
Net cash provided by (used for) investing activities		(302.8)		(5,195.7)		282.9		393.1

Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		88.4		132.9		387.9		(668.4)
Change in intercompany receivables/payables		1,526.1		388.1		(1,526.1)		(388.1)
Proceeds from long-term borrowings		91.5		77.8		2,119.6		2,184.3
Payments of long-term borrowings		(142.1)		(68.0)		(1,799.2)		(1,803.2)
Proceeds from issuance of common stock		51.1		143.0
Repurchases of common stock		(143.9)		(9.7)
Dividends paid		(220.3)		(193.0)		(200.0)		(38.2)
Other		(23.4)		(17.5)		(6.9)		(9.2)
Net cash provided by (used for) financing activities		1,227.4		453.6		(1,024.7)		(722.8)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		(11.8)		173.7		(1.1)		24.9

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		(521.0)		(5,550.2)		228.8		125.5
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		3,201.8		8,174.4		813.5		1,292.4
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	2,680.8	$	2,624.2	$	1,042.3	$	1,417.9

* Deere & Company with Financial Services on the equity basis.