SUPPLEMENTAL CONSOLIDATING DATA

12 Months Ended

Nov. 03, 2019

32. SUPPLEMENTAL CONSOLIDATING DATA


INCOME STATEMENT
For the Years Ended November 3, 2019, October 28, 2018, and October 29, 2017
(In millions of dollars)
	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2019		2018		2017		2019		2018		2017
Net Sales and Revenues
Net sales	$	34,886	$	33,351	$	25,885
Finance and interest income		118		126		72	$	3,735	$	3,311	$	2,928
Other income		881		875		1,065		234		249		251
Total		35,885		34,352		27,022		3,969		3,560		3,179

Costs and Expenses
Cost of sales		26,793		25,573		19,868
Research and development expenses		1,783		1,658		1,373
Selling, administrative and general expenses		3,031		2,935		2,555		528		528		549
Interest expense		256		298		264		1,234		936		669
Interest compensation to Financial Services		336		300		234
Other operating expenses		299		315		295		1,506		1,298		1,240
Total		32,498		31,079		24,589		3,268		2,762		2,458

Income of Consolidated Group before Income Taxes		3,387		3,273		2,433		701		798		721
Provision (credit) for income taxes		689		1,869		726		163		(142)		245
Income of Consolidated Group		2,698		1,404		1,707		538		940		476
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Financial Services		539		942		477		1		2		1
Other		20		25		(25)
Total		559		967		452		1		2		1
Net Income		3,257		2,371		2,159		539		942		477
Less: Net income attributable to noncontrolling interests		4		3
Net Income Attributable to Deere & Company	$	3,253	$	2,368	$	2,159	$	539	$	942	$	477

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

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. The consolidated group data in the “Equipment Operations” income statement reflect the results of the agriculture and turf operations and construction and forestry operations. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

32. SUPPLEMENTAL CONSOLIDATING DATA (continued)


BALANCE SHEET
As of November 3, 2019 and October 28, 2018
(In millions of dollars)
	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2019		2018		2019		2018
ASSETS
Cash and cash equivalents	$	3,175	$	3,195	$	682	$	709
Marketable securities		1		8		580		482
Receivables from unconsolidated subsidiaries and affiliates		2,017		1,700
Trade accounts and notes receivable - net		1,482		1,374		5,153		4,906
Financing receivables - net		65		93		29,130		26,961
Financing receivables securitized - net		44		76		4,339		3,946
Other receivables		1,376		1,010		116		776
Equipment on operating leases - net						7,567		7,165
Inventories		5,975		6,149
Property and equipment - net		5,929		5,821		44		47
Investments in unconsolidated subsidiaries and affiliates		5,326		5,231		16		15
Goodwill		2,917		3,101
Other intangible assets - net		1,380		1,562
Retirement benefits		836		1,241		58		57
Deferred income taxes		1,896		1,503		57		69
Other assets		1,158		1,133		741		587
Total Assets	$	33,577	$	33,197	$	48,483	$	45,720

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES
Short-term borrowings	$	987	$	1,434	$	9,797	$	9,628
Short-term securitization borrowings		44		75		4,277		3,882
Payables to unconsolidated subsidiaries and affiliates		142		129		1,970		1,678
Accounts payable and accrued expenses		9,232		9,383		1,836		2,056
Deferred income taxes		414		497		568		823
Long-term borrowings		5,415		4,714		24,814		22,523
Retirement benefits and other liabilities		5,912		5,660		94		91
Total liabilities		22,146		21,892		43,356		40,681

Commitments and contingencies (Note 23)
Redeemable noncontrolling interest		14		14

STOCKHOLDERS’ EQUITY
Common stock, $1 par value (authorized – 1,200,000,000 shares; issued – 536,431,204 shares in 2019 and 2018), at paid-in amount		4,642		4,474		2,107		2,100
Common stock in treasury, 223,290,789 shares in 2019 and 217,975,806 shares in 2018, at cost		(17,474)		(16,312)
Retained earnings		29,852		27,553		3,378		3,257
Accumulated other comprehensive income (loss)		(5,607)		(4,427)		(358)		(318)
Total Deere & Company stockholders’ equity		11,413		11,288		5,127		5,039
Noncontrolling interests		4		3
Total stockholders’ equity		11,417		11,291		5,127		5,039
Total Liabilities and Stockholders’ Equity	$	33,577	$	33,197	$	48,483	$	45,720

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

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

32. SUPPLEMENTAL CONSOLIDATING DATA (continued)


STATEMENT OF CASH FLOWS
For the Years Ended November 3, 2019, October 28, 2018, and October 29, 2017
(In millions of dollars)
	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2019		2018		2017		2019		2018		2017
Cash Flows from Operating Activities
Net income	$	3,257	$	2,371	$	2,159	$	539	$	942	$	477
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		14		39		10		29		51		88
Provision for depreciation and amortization		1,015		974		839		1,135		1,077		984
Impairment charges						40		77
(Gain) loss on sale of businesses and unconsolidated affiliates		5		(25)		(375)
Undistributed earnings of unconsolidated subsidiaries and affiliates		(102)		(503)		(125)		(2)		(2)		(1)
Provision (credit) for deferred income taxes		(222)		1,504		(7)		(243)		(24)		107
Changes in assets and liabilities:
Trade receivables and Equipment Operations' financing receivables		(142)		(239)		(244)
Inventories		(102)		(917)		(504)
Accounts payable and accrued expenses		13		793		946		163		120		94
Accrued income taxes payable/receivable		(355)		103		(123)		528		(569)		39
Retirement benefits		(235)		(985)		(39)		2		(41)		7
Other		54		166		(143)		190		88		82
Net cash provided by operating activities		3,200		3,281		2,434		2,418		1,642		1,877

Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)								18,190		17,032		15,963
Proceeds from maturities and sales of marketable securities		12		11		298		77		65		106
Proceeds from sales of equipment on operating leases								1,648		1,483		1,441
Proceeds from sales of businesses and unconsolidated affiliates, net of cash sold		93		156		114
Cost of receivables acquired (excluding trade and wholesale)								(20,321)		(18,778)		(16,800)
Acquisitions of businesses, net of cash acquired				(5,245)		(284)
Purchases of marketable securities		(3)						(137)		(133)		(118)
Purchases of property and equipment		(1,118)		(893)		(592)		(2)		(3)		(3)
Cost of equipment on operating leases acquired								(3,246)		(3,209)		(3,080)
Increase in investment in Financial Services		(8)				(20)
Increase in trade and wholesale receivables								(935)		(1,222)		(380)
Other		35		17		(33)		5		(95)		(44)
Net cash used for investing activities		(989)		(5,954)		(517)		(4,721)		(4,860)		(2,915)

Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		(149)		16		64		(768)		457		1,246
Change in intercompany receivables/payables		(305)		(748)		2,142		305		748		(2,142)
Proceeds from long-term borrowings		1,348		149		1,107		8,638		8,139		7,595
Payments of long-term borrowings		(972)		(163)		(66)		(5,454)		(6,082)		(5,331)
Proceeds from issuance of common stock		178		217		529
Repurchases of common stock		(1,253)		(958)		(6)
Capital investment from Equipment Operations								8				20
Dividends paid		(943)		(806)		(764)		(427)		(464)		(365)
Other		(79)		(60)		(55)		(38)		(32)		(33)
Net cash provided by (used for) financing activities		(2,175)		(2,353)		2,951		2,264		2,766		990

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		(42)		54		155		(14)		(28)		2
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		(6)		(4,972)		5,023		(53)		(480)		(46)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year		3,202		8,174		3,151		813		1,293		1,339
Cash, Cash Equivalents, and Restricted Cash at End of Year	$	3,196	$	3,202	$	8,174	$	760	$	813	$	1,293

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

The supplemental consolidating data is presented for informational purposes. The “Equipment Operations” reflect the basis of consolidation described in Note 1 to the consolidated financial statements. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.