Asset and Liability Fair Values at the Acquisition Date

On September 26, 2018, the company acquired PLA, a privately-held manufacturer of sprayers, planters, and specialty products for agriculture. PLA is based in Argentina, with manufacturing facilities in Las Rosas, Argentina and Canoas, Brazil. The total cash purchase price before the final adjustment, net of cash acquired of $1 million, was $69 million with $4 million retained by the company as escrow to secure indemnity obligations. In addition to the cash purchase price, the company assumed $30 million of liabilities. The asset and liability fair values at the acquisition date in millions of dollars follow:


	September 2018
Trade accounts and notes receivable	$	3
Other receivables		14
Inventories		15
Property and equipment		6
Goodwill		38
Other intangible assets		22
Other assets		1
Total assets	$	99

Short-term borrowings	$	8
Accounts payable and accrued expenses		17
Deferred income taxes		5
Total liabilities	$	30

Asset and Liability Fair Values at the Acquisition Date

In March 2018, the company acquired King Agro, a privately held manufacturer of carbon fiber technology products with headquarters in Valencia, Spain and a production facility in Campana, Argentina. The total cash purchase price, net of cash acquired of $3 million, was $40 million, excluding a loan to King Agro of $4 million that was forgiven on the acquisition date. In addition to the cash purchase price, the company assumed $11 million of liabilities. The asset and liability fair values at the acquisition date in millions of dollars follow:


	March 2018
Trade accounts and notes receivable	$	2
Other receivables		2
Inventories		5
Property and equipment		5
Goodwill		28
Other intangible assets		13
Total assets	$	55

Short-term borrowings	$	2
Accounts payable and accrued expenses		4
Deferred income taxes		4
Long-term borrowings		1
Total liabilities	$	11

Asset and Liability Fair Values at the Acquisition Date

The total cash purchase price, net of cash acquired of $191 million, was $5,136 million, a portion of which is held in escrow to secure certain indemnity obligations of Wirtgen. In addition to the cash purchase price, the company assumed $1,641 million in liabilities, which represented substantially all of Wirtgen’s liabilities. The company financed the acquisition and associated transaction expenses from a combination of cash and new debt financing, which consisted of medium-term notes, including €850 million issued in September 2017. The asset and liability fair values at the acquisition date in millions of dollars follow:


	December 2017
Receivables from unconsolidated affiliates	$	5
Trade accounts and notes receivable		449
Financing receivables		43
Financing receivables securitized		125
Other receivables		98
Inventories		1,536
Property and equipment		752
Investments in unconsolidated affiliates		19
Goodwill		2,068
Other intangible assets		1,442
Deferred income taxes		26
Other assets		215
Total assets	$	6,778

Short-term borrowings	$	285
Short-term securitization borrowings		127
Accounts payable and accrued expenses		719
Deferred income taxes		430
Long-term borrowings		50
Retirement benefits and other liabilities		30
Total liabilities	$	1,641
Noncontrolling interests	$	1

Unaudited Pro Forma Consolidated Net Sales and Revenues and Net Income

The unaudited pro forma consolidated net sales and revenues and net income were prepared as if the acquisition closed at the beginning of fiscal year 2017 and follow in millions of dollars:


	2018		2017
Net sales and revenues	$	37,822	$	32,946
Net income attributable to Deere & Company	$	2,637	$	2,272

Asset and Liability Fair Values at the Acquisition Date

In September 2017, the company acquired Blue River Technology (Blue River), which is based in Sunnyvale, California for an acquisition cost of approximately $284 million, net of cash acquired of $4 million and $21 million funded to escrow for post-acquisition expenses. Blue River has designed and integrated computer vision and machine learning technology to optimize the use of farm inputs. Machine learning technologies could eventually be applied to a wide range of the company’s products. The asset and liability fair values at the acquisition date in millions of dollars follow:


	September 2017
Trade accounts and notes receivable	$	1
Property and equipment		2
Goodwill		193
Other intangible assets		125
Total assets	$	321

Accounts payable and accrued expenses	$	1
Deferred income taxes		36
Total liabilities	$	37