SEGMENT AND GEOGRAPHIC AREA DATA (Tables)

12 Months Ended

Nov. 03, 2019

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 November 3, 2019, October 28, 2018, and October 29, 2017. In addition to the following unaffiliated sales and revenues by segment, intersegment sales and revenues in 2019, 2018, and 2017 were as follows: agriculture and turf net sales of $34 million, $47 million, and $39 million, construction and forestry net sales of $1 million, none, and $1 million, and financial services revenues of $348 million, $308 million, and $244 million, respectively.


OPERATING SEGMENTS		2019			2018			2017
Net sales and revenues
Unaffiliated customers:
Agriculture and turf net sales		$	23,666		$	23,191		$	20,167
Construction and forestry net sales			11,220			10,160			5,718
Total net sales			34,886			33,351			25,885
Financial services revenues			3,621			3,252			2,935
Other revenues*			751			755			918
Total		$	39,258		$	37,358		$	29,738

* Other revenues are primarily the equipment operations’ revenues for finance and interest income, and other income as disclosed in Note 32, net of certain intercompany eliminations.


Operating profit
Agriculture and turf		$	2,506		$	2,816		$	2,513
Construction and forestry			1,215			868			346
Financial services*			694			792			715
Total operating profit*			4,415			4,476			3,574
Interest income			85			80			55
Interest expense			(256)			(298)			(264)
Foreign exchange gains (losses) from equipment operations’ financing activities			(22)			36			(12)
Pension and OPEB benefit (cost), excluding service cost component			67			(15)			(31)
Corporate expenses – net			(180)			(181)			(192)
Income taxes			(852)			(1,727)			(971)
Total			(1,158)			(2,105)			(1,415)
Net income			3,257			2,371			2,159
Less: Net income attributable to noncontrolling interests			4			3
Net income attributable to Deere & Company		$	3,253		$	2,368		$	2,159

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

(continued)


OPERATING SEGMENTS		2019			2018			2017
Interest income*
Agriculture and turf		$	22		$	14		$	16
Construction and forestry			11			33			1
Financial services			2,316			1,997			1,771
Corporate			85			80			55
Intercompany			(360)			(330)			(268)
Total		$	2,074		$	1,794		$	1,575

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


Interest expense
Agriculture and turf		$	245		$	229		$	182
Construction and forestry			91			71			52
Financial services			1,234			936			669
Corporate			256			298			264
Intercompany			(360)			(330)			(268)
Total		$	1,466		$	1,204		$	899

*Depreciation and amortization expense**
Agriculture and turf		$	723		$	723		$	695
Construction and forestry			292			251			145
Financial services			1,004			953			876
Total		$	2,019		$	1,927		$	1,716

* Includes depreciation for equipment on operating leases.


Equity in income (loss) of unconsolidated affiliates
Agriculture and turf		$	6		$	6		$	2
Construction and forestry			14			19			(27)
Financial services			1			2			1
Total		$	21		$	27		$	(24)


Identifiable operating assets
Agriculture and turf		$	10,379		$	10,161		$	9,359
Construction and forestry			9,387			9,855			3,212
Financial services			48,483			45,720			42,596
Corporate*			4,762			4,372			10,619
Total		$	73,011		$	70,108		$	65,786

* Corporate assets are primarily the equipment operations’ retirement benefits, deferred income tax assets, marketable securities, and cash and cash equivalents as disclosed in Note 32, net of certain intercompany eliminations.


Capital additions
Agriculture and turf		$	859		$	675		$	485
Construction and forestry			245			308			114
Financial services			3			2			3
Total		$	1,107		$	985		$	602


Investments in unconsolidated affiliates
Agriculture and turf		$	28		$	26		$	25
Construction and forestry			171			166			143
Financial services			16			15			14
Total		$	215		$	207		$	182

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		2019			2018			2017
Net sales and revenues
Unaffiliated customers:
U.S. and Canada:
Equipment operations net sales and revenues*		$	20,647		$	18,847		$	15,031
Financial services revenues*			3,099			2,785			2,526
Total			23,746			21,632			17,557
Outside U.S. and Canada:
Equipment operations net sales and revenues			14,990			14,504			10,854
Financial services revenues			522			467			409
Total			15,512			14,971			11,263
Other revenues						755			918
Total		$	39,258		$	37,358		$	29,738

* The 2018 and 2017 equipment operations’ amounts are only for net sales and approximate the proportion of each amount that relates to the U.S. only based on a three-year average. The equipment operations’ percentages for 2018 and 2017 were 88%. The financial services’ U.S. only percentages were 79% for both fiscal years. See Note 6 for additional 2019 geographic net sales and revenues information.


Operating profit
U.S. and Canada:
Equipment operations		$	2,335		$	2,356		$	1,754
Financial services			506			604			515
Total			2,841			2,960			2,269
Outside U.S. and Canada:
Equipment operations			1,386			1,328			1,105
Financial services			188			188			200
Total			1,574			1,516			1,305
Total		$	4,415		$	4,476		$	3,574


Property and equipment
U.S.		$	3,169		$	3,031		$	2,976
Germany			1,137			1,164			598
Other countries			1,667			1,673			1,494
Total		$	5,973		$	5,868		$	5,068