SEGMENT AND GEOGRAPHIC AREA DATA (Tables)

12 Months Ended

Nov. 01, 2020

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 1, 2020, November 3, 2019, and October 28, 2018. In addition to the following unaffiliated sales and revenues by segment, intersegment sales and revenues in 2020, 2019, and 2018 were as follows: agriculture and turf net sales of $24 million, $34 million, and $47 million, construction and forestry net sales of $1 million, $1 million, and none, and financial services revenues of $278 million, $348 million, and $308 million, respectively.


OPERATING SEGMENTS		2020			2019			2018
Net sales and revenues
Unaffiliated customers:
Agriculture and turf net sales		$	22,325		$	23,666		$	23,191
Construction and forestry net sales			8,947			11,220			10,160
Total net sales			31,272			34,886			33,351
Financial services revenues			3,589			3,621			3,252
Other revenues*			679			751			755
Total		$	35,540		$	39,258		$	37,358

* Other revenues are primarily the equipment operations’ revenues for finance and interest income, and other income.

(continued)


OPERATING SEGMENTS		2020			2019			2018
Operating profit
Agriculture and turf		$	2,969		$	2,506		$	2,816
Construction and forestry			590			1,215			868
Financial services*			746			694			792
Total operating profit*			4,305			4,415			4,476
Interest income			62			85			80
Interest expense			(329)			(256)			(298)
Foreign exchange gains (losses) from equipment operations’ financing activities			17			(22)			36
Pension and OPEB benefit (cost), excluding service cost component			31			67			(15)
Corporate expenses – net			(251)			(180)			(181)
Income taxes			(1,082)			(852)			(1,727)
Total			(1,552)			(1,158)			(2,105)
Net income			2,753			3,257			2,371
Less: Net income attributable to noncontrolling interests			2			4			3
Net income attributable to Deere & Company		$	2,751		$	3,253		$	2,368

* 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		$	38		$	22		$	14
Construction and forestry			12			11			33
Financial services			2,122			2,316			1,997
Corporate			62			85			80
Intercompany			(272)			(360)			(330)
Total		$	1,962		$	2,074		$	1,794

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


Interest expense
Agriculture and turf		$	187		$	245		$	229
Construction and forestry			61			91			71
Financial services			942			1,234			936
Corporate			329			256			298
Intercompany			(272)			(360)			(330)
Total		$	1,247		$	1,466		$	1,204

*Depreciation and amortization expense**
Agriculture and turf		$	727		$	723		$	723
Construction and forestry			289			292			251
Financial services			1,227			1,135			1,077
Intercompany			(125)			(131)			(124)
Total		$	2,118		$	2,019		$	1,927

* Includes depreciation for equipment on operating leases.

(continued)


OPERATING SEGMENTS		2020			2019			2018
Equity in income (loss) of unconsolidated affiliates
Agriculture and turf		$	2		$	6		$	6
Construction and forestry			(52)			14			19
Financial services			2			1			2
Total		$	(48)		$	21		$	27


Identifiable operating assets
Agriculture and turf		$	9,575		$	10,379		$	10,161
Construction and forestry			8,802			9,387			9,855
Financial services			48,719			48,483			45,720
Corporate*			7,995			4,762			4,372
Total		$	75,091		$	73,011		$	70,108

* Corporate assets are primarily the equipment operations’ retirement benefits, deferred income tax assets, marketable securities, and cash and cash equivalents.


Capital additions
Agriculture and turf		$	654		$	859		$	675
Construction and forestry			157			245			308
Financial services			4			3			2
Total		$	815		$	1,107		$	985


Investments in unconsolidated affiliates
Agriculture and turf		$	30		$	28		$	26
Construction and forestry			144			171			166
Financial services			19			16			15
Total		$	193		$	215		$	207

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		2020			2019			2018
Net sales and revenues
Unaffiliated customers:
U.S. and Canada:
Equipment operations net sales and revenues*		$	18,288		$	20,647		$	18,847
Financial services revenues*			3,098			3,099			2,785
Total			21,386			23,746			21,632
Outside U.S. and Canada:
Equipment operations net sales and revenues			13,663			14,990			14,504
Financial services revenues			491			522			467
Total			14,154			15,512			14,971
Other revenues									755
Total		$	35,540		$	39,258		$	37,358

* The 2018 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’ percentage for 2018 was 88%. The financial services’ U.S. only percentages was 79% for 2018. See Note 6 for additional 2020 and 2019 geographic net sales and revenues information.

(continued)


GEOGRAPHIC AREAS		2020			2019			2018
Operating profit
U.S. and Canada:
Equipment operations		$	2,194		$	2,335		$	2,356
Financial services			581			506			604
Total			2,775			2,841			2,960
Outside U.S. and Canada:
Equipment operations			1,365			1,386			1,328
Financial services			165			188			188
Total			1,530			1,574			1,516
Total		$	4,305		$	4,415		$	4,476


Property and equipment
U.S.		$	3,150		$	3,169		$	3,031
Germany			1,113			1,137			1,164
Other countries			1,554			1,667			1,673
Total		$	5,817		$	5,973		$	5,868