- Weakness in global markets for farm and construction equipment
leads to decline in sales and earnings for quarter and full
year.
- All businesses remain solidly profitable, helped by sound
execution and disciplined cost management.
- 2016 forecast calls for sales decline of about 7% and earnings
of approximately $1.4 billion.
MOLINE, Ill., Nov. 25, 2015 /PRNewswire/ -- Net income
attributable to Deere & Company (NYSE: DE) was $351.2 million, or $1.08 per share, for the fourth quarter ended
October 31, compared with
$649.2 million, or $1.83 per share, for the same period of
2014. For fiscal 2015, net income attributable to Deere &
Company was $1.940 billion, or
$5.77 per share, compared with
$3.162 billion, or $8.63 per share, last year.
Worldwide net sales and revenues decreased 25 percent, to
$6.715 billion, for the fourth
quarter and were down 20 percent, to $28.863
billion, for the full year. Net sales of the equipment
operations were $5.932 billion for
the quarter and $25.775 billion for
the year, compared with $8.043
billion and $32.961 billion
for the same periods in 2014.
"John Deere has completed a successful year in the face of
further weakness in the global agricultural sector and a slowdown
in construction-equipment markets," said Samuel R. Allen, chairman and chief executive
officer. "Sales and earnings for the year were the sixth-highest in
company history, a notable achievement in light of the challenging
market conditions we experienced. The company's performance
benefited from the adept execution of our business plans and
disciplined cost management. As a result, Deere remains
well-positioned to serve its customers while continuing to make
investments in quality and innovation that are designed to drive
growth in the future."
Summary of Operations
Net sales of the worldwide equipment operations declined 26
percent for the quarter and 22 percent for the full year compared
with the same periods in 2014. Sales included price realization of
1 percent for the quarter and full year. Additionally, sales
included an unfavorable currency-translation effect of 5 percent
for the quarter and full year. Equipment net sales in the United States and Canada decreased 23 percent for the quarter
and 18 percent for the full year. Outside the U.S. and Canada, net sales fell 31 percent for the
quarter and were down 28 percent for the year, with unfavorable
currency-translation effects of 11 percent and 10 percent for these
periods.
Deere's equipment operations reported operating profit of
$335 million for the quarter and
$2.177 billion for the full year,
compared with $910 million and
$4.297 billion in 2014. For both
periods, the decline was due primarily to lower shipment volumes,
the impact of a less favorable product mix, and the unfavorable
effects of foreign-currency exchange. In the quarter, these factors
were partially offset by lower production costs, lower selling
administrative and general expenses, and price realization. The
full-year reduction in operating profit was partially offset by
price realization, lower selling, administrative and general
expenses and lower production costs.
Net income of the company's equipment operations was
$200 million for the fourth quarter
and $1.308 billion for the year,
compared with $488 million and
$2.548 billion in 2014. In addition
to the operating factors mentioned above, a lower effective tax
rate benefited both quarterly and annual results. The lower rate
resulted mainly from a reduction of a valuation allowance recorded
during the quarter due to a change in the expected realizable value
of a deferred tax asset.
Financial services reported net income attributable to Deere
& Company of $153.0 million for
the quarter and $632.9 million for
the year compared with $172.2 million
and $624.5 million in 2014. Lower
results for the quarter were primarily due to the unfavorable
effects of foreign-currency exchange translation, and higher losses
on residual values primarily for construction-equipment operating
leases, partially offset by lower selling, administrative and
general expenses. Results for the year improved due to growth in
the average credit portfolio, the previously announced crop
insurance sale and higher crop insurance margins experienced prior
to divestiture, and lower selling, administrative and general
expenses. These factors were partially offset by the unfavorable
effects of foreign-currency exchange translation, less-favorable
financing spreads, and higher losses on residual values primarily
for construction-equipment operating leases. Full-year results in
2014 also benefited from a more favorable effective tax
rate.
Company Outlook & Summary
Company equipment sales are projected to decrease about 7
percent for fiscal 2016 and to be down about 11 percent for the
first quarter compared with year-ago periods. Included in the
forecast is a negative foreign-currency translation effect of about
2 percent for the full year and 4 percent for the first
quarter. For fiscal 2016, net income attributable to Deere
& Company is anticipated to be about $1.4 billion.
"Although our forecast calls for lower results in the year
ahead, the outlook represents a level of performance that is
considerably better than we have experienced in previous
downturns," Allen said. "This shows the continuing success of our
efforts to establish a more durable business model and a wider
range of revenue sources."
Longer term, Allen reaffirmed his belief the future holds great
promise for the company. "John Deere remains in a strong
position to carry out its growth plans and attract new customers
throughout the world," he said. "Thanks to the commitment of our
employees, dealers and suppliers, our plans for helping meet the
world's increasing need for food, shelter and infrastructure are
continuing to move ahead. These trends in our view remain quite
compelling and have ample staying power. All in all, we have
confidence in the company's present direction and firmly believe it
is on track to deliver significant value to our customers and
investors in the years to come."
Equipment Division Performance
Agriculture & Turf. Sales fell 25 percent for the
quarter and full year due largely to lower shipment volumes and the
unfavorable effects of currency translation. These factors were
partially offset by price realization.
Operating profit was $271 million
for the quarter and $1.649 billion
for the year, compared with $682
million and $3.649 billion in
2014. Lower results for both periods were driven primarily by the
impact of lower shipment volumes, a less favorable product mix, and
the unfavorable effects of foreign-currency exchange, partially
offset by price realization, lower selling, administrative and
general expenses, and lower production costs.
Construction & Forestry. Construction and forestry
sales decreased 32 percent for the quarter and 9 percent for the
year. Sales for both periods were lower mainly as a result of lower
shipment volumes and the unfavorable effects of currency
translation. For the full year, these declines were partially
offset by price realization.
Operating profit was $64 million
for the quarter and $528 million for
the year, compared with $228 million
and $648 million in 2014. Operating
profit decreased for the quarter mainly due to lower shipment
volumes and the unfavorable effects of foreign-currency exchange,
partially offset by lower selling, administrative and general
expenses. Full-year results declined due to lower shipment volumes,
the unfavorable effects of foreign exchange, and higher production
costs, partially offset by price realization and lower selling,
administrative and general expenses.
Market Conditions & Outlook
Agriculture & Turf. Deere's worldwide sales of
agriculture and turf equipment are forecast to decrease by about 8
percent for fiscal-year 2016, including a negative
currency-translation effect of about 2 percent.
Industry sales for agricultural equipment in the U.S. and
Canada are forecast to be down 15
to 20 percent for 2016. The decline, which reflects the
impact of low commodity prices and stagnant farm incomes, is
expected to be most pronounced in the sale of higher-horsepower
models.
Full-year 2016 industry sales in the EU28 are forecast to be
flat to down 5 percent, with the decline attributable to low
commodity prices and farm incomes, including further pressure on
the dairy sector. In South
America, industry sales of tractors and combines are
projected to be down 10 to 15 percent mainly as a result of
economic concerns in Brazil and
uncertainty about government-sponsored financing. Asian sales are
projected to be flat to down slightly, due in part to weakness in
China.
Industry sales of turf and utility equipment in the U.S. and
Canada are expected to be flat to
up 5 percent for 2016, benefiting from general economic growth.
Construction & Forestry. Deere's worldwide sales of
construction and forestry equipment are forecast to be down about 5
percent for 2016, including a negative currency-translation effect
of about 1 percent.
The forecast decline in sales reflects the impact of weak
conditions in the North American energy sector, especially in
Canada, as well as lower sales
outside the U.S. and Canada. In
forestry, global sales are expected to be down 5 to 10 percent from
last year's strong levels, primarily as a result of lower sales in
the U.S. and Canada.
Financial Services. Fiscal-year 2016 net income
attributable to Deere & Company for the financial services
operations is expected to be approximately $550 million. The outlook reflects less-favorable
financing spreads and an increased provision for credit
losses. Additionally, 2015 results benefited from a gain on
the sale of the crop insurance business.
John Deere Capital Corporation
The following is disclosed on behalf of the company's financial
services subsidiary, John Deere Capital Corporation (JDCC), in
connection with the disclosure requirements applicable to its
periodic issuance of debt securities in the public market.
Net income attributable to John Deere Capital Corporation was
$121.8 million for the fourth quarter
and $498.2 million for the full-year
2015, compared with $154.2 million
and $544.2 million for the respective
periods last year. The decline for the quarter was primarily due to
a decline in the average credit portfolio, higher losses on
residual values primarily for construction-equipment operating
leases, and less favorable financing spreads, partially offset by
lower selling, administrative and general expenses.
The decline for the full year was primarily due to less
favorable financing spreads, higher losses on residual values
primarily for construction-equipment operating leases and the
unfavorable effects of foreign-currency exchange translation,
partially offset by growth in the average credit portfolio and
lower selling, administrative and general expenses. Full-year
results for 2014 also benefited from a more favorable effective tax
rate.
Net receivables and leases financed by JDCC were $32.592 billion and $32.984 billion at October
31, 2015 and 2014, respectively.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: Statements under "Company Outlook
& Summary," "Market Conditions & Outlook," and other
forward-looking statements herein that relate to future events,
expectations, trends and operating periods involve certain factors
that are subject to change, and important risks and uncertainties
that could cause actual results to differ materially. Some of
these risks and uncertainties could affect particular lines of
business, while others could affect all of the company's
businesses.
The company's agricultural equipment business is subject to a
number of uncertainties including the many interrelated factors
that affect farmers' confidence. These factors include demand
for agricultural products, world grain stocks, weather conditions
(including its effects on timely planting and harvesting), soil
conditions (including low subsoil moisture), harvest yields, prices
for commodities and livestock, crop and livestock production
expenses, availability of transport for crops, the growth and
sustainability of non-food uses for some crops (including ethanol
and biodiesel production), real estate values, available acreage
for farming, the land ownership policies of various governments,
changes in government farm programs and policies (including those
in Argentina, Brazil, China, the European Union, India, Russia
and the U.S.), international reaction to such programs, changes in
and effects of crop insurance programs, global trade agreements,
animal diseases and their effects on poultry, beef and pork
consumption and prices, crop pests and diseases, and the level of
farm product exports (including concerns about genetically modified
organisms).
Factors affecting the outlook for the company's turf and utility
equipment include consumer confidence, weather conditions, customer
profitability, consumer borrowing patterns, consumer purchasing
preferences, housing starts, infrastructure investment, spending by
municipalities and golf courses, and consumable input costs.
Consumer spending patterns, real estate and housing prices, the
number of housing starts and interest rates are especially
important to sales of the company's construction and forestry
equipment. The levels of public and non-residential
construction also impact the results of the company's construction
and forestry segment. Prices for pulp, paper, lumber and
structural panels are important to sales of forestry equipment.
All of the company's businesses and its reported results are
affected by general economic conditions in the global markets and
industries in which the company operates, especially material
changes in economic activity in these markets and industries;
customer confidence in general economic conditions; foreign
currency exchange rates and their volatility, especially
fluctuations in the value of the U.S. dollar; interest rates; and
inflation and deflation rates. Government spending and taxing
could adversely affect the economy, employment, consumer and
corporate spending, and company results.
Customer and company operations and results could be affected by
changes in weather patterns (including the effects of drought and
drier than normal conditions in certain markets); the political and
social stability of the global markets in which the company
operates; the effects of, or response to, terrorism and security
threats; wars and other conflicts and the threat thereof and the
response thereto; natural disasters; and the spread of major
epidemics.
Significant changes in market liquidity conditions and any
failure to comply with financial covenants in credit agreements
could impact access to funding and funding costs, which could
reduce the company's earnings and cash flows. Financial
market conditions could also negatively impact customer access to
capital for purchases of the company's products and customer
confidence and purchase decisions, borrowing and repayment
practices, and the number and size of customer loan delinquencies
and defaults. A debt crisis, in Europe or elsewhere, could negatively impact
currencies, global financial markets, social and political
stability, funding sources and costs, asset and obligation values,
customers, suppliers, demand for equipment, and company operations
and results. The company's investment management activities
could be impaired by changes in the equity, bond and other
financial markets, which would negatively affect earnings.
Additional factors that could materially affect the company's
operations, access to capital, expenses and results include changes
in and the impact of governmental trade, banking, monetary and
fiscal policies, including financial regulatory reform and its
effects on the consumer finance industry, derivatives, funding
costs and other areas, and governmental programs, policies, tariffs
and sanctions in particular jurisdictions or for the benefit of
certain industries or sectors (including protectionist, economic,
punitive and expropriation policies and trade and licensing
restrictions that could disrupt international commerce); actions by
the U.S. Federal Reserve Board and other central banks; actions by
the U.S. Securities and Exchange Commission (SEC), the U.S.
Commodity Futures Trading Commission and other financial
regulators; actions by environmental, health and safety regulatory
agencies, including those related to engine emissions, carbon and
other greenhouse gas emissions, noise and the effects of climate
change; changes in labor regulations; changes to accounting
standards; changes in tax rates, estimates, and regulations and
company actions related thereto; compliance with U.S. and foreign
laws when expanding to new markets and otherwise; and actions by
other regulatory bodies including changes in laws and regulations
affecting the sectors in which the company operates. Trade,
financial and other sanctions imposed by the U.S., the European
Union, Russia and other countries
could negatively impact company assets, operations, sales,
forecasts and results. Customer and company operations and
results also could be affected by changes to GPS radio frequency
bands or their permitted uses.
Other factors that could materially affect results include
production, design and technological innovations and difficulties,
including capacity and supply constraints and prices; the
availability and prices of strategically sourced materials,
components and whole goods; delays or disruptions in the company's
supply chain or the loss of liquidity by suppliers; disruptions of
infrastructures that support communications, operations or
distribution; the failure of suppliers to comply with laws,
regulations and company policy pertaining to employment, human
rights, health, safety, the environment and other ethical business
practices; events that damage the company's reputation or brand;
significant investigations, claims, lawsuits or other legal
proceedings; start-up of new plants and new products; the success
of new product initiatives and customer acceptance of new products;
changes in customer product preferences and sales mix whether as a
result of changes in equipment design to meet government
regulations or for other reasons; gaps or limitations in rural
broadband coverage, capacity and speed needed to support technology
solutions; oil and energy prices, supplies and volatility; the
availability and cost of freight; actions of competitors in the
various industries in which the company competes, particularly
price discounting; dealer practices especially as to levels of new
and used field inventories; labor relations and contracts;
acquisitions and divestitures of businesses; the integration of new
businesses; the implementation of organizational changes;
difficulties related to the conversion and implementation of
enterprise resource planning systems that disrupt business,
negatively impact supply or distribution relationships or create
higher than expected costs; security breaches and other disruptions
to the company's information technology infrastructure; and changes
in company declared dividends and common stock issuances and
repurchases.
Company results are also affected by changes in the level and
funding of employee retirement benefits, changes in market values
of investment assets, the level of interest and discount rates, and
compensation, retirement and mortality rates which impact
retirement benefit costs, and significant changes in health care
costs including those which may result from governmental
action.
The liquidity and ongoing profitability of John Deere Capital
Corporation and other credit subsidiaries depend largely on timely
access to capital in order to meet future cash flow requirements,
to fund operations and costs associated with engaging in
diversified funding activities, and to fund purchases of the
company's products. If general economic conditions
deteriorate or capital markets become volatile, funding could be
unavailable or insufficient. Additionally, customer
confidence levels may result in declines in credit applications and
increases in delinquencies and default rates, which could
materially impact write-offs and provisions for credit losses.
The company's outlook is based upon assumptions relating to the
factors described above, which are sometimes based upon estimates
and data prepared by government agencies. Such estimates and
data are often revised. The company, except as required by
law, undertakes no obligation to update or revise its outlook,
whether as a result of new developments or otherwise. Further
information concerning the company and its businesses, including
factors that potentially could materially affect the company's
financial results, is included in the company's other filings with
the SEC (including, but not limited to, the factors discussed in
Item 1A. Risk Factors of the company's most recent annual report on
Form 10-K and quarterly reports on Form 10-Q).
Fourth Quarter 2015
Press Release
|
(in millions of
dollars)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
October 31
|
|
October 31
|
|
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
|
%
|
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
Net sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture and
turf
|
|
$
|
4,656
|
|
$
|
6,169
|
|
-25
|
|
$
|
19,812
|
|
$
|
26,380
|
|
-25
|
Construction and
forestry
|
|
|
1,276
|
|
|
1,874
|
|
-32
|
|
|
5,963
|
|
|
6,581
|
|
-9
|
Total net
sales
|
|
|
5,932
|
|
|
8,043
|
|
-26
|
|
|
25,775
|
|
|
32,961
|
|
-22
|
Financial
services
|
|
|
654
|
|
|
762
|
|
-14
|
|
|
2,591
|
|
|
2,577
|
|
+1
|
Other
revenues
|
|
|
129
|
|
|
160
|
|
-19
|
|
|
497
|
|
|
529
|
|
-6
|
Total net sales and
revenues
|
|
$
|
6,715
|
|
$
|
8,965
|
|
-25
|
|
$
|
28,863
|
|
$
|
36,067
|
|
-20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit:
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture and
turf
|
|
$
|
271
|
|
$
|
682
|
|
-60
|
|
$
|
1,649
|
|
$
|
3,649
|
|
-55
|
Construction and
forestry
|
|
|
64
|
|
|
228
|
|
-72
|
|
|
528
|
|
|
648
|
|
-19
|
Financial
services
|
|
|
226
|
|
|
261
|
|
-13
|
|
|
963
|
|
|
921
|
|
+5
|
Total operating
profit
|
|
|
561
|
|
|
1,171
|
|
-52
|
|
|
3,140
|
|
|
5,218
|
|
-40
|
Reconciling items
**
|
|
|
(105)
|
|
|
(105)
|
|
|
|
|
(360)
|
|
|
(429)
|
|
-16
|
Income
taxes
|
|
|
(105)
|
|
|
(417)
|
|
-75
|
|
|
(840)
|
|
|
(1,627)
|
|
-48
|
Net income
attributable to Deere & Company
|
|
$
|
351
|
|
$
|
649
|
|
-46
|
|
$
|
1,940
|
|
$
|
3,162
|
|
-39
|
|
|
*
|
Operating profit is
income from continuing operations before corporate expenses,
certain external interest expense, certain foreign exchange gains
and losses and income taxes. Operating profit of the financial
services segment includes the effect of interest expense and
foreign exchange gains or losses.
|
|
|
**
|
Reconciling items are
primarily corporate expenses, certain external interest expense,
certain foreign exchange gains and losses and net income
attributable to noncontrolling interests.
|
DEERE &
COMPANY
|
STATEMENT OF
CONSOLIDATED INCOME
|
For the Three Months
Ended October 31, 2015 and 2014
|
(In millions of
dollars and shares except per share amounts) Unaudited
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
Net Sales and
Revenues
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,932.0
|
|
$
|
8,042.8
|
Finance and interest
income
|
|
|
614.5
|
|
|
633.1
|
Other
income
|
|
|
168.9
|
|
|
288.8
|
Total
|
|
|
6,715.4
|
|
|
8,964.7
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
Cost of
sales
|
|
|
4,670.4
|
|
|
6,097.1
|
Research and
development expenses
|
|
|
404.0
|
|
|
412.1
|
Selling,
administrative and general expenses
|
|
|
719.1
|
|
|
851.3
|
Interest
expense
|
|
|
162.9
|
|
|
172.5
|
Other operating
expenses
|
|
|
302.0
|
|
|
355.2
|
Total
|
|
|
6,258.4
|
|
|
7,888.2
|
|
|
|
|
|
|
|
Income of
Consolidated Group before Income Taxes
|
|
|
457.0
|
|
|
1,076.5
|
Provision for income
taxes
|
|
|
104.5
|
|
|
416.9
|
Income of
Consolidated Group
|
|
|
352.5
|
|
|
659.6
|
Equity in loss of
unconsolidated affiliates
|
|
|
(.9)
|
|
|
(9.8)
|
Net
Income
|
|
|
351.6
|
|
|
649.8
|
Less: Net income
attributable to noncontrolling interests
|
|
|
.4
|
|
|
.6
|
Net Income
Attributable to Deere & Company
|
|
$
|
351.2
|
|
$
|
649.2
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Basic
|
|
$
|
1.09
|
|
$
|
1.84
|
Diluted
|
|
$
|
1.08
|
|
$
|
1.83
|
|
|
|
|
|
|
|
Average Shares
Outstanding
|
|
|
|
|
|
|
Basic
|
|
|
323.0
|
|
|
352.3
|
Diluted
|
|
|
324.6
|
|
|
354.8
|
|
|
|
|
|
|
|
|
See Condensed Notes
to Interim Consolidated Financial Statements.
|
DEERE &
COMPANY
|
STATEMENT OF
CONSOLIDATED INCOME
|
For the Years Ended
October 31, 2015 and 2014
|
(In millions of
dollars and shares except per share amounts) Unaudited
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
Net Sales and
Revenues
|
|
|
|
|
|
|
Net sales
|
|
$
|
25,775.2
|
|
$
|
32,960.6
|
Finance and interest
income
|
|
|
2,381.1
|
|
|
2,282.1
|
Other
income
|
|
|
706.5
|
|
|
824.2
|
Total
|
|
|
28,862.8
|
|
|
36,066.9
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
Cost of
sales
|
|
|
20,143.2
|
|
|
24,775.8
|
Research and
development expenses
|
|
|
1,425.1
|
|
|
1,452.0
|
Selling,
administrative and general expenses
|
|
|
2,873.3
|
|
|
3,284.4
|
Interest
expense
|
|
|
680.0
|
|
|
664.0
|
Other operating
expenses
|
|
|
961.1
|
|
|
1,093.3
|
Total
|
|
|
26,082.7
|
|
|
31,269.5
|
|
|
|
|
|
|
|
Income of
Consolidated Group before Income Taxes
|
|
|
2,780.1
|
|
|
4,797.4
|
Provision for income
taxes
|
|
|
840.1
|
|
|
1,626.5
|
Income of
Consolidated Group
|
|
|
1,940.0
|
|
|
3,170.9
|
Equity in income
(loss) of unconsolidated affiliates
|
|
|
.9
|
|
|
(7.6)
|
Net
Income
|
|
|
1,940.9
|
|
|
3,163.3
|
Less: Net income
attributable to noncontrolling interests
|
|
|
.9
|
|
|
1.6
|
Net Income
Attributable to Deere & Company
|
|
$
|
1,940.0
|
|
$
|
3,161.7
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Basic
|
|
$
|
5.81
|
|
$
|
8.71
|
Diluted
|
|
$
|
5.77
|
|
$
|
8.63
|
|
|
|
|
|
|
|
Average Shares
Outstanding
|
|
|
|
|
|
|
Basic
|
|
|
333.6
|
|
|
363.0
|
Diluted
|
|
|
336.0
|
|
|
366.1
|
|
|
|
|
|
|
|
|
See Condensed Notes
to Interim Consolidated Financial Statements.
|
DEERE &
COMPANY
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
As of October 31,
2015 and 2014
|
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
October 31
|
|
October 31
|
|
|
2015
|
|
2014
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
4,162.2
|
|
$
|
3,787.0
|
Marketable
securities
|
|
|
437.4
|
|
|
1,215.1
|
Receivables from
unconsolidated affiliates
|
|
|
33.3
|
|
|
30.2
|
Trade accounts and
notes receivable - net
|
|
|
3,051.1
|
|
|
3,277.6
|
Financing receivables
- net
|
|
|
24,809.0
|
|
|
27,422.2
|
Financing receivables
securitized - net
|
|
|
4,834.6
|
|
|
4,602.3
|
Other
receivables
|
|
|
991.2
|
|
|
1,500.3
|
Equipment on
operating leases - net
|
|
|
4,970.4
|
|
|
4,015.5
|
Inventories
|
|
|
3,817.0
|
|
|
4,209.7
|
Property and
equipment - net
|
|
|
5,181.5
|
|
|
5,577.8
|
Investments in
unconsolidated affiliates
|
|
|
303.5
|
|
|
303.2
|
Goodwill
|
|
|
726.0
|
|
|
791.2
|
Other intangible
assets - net
|
|
|
63.6
|
|
|
68.8
|
Retirement
benefits
|
|
|
215.6
|
|
|
262.0
|
Deferred income
taxes
|
|
|
2,767.3
|
|
|
2,776.6
|
Other
assets
|
|
|
1,583.9
|
|
|
1,496.9
|
Total
Assets
|
|
$
|
57,947.6
|
|
$
|
61,336.4
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
8,426.6
|
|
$
|
8,019.2
|
Short-term
securitization borrowings
|
|
|
4,590.0
|
|
|
4,558.5
|
Payables to
unconsolidated affiliates
|
|
|
80.6
|
|
|
101.0
|
Accounts payable and
accrued expenses
|
|
|
7,311.5
|
|
|
8,554.1
|
Deferred income
taxes
|
|
|
160.8
|
|
|
160.9
|
Long-term
borrowings
|
|
|
23,832.8
|
|
|
24,380.7
|
Retirement benefits
and other liabilities
|
|
|
6,787.7
|
|
|
6,496.5
|
Total
liabilities
|
|
|
51,190.0
|
|
|
52,270.9
|
Total Deere &
Company stockholders' equity
|
|
|
6,743.4
|
|
|
9,062.6
|
Noncontrolling
interests
|
|
|
14.2
|
|
|
2.9
|
Total stockholders'
equity
|
|
|
6,757.6
|
|
|
9,065.5
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
57,947.6
|
|
$
|
61,336.4
|
|
|
|
|
|
|
|
|
See Condensed Notes
to Interim Consolidated Financial Statements.
|
DEERE &
COMPANY
|
STATEMENT OF
CONSOLIDATED CASH FLOWS
|
For the Years Ended
October 31, 2015 and 2014
|
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
Net income
|
|
$
|
1,940.9
|
|
$
|
3,163.3
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Provision for credit
losses
|
|
|
55.4
|
|
|
38.1
|
Provision for
depreciation and amortization
|
|
|
1,382.4
|
|
|
1,306.5
|
Impairment
charges
|
|
|
34.8
|
|
|
95.9
|
Share-based
compensation expense
|
|
|
66.1
|
|
|
78.5
|
Undistributed earnings
of unconsolidated affiliates
|
|
|
(1.0)
|
|
|
9.3
|
Credit for deferred
income taxes
|
|
|
(18.4)
|
|
|
(280.1)
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
Trade, notes and
financing receivables related to sales
|
|
|
811.6
|
|
|
(749.0)
|
Insurance
receivables
|
|
|
333.4
|
|
|
(149.9)
|
Inventories
|
|
|
(691.4)
|
|
|
(297.9)
|
Accounts payable and
accrued expenses
|
|
|
(503.6)
|
|
|
(137.1)
|
Accrued income taxes
payable/receivable
|
|
|
(137.6)
|
|
|
342.6
|
Retirement
benefits
|
|
|
427.5
|
|
|
336.9
|
Other
|
|
|
40.2
|
|
|
(231.2)
|
Net cash provided by
operating activities
|
|
|
3,740.3
|
|
|
3,525.9
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
Collections of
receivables (excluding receivables related to sales)
|
|
|
14,919.7
|
|
|
15,319.1
|
Proceeds from
maturities and sales of marketable securities
|
|
|
860.7
|
|
|
1,022.5
|
Proceeds from sales
of equipment on operating leases
|
|
|
1,049.4
|
|
|
1,091.5
|
Proceeds from sales
of businesses, net of cash sold
|
|
|
149.2
|
|
|
345.8
|
Cost of receivables
acquired (excluding receivables related to sales)
|
|
|
(14,996.5)
|
|
|
(17,240.4)
|
Purchases of
marketable securities
|
|
|
(154.9)
|
|
|
(614.6)
|
Purchases of property
and equipment
|
|
|
(694.0)
|
|
|
(1,048.3)
|
Cost of equipment on
operating leases acquired
|
|
|
(2,132.1)
|
|
|
(1,611.0)
|
Other
|
|
|
(60.2)
|
|
|
(145.6)
|
Net cash used for
investing activities
|
|
|
(1,058.7)
|
|
|
(2,881.0)
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
Increase in total
short-term borrowings
|
|
|
501.6
|
|
|
89.2
|
Proceeds from
long-term borrowings
|
|
|
5,711.0
|
|
|
8,232.0
|
Payments of long-term
borrowings
|
|
|
(4,863.2)
|
|
|
(5,209.1)
|
Proceeds from
issuance of common stock
|
|
|
172.1
|
|
|
149.5
|
Repurchases of common
stock
|
|
|
(2,770.7)
|
|
|
(2,731.1)
|
Dividends
paid
|
|
|
(816.3)
|
|
|
(786.0)
|
Excess tax benefits
from share-based compensation
|
|
|
18.5
|
|
|
30.8
|
Other
|
|
|
(72.1)
|
|
|
(63.6)
|
Net cash used for
financing activities
|
|
|
(2,119.1)
|
|
|
(288.3)
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
|
|
(187.3)
|
|
|
(73.6)
|
|
|
|
|
|
|
|
Net Increase in
Cash and Cash Equivalents
|
|
|
375.2
|
|
|
283.0
|
Cash and Cash
Equivalents at Beginning of Year
|
|
|
3,787.0
|
|
|
3,504.0
|
Cash and Cash
Equivalents at End of Year
|
|
$
|
4,162.2
|
|
$
|
3,787.0
|
|
|
|
|
|
|
|
|
See Condensed Notes
to Interim Consolidated Financial Statements.
|
Condensed Notes to
Interim Consolidated Financial Statements (Unaudited)
|
|
|
(1)
|
In March 2015, the
Company closed the sale of all of the stock of its wholly-owned
subsidiaries, John Deere Insurance Company and John Deere Risk
Protection, Inc. (collectively the Crop Insurance operations) to
Farmers Mutual Hail Insurance Company of Iowa. These operations
were included in the Company's financial services operating
segment. At January 31, 2015, total assets of $381 million and
liabilities of $267 million were classified as held for sale in the
consolidated financial statements, which consisted of the
following:
|
|
|
|
|
|
January 31, 2015
|
Cash and cash
equivalents
|
|
$
|
13
|
Marketable
securities
|
|
|
79
|
Other
receivables
|
|
|
265
|
Other intangible
assets - net
|
|
|
4
|
Other
assets
|
|
|
20
|
Total assets held for
sale
|
|
$
|
381
|
|
|
|
|
Account payable and
accrued expenses, and
Total liabilities held for sale
|
|
$
|
267
|
|
|
|
The total amount of
proceeds from the sale was approximately $154 million, including $5
million of cash and cash equivalents sold, with a gain recorded in
other income of $42 million pretax and $40 million after-tax. The
tax expense was partially offset by a change in a valuation
allowance on a capital loss carryforward. The Company provided
certain business services for a fee during a transition
period.
|
|
|
(2)
|
Dividends declared
and paid on a per share basis were as follows:
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
October 31
|
|
October 31
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared
|
|
$
|
.60
|
|
$
|
.60
|
|
$
|
2.40
|
|
$
|
2.22
|
Dividends
paid
|
|
$
|
.60
|
|
$
|
.60
|
|
$
|
2.40
|
|
$
|
2.13
|
|
|
(3)
|
The calculation of
basic net income per share is based on the average number of shares
outstanding. The calculation of diluted net income per share
recognizes any dilutive effect of share-based
compensation.
|
|
|
(4)
|
The consolidated
financial statements represent the consolidation of all
Deere & Company's subsidiaries. In the supplemental
consolidating data in Note 5 to the financial statements,
"Equipment Operations" include the Company's agriculture and turf
operations and construction and forestry operations with "Financial
Services" reflected on the equity basis.
|
(5) SUPPLEMENTAL
CONSOLIDATING DATA
|
STATEMENT OF
INCOME
|
For the Three Months
Ended October 31, 2015 and 2014
|
(In millions of dollars) Unaudited
|
|
EQUIPMENT OPERATIONS*
|
|
FINANCIAL SERVICES
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Sales and
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,932.0
|
|
$
|
8,042.8
|
|
|
|
|
|
|
Finance and interest
income
|
|
|
18.2
|
|
|
26.5
|
|
$
|
656.1
|
|
$
|
679.8
|
Other
income
|
|
|
151.7
|
|
|
175.0
|
|
|
57.5
|
|
|
141.7
|
Total
|
|
|
6,101.9
|
|
|
8,244.3
|
|
|
713.6
|
|
|
821.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
4,671.0
|
|
|
6,098.3
|
|
|
|
|
|
|
Research and
development expenses
|
|
|
404.0
|
|
|
412.1
|
|
|
|
|
|
|
Selling,
administrative and general expenses
|
|
|
599.6
|
|
|
718.2
|
|
|
120.5
|
|
|
134.9
|
Interest
expense
|
|
|
64.8
|
|
|
72.9
|
|
|
109.0
|
|
|
117.9
|
Interest compensation
to Financial Services
|
|
|
48.8
|
|
|
54.7
|
|
|
|
|
|
|
Other operating
expenses
|
|
|
82.5
|
|
|
72.6
|
|
|
258.3
|
|
|
307.7
|
Total
|
|
|
5,870.7
|
|
|
7,428.8
|
|
|
487.8
|
|
|
560.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income of
Consolidated Group before Income Taxes
|
|
|
231.2
|
|
|
815.5
|
|
|
225.8
|
|
|
261.0
|
Provision for income
taxes
|
|
|
31.4
|
|
|
327.8
|
|
|
73.1
|
|
|
89.1
|
Income of
Consolidated Group
|
|
|
199.8
|
|
|
487.7
|
|
|
152.7
|
|
|
171.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Income
(Loss) of Unconsolidated Subsidiaries and Affiliates
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
|
153.0
|
|
|
172.2
|
|
|
.3
|
|
|
.3
|
Other
|
|
|
(1.2)
|
|
|
(10.1)
|
|
|
|
|
|
|
Total
|
|
|
151.8
|
|
|
162.1
|
|
|
.3
|
|
|
.3
|
Net
Income
|
|
|
351.6
|
|
|
649.8
|
|
|
153.0
|
|
|
172.2
|
Less: Net income
attributable to noncontrolling interests
|
|
|
.4
|
|
|
.6
|
|
|
|
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
351.2
|
|
$
|
649.2
|
|
$
|
153.0
|
|
$
|
172.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
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
INCOME
|
For the Years Ended
October 31, 2015 and 2014
|
(In millions of dollars) Unaudited
|
|
EQUIPMENT OPERATIONS*
|
|
FINANCIAL SERVICES
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Sales and
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
25,775.2
|
|
$
|
32,960.6
|
|
|
|
|
|
|
Finance and interest
income
|
|
|
77.0
|
|
|
76.5
|
|
$
|
2,557.0
|
|
$
|
2,475.0
|
Other
income
|
|
|
602.7
|
|
|
622.6
|
|
|
258.9
|
|
|
330.2
|
Total
|
|
|
26,454.9
|
|
|
33,659.7
|
|
|
2,815.9
|
|
|
2,805.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
20,145.2
|
|
|
24,777.8
|
|
|
|
|
|
|
Research and
development expenses
|
|
|
1,425.1
|
|
|
1,452.0
|
|
|
|
|
|
|
Selling,
administrative and general expenses
|
|
|
2,393.8
|
|
|
2,765.1
|
|
|
487.3
|
|
|
529.2
|
Interest
expense
|
|
|
272.8
|
|
|
289.4
|
|
|
455.0
|
|
|
430.9
|
Interest compensation
to Financial Services
|
|
|
204.8
|
|
|
212.1
|
|
|
|
|
|
|
Other operating
expenses
|
|
|
195.0
|
|
|
285.4
|
|
|
911.7
|
|
|
925.6
|
Total
|
|
|
24,636.7
|
|
|
29,781.8
|
|
|
1,854.0
|
|
|
1,885.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income of
Consolidated Group before Income Taxes
|
|
|
1,818.2
|
|
|
3,877.9
|
|
|
961.9
|
|
|
919.5
|
Provision for income
taxes
|
|
|
509.9
|
|
|
1,329.6
|
|
|
330.2
|
|
|
296.9
|
Income of
Consolidated Group
|
|
|
1,308.3
|
|
|
2,548.3
|
|
|
631.7
|
|
|
622.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Income
(Loss) of Unconsolidated Subsidiaries and Affiliates
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
|
632.9
|
|
|
624.5
|
|
|
1.2
|
|
|
1.9
|
Other
|
|
|
(.3)
|
|
|
(9.5)
|
|
|
|
|
|
|
Total
|
|
|
632.6
|
|
|
615.0
|
|
|
1.2
|
|
|
1.9
|
Net
Income
|
|
|
1,940.9
|
|
|
3,163.3
|
|
|
632.9
|
|
|
624.5
|
Less: Net income
attributable to noncontrolling interests
|
|
|
.9
|
|
|
1.6
|
|
|
|
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
1,940.0
|
|
$
|
3,161.7
|
|
$
|
632.9
|
|
$
|
624.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
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
|
As of October 31,
2015 and 2014
|
(In millions of dollars) Unaudited
|
|
EQUIPMENT OPERATIONS*
|
|
FINANCIAL SERVICES
|
|
|
October 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,900.0
|
|
$
|
2,569.2
|
|
$
|
1,262.2
|
|
$
|
1,217.8
|
Marketable
securities
|
|
|
47.7
|
|
|
700.4
|
|
|
389.7
|
|
|
514.7
|
Receivables from
unconsolidated subsidiaries and affiliates
|
|
|
2,428.7
|
|
|
3,663.9
|
|
|
|
|
|
|
Trade accounts and
notes receivable - net
|
|
|
485.2
|
|
|
706.0
|
|
|
3,553.1
|
|
|
3,554.4
|
Financing receivables
- net
|
|
|
.9
|
|
|
18.5
|
|
|
24,808.1
|
|
|
27,403.7
|
Financing receivables
securitized - net
|
|
|
|
|
|
|
|
|
4,834.6
|
|
|
4,602.3
|
Other
receivables
|
|
|
849.5
|
|
|
848.0
|
|
|
152.9
|
|
|
659.0
|
Equipment on
operating leases - net
|
|
|
|
|
|
|
|
|
4,970.4
|
|
|
4,015.5
|
Inventories
|
|
|
3,817.0
|
|
|
4,209.7
|
|
|
|
|
|
|
Property and
equipment - net
|
|
|
5,126.2
|
|
|
5,522.5
|
|
|
55.3
|
|
|
55.3
|
Investments in
unconsolidated subsidiaries and affiliates
|
|
|
4,817.6
|
|
|
5,106.5
|
|
|
10.5
|
|
|
10.9
|
Goodwill
|
|
|
726.0
|
|
|
791.2
|
|
|
|
|
|
|
Other intangible
assets - net
|
|
|
63.6
|
|
|
64.8
|
|
|
|
|
|
4.0
|
Retirement
benefits
|
|
|
211.9
|
|
|
263.5
|
|
|
25.0
|
|
|
32.9
|
Deferred income
taxes
|
|
|
3,092.0
|
|
|
2,981.9
|
|
|
67.9
|
|
|
64.9
|
Other
assets
|
|
|
807.3
|
|
|
850.6
|
|
|
779.1
|
|
|
648.2
|
Total
Assets
|
|
$
|
25,373.6
|
|
$
|
28,296.7
|
|
$
|
40,908.8
|
|
$
|
42,783.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
464.3
|
|
$
|
434.1
|
|
$
|
7,962.3
|
|
$
|
7,585.1
|
Short-term
securitization borrowings
|
|
|
|
|
|
|
|
|
4,590.0
|
|
|
4,558.5
|
Payables to
unconsolidated subsidiaries and affiliates
|
|
|
80.6
|
|
|
101.0
|
|
|
2,395.4
|
|
|
3,633.7
|
Accounts payable and
accrued expenses
|
|
|
6,801.2
|
|
|
7,518.4
|
|
|
1,511.2
|
|
|
2,027.0
|
Deferred income
taxes
|
|
|
86.8
|
|
|
87.1
|
|
|
466.6
|
|
|
344.1
|
Long-term
borrowings
|
|
|
4,460.6
|
|
|
4,642.5
|
|
|
19,372.2
|
|
|
19,738.2
|
Retirement benefits
and other liabilities
|
|
|
6,722.5
|
|
|
6,448.1
|
|
|
86.4
|
|
|
82.8
|
Total
liabilities
|
|
|
18,616.0
|
|
|
19,231.2
|
|
|
36,384.1
|
|
|
37,969.4
|
Total
Deere & Company stockholders' equity
|
|
|
6,743.4
|
|
|
9,062.6
|
|
|
4,524.7
|
|
|
4,814.2
|
Noncontrolling
interests
|
|
|
14.2
|
|
|
2.9
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
6,757.6
|
|
|
9,065.5
|
|
|
4,524.7
|
|
|
4,814.2
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
25,373.6
|
|
$
|
28,296.7
|
|
$
|
40,908.8
|
|
$
|
42,783.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
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 Years Ended
October 31, 2015 and 2014
|
(In millions of dollars) Unaudited
|
|
EQUIPMENT OPERATIONS*
|
|
FINANCIAL SERVICES
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,940.9
|
|
$
|
3,163.3
|
|
$
|
632.9
|
|
$
|
624.5
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
|
5.5
|
|
|
2.9
|
|
|
49.9
|
|
|
35.2
|
Provision for
depreciation and amortization
|
|
|
791.8
|
|
|
795.7
|
|
|
688.5
|
|
|
574.9
|
Impairment
charges
|
|
|
15.3
|
|
|
95.9
|
|
|
19.5
|
|
|
|
Undistributed earnings
of unconsolidated subsidiaries and affiliates
|
|
|
46.6
|
|
|
(463.4)
|
|
|
(1.0)
|
|
|
(1.7)
|
Provision (credit) for
deferred income taxes
|
|
|
(139.8)
|
|
|
(236.4)
|
|
|
121.4
|
|
|
(43.7)
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
receivables
|
|
|
113.4
|
|
|
231.5
|
|
|
|
|
|
|
Insurance
receivables
|
|
|
|
|
|
|
|
|
333.4
|
|
|
(149.9)
|
Inventories
|
|
|
(17.0)
|
|
|
496.2
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
|
(253.8)
|
|
|
(277.0)
|
|
|
(245.4)
|
|
|
263.3
|
Accrued income taxes
payable/receivable
|
|
|
(133.0)
|
|
|
330.5
|
|
|
(4.6)
|
|
|
12.1
|
Retirement
benefits
|
|
|
414.3
|
|
|
323.0
|
|
|
13.2
|
|
|
13.9
|
Other
|
|
|
271.1
|
|
|
70.0
|
|
|
(25.7)
|
|
|
(7.7)
|
Net cash provided by
operating activities
|
|
|
3,055.3
|
|
|
4,532.2
|
|
|
1,582.1
|
|
|
1,320.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Collections of
receivables (excluding trade and wholesale)
|
|
|
|
|
|
|
|
|
16,266.1
|
|
|
16,772.0
|
Proceeds from
maturities and sales of marketable securities
|
|
|
700.1
|
|
|
1,000.1
|
|
|
160.6
|
|
|
22.4
|
Proceeds from sales
of equipment on operating leases
|
|
|
|
|
|
|
|
|
1,049.4
|
|
|
1,091.5
|
Proceeds from sales
of businesses, net of cash sold
|
|
|
|
|
|
345.8
|
|
|
149.2
|
|
|
|
Cost of receivables
acquired (excluding trade and wholesale)
|
|
|
|
|
|
|
|
|
(16,327.8)
|
|
|
(19,015.3)
|
Purchases of
marketable securities
|
|
|
(60.0)
|
|
|
(504.1)
|
|
|
(94.9)
|
|
|
(110.5)
|
Purchases of property
and equipment
|
|
|
(688.1)
|
|
|
(1,045.2)
|
|
|
(5.9)
|
|
|
(3.1)
|
Cost of equipment on
operating leases acquired
|
|
|
|
|
|
|
|
|
(3,043.6)
|
|
|
(2,684.2)
|
Increase in
investment in Financial Services
|
|
|
(27.4)
|
|
|
(66.8)
|
|
|
|
|
|
|
Decrease (increase)
in trade and wholesale receivables
|
|
|
|
|
|
|
|
|
657.0
|
|
|
(782.0)
|
Other
|
|
|
6.8
|
|
|
(98.6)
|
|
|
(45.1)
|
|
|
(47.1)
|
Net cash used for
investing activities
|
|
|
(68.6)
|
|
|
(368.8)
|
|
|
(1,235.0)
|
|
|
(4,756.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in total short-term borrowings
|
|
|
211.9
|
|
|
(65.8)
|
|
|
289.7
|
|
|
155.0
|
Change in
intercompany receivables/payables
|
|
|
928.6
|
|
|
(367.5)
|
|
|
(928.6)
|
|
|
367.5
|
Proceeds from
long-term borrowings
|
|
|
6.2
|
|
|
60.7
|
|
|
5,704.8
|
|
|
8,171.3
|
Payments of long-term
borrowings
|
|
|
(214.2)
|
|
|
(819.1)
|
|
|
(4,649.0)
|
|
|
(4,390.0)
|
Proceeds from
issuance of common stock
|
|
|
172.1
|
|
|
149.5
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
|
(2,770.7)
|
|
|
(2,731.1)
|
|
|
|
|
|
|
Capital investment
from Equipment Operations
|
|
|
|
|
|
|
|
|
27.4
|
|
|
66.8
|
Dividends
paid
|
|
|
(816.3)
|
|
|
(786.0)
|
|
|
(679.6)
|
|
|
(150.0)
|
Excess tax benefits
from share-based compensation
|
|
|
18.5
|
|
|
30.8
|
|
|
|
|
|
|
Other
|
|
|
(45.4)
|
|
|
(27.7)
|
|
|
(26.7)
|
|
|
(35.9)
|
Net cash provided by
(used for) financing activities
|
|
|
(2,509.3)
|
|
|
(4,556.2)
|
|
|
(262.0)
|
|
|
4,184.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
|
|
(146.6)
|
|
|
(61.3)
|
|
|
(40.7)
|
|
|
(12.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
|
|
330.8
|
|
|
(454.1)
|
|
|
44.4
|
|
|
737.0
|
Cash and Cash
Equivalents at Beginning of Year
|
|
|
2,569.2
|
|
|
3,023.3
|
|
|
1,217.8
|
|
|
480.8
|
Cash and Cash
Equivalents at End of Year
|
|
$
|
2,900.0
|
|
$
|
2,569.2
|
|
$
|
1,262.2
|
|
$
|
1,217.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
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.
|
Deere &
Company
|
Other Financial
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months
Ended October 31,
|
|
Equipment Operations
|
Agriculture and Turf
|
Construction and Forestry
|
Dollars in millions
|
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
Net
Sales
|
|
$
|
25,775
|
|
$
|
32,961
|
|
$
|
19,812
|
|
$
|
26,380
|
|
$
|
5,963
|
|
$
|
6,581
|
|
Average
Identifiable Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With Inventories at
LIFO
|
|
$
|
12,491
|
|
$
|
14,113
|
|
$
|
9,056
|
|
$
|
10,668
|
|
$
|
3,435
|
|
$
|
3,445
|
|
With Inventories at
Standard Cost
|
|
$
|
13,840
|
|
$
|
15,493
|
|
$
|
10,173
|
|
$
|
11,813
|
|
$
|
3,667
|
|
$
|
3,680
|
|
Operating
Profit
|
|
$
|
2,177
|
|
$
|
4,297
|
|
$
|
1,649
|
|
$
|
3,649
|
|
$
|
528
|
|
$
|
648
|
|
Percent of Net
Sales
|
|
|
8.4
|
%
|
|
13.0
|
%
|
|
8.3
|
%
|
|
13.8
|
%
|
|
8.9
|
%
|
|
9.8
|
%
|
Operating Return
on Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With Inventories at
LIFO
|
|
|
17.4
|
%
|
|
30.4
|
%
|
|
18.2
|
%
|
|
34.2
|
%
|
|
15.4
|
%
|
|
18.8
|
%
|
With Inventories at
Standard Cost
|
|
|
15.7
|
%
|
|
27.7
|
%
|
|
16.2
|
%
|
|
30.9
|
%
|
|
14.4
|
%
|
|
17.6
|
%
|
SVA Cost of
Assets
|
|
$
|
(1,661)
|
|
$
|
(1,860)
|
|
$
|
(1,221)
|
|
$
|
(1,418)
|
|
$
|
(440)
|
|
$
|
(442)
|
|
SVA
|
|
$
|
516
|
|
$
|
2,437
|
|
$
|
428
|
|
$
|
2,231
|
|
$
|
88
|
|
$
|
206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months
Ended October 31,
|
|
Financial
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
633
|
|
$
|
624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Equity
|
|
$
|
4,655
|
|
$
|
4,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
Equity
|
|
|
13.6
|
%
|
|
13.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
$
|
963
|
|
$
|
921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Equity
|
|
$
|
4,655
|
|
$
|
4,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Equity
|
|
$
|
(705)
|
|
$
|
(664)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SVA
|
|
$
|
258
|
|
$
|
257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company evaluates its business results on the basis of
accounting principles generally accepted in the United
States. In addition, it uses a metric referred to as
Shareholder Value Added (SVA), which management believes is an
appropriate measure for the performance of its businesses.
SVA is, in effect, the pretax profit left over after subtracting
the cost of enterprise capital. The Company is aiming for a
sustained creation of SVA and is using this metric for various
performance goals. Certain compensation is also determined on
the basis of performance using this measure. For purposes of
determining SVA, each of the equipment segments is assessed a
pretax cost of assets, which on an annual basis is approximately 12
percent of the segment's average identifiable operating assets
during the applicable period with inventory at standard cost.
Management believes that valuing inventories at standard cost more
closely approximates the current cost of inventory and the
Company's investment in the asset. The Financial Services
segment is assessed an annual pretax cost of approximately 15
percent of the segment's average equity. The cost of assets
or equity, as applicable, is deducted from the operating profit or
added to the operating loss of each segment to determine the amount
of SVA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/deere-announces-earnings-of-351-million-for-fourth-quarter-and-194-billion-for-full-year-300184254.html
SOURCE Deere & Company