MOLINE, Ill., Aug. 20, 2021
/CNW/ --
- Equipment-division operating margin of 19% demonstrates strong
execution in face of supply-chain challenges.
- Full-year earnings forecast raised to range of $5.7 to $5.9
billion, reflecting robust market conditions.
- Strategic investments reinforce focus on delivering customer
value.
Deere & Company (NYSE: DE) reported net income of
$1.667 billion for the third quarter
ended August 1, 2021, or $5.32
per share, compared with net income of $811
million, or $2.57 per
share, for the quarter ended August 2, 2020. For the first
nine months of the 2021 fiscal year, net income attributable to
Deere & Company was $4.680
billion, or $14.86 per share,
compared with $1.993 billion, or
$6.30 per share, for the same
period last year.
Worldwide net sales and revenues increased 29 percent, to
$11.527 billion, for the third
quarter of 2021 and rose 27 percent, to $32.697 billion, for nine months. Net sales of
the equipment operations were $10.413
billion for the quarter and $29.461
billion for nine months, compared with $7.859 billion and $22.612 billion for the same periods last
year, respectively.
"Our strong results, driven by essentially all product
categories, are a testament to the exceptional efforts of our
employees and dealers to keep our factories running and customers
served while enduring significant supply-chain pressures," said
John C. May, chairman and chief
executive officer. "We also made strategic investments in the
quarter aligned with our smart industrial strategy. They will
further our efforts to help our customers achieve improved
profitability, productivity, and sustainability through the
effective use of technology."
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2021
is forecasted to be in a range of $5.7
billion to $5.9 billion.
"Looking ahead, we expect demand for farm and construction
equipment to continue benefiting from favorable fundamentals," May
said. "We are, at the same time, excited by the growing engagement
with our digital platform, the John Deere Operations Center, as
well as continued adoption of precision technologies, which unlock
greater value for our customers."
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Deere &
Company
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Third
Quarter
|
|
Year to
Date
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$ in
millions
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2021
|
|
2020
|
|
% Change
|
|
2021
|
|
2020
|
|
% Change
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|
Net sales and
revenues
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$
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11,527
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$
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8,925
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|
29%
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|
$
|
32,697
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|
$
|
25,809
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27%
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Net income
|
|
$
|
1,667
|
|
$
|
811
|
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106%
|
|
$
|
4,680
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$
|
1,993
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135%
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Fully diluted
EPS
|
|
$
|
5.32
|
|
$
|
2.57
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$
|
14.86
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$
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6.30
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Results in the third quarter and the first nine months of fiscal
2021 and 2020 were impacted by special items. Refer to Note 1 of
the financial statements for an overview of the special items. In
addition, the third-quarter 2020 net income was unfavorably
affected by discrete income-tax adjustments.
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Equipment
Operations
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Third
Quarter
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$ in
millions
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2021
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2020
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% Change
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Net sales
|
|
$
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10,413
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$
|
7,859
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32%
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Operating
profit
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$
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1,952
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$
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1,147
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70%
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|
Net income
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|
$
|
1,440
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$
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628
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129%
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For a discussion of net sales and operating profit results, see
the production and precision agriculture, small agriculture and
turf, and construction and forestry sections below.
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Production &
Precision Agriculture
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Third
Quarter
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$ in
millions
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2021
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2020
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% Change
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Net sales
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$
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4,250
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$
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3,289
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29%
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Operating
profit
|
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$
|
906
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$
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605
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50%
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Operating
margin
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21.3%
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18.4%
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Production and precision agriculture sales increased for the
quarter due to higher shipment volumes and price realization.
Operating profit rose primarily due to higher shipment
volumes / sales mix and price realization. These items were
partially offset by higher production costs.
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Small Agriculture
& Turf
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Third
Quarter
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$ in
millions
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2021
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2020
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% Change
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Net sales
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$
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3,147
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$
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2,383
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32%
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Operating
profit
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$
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583
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$
|
337
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73%
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Operating
margin
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18.5%
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14.1%
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Small agriculture and turf sales for the quarter increased due
to higher shipment volumes and price realization. Operating profit
increased primarily due to higher shipment volumes / sales mix and
price realization. These items were partially offset by higher
production costs. Results for the third quarter in fiscal 2021 and
2020 were affected by special items. Refer to Note 1 of the
financial statements.
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Construction &
Forestry
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Third
Quarter
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$ in
millions
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2021
|
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2020
|
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% Change
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Net sales
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$
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3,016
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$
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2,187
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38%
|
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Operating
profit
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$
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463
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$
|
205
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126%
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Operating
margin
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15.4%
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9.4%
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Construction and forestry sales moved higher for the quarter
primarily due to higher shipment volumes and price
realization. Operating profit increased due to higher shipment
volumes / sales mix and price realization, partially offset by
higher production costs.
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Financial
Services
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Third
Quarter
|
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$ in
millions
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2021
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2020
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% Change
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Net income
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$
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227
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$
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183
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24%
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The increase in financial services net income for the quarter
was mainly due to an improvement on operating-lease residual
values, as well as income earned on a higher average portfolio, a
lower provision for credit losses, and more-favorable financing
spreads.
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Industry Outlook
for 2021 (Annual)
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Agriculture &
Turf
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U.S. &
Canada:
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Large Ag
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Up ~ 25%
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Small Ag &
Turf
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Up ~ 10%
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Europe
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Up 10 to 15%
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South America
(Tractors & Combines)
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Up ~ 20%
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Asia
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Up
significantly
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Construction &
Forestry
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U.S. &
Canada:
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Construction
Equipment
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Up 15 to 20%
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Compact Construction
Equipment
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Up 20 to 25%
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Global
Forestry
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Up ~ 15%
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Deere Segment
Outlook (2021)
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Currency
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Price
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$ in
millions
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Net Sales
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Translation
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Realization
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Production &
Precision Ag
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Up 25 to 30%
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+2%
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+8%
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Small Ag &
Turf
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Up ~ 25%
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+3%
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+5%
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Construction &
Forestry
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Up ~ 30%
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+2%
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+5%
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Financial
Services
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Net Income
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$ 850
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Financial Services. Full-year fiscal 2021 results
are expected to benefit from improvement on operating-lease
residual values, a lower provision for credit losses,
more-favorable financing spreads, and income earned on a higher
average portfolio.
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.
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Third
Quarter
|
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Year to
Date
|
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$ in
millions
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2021
|
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2020
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% Change
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2021
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2020
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% Change
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Revenue
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$
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683
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$
|
696
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-2%
|
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$
|
2,015
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$
|
2,115
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-5%
|
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Net income
|
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$
|
186
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|
$
|
146
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27%
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$
|
530
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$
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271
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96%
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Ending portfolio
balance
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$
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41,508
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$
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38,766
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7%
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Results in both periods were higher mainly due to income
earned on a higher average portfolio, improvement on
operating-lease residual values, and more-favorable financing
spreads. Additionally, a lower provision for credit losses
contributed to the improvement for the first nine months of fiscal
2021. Results for the nine-month period last year also included
impairments on lease residual values.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: Statements under "Company Outlook
& Summary," "Industry Outlook for 2021," "Deere Segment Outlook
(2021)," and other forward-looking statements herein that relate to
future events, expectations, and trends involve factors that are
subject to change and 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 businesses are subject to a
number of uncertainties, including certain factors that affect
farmers' confidence and financial condition. These factors
include demand for agricultural products, world grain stocks,
weather conditions, soil conditions, harvest yields, prices for
commodities and livestock, crop and livestock production expenses,
availability of transport for crops, trade restrictions and tariffs
(e.g., China), global trade
agreements, the level of farm product exports (including concerns
about genetically modified organisms), 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 governments, changes in
government farm programs and policies, international reaction to
such programs, changes in and effects of crop insurance programs,
changes in environmental regulations and their impact on farming
practices, animal diseases (e.g., African swine fever) and their
effects on poultry, beef, and pork consumption and prices and on
livestock feed demand, crop pests and diseases, and the impact of
the COVID pandemic on the agricultural industry including demand
for, and production and exports of, agricultural products, and
commodity prices.
The production and precision agriculture business is dependent
on agricultural conditions, and relies in part on hardware and
software, guidance, connectivity and digital solutions, and
automation and machine intelligence. Many factors contribute
to the company's precision agriculture sales and results, including
the impact to customers' profitability and/or sustainability
outcomes; the rate of adoption and use by customers; availability
of technological innovations; speed of research and development;
effectiveness of partnerships with third parties; and the dealer
channel's ability to support and service precision technology
solutions.
Factors affecting the outlook for the company's small
agriculture and turf equipment include agricultural conditions,
consumer confidence, weather conditions, customer profitability,
labor supply, consumer borrowing patterns, consumer purchasing
preferences, housing starts and supply, infrastructure investment,
spending by municipalities and golf courses, and consumable input
costs.
Factors affecting the sales and results of the company's
construction and forestry equipment operations include consumer
spending patterns, real estate and housing prices, the number of
housing starts, interest rates, commodity prices such as oil and
gas, the levels of public and non-residential construction, and
investment in infrastructure. Prices for pulp, paper, lumber
and structural panels affect sales of forestry equipment.
Many of the factors affecting the production and precision
agriculture, small agriculture and turf, and construction and
forestry segments have been and may continue to be impacted by
global economic conditions, including those resulting from the
COVID pandemic and responses to the pandemic taken by governments
and other authorities.
All of the company's businesses and its results are affected by
general economic conditions in the global markets and industries in
which the company operates; customer confidence in general economic
conditions; government spending and taxing; foreign currency
exchange rates and their volatility, especially fluctuations in the
value of the U.S. dollar; interest rates (including the
availability of IBOR reference rates); inflation and deflation
rates; changes in weather patterns; 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; natural disasters; and the spread of major
epidemics (including the COVID pandemic) and government and
industry responses to epidemics, such as travel restrictions and
extended shut down of businesses.
Uncertainties related to the magnitude and duration of the COVID
pandemic may significantly adversely affect the company's business
and outlook. These uncertainties include: the duration and
impact of any resurgence in COVID cases in any country, state, or
region; the emergence, contagiousness, and threat of new and
different strains of coronavirus; the availability, acceptance, and
effects of vaccines; prolonged reduction or closure of the
company's operations, or a delayed recovery in our operations;
additional closures as mandated or otherwise made necessary by
governmental authorities; disruptions in the supply chain and a
prolonged delay in resumption of operations by one or more key
suppliers, or the failure of any key suppliers; the company's
ability to meet commitments to customers on a timely basis as a
result of increased costs and supply challenges; the ability to
receive goods on a timely basis and at anticipated costs; increased
logistics costs; delays in the company's strategic initiatives as a
result of reduced spending on research and development; additional
operating costs due to remote working arrangements, adherence to
social distancing guidelines and other COVID-related challenges;
increased risk of cyber-attacks on network connections used in
remote working arrangements; increased privacy-related risks due to
processing health-related personal information; legal claims
related to personal protective equipment designed, made, or
provided by the company or alleged exposure to COVID on company
premises; absence of employees due to illness; the impact of the
pandemic on the company's customers and dealers, and their delays
in their plans to invest in new equipment; requests by the
company's customers or dealers for payment deferrals and contract
modifications; the impact of disruptions in the global capital
markets and/or declines in the company's financial performance,
outlook or credit ratings, which could impact the company's ability
to obtain funding in the future; and the impact of the pandemic on
demand for our products and services as discussed above. It
remains unclear when a sustained economic recovery could occur and
what a recovery may look like. All of these factors could
materially and adversely affect our business, liquidity, results of
operations, and financial position.
Significant changes in market liquidity conditions, changes in
the company's credit ratings, 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, financing and repayment practices, and the number and
size of customer delinquencies and defaults. A debt crisis in
Europe, Latin America, 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.
The withdrawal of the United
Kingdom from the European Union and the perceptions as to
the impact of the withdrawal may adversely affect business
activity, political stability, and economic conditions in the
United Kingdom, the European
Union, and elsewhere. The economic conditions and outlook
could be further adversely affected by (i) uncertainty regarding
any new or modified trade arrangements between the United Kingdom and the European Union and/or
other countries, (ii) the risk that one or more other European
Union countries could come under increasing pressure to leave the
European Union, or (iii) the risk that the euro as the single
currency of the Eurozone could cease to exist. Any of these
developments, or the perception that any of these developments are
likely to occur, could affect economic growth or business activity
in the United Kingdom or the
European Union, and could result in the relocation of businesses,
cause business interruptions, lead to economic recession or
depression, and impact the stability of the financial markets,
availability of credit, currency exchange rates, interest rates,
financial institutions, and political, financial, and monetary
systems. Any of these developments could affect our
businesses, liquidity, results of operations, and financial
position.
Additional factors that could materially affect the company's
operations, access to capital, expenses, and results include
changes in, uncertainty surrounding, 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; governmental programs,
policies, and tariffs for the benefit of certain industries or
sectors; sanctions in particular jurisdictions; retaliatory actions
to such changes in trade, banking, monetary, and fiscal policies;
actions by central banks; actions by financial and securities
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 to GPS radio frequency bands or their permitted
uses; changes in labor and immigration regulations; changes to
accounting standards; changes in tax rates, estimates, laws, and
regulations and company actions related thereto; changes to and
compliance with privacy regulations; changes to and compliance with
economic sanctions and export controls laws and regulations;
compliance with U.S. and foreign laws when expanding to new markets
and otherwise; and actions by other regulatory bodies.
Other factors that could materially affect the company's results
include production, design, and technological innovations and
difficulties, including capacity and supply constraints and prices;
the loss of or challenges to intellectual property rights, whether
through theft, infringement, counterfeiting, or otherwise; 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 customers, dealers, suppliers, or the
company to comply with laws, regulations, and company policy
pertaining to employment, human rights, health, safety, the
environment, sanctions, export controls, anti-corruption, privacy
and data protection, 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 products; the success of
new product initiatives or business strategies; changes in customer
product preferences and sales mix; 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; changes
in demand and pricing for used equipment and resulting impacts on
lease residual values; labor relations and contracts; changes in
the ability to attract, develop, engage, and retain qualified
personnel; acquisitions and divestitures of businesses;
greater-than-anticipated transaction costs; the integration of new
businesses; the failure or delay in closing or realizing
anticipated benefits of acquisitions, joint ventures, or
divestitures; the inability to deliver precision technology and
agricultural solutions to customers; the implementation of the
smart industrial operating model and other organizational changes;
the failure to realize anticipated savings or benefits of cost
reduction, productivity, or efficiency efforts; difficulties
related to the conversion and implementation of enterprise resource
planning systems; security breaches, cybersecurity attacks,
technology failures, and other disruptions to the company's and
suppliers' information technology infrastructure; changes in
company-declared dividends and common stock issuances and
repurchases; changes in the level and funding of employee
retirement benefits; changes in market values of investment assets,
compensation, retirement, discount, and mortality rates which
impact retirement benefit costs; and significant changes in health
care costs.
The liquidity and ongoing profitability of John Deere Capital
Corporation and the company's other financial services subsidiaries
depend largely on timely access to capital in order to meet future
cash flow requirements, and to fund operations, costs, and
purchases of the company's products. If general economic
conditions deteriorate or capital markets become more volatile,
including as a result of the COVID pandemic, 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 forward-looking statements are 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 forward-looking statements, whether as a
result of new developments or otherwise. Further information
concerning the company and its businesses, including factors that
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).
DEERE &
COMPANY THIRD QUARTER 2021 PRESS RELEASE
(In millions of dollars) Unaudited
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
August 1
|
|
August 2
|
|
%
|
|
August 1
|
|
August 2
|
|
%
|
|
|
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
Net sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production &
precision ag net sales
|
|
$
|
4,250
|
|
$
|
3,289
|
|
+29
|
|
$
|
11,848
|
|
$
|
9,161
|
|
+29
|
|
Small ag & turf net
sales
|
|
|
3,147
|
|
|
2,383
|
|
+32
|
|
|
9,051
|
|
|
6,966
|
|
+30
|
|
Construction &
forestry net sales
|
|
|
3,016
|
|
|
2,187
|
|
+38
|
|
|
8,562
|
|
|
6,485
|
|
+32
|
|
Financial services
revenues
|
|
|
902
|
|
|
892
|
|
+1
|
|
|
2,679
|
|
|
2,699
|
|
-1
|
|
Other
revenues
|
|
|
212
|
|
|
174
|
|
+22
|
|
|
557
|
|
|
498
|
|
+12
|
|
Total net sales and
revenues
|
|
$
|
11,527
|
|
$
|
8,925
|
|
+29
|
|
$
|
32,697
|
|
$
|
25,809
|
|
+27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit:
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production &
precision ag
|
|
$
|
906
|
|
$
|
605
|
|
+50
|
|
$
|
2,557
|
|
$
|
1,391
|
|
+84
|
|
Small ag &
turf
|
|
|
583
|
|
|
337
|
|
+73
|
|
|
1,699
|
|
|
718
|
|
+137
|
|
Construction &
forestry
|
|
|
463
|
|
|
205
|
|
+126
|
|
|
1,220
|
|
|
394
|
|
+210
|
|
Financial
services
|
|
|
291
|
|
|
243
|
|
+20
|
|
|
844
|
|
|
498
|
|
+69
|
|
Total operating
profit
|
|
|
2,243
|
|
|
1,390
|
|
+61
|
|
|
6,320
|
|
|
3,001
|
|
+111
|
|
Reconciling items
**
|
|
|
(85)
|
|
|
(122)
|
|
-30
|
|
|
(312)
|
|
|
(256)
|
|
+22
|
|
Income
taxes
|
|
|
(491)
|
|
|
(457)
|
|
+7
|
|
|
(1,328)
|
|
|
(752)
|
|
+77
|
|
Net income
attributable to Deere & Company
|
|
$
|
1,667
|
|
$
|
811
|
|
+106
|
|
$
|
4,680
|
|
$
|
1,993
|
|
+135
|
|
|
* 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, pension and
postretirement benefit costs excluding the service cost component,
and net income attributable to noncontrolling interests.
|
|
DEERE &
COMPANY STATEMENT OF CONSOLIDATED INCOME
For the Three Months Ended August 1, 2021 and August
2, 2020
(In millions of dollars and shares except per share amounts)
Unaudited
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Net Sales and
Revenues
|
|
|
|
|
|
|
Net sales
|
|
$
|
10,413
|
|
$
|
7,859
|
Finance and interest
income
|
|
|
825
|
|
|
838
|
Other
income
|
|
|
289
|
|
|
228
|
Total
|
|
|
11,527
|
|
|
8,925
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
Cost of
sales
|
|
|
7,574
|
|
|
5,835
|
Research and
development expenses
|
|
|
394
|
|
|
370
|
Selling,
administrative and general expenses
|
|
|
841
|
|
|
752
|
Interest
expense
|
|
|
244
|
|
|
290
|
Other operating
expenses
|
|
|
324
|
|
|
408
|
Total
|
|
|
9,377
|
|
|
7,655
|
|
|
|
|
|
|
|
Income of
Consolidated Group before Income Taxes
|
|
|
2,150
|
|
|
1,270
|
Provision for income
taxes
|
|
|
491
|
|
|
457
|
|
|
|
|
|
|
|
Income of
Consolidated Group
|
|
|
1,659
|
|
|
813
|
Equity in income
(loss) of unconsolidated affiliates
|
|
|
8
|
|
|
(2)
|
|
|
|
|
|
|
|
Net
Income
|
|
|
1,667
|
|
|
811
|
Less: Net income
attributable to noncontrolling interests
|
|
|
|
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
1,667
|
|
$
|
811
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Basic
|
|
$
|
5.36
|
|
$
|
2.59
|
Diluted
|
|
$
|
5.32
|
|
$
|
2.57
|
|
|
|
|
|
|
|
Average Shares
Outstanding
|
|
|
|
|
|
|
Basic
|
|
|
311.0
|
|
|
313.0
|
Diluted
|
|
|
313.4
|
|
|
315.8
|
|
See Condensed Notes
to Interim Consolidated Financial Statements.
|
DEERE &
COMPANY STATEMENT OF CONSOLIDATED INCOME
For the Nine Months Ended August 1, 2021 and August
2, 2020
(In millions of dollars and shares except per share amounts)
Unaudited
|
|
|
2021
|
|
2020
|
Net Sales and
Revenues
|
|
|
|
|
|
|
Net sales
|
|
$
|
29,461
|
|
$
|
22,612
|
Finance and interest
income
|
|
|
2,468
|
|
|
2,584
|
Other
income
|
|
|
768
|
|
|
613
|
Total
|
|
|
32,697
|
|
|
25,809
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
Cost of
sales
|
|
|
21,307
|
|
|
17,206
|
Research and
development expenses
|
|
|
1,137
|
|
|
1,201
|
Selling,
administrative and general expenses
|
|
|
2,448
|
|
|
2,467
|
Interest
expense
|
|
|
783
|
|
|
969
|
Other operating
expenses
|
|
|
1,033
|
|
|
1,199
|
Total
|
|
|
26,708
|
|
|
23,042
|
|
|
|
|
|
|
|
Income of
Consolidated Group before Income Taxes
|
|
|
5,989
|
|
|
2,767
|
Provision for income
taxes
|
|
|
1,328
|
|
|
752
|
|
|
|
|
|
|
|
Income of
Consolidated Group
|
|
|
4,661
|
|
|
2,015
|
Equity in income
(loss) of unconsolidated affiliates
|
|
|
21
|
|
|
(20)
|
|
|
|
|
|
|
|
Net
Income
|
|
|
4,682
|
|
|
1,995
|
Less: Net income
attributable to noncontrolling interests
|
|
|
2
|
|
|
2
|
Net Income
Attributable to Deere & Company
|
|
$
|
4,680
|
|
$
|
1,993
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Basic
|
|
$
|
14.98
|
|
$
|
6.36
|
Diluted
|
|
$
|
14.86
|
|
$
|
6.30
|
|
|
|
|
|
|
|
Average Shares
Outstanding
|
|
|
|
|
|
|
Basic
|
|
|
312.4
|
|
|
313.3
|
Diluted
|
|
|
314.9
|
|
|
316.4
|
|
See Condensed Notes
to Interim Consolidated Financial Statements.
|
DEERE &
COMPANY CONDENSED CONSOLIDATED BALANCE SHEET
(In millions of dollars) Unaudited
|
|
|
August 1
|
|
November 1
|
|
August 2
|
|
|
2021
|
|
2020
|
|
2020
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7,519
|
|
$
|
7,066
|
|
$
|
8,190
|
Marketable
securities
|
|
|
688
|
|
|
641
|
|
|
640
|
Receivables from
unconsolidated affiliates
|
|
|
29
|
|
|
31
|
|
|
26
|
Trade accounts and
notes receivable - net
|
|
|
5,268
|
|
|
4,171
|
|
|
5,473
|
Financing receivables
- net
|
|
|
31,449
|
|
|
29,750
|
|
|
27,814
|
Financing receivables
securitized - net
|
|
|
5,401
|
|
|
4,703
|
|
|
5,469
|
Other
receivables
|
|
|
1,673
|
|
|
1,220
|
|
|
1,217
|
Equipment on
operating leases - net
|
|
|
6,982
|
|
|
7,298
|
|
|
7,158
|
Inventories
|
|
|
6,410
|
|
|
4,999
|
|
|
5,650
|
Property and
equipment - net
|
|
|
5,649
|
|
|
5,817
|
|
|
5,754
|
Investments in
unconsolidated affiliates
|
|
|
188
|
|
|
193
|
|
|
199
|
Goodwill
|
|
|
3,148
|
|
|
3,081
|
|
|
2,984
|
Other intangible
assets - net
|
|
|
1,267
|
|
|
1,327
|
|
|
1,301
|
Retirement
benefits
|
|
|
990
|
|
|
863
|
|
|
1,031
|
Deferred income
taxes
|
|
|
1,767
|
|
|
1,499
|
|
|
1,534
|
Other
assets
|
|
|
2,260
|
|
|
2,432
|
|
|
2,824
|
Total
Assets
|
|
$
|
80,688
|
|
$
|
75,091
|
|
$
|
77,264
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
10,404
|
|
$
|
8,582
|
|
$
|
9,075
|
Short-term
securitization borrowings
|
|
|
5,277
|
|
|
4,682
|
|
|
5,361
|
Payables to
unconsolidated affiliates
|
|
|
116
|
|
|
105
|
|
|
80
|
Accounts payable and
accrued expenses
|
|
|
11,091
|
|
|
10,112
|
|
|
9,565
|
Deferred income
taxes
|
|
|
515
|
|
|
519
|
|
|
479
|
Long-term
borrowings
|
|
|
32,280
|
|
|
32,734
|
|
|
34,037
|
Retirement benefits
and other liabilities
|
|
|
5,272
|
|
|
5,413
|
|
|
5,776
|
Total
liabilities
|
|
|
64,955
|
|
|
62,147
|
|
|
64,373
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
Total Deere &
Company stockholders' equity
|
|
|
15,731
|
|
|
12,937
|
|
|
12,888
|
Noncontrolling
interests
|
|
|
2
|
|
|
7
|
|
|
3
|
Total stockholders'
equity
|
|
|
15,733
|
|
|
12,944
|
|
|
12,891
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
80,688
|
|
$
|
75,091
|
|
$
|
77,264
|
|
See Condensed Notes
to Interim Consolidated Financial Statements.
|
DEERE &
COMPANY STATEMENT OF CONSOLIDATED CASH FLOWS
For the Nine Months Ended August 1, 2021 and August
2, 2020
(In millions of dollars) Unaudited
|
|
|
2021
|
|
2020
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
Net income
|
|
$
|
4,682
|
|
$
|
1,995
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Provision (credit) for
credit losses
|
|
|
(17)
|
|
|
123
|
Provision for
depreciation and amortization
|
|
|
1,569
|
|
|
1,614
|
Impairment
charges
|
|
|
50
|
|
|
147
|
Share-based
compensation expense
|
|
|
64
|
|
|
63
|
Undistributed earnings
of unconsolidated affiliates
|
|
|
4
|
|
|
(5)
|
Credit for deferred
income taxes
|
|
|
(271)
|
|
|
(160)
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
Trade, notes, and
financing receivables related to sales
|
|
|
(444)
|
|
|
626
|
Inventories
|
|
|
(1,817)
|
|
|
(1)
|
Accounts payable and
accrued expenses
|
|
|
742
|
|
|
(572)
|
Accrued income taxes
payable/receivable
|
|
|
34
|
|
|
4
|
Retirement
benefits
|
|
|
13
|
|
|
88
|
Other
|
|
|
(295)
|
|
|
135
|
Net cash provided by
operating activities
|
|
|
4,314
|
|
|
4,057
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
Collections of
receivables (excluding receivables related to sales)
|
|
|
14,480
|
|
|
13,237
|
Proceeds from
maturities and sales of marketable securities
|
|
|
82
|
|
|
70
|
Proceeds from sales
of equipment on operating leases
|
|
|
1,510
|
|
|
1,310
|
Cost of receivables
acquired (excluding receivables related to sales)
|
|
|
(17,161)
|
|
|
(14,449)
|
Acquisitions of
businesses, net of cash acquired
|
|
|
(19)
|
|
|
|
Purchases of
marketable securities
|
|
|
(115)
|
|
|
(91)
|
Purchases of property
and equipment
|
|
|
(492)
|
|
|
(594)
|
Cost of equipment on
operating leases acquired
|
|
|
(1,210)
|
|
|
(1,312)
|
Collateral on
derivatives – net
|
|
|
(189)
|
|
|
324
|
Other
|
|
|
12
|
|
|
(12)
|
Net cash used for
investing activities
|
|
|
(3,102)
|
|
|
(1,517)
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
Increase in total
short-term borrowings
|
|
|
929
|
|
|
170
|
Proceeds from
long-term borrowings
|
|
|
5,877
|
|
|
8,331
|
Payments of long-term
borrowings
|
|
|
(5,172)
|
|
|
(5,797)
|
Proceeds from
issuance of common stock
|
|
|
136
|
|
|
111
|
Repurchases of common
stock
|
|
|
(1,780)
|
|
|
(263)
|
Dividends
paid
|
|
|
(761)
|
|
|
(718)
|
Other
|
|
|
(80)
|
|
|
(110)
|
Net cash provided by
(used for) financing activities
|
|
|
(851)
|
|
|
1,724
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents, and Restricted
Cash
|
|
|
106
|
|
|
80
|
|
|
|
|
|
|
|
Net Increase in
Cash, Cash Equivalents, and Restricted Cash
|
|
|
467
|
|
|
4,344
|
Cash, Cash
Equivalents, and Restricted Cash at Beginning of
Period
|
|
|
7,172
|
|
|
3,956
|
Cash, Cash
Equivalents, and Restricted Cash at End of Period
|
|
$
|
7,639
|
|
$
|
8,300
|
|
See Condensed Notes
to Interim Consolidated Financial Statements.
|
|
|
DEERE &
COMPANY
|
Condensed Notes to
Interim Consolidated Financial Statements
|
(In millions of
dollars and shares except per share amounts) Unaudited
|
|
(1)
|
2021 Special
Items In the third quarter of 2021, the company sold a
closed factory that previously produced small agriculture equipment
in China, resulting in a $27 million pretax gain. During the first
quarter of 2021, the fixed assets in an asphalt plant factory in
Germany were impaired by $38 million, pretax and after-tax. The
company also continued to assess its manufacturing locations,
resulting in additional long-lived asset impairments of $12 million
pretax. The impairments were the result of a decline in forecasted
financial performance that indicated it was probable future cash
flows would not cover the carrying amount of the net assets. These
impairments were offset by a favorable indirect tax ruling in
Brazil of $58 million pretax.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
August 1, 2021
|
|
Expense
(benefit):
|
|
Production &
Precision Ag
|
|
Small Ag
& Turf
|
|
Construction
& Forestry
|
|
Total
|
|
Long-lived asset
impairments – Cost of sales
|
|
$
|
5
|
|
$
|
3
|
|
$
|
42
|
|
$
|
50
|
|
Brazil indirect tax –
Cost of sales
|
|
|
(53)
|
|
|
|
|
|
(5)
|
|
|
(58)
|
|
Gain on sale – Other
income
|
|
|
|
|
|
(27)
|
|
|
|
|
|
(27)
|
|
Total
expense (benefit)
|
|
$
|
(48)
|
|
$
|
(24)
|
|
$
|
37
|
|
$
|
(35)
|
|
2020 Special
Items In the third quarter of 2020, the company closed a
factory producing small agricultural equipment in China. In
connection with this closure, a non-cash impairment of other
receivables, property, and intangible assets of $9 million pretax
and after-tax was recorded and $4 million pretax and after-tax for
severance payments. In the second quarter of 2020, the company
recorded non-cash asset impairments of $62 million pretax and
after-tax of fixed assets of an asphalt plant factory in Germany,
$32 million pretax of equipment on operating leases and
matured operating lease inventory, and $20 million pretax and
after-tax of a minority investment in a construction equipment
company headquartered in South Africa.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
August 2, 2020
|
|
Expense:
|
|
Small Ag
& Turf
|
|
Construction
& Forestry
|
|
Financial
Services
|
|
Total
|
|
Factory closure – Cost
of sales
|
|
$
|
13
|
|
|
|
|
|
|
|
$
|
13
|
|
Long-lived asset
impairments – Cost of sales
|
|
|
|
|
$
|
62
|
|
|
|
|
|
62
|
|
Investments in
unconsolidated affiliates impairment – Equity in loss of
unconsolidated affiliate
|
|
|
|
|
|
20
|
|
|
|
|
|
20
|
|
Equipment on operating
leases & matured operating lease inventory impairments – Other
operating expenses
|
|
|
|
|
|
|
|
$
|
32
|
|
|
32
|
|
Total
expense
|
|
$
|
13
|
|
$
|
82
|
|
$
|
32
|
|
$
|
127
|
|
2020
Disposition In the third quarter of 2020, the company
reached a definitive agreement to sell its German walk-behind lawn
mower business. This transaction closed in the fourth quarter of
2020. A non-cash impairment of $24 million pretax and after-tax was
recorded in "Other operating expenses" to write the operations down
to realizable value. This activity was included in the company's
small agriculture and turf segment.
|
2020
Employee-Separation Program During the first quarter of
2020, the company implemented a voluntary employee-separation
program with total pretax expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
August 2, 2020
|
|
|
|
Production &
Precision Ag
|
|
Small Ag
& Turf
|
|
Construction
& Forestry
|
|
Financial
Services
|
|
Total
|
|
Cost of
sales
|
|
$
|
21
|
|
$
|
11
|
|
$
|
9
|
|
|
|
|
$
|
41
|
|
Research and
development expenses
|
|
|
8
|
|
|
7
|
|
|
4
|
|
|
|
|
|
19
|
|
Selling,
administrative and general expenses
|
|
|
19
|
|
|
19
|
|
|
14
|
|
$
|
3
|
|
|
55
|
|
Total operating profit
impact
|
|
$
|
48
|
|
$
|
37
|
|
$
|
27
|
|
$
|
3
|
|
|
115
|
|
Other operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23
|
|
Total
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
138
|
|
(2)
|
Prior to November 2,
2020, the operating results of the Wirtgen Group (Wirtgen) were
incorporated into the company's consolidated financial statements
using a one-month lag period. In the first quarter of 2021, the
reporting lag was eliminated resulting in one additional month of
Wirtgen activity in the first quarter and the year-to-date period.
The effect was an increase to "Net sales" of $270 million, which
the company considers immaterial to construction and forestry's
annual net sales. Prior period results were not
restated.
|
|
|
(3)
|
Dividends declared
and paid on a per share basis were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
August 1
|
|
August 2
|
|
August 1
|
|
August 2
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Dividends
declared
|
|
$
|
.90
|
|
$
|
.76
|
|
$
|
2.56
|
|
$
|
2.28
|
|
Dividends
paid
|
|
$
|
.90
|
|
$
|
.76
|
|
$
|
2.42
|
|
$
|
2.28
|
|
(4)
|
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.
|
|
|
(5)
|
The consolidated
financial statements represent the consolidation of all of Deere
& Company's subsidiaries. In the supplemental consolidating
data in Note 6 to the financial statements, the "Equipment
Operations" represents the enterprise without "Financial Services,"
which include the company's production and precision agriculture
operations, small agriculture and turf operations, and construction
and forestry operations, and other corporate assets, liabilities,
revenues, and expenses not reflected within "Financial
Services."
|
DEERE &
COMPANY (6) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended August 1, 2021 and August
2, 2020
(In millions of dollars) Unaudited
|
|
|
EQUIPMENT
|
|
FINANCIAL
|
|
|
|
|
|
|
|
|
OPERATIONS1
|
|
SERVICES
|
|
ELIMINATIONS
|
|
CONSOLIDATED
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
Net Sales and
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
10,413
|
|
$
|
7,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,413
|
|
$
|
7,859
|
|
|
Finance and interest
income
|
|
|
33
|
|
|
25
|
|
$
|
867
|
|
$
|
878
|
|
$
|
(75)
|
|
$
|
(65)
|
|
|
825
|
|
|
838
|
2
|
|
Other
income
|
|
|
263
|
|
|
206
|
|
|
96
|
|
|
73
|
|
|
(70)
|
|
|
(51)
|
|
|
289
|
|
|
228
|
3
|
|
Total
|
|
|
10,709
|
|
|
8,090
|
|
|
963
|
|
|
951
|
|
|
(145)
|
|
|
(116)
|
|
|
11,527
|
|
|
8,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
7,574
|
|
|
5,836
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
7,574
|
|
|
5,835
|
4
|
|
Research and
development expenses
|
|
|
394
|
|
|
370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
394
|
|
|
370
|
|
|
Selling,
administrative and general expenses
|
|
|
702
|
|
|
616
|
|
|
141
|
|
|
137
|
|
|
(2)
|
|
|
(1)
|
|
|
841
|
|
|
752
|
4
|
|
Interest
expense
|
|
|
92
|
|
|
91
|
|
|
169
|
|
|
206
|
|
|
(17)
|
|
|
(7)
|
|
|
244
|
|
|
290
|
5
|
|
Interest compensation
to Financial Services
|
|
|
58
|
|
|
58
|
|
|
|
|
|
|
|
|
(58)
|
|
|
(58)
|
|
|
|
|
|
|
5
|
|
Other operating
expenses
|
|
|
32
|
|
|
94
|
|
|
360
|
|
|
363
|
|
|
(68)
|
|
|
(49)
|
|
|
324
|
|
|
408
|
6
|
|
Total
|
|
|
8,852
|
|
|
7,065
|
|
|
670
|
|
|
706
|
|
|
(145)
|
|
|
(116)
|
|
|
9,377
|
|
|
7,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
Income Taxes
|
|
|
1,857
|
|
|
1,025
|
|
|
293
|
|
|
245
|
|
|
|
|
|
|
|
|
2,150
|
|
|
1,270
|
|
|
Provision for income
taxes
|
|
|
425
|
|
|
395
|
|
|
66
|
|
|
62
|
|
|
|
|
|
|
|
|
491
|
|
|
457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after
Income Taxes
|
|
|
1,432
|
|
|
630
|
|
|
227
|
|
|
183
|
|
|
|
|
|
|
|
|
1,659
|
|
|
813
|
|
|
Equity in income
(loss) of unconsolidated affiliates
|
|
|
8
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
1,440
|
|
|
628
|
|
|
227
|
|
|
183
|
|
|
|
|
|
|
|
|
1,667
|
|
|
811
|
|
|
Less: Net income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
1,440
|
|
$
|
628
|
|
$
|
227
|
|
$
|
183
|
|
|
|
|
|
|
|
$
|
1,667
|
|
$
|
811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
1
|
The Equipment
Operations represents the enterprise without Financial Services.
The Equipment Operations includes the company's production and
precision agriculture operations, small agriculture and turf
operations, construction and forestry operations, and other
corporate assets, liabilities, revenues, and expenses not reflected
within Financial Services.
|
2
|
Elimination of
Financial Services' interest income earned from Equipment
Operations.
|
3
|
Elimination of
Equipment Operations' margin from inventory transferred to
equipment on operating leases.
|
4
|
Elimination of
intercompany service fees.
|
5
|
Elimination of
Equipment Operations' interest expense to Financial
Services.
|
6
|
Elimination of
Financial Services' lease depreciation expense related to inventory
transferred to equipment on operating leases.
|
DEERE &
COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF INCOME
For the Nine Months Ended August 1, 2021 and August
2, 2020
(In millions of dollars) Unaudited
|
|
|
EQUIPMENT
|
|
FINANCIAL
|
|
|
|
|
|
|
|
|
OPERATIONS1
|
|
SERVICES
|
|
ELIMINATIONS
|
|
CONSOLIDATED
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
Net Sales and
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
29,461
|
|
$
|
22,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
29,461
|
|
$
|
22,612
|
|
|
Finance and interest
income
|
|
|
95
|
|
|
75
|
|
$
|
2,582
|
|
$
|
2,720
|
|
$
|
(209)
|
|
$
|
(211)
|
|
|
2,468
|
|
|
2,584
|
2
|
|
Other
income
|
|
|
712
|
|
|
597
|
|
|
269
|
|
|
196
|
|
|
(213)
|
|
|
(180)
|
|
|
768
|
|
|
613
|
3
|
|
Total
|
|
|
30,268
|
|
|
23,284
|
|
|
2,851
|
|
|
2,916
|
|
|
(422)
|
|
|
(391)
|
|
|
32,697
|
|
|
25,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
21,309
|
|
|
17,208
|
|
|
|
|
|
|
|
|
(2)
|
|
|
(2)
|
|
|
21,307
|
|
|
17,206
|
4
|
|
Research and
development expenses
|
|
|
1,137
|
|
|
1,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,137
|
|
|
1,201
|
|
|
Selling,
administrative and general expenses
|
|
|
2,089
|
|
|
1,989
|
|
|
365
|
|
|
483
|
|
|
(6)
|
|
|
(5)
|
|
|
2,448
|
|
|
2,467
|
4
|
|
Interest
expense
|
|
|
287
|
|
|
237
|
|
|
539
|
|
|
747
|
|
|
(43)
|
|
|
(15)
|
|
|
783
|
|
|
969
|
5
|
|
Interest compensation
to Financial Services
|
|
|
166
|
|
|
195
|
|
|
|
|
|
|
|
|
(166)
|
|
|
(195)
|
|
|
|
|
|
|
5
|
|
Other operating
expenses
|
|
|
140
|
|
|
186
|
|
|
1,098
|
|
|
1,187
|
|
|
(205)
|
|
|
(174)
|
|
|
1,033
|
|
|
1,199
|
6
|
|
Total
|
|
|
25,128
|
|
|
21,016
|
|
|
2,002
|
|
|
2,417
|
|
|
(422)
|
|
|
(391)
|
|
|
26,708
|
|
|
23,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
Income Taxes
|
|
|
5,140
|
|
|
2,268
|
|
|
849
|
|
|
499
|
|
|
|
|
|
|
|
|
5,989
|
|
|
2,767
|
|
|
Provision for income
taxes
|
|
|
1,130
|
|
|
632
|
|
|
198
|
|
|
120
|
|
|
|
|
|
|
|
|
1,328
|
|
|
752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after
Income Taxes
|
|
|
4,010
|
|
|
1,636
|
|
|
651
|
|
|
379
|
|
|
|
|
|
|
|
|
4,661
|
|
|
2,015
|
|
|
Equity in income
(loss) of unconsolidated affiliates
|
|
|
18
|
|
|
(22)
|
|
|
3
|
|
|
2
|
|
|
|
|
|
|
|
|
21
|
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
4,028
|
|
|
1,614
|
|
|
654
|
|
|
381
|
|
|
|
|
|
|
|
|
4,682
|
|
|
1,995
|
|
|
Less: Net income
attributable to noncontrolling interests
|
|
|
2
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
2
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
4,026
|
|
$
|
1,612
|
|
$
|
654
|
|
$
|
381
|
|
|
|
|
|
|
|
$
|
4,680
|
|
$
|
1,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
1
|
The Equipment
Operations represents the enterprise without Financial Services.
The Equipment Operations includes the company's production and
precision agriculture operations, small agriculture and turf
operations, construction and forestry operations, and other
corporate assets, liabilities, revenues, and expenses not reflected
within Financial Services.
|
2
|
Elimination of
Financial Services' interest income earned from Equipment
Operations.
|
3
|
Elimination of
Equipment Operations' margin from inventory transferred to
equipment on operating leases.
|
4
|
Elimination of
intercompany service fees.
|
5
|
Elimination of
Equipment Operations' interest expense to Financial
Services.
|
6
|
Elimination of
Financial Services' lease depreciation expense related to inventory
transferred to equipment on operating leases.
|
DEERE &
COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEET
(In millions of dollars) Unaudited
|
|
|
EQUIPMENT
|
|
FINANCIAL
|
|
|
|
|
|
|
|
|
OPERATIONS1
|
|
SERVICES
|
|
ELIMINATIONS
|
|
CONSOLIDATED
|
|
|
|
|
Aug 1
|
|
Nov 1
|
|
Aug 2
|
|
Aug 1
|
|
Nov 1
|
|
Aug 2
|
|
Aug 1
|
|
Nov 1
|
|
Aug 2
|
|
Aug 1
|
|
Nov 1
|
|
Aug 2
|
|
|
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
|
2020
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,638
|
|
$
|
6,145
|
|
$
|
7,440
|
|
$
|
881
|
|
$
|
921
|
|
$
|
750
|
|
|
|
|
|
|
|
|
|
|
$
|
7,519
|
|
$
|
7,066
|
|
$
|
8,190
|
|
|
Marketable
securities
|
|
|
3
|
|
|
7
|
|
|
8
|
|
|
685
|
|
|
634
|
|
|
632
|
|
|
|
|
|
|
|
|
|
|
|
688
|
|
|
641
|
|
|
640
|
|
|
Receivables from
unconsolidated affiliates
|
|
|
5,942
|
|
|
5,290
|
|
|
3,619
|
|
|
|
|
|
|
|
|
|
|
$
|
(5,913)
|
|
$
|
(5,259)
|
|
$
|
(3,593)
|
|
|
29
|
|
|
31
|
|
|
26
|
7
|
|
Trade accounts and
notes receivable - net
|
|
|
1,127
|
|
|
1,013
|
|
|
1,251
|
|
|
5,319
|
|
|
4,238
|
|
|
5,595
|
|
|
(1,178)
|
|
|
(1,080)
|
|
|
(1,373)
|
|
|
5,268
|
|
|
4,171
|
|
|
5,473
|
8
|
|
Financing receivables
- net
|
|
|
89
|
|
|
106
|
|
|
111
|
|
|
31,360
|
|
|
29,644
|
|
|
27,703
|
|
|
|
|
|
|
|
|
|
|
|
31,449
|
|
|
29,750
|
|
|
27,814
|
|
|
Financing receivables
securitized - net
|
|
|
13
|
|
|
26
|
|
|
37
|
|
|
5,388
|
|
|
4,677
|
|
|
5,432
|
|
|
|
|
|
|
|
|
|
|
|
5,401
|
|
|
4,703
|
|
|
5,469
|
|
|
Other
receivables
|
|
|
1,516
|
|
|
1,117
|
|
|
1,083
|
|
|
171
|
|
|
151
|
|
|
162
|
|
|
(14)
|
|
|
(48)
|
|
|
(28)
|
|
|
1,673
|
|
|
1,220
|
|
|
1,217
|
8
|
|
Equipment on
operating leases - net
|
|
|
|
|
|
|
|
|
|
|
|
6,982
|
|
|
7,298
|
|
|
7,158
|
|
|
|
|
|
|
|
|
|
|
|
6,982
|
|
|
7,298
|
|
|
7,158
|
|
|
Inventories
|
|
|
6,410
|
|
|
4,999
|
|
|
5,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,410
|
|
|
4,999
|
|
|
5,650
|
|
|
Property and
equipment - net
|
|
|
5,612
|
|
|
5,778
|
|
|
5,711
|
|
|
37
|
|
|
39
|
|
|
43
|
|
|
|
|
|
|
|
|
|
|
|
5,649
|
|
|
5,817
|
|
|
5,754
|
|
|
Investments in
unconsolidated affiliates
|
|
|
166
|
|
|
174
|
|
|
180
|
|
|
22
|
|
|
19
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
188
|
|
|
193
|
|
|
199
|
|
|
Goodwill
|
|
|
3,148
|
|
|
3,081
|
|
|
2,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,148
|
|
|
3,081
|
|
|
2,984
|
|
|
Other intangible
assets - net
|
|
|
1,267
|
|
|
1,327
|
|
|
1,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,267
|
|
|
1,327
|
|
|
1,301
|
|
|
Retirement
benefits
|
|
|
986
|
|
|
859
|
|
|
972
|
|
|
63
|
|
|
59
|
|
|
59
|
|
|
(59)
|
|
|
(55)
|
|
|
|
|
|
990
|
|
|
863
|
|
|
1,031
|
9
|
|
Deferred income
taxes
|
|
|
1,959
|
|
|
1,763
|
|
|
1,865
|
|
|
59
|
|
|
45
|
|
|
56
|
|
|
(251)
|
|
|
(309)
|
|
|
(387)
|
|
|
1,767
|
|
|
1,499
|
|
|
1,534
|
10
|
|
Other
assets
|
|
|
1,581
|
|
|
1,439
|
|
|
1,566
|
|
|
680
|
|
|
994
|
|
|
1,260
|
|
|
(1)
|
|
|
(1)
|
|
|
(2)
|
|
|
2,260
|
|
|
2,432
|
|
|
2,824
|
|
|
Total
Assets
|
|
$
|
36,457
|
|
$
|
33,124
|
|
$
|
33,778
|
|
$
|
51,647
|
|
$
|
48,719
|
|
$
|
48,869
|
|
$
|
(7,416)
|
|
$
|
(6,752)
|
|
$
|
(5,383)
|
|
$
|
80,688
|
|
$
|
75,091
|
|
$
|
77,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
1,376
|
|
$
|
292
|
|
$
|
853
|
|
$
|
9,028
|
|
$
|
8,290
|
|
$
|
8,222
|
|
|
|
|
|
|
|
|
|
|
$
|
10,404
|
|
$
|
8,582
|
|
$
|
9,075
|
|
|
Short-term
securitization borrowings
|
|
|
12
|
|
|
26
|
|
|
37
|
|
|
5,265
|
|
|
4,656
|
|
|
5,324
|
|
|
|
|
|
|
|
|
|
|
|
5,277
|
|
|
4,682
|
|
|
5,361
|
|
|
Payables to
unconsolidated affiliates
|
|
|
116
|
|
|
104
|
|
|
80
|
|
|
5,913
|
|
|
5,260
|
|
|
3,593
|
|
$
|
(5,913)
|
|
$
|
(5,259)
|
|
$
|
(3,593)
|
|
|
116
|
|
|
105
|
|
|
80
|
7
|
|
Accounts payable and
accrued expenses
|
|
|
10,368
|
|
|
9,114
|
|
|
8,834
|
|
|
1,916
|
|
|
2,127
|
|
|
2,134
|
|
|
(1,193)
|
|
|
(1,129)
|
|
|
(1,403)
|
|
|
11,091
|
|
|
10,112
|
|
|
9,565
|
8
|
|
Deferred income
taxes
|
|
|
371
|
|
|
385
|
|
|
398
|
|
|
395
|
|
|
443
|
|
|
468
|
|
|
(251)
|
|
|
(309)
|
|
|
(387)
|
|
|
515
|
|
|
519
|
|
|
479
|
10
|
|
Long-term
borrowings
|
|
|
8,982
|
|
|
10,124
|
|
|
10,217
|
|
|
23,298
|
|
|
22,610
|
|
|
23,820
|
|
|
|
|
|
|
|
|
|
|
|
32,280
|
|
|
32,734
|
|
|
34,037
|
|
|
Retirement benefits
and other liabilities
|
|
|
5,219
|
|
|
5,366
|
|
|
5,671
|
|
|
112
|
|
|
102
|
|
|
105
|
|
|
(59)
|
|
|
(55)
|
|
|
|
|
|
5,272
|
|
|
5,413
|
|
|
5,776
|
9
|
|
Total
liabilities
|
|
|
26,444
|
|
|
25,411
|
|
|
26,090
|
|
|
45,927
|
|
|
43,488
|
|
|
43,666
|
|
|
(7,416)
|
|
|
(6,752)
|
|
|
(5,383)
|
|
|
64,955
|
|
|
62,147
|
|
|
64,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Deere & Company stockholders' equity
|
|
|
15,731
|
|
|
12,937
|
|
|
12,888
|
|
|
5,720
|
|
|
5,231
|
|
|
5,203
|
|
|
(5,720)
|
|
|
(5,231)
|
|
|
(5,203)
|
|
|
15,731
|
|
|
12,937
|
|
|
12,888
|
11
|
|
Noncontrolling
interests
|
|
|
2
|
|
|
7
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
7
|
|
|
3
|
|
|
Financial Services
equity
|
|
|
(5,720)
|
|
|
(5,231)
|
|
|
(5,203)
|
|
|
|
|
|
|
|
|
|
|
|
5,720
|
|
|
5,231
|
|
|
5,203
|
|
|
|
|
|
|
|
|
|
11
|
|
Adjusted total
stockholders' equity
|
|
|
10,013
|
|
|
7,713
|
|
|
7,688
|
|
|
5,720
|
|
|
5,231
|
|
|
5,203
|
|
|
|
|
|
|
|
|
|
|
|
15,733
|
|
|
12,944
|
|
|
12,891
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
36,457
|
|
$
|
33,124
|
|
$
|
33,778
|
|
$
|
51,647
|
|
$
|
48,719
|
|
$
|
48,869
|
|
$
|
(7,416)
|
|
$
|
(6,752)
|
|
$
|
(5,383)
|
|
$
|
80,688
|
|
$
|
75,091
|
|
$
|
77,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
1
|
The Equipment
Operations represents the enterprise without Financial Services.
The Equipment Operations includes the company's production and
precision agriculture operations, small agriculture and turf
operations, construction and forestry operations, and other
corporate assets, liabilities, revenues, and expenses not reflected
within Financial Services.
|
7
|
Elimination of
receivables / payables between Equipment Operations and Financial
Services.
|
8
|
Reclassification of
sales incentive accruals on receivables sold to Financial
Services.
|
9
|
Reclassification of
net pension assets / liabilities.
|
10
|
Reclassification of
deferred tax assets / liabilities in the same taxing
jurisdictions.
|
11
|
Elimination of
Financial Services' equity.
|
DEERE &
COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF CASH FLOWS
For the Nine Months Ended August 1, 2021 and August
2, 2020
(In millions of dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUIPMENT
|
|
FINANCIAL
|
|
|
|
|
|
|
|
|
OPERATIONS1
|
|
SERVICES
|
|
ELIMINATIONS
|
|
CONSOLIDATED
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
4,028
|
|
$
|
1,614
|
|
$
|
654
|
|
$
|
381
|
|
|
|
|
|
|
|
$
|
4,682
|
|
$
|
1,995
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (credit) for
credit losses
|
|
|
5
|
|
|
6
|
|
|
(22)
|
|
|
117
|
|
|
|
|
|
|
|
|
(17)
|
|
|
123
|
|
|
Provision for
depreciation and amortization
|
|
|
803
|
|
|
787
|
|
|
866
|
|
|
925
|
|
$
|
(100)
|
|
$
|
(98)
|
|
|
1,569
|
|
|
1,614
|
12
|
|
Impairment
charges
|
|
|
50
|
|
|
115
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
|
50
|
|
|
147
|
|
|
Share-based
compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64
|
|
|
63
|
|
|
64
|
|
|
63
|
13
|
|
Undistributed earnings
of unconsolidated affiliates
|
|
|
246
|
|
|
257
|
|
|
(2)
|
|
|
(1)
|
|
|
(240)
|
|
|
(261)
|
|
|
4
|
|
|
(5)
|
14
|
|
Credit for deferred
income taxes
|
|
|
(218)
|
|
|
(57)
|
|
|
(53)
|
|
|
(103)
|
|
|
|
|
|
|
|
|
(271)
|
|
|
(160)
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade, notes, and
financing receivables related to sales
|
|
|
(73)
|
|
|
116
|
|
|
|
|
|
|
|
|
(371)
|
|
|
510
|
|
|
(444)
|
|
|
626
|
15, 17,
18
|
|
Inventories
|
|
|
(1,367)
|
|
|
387
|
|
|
|
|
|
|
|
|
(450)
|
|
|
(388)
|
|
|
(1,817)
|
|
|
(1)
|
16
|
|
Accounts payable and
accrued expenses
|
|
|
860
|
|
|
(567)
|
|
|
(20)
|
|
|
(38)
|
|
|
(98)
|
|
|
33
|
|
|
742
|
|
|
(572)
|
17
|
|
Accrued income taxes
payable/receivable
|
|
|
43
|
|
|
(25)
|
|
|
(9)
|
|
|
29
|
|
|
|
|
|
|
|
|
34
|
|
|
4
|
|
|
Retirement
benefits
|
|
|
8
|
|
|
77
|
|
|
5
|
|
|
11
|
|
|
|
|
|
|
|
|
13
|
|
|
88
|
|
|
Other
|
|
|
(200)
|
|
|
145
|
|
|
26
|
|
|
89
|
|
|
(121)
|
|
|
(99)
|
|
|
(295)
|
|
|
135
|
12, 13,
16
|
|
Net cash provided by
operating activities
|
|
|
4,185
|
|
|
2,855
|
|
|
1,445
|
|
|
1,442
|
|
|
(1,316)
|
|
|
(240)
|
|
|
4,314
|
|
|
4,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collections of
receivables (excluding receivables related to sales)
|
|
|
|
|
|
|
|
|
15,704
|
|
|
14,352
|
|
|
(1,224)
|
|
|
(1,115)
|
|
|
14,480
|
|
|
13,237
|
15
|
|
Proceeds from
maturities and sales of marketable securities
|
|
|
4
|
|
|
|
|
|
78
|
|
|
70
|
|
|
|
|
|
|
|
|
82
|
|
|
70
|
|
|
Proceeds from sales
of equipment on operating leases
|
|
|
|
|
|
|
|
|
1,510
|
|
|
1,310
|
|
|
|
|
|
|
|
|
1,510
|
|
|
1,310
|
|
|
Cost of receivables
acquired (excluding receivables related to sales)
|
|
|
|
|
|
|
|
|
(18,349)
|
|
|
(15,367)
|
|
|
1,188
|
|
|
918
|
|
|
(17,161)
|
|
|
(14,449)
|
15
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
(19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19)
|
|
|
|
|
|
Purchases of
marketable securities
|
|
|
|
|
|
|
|
|
(115)
|
|
|
(91)
|
|
|
|
|
|
|
|
|
(115)
|
|
|
(91)
|
|
|
Purchases of property
and equipment
|
|
|
(491)
|
|
|
(591)
|
|
|
(1)
|
|
|
(3)
|
|
|
|
|
|
|
|
|
(492)
|
|
|
(594)
|
|
|
Cost of equipment on
operating leases acquired
|
|
|
|
|
|
|
|
|
(1,818)
|
|
|
(1,836)
|
|
|
608
|
|
|
524
|
|
|
(1,210)
|
|
|
(1,312)
|
16
|
|
Decrease (increase)
in trade and wholesale receivables
|
|
|
|
|
|
|
|
|
(481)
|
|
|
423
|
|
|
481
|
|
|
(423)
|
|
|
|
|
|
|
15
|
|
Collateral on
derivatives – net
|
|
|
(4)
|
|
|
(6)
|
|
|
(185)
|
|
|
330
|
|
|
|
|
|
|
|
|
(189)
|
|
|
324
|
|
|
Other
|
|
|
(14)
|
|
|
(55)
|
|
|
(5)
|
|
|
(46)
|
|
|
31
|
|
|
89
|
|
|
12
|
|
|
(12)
|
14,
18
|
|
Net cash used for
investing activities
|
|
|
(524)
|
|
|
(652)
|
|
|
(3,662)
|
|
|
(858)
|
|
|
1,084
|
|
|
(7)
|
|
|
(3,102)
|
|
|
(1,517)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in total short-term borrowings
|
|
|
(93)
|
|
|
(32)
|
|
|
1,022
|
|
|
202
|
|
|
|
|
|
|
|
|
929
|
|
|
170
|
|
|
Change in
intercompany receivables/payables
|
|
|
(624)
|
|
|
(1,468)
|
|
|
624
|
|
|
1,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
long-term borrowings
|
|
|
|
|
|
4,592
|
|
|
5,877
|
|
|
3,739
|
|
|
|
|
|
|
|
|
5,877
|
|
|
8,331
|
|
|
Payments of long-term
borrowings
|
|
|
(71)
|
|
|
(179)
|
|
|
(5,101)
|
|
|
(5,618)
|
|
|
|
|
|
|
|
|
(5,172)
|
|
|
(5,797)
|
|
|
Proceeds from
issuance of common stock
|
|
|
136
|
|
|
111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
136
|
|
|
111
|
|
|
Repurchases of common
stock
|
|
|
(1,780)
|
|
|
(263)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,780)
|
|
|
(263)
|
|
|
Dividends
paid
|
|
|
(761)
|
|
|
(718)
|
|
|
(240)
|
|
|
(260)
|
|
|
240
|
|
|
260
|
|
|
(761)
|
|
|
(718)
|
14
|
|
Other
|
|
|
(50)
|
|
|
(86)
|
|
|
(22)
|
|
|
(11)
|
|
|
(8)
|
|
|
(13)
|
|
|
(80)
|
|
|
(110)
|
14
|
|
Net cash provided by
(used for) financing activities
|
|
|
(3,243)
|
|
|
1,957
|
|
|
2,160
|
|
|
(480)
|
|
|
232
|
|
|
247
|
|
|
(851)
|
|
|
1,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents, and Restricted
Cash
|
|
|
77
|
|
|
95
|
|
|
29
|
|
|
(15)
|
|
|
|
|
|
|
|
|
106
|
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash, Cash Equivalents, and
Restricted Cash
|
|
|
495
|
|
|
4,255
|
|
|
(28)
|
|
|
89
|
|
|
|
|
|
|
|
|
467
|
|
|
4,344
|
|
|
Cash, Cash
Equivalents, and Restricted Cash at Beginning
of Period
|
|
|
6,156
|
|
|
3,196
|
|
|
1,016
|
|
|
760
|
|
|
|
|
|
|
|
|
7,172
|
|
|
3,956
|
|
|
Cash, Cash
Equivalents, and Restricted Cash at End of Period
|
|
$
|
6,651
|
|
$
|
7,451
|
|
$
|
988
|
|
$
|
849
|
|
|
|
|
|
|
|
$
|
7,639
|
|
$
|
8,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
1
|
The Equipment
Operations represents the enterprise without Financial Services.
The Equipment Operations includes the company's production and
precision agriculture operations, small agriculture and turf
operations, construction and forestry operations, and other
corporate assets, liabilities, revenues, and expenses not reflected
within Financial Services.
|
12
|
Elimination of
depreciation on leases related to inventory transferred to
equipment on operating leases.
|
13
|
Reclassification of
share-based compensation expense.
|
14
|
Elimination of
dividends from Financial Services to the Equipment Operations,
which are included in the Equipment Operations net cash provided by
operating activities, and capital investments in Financial Services
from the Equipment Operations.
|
15
|
Primarily
reclassification of receivables related to the sale of
equipment.
|
16
|
Reclassification of
lease agreements with direct customers.
|
17
|
Reclassification of
sales incentive accruals on receivables sold to Financial
Services.
|
18
|
Elimination and
reclassification of the effects of Financial Services partial
financing of the construction and forestry retail locations sales
and subsequent collection of those amounts.
|
DEERE & COMPANY
OTHER FINANCIAL INFORMATION
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 13 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment
|
Production
&
|
Small Ag
|
Construction
|
|
For the Nine Months
Ended
|
|
Operations
|
Precision
Ag
|
& Turf
|
&
Forestry
|
|
|
|
August 1
|
August 2
|
August 1
|
August 2
|
August 1
|
August 2
|
August 1
|
August 2
|
|
Dollars in millions
|
|
2021
|
2020
|
2021
|
2020
|
2021
|
2020
|
2021
|
2020
|
|
Net Sales
|
|
$
|
29,461
|
|
$
|
22,612
|
|
$
|
11,848
|
|
$
|
9,161
|
|
$
|
9,051
|
|
$
|
6,966
|
|
$
|
8,562
|
|
$
|
6,485
|
|
|
Net Sales - excluding
Wirtgen
|
|
|
|
|
|
20,466
|
|
|
|
|
|
9,161
|
|
|
|
|
|
6,966
|
|
|
|
|
|
4,339
|
|
|
Average Identifiable
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With Inventories at
LIFO
|
|
$
|
16,496
|
|
$
|
16,930
|
|
$
|
6,518
|
|
$
|
6,341
|
|
$
|
3,558
|
|
$
|
3,619
|
|
$
|
6,420
|
|
$
|
6,970
|
|
|
With Inventories at
LIFO - excluding Wirtgen
|
|
|
|
|
|
12,916
|
|
|
|
|
|
6,341
|
|
|
|
|
|
3,619
|
|
|
|
|
|
2,956
|
|
|
With Inventories at
Standard Cost
|
|
|
17,877
|
|
|
18,349
|
|
|
7,205
|
|
|
7,049
|
|
|
3,988
|
|
|
4,063
|
|
|
6,684
|
|
|
7,237
|
|
|
With Inventories at
Standard Cost - excluding Wirtgen
|
|
|
|
|
|
14,335
|
|
|
|
|
|
7,049
|
|
|
|
|
|
4,063
|
|
|
|
|
|
3,223
|
|
|
Operating
Profit
|
|
$
|
5,476
|
|
$
|
2,503
|
|
$
|
2,557
|
|
$
|
1,391
|
|
$
|
1,699
|
|
$
|
718
|
|
$
|
1,220
|
|
$
|
394
|
|
|
Operating Profit -
excluding Wirtgen
|
|
|
|
|
|
2,336
|
|
|
|
|
|
1,391
|
|
|
|
|
|
718
|
|
|
|
|
|
227
|
|
|
Percent of Net
Sales**
|
|
|
18.6
|
%
|
|
11.4
|
%
|
|
21.6
|
%
|
|
15.2
|
%
|
|
18.8
|
%
|
|
10.3
|
%
|
|
14.2
|
%
|
|
5.2
|
%
|
|
Operating Return on
Assets**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With Inventories at
LIFO
|
|
|
33.2
|
%
|
|
18.1
|
%
|
|
39.2
|
%
|
|
21.9
|
%
|
|
47.8
|
%
|
|
19.8
|
%
|
|
19.0
|
%
|
|
7.7
|
%
|
|
With Inventories at
Standard Cost
|
|
|
30.6
|
%
|
|
16.3
|
%
|
|
35.5
|
%
|
|
19.7
|
%
|
|
42.6
|
%
|
|
17.7
|
%
|
|
18.3
|
%
|
|
7.0
|
%
|
|
SVA Cost of
Assets**
|
|
$
|
(1,609)
|
|
$
|
(1,290)
|
|
$
|
(648)
|
|
$
|
(634)
|
|
$
|
(359)
|
|
$
|
(366)
|
|
$
|
(602)
|
|
$
|
(290)
|
|
|
SVA**
|
|
|
3,867
|
|
|
1,046
|
|
|
1,909
|
|
|
757
|
|
|
1,340
|
|
|
352
|
|
|
618
|
|
|
(63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
Ended
|
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 1
|
August 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
654
|
|
$
|
381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Equity
|
|
|
5,468
|
|
|
5,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
Equity
|
|
|
12.0
|
%
|
|
7.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
$
|
844
|
|
$
|
498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Equity
|
|
|
(531)
|
|
|
(501)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SVA
|
|
|
313
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* At the
beginning of fiscal year 2021, the company reclassified goodwill
from the Equipment Operations segments' identifiable assets to
corporate assets. Operating return on assets (OROA) and SVA exclude
the impact of goodwill. Prior period information has been recast
for a consistent presentation.
|
|
|
|
** Beginning in
fiscal year 2021, the results and assets related to the Wirtgen
Group (Wirtgen) are included in the calculation of OROA and SVA.
Due to integration efforts, the 2020 information did not include
Wirtgen's results and assets. Prior period information was not
recast for this change, which is consistent with the company's
internal presentation.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/deere-reports-third-quarter-net-income-of-1-667-billion-301359603.html
SOURCE Deere & Company