MOLINE, Ill., Nov. 24, 2021
/PRNewswire/ --
- Fourth-quarter net income rises on net sales gain of 19%,
demonstrating solid execution and benefits of operating model.
- UAW contract agreement shows commitment to Deere's
workforce.
- Full-year 2022 earnings forecast to be $6.5 to $7.0
billion, reflecting healthy demand.
Deere & Company (NYSE: DE) reported net income of
$1.283 billion for the fourth quarter
ended October 31, 2021, or
$4.12 per share, compared with net
income of $757 million, or
$2.39 per share, for the quarter
ended November 1, 2020. For fiscal
year 2021, net income attributable to Deere & Company was
$5.963 billion, or $18.99 per share, compared with $2.751 billion, or $8.69 per share, in fiscal 2020.
Worldwide net sales and revenues increased 16 percent, to
$11.327 billion, for the fourth
quarter of fiscal 2021 and rose 24 percent, to $44.024 billion, for the full year. Equipment
operations net sales were $10.276
billion for the quarter and $39.737
billion for the year, compared with corresponding
totals of $8.659 billion and
$31.272 billion in 2020.
"Deere's strong fourth-quarter and full-year performance was
delivered by our dedicated employees, dealers, and suppliers
throughout the world, who have helped safely maintain our
operations and serve customers," said John
C. May, chairman and chief executive officer. "Our results
reflect strong end-market demand and our ability to continue
serving customers while managing supply-chain issues and conducting
contract negotiations with our largest union. Last week's
ratification of a 6-year agreement with the UAW brings our highly
skilled employees back to work building the finest products in our
industries. The agreement shows our ongoing commitment to
delivering best-in-class wages and benefits."
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal
2022 is forecasted to be in a range of $6.5
billion to $7.0 billion.
"Looking ahead, we expect demand for farm and construction
equipment to continue benefiting from positive fundamentals,
including favorable crop prices, economic growth, and increased
investment in infrastructure," May said. "At the same time, we
anticipate supply-chain pressures will continue to pose challenges
in our industries. We are working closely with our suppliers to
address these issues and ensure that our customers can deliver
essential food and infrastructure more profitably and
sustainably."
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deere &
Company
|
|
Fourth
Quarter
|
|
Full Year
|
|
$ in
millions
|
|
2021
|
|
2020
|
|
% Change
|
|
2021
|
|
2020
|
|
% Change
|
|
Net sales and
revenues
|
|
$
|
11,327
|
|
$
|
9,731
|
|
16%
|
|
$
|
44,024
|
|
$
|
35,540
|
|
24%
|
|
Net income
|
|
$
|
1,283
|
|
$
|
757
|
|
69%
|
|
$
|
5,963
|
|
$
|
2,751
|
|
117%
|
|
Fully diluted
EPS
|
|
$
|
4.12
|
|
$
|
2.39
|
|
|
|
$
|
18.99
|
|
$
|
8.69
|
|
|
|
Net income in the fourth quarter and full-year 2020 was
negatively affected by impairment charges and employee-separation
costs of $211 million and
$458 million after-tax, respectively.
In addition, net income was unfavorably affected by discrete
adjustments to the provision for income taxes in both periods of
2020.
|
|
|
|
|
|
|
|
|
|
Equipment
Operations
|
|
Fourth
Quarter
|
|
$ in
millions
|
|
2021
|
|
2020
|
|
% Change
|
|
Net sales
|
|
$
|
10,276
|
|
$
|
8,659
|
|
19%
|
|
Operating
profit
|
|
$
|
1,393
|
|
$
|
1,056
|
|
32%
|
|
Net income
|
|
$
|
1,056
|
|
$
|
571
|
|
85%
|
|
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.
|
|
|
|
|
|
|
|
|
|
Production &
Precision Agriculture
|
|
Fourth
Quarter
|
|
$ in
millions
|
|
2021
|
|
2020
|
|
% Change
|
|
Net sales
|
|
$
|
4,661
|
|
$
|
3,801
|
|
23%
|
|
Operating
profit
|
|
$
|
777
|
|
$
|
578
|
|
34%
|
|
Operating
margin
|
|
|
16.7%
|
|
|
15.2%
|
|
|
|
Production and precision agriculture sales increased for the
quarter due to higher shipment volumes and price realization.
Operating profit rose primarily due to price realization and
improved shipment volumes / mix. These items were partially offset
by higher production costs. Results for fourth-quarter 2020 were
negatively impacted by employee-separation expenses.
|
|
|
|
|
|
|
|
|
|
Small Agriculture
& Turf
|
|
Fourth
Quarter
|
|
$ in
millions
|
|
2021
|
|
2020
|
|
% Change
|
|
Net sales
|
|
$
|
2,809
|
|
$
|
2,397
|
|
17%
|
|
Operating
profit
|
|
$
|
346
|
|
$
|
282
|
|
23%
|
|
Operating
margin
|
|
|
12.3%
|
|
|
11.8%
|
|
|
|
Small agriculture and turf sales increased for the quarter due
to higher shipment volumes and price realization. Operating profit
rose primarily due to improved shipment volumes / mix and price
realization. These items were partially offset by higher production
costs and higher research and development and selling,
administrative, and general expenses. Employee-separation expenses
and impairments negatively impacted the fourth quarter of 2020.
|
|
|
|
|
|
|
|
|
|
Construction &
Forestry
|
|
Fourth
Quarter
|
|
$ in
millions
|
|
2021
|
|
2020
|
|
% Change
|
|
Net sales
|
|
$
|
2,806
|
|
$
|
2,461
|
|
14%
|
|
Operating
profit
|
|
$
|
270
|
|
$
|
196
|
|
38%
|
|
Operating
margin
|
|
|
9.6%
|
|
|
8.0%
|
|
|
|
Construction & Forestry sales moved higher for the quarter
primarily due to higher shipment volumes and price realization.
Operating profit improved mainly due to price realization and
higher sales volume / mix. Partially offsetting these factors were
increases in production costs and higher selling, administrative,
and general and research and development expenses. Fourth-quarter
2020 results were adversely affected by employee-separation
expenses and impairments.
|
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
Fourth
Quarter
|
|
$ in
millions
|
|
2021
|
|
2020
|
|
% Change
|
|
Net income
|
|
$
|
227
|
|
$
|
186
|
|
22%
|
|
Net income for financial services in the quarter rose mainly due
to income earned on a higher average portfolio and favorable
financing spreads, as well as improvements on operating-lease
residual values. These factors were partially offset by a higher
provision for credit losses. Results in 2020 also were affected by
employee-separation costs.
|
|
|
|
|
|
|
|
Industry Outlook
for Fiscal 2022
|
|
|
|
|
|
|
|
Agriculture &
Turf
|
|
|
|
|
|
|
|
U.S. &
Canada:
|
|
|
|
|
|
|
|
Large Ag
|
|
|
|
|
|
Up ~ 15%
|
|
Small Ag &
Turf
|
|
|
|
|
|
~ Flat
|
|
Europe
|
|
|
|
|
|
Up ~ 5%
|
|
South America
(Tractors & Combines)
|
|
|
|
|
|
Up ~ 5%
|
|
Asia
|
|
|
|
|
|
~ Flat
|
|
|
|
|
|
|
|
|
|
Construction &
Forestry
|
|
|
|
|
|
|
|
U.S. &
Canada:
|
|
|
|
|
|
|
|
Construction
Equipment
|
|
|
|
|
|
Up 5 to 10%
|
|
Compact Construction
Equipment
|
|
|
|
|
|
Up 5 to 10%
|
|
Global
Forestry
|
|
|
|
|
|
Up 10 to 15%
|
|
|
|
|
|
|
|
|
|
Deere Segment
Outlook for Fiscal 2022
|
|
Currency
|
|
Price
|
|
$ in
millions
|
|
Net Sales
|
|
Translation
|
|
Realization
|
|
Production &
Precision Ag
|
|
Up 20 to 25%
|
|
0%
|
|
+9%
|
|
Small Ag &
Turf
|
|
Up 15 to 20%
|
|
-1%
|
|
+7%
|
|
Construction &
Forestry
|
|
Up 10 to 15%
|
|
0%
|
|
+8%
|
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
Net Income
|
|
$870
|
|
|
|
Financial Services. Fiscal-year 2022 net income
attributable to Deere & Company for the financial services
operations is forecast to be approximately $870 million. Results are expected to be slightly
lower than fiscal 2021 due to a higher provision for credit losses,
lower gains on operating-lease residual values, and higher selling,
general, and administrative expenses. These factors are expected to
be partially offset by 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Full Year
|
|
$ in
millions
|
|
2021
|
|
2020
|
|
% Change
|
|
2021
|
|
2020
|
|
% Change
|
|
Revenue
|
|
$
|
673
|
|
$
|
693
|
|
-3%
|
|
$
|
2,688
|
|
$
|
2,808
|
|
-4%
|
|
Net income
|
|
$
|
181
|
|
$
|
154
|
|
18%
|
|
$
|
711
|
|
$
|
425
|
|
67%
|
|
Ending portfolio
balance
|
|
|
|
|
|
|
|
|
|
$
|
41,488
|
|
$
|
38,726
|
|
7%
|
|
Net income for the fourth quarter of fiscal 2021 was higher than
in the fourth quarter of 2020 primarily due to income earned on
higher average portfolio balances and improvements on
operating-lease residual values. These factors were partially
offset by a higher provision for credit losses. Fourth-quarter
2020 results were also negatively impacted by employee-separation
expenses. Full-year 2021 net income was higher than in 2020 due to
improvements on operating-lease residual values, a lower provision
for credit losses, favorable financing spreads, and income earned
on a higher average portfolio. Full-year 2020 results 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 Fiscal 2022," "Deere Segment
Outlook (Fiscal 2022)," 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 and the effects of climate change; soil conditions;
harvest yields; prices for commodities and livestock; crop and
livestock production expenses; availability of transport for crops
(including as a result of reduced state and local transportation
budgets); 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; 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 company's small agriculture and turf
equipment operations include agricultural conditions; consumer
confidence; weather conditions and the effects of climate change;
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 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 and climate 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 or pandemics (including the COVID
pandemic) and government and industry responses to such epidemics
or pandemics, such as travel restrictions and extended shut downs
of businesses.
Continued uncertainties related to the magnitude, duration, and
persistent effects of the COVID pandemic may significantly
adversely affect the company's business and outlook. These
uncertainties include, among other things: the duration and impact
of the resurgence in COVID cases in any country, state, or region;
the emergence, contagiousness, and threat of new and different
strains of virus; the availability, acceptance, and effectiveness
of vaccines; additional closures as mandated or otherwise made
necessary by governmental authorities; disruptions in the supply
chain, including those caused by industry capacity constraints,
material availability, and global logistics delays and constraints
arising from, among other things, the transportation capacity of
ocean shipping containers, and a prolonged delay in resumption of
operations by one or more key suppliers, or the failure of any key
suppliers; an increasingly competitive labor market due to a
sustained labor shortage or increased turnover caused by COVID
pandemic; the company's ability to meet commitments to customers on
a timely basis as a result of increased costs and supply and
transportation challenges; increased logistics costs; additional
operating costs due to continued 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; and the impact of
the pandemic on the company's customers and dealers. The
sustainability of the economic recovery observed in 2021 remains
unclear and significant volatility could continue for a prolonged
period. These factors, and others that are currently unknown or
considered immaterial, 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.
Continued effects of the withdrawal of the United Kingdom from the European Union could
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 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; the potential default
of the U.S. federal government if Congress fails to pass a fiscal
2022 budget resolution; 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, banking,
and other 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; introduction of legislation that could affect the
company's business model and intellectual property, such as right
to repair or right to modify; 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, including
work stoppages and other disruptions; 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 information
technology infrastructure of the company and its suppliers and
dealers; security breaches with respect to the company's products;
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, 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
FOURTH QUARTER 2021
PRESS RELEASE
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
|
October 31
|
|
November 1
|
|
%
|
|
October 31
|
|
November 1
|
|
%
|
|
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
Net sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production &
precision ag net sales
|
|
$
|
4,661
|
|
$
|
3,801
|
|
+23
|
|
$
|
16,509
|
|
$
|
12,962
|
|
+27
|
Small ag & turf net
sales
|
|
|
2,809
|
|
|
2,397
|
|
+17
|
|
|
11,860
|
|
|
9,363
|
|
+27
|
Construction &
forestry net sales
|
|
|
2,806
|
|
|
2,461
|
|
+14
|
|
|
11,368
|
|
|
8,947
|
|
+27
|
Financial
services
|
|
|
869
|
|
|
891
|
|
-2
|
|
|
3,548
|
|
|
3,589
|
|
-1
|
Other
revenues
|
|
|
182
|
|
|
181
|
|
+1
|
|
|
739
|
|
|
679
|
|
+9
|
Total net sales and
revenues
|
|
$
|
11,327
|
|
$
|
9,731
|
|
+16
|
|
$
|
44,024
|
|
$
|
35,540
|
|
+24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit:
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production &
precision ag
|
|
$
|
777
|
|
$
|
578
|
|
+34
|
|
$
|
3,334
|
|
$
|
1,969
|
|
+69
|
Small ag &
turf
|
|
|
346
|
|
|
282
|
|
+23
|
|
|
2,045
|
|
|
1,000
|
|
+105
|
Construction &
forestry
|
|
|
270
|
|
|
196
|
|
+38
|
|
|
1,489
|
|
|
590
|
|
+152
|
Financial
services
|
|
|
299
|
|
|
249
|
|
+20
|
|
|
1,144
|
|
|
746
|
|
+53
|
Total operating
profit
|
|
|
1,692
|
|
|
1,305
|
|
+30
|
|
|
8,012
|
|
|
4,305
|
|
+86
|
Reconciling items
**
|
|
|
(78)
|
|
|
(219)
|
|
-64
|
|
|
(390)
|
|
|
(472)
|
|
-17
|
Income
taxes
|
|
|
(331)
|
|
|
(329)
|
|
+1
|
|
|
(1,659)
|
|
|
(1,082)
|
|
+53
|
Net income
attributable to Deere & Company
|
|
$
|
1,283
|
|
$
|
757
|
|
+69
|
|
$
|
5,963
|
|
$
|
2,751
|
|
+117
|
|
|
*
|
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 October 31, 2021 and November 1,
2020
(In millions of
dollars and shares except per share amounts)
Unaudited
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Net Sales and
Revenues
|
|
|
|
|
|
|
Net sales
|
|
$
|
10,276
|
|
$
|
8,659
|
Finance and interest
income
|
|
|
828
|
|
|
867
|
Other
income
|
|
|
223
|
|
|
205
|
Total
|
|
|
11,327
|
|
|
9,731
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
Cost of
sales
|
|
|
7,809
|
|
|
6,470
|
Research and
development expenses
|
|
|
450
|
|
|
443
|
Selling,
administrative and general expenses
|
|
|
936
|
|
|
1,011
|
Interest
expense
|
|
|
210
|
|
|
278
|
Other operating
expenses
|
|
|
309
|
|
|
414
|
Total
|
|
|
9,714
|
|
|
8,616
|
|
|
|
|
|
|
|
Income of
Consolidated Group before Income Taxes
|
|
|
1,613
|
|
|
1,115
|
Provision for income
taxes
|
|
|
330
|
|
|
329
|
|
|
|
|
|
|
|
Income of
Consolidated Group
|
|
|
1,283
|
|
|
786
|
Equity in income
(loss) of unconsolidated affiliates
|
|
|
1
|
|
|
(28)
|
|
|
|
|
|
|
|
Net
Income
|
|
|
1,284
|
|
|
758
|
Less: Net income
attributable to noncontrolling interests
|
|
|
1
|
|
|
1
|
Net Income
Attributable to Deere & Company
|
|
$
|
1,283
|
|
$
|
757
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Basic
|
|
$
|
4.15
|
|
$
|
2.41
|
Diluted
|
|
$
|
4.12
|
|
$
|
2.39
|
|
|
|
|
|
|
|
Average Shares
Outstanding
|
|
|
|
|
|
|
Basic
|
|
|
309.1
|
|
|
314.1
|
Diluted
|
|
|
311.5
|
|
|
317.1
|
|
|
See Condensed
Notes to Consolidated Financial Statements.
|
DEERE &
COMPANY
STATEMENT OF
CONSOLIDATED INCOME
For the Years
Ended October 31, 2021 and November 1, 2020
(In millions of
dollars and shares except per share amounts) Unaudited
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Net Sales and
Revenues
|
|
|
|
|
|
|
Net sales
|
|
$
|
39,737
|
|
$
|
31,272
|
Finance and interest
income
|
|
|
3,296
|
|
|
3,450
|
Other
income
|
|
|
991
|
|
|
818
|
Total
|
|
|
44,024
|
|
|
35,540
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
Cost of
sales
|
|
|
29,116
|
|
|
23,677
|
Research and
development expenses
|
|
|
1,587
|
|
|
1,644
|
Selling,
administrative and general expenses
|
|
|
3,383
|
|
|
3,477
|
Interest
expense
|
|
|
993
|
|
|
1,247
|
Other operating
expenses
|
|
|
1,343
|
|
|
1,612
|
Total
|
|
|
36,422
|
|
|
31,657
|
|
|
|
|
|
|
|
Income of
Consolidated Group before Income Taxes
|
|
|
7,602
|
|
|
3,883
|
Provision for income
taxes
|
|
|
1,658
|
|
|
1,082
|
|
|
|
|
|
|
|
Income of
Consolidated Group
|
|
|
5,944
|
|
|
2,801
|
Equity in income
(loss) of unconsolidated affiliates
|
|
|
21
|
|
|
(48)
|
|
|
|
|
|
|
|
Net
Income
|
|
|
5,965
|
|
|
2,753
|
Less: Net income
attributable to noncontrolling interests
|
|
|
2
|
|
|
2
|
Net Income
Attributable to Deere & Company
|
|
$
|
5,963
|
|
$
|
2,751
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Basic
|
|
$
|
19.14
|
|
$
|
8.77
|
Diluted
|
|
$
|
18.99
|
|
$
|
8.69
|
|
|
|
|
|
|
|
Average Shares
Outstanding
|
|
|
|
|
|
|
Basic
|
|
|
311.6
|
|
|
313.5
|
Diluted
|
|
|
314.0
|
|
|
316.6
|
|
|
See Condensed
Notes to Consolidated Financial Statements.
|
DEERE &
COMPANY
CONDENSED
CONSOLIDATED BALANCE SHEET
As of
October 31, 2021 and November 1, 2020
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
8,017
|
|
$
|
7,066
|
Marketable
securities
|
|
|
728
|
|
|
641
|
Receivables from
unconsolidated affiliates
|
|
|
27
|
|
|
31
|
Trade accounts and
notes receivable - net
|
|
|
4,208
|
|
|
4,171
|
Financing receivables
- net
|
|
|
33,799
|
|
|
29,750
|
Financing receivables
securitized - net
|
|
|
4,659
|
|
|
4,703
|
Other
receivables
|
|
|
1,738
|
|
|
1,220
|
Equipment on
operating leases - net
|
|
|
6,988
|
|
|
7,298
|
Inventories
|
|
|
6,781
|
|
|
4,999
|
Property and
equipment - net
|
|
|
5,820
|
|
|
5,817
|
Investments in
unconsolidated affiliates
|
|
|
175
|
|
|
193
|
Goodwill
|
|
|
3,291
|
|
|
3,081
|
Other intangible
assets - net
|
|
|
1,275
|
|
|
1,327
|
Retirement
benefits
|
|
|
3,601
|
|
|
863
|
Deferred income
taxes
|
|
|
1,037
|
|
|
1,499
|
Other
assets
|
|
|
1,970
|
|
|
2,432
|
Total
Assets
|
|
$
|
84,114
|
|
$
|
75,091
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
10,919
|
|
$
|
8,582
|
Short-term
securitization borrowings
|
|
|
4,605
|
|
|
4,682
|
Payables to
unconsolidated affiliates
|
|
|
143
|
|
|
105
|
Accounts payable and
accrued expenses
|
|
|
12,205
|
|
|
10,112
|
Deferred income
taxes
|
|
|
576
|
|
|
519
|
Long-term
borrowings
|
|
|
32,888
|
|
|
32,734
|
Retirement benefits
and other liabilities
|
|
|
4,344
|
|
|
5,413
|
Total
liabilities
|
|
|
65,680
|
|
|
62,147
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
Total Deere &
Company stockholders' equity
|
|
|
18,431
|
|
|
12,937
|
Noncontrolling
interests
|
|
|
3
|
|
|
7
|
Total stockholders'
equity
|
|
|
18,434
|
|
|
12,944
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
84,114
|
|
$
|
75,091
|
|
|
See Condensed
Notes to Consolidated Financial Statements.
|
DEERE &
COMPANY
STATEMENT OF
CONSOLIDATED CASH FLOWS
For the Years
Ended October 31, 2021 and November 1, 2020
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
Net income
|
|
$
|
5,965
|
|
$
|
2,753
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Provision (credit) for
credit losses
|
|
|
(6)
|
|
|
110
|
Provision for
depreciation and amortization
|
|
|
2,050
|
|
|
2,118
|
Impairment
charges
|
|
|
50
|
|
|
194
|
Share-based
compensation expense
|
|
|
82
|
|
|
81
|
Loss on sales of
businesses and unconsolidated affiliates
|
|
|
|
|
|
24
|
Undistributed earnings
of unconsolidated affiliates
|
|
|
2
|
|
|
(7)
|
Credit for deferred
income taxes
|
|
|
(441)
|
|
|
(11)
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
Trade, notes, and
financing receivables related to sales
|
|
|
969
|
|
|
2,009
|
Inventories
|
|
|
(2,497)
|
|
|
397
|
Accounts payable and
accrued expenses
|
|
|
1,884
|
|
|
(7)
|
Accrued income taxes
payable/receivable
|
|
|
11
|
|
|
8
|
Retirement
benefits
|
|
|
29
|
|
|
(537)
|
Other
|
|
|
(372)
|
|
|
351
|
Net cash provided by
operating activities
|
|
|
7,726
|
|
|
7,483
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
Collections of
receivables (excluding receivables related to sales)
|
|
|
18,959
|
|
|
17,381
|
Proceeds from
maturities and sales of marketable securities
|
|
|
109
|
|
|
93
|
Proceeds from sales
of equipment on operating leases
|
|
|
2,094
|
|
|
1,783
|
Cost of receivables
acquired (excluding receivables related to sales)
|
|
|
(23,653)
|
|
|
(19,965)
|
Acquisitions of
businesses, net of cash acquired
|
|
|
(244)
|
|
|
(66)
|
Purchases of
marketable securities
|
|
|
(194)
|
|
|
(130)
|
Purchases of property
and equipment
|
|
|
(848)
|
|
|
(820)
|
Cost of equipment on
operating leases acquired
|
|
|
(1,732)
|
|
|
(1,836)
|
Collateral on
derivatives - net
|
|
|
(281)
|
|
|
268
|
Other
|
|
|
40
|
|
|
(27)
|
Net cash used for
investing activities
|
|
|
(5,750)
|
|
|
(3,319)
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
Increase (decrease)
in total short-term borrowings
|
|
|
818
|
|
|
(1,360)
|
Proceeds from
long-term borrowings
|
|
|
8,722
|
|
|
9,271
|
Payments of long-term
borrowings
|
|
|
(7,090)
|
|
|
(7,383)
|
Proceeds from
issuance of common stock
|
|
|
148
|
|
|
331
|
Repurchases of common
stock
|
|
|
(2,538)
|
|
|
(750)
|
Dividends
paid
|
|
|
(1,040)
|
|
|
(956)
|
Other
|
|
|
(98)
|
|
|
(133)
|
Net cash used for
financing activities
|
|
|
(1,078)
|
|
|
(980)
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents, and
Restricted Cash
|
|
|
55
|
|
|
32
|
|
|
|
|
|
|
|
Net Increase in
Cash, Cash Equivalents, and Restricted Cash
|
|
|
953
|
|
|
3,216
|
Cash, Cash
Equivalents, and Restricted Cash at Beginning of
Year
|
|
|
7,172
|
|
|
3,956
|
Cash, Cash
Equivalents, and Restricted Cash at End of Year
|
|
$
|
8,125
|
|
$
|
7,172
|
|
|
See Condensed
Notes to Consolidated Financial Statements.
|
|
|
DEERE &
COMPANY
|
Condensed Notes to
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 pretax gain.
During the first quarter of 2021, the fixed assets in an asphalt
plant factory in Germany were impaired. The company also continued
to assess its manufacturing locations, resulting in additional
long-lived asset impairments. These impairments were offset by a
favorable indirect tax ruling in Brazil. There were no special
items in the fourth quarter of 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October
31, 2021
|
|
|
|
Production
&
|
|
Small Ag
|
|
Construction
|
|
|
|
Expense
(benefit):
|
|
Precision
Ag
|
|
& Turf
|
|
&
Forestry
|
|
Total
|
|
Gain on sale -
Other income
|
|
|
|
|
$
|
(27)
|
|
|
|
|
$
|
(27)
|
|
Long-lived asset
impairments -
Cost of sales
|
|
$
|
5
|
|
|
3
|
|
$
|
42
|
|
|
50
|
|
Brazil indirect tax -
Cost of sales
|
|
|
(53)
|
|
|
|
|
|
(5)
|
|
|
(58)
|
|
Total pretax expense
(benefit)
|
|
$
|
(48)
|
|
$
|
(24)
|
|
$
|
37
|
|
$
|
(35)
|
|
|
2020 Special
Items
|
|
In 2020, the company
closed a factory producing small agricultural equipment in China
resulting in one-time costs in the fourth quarter, in addition to
costs previously recorded in the third quarter. The company also
impaired fixed assets at multiple international locations resulting
in one-time costs in the fourth quarter, along with fixed asset
impairments recognized in the second quarter. Equipment on
operating leases and matured operating lease inventory were
impaired in the second quarter of 2020. The company also impaired
minority investments resulting in one-time costs in the fourth
quarter, in addition to a minority investment impairment in the
second quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Nov. 1, 2020
|
|
Year Ended Nov. 1,
2020
|
|
Expense:
|
|
PPA
|
|
SAT
|
|
CF
|
|
Total
|
|
PPA
|
|
SAT
|
|
CF
|
|
FS
|
|
Total
|
|
Factory closure -
Cost of sales
|
|
|
|
|
$
|
7
|
|
|
|
|
$
|
7
|
|
|
|
|
$
|
20
|
|
|
|
|
|
|
|
$
|
20
|
|
Long-lived asset
impairments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
13
|
|
$
|
18
|
|
|
31
|
|
|
|
|
|
13
|
|
$
|
80
|
|
|
|
|
|
93
|
|
SA&G
expenses
|
|
$
|
2
|
|
|
2
|
|
|
|
|
|
4
|
|
$
|
2
|
|
|
2
|
|
|
|
|
|
|
|
|
4
|
|
Other operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
32
|
|
|
32
|
|
Affiliate company
impairments –
Equity in income (loss) of
unconsolidated affiliates
|
|
|
|
|
|
|
|
|
30
|
|
|
30
|
|
|
|
|
|
|
|
|
50
|
|
|
|
|
|
50
|
|
Total pretax
expense
|
|
$
|
2
|
|
$
|
22
|
|
$
|
48
|
|
$
|
72
|
|
$
|
2
|
|
$
|
35
|
|
$
|
130
|
|
$
|
32
|
|
$
|
199
|
|
|
2020
Disposition
|
|
In the fourth quarter
of 2020, the company sold its German lawn mower business. A $24
million pretax loss was recorded in the third quarter of 2020 when
the definitive sale agreement was finalized. The loss was recorded
in "Other operating expenses" in the small agriculture and turf
segment.
|
|
|
|
2020
Employee-Separation Programs
|
|
During the first and
fourth quarters of 2020, the company implemented
employee-separation programs for the company's salaried workforce
in several geographic areas, including the U.S., Europe, Asia, and
Latin America. The programs' main purpose was to improve efficiency
through a leaner, more flexible organization. The total pretax
expenses for 2020 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Nov. 1, 2020
|
|
Year Ended Nov. 1,
2020
|
|
|
|
PPA
|
|
SAT
|
|
CF
|
|
FS
|
|
Total
|
|
PPA
|
|
SAT
|
|
CF
|
|
FS
|
|
Total
|
|
Cost of
sales
|
|
$
|
31
|
|
$
|
19
|
|
$
|
13
|
|
|
|
|
$
|
63
|
|
$
|
51
|
|
$
|
31
|
|
$
|
22
|
|
|
|
|
$
|
104
|
|
Research and
development expenses
|
|
|
20
|
|
|
12
|
|
|
5
|
|
|
|
|
|
37
|
|
|
29
|
|
|
18
|
|
|
8
|
|
|
|
|
|
55
|
|
Selling,
administrative and
general expenses
|
|
|
34
|
|
|
24
|
|
|
10
|
|
$
|
11
|
|
|
79
|
|
|
53
|
|
|
43
|
|
|
24
|
|
$
|
15
|
|
|
135
|
|
Total operating
profit impact
|
|
$
|
85
|
|
$
|
55
|
|
$
|
28
|
|
$
|
11
|
|
|
179
|
|
$
|
133
|
|
$
|
92
|
|
$
|
54
|
|
$
|
15
|
|
|
294
|
|
Non-operating profit
impact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41
|
|
Total pretax
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
335
|
|
|
Included in total
pretax expense are non-cash charges of $13 million and $34 million
in the fourth quarter and full year 2020, respectively, resulting
from curtailment losses in certain OPEB plans that were recorded
outside of operating profit in "Other operating
expenses."
|
|
|
(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 fiscal year 2021. 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
|
|
Years
Ended
|
|
|
October 31
|
|
November 1
|
|
October 31
|
|
November 1
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Dividends
declared
|
|
$
|
1.05
|
|
$
|
.76
|
|
$
|
3.61
|
|
$
|
3.04
|
Dividends
paid
|
|
$
|
.90
|
|
$
|
.76
|
|
$
|
3.32
|
|
$
|
3.04
|
(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
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 October 31, 2021 and November 1,
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
|
|
$
|
10,276
|
|
$
|
8,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,276
|
|
$
|
8,659
|
|
|
|
Finance and interest
income
|
|
|
39
|
|
|
38
|
|
$
|
859
|
|
$
|
891
|
|
$
|
(70)
|
|
$
|
(62)
|
|
|
828
|
|
|
867
|
|
2
|
|
Other
income
|
|
|
229
|
|
|
211
|
|
|
84
|
|
|
60
|
|
|
(90)
|
|
|
(66)
|
|
|
223
|
|
|
205
|
|
3
|
|
Total
|
|
|
10,544
|
|
|
8,908
|
|
|
943
|
|
|
951
|
|
|
(160)
|
|
|
(128)
|
|
|
11,327
|
|
|
9,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
7,811
|
|
|
6,470
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
7,809
|
|
|
6,470
|
|
4
|
|
Research and
development expenses
|
|
|
450
|
|
|
443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
450
|
|
|
443
|
|
|
|
Selling,
administrative and general expenses
|
|
|
798
|
|
|
890
|
|
|
140
|
|
|
123
|
|
|
(2)
|
|
|
(2)
|
|
|
936
|
|
|
1,011
|
|
4
|
|
Interest
expense
|
|
|
81
|
|
|
92
|
|
|
148
|
|
|
195
|
|
|
(19)
|
|
|
(9)
|
|
|
210
|
|
|
278
|
|
5
|
|
Interest compensation
to Financial Services
|
|
|
51
|
|
|
53
|
|
|
|
|
|
|
|
|
(51)
|
|
|
(53)
|
|
|
|
|
|
|
|
5
|
|
Other operating
expenses
|
|
|
40
|
|
|
93
|
|
|
355
|
|
|
385
|
|
|
(86)
|
|
|
(64)
|
|
|
309
|
|
|
414
|
|
6
|
|
Total
|
|
|
9,231
|
|
|
8,041
|
|
|
643
|
|
|
703
|
|
|
(160)
|
|
|
(128)
|
|
|
9,714
|
|
|
8,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before Income Taxes
|
|
|
1,313
|
|
|
867
|
|
|
300
|
|
|
248
|
|
|
|
|
|
|
|
|
1,613
|
|
|
1,115
|
|
|
|
Provision for income
taxes
|
|
|
256
|
|
|
266
|
|
|
74
|
|
|
63
|
|
|
|
|
|
|
|
|
330
|
|
|
329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after
Income Taxes
|
|
|
1,057
|
|
|
601
|
|
|
226
|
|
|
185
|
|
|
|
|
|
|
|
|
1,283
|
|
|
786
|
|
|
|
Equity in income
(loss) of unconsolidated affiliates
|
|
|
|
|
|
(29)
|
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
1
|
|
|
(28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
1,057
|
|
|
572
|
|
|
227
|
|
|
186
|
|
|
|
|
|
|
|
|
1,284
|
|
|
758
|
|
|
|
Less: Net income
attributable to
noncontrolling interests
|
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
1
|
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
1,056
|
|
$
|
571
|
|
$
|
227
|
|
$
|
186
|
|
|
|
|
|
|
|
$
|
1,283
|
|
$
|
757
|
|
|
|
|
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 Years
Ended October 31, 2021 and November 1, 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
|
|
$
|
39,737
|
|
$
|
31,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
39,737
|
|
$
|
31,272
|
|
|
|
Finance and interest
income
|
|
|
133
|
|
|
112
|
|
$
|
3,442
|
|
$
|
3,610
|
|
$
|
(279)
|
|
$
|
(272)
|
|
|
3,296
|
|
|
3,450
|
|
2
|
|
Other
income
|
|
|
941
|
|
|
808
|
|
|
352
|
|
|
257
|
|
|
(302)
|
|
|
(247)
|
|
|
991
|
|
|
818
|
|
3
|
|
Total
|
|
|
40,811
|
|
|
32,192
|
|
|
3,794
|
|
|
3,867
|
|
|
(581)
|
|
|
(519)
|
|
|
44,024
|
|
|
35,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
29,119
|
|
|
23,679
|
|
|
|
|
|
|
|
|
(3)
|
|
|
(2)
|
|
|
29,116
|
|
|
23,677
|
|
4
|
|
Research and
development expenses
|
|
|
1,587
|
|
|
1,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,587
|
|
|
1,644
|
|
|
|
Selling,
administrative and general expenses
|
|
|
2,887
|
|
|
2,878
|
|
|
504
|
|
|
606
|
|
|
(8)
|
|
|
(7)
|
|
|
3,383
|
|
|
3,477
|
|
4
|
|
Interest
expense
|
|
|
368
|
|
|
329
|
|
|
687
|
|
|
942
|
|
|
(62)
|
|
|
(24)
|
|
|
993
|
|
|
1,247
|
|
5
|
|
Interest compensation
to Financial Services
|
|
|
217
|
|
|
248
|
|
|
|
|
|
|
|
|
(217)
|
|
|
(248)
|
|
|
|
|
|
|
|
5
|
|
Other operating
expenses
|
|
|
181
|
|
|
278
|
|
|
1,453
|
|
|
1,572
|
|
|
(291)
|
|
|
(238)
|
|
|
1,343
|
|
|
1,612
|
|
6
|
|
Total
|
|
|
34,359
|
|
|
29,056
|
|
|
2,644
|
|
|
3,120
|
|
|
(581)
|
|
|
(519)
|
|
|
36,422
|
|
|
31,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before Income Taxes
|
|
|
6,452
|
|
|
3,136
|
|
|
1,150
|
|
|
747
|
|
|
|
|
|
|
|
|
7,602
|
|
|
3,883
|
|
|
|
Provision for income
taxes
|
|
|
1,386
|
|
|
899
|
|
|
272
|
|
|
183
|
|
|
|
|
|
|
|
|
1,658
|
|
|
1,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after
Income Taxes
|
|
|
5,066
|
|
|
2,237
|
|
|
878
|
|
|
564
|
|
|
|
|
|
|
|
|
5,944
|
|
|
2,801
|
|
|
|
Equity in income
(loss) of unconsolidated affiliates
|
|
|
18
|
|
|
(50)
|
|
|
3
|
|
|
2
|
|
|
|
|
|
|
|
|
21
|
|
|
(48)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
5,084
|
|
|
2,187
|
|
|
881
|
|
|
566
|
|
|
|
|
|
|
|
|
5,965
|
|
|
2,753
|
|
|
|
Less: Net income
attributable to
noncontrolling interests
|
|
|
2
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
2
|
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
5,082
|
|
$
|
2,185
|
|
$
|
881
|
|
$
|
566
|
|
|
|
|
|
|
|
$
|
5,963
|
|
$
|
2,751
|
|
|
|
|
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
As of
October 31, 2021 and November 1, 2020
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUIPMENT
|
|
FINANCIAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS1
|
|
SERVICES
|
|
ELIMINATIONS
|
|
CONSOLIDATED
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
7,188
|
|
$
|
6,145
|
|
$
|
829
|
|
$
|
921
|
|
|
|
|
|
|
|
$
|
8,017
|
|
$
|
7,066
|
|
|
|
Marketable
securities
|
|
3
|
|
|
7
|
|
|
725
|
|
|
634
|
|
|
|
|
|
|
|
|
728
|
|
|
641
|
|
|
|
Receivables from
unconsolidated affiliates
|
|
5,591
|
|
|
5,290
|
|
|
|
|
|
|
|
$
|
(5,564)
|
|
$
|
(5,259)
|
|
|
27
|
|
|
31
|
|
7
|
|
Trade accounts and
notes receivable - net
|
|
1,155
|
|
|
1,013
|
|
|
3,895
|
|
|
4,238
|
|
|
(842)
|
|
|
(1,080)
|
|
|
4,208
|
|
|
4,171
|
|
8
|
|
Financing receivables
- net
|
|
73
|
|
|
106
|
|
|
33,726
|
|
|
29,644
|
|
|
|
|
|
|
|
|
33,799
|
|
|
29,750
|
|
|
|
Financing receivables
securitized - net
|
|
10
|
|
|
26
|
|
|
4,649
|
|
|
4,677
|
|
|
|
|
|
|
|
|
4,659
|
|
|
4,703
|
|
|
|
Other
receivables
|
|
1,602
|
|
|
1,117
|
|
|
159
|
|
|
151
|
|
|
(23)
|
|
|
(48)
|
|
|
1,738
|
|
|
1,220
|
|
8
|
|
Equipment on
operating leases - net
|
|
|
|
|
|
|
|
6,988
|
|
|
7,298
|
|
|
|
|
|
|
|
|
6,988
|
|
|
7,298
|
|
|
|
Inventories
|
|
6,781
|
|
|
4,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,781
|
|
|
4,999
|
|
|
|
Property and
equipment - net
|
|
5,783
|
|
|
5,778
|
|
|
37
|
|
|
39
|
|
|
|
|
|
|
|
|
5,820
|
|
|
5,817
|
|
|
|
Investments in
unconsolidated affiliates
|
|
153
|
|
|
174
|
|
|
22
|
|
|
19
|
|
|
|
|
|
|
|
|
175
|
|
|
193
|
|
|
|
Goodwill
|
|
3,291
|
|
|
3,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,291
|
|
|
3,081
|
|
|
|
Other intangible
assets - net
|
|
1,275
|
|
|
1,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,275
|
|
|
1,327
|
|
|
|
Retirement
benefits
|
|
3,539
|
|
|
859
|
|
|
64
|
|
|
59
|
|
|
(2)
|
|
|
(55)
|
|
|
3,601
|
|
|
863
|
|
9
|
|
Deferred income
taxes
|
|
1,215
|
|
|
1,763
|
|
|
53
|
|
|
45
|
|
|
(231)
|
|
|
(309)
|
|
|
1,037
|
|
|
1,499
|
|
10
|
|
Other
assets
|
|
1,493
|
|
|
1,439
|
|
|
477
|
|
|
994
|
|
|
|
|
|
(1)
|
|
|
1,970
|
|
|
2,432
|
|
|
|
Total
Assets
|
$
|
39,152
|
|
$
|
33,124
|
|
$
|
51,624
|
|
$
|
48,719
|
|
$
|
(6,662)
|
|
$
|
(6,752)
|
|
$
|
84,114
|
|
$
|
75,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
$
|
1,509
|
|
$
|
292
|
|
$
|
9,410
|
|
$
|
8,290
|
|
|
|
|
|
|
|
$
|
10,919
|
|
$
|
8,582
|
|
|
|
Short-term
securitization borrowings
|
|
10
|
|
|
26
|
|
|
4,595
|
|
|
4,656
|
|
|
|
|
|
|
|
|
4,605
|
|
|
4,682
|
|
|
|
Payables to
unconsolidated affiliates
|
|
143
|
|
|
104
|
|
|
5,564
|
|
|
5,260
|
|
$
|
(5,564)
|
|
$
|
(5,259)
|
|
|
143
|
|
|
105
|
|
7
|
|
Accounts payable and
accrued expenses
|
|
11,055
|
|
|
9,114
|
|
|
2,015
|
|
|
2,127
|
|
|
(865)
|
|
|
(1,129)
|
|
|
12,205
|
|
|
10,112
|
|
8
|
|
Deferred income
taxes
|
|
438
|
|
|
385
|
|
|
369
|
|
|
443
|
|
|
(231)
|
|
|
(309)
|
|
|
576
|
|
|
519
|
|
10
|
|
Long-term
borrowings
|
|
8,915
|
|
|
10,124
|
|
|
23,973
|
|
|
22,610
|
|
|
|
|
|
|
|
|
32,888
|
|
|
32,734
|
|
|
|
Retirement benefits
and other liabilities
|
|
4,239
|
|
|
5,366
|
|
|
107
|
|
|
102
|
|
|
(2)
|
|
|
(55)
|
|
|
4,344
|
|
|
5,413
|
|
9
|
|
Total
liabilities
|
|
26,309
|
|
|
25,411
|
|
|
46,033
|
|
|
43,488
|
|
|
(6,662)
|
|
|
(6,752)
|
|
|
65,680
|
|
|
62,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Deere & Company stockholders' equity
|
|
18,431
|
|
|
12,937
|
|
|
5,591
|
|
|
5,231
|
|
|
(5,591)
|
|
|
(5,231)
|
|
|
18,431
|
|
|
12,937
|
|
11
|
|
Noncontrolling
interests
|
|
3
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
7
|
|
|
|
Financial Services
equity
|
|
(5,591)
|
|
|
(5,231)
|
|
|
|
|
|
|
|
|
5,591
|
|
|
5,231
|
|
|
|
|
|
|
|
11
|
|
Adjusted total
stockholders' equity
|
|
12,843
|
|
|
7,713
|
|
|
5,591
|
|
|
5,231
|
|
|
|
|
|
|
|
|
18,434
|
|
|
12,944
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
|
39,152
|
|
$
|
33,124
|
|
$
|
51,624
|
|
$
|
48,719
|
|
$
|
(6,662)
|
|
$
|
(6,752)
|
|
$
|
84,114
|
|
$
|
75,091
|
|
|
|
|
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 Years
Ended October 31, 2021 and November 1, 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
|
|
$
|
5,084
|
|
$
|
2,187
|
|
$
|
881
|
|
$
|
566
|
|
|
|
|
|
|
|
$
|
5,965
|
|
$
|
2,753
|
|
|
|
Adjustments to
reconcile net income to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (credit) for
credit losses
|
|
|
7
|
|
|
5
|
|
|
(13)
|
|
|
105
|
|
|
|
|
|
|
|
|
(6)
|
|
|
110
|
|
|
|
Provision for
depreciation and amortization
|
|
|
1,043
|
|
|
1,016
|
|
|
1,140
|
|
|
1,227
|
|
$
|
(133)
|
|
$
|
(125)
|
|
|
2,050
|
|
|
2,118
|
|
12
|
|
Impairment
charges
|
|
|
50
|
|
|
162
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
|
50
|
|
|
194
|
|
|
|
Share-based
compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
82
|
|
|
81
|
|
|
82
|
|
|
81
|
|
13
|
|
Loss on sale of
businesses and unconsolidated affiliates
|
|
|
|
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
|
|
Undistributed earnings
of unconsolidated affiliates
|
|
|
560
|
|
|
381
|
|
|
(3)
|
|
|
(2)
|
|
|
(555)
|
|
|
(386)
|
|
|
2
|
|
|
(7)
|
|
14
|
|
Provision (credit) for
deferred income taxes
|
|
|
(369)
|
|
|
105
|
|
|
(72)
|
|
|
(116)
|
|
|
|
|
|
|
|
|
(441)
|
|
|
(11)
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade, notes, and
financing receivables related to sales
|
|
|
(105)
|
|
|
373
|
|
|
|
|
|
|
|
|
1,074
|
|
|
1,636
|
|
|
969
|
|
|
2,009
|
|
15, 17,
18
|
|
Inventories
|
|
|
(1,835)
|
|
|
1,011
|
|
|
|
|
|
|
|
|
(662)
|
|
|
(614)
|
|
|
(2,497)
|
|
|
397
|
|
16
|
|
Accounts payable and
accrued expenses
|
|
|
1,589
|
|
|
(331)
|
|
|
57
|
|
|
(1)
|
|
|
238
|
|
|
325
|
|
|
1,884
|
|
|
(7)
|
|
17
|
|
Accrued income taxes
payable/receivable
|
|
|
13
|
|
|
(14)
|
|
|
(2)
|
|
|
22
|
|
|
|
|
|
|
|
|
11
|
|
|
8
|
|
|
|
Retirement
benefits
|
|
|
30
|
|
|
(544)
|
|
|
(1)
|
|
|
7
|
|
|
|
|
|
|
|
|
29
|
|
|
(537)
|
|
|
|
Other
|
|
|
(167)
|
|
|
385
|
|
|
(22)
|
|
|
136
|
|
|
(183)
|
|
|
(170)
|
|
|
(372)
|
|
|
351
|
|
12, 13,
16
|
|
Net cash provided by
operating activities
|
|
|
5,900
|
|
|
4,760
|
|
|
1,965
|
|
|
1,976
|
|
|
(139)
|
|
|
747
|
|
|
7,726
|
|
|
7,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collections of
receivables (excluding receivables related
to sales)
|
|
|
|
|
|
|
|
|
20,527
|
|
|
18,829
|
|
|
(1,568)
|
|
|
(1,448)
|
|
|
18,959
|
|
|
17,381
|
|
15
|
|
Proceeds from
maturities and sales of marketable securities
|
|
|
4
|
|
|
|
|
|
105
|
|
|
93
|
|
|
|
|
|
|
|
|
109
|
|
|
93
|
|
|
|
Proceeds from sales
of equipment on operating leases
|
|
|
|
|
|
|
|
|
2,094
|
|
|
1,783
|
|
|
|
|
|
|
|
|
2,094
|
|
|
1,783
|
|
|
|
Cost of receivables
acquired (excluding receivables related
to sales)
|
|
|
|
|
|
|
|
|
(25,305)
|
|
|
(21,360)
|
|
|
1,652
|
|
|
1,395
|
|
|
(23,653)
|
|
|
(19,965)
|
|
15
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
(244)
|
|
|
(66)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(244)
|
|
|
(66)
|
|
|
|
Purchases of
marketable securities
|
|
|
|
|
|
(4)
|
|
|
(194)
|
|
|
(126)
|
|
|
|
|
|
|
|
|
(194)
|
|
|
(130)
|
|
|
|
Purchases of property
and equipment
|
|
|
(845)
|
|
|
(816)
|
|
|
(3)
|
|
|
(4)
|
|
|
|
|
|
|
|
|
(848)
|
|
|
(820)
|
|
|
|
Cost of equipment on
operating leases acquired
|
|
|
|
|
|
|
|
|
(2,627)
|
|
|
(2,666)
|
|
|
895
|
|
|
830
|
|
|
(1,732)
|
|
|
(1,836)
|
|
16
|
|
Decrease in trade and
wholesale receivables
|
|
|
|
|
|
|
|
|
1,364
|
|
|
1,999
|
|
|
(1,364)
|
|
|
(1,999)
|
|
|
|
|
|
|
|
15
|
|
Collateral on
derivatives - net
|
|
|
(7)
|
|
|
(6)
|
|
|
(274)
|
|
|
274
|
|
|
|
|
|
|
|
|
(281)
|
|
|
268
|
|
|
|
Other
|
|
|
58
|
|
|
(99)
|
|
|
5
|
|
|
(38)
|
|
|
(23)
|
|
|
110
|
|
|
40
|
|
|
(27)
|
|
14,
18
|
|
Net cash used for
investing activities
|
|
|
(1,034)
|
|
|
(991)
|
|
|
(4,308)
|
|
|
(1,216)
|
|
|
(408)
|
|
|
(1,112)
|
|
|
(5,750)
|
|
|
(3,319)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in total short-term borrowings
|
|
|
65
|
|
|
(177)
|
|
|
753
|
|
|
(1,183)
|
|
|
|
|
|
|
|
|
818
|
|
|
(1,360)
|
|
|
|
Change in
intercompany receivables/payables
|
|
|
(354)
|
|
|
(3,207)
|
|
|
354
|
|
|
3,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
long-term borrowings
|
|
|
11
|
|
|
4,586
|
|
|
8,711
|
|
|
4,685
|
|
|
|
|
|
|
|
|
8,722
|
|
|
9,271
|
|
|
|
Payments of long-term
borrowings
|
|
|
(94)
|
|
|
(607)
|
|
|
(6,996)
|
|
|
(6,776)
|
|
|
|
|
|
|
|
|
(7,090)
|
|
|
(7,383)
|
|
|
|
Proceeds from
issuance of common stock
|
|
|
148
|
|
|
331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
148
|
|
|
331
|
|
|
|
Repurchases of common
stock
|
|
|
(2,538)
|
|
|
(750)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,538)
|
|
|
(750)
|
|
|
|
Dividends
paid
|
|
|
(1,040)
|
|
|
(956)
|
|
|
(555)
|
|
|
(386)
|
|
|
555
|
|
|
386
|
|
|
(1,040)
|
|
|
(956)
|
|
14
|
|
Other
|
|
|
(61)
|
|
|
(105)
|
|
|
(29)
|
|
|
(7)
|
|
|
(8)
|
|
|
(21)
|
|
|
(98)
|
|
|
(133)
|
|
14
|
|
Net cash provided by
(used for) financing activities
|
|
|
(3,863)
|
|
|
(885)
|
|
|
2,238
|
|
|
(460)
|
|
|
547
|
|
|
365
|
|
|
(1,078)
|
|
|
(980)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash, Cash
Equivalents, and Restricted Cash
|
|
|
41
|
|
|
76
|
|
|
14
|
|
|
(44)
|
|
|
|
|
|
|
|
|
55
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash, Cash Equivalents, and
Restricted Cash
|
|
|
1,044
|
|
|
2,960
|
|
|
(91)
|
|
|
256
|
|
|
|
|
|
|
|
|
953
|
|
|
3,216
|
|
|
|
Cash, Cash
Equivalents, and Restricted Cash at
Beginning of Year
|
|
|
6,156
|
|
|
3,196
|
|
|
1,016
|
|
|
760
|
|
|
|
|
|
|
|
|
7,172
|
|
|
3,956
|
|
|
|
Cash, Cash
Equivalents, and Restricted Cash at
End of Year
|
|
$
|
7,200
|
|
$
|
6,156
|
|
$
|
925
|
|
$
|
1,016
|
|
|
|
|
|
|
|
$
|
8,125
|
|
$
|
7,172
|
|
|
|
|
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
direct lease agreements with retail 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 Years
Ended
|
|
Operations
|
Precision
Ag
|
& Turf
|
&
Forestry
|
|
|
|
October 31
|
November 1
|
October 31
|
November 1
|
October 31
|
November 1
|
October 31
|
November 1
|
|
Dollars in millions
|
|
2021
|
2020
|
2021
|
2020
|
2021
|
2020
|
2021
|
2020
|
|
Net Sales
|
|
$
|
39,737
|
|
$
|
31,272
|
|
$
|
16,509
|
|
$
|
12,962
|
|
$
|
11,860
|
|
$
|
9,363
|
|
$
|
11,368
|
|
$
|
8,947
|
|
|
Net Sales - excluding
Wirtgen
|
|
|
|
|
|
28,348
|
|
|
|
|
|
12,962
|
|
|
|
|
|
9,363
|
|
|
|
|
|
6,023
|
|
|
Average Identifiable
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With Inventories at
LIFO
|
|
$
|
16,680
|
|
$
|
16,593
|
|
$
|
6,640
|
|
$
|
6,194
|
|
$
|
3,625
|
|
$
|
3,536
|
|
$
|
6,415
|
|
$
|
6,863
|
|
|
With Inventories at
LIFO - excluding Wirtgen
|
|
|
|
|
|
12,599
|
|
|
|
|
|
6,194
|
|
|
|
|
|
3,536
|
|
|
|
|
|
2,869
|
|
|
With Inventories at
Standard Cost
|
|
|
18,045
|
|
|
18,010
|
|
|
7,321
|
|
|
6,901
|
|
|
4,047
|
|
|
3,979
|
|
|
6,677
|
|
|
7,130
|
|
|
With Inventories at
Standard Cost - excluding Wirtgen
|
|
|
|
|
|
14,016
|
|
|
|
|
|
6,901
|
|
|
|
|
|
3,979
|
|
|
|
|
|
3,136
|
|
|
Operating
Profit
|
|
$
|
6,868
|
|
$
|
3,559
|
|
$
|
3,334
|
|
$
|
1,969
|
|
$
|
2,045
|
|
$
|
1,000
|
|
$
|
1,489
|
|
$
|
590
|
|
|
Operating Profit -
excluding Wirtgen
|
|
|
|
|
|
3,289
|
|
|
|
|
|
1,969
|
|
|
|
|
|
1,000
|
|
|
|
|
|
320
|
|
|
Percent of Net
Sales**
|
|
|
17.3
|
%
|
|
11.6
|
%
|
|
20.2
|
%
|
|
15.2
|
%
|
|
17.2
|
%
|
|
10.7
|
%
|
|
13.1
|
%
|
|
5.3
|
%
|
|
Operating Return on
Assets**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With Inventories at
LIFO
|
|
|
41.2
|
%
|
|
26.1
|
%
|
|
50.2
|
%
|
|
31.8
|
%
|
|
56.4
|
%
|
|
28.3
|
%
|
|
23.2
|
%
|
|
11.2
|
%
|
|
With Inventories at
Standard Cost
|
|
|
38.1
|
%
|
|
23.5
|
%
|
|
45.5
|
%
|
|
28.5
|
%
|
|
50.5
|
%
|
|
25.1
|
%
|
|
22.3
|
%
|
|
10.2
|
%
|
|
SVA Cost of
Assets**
|
|
$
|
(2,165)
|
|
$
|
(1,683)
|
|
$
|
(878)
|
|
$
|
(829)
|
|
$
|
(486)
|
|
$
|
(478)
|
|
$
|
(801)
|
|
$
|
(376)
|
|
|
SVA**
|
|
|
4,703
|
|
|
1,606
|
|
|
2,456
|
|
|
1,140
|
|
|
1,559
|
|
|
522
|
|
|
688
|
|
|
(56)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years
Ended
|
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 31
|
November 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
881
|
|
$
|
566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Equity
|
|
|
5,497
|
|
|
5,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
Equity
|
|
|
16.0
|
%
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
$
|
1,144
|
|
$
|
746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Equity
|
|
|
(719)
|
|
|
(673)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SVA
|
|
|
425
|
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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-net-income-of-1-283-billion-for-fourth-quarter-5-963-billion-for-fiscal-year-301431381.html
SOURCE Deere & Company