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8-K - 8-K - DEERE & COa12-18191_18k.htm
EX-99.3 - EX-99.3 - DEERE & COa12-18191_1ex99d3.htm
EX-99.1 - EX-99.1 - DEERE & COa12-18191_1ex99d1.htm

 

 

 

 

Exhibit 99.2

 

 

(Furnished herewith)

Deere & Company

Other Financial Information

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended July 31,

 

Equipment Operations

 

 

Agriculture and Turf

 

 

Construction and Forestry

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dollars in millions

 

2012

 

2011

 

 

2012

 

2011

 

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

24,454

 

$

21,563

 

 

$

19,730

 

$

17,740

 

 

$

4,724

 

$

3,823

 

Average Identifiable Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With Inventories at LIFO

 

$

13,531

 

$

11,360

 

 

$

10,410

 

$

8,773

 

 

$

3,121

 

$

2,587

 

With Inventories at Standard Cost

 

$

14,915

 

$

12,715

 

 

$

11,566

 

$

9,921

 

 

$

3,349

 

$

2,794

 

Operating Profit

 

$

3,347

 

$

2,883

 

 

$

2,991

 

$

2,579

 

 

$

356

 

$

304

 

Percent of Net Sales

 

13.7

%

13.4

%

 

15.2

%

14.5

%

 

7.5

%

8.0

%

Operating Return on Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With Inventories at LIFO

 

24.7

%

25.4

%

 

28.7

%

29.4

%

 

11.4

%

11.8

%

With Inventories at Standard Cost

 

22.4

%

22.7

%

 

25.9

%

26.0

%

 

10.6

%

10.9

%

SVA Cost of Assets

 

$

(1,343

)

$

(1,144

)

 

$

(1,041

)

$

(893

)

 

$

(302

)

$

(251

)

SVA

 

$

2,004

 

$

1,739

 

 

$

1,950

 

$

1,686

 

 

$

54

 

$

53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended July31,

 

Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dollars in millions

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to Deere & Company

 

$

339

 

$

349

 

 

 

 

 

 

 

 

 

 

 

Average Equity

 

$

3,396

 

$

3,168

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

10.0

%

11.0

%

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

$

520

 

$

529

 

 

 

 

 

 

 

 

 

 

 

Average Equity

 

$

3,396

 

$

3,168

 

 

 

 

 

 

 

 

 

 

 

Cost of Equity

 

$

(391

)

$

(358

)

 

 

 

 

 

 

 

 

 

 

SVA

 

$

129

 

$

171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company evaluates its business results on the basis of accounting principles generally accepted in the United States.  In addition, it uses a metric referred to as Shareholder Value Added (SVA), which management believes is an appropriate measure for the performance of its businesses.  SVA is, in effect, the pretax profit left over after subtracting the cost of enterprise capital.  The Company is aiming for a sustained creation of SVA and is using this metric for various performance goals.  Certain compensation is also determined on the basis of performance using this measure.  For purposes of determining SVA, each of the equipment segments is assessed a pretax cost of assets, which on an annual basis is approximately 12 percent of the segment’s average identifiable operating assets during the applicable period with inventory at standard cost.  Management believes that valuing inventories at standard cost more closely approximates the current cost of inventory and the Company’s investment in the asset.  The Financial Services segment is assessed an annual pretax cost of approximately 15 percent of the segment’s average equity.  The cost of assets or equity, as applicable, is deducted from the operating profit or added to the operating loss of each segment to determine the amount of SVA.

 

 

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