John Deere 2009 Annual Report Download - page 48

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Because of integrated manufacturing operations and
common administrative and marketing support, a substantial
number of allocations must be made to determine operating
segment and geographic area data. Intersegment sales and
revenues represent sales of components and fi nance charges,
which are generally based on market prices.
Information relating to operations by operating segment
in millions of dollars follows. In addition to the following
unaffi liated sales and revenues by segment, intersegment sales
and revenues in 2009, 2008 and 2007 were as follows:
agriculture and turf net sales of $32 million, $40 million and
$75 million, construction and forestry net sales of $4 million,
$8 million and $9 million, and credit revenues of $248 million,
$257 million and $276 million, respectively.
OPERATING SEGMENTS 2009 2008 2007
Net sales and revenues
Unaffi liated customers:
Agriculture and turf net sales ................. $ 18,122 $ 20,985 $ 16,454
Construction and forestry
net sales ........................................... 2,634 4,818 5,035
Total net sales ................................... 20,756 25,803 21,489
Credit revenues ......................................... 1,930 2,190 2,094
Other revenues* ........................................ 426 445 499
Total ........................................................ $ 23,112 $ 28,438 $ 24,082
* Other revenues are primarily the Equipment Operations’ revenues for fi nance
and interest income, and other income as disclosed in Note 31, net of certain
intercompany eliminations.
Operating profi t (loss)
Agriculture and turf .................................... $ 1,448 $ 2,461 $ 1,747
Construction and forestry ........................... (83) 466 571
Credit* ...................................................... 223 478 548
Other ........................................................ 19 15 5
Total operating profi t.............................. 1,607 3,420 2,871
Interest income .......................................... 46 87 103
Investment income .................................... 10 75
Interest expense ........................................ (163) (184) (181)
Foreign exchange gain (loss) from
equipment operations’ fi nancing
activities ............................................... (40) (13) 3
Corporate expenses – net .......................... (117) (156) (166)
Income taxes ............................................. (460) (1,111) (883)
Total ..................................................... (734) (1,367) (1,049)
Net income.............................................. $ 873 $ 2,053 $ 1,822
* Operating profi t of the credit business segment includes the effect of its interest
expense and foreign exchange gains or losses.
Interest income*
Agriculture and turf .................................... $ 28 $ 17 $ 16
Construction and forestry ........................... 4 3 4
Credit ........................................................ 1,584 1,753 1,758
Corporate .................................................. 46 87 103
Intercompany ............................................ (273) (288) (293)
Total ..................................................... $ 1,389 $ 1,572 $ 1,588
* Does not include fi nance rental income for equipment on operating leases.
(continued)
OPERATING SEGMENTS 2009 2008 2007
Interest expense
Agriculture and turf .................................... $ 208 $ 198 $ 208
Construction and forestry ........................... 19 34 39
Credit ........................................................ 925 1,009 1,017
Corporate .................................................. 163 184 181
Intercompany ............................................ (273) (288) (294)
Total ..................................................... $ 1,042 $ 1,137 $ 1,151
Depreciation* and amortization
expense
Agriculture and turf .................................... $ 438 $ 403 $ 354
Construction and forestry ........................... 78 81 75
Credit ........................................................ 357 347 315
Total ..................................................... $ 873 $ 831 $ 744
* Includes depreciation for equipment on operating leases.
Equity in income (loss) of
unconsolidated affi liates
Agriculture and turf .................................... $ 14 $ 17 $ 13
Construction and forestry ........................... (21) 22 16
Credit ........................................................ 1 1
Total ..................................................... $ (6) $ 40 $ 29
Identifi able operating assets
Agriculture and turf .................................... $ 6,526 $ 7,041 $ 5,916
Construction and forestry ........................... 2,132 2,356 2,334
Credit ........................................................ 25,698 24,866 23,518
Other ........................................................ 266 259 193
Corporate* ................................................ 6,511 4,213 6,615
Total ..................................................... $ 41,133 $ 38,735 $ 38,576
* Corporate assets are primarily the Equipment Operations’ retirement benefi ts,
deferred income tax assets, marketable securities and cash and cash equivalents
as disclosed in Note 31, net of certain intercompany eliminations.
Capital additions
Agriculture and turf .................................... $ 702 $ 680 $ 471
Construction and forestry ........................... 95 108 118
Credit ........................................................ 1 359 475
Total ..................................................... $ 798 $ 1,147 $ 1,064
Investment in unconsolidated affi liates
Agriculture and turf .................................... $ 57 $ 48 $ 41
Construction and forestry ........................... 149 171 104
Credit ........................................................ 7 5 5
Total ..................................................... $ 213 $ 224 $ 150