John Deere 2011 Annual Report Download - page 47

The market/service based units are subject to a market related
metric based on total shareholder return, compared to the same
benchmark group of companies over the vesting period.
The performance/service based units and the market/service
based units both award common stock in a range of zero to
200 percent for each unit granted based on the level of the
metric achieved and do not include dividend equivalent
payments over the vesting period. The weighted-average fair
value of the service based only units at the grant dates was
$81.90 per unit based on the market price of a share of underly-
ing common stock. The fair value of the performance/service
based units at the grant date was $76.17 per unit based on the
market price of a share of underlying common stock excluding
dividends. The fair value of the market/service based units at
the grant date was $107.31 per unit based on a lattice valuation
model excluding dividends.
The company’s nonvested restricted shares at October 31,
2011 and changes during 2011 in millions of shares follow:
Grant-Date
Shares Fair Value*
Service based only
Nonvested at beginning of year ............................. .7 $ 54.62
Granted ................................................................ .1 81.90
Vested ................................................................. (.2) 84.68
Nonvested at end of year ...................................... .6 49.91
Performance/service and
market/service based
Granted ................................................................ .1 91.74
Nonvested at end of year ...................................... .1 91.74
* Weighted-averages
During 2011, 2010 and 2009, the total share-based
compensation expense was $69 million, $71 million and
$70 million, respectively, with recognized income tax benefits
of $26 million for all years. At October 31, 2011, there was
$35 million of total unrecognized compensation cost from
share-based compensation arrangements granted under the
plans, which is related to nonvested shares. This compensation
is expected to be recognized over a weighted-average period
of approximately 2 years. The total grant date fair values of
stock options and restricted shares vested during 2011, 2010 and
2009 were $72 million, $71 million and $66 million, respectively.
The company currently uses shares that have been
repurchased through its stock repurchase programs to satisfy
share option exercises. At October 31, 2011, the company
had 130 million shares in treasury stock and 54 million shares
remaining to be repurchased under its current publicly
announced repurchase program (see Note 23).
25. OTHER COMPREHENSIVE INCOME ITEMS
Other comprehensive income items are transactions recorded in
stockholders’ equity during the year, excluding net income and
transactions with stockholders. Following are the items included
in other comprehensive income (loss) for Deere & Company
and the related tax effects in millions of dollars:
Before Tax After
Tax (Expense) Tax
Amount Credit Amount
2009
Retirement benefits adjustment:
Net actuarial losses and
prior service cost .............................. $ ( 4,19 8 ) $ 1,587 $(2,611)
Reclassification of actuarial losses
and prior service cost
to net income .................................... 105 (31) 74
Net unrealized loss ................................ (4,093) 1,556 (2,537)
Cumulative translation adjustment .............. 326 1 327
Unrealized loss on derivatives:
Hedging loss ......................................... (90) 31 (59)
Reclassification of realized loss
to net income .................................... 84 (29) 55
Net unrealized loss ................................ (6) 2 (4)
Unrealized gain on investments:
Holding loss .......................................... (793) 278 ( 515)
Reclassification of realized
loss to net income ............................. 805 (282) 523
Net unrealized gain ................................ 12 (4) 8
Total other comprehensive income (loss) .... $ (3,761) $ 1,555 $ (2,206)
2010
Retirement benefits adjustment:
Net actuarial losses and
prior service cost .............................. $ (213 ) $ 77 $ (136)
Reclassification of actuarial losses
and prior service cost
to net income .................................... 474 (180) 294
Net unrealized gain ................................ 261 (103) 158
Cumulative translation adjustment .............. 49 (13) 36
Unrealized loss on derivatives:
Hedging loss ......................................... (56) 19 (37)
Reclassification of realized loss
to net income .................................... 79 (27) 52
Net unrealized gain ................................ 23 (8) 15
Unrealized holding gain and net
unrealized gain on investments .............. 8 (3) 5
Total other comprehensive income (loss) .... $ 341 $ (127) $ 214
(continued)
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