John Deere 2013 Annual Report Download - page 52

25. OTHER COMPREHENSIVE INCOME ITEMS
The after-tax changes in accumulated other comprehensive
income in millions of dollars follow:
Retirement Cumulative Unrealized Unrealized
Benefits Translation Gain (Loss) on Gain (Loss) on
Adjustment Adjustment Derivatives Investments
October 31, 2010 $ (3,797) $ 436 $ (30) $ 11
Current period (338) 18 21 1
October 31, 2011 (4,135) 454 (9) 12
Current period (624) (270) (5) 5
October 31, 2012 (4,759) 184 (14) 17
Current period 1,950 (71) 11 (11)
October 31, 2013 $ (2,809) $ 113 $ (3) $ 6
Following are reclassifications and income tax effects
included in other comprehensive income (loss) in millions
of dollars:
Before Tax After
Tax ( Expense) Tax
Amount Credit Amount
2011
Retirement benefits adjustment:
Net actuarial loss and
prior service cost .............................. $ (989) $ 368 $ (621)
Reclassification of actuarial loss
and prior service cost to net income ... 450 (167) 283
Net unrealized loss ................................ (539) 201 (338)
Cumulative translation adjustment .............. 14 4 18
Unrealized gain on derivatives:
Hedging gain ......................................... 31 (11) 20
Reclassification of realized loss
to net income .................................... 1 1
Net unrealized gain ................................ 32 (11) 21
Unrealized holding gain and net
unrealized gain on investments .............. 2 (1) 1
Total other comprehensive income (loss) .... $ (491) $ 193 $ (298)
2012
Retirement benefits adjustment:
Net actuarial loss and
prior service cost .............................. $ (1,341) $ 477 $ (864)
Reclassification of actuarial loss
and prior service cost to net income ... 380 (140) 240
Net unrealized loss ................................ (961) 337 (624)
Cumulative translation adjustment .............. (272) 2 (270)
Unrealized loss on derivatives:
Hedging loss ......................................... (61) 21 (40)
Reclassification of realized loss
to net income .................................... 54 (19) 35
Net unrealized loss ................................ (7) 2 (5)
Unrealized holding gain and net
unrealized gain on investments .............. 7 (2) 5
Total other comprehensive income (loss) .... $ (1,233 ) $ 339 $ (894)
(continued)
Before Tax After
Tax ( Expense) Tax
Amount Credit Amount
2013
Retirement benefits adjustment:
Net actuarial gain and
prior service credit ............................ $ 2,674 $ (978) $ 1,696
Reclassification of actuarial loss
and prior service cost to net income ... 412 (158) 254
Net unrealized gain ................................ 3,086 (1,136 ) 1,950
Cumulative translation adjustment .............. ( 74 ) 3 (71)
Unrealized gain on derivatives:
Hedging gain ......................................... 43 (14) 29
Reclassification of realized gain
to net income .................................... (27) 9 (18)
Net unrealized gain ................................ 16 (5) 11
Unrealized holding loss and net
unrealized loss on investments ............... (17) 6 (11)
Total other comprehensive income (loss) .... $ 3,011 $ (1,132) $ 1,879
The noncontrolling interests’ comprehensive income was
$.4 million in 2013, $6.6 million in 2012 and $7.9 million in
2011, which consisted of net income of $.3 million in 2013,
$6.9 million in 2012 and $7.9 million in 2011 and cumulative
translation adjustments of $.1 million in 2013, $(.3) million in
2012 and none in 2011.
26. FAIR VALUE MEASUREMENTS
The fair values of financial instruments that do not approximate
the carrying values at October 31 in millions of dollars follow:
2013 2012
______________ ______________
Carrying Fair Carrying Fair
Value Value* Value Value*
Financing receivables – net .............. $ 25,63 3 $ 25,572 $ 22,159 $ 22,244
Financing receivables
securitized – net .......................... $ 4,153 $ 4,124 $ 3,618 $ 3,615
Short-term securitization
borrowings .................................. $ 4,109 $ 4,113 $ 3,575 $ 3,584
Long-term borrowings due
within one year:
Equipment operations .............. $ 821 $ 837 $ 195 $ 194
Financial services .................... 4,408 4,441 4,790 4,871
Total ....................................... $ 5,229 $ 5,278 $ 4,985 $ 5,065
Long-term borrowings:
Equipment operations .................. $ 4,871 $ 5,141 $ 5,445 $ 6,237
Financial services ........................ 16,707 16,887 17,0 08 17,4 38
Total ....................................... $ 21,578 $ 22,028 $ 22,453 $ 23,675
* Fair value measurements above were Level 3 for all financing receivables and
Level 2 for all borrowings.
Fair values of the financing receivables that were issued
long-term were based on the discounted values of their related
cash flows at interest rates currently being offered by the
company for similar financing receivables. The fair values of
the remaining financing receivables approximated the carrying
amounts.
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