John Deere 2014 Annual Report Download - page 52

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Other intangible assets are stated at cost less accumulated
amortization. The amortization of other intangible assets in
2014, 2013 and 2012 was $11 million, $22 million and
$21 million, respectively. The estimated amortization expense
for the next five years is as follows in millions of dollars:
2015 - $10, 2016 - $9, 2017 - $9, 2018 – $5 and 2019 - $5.
18. TOTAL SHORT-TERM BORROWINGS
Total short-term borrowings at October 31 consisted of the
following in millions of dollars:
2014 2013
Equipment Operations
Commercial paper ....................................................... $ 45
Notes payable to banks ................................................ 146 $ 259
Long-term borrowings due within one year ................... 243 821
Total ....................................................................... 434 1,080
Financial Services
Commercial paper ....................................................... 2,588 3,162
Notes payable to banks ................................................ 267 139
Long-term borrowings due within one year* .................. 4,730 4,408
Total ....................................................................... 7,585 7,70 9
Short-term borrowings ............................................ 8,019 8,789
Financial Services
Short-term securitization borrowings ............................ 4,559 4,109
Total short-term borrowings ................................... $ 12,578 $ 12,898
* Includes unamortized fair value adjustments related to interest rate swaps.
The short-term securitization borrowings for financial
services are secured by financing receivables (retail notes) on
the balance sheet (see Note 13). Although these securitization
borrowings are classified as short-term since payment is required
if the retail notes are liquidated early, the payment schedule for
these borrowings of $4,559 million at October 31, 2014 based
on the expected liquidation of the retail notes in millions of
dollars is as follows: 2015 - $2,383, 2016 - $1,342, 2017 - $636,
2018 - $176, 2019 - $21 and 2020 - $1.
The weighted-average interest rates on total short-term
borrowings, excluding current maturities of long-term
borrowings, at October 31, 2014 and 2013 were 1.0 percent
and .8 percent, respectively.
Lines of credit available from U.S. and foreign banks were
$6,413 million at October 31, 2014. At October 31, 2014,
$3,367 million of these worldwide lines of credit were unused.
For the purpose of computing the unused credit lines, com-
mercial paper and short-term bank borrowings, excluding
secured borrowings and the current portion of long-term
borrowings, were primarily considered to constitute utilization.
Included in the above lines of credit were long-term credit
facility agreements for $2,500 million, expiring in April 2018,
and $2,500 million, expiring in April 2019. The agreements
are mutually extendable and the annual facility fees are not
significant. These credit agreements require Capital Corporation
17. GOODWILL AND OTHER INTANGIBLE ASSETS-NET
The changes in amounts of goodwill by operating segments
were as follows in millions of dollars:
Agriculture Construction
and and
Turf Forestry Total
Balance at October 31, 2012 .............. $ 686 $ 584 $ 1,270
Less accumulated
impairment losses ...................... 349 349
Net balance ................................... 337 584 921
Reclassification to assets
held for sale** ................................ (395) (395)
Acquisition* ........................................ 13 13
Translation adjustments and other ....... (2) 19 17
Balance at October 31, 2013 .............. 302 603 905
Less accumulated
impairment losses** ................... 60 60
Net balance ................................... 242 603 845
Divestiture*** ..................................... (60) (60)
Translation adjustments and other ....... (7) (47) (54)
Balance at October 31, 2014 .............. 235 556 791
Less accumulated
impairment losses***..................
Goodwill ........................................... $ 235 $ 556 $ 791
* See Note 4.
** Accumulated impairment losses were also reduced by $289 million related to
Landscapes reclassification to held for sale (see Note 4).
*** Accumulated impairment losses were also reduced by $60 million related to the sale
of the Water operations (see Note 4).
The components of other intangible assets are as follows
in millions of dollars:
Useful Lives*
(Years) 2014 2013
Amortized intangible assets:
Customer lists and relationships ........... 15 $ 20 $ 20
Technology, patents, trademarks
and other ........................................ 19 90 88
Total at cost .................................... 110 108
Less accumulated amortization** ......... 45 35
Total ............................................... 65 73
Unamortized intangible assets:
Licenses ............................................. 4 4
Other intangible assets-net ................ $ 69 $ 77
* Weighted-averages
** Accumulated amortization at 2014 and 2013 for customer lists and relationships
was $9 million and $8 million and technology, patents, trademarks and other was
$36 million and $27 million, respectively.