John Deere 2015 Annual Report Download - page 62

The products and services produced by the segments OPERATING SEGMENTS 2015 2014 2013
above are marketed primarily through independent retail dealer Interest income*
networks and major retail outlets. Agriculture and turf .............................. $ 14 $ 17 $ 24
The financial services segment primarily finances sales and Construction and forestry ...................... 2 1 2
Financial services ................................. 1,687 1,754 1,668
leases by John Deere dealers of new and used agriculture and
Corporate ........................................... 61 57 55
turf equipment and construction and forestry equipment. In Intercompany ...................................... (253) (268) (247)
addition, the financial services segment provides wholesale
financing to dealers of the foregoing equipment, finances retail Total .............................................. $ 1,511 $ 1,561 $ 1,502
revolving charge accounts and offers extended equipment * Does not include finance rental income for equipment on operating leases.
warranties.
Interest expense
Because of integrated manufacturing operations and Agriculture and turf .............................. $ 160 $ 175 $ 167
common administrative and marketing support, a substantial Construction and forestry ...................... 45 37 36
number of allocations must be made to determine operating Financial services ................................. 455 431 488
segment and geographic area data. Intersegment sales and Corporate ........................................... 273 289 297
revenues represent sales of components and finance charges, Intercompany ...................................... (253) (268) (247)
which are generally based on market prices. Total .............................................. $ 680 $ 664 $ 741
Information relating to operations by operating segment in
millions of dollars follows. In addition to the following Depreciation* and amortization expense
unaffiliated sales and revenues by segment, intersegment sales Agriculture and turf .............................. $ 659 $ 681 $ 627
and revenues in 2015, 2014 and 2013 were as follows: Construction and forestry ...................... 133 115 106
agriculture and turf net sales of $49 million, $89 million and Financial services ................................. 590 511 407
$69 million, construction and forestry net sales of $1 million, Total .............................................. $ 1,382 $ 1,307 $ 1,140
$1 million and $2 million, and financial services revenues of * Includes depreciation for equipment on operating leases.
$225 million, $228 million and $220 million, respectively.
Equity in income (loss) of
OPERATING SEGMENTS 2015 2014 2013 unconsolidated affiliates
Net sales and revenues Agriculture and turf .............................. $ 7 $ 8 $ (1)
Unaffiliated customers: Construction and forestry ...................... (7) (18)
Agriculture and turf net sales .............. $19,812 $26,380 $29,132 Financial services ................................. 1 2 1
Construction and forestry net sales ...... 5,963 6,581 5,866 Total .............................................. $ 1 $ (8)
Total net sales .............................. 25,775 32,961 34,998
Financial services revenues..................... 2,591 2,577 2,349 Identifiable operating assets
Other revenues* .................................. 497 529 448 Agriculture and turf .............................. $ 8,332 $ 9,442 $10,799
Construction and forestry ...................... 3,295 3,405 3,461
Total ................................................. $28,863 $36,067 $37,795 Financial services ................................. 40,909 42,784 38,646
* Other revenues are primarily the equipment operations’ revenues for finance Corporate* ......................................... 5,412 5,705 6,615
and interest income, and other income as disclosed in Note 31, net of Total .............................................. $57,948 $61,336 $59,521
certain intercompany eliminations.
* Corporate assets are primarily the equipment operations’ retirement benefits,
Operating profit deferred income tax assets, marketable securities and cash and cash
Agriculture and turf .............................. $ 1,649 $ 3,649 $ 4,680 equivalents as disclosed in Note 31, net of certain intercompany
Construction and forestry ...................... 528 648 378 eliminations.
Financial services*................................ 963 921 870
Capital additions
Total operating profit ........................ 3,140 5,218 5,928 Agriculture and turf .............................. $ 522 $ 868 $ 981
Interest income ................................... 61 57 55 Construction and forestry ...................... 138 145 174
Investment income ............................... 2 2 Financial services ................................. 6 3 3
Interest expense .................................. (273) (289) (297) Total .............................................. $ 666 $ 1,016 $ 1,158
Foreign exchange gains (losses) from
equipment operations’ financing Investments in unconsolidated affiliates
activities ......................................... 13 (2) (8) Agriculture and turf .............................. $ 116 $ 110 $ 24
Corporate expenses – net ...................... (160) (196) (197) Construction and forestry ...................... 177 182 187
Income taxes....................................... (840) (1,627) (1,946) Financial services ................................. 10 11 10
Total .............................................. (1,199) (2,055) (2,391) Total .............................................. $ 303 $ 303 $ 221
Net income ......................................... 1,941 3,163 3,537
Less: Net income attributable to
noncontrolling interests ..................... 1 1
Net income attributable to
Deere & Company ............................. $ 1,940 $ 3,162 $ 3,537
* Operating profit of the financial services business segment includes the
effect of its interest expense and foreign exchange gains or losses.
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