SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
___________________
FORM 10-Q
___________________
Quarterly Report Pursuant to Section 13 or 15(d)
of the
Securities Exchange Act of 1934
For the quarterly period ended April 30, 1995
Commission file no: 1-6458
______________________________
JOHN DEERE CAPITAL CORPORATION
Delaware 36-2386361
(State of incorporation) (IRS employer
identification no.)
Suite 600
First Interstate Bank Building
1 East First Street
Reno, Nevada 89501
(Address of principal executive offices)
Telephone Number: (702) 786-5527
______________________________
Indicate by check mark whether the registrant (1) has filed
all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the
preceding 12 months (or for such shorter period that the
registrant was required to file
such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
At April 30, 1995, 2,500 shares of common stock, without par
value, of the
registrant were outstanding, all of which were owned by John
Deere Credit Company,
a wholly-owned subsidiary of Deere & Company.
The registrant meets the conditions set forth in General
Instruction H(1)(a) and
(b) of Form 10-Q and is therefore filing this Form with certain
reduced disclosures as
permitted by those instructions.
Page 1 of 17 Pages.
Index to Exhibits: Page 15.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
JOHN DEERE CAPITAL CORPORATION AND SUBSIDIARIES
Condensed Statement of Consolidated Income
(UNAUDITED)
(In millions of dollars)
Three Months Ended
April 30
1995 1994
Revenues:
Finance income earned on retail notes $ 87.4 $ 68.6
Revolving charge account income 18.3 14.3
Lease revenues 12.2 10.8
Finance income earned on wholesale notes 5.5 2.8
Net gain on retail notes sold 10.4 1.0
Interest income from short-term investments 2.6 1.5
Securitization and servicing fee income 7.0 7.1
Other income .9 1.1
Total revenues 144.3 107.2
Expenses:
Interest expense 60.6 36.3
Administrative and operating expenses 19.3 21.8
Provision for credit losses 6.5 2.4
Fees paid to Deere & Company 1.3 1.5
Depreciation of equipment on
operating leases 5.3 5.3
Total expenses 93.0 67.3
Income before Income Taxes 51.3 39.9
Provision for Income Taxes 18.0 14.0
Net Income $ 33.3 $ 25.9
______________
See Notes to Interim Financial Statements
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
JOHN DEERE CAPITAL CORPORATION AND SUBSIDIARIES
Condensed Statement of Consolidated Income
(UNAUDITED)
(In millions of dollars)
Six Months Ended
April 30
1995 1994
Revenues:
Finance income earned on retail notes $166.6 $134.5
Revolving charge account income 37.0 27.7
Lease revenues 23.1 20.9
Finance income earned on wholesale notes 9.5 5.3
Net gain on retail notes sold 10.7 2.1
Interest income from short-term investments 5.4 3.0
Securitization and servicing fee income 16.5 16.7
Other income 1.7 1.7
Total revenues 270.5 211.9
Expenses:
Interest expense 115.7 72.3
Administrative and operating expenses 36.7 39.5
Provision for credit losses 11.5 11.5
Fees paid to Deere & Company 2.6 3.0
Depreciation of equipment on
operating leases 10.5 10.4
Total expenses 177.0 136.7
Income before Income Taxes 93.5 75.2
Provision for Income Taxes 32.8 26.3
Net Income $ 60.7 $ 48.9
______________
See Notes to Interim Financial Statements
<PAGE>
JOHN DEERE CAPITAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
(UNAUDITED)
(In millions of dollars)
Apr 30 Oct 31 Apr 30
1995 1994 1994
ASSETS
Cash and Cash Equivalents $ 307.0 $ 42.9 $ 152.2
Receivables and Leases:
Retail notes 2,972.2 3,289.2 3,158.4
Revolving charge accounts 409.9 437.3 328.1
Financing leases 135.2 117.7 92.8
Wholesale notes 225.0 142.2 122.4
Total receivables 3,742.3 3,986.4 3,701.7
Equipment on operating leases 128.1 125.2 130.1
Total receivables and leases 3,870.4 4,111.6 3,831.8
Allowance for credit losses (74.4) (80.1) (75.0)
Total receivables and
leases - net 3,796.0 4,031.5 3,756.8
Other Receivables 214.3 155.1 137.5
Other Assets 66.4 60.1 55.7
TOTAL $4,383.7 $4,289.6 $4,102.2
LIABILITIES AND STOCKHOLDER'S EQUITY
Short-Term Borrowings:
Commercial paper $1,524.6 $1,580.7 $1,512.0
Deere & Company 328.4 102.7 116.8
Current maturities of long-term
borrowings 205.5 632.8 631.6
Total short-term borrowings 2,058.5 2,316.2 2,260.4
Accounts Payable and Accrued
Liabilities 191.2 180.2 159.2
Deposits Withheld from Dealers and
Merchants 115.0 111.4 102.3
Long-Term Borrowings:
Notes and debentures 1,023.7 734.5 645.2
Subordinated debt 300.0 300.0 300.0
Total long-term borrowings 1,323.7 1,034.5 945.2
Retirement Benefit Accruals &
Other Liabilities 15.6 13.3 17.1
Stockholder's Equity:
Common stock, without par value
(authorized, issued and
outstanding - 2,500 shares owned
by John Deere Credit Company) 112.8 112.8 112.8
Retained earnings 566.9 521.2 505.2
Total stockholder's equity 679.7 634.0 618.0
TOTAL $4,383.7 $4,289.6 $4,102.2
See Notes to Interim Financial Statements
<PAGE>
JOHN DEERE CAPITAL CORPORATION AND SUBSIDIARIES
Condensed Statement of Consolidated Cash Flows
(UNAUDITED)
(In millions of dollars)
Six Months Ended
April 30
1995 1994
Cash Flows from Operating Activities:
Net income $ 60.7 $ 48.9
Adjustments to reconcile net income
to net cash provided by
operating activities (3.6) 27.8
Net cash provided by operating
activities 57.1 76.7
Cash Flows from Investing Activities:
Cost of receivables and leases
acquired (2,145.9) (1,827.8)
Collections of receivables 1,569.9 1,385.8
Proceeds from sales of
receivables 723.4 10.6
Other 43.3 83.3
Net cash provided by (used for)
investing activities 190.7 (348.1)
Cash Flows from Financing Activities:
Increase (decrease) in notes
payable to others (56.2) 1,058.0
Change in receivable/payable with
Deere & Company 225.8 (322.7)
Proceeds from the issuance of
long-term borrowings 405.0 10.0
Principal payment on long-term
borrowings (543.3) (316.9)
Dividends paid (15.0) (170.0)
Net cash provided by (used for)
financing activities 16.3 258.4
Net increase (decrease) in cash and
cash equivalents 264.1 (13.0)
Cash and cash equivalents at beginning
of period 42.9 165.2
Cash and cash equivalents at end
of period $ 307.0 $ 152.2
_______________
See Notes to Interim Financial Statements<PAGE>
Notes to Interim Financial Statements
Notes to Interim Financial Statements
(1) The consolidated financial statements of John Deere Capital
Corporation (Capital
Corporation) and its wholly owned subsidiaries, Deere
Credit, Inc. (DCI), Deere
Credit Services, Inc. (DCS), Farm Plan Corporation (FPC) and
John Deere
Receivables, Inc. (JDRI), (collectively referred to as the
Company) have been
prepared by the Company, without audit, pursuant to the
rules and regulations of
the Securities and Exchange Commission. Certain information
and footnote
disclosures normally included in annual financial statements
prepared in
accordance with generally accepted accounting principles
have been condensed
or omitted as permitted by such rules and regulations. All
adjustments, consisting
of normal recurring adjustments, have been included.
Management believes that
the disclosures are adequate to present fairly the financial
position, results of
operations and cash flows at the dates and for the periods
presented. It is
suggested that these interim financial statements be read in
conjunction with the
financial statements and the notes thereto included in the
Company s latest annual
report on Form 10-K. Results for interim periods are not
necessarily indicative of
those to be expected for the fiscal year.
(2) The principal business of the Company is providing and
administering financing for
retail purchases of new and used John Deere agricultural,
industrial and lawn and
grounds care equipment. The Company purchases retail
installment sales and
loan contracts (retail notes) from Deere & Company and its
wholly-owned
subsidiaries (collectively called John Deere). These retail
notes are acquired by
John Deere through John Deere retail dealers in the United
States. The Company
also purchases and finances retail notes unrelated to John
Deere, representing
primarily recreational vehicle and recreational marine
product notes acquired from
independent dealers of those products and from marine
product mortgage service
companies (recreational product retail notes). The Company
also leases John
Deere equipment to retail customers, finances and services
unsecured revolving
charge accounts acquired from and offered through merchants
in the agricultural,
lawn and grounds care and marine retail markets (revolving
charge accounts), and
provides financing for wholesale inventories of recreational
vehicles, manufactured
housing units, yachts and John Deere engines owned by
dealers of those products
(wholesale notes). Retail notes, revolving charge accounts,
financing leases and
wholesale notes receivable are collectively called
Receivables. Receivables and
operating leases are collectively called Receivables and
Leases.
(3) The consolidated ratio of earnings to fixed charges was 1.80
to 1 during the first
six months of this year compared with 2.02 to 1 in the
comparable period of 1994
and was 1.84 to 1 for the second quarter of 1995 compared
with 2.08 to 1 in the
same period last year. Earnings consist of income before
income taxes and
changes in accounting to which are added fixed charges.
Fixed charges consist
of interest on indebtedness, amortization of debt discount
and expense, an
estimated amount of rental expense under capitalized leases
which is deemed to
be representative of the interest factor and rental expense
under operating leases.
(4) The Company is subject to various unresolved legal actions
which arise in the
normal course of its business, the most prevalent of which
relate to state and
federal regulations concerning retail credit. Although it
is not possible to predict
with certainty the outcome of these unresolved legal actions
or the range of
possible loss, the Company believes these unresolved legal
actions will not have
a material effect on its financial position or results of
operations.
(5) Certain amounts for 1994 have been reclassified to conform
with 1995 financial
statement presentations.
<PAGE>
Item 2. Management s Discussion and Analysis of Financial
Condition and
Results of Operations.
Results of Operations
Retail notes acquired by the Company, during the first six months
of 1995, totaled $1.416
billion, an increase of 15 percent, compared with acquisitions of
$1.230 billion during the
same period last year. Retail note acquisitions from John Deere
increased by
approximately $177 million, or 16 percent, for the six months
ended April 30, 1995
compared with the same period last year primarily due to higher
retail sales of John Deere
equipment. Retail note acquisitions from John Deere continued to
represent a significant
proportion of the total United States retail sales of John Deere
equipment. Acquisitions
of recreational product retail notes were $9 million higher in
the first six months of 1995
as compared to the first six months of 1994. The primary reason
for this increase was
an increase in recreational vehicle acquisitions compared with
the same period last year.
During the second quarter of 1995, total retail note acquisitions
increased 12 percent to
$713 million compared with $639 million in the same quarter of
1994. Retail note
acquisitions from John Deere increased by $60 million in the
second quarter of 1995.
Acquisitions of recreational product retail notes increased by
$14 million in the second
quarter of 1995 as compared to the same period in 1994.
At April 30, 1995, the amount of retail notes held by the Company
was $2.972 billion
compared with $3.289 billion at October 31, 1994 and $3.158
billion at April 30, 1994.
Within this category, recreational product notes totaled $832
million, $800 million and $788
million, respectively. Retail notes decreased during the first
six months of 1995 due to the
securitization and sale of retail notes for proceeds of $723
million. This decline was
partially offset by the cost of retail notes acquired exceeding
collections by $474 million.
The amount of retail notes administered by the Company, which
includes retail notes
previously sold, totaled $4.440 billion at April 30, 1995, $4.464
billion at October 31, 1994,
and $4.055 billion at April 30, 1994. At April 30, 1995, the
unpaid balance of retail notes
previously sold was $1.468 billion compared with $1.175 billion
at October 31, 1994 and
$896 million at April 30, 1994. The Company s maximum exposure
under all retail note
recourse provisions at April 30, 1995 was $211 million.
Revolving charge accounts receivable totaled $410 million at
April 30, 1995 compared with
$437 million at October 31, 1994 and $328 million at April 30,
1994. Acquisitions
increased 10 percent in the second quarter of 1995 and 13 percent
in the first six months
of 1995 compared with the same periods last year, reflecting the
increased retail sales of
John Deere lawn and grounds care equipment, as well as an
increased volume of Farm
Plan receivable acquisitions. The balance of revolving charge
accounts receivable
increased in the first six months of 1995 due to the growth in
both Farm Plan and John
Deere Credit Revolving Plan volumes. Farm Plan and John Deere
Credit Revolving Plan
receivables at April 30, 1995 were $211 million and $199 million,
respectively, compared
to $176 million and $152 million, respectively, a year ago.
The portfolio of financing leases totaled $135 million at April
30, 1995 compared with $118
million at October 31, 1994 and $93 million at April 30, 1994.
The investment in operating
leases was $128 million, $125 million and $130 million at those
dates. The Company
also administers municipal leases owned by Deere & Company which
totaled $30 million
at April 30, 1995, $39 million at October 31, 1994 and $41
million at April 30, 1994. The
Company sold $11 million of municipal leases to Deere & Company
in the first six months
of 1994. During the first six months of 1995, the Company did
not sell municipal leases
to Deere & Company.
Wholesale notes receivable on recreational vehicle, manufactured
housing, yacht and
John Deere engine inventories totaled $225 million at April 30,
1995, $142 million at
October 31, 1994 and $122 million at April 30, 1994. Wholesale
note acquisitions
continue to be favorably impacted by the Company s growth in both
the manufactured
housing and yacht markets.
Receivables and Leases acquired totaled $2.146 billion during the
first six months of 1995,
a 17 percent increase compared with acquisitions of $1.828
billion during the same period
of 1994.
Receivables and Leases financed by the Company were $3.870
billion at April 30, 1995,
$4.112 billion at October 31, 1994 and $3.832 billion at April
30, 1994. Total Receivables
and Leases administered by the Company on those same dates were
$5.368 billion,
$5.326 billion and $4.769 billion, respectively.
The balance (principal plus accrued interest) of retail notes
held with any installment 60
days or more past due was $33 million at April 30, 1995 compared
with $24 million at
October 31, 1994 and $28 million at April 30, 1994. The amount
of retail note installments
60 days or more past due was $7.3 million at April 30, 1995, $5.5
million at October 31,
1994 and $7.8 million at April 30, 1994. These past-due
installments represented .25
percent of the unpaid balance of retail notes held at both April
30, 1995 and April 30,
1994, and .17 percent at October 31, 1994.
The balance of revolving charge accounts past due 60 days or more
was $6.0 million,
$5.6 million and $4.8 million at April 30, 1995, October 31, 1994
and April 30, 1994,
respectively. These past-due amounts represented 1.47 percent,
1.28 percent and 1.46
percent of the revolving charge accounts receivable held at those
respective dates.
The balance of financing and operating lease payments 60 days or
more past due was
$1.1 million at April 30, 1995, $.6 million at October 31, 1994
and $.7 million at
April 30, 1994. These past-due installments represented .41
percent, .24 percent and .33
percent of the investment in financing and operating leases at
those respective dates.
Receivable and Lease amounts 60 days or more past due were $14.5
million at April 30,
1995 and 1994 compared with $11.7 million at October 31, 1994.
These past-due
amounts represent .38 percent at April 30, 1995 and 1994 and .28
percent at October
31, 1994 of the total Receivables and Leases held at those dates.
Deposits withheld from dealers and merchants, representing mainly
the aggregate dealer
retail note and lease withholding accounts from individual John
Deere dealers to which
losses from retail notes and leases originating from the
respective dealers can be
charged, amounted to $115 million at April 30, 1995 compared with
$111 million at
October 31, 1994 and $102 million at April 30, 1994. The Company
s allowance for credit
losses on all Receivables and Leases financed totaled $74 million
at April 30, 1995, $80
million at October 31, 1994 and $75 million at April 30, 1994.
This allowance for credit
losses represented 1.9 percent of the unpaid balance of
Receivables and Leases financed
at both April 30, 1995 and October 31, 1994 and 2.0 percent at
April 30, 1994.
Net income was $33.3 million for the second quarter of 1995 and
$60.7 million for the first
six months of 1995 compared with $25.9 million and $48.9 million,
respectively, in the
same periods last year. Net income for both the second quarter
and the first six months
was favorably affected by increased gains on the sale of retail
notes and a larger average
Receivables and Leases portfolio financed. The average balance
of Receivables and
Leases financed was 16 percent higher in the second quarter and
18 percent higher in
the first six months of 1995 compared with the same periods last
year.
Revenues totaled $144.3 million and $270.5 million for the second
quarter and for the first
six months of 1995, respectively, compared to $107.2 million and
$211.9 million for the
same periods a year ago. Revenues increased due to a higher
overall yield on the
receivables held, a larger average portfolio financed and
increased gains on the sale of
retail notes. The ratio of earnings to fixed charges was 1.80
to 1 for the first six months
of 1995 compared with 2.02 to 1 in the same period of 1994 and
was 1.84 to 1 for the
second quarter of 1995 compared with 2.08 to 1 in the same period
last year.
Revolving charge account income and lease revenues were higher in
the first six months
of 1995 and for the second quarter compared with the same periods
in 1994, due
primarily to the higher average revolving charge and lease
portfolios financed this year.
Finance income earned on wholesale notes was up $2.7 million in
the second quarter and
$4.2 million during the first half of 1995 compared to the same
periods one year ago.
Interest expense for the second quarter was up from $36.3 million
last year to $60.6
million in 1995. Interest expense for the first six months of
1995 was $115.7 million
compared with $72.3 million during the first half of 1994. The
increases in interest
expense during the second quarter and the first six months of
1995 were as a result of
increased borrowings required to finance the higher average
Receivable and Lease
portfolios and increased interest rates. Total average
borrowings during the second
quarter and the first half of 1995 were $3.597 billion and $
3.602 billion, respectively, a
16 percent increase from last year s second quarter average
borrowings of $3.092 billion
and a 21 percent increase from the first half of 1994 average
borrowings of $2.967 billion.
The weighted average interest rate incurred on all
interest-bearing borrowings for the
second quarter and the first six months of this year was 6.4
percent and 6.3 percent,
respectively, compared to 4.3 percent and 4.7 percent,
respectively, during the same
periods last year.
Administrative and operating expenses decreased by 12 percent and
seven percent,
respectively, during the second quarter and first half of 1995 in
comparison to the same
periods last year. This decline was primarily related to reduced
legal expenses compared
to last year.
During the second quarter of 1995, the provision for credit
losses totaled $6.5 million
compared with $2.4 million in the same period last year. The
provision for credit losses
during the first six months of 1995 was approximately the same as
it was one year ago.
Write-offs of Receivables and Leases financed were $7.3 million
during the second quarter
of 1995 compared with $5.8 million last year and were $12.6
million during the first half
of 1995 compared with $14.0 million last year. Write-offs of
John Deere retail notes
totaled $1.3 million during the second quarter of 1995 compared
with $.6 million last year,
and totaled $2.0 million during both the first six months of 1995
and 1994. Write-offs of
recreational product retail notes totaled $6.4 million in the
first six months of 1995
compared with $8.7 million for the same period last year.
Capital Resources and Liquidity
The Company relies on its ability to raise substantial amounts of
funds to finance its
Receivable and Lease portfolios. The Company s primary sources
of funds for this
purpose are a combination of borrowings and equity capital.
Additionally, the Company
periodically sells substantial amounts of retail notes in the
public market. The Company s
ability to obtain funds is affected by its debt ratings, which
are closely related to the
outlook for and the financial condition of Deere & Company, and
the nature and
availability of support facilities, such as its lines of credit.
For information regarding Deere
& Company and its business, see Exhibit 99.
The Company's ability to meet its debt obligations is supported
in a number of ways as
described below. All commercial paper issued is backed by bank
credit lines. The assets
of the Company are self-liquidating in nature. A strong equity
position is available to
absorb unusual losses on these assets. Liquidity is also
provided by the Company's
ability to sell or securitize these assets. Asset-liability
risk is also actively managed to
minimize exposure to interest rate fluctuations.
The Company s business is somewhat seasonal, with overall
acquisitions of Receivables
and Leases traditionally higher in the second half of the fiscal
year than in the first half,
and overall collections of Receivables and Leases traditionally
somewhat higher in the first
six months than in the last half of the fiscal year.
During the first six months of 1995, the aggregate cash provided
by operating, investing,
and financing activities increased cash and cash equivalents.
Cash provided by operating
activities was $57 million in the first six months of 1995. Cash
provided by investing
activities totaled $191 million in the first six months of 1995,
primarily due to the $723
million of proceeds from the sale of retail notes, which was
partially offset by the
acquisitions of Receivables and Leases exceeding collections by
$576 million. Financing
activities provided $16 million during the first six months of
1995, resulting from a
temporary $226 million increase in payables to Deere & Company,
which was somewhat
offset by a $195 million decrease in outside borrowings and a $15
million dividend
payment. Cash and cash equivalents increased $264 million during
the first six months
of 1995.
During the first six months of 1994, the aggregate cash provided
by operating and
financing activities was used primarily to acquire receivables.
Cash provided by the
Company s operating activities was $77 million during the first
six months of 1994.
Financing activities provided $258 million during the same
period, resulting from a $751
million increase in outside borrowings which was partially offset
by a $323 million
decrease in payables to Deere & Company and dividend payments
totaling $170 million.
Cash used for investing activities totaled $348 million in the
first six months of 1994,
primarily due to the cost of Receivables and Leases acquired
exceeding collections.
Other cash flows from investing activities increased in the first
half of 1994 mainly due to
collections on receivables previously sold that were being held
for payment to the trusts.
Cash and cash equivalents decreased $13 million in the first six
months of 1994.
Total interest-bearing indebtedness amounted to $3.382 billion at
April 30, 1995 compared
with $3.350 billion at October 31, 1994 and $3.206 billion at
April 30, 1994, generally
corresponding with the level of Receivables and Leases financed
and the level of cash
and cash equivalents. The ratio of total interest-bearing debt
to stockholder s equity was
5.0 to 1, 5.3 to 1 and 5.2 to 1 at April 30, 1995, October 31,
1994 and April 30, 1994,
respectively.
During the first six months of 1995, the Company issued $150
million in floating rate notes
due in 1998 and retired $150 million of 5% debentures, $150
million of 11-5/8%
debentures and $100 million of 6% debentures, all due in 1995.
During the first six
months of this year, the Company issued $255 million and retired
$143 million of medium-
term notes.
At April 30, 1995, the Capital Corporation, Deere & Company, John
Deere Limited
(Canada) and John Deere Finance Limited (Canada), jointly,
maintained $4.008 billion
unsecured lines of credit with various banks in North America and
overseas, $1.255 billion
of which were unused. For the purpose of computing unused credit
lines, the total short-
term borrowings, excluding the current portion of long-term
borrowings, of the Capital
Corporation, Deere & Company, John Deere Limited (Canada) and
John Deere Finance
Limited (Canada) were considered to constitute utilization.
Included in the total credit
lines is a long-term credit agreement commitment for $3.500
billion. An annual facility fee
on the credit agreement is charged to the Capital Corporation
based on utilization.
The Company paid a cash dividend to John Deere Credit Company of
$15 million in the
first quarter of 1995. John Deere Credit Company paid a
comparable dividend to Deere
& Company. On June 2, 1995 the Company declared a dividend of
$20 million to John
Deere Credit Company, which, in turn, declared a dividend of $20
million to Deere &
Company, each payable on June 13, 1995.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
See Note (4) to the Interim Financial Statements.
Item 2. Changes in Securities.
Omitted pursuant to instruction H(2).
Item 3. Defaults upon Senior Securities.
Omitted pursuant to instruction H(2).
Item 4. Submission of Matters to a Vote of Security Holders.
Omitted pursuant to instruction H(2).
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
See the index to exhibits immediately preceding the
exhibits filed with
this report.
Certain instruments relating to long-term debt,
constituting less than 10%
of the registrant s total assets, are not filed as
exhibits herewith pursuant
to Item 601(b)(4)(iii)(A) of Regulation S-K. The
registrant will file copies
of such instruments upon request of the Commission.
(b) Reports on Form 8-K.
Current report on Form 8-K dated February 21, 1995
(items 5 and 7).
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has
duly caused this report to be signed on its behalf by the
undersigned thereunto duly
authorized.
JOHN DEERE CAPITAL CORPORATION
Date:
12 June 1995
By: /s/ Pierre E. Leroy
Pierre E. Leroy
Vice President
(Principal Financial Officer)
<PAGE>
INDEX TO EXHIBITS
Exhibit Page No.
(12) Computation of ratio of earnings to
fixed charges. 16
(27) Financial data schedule. 17
(99) Part I of Deere & Company Form 10-Q for the quarter ended
April 30, 1995 (Securities and Exchange Commission file
number 1-4121).*
__________________________
* Incorporated by reference. Copies of these
exhibits are available from the Company upon request.
Exhibit 12
JOHN DEERE CAPITAL CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS OF DOLLARS)
Six Months Ended April 30
1995 1994
Earnings:
Income before income
taxes and changes
in accounting $ 93,461 $ 75,165
Fixed charges 116,891 73,520
Total earnings $210,352 $148,685
Fixed charges:
Interest expense $115,664 $ 72,259
Rent expense 1,228 1,261
Total fixed charges $116,891 $ 73,520
Ratio of earnings to
fixed charges* 1.80 2.02
Year Ended October 31
Earnings: 1994 1993 1992
Income before income
taxes and changes
in accounting $161,809 $169,339 $142,920
Fixed charges 168,507 170,226 $191,930
Total earnings $330,316 $339,565 $334,850
Fixed charges:
Interest expense $166,591 $167,787 $189,288
Rent expense 1,916 2,439 2,642
Total fixed charges $168,507 $170,226 $191,930
Ratio of earnings to
fixed charges* 1.96 1.99 1.74
Year Ended October 31
Earnings: 1991 1990
Income before income
taxes and changes
in accounting $110,820 $ 99,366
Fixed charges 230,901 216,985
Total earnings $341,721 $316,351
Fixed charges:
Interest expense $228,308 $214,707
Rent expense 2,593 2,278
Total fixed charges $230,901 $216,985
Ratio of earnings to
fixed charges* 1.48 1.46
_____
"Earnings" consist of income before income taxes, the cumulative
effect of changes in accounting and fixed charges. "Fixed
charges" consist of interest on indebtedness, amortization of
debt discount and expense, an estimated amount of rental expense
under capitalized leases which is deemed to be representative of
the interest factor and rental expense under operating leases.
* The Company has not issued preferred stock. Therefore, the
ratios of earnings to combined fixed charges and preferred
stock dividends are the same as the ratios presented above.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted
from Form 10-Q and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<CIK> 0000027673
<NAME> JOHNDEERECAPITALCORP
<MULTIPLIER> 1,000,000
<CURRENCY> U.S.DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
<EXCHANGE-RATE> 1
<CASH> 307
<SECURITIES> 0
<RECEIVABLES> 3,957
<ALLOWANCES> 74
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 16
<DEPRECIATION> 10
<TOTAL-ASSETS> 4,384
<CURRENT-LIABILITIES> 0
<BONDS> 1,324
<COMMON> 113
0
0
<OTHER-SE> 567
<TOTAL-LIABILITY-AND-EQUITY> 4,384
<SALES> 0
<TOTAL-REVENUES> 271
<CGS> 0
<TOTAL-COSTS> 10
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 12
<INTEREST-EXPENSE> 116
<INCOME-PRETAX> 94
<INCOME-TAX> 33
<INCOME-CONTINUING> 61
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 61
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
