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, 1996
Commission file no: 1-6458
______________________________
JOHN DEERE CAPITAL CORPORATION
Delaware 36-2386361
(State of incorporation) (IRS employer identification no.)
1 East First Street, Suite 600
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, 1996, 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
1996 1995
Revenues:
Finance income earned on retail notes $ 95.6 $ 87.4
Revolving charge account income 21.2 18.3
Lease revenues 15.1 12.2
Finance income earned on wholesale notes 8.6 5.5
Net gain on retail notes sold 9.8 10.4
Interest income from short-term investments 2.8 2.6
Securitization and servicing fee income 9.5 7.0
Other income 5.0 .9
Total revenues 167.6 144.3
Expenses:
Interest expense 67.6 60.6
Administrative and operating expenses 22.9 19.3
Provision for credit losses 10.0 6.5
Fees paid to Deere & Company 1.3 1.3
Depreciation of equipment on
operating leases 7.6 5.3
Total expenses 109.4 93.0
Income before Income Taxes 58.2 51.3
Provision for Income Taxes 20.3 18.0
Net Income $ 37.9 $ 33.3
______________
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
1996 1995
Revenues:
Finance income earned on retail notes $187.7 $166.6
Revolving charge account income 42.7 37.0
Lease revenues 27.8 23.1
Finance income earned on wholesale notes 16.2 9.5
Net gain on retail notes sold 10.1 10.7
Interest income from short-term
investments 5.6 5.4
Securitization and servicing fee income 20.9 16.5
Other income 7.3 1.7
Total revenues 318.3 270.5
Expenses:
Interest expense 133.9 115.7
Administrative and operating expenses 43.2 36.7
Provision for credit losses 15.9 11.5
Fees paid to Deere & Company 3.2 2.6
Depreciation of equipment on
operating leases 14.2 10.5
Total expenses 210.4 177.0
Income before Income Taxes 107.9 93.5
Provision for Income Taxes 37.7 32.8
Net Income $ 70.2 $ 60.7
______________
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
1996 1995 1995
ASSETS
Cash and Cash Equivalents $ 168.1 $ 164.3 $ 307.0
Receivables and Leases:
Retail notes 3,684.8 3,824.9 2,972.2
Revolving charge accounts 468.8 510.2 409.9
Financing leases 153.7 149.3 135.2
Wholesale notes 380.9 298.1 225.0
Total receivables 4,688.2 4,782.5 3,742.3
Equipment on operating leases 199.5 139.5 128.1
Total receivables and leases 4,887.7 4,922.0 3,870.4
Allowance for credit losses (82.1) (84.2) (74.4)
Total receivables and
leases - net 4,805.6 4,837.8 3,796.0
Other Receivables 183.4 183.4 214.3
Other Assets 64.7 65.3 66.4
TOTAL $5,221.8 $5,250.8 $4,383.7
LIABILITIES AND STOCKHOLDER'S EQUITY
Short-Term Borrowings:
Commercial paper $2,208.1 $1,986.7 $1,524.6
Deere & Company 33.5 460.1 328.4
Current maturities of long-term
borrowings 248.5 343.9 205.5
Total short-term borrowings 2,490.1 2,790.7 2,058.5
Accounts Payable and Accrued
Liabilities 221.0 154.4 191.2
Deposits Withheld from Dealers and
Merchants 125.4 126.6 115.0
Long-Term Borrowings:
Notes and debentures 1,320.6 1,172.9 1,023.7
Subordinated debt 300.0 300.0 300.0
Total long-term borrowings 1,620.6 1,472.9 1,323.7
Retirement Benefit Accruals &
Other Liabilities 21.5 13.1 15.6
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 630.4 580.3 566.9
Total stockholder's equity 743.2 693.1 679.7
TOTAL $5,221.8 $5,250.8 $4,383.7
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
1996 1995
Cash Flows from Operating Activities:
Net income $ 70.2 $ 60.7
Adjustments to reconcile net income
to net cash provided by
operating activities 30.1 (3.6)
Net cash provided by operating
activities 100.3 57.1
Cash Flows from Investing Activities:
Cost of receivables and leases
acquired (2,607.1) (2,145.9)
Collections of receivables 1,978.0 1,569.9
Proceeds from sales of
receivables 610.3 723.4
Other 95.5 43.3
Net cash provided by (used for)
investing activities 76.7 190.7
Cash Flows from Financing Activities:
Increase (decrease) in notes
payable to others 221.4 (56.2)
Change in receivable/payable with
Deere & Company (426.6) 225.8
Proceeds from the issuance of
long-term borrowings 175.0 405.0
Principal payment on long-term
borrowings (123.0) (543.3)
Dividends paid (20.0) (15.0)
Net cash provided by (used for)
financing activities (173.2) 16.3
Net increase (decrease) in cash and
cash equivalents 3.8 264.1
Cash and cash equivalents at beginning
of period 164.3 42.9
Cash and cash equivalents at end
of period $ 168.1 $ 307.0
_______________
See Notes to Interim Financial Statements<PAGE>
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), John Deere
Receivables, Inc. (JDRI), John Deere Funding Corporation
(JDFC) and Arrendadora John Deere, S.A. de C.V. (AJD)
(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) In April 1996, the Capital Corporation expanded its operations
by forming two additional subsidiaries, John Deere Funding
Corporation (JDFC) and Arrendadora John Deere, S.A. de C.V.
(AJD). JDFC was established as a limited-purpose subsidiary
to be used in certain financing transactions of the Company.
AJD will offer leasing products for new John Deere
agricultural and industrial equipment purchased from John
Deere dealer organizations located in Mexico. AJD may also
consider other types of products to lease in the future,
including Lawn & Grounds Care Equipment.
(3) 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 certain agricultural and industrial
retail notes unrelated to John Deere. In addition, the
Company purchases and finances recreational vehicle and
recreational marine product retail notes acquired from
independent dealers of those products, and from marine product
mortgage service companies (recreational product retail
notes). The Company also leases 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, John Deere engines and John Deere
industrial equipment 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."
(4) The consolidated ratio of earnings to fixed charges was 1.85
to 1 for the second quarter of 1996 compared with 1.84 to 1 in
the same period last year, and 1.80 to 1 during the first six
months of 1996 and 1995. "Earnings" consist of income before
income taxes, the cumulative effect of and changes in
accounting and 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.
(5) 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.
<PAGE>
Item 2. Management s Discussion and Analysis of Financial
Condition and Results of Operations.
Results of Operations
Acquisitions of Receivables and Leases by the Company during the
first six months of 1996 totaled $2.607 billion, an increase of 21
percent over the acquisitions of $2.146 billion reported during the
first six months of 1995. For the second quarter of 1996, the
Company reported acquisitions of Receivables and Leases of $1.365
billion, a 19 percent increase over the $1.149 billion reported for
the second quarter of 1995.
Retail notes acquired by the Company, during the first six months
of 1996, totaled $1.586 billion, an increase of 12 percent,
compared with acquisitions of $1.416 billion during the same period
last year. Retail note acquisitions from John Deere increased
$154 million, or 12 percent, for the six months ended April 30,
1996, compared with the same period last year due to higher retail
sales of John Deere equipment. Retail note acquisitions from John
Deere continued to represent a significant portion of the total
United States retail sales of John Deere equipment. Acquisitions
of recreational product retail notes decreased $4 million to $131
million, compared to the $135 million for the same period last
first six months of last year as rates in these markets remain very
competitive.
During the second quarter of 1996, total retail note acquisitions
increased six percent to $752 million compared with $713 million in
the same quarter of 1995. Retail note acquisitions from John Deere
increased by $57 million, or nine percent, in the second quarter of
1996. Acquisitions of recreational product retail notes decreased
$23 million in the second quarter of 1996 when as compared to the
same period in 1995. This decrease in acquisitions of recreational
product retail notes can be attributed to aggressive competitive
pricing.
At April 30, 1996, the amount of retail notes held by the Company
was $3.685 billion compared with $3.825 billion at October 31, 1995
and $2.972 billion at April 30, 1995. Within this category,
recreational product retail notes totaled $863 million, $865
million and $832 million, respectively.
The amount of retail notes administered by the Company, which
includes retail notes previously sold, totaled $4.909 billion at
April 30, 1996, $4.987 billion at October 31, 1995, and $4.440
billion at April 30, 1995. At April 30, 1996, the unpaid balance
of retail notes previously sold was $1.224 billion compared with
$1.162 billion at October 31, 1995 and $1.468 million at April 30,
1995. The Company s maximum exposure under all retail note
recourse provisions at April 30, 1996 was $180 million.
Revolving charge accounts receivable totaled $469 million at April
30, 1996 compared with $510 million at October 31, 1995 and $410
million at April 30, 1995. Acquisitions increased 14 percent in
the second quarter of 1996 and 17 percent in the first six months
of 1996 compared with the same periods last year, primarily
reflecting the increased volume of Farm Plan receivable
acquisitions. The balance of revolving charge accounts receivable
also increased in the first six months of 1996 due to the growth in
both the Farm Plan portfolio. Farm Plan and John Deere Credit
Revolving Plan receivables at April 30, 1996 were $258 million and
$211 million, respectively, compared to $211 million and $199
million, respectively, a year ago.
The portfolio of financing leases totaled $154 million at April 30,
1996 compared with $149 million at October 31, 1995 and $135
million at April 30, 1995. The investment in operating leases was
$200 million, $140 million and $128 million, respectively. The
Company also administers municipal leases owned by John Deere which
totaled $15 million at April 30, 1996, $21 million at October 31,
1995 and $30 million at April 30, 1995. The Company has not sold
any additional municipal leases to John Deere since October 1994.
Wholesale notes receivable totaled $381 million at April 30, 1996,
$298 million at October 31, 1995 and $225 million at April 30,
1995. Wholesale note acquisitions increased 59 percent during the
first six months of 1996, and 1995, reflecting growth in
acquisitions of manufactured housing, industrial and yacht markets.
Receivables and Leases acquired totaled $2.607 billion during the
first six months of 1996, a 21 percent increase compared with
acquisitions of $2.146 billion during the same period of 1995.
Total Receivables and Leases financed by the Company financed by
the Company were $4.888 billion at April 30, 1996, $4.922 billion
at October 31, 1995 and $3.870 billion at April 30, 1995.
Comparable Receivables and Leases administered by the Company were
$6.127 billion, $6.105 billion and $5.368 billion, respectively.
The balance (principal plus accrued interest) of retail notes held
with any installment 60 days or more past due was $53 million at
April 30, 1996 compared with $33 million at both October 31, 1995
and April 30, 1995. The amount of retail note installments 60 days
or more past due was $11.7 million at April 30, 1996, $6.1 million
at October 31, 1995 and $7.3 million at April 30, 1995. These
past-due installments represented .32 percent of the unpaid balance
of retail notes held at April 30, 1996, .16 percent at October 31,
1995 and .25 percent at April 30, 1995.
The balance of revolving charge accounts 60 days or more past due
was $10.2 million, $7.71 million and $6.0 million at April 30,
1996, October 31, 1995 and April 30, 1995, respectively. These
past-due amounts represented 2.17 percent, 1.40 percent and 1.47
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 $1.5 million at April 30, 1996, $.8 million at
October 31, 1995 and $1.1 million at April 30, 1995. These past-
due installments represented .44 percent, .28 percent and .41
percent of the investment in financing and operating leases at
those respective dates.
Total Receivable and Lease amounts 60 days or more past due were
$23.5 million at April 30, 1996, compared with $14.1 million at
October 31, 1995 and $14.5 million at April 30, 1995. These past-
due amounts represent .48 percent, .29 percent and .38 percent of
the total Receivables and Leases held at those dates.
Past due amounts as of April 30, 1996 are higher than October 31,
1995 due to the large number of annual pay contracts that became
due during the winter months. Past due amounts as of April 30,
1996 are also higher than the comparable period last year.
However, these amounts, as a percentage of total Receivables and
Leases held, compare favorably with prior periods.
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 $125 million at April 30, 1996 compared with
$127 million at October 31, 1995 and $115 million at April 30,
1995. The Company s allowance for credit losses on all Receivables
and Leases financed totaled $82 million at April 30, 1996, $84
million at October 31, 1995 and $74 million at April 30, 1995.
This allowance for credit losses represented 1.7 percent of the
unpaid balance of Receivables and Leases financed at April 30, 1996
and at October 31, 1995, and 1.9 percent at April 30, 1995.
Net income was $37.9 million for the second quarter of 1996 and
$70.2 million for the first six months of 1996 compared with $33.3
million and $60.7 million, respectively, last year. Net income for
both the second quarter and the first six months of 1996 was
favorably affected by a larger average Receivables and Leases
portfolio financed, partially offset by lower financing spreads.
The average balance of Receivables and Leases financed was 20
percent higher in both the second quarter and the first six months
of 1996 compared with the same periods last year.
Revenues totaled $167.6 million and $144.3 $318.3 million for the
second quarter and for the first six months of 1996, respectively,
compared to $144.3 million and $270.5 million for the same periods
a year ago. Revenues increased due to a larger average portfolio
financed a higher overall yield on the receivables held, a larger
average portfolio financed and increased securitization and
servicing fee income. The increase in other income from $1.7
million in 1995 to $7.3 million in 1996 was primarily due to gains
on the sale of equipment previously on operating leases. The ratio
of earnings to fixed charges was 1.85 to 1 for the second quarter
of 1996 compared with 1.84 to 1 in the same period last year and
1.80 to 1 in the first six months of both 1996 and 1995., and was
1.85 to 1 for the second quarter of 1996 compared with 1.84 to 1 in
the same period last year and 1.80 to 1 in the first six months of
both 1996 and 1995.
Revolving charge account income and lease revenues were higher in
the second quarter and the first six months of 1996 and for the
second quarter compared with the same periods in 1995, due
primarily to the higher average portfolios of revolving charge
receivables and leases portfolios financed this year. Finance
income earned on wholesale notes was up $3.1 million in the second
quarter and $6.7 million during the first half of 1996 compared to
the same periods one year ago. Increases in finance income earned
on wholesale notes can be attributed to the continued growth in the
manufactured housing, industrial and yacht markets.
Interest expense for the second quarter was up from $60.6 million
last year to $67.6 million in 1996. Interest expense for the first
six months of 1996 was $133.9 million compared with $115.7 million
during the first half of 1995. The increases in interest expense
during the second quarter and the first six months of 1996 were as
a result of higher average medium-term borrowings and the
issuance of commercial paper required to finance the higher average
Receivable and Lease portfolios. Total average borrowings during
the second quarter and the first half of 1996 were $4.419 billion
and $4.389 billion, respectively, a 23 percent increase from last
year s second quarter average borrowings of $3.597 billion and a 22
percent increase from the first half of 1995 average borrowings of
$3.602 billion.
Administrative and operating expenses increased by 19 percent, to
$22.9 million, in the second quarter of 1996, compared to $19.3
million for the same period in 1995. In the first six months of
1996, administrative and operating expenses totaled $43.2 million,
an increase of 18 percent, from the $36.7 million reported for the
first six months of 1995. These increases can generally be
attributed to the costs necessary to administer the larger
portfolio.
During the second quarter of 1996, the provision for credit losses
totaled $10.0 million compared with $6.5 million in the same period
last year. The increase in the provision for credit losses during
the first six months of 1996 was due primarily to the growth in the
Company s portfolio of Receivables and Leases. Write-offs of
Receivables and Leases financed were $7.7 million during the second
quarter of 1996 compared with $7.3 million last year and were $13.4
million during the first half of 1996 compared with $12.6 million
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.
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 John Deere, and the nature and availability
of support facilities, such as its lines of credit. For
information regarding John Deere 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 1996, $100 million of cash provided
by operating activities and $77 million provided by investing
activities were primarily used for financing activities. The $77
million provided from investing activities was due to the $610
million of proceeds from the sale of retail notes and $96 million
from other investing activities mainly due to collections on
receivables previously sold that are temporarily being held for
payment to the owners. These investing cash inflows were partially
partially offset by the acquisitions of Receivables and Leases
exceeding collections by $629 million. Financing activities used
$173 million during the first six months of 1996, resulting from a
$426 million decrease in payables to John Deere and a $20 million
dividend payment to its parent, which were partially offset by a
$273 million increase in borrowings from others. Cash and cash
equivalents increased $4 million during the first six months of
1996.
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 John Deere, which was
somewhat offset by a $195 million decrease in outside borrowings
and a $15 million dividend payment to its parent. Cash and cash
equivalents increased $264 million during the first six months of
1995.
Total interest-bearing indebtedness amounted to $4.111 billion at
April 30, 1996 compared with $4.264 billion at October 31, 1995 and
$3.382 billion at April 30, 1995, 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 5.5 to 1, 6.2 to 1 and 5.0 to 1 at April
30, 1996, October 31, 1995 and April 30, 1995, respectively.
During the first six months of this year, the Company issued $175
million and retired $123 million of medium-term notes.
At April 30, 1996, the Company and John Deere, jointly, maintained
$4.208 billion unsecured lines of credit with various banks in
North America and overseas, $1.187 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 Company and John Deere were considered to
constitute utilization. Included in the total credit lines is a
long-term credit agreement commitment for $3.675 billion. An
annual facility fee on the credit agreement is charged to the
Company based on utilization.
The Capital Corporation paid a cash dividend to John Deere Credit
Company of $20 million in the first quarter of 1996. John Deere
Credit Company paid a comparable dividend to Deere & Company. In
June 1996, the Capital Corporation declared a dividend of $15
million to John Deere Credit Company, which, in turn, declared a
dividend of $15 million to Deere & Company, each payable in June
1996.
<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 15,
1996 (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: June 6, 1996 By:/s/ R. W. Lane
R. W. Lane
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, 1996 (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
1996 1995
Earnings:
Income before income
taxes and changes
in accounting $107,821 $ 93,461
Fixed charges 135,264 116,892
Total earnings $243,085 $210,353
Fixed charges:
Interest expense $133,888 $115,664
Rent expense 1,376 1,228
Total fixed charges $135,264 $116,892
Ratio of earnings to
fixed charges* 1.80 1.80
<PAGE>
Years Ended 31 October
Earnings: 1995 1994
Income before income
taxes and changes
in accounting $175,360 $161,809
Fixed charges $240,913 $168,507
Total earnings $416,273 $330,316
Fixed charges:
Interest expense $238,445 $166,591
Rent expense 2,468 1,916
Total fixed charges $240,913 $168,507
Ratio of earnings to
fixed charges* 1.73 1.96
<PAGE>
Years Ended 31 October
Earnings: 1993 1992 1991
Income before income
taxes and changes
in accounting $169,339 $142,920 $110,820
Fixed charges 170,226 191,930 230,901
Total earnings $339,565 $334,850 341,721
Fixed charges:
Interest expense $167,787 $189,288 228,308
Rent expense 2,439 2,642 2,593
Total fixed charges $170,226 $191,930 230,901
Ratio of earnings to
fixed charges* 1.99 1.74 1.48
"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
information.
</LEGEND>
<CIK> 0000027673
<NAME> JOHNDEERECAPITALCORP
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<S> <C>
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<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
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113
0
<COMMON> 0
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<CGS> 0
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</TABLE>
