<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------
FORM 10-K405/A
--------------
AMENDMENT NO. 1
TO
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED OCTOBER 31, 1995
Commission file number 1-4121
DEERE & COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE 36-2382580
(State of incorporation) (IRS Employer Identification No.)
JOHN DEERE ROAD, MOLINE, ILLINOIS 61265 (309) 765-8000
(Address of principal executive offices) (Zip Code) (Telephone Number)
SECURITIES REGISTERED PURSUANT
TO SECTION 12(B) OF THE ACT
TITLE OF EACH CLASS NAME OF EACH EXCHANGE ON WHICH REGISTERED
Common stock, $1 par value New York Stock Exchange
Chicago Stock Exchange
Frankfurt, Germany Stock Exchange
5-1/2% Convertible Subordinated
Debentures Due 2001 New York Stock Exchange
8-1/4% Notes Due 1996 New York Stock Exchange
9-1/8% Notes Due 1996 New York Stock Exchange
8.95% Debentures Due 2019 New York Stock Exchange
8-1/2% Debentures Due 2022 New York Stock Exchange
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: NONE
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___
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [X]
The aggregate quoted market price of voting stock of registrant held by
nonaffiliates at December 31, 1995 was $9,218,374,986. At December 31, 1995,
262,301,214 shares of common stock, $1 par value, of the registrant were
outstanding. Documents Incorporated by Reference. Portions of the proxy
statement for the annual meeting of stockholders to be held on February 28,
1996 are incorporated by reference in Part III.
===============================================================================
Page 1 of 48
Index To Exhibits on Page 3
<PAGE>
Pursuant to Rule 15d-21 under the Securities Exchange Act of 1934, the
undersigned registrant (the "Registrant") hereby amends the following items,
financial statements, exhibits or other portions of its Annual Report on Form
10-K405 for the fiscal year ended October 31, 1995 to include the information
and financial statements required by Form 11-K with respect to The John Deere
Savings and Investment Plan and The John Deere Tax Deferred Savings Plan For
Hourly and Incentive Paid Employees (the "Plans") for the year ended October
31, 1995 as set forth in the pages attached hereto:
Index to Exhibits and Exhibits revised to add Exhibits 23.2, 23.3,
99.3 and 99.4, copies of which are attached, consisting of the
Consents of the Independent Auditors, Independent Auditors' Report,
and the Audited Financial Statements, Notes to Financial Statements,
and Supplemental Schedules of the Plans.
2
<PAGE>
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit Page
<S> <C> <C>
3.1 Certificate of incorporation, as amended***
3.2 Certificate of Designation Preferences and Rights of Series A
Participating Preferred Stock (Exhibit 3.2 to Form 10-Q of
registrant for the period ended April 30, 1993*)
3.3 By-laws, as amended (Exhibit 3 to Form 10-Q of registrant for the
period ended April 30, 1995*)
4.1 Indenture dated February 15, 1991 between registrant and Citibank,
N.A., as Trustee. (Exhibit 4.1 to Form 10-Q of registrant for the
quarter ended April 30, 1993*)
4.2 Credit agreements among registrant, John Deere Capital Corporation,
various financial institutions, and Chemical Bank, The Chase Manhattan
Bank (National Association), Bank of Americas National Trust and
Savings Association, Deutsche Bank AG, and The Toronto Dominion Bank,
as Managing Agents, dated as of April 5, 1995 (Exhibit 4.1(a) and
4.1(b) to 1993 Form 10-Q of registrant for the period ended April 30,
1995*)
4.3 Credit agreements among John Deere Limited, John Deere Finance
Limited, various financial institutions and The Toronto-Dominion Bank
as agent, dated as of April 5, 1995 (Exhibit 4.2(a) and 4.2(b) to Form
10-Q of registrant for the quarter ended April 30, 1995*)
4.4 Form common stock certificates (Exhibit 4.4 to Form 10-Q of registrant
for the quarter ended April 30, 1993*)
4.5 Rights Agreement dated as of December 9, 1987 as amended between
registrant and Morgan Shareholder Services Trust Company (Exhibit 4.5
to Form 10-Q of registrant for the quarter ended April 30, 1993*)
4.6 First Amendment to Rights Agreement, dated as of February 28, 1990
between registrant and First Chicago Trust Co. of New York (Exhibit
4.6 to Form 10-Q of registrant for the quarter ended April 30, 1993*)
4.7 Second Amendment to Rights Agreement, dated as of March 1, 1991
between registrant and First Chicago Trust Co. of New York (Exhibit
4.7 to Form 10-Q of registrant for the quarter ended April 30, 1993*)
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.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Exhibit Page
<S> <C> <C>
9. Not applicable
10.1 Agreement dated May 11, 1993 between registrant and John Deere Capital
Corporation concerning agricultural retail notes (Exhibit 10.1 to Form
10-Q of registrant for the quarter ended April 30, 1993*)
10.2 Agreement dated May 11, 1993 between registrant and John Deere Capital
Corporation relating to lawn and grounds care retail notes (Exhibit
10.2 to Form 10-Q of registrant for the quarter ended April 30, 1993*)
10.3 Agreement dated May 11, 1993 between John Deere Industrial Equipment
Company, a wholly-owned subsidiary of registrant and John Deere
Capital Corporation concerning industrial retail notes (Exhibit 10.3
to Form 10-Q of registrant for the quarter ended April 30, 1993*)
10.4 Agreement dated January 26, 1983 between registrant and John Deere
Capital Corporation relating to agreements on retail notes with United
States sales branches (Exhibit 10.4 to Form 10-Q of registrant for the
quarter ended April 30, 1993*)
10.5 John Deere Supplemental Pension Benefit Plan, as amended May 26, 1993.
(Exhibit 10.5 to Form 10-Q of registrant for the quarter ended April
30, 1993*)**
10.6 1986 John Deere Stock Option Plan (Exhibit 10.7 to Form 10-Q of
registrant for the quarter ended April 30, 1993*)**
10.7 1991 John Deere Stock Option Plan (Exhibit 10.8 to Form 10-Q of
registrant for the quarter ended April 30, 1993*)**
10.8 Deere & Company Voluntary Deferred Compensation Plan (Exhibit 10.9 to
Form 10-Q of registrant for the quarter ended April 30, 1993*)**
10.9 John Deere Restricted Stock Plan (Exhibit 10.10 to Form 10-Q of
registrant for the quarter ended April 30, 1993*)**
10.10 1993 Nonemployee Director Stock Ownership Plan (Exhibit to
Notice and Proxy Statement of registrant for the annual
shareholder meeting on February 24, 1993*)**
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Exhibit Page
<S> <C> <C>
10.11 John Deere Performance Bonus Plan (Exhibit A to Notice and
Proxy Statement of registrant for the annual shareholder
meeting on February 22, 1995*)**
10.12 John Deere Equity Incentive Plan (Exhibit B to Notice and
Proxy Statement of registrant for the annual shareholder
meeting on February 22, 1995*)**
11. Computation of net income per share***
12. Computation of ratio of earnings to fixed charges***
13. Not applicable
16. Not applicable
18. Not applicable
21. Subsidiaries***
22. Not applicable
23.1 Consent of Deloitte & Touche LLP with respect to the Independent Audit
Report for the October 31, 1995 financial statements of Deere &
Company***
23.2 Consent of Deloitte & Touche LLP with respect to the Independent Audit
Report for the John Deere Savings and Investment Plan 8
23.3 Consent of Deloitte & Touche LLP with respect to the Independent Audit
Report for the John Deere Tax Deferred Savings Plan For Hourly and
Incentive Paid Employees 9
24. Not applicable
27. Financial Data Schedule***
28. Not applicable
99.1 Press Release dated December 9, 1987 announcing adoption of
Shareholder Rights Plan (Exhibit 99.1 to Form 10-Q of registrant for
the quarter ended April 30, 1993*)
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
Exhibit Page
<S> <C> <C>
99.2 Form of Letter to Shareholders dated December 10, 1987 describing
Shareholder Rights Plan (Exhibit 99.2 to Form 10-Q of registrant for
the quarter ended April 30, 1993*)
99.3 John Deere Savings And Investment Plan 10
Independent Auditors' Report
Statements of Net Assets Available For Benefits as of
October 31, 1995 and 1994
Statements of Changes in Net Assets Available For Benefits
for the years ended October 31, 1995 and 1994
Notes to Financial Statements
Supplemental Schedules
99.4 John Deere Tax Deferred Savings Plan For Hourly And Incentive Paid
Employees 30
Independent Auditors' Report
Statements of Net Assets Available For Benefits as of
October 31, 1995 and 1994
Statements of Changes in Net Assets Available For Benefits
for the years ended October 31, 1995 and 1994
Notes to Financial Statements
Supplemental Schedules
</TABLE>
*Incorporated by reference. Copies of these exhibits are available
from the Company upon request.
**Compensation plan or arrangement filed as an exhibit pursuant to
Item 14(c) of Form 10-K.
***Copies of these exhibits were filed with the Commission with the
original Annual Report of the Company on Form 10-K405 for the fiscal
year ended October 31, 1995.
6
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to its Annual Report on Form 10-K405
to be signed on its behalf by the undersigned, thereunto duly authorized.
DEERE & COMPANY
By: /s/ M. S. Plunkett
------------------
M. S. Plunkett
Senior Vice President
Date: April 25, 1996
7
<PAGE>
Exhibit 23.2
INDEPENDENT AUDITORS' CONSENT
Deere & Company:
We consent to the incorporation by reference in Registration Statements
No. 2-90384, 33-55549 and 33-49742 of Deere & Company on Form S-8 of our report
dated April 22, 1996 relating to the John Deere Savings and Investment Plan,
appearing in this Annual Report on Form 10-K of Deere & Company for the year
ended October 31, 1995.
/s/ DELOITTE & TOUCHE LLP
- --------------------------
DELOITTE & TOUCHE LLP
Chicago, Illinois
April 22, 1996
8
<PAGE>
Exhibit 23.3
INDEPENDENT AUDITORS' CONSENT
Deere & Company:
We consent to the incorporation by reference in Registration Statements
No. 33-15949 and 33-49740 of Deere & Company on Form S-8 of our report dated
April 22, 1996 relating to the John Deere Tax Deferred Savings Plan for
Hourly and Incentive Paid Employees, appearing in this Annual Report on Form
10-K of Deere & Company for the year ended October 31, 1995.
/s/ DELOITTE & TOUCHE LLP
- --------------------------
DELOITTE & TOUCHE LLP
Chicago, Illinois
April 22, 1996
9
<PAGE>
Exhibit 99.3
JOHN DEERE SAVINGS AND INVESTMENT PLAN
FINANCIAL STATEMENTS
FOR THE YEARS ENDED OCTOBER 31, 1995 AND 1994
AND
SUPPLEMENTAL SCHEDULES FOR THE YEAR ENDED OCTOBER 31, 1995
AND
INDEPENDENT AUDITORS' REPORT
* * * * * * * * * * * *
10
<PAGE>
JOHN DEERE SAVINGS AND INVESTMENT PLAN
TABLE OF CONTENTS
Page
Independent Auditors' Report....................... 2
Financial Statements for the Years Ended
October 31, 1995 and 1994:
Statements of Net Assets Available for Benefits 3
Statements of Changes in Net Assets Available
for Benefits.................................... 4
Notes to Financial Statements..................... 5
Supplemental Schedules:........................... 13
Item 27a - Schedule of Assets Held for Investment
Purposes at October 31, 1995
Item 27d - Schedule of Reportable Transactions for
the Year Ended October 31, 1995
Supplemental Schedules Omitted As Not Applicable:
Item 27a - Schedule of Assets Held for Investment
Purposes (Investment Assets Which Were
Acquired and Disposed of Within the
Plan Year)
Item 27b - Schedule of Loans or Fixed Income
Obligations
Item 27c - Schedule of Leases in Default or
Classified as Uncollectible
Item 27e - Schedule of Nonexempt Transactions
11
<PAGE>
INDEPENDENT AUDITORS' REPORT
Deere & Company:
We have audited the accompanying statements of net assets available for
benefits of the John Deere Savings and Investment Plan as of October 31, 1995
and 1994, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of October 31,
1995 and 1994, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed on
page 1 are presented for the purpose of additional analysis and are not a
required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These schedules are the responsibility of the Plan's management. Such
schedules have been subjected to the auditing procedures applied in the
audits of the basic 1995 financial statements and, in our opinion, are fairly
stated in all material respects when considered in relation to the basic
financial statements taken as a whole.
Deloitte & Touche LLP
Chicago, Illinois
April 22, 1996
12
<PAGE>
JOHN DEERE SAVINGS AND INVESTMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
OCTOBER 31, 1995 AND 1994
(IN THOUSANDS OF DOLLARS)
_______________________________________________________________________________
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
ASSETS
Investments - at fair value:
Deere & Company Common Stock Fund $ 50,482 $ 51,645
Blended Interest Fund 375,993 297,558
Fidelity U.S. Equity Index Portfolio 107,569 79,684
Fidelity Puritan Fund 50,145 41,000
Fidelity Intermediate Bond Fund 2,520 1,511
Fidelity Magellan Fund 131,711 88,044
Fidelity Overseas Equity Fund 19,543 20,468
Fidelity Retirement Money Market Portfolio 6,787 4,766
Fidelity Equity Income Fund 5,353 2,216
Fidelity Growth Company Fund 13,359 2,886
Fidelity OTC Portfolio 8,720 2,091
Fidelity Asset Manager Fund 8,632 8,343
Fidelity Asset Manager: Growth Fund 11,693 12,188
Fidelity Asset Manager: Income Fund 1,643 1,721
Fidelity U.S. Government Reserve Pool 15,632 27,637
Loans to participants 17,700 17,048
_______ _______
Total 827,482 658,806
Contributions receivable 29
Due from broker 376
_______ _______
Total Assets 827,887 658,806
LIABILITIES
Due to brokers 366
_______ _______
Net Assets Available for Benefits $827,887 $658,440
======== ========
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
13
<PAGE>
JOHN DEERE SAVINGS AND INVESTMENT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED OCTOBER 31, 1995 AND 1994
(IN THOUSANDS OF DOLLARS)
_______________________________________________________________________________
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1995 October 31, 1994
---------------- ----------------
<S> <C> <C>
ADDITIONS
Investment income:
Dividends $ 8,268 $ 15,187
Interest 25,507 23,584
-------- --------
Total 33,775 38,771
-------- --------
Net appreciation (depreciation) in fair value of investments 67,768 (9,920)
-------- --------
Contributions:
Employee 53,349 45,643
Employer 26,685 11,159
-------- --------
Total 80,034 56,802
-------- --------
Total 181,577 85,653
-------- --------
DEDUCTIONS
Withdrawals 11,921 6,418
Loan cancellations 209 185
-------- --------
Total 12,130 6,603
-------- --------
Excess of additions over deductions 169,447 79,050
Net Assets Available for Benefits:
Beginning of year 658,440 579,390
-------- --------
End of year $827,887 $658,440
======== ========
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
14
<PAGE>
JOHN DEERE SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED OCTOBER 31, 1995 AND 1994
_______________________________________________________________________________
(1) DESCRIPTION OF PLAN
The following is a general description of the John Deere Savings and
Investment Plan (the Plan). This description applies to each of the
years for which financial statements are presented. For a more complete
description of the Plan's provisions, participants should refer to the
Plan agreement.
GENERAL
The Plan was established July 1, 1984 by Deere & Company (the Company)
for eligible employees of the Company and its subsidiaries. The purpose
of the Plan is to encourage those employees to provide for their
financial security through regular savings and to assist them through
matching contributions from the Company's profits. It is subject to the
provisions of the Employee Retirement Income Security Act of 1974
(ERISA). Expenses of the Plan are paid by the Company.
ELIGIBILITY
Employees are eligible to participate in the Plan if they are salaried
employees on the United States payrolls of the Company or its
participating subsidiaries.
CONTRIBUTIONS
An eligible employee may elect to enter into a written Salary Deferral
Agreement (the Agreement) with the Company and agree to accept a
reduction in compensation equal to any whole percentage of such
compensation per payroll period, not to exceed 15 percent, up to a
maximum amount established by the Internal Revenue Service. The maximum
amount for the 1995 calendar year was $9,240. Employees may amend or
revoke their Agreements as of the first day of any payroll period by
completing a form established for that purpose.
An amendment or revocation becomes effective with the first payroll
period of the calendar month following receipt of the form by the
administrator of the Plan.
The Company's matching contributions to the Plan, which are made on a
calendar-year basis, are determined by multiplying the participating
employee's salary deferrals, up to a maximum of six percent of the
employee's earnings, by a percentage determined in accordance with the
Plan agreement. This percentage is based on the profitability of the
Company in the preceding fiscal year ended October 31. The percentages
applicable to the 1995 and 1994 calendar years were 100 percent and 45
percent, respectively.
15
<PAGE>
Contributions are sent to the Plan Trustee on each payroll period ending
date, or the last working day prior to that date if the latter is an
unscheduled working day. Contributions are invested by the Trustee in
the appropriate funds as soon as practicable following receipt. Monies
may be held and invested by the Trustee in short-term investment funds
until designated investments have been purchased.
Each participant's account is credited with contributions by the
participant together with earnings allocated daily among participants
based on the ratio of their respective account balances as of the
preceding day. Participants are immediately vested in their
contributions plus allocated earnings and Company matching contributions.
The salary deferrals and Company contributions are considered tax
deferred under sections 401(a) and 401(k) of the Internal Revenue Code.
FUND ELECTIONS
Eligible employees enrolled in the Plan may elect to invest a percentage
of their contributions, together with the matching contribution by the
Company, in one or more funds in multiples of 10 percent.
A description of the primary investments in each fund follows:
The Deere & Company Common Stock Fund is invested in common stock of
the Company.
The Blended Interest Fund is invested in investment contracts issued
by banks and insurance companies.
The Fidelity U.S. Equity Index Portfolio is invested in the common
stocks of the 500 companies that make up the Standard & Poor's 500
Stock Index.
The Fidelity Puritan Fund is invested in dividend-paying common stocks
and preferred stocks and interest-paying bonds of all types and
qualities.
The Fidelity Intermediate Bond Fund is invested in bonds rated BBB or
better with an average maturity of between three and ten years.
The Fidelity Magellan Fund is invested in a wide range of U.S. and
foreign common stocks of all types of companies with growth potential.
The Fidelity Overseas Equity Fund is invested in securities of
companies located in the Americas (other than the U. S.), the Far
East and Pacific Basin, and Western Europe.
The Fidelity Retirement Money Market Portfolio is invested in debt
instruments maturing in one year or less, including high-quality
commercial paper, certificates of deposit, repurchase agreements and
bankers' acceptances.
16
<PAGE>
The Fidelity Equity Income Fund is invested in income-producing equity
securities.
The Fidelity Growth Company Fund is invested primarily in common
stocks and convertibles of emerging growth companies.
The Fidelity OTC Portfolio is invested primarily in common stocks of
smaller companies that are traded in the over-the-counter securities
market.
The Fidelity Asset Manager Fund is invested in stocks, bonds and
short-term instruments.
The Fidelity Asset Manager: Growth Fund is invested in a higher level
of income-producing stocks, bonds and short-term instruments.
The Fidelity Asset Manager: Income Fund is invested in stocks, bonds,
short-term instruments and other investments.
A listing of the funds and the number of participants in each fund a
October 31, 1995 and 1994 follows. The number of participants shown
below includes both active participants and former employees who have
elected deferred distributions.
<TABLE>
<CAPTION>
NAME OF FUND NUMBER OF PARTICIPANTS
------------ ----------------------
1995 1994
---- ----
<S> <C> <C>
Deere & Company Common Stock Fund 4,707 4,252
Blended Interest Fund 9,354 9,113
Fidelity U.S. Equity Index Portfolio 4,310 4,093
Fidelity Puritan Fund 3,932 3,239
Fidelity Intermediate Bond Fund 480 307
Fidelity Magellan Fund 6,379 5,142
Fidelity Overseas Equity Fund 2,182 1,881
Fidelity Retirement Money Market Portfolio 828 534
Fidelity Equity Income Fund 812 290
Fidelity Growth Company Fund 1,444 453
Fidelity OTC Portfolio 1,039 346
Fidelity Asset Manager Fund 915 716
Fidelity Asset Manager: Growth Fund 1,154 966
Fidelity Asset Manager: Income Fund 296 174
</TABLE>
17
<PAGE>
LOANS
Employees who participate in the Plan are eligible to borrow against the
balances in their accounts. Loans must amount to at least $1,000 and are
limited to the lesser of $50,000 (reduced by the participant's highest
outstanding loan balance during the immediately preceding one year period) or
50 percent of their account balances on the effective dates of the loans, may
not exceed 54 months in duration and are disbursed to applicants monthly.
Repayment is intended to be made via semi-monthly payroll deductions.
Interest is assessed at a rate which is determined after reviewing the
published prime interest rate, the 5-year consumers' savings rate and the
current yield of the Blended Interest Fund. Loans outstanding at October 31,
1995 have maturities ranging from November 1995 through October 2000 and bear
interest at rates ranging from 7 percent to 10 percent per annum. There are
no loans in default.
DISTRIBUTIONS
All distributions under the Plan are lump-sum. Distributions are not
permitted while the participants are employed by the Company unless a
distribution is required to meet legal requirements. Participants who have
terminated employment with the Company or retired may elect an immediate
distribution or may defer this distribution up to age 70 1/2. The
beneficiary of a participant who died may elect a deferred distribution
payable not later than five years after the participant's death.
Distributions from the Deere & Company Common Stock Fund may be in cash or
whole shares and residual cash. Distributions from all of the other funds
are in cash.
Effective January 1, 1996, four additional distribution options were made
available to participants:
(a) Level Sum Distribution: A specified dollar amount is distributed
monthly.
(b) Decremental Distribution: A decremental withdrawal is made over a
specified period of time.
(c) Unscheduled, Partial Distribution: Unscheduled amounts are
distributed at the discretion of the participant.
(d) Mandated Distribution After 70 1/2: By April 1 of the year following
the year in which the participant turns 70 1/2, the participant must
either take a lump sum distribution or begin systematic withdrawals
which are actuarially determined.
ADMINISTRATION
The Company is Administrator of the Plan. Fidelity Management Trust Company
(Fidelity), Boston, Massachusetts, is the Plan Trustee, Investment Manager
and Recordkeeper.
(2) AMENDMENTS
Effective January 1, 1994, the Plan was amended to allow participants to
invest their contributions in six additional investment funds. The new
investment options are:
Fidelity Equity Income Fund Fidelity Asset Manager Fund
Fidelity Growth Company Fund Fidelity Asset Manager: Growth Fund
Fidelity OTC Portfolio Fidelity Asset Manager: Income Fund
18
<PAGE>
Effective March 1, 1994, the one year of service eligibility requirement to
participate in the Plan was removed. Employees who desire to participate
may do so in the month following employment.
The Company acquired Homelite, Inc. on August 29, 1994. Prior to that time,
Homelite employees participated in the Textron Savings Plan. Effective
November 1, 1994, Homelite employees, both salaried and hourly, became
eligible to participate in the John Deere Savings and Investment Plan.
Special provisions relating to this group of employees are as follows:
(a) A matching contribution on behalf of each Homelite employee will be
determined by multiplying the eligible salary deferral
contribution on their behalf for each payroll period in the Plan
Year by 50%.
(b) The loan provision is available to all eligible Homelite employees:
(i) Loans to eligible Homelite employees will be made by Fidelity
through the Fidelity Loan-by-Phone feature;
(ii) No loan shall be made in an amount less than $500.
(3) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Plan's financial statements have been prepared on the accrual basis.
Investments in the Deere & Company Common Stock Fund are stated at fair
value based on the closing sales prices reported on recognized securities
exchanges on the last business day of the year. The twelve Fidelity
mutual funds are valued at quoted market prices which represent the net
asset values of shares held by the Plan at year-end. The fixed rate bank
and investment contracts and short-term investment funds are stated at
cost plus accrued interest, which approximates fair value. Loans to
participants are stated at cost plus accrued interest which approximates
fair value.
Interest on bank and insurance contracts and short-term investment funds
is occrued daily and credited to the funds at the end of each month.
Dividends are accrued in the Deere & Company Common Stock Fund as of
the record date and are reflected as an increase in the fund's net asset
value on that day but are reported separately as dividends. Dividends in
other funds are recorded on the day that they are declared (which is also
the date of record) and are allocated to participants' accounts on that
day. Earnings, including unrealized appreciation or depreciation in
market value of investments, are allocated daily among participants based
on the ratio of their respective account balances as of the close of the
preceding day.
19
<PAGE>
(4) BY FUND DISCLOSURE
Contributions, withdrawals and loan cancellations, investment income and
net appreciation (depreciation) in fair value of investments are provided
by fund for the years ended October 31, 1995 and 1994 (in thousands of
dollars):
<TABLE>
EMPLOYEE AND EMPLOYER CONTRIBUTIONS: 1995 1994
-------- --------
<S> <C> <C>
Deere & Company Common Stock Fund $ 3,416 $ 1,854
Blended Interest Fund 32,663 26,093
Fidelity U.S. Equity Index Portfolio 8,575 7,111
Fidelity Puritan Fund 7,175 4,827
Fidelity Intermediate Bond Fund 502 258
Fidelity Magellan Fund 14,924 10,696
Fidelity Overseas Equity Fund 3,301 2,102
Fidelity Retirement Money Market Portfolio 1,332 655
Fidelity Equity Income Fund 897 213
Fidelity Growth Company Fund 1,764 377
Fidelity OTC Portfolio 1,079 205
Fidelity Asset Manager Fund 1,648 884
Fidelity Asset Manager: Growth Fund 2,396 1,381
Fidelity Asset Manager: Income Fund 333 146
Other 29 0
-------- --------
Total contributions $80,034 $56,802
-------- --------
-------- --------
</TABLE>
<TABLE>
WITHDRAWALS AND LOAN CANCELLATIONS: 1995 1994
-------- --------
<S> <C> <C>
Deere & Company Common Stock Fund $ 697 $ 353
Blended Interest Fund 5,958 3,436
Fidelity U.S. Equity Index Portfolio 1,173 722
Fidelity Puritan Fund 720 359
Fidelity Intermediate Bond Fund 59 0
Fidelity Magellan Fund 1,703 818
Fidelity Overseas Equity Fund 278 93
Fidelity Retirement Money Market Portfolio 576 332
Fidelity Equity Income Fund 134 17
Fidelity Growth Company Fund 77 1
Fidelity OTC Portfolio 92 1
Fidelity Asset Manager Fund 85 145
Fidelity Asset Manager: Growth Fund 239 79
Fidelity Asset Manager: Income Fund 130 62
Loan Fund 209 185
-------- --------
Total withdrawals and loan cancellations $12,130 $ 6,603
-------- --------
-------- --------
</TABLE>
20
<PAGE>
<TABLE>
INVESTMENT INCOME: 1995 1994
-------- --------
<S> <C> <C>
Deere & Company Common Stock Fund $ 1,605 $ 453
Blended Interest Fund 24,895 23,011
Fidelity U.S. Equity Index Portfolio 2,509 3,168
Fidelity Puritan Fund 2,079 3,505
Fidelity Intermediate Bond Fund 127 115
Fidelity Magellan Fund 641 7,785
Fidelity Overseas Equity Fund 351 210
Fidelity Retirement Money Market Portfolio 348 181
Fidelity Equity Income Fund 209 72
Fidelity Growth Company Fund 119 6
Fidelity OTC Portfolio 174 3
Fidelity Asset Manager Fund 322 189
Fidelity Asset Manager: Growth Fund 327 19
Fidelity Asset Manager: Income Fund 69 54
-------- --------
Total investment income $33,775 $38,771
-------- --------
-------- --------
</TABLE>
<TABLE>
NET APPRECIATION (DEPRECIATION) IN
FAIR VALUE OF INVESTMENTS: 1995 1994
-------- --------
<S> <C> <C>
Deere & Company Common Stock Fund $14,684 $(2,300)
Blended Interest Fund 0 0
Fixed Interest Fund 0 17
Fidelity U.S. Equity Index Portfolio 19,065 (268)
Fidelity Puritan Fund 2,942 1,526)
Fidelity Intermediate Bond Fund 78 (150)
Fidelity Magellan Fund 27,052 (5,816)
Fidelity Overseas Equity Fund (441) 1,021
Fidelity Retirement Money Market Portfolio 0 0
Fidelity Equity Income Fund 405 (28)
Fidelity Growth Company Fund 1,806 29
Fidelity OTC Portfolio 1,113 1
Fidelity Asset Manager Fund 425 (505)
Fidelity Asset Manager: Growth Fund 537 (327)
Fidelity Asset Manager: Income Fund 102 (68)
-------- --------
Net appreciation (depreciation) in
fair value of investments $67,768 $(9,920)
-------- --------
-------- --------
</TABLE>
21
<PAGE>
(5) BENEFITS PAYABLE TO TERMINATED EMPLOYEES
Benefits payable to terminated employees included in net assets available
for benefits at October 31, 1995 and 1994 were $1,185,144 and $1,906,529,
respectively.
(6) TAX STATUS
The Internal Revenue Service has issued a determination letter dated
March 10, 1987 indicating that the Plan is qualified under the Internal
Revenue Code. The Plan has been amended since receiving this
determination letter. The Plan's management believes the Plan
is currently designed and being operated in accordance with applicable
rules and regulations of the Internal Revenue Code and, thus, is exempt
from federal income taxes.
Employees participating in the Plan are subject to federal income taxes
on the balances in their accounts for the calendar year in which
distributions are made by the Trustee.
(7) PLAN TERMINATION
Although it has not expressed any intention to do so, the Company has the
right to discontinue contributions at any time and to terminate the Plan
subject to the provisions set forth in ERISA. In the event of
termination of the Plan, account balances would be distributed to
participants.
22
<PAGE>
SUPPLEMENTAL SCHEDULES
23
<PAGE>
JOHN DEERE SAVINGS AND INVESTMENT PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT OCTOBER 31, 1995
<TABLE>
<CAPTION>
(000's Omitted)
------------------
Shares/ Current
Units Cost Value
--------- --------- ---------
<S> <C> <C> <C>
Deere & Company Common Stock Fund 564,828 $ 44,390 $ 50,482
--------- ---------
Blended Interest Fund
Fixed rate bank and investment
contracts with:
Confederation Life Insurance Company
at 9.10%, Maturing on December 31, 1994 8,577 8,577 8,577
Aetna Life Insurance Company at 7.37%,
Maturing 50% on February 1, 1996
and 50% on April 1, 1996 22,623 22,623 22,623
Peoples Security Life at 8.60%,
Maturing 50% on March 1, 1996
and 50% on May 1, 1996 20,727 20,727 20,727
Sun Life of Canada at 7.62%,
Maturing 50% on June 1, 1996
and 50% on September 1, 1996 24,098 24,098 24,098
Sun Life of Canada at 8.70%,
Maturing 50% on June 1, 1996
and 50% on July 1, 1996 10,659 10,659 10,659
Hartford Life Insurance Company
at 8.45%, Maturing on December 31,
1995 8,272 8,272 8,272
Provident National Assurance Company
at 7.10%, Maturing 50% on October 1,
1996 and 50% on November 1, 1996 6,466 6,466 6,466
Prudential Insurance Company of
America at 7.61%, Maturing on
February 1, 1997 10,392 10,392 10,392
Lincoln National Life Insurance Company
at 6.34%, Maturing 50% on March 1,
1997 and 50% on May 1, 1997 9,720 9,720 9,720
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
(000's Omitted)
------------------
Shares/ Current
Units Cost Value
--------- --------- ---------
<S> <C> <C> <C>
Bankers Trust Company at 5.29%,
Maturing on June 25, 1996 8,096 8,096 8,096
CIGNA at 7.91%, Open maturity 16,407 16,407 16,407
Confederation Life Insurance Company
at 2.00%, Maturing December 31, 1997 5,309 5,309 5,309
Sun Life of Canada at 6.07%, Maturing
September 1, 1997 5,863 5,863 5,863
Lincoln National Life Insurance Company
at 6.17%, Maturing 50% on September 1,
1997 and 50% on December 31, 1997 9,397 9,397 9,397
Pacific Mutual Life Insurance Company
at 5.67%, Maturing 50% on June 1, 1997
and 50% on October 31, 1997 8,450 8,450 8,450
Bankers Trust Company at 5.43%,
Maturing January 15, 1998 10,203 10,203 10,203
Lincoln National Life Insurance
Company at 5.17%, Maturing 50% on
January 2, 1997 and 50% on July 2, 1997 5,077 5,077 5,077
Sun Life Insurance of America at 5.37%,
Maturing 50% on January 1, 1997 and
50% on February 1, 1998 11,154 11,154 11,154
Prudential Life Insurance Company of
America at 5.26%, Maturing 50% on
June 30, 1998 and 50% on September 30,
1998 7,754 7,754 7,754
Sun Life Insurance of America at 6.95%,
Maturing December 31, 1998 7,778 7,778 7,778
Bankers Trust Company at 7.55%,
with principal payouts beginning
February 15, 1995 11,589 11,589 11,589
AIG Life MBS at 6.13%, with monthly
principal and interest payouts from
November 15, 1998 through March 15,
2001 9,796 9,796 9,796
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
(000's Omitted)
------------------
Shares/ Current
Units Cost Value
--------- --------- ---------
<S> <C> <C> <C>
AIG Life MBS at 6.13%, with quarterly
principal and interest payouts from
Febbruary 1, 1996 through May 1, 2000 10,105 10,105 10,105
CDC Capital Inc. BIC at 6.10%, Maturing
33 1/3 % on March 31, 1999, 33 1/3 % on
June 30, 1999 and 33 1/3 on September 30,
1999 10,218 10,218 10,218
Deutsche Bank ABS at 6.48% with monthly
principal and interest payouts from December
15, 1999 through November 15, 2000 9,681 9,681 9,681
Deutsche Bank MBS at 6.49% with monthly
principal and interest payouts from
February 25, 1999 through September 25, 2000 7,276 7,276 7,276
J. P. Morgan ABS at 7.19% with semi-annual
payouts on January 15 and July 15 through
July 15, 1999 9,981 9,981 9,981
J. P. Morgan MBS at 6.09% with monthly
principal and interest payouts from June 15,
1998 through August 15, 2001 9,275 9,275 9,275
J. P. Morgan MBS at 6.23% with monthly
principal and interest payouts from November
25, 1998 through November 25, 2000 9,735 9,735 9,735
New York Life Insurance Company at
8.10%, Maturing 50% on November 1, 1999
and 50% on December 31, 1999 10,808 10,808 10,808
Peoples Security Life ABS at 7.86% with
monthly principal and interest payouts from
September 15, 1998 through August 15,
2000 9,774 9,774 9,774
Peoples Security Life ABS at 6.60% with
monthly principal and interest payouts from
July 4, 1996 through December 4, 1996 6,545 6,545 6,545
Peoples Security Life ABS at 7.22% with
semi-annual interest payouts on January 7
and July 7 through July 7, 1998 10,660 10,660 10,660
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
(000's Omitted)
------------------
Shares/ Current
Units Cost Value
--------- --------- ---------
<S> <C> <C> <C>
Peoples Security Life ABS at 7.21% with
semi-annual interest payouts on January 7
and July 7 through July 7, 1998 4,261 4,261 4,261
Peoples Security Life MBS at 8.12% with
monthly interest payouts through January 15,
1999 and principal and interest payouts from
February 15, 1999 through July 15, 2001 9,285 9,285 9,285
Rabo Bank ABS at 6.50% with semi-annual
interest payouts on February 15 and August
15 through August 15, 2000 10,142 10,142 10,142
Rabo Bank MBS at 6.31% with monthly
principal and interest payouts from November
15, 1998 through May 15, 2000 9,840 9,840 9,840
--------- ---------
Total 375,993 375,993
--------- ---------
Fidelity U. S. Equity Index Portfolio 5,012,510 89,238 107,569
--------- ---------
Fidelity Puritan Fund 3,037,225 47,429 50,145
--------- ---------
Fidelity Intermediate Bond Fund 244,876 2,451 2,520
--------- ---------
Fidelity Magellan Fund 1,463,623 108,035 131,711
--------- ---------
Fidelity Overseas Equity Fund 683,789 19,509 19,543
--------- ---------
Fidelity Retirement Money Market Portfolio 6,787,274 6,787 6,787
--------- ---------
Fidelity Equity Income Fund 146,785 4,987 5,353
--------- ---------
Fidelity Growth Company Fund 354,720 11,843 13,359
--------- ---------
Fidelity OTC Portfolio 279,680 8,030 8,720
--------- ---------
Fidelity Asset Manager Fund 559,812 8,172 8,632
--------- ---------
Fidelity Asset Manager: Growth Fund 795,448 10,978 11,693
--------- ---------
Fidelity Asset Manager: Income Fund 143,787 1,550 1,643
--------- ---------
Fidelity U.S. Government Reserve Pool 15,632,253 15,632 15,632
--------- ---------
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
(000's Omitted)
------------------
Shares/ Current
Units Cost Value
--------- --------- ---------
<S> <C> <C> <C>
Loans to participants at 7% to 10%,
Maturing November 1995 through
October 2000 17,700 17,700
--------- ---------
Total investments $772,724 $827,482
--------- ---------
</TABLE>
The trustee maintains shares for the fixed rate bank and investment contracts
at one dollar per share. For report presentation, shares for fixed rate
contracts have been rounded to thousands.
28
<PAGE>
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED OCTOBER 31,
1995
<TABLE>
<CAPTION>
Transaction By Fund Total Total Number Of Number Realized
Or Carrier Purchases Sales Purchases Of Sales Gain(Loss)
- ------------------- --------- ----- --------- -------- ----------
<S> <C> <C> <C> <C> <C>
Deere & Company
Common Stock Fund $ 84,092,966 $99,379,495 379 271 7,941,365
Blended Interest Fund 179,355,362 112,745,527 360 279
Fidelity Magellan Fund 46,188,812 29,573,046 385 289 2,520,851
</TABLE>
There have been no transactions with the same person involving property other
than securities and no transactions with respect to securities with a person.
29
<PAGE>
EXHIBIT 99.4
JOHN DEERE TAX DEFERRED SAVINGS PLAN
FOR HOURLY AND INCENTIVE PAID EMPLOYEES
FINANCIAL STATEMENTS
FOR THE YEARS ENDED OCTOBER 31, 1995 AND 1994
AND
SUPPLEMENTAL SCHEDULES FOR THE YEAR ENDED OCTOBER 31, 1995
AND
INDEPENDENT AUDITORS' REPORT
* * * * * * * * * * * *
30
<PAGE>
JOHN DEERE TAX DEFERRED SAVINGS PLAN
FOR HOURLY AND INCENTIVE PAID EMPLOYEES
TABLE OF CONTENTS
Page
-----
Independent Auditors' Report.......................................... 2
Financial Statements for the Years Ended
October 31, 1995 and 1994:
Statements of Net Assets Available for Benefits.................... 3
Statements of Changes in Net Assets Available
for Benefits...................................................... 4
Notes to Financial Statements...................................... 5
Supplemental Schedules................................................ 13
Item 27a - Schedule of Assets Held for Investment Purposes
at October 31, 1995
Item 27d - Schedule of Reportable Transactions for the
Year Ended October 31, 1995
Supplemental Schedules Omitted As Not Applicable:
Item 27a - Schedule of Assets Held for Investment Purposes
(Investment Assets Which Were Acquired and
Disposed of Within the Plan Year)
Item 27b - Schedule of Loans or Fixed Income Obligations
Item 27c - Schedule of Leases in Default or Classified
as Uncollectible
Item 27e - Schedule of Nonexempt Transactions
31
<PAGE>
INDEPENDENT AUDITORS' REPORT
Deere & Company:
We have audited the accompanying statements of net assets available for
benefits of the John Deere Tax Deferred Savings Plan for Hourly and Incentive
Paid Employees as of October 31, 1995 and 1994, and the related statements of
changes in net assets available for benefits for the years then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of October 31,
1995 and 1994, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed on
page 1 are presented for the purpose of additional analysis and are not a
required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These schedules are the responsibility of the Plan's management. Such
schedules have been subjected to the auditing procedures applied in the
audits of the basic 1995 financial statements and, in our opinion, are fairly
stated in all material respects when considered in relation to the basic
financial statements taken as a whole.
Deloitte & Touche LLP
Chicago, Illinois
April 22, 1996
32
<PAGE>
JOHN DEERE TAX DEFERRED SAVINGS PLAN
FOR HOURLY AND INCENTIVE PAID EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
OCTOBER 31, 1995 AND 1994
(IN THOUSANDS OF DOLLARS)
_______________________________________________________________________________
<TABLE>
<CAPTION>
1995 1994
---------- --------
<S> <C> <C>
ASSETS
Investments - at fair value:
Deere & Company Common Stock Fund...................... $ 22,745 $ 19,537
Blended Interest Fund.................................. 76,387 55,148
Fidelity U.S. Equity Index Portfolio................... 23,540 17,208
Fidelity Puritan Fund.................................. 10,985 8,025
Fidelity Intermediate Bond Fund........................ 445 229
Fidelity Magellan Fund................................. 25,899 17,444
Fidelity Overseas Equity Fund.......................... 4,137 4,172
Fidelity Retirement Money Market Portfolio............. 2,881 2,358
Fidelity Equity Income Fund............................ 748 339
Fidelity Growth Company Fund........................... 1,499 359
Fidelity OTC Portfolio................................. 1,234 323
Fidelity Asset Manager Fund............................ 1,288 1,216
Fidelity Asset Manager: Growth Fund.................... 1,772 1,674
Fidelity Asset Manager: Income Fund.................... 289 178
Fidelity U.S. Government Reserve Pool.................. 5,817 7,958
Loans to participants.................................. 2,246 95
_______ _______
Total...................................... 181,912 136,263
Contributions receivable................................... 458 408
Due from brokers........................................... 169
_______ _______
Total Assets...................................... 182,539 136,671
_______ _______
LIABILITIES
Due to brokers............................................. 139
_______ _______
Net Assets Available for Benefits......................... $182,539 $136,532
======== ========
</TABLE>
________________________________________________________________________________
See Notes to Financial Statements.
33
<PAGE>
JOHN DEERE TAX DEFERRED SAVINGS PLAN
FOR HOURLY AND INCENTIVE PAID EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED OCTOBER 31, 1995 AND 1994
(IN THOUSANDS OF DOLLARS)
________________________________________________________________________________
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1995 October 31, 1994
---------------- ----------------
<S> <C> <C>
ADDITIONS
Investment income:
Dividends......................... $ 2,042 $ 3,020
Interest.......................... 5,088 4,060
-------- --------
Total........................... 7,130 7,080
-------- --------
Net appreciation (depreciation)
in fair value of investments...... 16,396 (2,417)
-------- --------
Contributions:
Employee.......................... 25,977 22,005
Employer.......................... 63 62
-------- --------
Total........................... 26,040 22,067
-------- --------
Total........................... 49,566 26,730
-------- --------
DEDUCTIONS
Withdrawals.......................... 3,534 2,978
Loan cancellations................... 25 3
-------- --------
Total........................... 3,559 2,981
-------- --------
Excess of additions over deductions.. 46,007 23,749
Net Assets Available for Benefits:
Beginning of year.................. 136,532 112,783
-------- --------
End of year........................ $182,539 $136,532
-------- --------
-------- --------
</TABLE>
________________________________________________________________________________
See Notes to Financial Statements.
34
<PAGE>
JOHN DEERE TAX DEFERRED SAVINGS PLAN
FOR HOURLY AND INCENTIVE PAID EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED OCTOBER 31, 1995 AND 1994
________________________________________________________________________________
(1) DESCRIPTION OF PLAN
The following is a general description of the John Deere Tax Deferred
Savings Plan for Hourly and Incentive Paid Employees (the Plan).
This description applies to each of the years for which financial
statements are presented. For a more complete description of the
Plan's provisions, participants should refer to the Plan agreement.
GENERAL
The Plan was established September 1, 1987 by Deere & Company (the
Company) for certain eligible employees of the Company or its
participating subsidiaries. The purpose of the Plan is to provide
employees a tax deferred method of savings and investment. It is
subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA). Expenses of the Plan are paid by
the Company.
ELIGIBILITY
Employees are eligible to participate in the Plan if they are residents
or citizens of the United States, are regular, full time
employees covered by a collective bargaining agreement (or in a
group to whom this Plan has been extended) and have completed at
least one year of service.
CONTRIBUTIONS
An eligible employee may elect to become a participant under the Plan
by filing a Tax Deferred Agreement (the Agreement) with the
Company authorizing it to reduce the participant's compensation
during the period of the employee's participation. The reduction
in compensation must be not less than $10.00 nor more than
$179.00 for each payroll period. Participants may amend or
revoke their Agreements as of the first payroll period of the
month subsequent to the filing of the appropriate forms. In
addition, in a year in which there exists consolidated prebonus,
pretax income of the Company, a Profit Sharing Contribution may
be payable to a participant. In such event, a participant may
elect to defer all or part of their share of such contributions
(in 25 percent increments) and direct that the deferred portion
be deposited to the participant's plan account at the time such
profit sharing contribution is paid to the participant.
Contributions are sent to the Plan Trustee as soon as practicable
following each payroll period and are invested by the Trustee in
the appropriate funds as specified by the participants. Monies
may be held and invested by the Trustee in short-term investment
funds until designated investments have been purchased.
35
<PAGE>
Each participant's account is credited with contributions by the
participant together with earnings allocated daily among participants
based on the ratio of their respective account balances as of the
preceding day. Participants are immediately vested in their
contributions plus allocated earnings and Company profit sharing
contributions.
All contributions are considered tax deferred under sections 401(a) and
401(k) of the Internal Revenue Code.
FUND ELECTIONS
An eligible employee enrolled in the Plan may elect to invest the
contributions in one or more investment funds.
A description of the primary investments in each fund follows:
The Deere & Company Common Stock Fund is invested in common stock
of the Company.
The Blended Interest Fund is invested in investment contracts
issued by banks and insurance companies.
The Fidelity U.S. Equity Index Portfolio is invested in the
mon stocks of the 500 companies that make up the Standard &
Poor's 500 Stock Index.
The Fidelity Puritan Fund is invested in dividend-paying common
stocks and preferred stocks and interest-paying bonds of all
types and qualities.
The Fidelity Intermediate Bond Fund is invested in bonds rated
BBB or better with an average maturity of between three and ten
years.
The Fidelity Magellan Fund is invested in a wide range of U.S.
and foreign common stocks of all types of companies with growth
potential.
The Fidelity Overseas Equity Fund is invested in securities of
companies located in the Americas (other than the U. S.), the Far
East and Pacific Basin, and Western Europe.
The Fidelity Retirement Money Market Portfolio is invested in
debt instruments maturing in one year or less, including high-
quality commercial paper, certificates of deposit, repurchase
agreements and bankers' acceptances.
The Fidelity Equity Income Fund is invested in income-producing
equity securities.
The Fidelity Growth Company Fund is invested primarily in common
stocks and convertibles of emerging growth companies.
36
<PAGE>
The Fidelity OTC Portfolio is invested primarily in common stocks
of smaller companies that are traded in the over-the counter
securities market.
The Fidelity Asset Manager Fund is invested in stocks, bonds and
short-term instruments.
The Fidelity Asset Manager: Growth Fund is invested in a higher
level of income-producing stocks, bonds and short-term
instruments.
The Fidelity Asset Manager: Income Fund is invested in stocks,
bonds, short-term instruments and other investments.
A listing of the funds and the number of participants in each fund at
October 31, 1995 and 1994 follows. The number of participants shown
below includes both active participants and former employees who have
elected deferred distributions.
<TABLE>
<CAPTION>
NAME OF FUND NUMBER OF PARTICIPANTS
1995 1994
----- -----
<S> <C> <C>
Deere & Company Common Stock Fund .................. 4,503 4,717
Blended Interest Fund............................... 5,060 4,812
Fidelity U.S. Equity Index Portfolio................ 2,061 2,041
Fidelity Puritan Fund............................... 1,674 1,544
Fidelity Intermediate Bond Fund..................... 162 119
Fidelity Magellan Fund.............................. 2,712 2,515
Fidelity Overseas Equity Fund....................... 833 829
Fidelity Retirement Money Market Portfolio.......... 558 502
Fidelity Equity Income Fund......................... 179 92
Fidelity Growth Company Fund........................ 329 130
Fidelity OTC Portfolio.............................. 274 102
Fidelity Asset Manager Fund......................... 231 221
Fidelity Asset Manager: Growth Fund................. 338 351
Fidelity Asset Manager: Income Fund................. 66 44
</TABLE>
LOANS
Effective June 1, 1995, the Plan added a loan provision for all
participants. Loans must amount to at least $1,000 and are limited to
the lesser of $50,000 (reduced by the participant's highest
outstanding loan balance during the immediately preceding one year
period) or 50 percent of their account balances on the effective dates
of the loans, may not exceed 54 months in duration and are disbursed
to applicants monthly. Repayment is intended to be made via weekly
payroll deductions. Interest is assessed at a rate which is
determined after reviewing the published prime interest rate, the
5-year consumers' savings rate and the current yield of the Blended
Interest Fund. The loans have maturities ranging from November 1995
through October 2000 and bear interest at rates ranging from 9.5
percent to 10 percent per annum. Loans outstanding at October 31,
1994 are due from participants in the former Funk Savings Plan for
Hourly Employees which was merged with the Plan on May 1, 1992. There
are no loans in default.
37
<PAGE>
DISTRIBUTIONS
All distributions under the Plan are lump-sum. Distributions are not
permitted while the participants are employed by the Company unless a
distribution is required to meet legal requirements. Participants who
have terminated employment with the Company or retired may elect an
immediate distribution or may defer this distribution up to age 70
1/2. The beneficiary of a participant who died may elect a deferred
distribution payable not later than five years after the participant's
death. Distributions from the Deere & Company Common Stock Fund may be
in cash or whole shares and residual cash. Distributions from all of
the other funds are in cash.
Effective January 1, 1996, four additional distribution options were
made available to participants:
(a) Level Sum Distribution: A specified dollar amount is distributed
monthly.
(b) Decremental Distribution: A decremental withdrawal is made over a
specified period of time.
(c) Unscheduled, Partial Distribution: Unscheduled amounts are
distributed at the discretion of the participant.
(d) Mandated Distribution After 70 1/2: By April 1 of the year
following the year in which the participant turns 70 1/2, the
participant must either take a lump sum distribution or begin
systematic withdrawals which are actuarially determined.
HARDSHIP WITHDRAWALS
Participants in the Plan, under Internal Revenue Service
guidelines, may request hardship withdrawals for heavy and
immediate financial needs which cannot be reasonably met
from other resources of the participant.
ADMINISTRATION
The Company is Administrator of the Plan. Fidelity Management Trust
Company (Fidelity), Boston, Massachusetts, is the Plan Trustee,
Investment Manager and Recordkeeper.
(2) AMENDMENTS
Effective January 1, 1994, the Plan was amended to allow participants to
invest their contributions in six additional investment funds. The new
investment options are:
Fidelity Equity Income Fund Fidelity Asset Manager Fund
Fidelity Growth Company Fund Fidelity Asset Manager: Growth Fund
Fidelity OTC Portfolio Fidelity Asset Manager: Income Fund
38
<PAGE>
(3) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Plan's financial statements have been prepared on the accrual basis.
Investments in the Deere & Company Common Stock Fund are stated at fair
value based on the closing sales prices reported on recognized securities
exchanges on the last business day of the year. The twelve Fidelity
mutual funds are valued at quoted market prices which represent the net
asset values of shares held by the Plan at year-end. The fixed rate bank
and investment contracts and short-term investment funds are stated at
cost plus accrued interest, which approximates fair value. Loans to
participants are stated at cost plus accrued interest which approximates
fair value.
Interest on bank and insurance contracts and short-term investment funds
is accrued and credited to the funds at the end of each month. Dividends
are accrued in the Deere & Company Common Stock Fund as of the record
date and are reflected as an increase in the fund's net asset value on
that day but are reported separately as dividends. Dividends in other
funds are recorded on the day that they are declared (which is also the
date of record) and are allocated to participants' accounts on that day.
Earnings, including unrealized appreciation or depreciation in market
value of investments, are allocated daily among participants based on the
ratio of their respective account balances as of the close of the
preceding day.
39
<PAGE>
(4) BY FUND DISCLOSURE
Contributions, withdrawals and loan cancellations, investment income and
net appreciation (depreciation) in fair value of investments are provided
by fund for the years ended October 31, 1995 and 1994 (in thousands of
dollars):
<TABLE>
<CAPTION>
EMPLOYEE AND EMPLOYER CONTRIBUTIONS: 1995 1994
-------- --------
<S> <C> <C>
Deere & Company Common Stock Fund $ 2,189 $ 1,337
Blended Interest Fund 10,928 9,714
Fidelity U.S. Equity Index Portfolio 2,643 2,567
Fidelity Puritan Fund 2,452 2,031
Fidelity Intermediate Bond Fund 145 129
Fidelity Magellan Fund 4,435 3,970
Fidelity Overseas Equity Fund 1,052 905
Fidelity Retirement Money Market Portfolio 662 572
Fidelity Equity Income Fund 175 46
Fidelity Growth Company Fund 264 90
Fidelity OTC Portfolio 204 67
Fidelity Asset Manager Fund 289 230
Fidelity Asset Manager: Growth Fund 474 337
Fidelity Asset Manager: Income Fund 78 46
Other 50 26
-------- --------
Total contributions $26,040 $22,067
-------- --------
-------- --------
</TABLE>
<TABLE>
<CAPTION>
WITHDRAWALS AND LOAN CANCELLATIONS: 1995 1994
-------- --------
<S> <C> <C>
Deere & Company Common Stock Fund $ 474 $ 290
Blended Interest Fund 1,788 1,824
Fixed Interest Fund 0 5
Fidelity U.S. Equity Index Portfolio 350 283
Fidelity Puritan Fund 195 65
Fidelity Intermediate Bond Fund 3 7
Fidelity Magellan Fund 406 230
Fidelity Overseas Equity Fund 76 25
Fidelity Retirement Money Market Portfolio 179 219
Fidelity Equity Income Fund 8 4
Fidelity Growth Company Fund 23 10
Fidelity OTC Portfolio 6 12
Fidelity Asset Manager Fund 12 0
Fidelity Asset Manager: Growth Fund 14 4
Fidelity Asset Manager: Income Fund 0 0
Loan Fund 25 3
-------- --------
Total withdrawals and loan cancellations $ 3,559 $ 2,981
-------- --------
-------- --------
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT INCOME: 1995 1994
-------- --------
<S> <C> <C>
Deere & Company Common Stock Fund $ 627 $ 147
Blended Interest Fund 5,064 4,052
Fidelity U.S. Equity Index Portfolio 521 622
Fidelity Puritan Fund 417 653
Fidelity Intermediate Bond Fund 22 19
Fidelity Magellan Fund 96 1,431
Fidelity Overseas Equity Fund 69 39
Fidelity Retirement Money Market Portfolio 152 82
Fidelity Equity Income Fund 29 6
Fidelity Growth Company Fund 15 0
Fidelity OTC Portfolio 24 0
Fidelity Asset Manager Fund 42 23
Fidelity Asset Manager: Growth Fund 43 0
Fidelity Asset Manager: Income Fund 9 6
-------- --------
Total investment income $ 7,130 $ 7,080
-------- --------
-------- --------
</TABLE>
<TABLE>
<CAPTION>
NET APPRECIATION (DEPRECIATION) IN
FAIR VALUE OF INVESTMENTS: 1995 1994
-------- --------
<S> <C> <C>
Deere & Company Common Stock Fund $ 5,343 $(1,139)
Blended Interest Fund 0 0
Fixed Interest Fund 0 (1)
Fidelity U.S. Equity Index Portfolio 4,249 (19)
Fidelity Puritan Fund 648 (290)
Fidelity Intermediate Bond Fund 14 (25)
Fidelity Magellan Fund 5,604 (1,026)
Fidelity Overseas Equity Fund (82) 216
Fidelity Retirement Money Market Portfolio 0 0
Fidelity Equity Income Fund 58 1
Fidelity Growth Company Fund 210 1
Fidelity OTC Portfolio 176 (1)
Fidelity Asset Manager Fund 58 (71)
Fidelity Asset Manager: Growth Fund 101 (55)
Fidelity Asset Manager: Income Fund 17 (8)
-------- --------
Net appreciation (depreciation) in
fair value of investments $16,396 $(2,417)
-------- --------
-------- --------
</TABLE>
41
<PAGE>
(5) BENEFITS PAYABLE TO TERMINATED EMPLOYEES
Benefits payable to terminated employees included in net assets available
for benefits at October 31, 1995 and 1994 were $515,322 and $196,591,
respectively.
(6) TAX STATUS
The Internal Revenue Service has issued a determination letter indicating
that the Plan, as adopted on February 1, 1987 and effective as of
September 1, 1987, is qualified under the Internal Revenue Code. The
Plan has been amended since receiving this determination letter. The
Plan's management believes that the Plan is currently designed and being
operated in accordance with applicable rules and regulations of the
Internal Revenue Code and, thus, is exempt from federal income tax.
Employees participating in the Plan are subject to federal income taxes on
the balances in their accounts for the calendar year in which
distributions are made by the Trustee.
(7) PLAN TERMINATION
Although it has not expressed any intention to do so, the Company has the
right to discontinue contributions at any time and to terminate the Plan
subject to the provisions set forth in ERISA. In the event of termination
of the Plan, account balances would be distributed to participants.
42
<PAGE>
SUPPLEMENTAL SCHEDULES
43
<PAGE>
JOHN DEERE TAX DEFERRED SAVINGS PLAN
FOR HOURLY AND INCENTIVE PAID EMPLOYEES
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT OCTOBER 31, 1995
<TABLE>
<CAPTION>
(000's Omitted)
-------------------
Shares/ Current
Units Cost Value
--------- --------- -------
<S> <C> <C> <C>
Deere & Company
Common Stock Fund...................... 254,491 $19,853 $22,745
--------- -------
Blended Interest Fund
Fixed rate bank and investment
contracts with:
Aetna Life Insurance Company at
7.37%, Maturing 50% on February 1,
1996 and 50% on April 1, 1996.......... 3,947 3,947 3,947
Peoples Security Life at 8.60%,
Maturing 50% on March 1, 1996 and
50% on May 1, 1996..................... 2,144 2,144 2,144
Sun Life of Canada at 8.70%,
Maturing 50% on June 1, 1996 and
50% on July 1, 1996.................... 3,633 3,633 3,633
The Hartford Life Insurance Company
at 8.45%, Maturing on December 31, 1995 1,938 1,938 1,938
Lincoln National Life Insurance
Company at 6.34%, Maturing 50% on
March 1, 1997 and 50% on May 1, 1997... 2,434 2,434 2,434
CIGNA at 7.72%, Open maturity.......... 1,890 1,890 1,890
Provident National Life Insurance
Company at 7.10%, Maturing 50%
on October 1, 1996 and 50% on
November 1, 1996....................... 1,930 1,930 1,930
Lincoln National Life Insurance
Company at 6.17%, Maturing 50% on
September 1, 1997 and 50% on
September 30, 1998..................... 2,351 2,351 2,351
</TABLE>
44
<PAGE>
<TABLE>
<CAPTION>
(000's Omitted)
-------------------
Shares/ Current
Units Cost Value
--------- --------- -------
<S> <C> <C> <C>
Pacific Mutual Life Insurance
Company at 5.67%, Maturing 50%
on June 1, 1997 and 50% on
October 31, 1997....................... 3,475 3,475 3,475
Prudential Insurance Company of
America at 5.26%, Maturing 50%
on June 30, 1998 and 50% on
September 30, 1998.................... 3,099 3,099 3,099
Bankers Trust Company at 7.55%,
with monthly principal and interest
payouts through April 15, 1999........ 2,897 2,897 2,897
Sun Life Insurance Company of
America at 6.95%, Maturing on
December 31, 1998..................... 3,334 3,334 3,334
AIG Life MBS at 6.13%,
Maturing on May 1, 2000............... 4,042 4,042 4,042
Deutsche Bank MBS at 6.40%,
Maturing June 25, 1998 with monthly
payouts of principal and interest
through September 25, 2000............ 3,351 3,351 3,351
Deutsche Bank MBS at 6.18%,
Maturing November 15, 1996 with
monthly payouts of principal and
interest through September 15, 1997... 2,947 2,947 2,947
Morgan Guaranty ABS at 6.04%,
Maturing December 15, 1997 with
monthly interest payouts.............. 4,087 4,087 4,087
New York Life Insurance Company
at 8.10%, Maturing 50% on November 1,
1999 and 50% on December 31, 1999..... 5,404 5,404 5,404
Peoples Security Life ABS at 6.34%,
with semi-annual payouts on
January 15 and July 15 and a final
payout on August 15, 1997............. 4,160 4,160 4,160
</TABLE>
45
<PAGE>
<TABLE>
<CAPTION>
(000's Omitted)
-------------------
Shares/ Current
Units Cost Value
--------- --------- -------
<S> <C> <C> <C>
Peoples Security Life ABS at 7.86%,
Maturing on September 15, 1998
with monthly principal and interest
payouts through August 15, 2000........ 3,910 3,910 3,910
Peoples Security Life ABS at 7.24%,
with semi-monthly payouts on
January 7 and July 7 and a final
payout on July 7, 1998................. 4,261 4,261 4,261
Peoples Security Life ABS at 6.16%,
with semi-annual payouts on
January 15 and July 15 and a final
payout on January 15, 1997............. 3,593 3,593 3,593
Protective Life Insurance Company at
7.15%, Maturing 50% on April 1, 1999
and 50% on June 1, 1999................ 3,640 3,640 3,640
Rabo Bank MBS at 6.45%, Maturing
October 15,1998 with monthly principal
and interest payouts through
May 15, 2000........................... 3,920 3,920 3,920
------- -------
Total............................ 76,387 76,387
------- -------
Fidelity U.S. Equity Index Portfolio... 1,096,912 19,497 23,540
------- -------
Fidelity Puritan Fund.................. 665,385 10,394 10,985
------- -------
Fidelity Intermediate Bond Fund........ 43,265 434 445
------- -------
Fidelity Magellan Fund................. 287,801 21,085 25,899
------- -------
Fidelity Overseas Equity Fund.......... 144,755 4,120 4,137
------- -------
Fidelity Retirement
Money Market Portfolio........... 2,880,940 2,881 2,881
------- -------
Fidelity Equity Income Fund............ 20,497 695 748
------- -------
Fidelity Growth Company Fund........... 39,802 1,352 1,499
------- -------
Fidelity OTC Portfolio................. 39,567 1,132 1,234
------- -------
Fidelity Asset Manager Fund............ 83,539 1,219 1,288
------- -------
</TABLE>
46
<PAGE>
<TABLE>
<CAPTION>
(000's Omitted)
-------------------
Shares/ Current
Units Cost Value
--------- --------- -------
<S> <C> <C> <C>
Fidelity Asset Manager:
Growth Fund......................... 120,540 1,653 1,772
------- -------
Fidelity Asset Manager: Income Fund... 25,319 274 289
------- -------
Fidelity U. S. Government
Reserve Pool........................ 5,816,923 5,817 5,817
------- -------
Loans to participants at 9.5% to
10%, Maturing November 1995
through October 2000.................. 2,246 2,246
------- -------
Total investments $169,039 $181,912
------- -------
------- -------
</TABLE>
The trustee maintains shares for the fixed rate bank and investment contracts at
one dollar per share. For report presentation, shares for fixed rate contracts
have been rounded to thousands.
47
<PAGE>
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR
ENDED OCTOBER 31, 1995
<TABLE>
<CAPTION>
Transaction by Fund Total Total Number Of Number Of Realized
Or Carrier Purchases Sales Purchases Sales Gain (Loss)
- -------------------- ----------- ----------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
Deere & Company
Common Stock Fund $17,154,256 $19,024,264 311 225 $1,914,124
Blended Interest Fund 40,522,038 21,380,804 317 244
Fidelity Puritan Fund 4,361,108 2,048,202 271 161 41,021
Fidelity Magellan Fund 9,812,878 6,961,596 306 215 695,302
</TABLE>
There have been no transactions with the same person involving property other
than securities and no transactions with respect to securities with a person.
48
