- -------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: February 15, 2000
(Date of earliest event reported)
D E E R E & C O M P A N Y
(Exact name of registrant as specified in charter)
DELAWARE
(State or other jurisdiction of incorporation)
1-4121
(Commission File Number)
36-2382580
(IRS Employer Identification No.)
One John Deere Place
Moline, Illinois 61265
(Address of principal executive offices and zip code)
(309)765-8000
(Registrant's telephone number, including area code)
_______________________________________
(Former name or former address, if changed since last report.)
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<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
(c) Exhibits
(99) Press release and additional information.
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<PAGE>
SIGNATURE
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 hereto duly authorized.
DEERE & COMPANY
By: /s/ Michael A. Harring
-------------------------
Michael A. Harring,
Secretary
Dated: February 15, 2000
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EXHIBIT INDEX
Sequential
Number and Description of Exhibit Page Number
(99) Press release and additional information Pg. 5
Page 4
<PAGE>
EXHIBIT 99
(DEERE LOGO)
Contact: Greg Derrick
Deere & Company
(309) 765-5290
DEERE & COMPANY REPORTS FIRST-QUARTER PROFIT
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For Immediate Release February 15, 2000
. Results remain profitable despite ag downturn, seasonal
weakness.
. Performance reflects success of growth and quality
initiatives.
. Aggressive, timely action in prior year keeps Deere on
track for improved 2000.
. First-quarter net income $37.7 million; net sales and
revenues $2.339 billion.
MOLINE, IL (February 15, 2000) -- Deere & Company today
reported first-quarter net income of $37.7 million, or $.16 per
share, for the quarter ended January 31, 2000, compared with
$49.7 million, or $.21 per share, in last year's first quarter.
Depressed agricultural commodity prices continued to severely
affect demand for agricultural equipment during the period.
Production schedules in agricultural and construction equipment
were at planned low levels during the quarter, reflecting
improved order-fulfillment processes in construction equipment
and the balancing of agricultural-equipment production with
present levels of demand.
"Under current circumstances, it is especially gratifying to
show positive results, particularly during a quarter that has
historically been the seasonally weakest period for the
industry," commented Hans W. Becherer, chairman and chief
executive officer. "This is evidence of our progress in growth
and quality initiatives, shows our success in achieving increased
diversification of our business lines, and leaves our business
plans for the year on track."
Worldwide net sales and revenues for the quarter decreased 5
percent, to $2.339 billion, compared with $2.459 billion last
year. Net equipment sales were $1.880 billion for the quarter,
compared with $1.973 billion last year. Overseas net sales for
the quarter were $551 million, compared with $572 million the
previous year. Excluding the impact of the stronger U.S. dollar,
overseas sales for the quarter would have shown a 4 percent
increase over last year. Overall, the company's physical volume
of sales decreased 3 percent for the period.
Worldwide equipment operations had an operating profit of $20
million for the first quarter of 2000, compared with $51 million
last year. Lower sales, an adverse sales mix and
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<PAGE>
product-development costs of the newly formed special
technologies group, partially offset by lower pension costs,
affected this year's results.
. Operating profit of the worldwide agricultural equipment
division for the first quarter of 2000 was $14 million, compared
with $18 million last year. Results for the quarter reflected the
impact of lower sales, as well as cost reductions and improved
efficiencies from the restructuring activities of these
operations. Significantly, North American used-goods receivables
continued to decline during the quarter. Overseas agricultural-
equipment sales, excluding the impact of the stronger U.S. dollar
for the quarter, were slightly higher than last year. The
overseas operations continued to be positive contributors to the
division's results.
. Operating profit of the worldwide construction equipment
division was $11 million, compared with $25 million last year.
Lower sales and production volumes affected this year's quarterly
results, due to full implementation of the estimate-to-cash
program, anticipated lower demand, and a reversal of sales and
cost of sales related to company equipment held in inventory by a
recently established joint venture.
. Operating profit of the worldwide commercial and consumer
equipment division for the quarter was $9 million, compared with
$12 million last year. Although the division's sales continued
to increase, operations were adversely affected by higher selling
and administrative costs related to growth, as well as by
inefficiencies and costs related to the relocation of the
handheld-product operations.
. Net income of the credit operations was $41 million for the
first quarter, compared with $42 million last year. This year's
results were affected by higher operating costs and lower income
from the sale of retail notes, partially offset by higher income
from a higher average portfolio.
. The company's other businesses had operating losses of $9
million for the first quarter, compared with operating losses of
$3 million last year. Current-year results reflected goodwill
amortization and higher costs related to the development of new
products of the special technologies group. Partially offsetting
these factors was higher operating profit of the health-care
operations.
MARKET CONDITIONS AND OUTLOOK
- -----------------------------
. AGRICULTURAL EQUIPMENT. Last month, the USDA lowered its
estimates of carryover stocks, following a change in the
assessment of the size of the 1999 corn crop and increased usage.
Although grain and oilseed prices have improved slightly on this
news and on concerns about dryness in certain areas of the United
States, prices remain at low levels and demand for farm equipment
remains very weak. At this time, Deere continues to expect that
industry retail sales of farm machinery in North America will be
off approximately 5 to 10 percent this year, compared with 1999
levels. Similar declines are expected in other major markets.
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<PAGE>
. CONSTRUCTION EQUIPMENT. The market for these products
remains extremely competitive. In addition, the Federal Reserve
continues its efforts to slow the economy through a series of
increases in short-term interest rates. In this environment,
Deere continues to expect construction-industry sales to be down
5 to 10 percent for the year. Retail sales of the company's
products, however, are expected be higher in the remainder of the
year due to an expanded product line. Additionally, year-2000
production is expected to benefit from tracking more closely with
retail demand than was the case in 1999 when dealers were
reducing their inventories.
. COMMERCIAL & CONSUMER EQUIPMENT. Continuing a trend of
strong gains, retail demand for Deere's commercial and consumer
equipment is expected to achieve further growth this year,
assuming normal weather patterns and a continuation of current
economic conditions. These operations should continue to benefit
from market-share growth, positive customer response to recently
introduced products and international expansion.
. CREDIT OPERATIONS. Credit is expected to continue benefiting
from a larger receivable and lease portfolio this year. However,
higher growth expenditures, lower gains on the sale of retail
notes and continued weakness in the agricultural economy are
expected to keep pressure on margins and have an adverse effect
on this year's results.
Based on these conditions, the company continues to expect
its worldwide physical volume of sales to increase by
approximately 10 percent for the year 2000. Second-quarter
physical volumes are expected to be about 15 percent higher than
in the comparable 1999 period.
"Our results are clearly benefiting from an aggressive and
timely response to market conditions, as well as from the pursuit
of our growth and quality initiatives," Becherer said. "In spite
of a market that continues to be challenging, we are on track to
achieve improved results this year."
JOHN DEERE CAPITAL CORPORATION
The following is disclosed on behalf of the company's credit
subsidiary, John Deere Capital Corporation (JDCC), in connection
with the disclosure requirements applicable to its periodic
issuance of debt securities in the public market. JDCC net income
was $36.2 million for the first quarter of 2000, compared with
$37.4 million last year. First quarter results were affected by
higher operating expenses and lower income from the sale of
retail notes, partially offset by higher income on a larger
average receivable and lease portfolio.
Net receivables and leases financed by JDCC were $7.335
billion at January 31, 2000, compared with $6.803 billion one
year ago. The increase resulted from acquisitions exceeding
collections during the last 12 months, partially offset by sales
of retail notes. Net receivables and leases administered, which
include receivables previously sold, totaled $9.432 billion at
January 31, 2000, compared with $8.580 billion at January 31,
1999.
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SAFE HARBOR STATEMENT
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995. Statements under the "Market Conditions and
Outlook" heading and elsewhere herein, which relate to future
operating periods, are subject to important risks and
uncertainties that could cause actual results to differ
materially. Forward looking statements relating to the company's
businesses involve certain factors that are subject to change,
including: the many interrelated factors that affect farmers'
confidence, including worldwide demand for agricultural products,
world grain stocks, commodities prices, weather conditions, real
estate values, animal diseases, crop pests, harvest yields and
government farm programs; general economic conditions and housing
starts; legislation, primarily legislation relating to
agriculture, the environment, commerce and government spending on
infrastructure; actions of competitors in the various industries
in which the company competes; levels of new and used field
inventories, production difficulties, including capacity and
supply constraints; dealer practices; labor relations; interest
and currency exchange rates; technological difficulties;
accounting standards; and other risks and uncertainties. The
impact and timing of the previously announced Timberjack
acquisition is uncertain, including the impact of post-merger
integration costs and the amortization of intangibles. The number
of housing starts is especially important to sales of
construction equipment. Sales of commercial and consumer
equipment during the spring are affected by the amount and timing
of spring weather patterns. The company's outlook is based upon
assumptions relating to the factors described above, which are
sometimes based upon estimates and data prepared by government
agencies. These estimates and data are often revised. Further
information concerning the company and its businesses, including
factors that potentially could materially affect the company's
financial results, is included in the company's filings with the
Securities and Exchange Commission.
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<PAGE>
FIRST QUARTER 2000 PRESS RELEASE
(millions of dollars and shares except per share amounts)
Three Months Ended
January 31
----------------------
%
2000 1999 Change
---- ---- ------
Net sales and revenues:
Agricultural equipment net sales $1,035 $1,157 - 11
Construction equipment net sales 338 387 - 13
Commercial and consumer equipment
net sales 493 429 + 15
Other net sales 14
------ ------
Total net sales 1,880 1,973 - 5
Credit revenues 301 261 + 15
Other revenues 158 225 - 30
------ ------
Total net sales and revenues* $2,339 $2,459 - 5
====== ======
Operating profit:
Agricultural equipment $ 14 $ 18 - 22
Construction equipment 11 25 - 56
Commercial and consumer equipment 9 12 - 25
Credit 64 65 - 2
Other (9) (3) +200
------ ------
Total operating profit* 89 117 - 24
Interest, corporate expenses
and income taxes (51) (67) - 24
------ ------
Net income $ 38 $ 50 - 24
====== ======
Per Share:
Net income - basic $ .16 $ .21 - 24
Net income - diluted $ .16 $ .21 - 24
* Includes overseas equipment
operations:
Net sales $ 551 $ 572 - 4
Operating profit $ 33 $ 54 - 39
January 31 October 31 January 31
2000 1999 1999
---------- ---------- ----------
Equipment Operations:
Trade accounts and notes
receivable - net $ 3,180 $ 3,251 $3,829
Inventories $ 1,781 $ 1,294 $1,615
Financial Services:
Financing receivables and
leases financed - net $ 8,660 $ 8,276 $7,870
Financing receivables and
leases administered -
net $11,008 $10,992 $9,820
Average shares outstanding $ 233.9 $ 232.9 $231.7
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<PAGE>
DEERE & COMPANY CONSOLIDATED
STATEMENT OF CONSOLIDATED INCOME (Deere & Company and
Consolidated Subsidiaries)
- --------------------------------------------------------------
Millions of dollars except per Three Months Ended
share amounts January 31
(Unaudited) 2000 1999
Net Sales and Revenues
Net sales of equipment $1,880.0 $1,973.2
Finance and interest income 303.4 259.0
Insurance and health care premiums 112.5 179.8
Investment income 9.1 18.7
Other income 34.3 27.8
Total 2,339.3 2,458.5
Costs and Expenses
Cost of goods sold 1,552.5 1,653.8
Research and development expenses 102.6 95.9
Selling, administrative and general
expenses 315.4 301.8
Interest expense 146.8 134.1
Insurance and health care claims
and benefits 90.3 153.9
Other operating expenses 71.9 42.7
Total 2,279.5 2,382.2
Income of Consolidated Group
Before Income Taxes 59.8 76.3
Provision for income taxes 20.8 26.5
Income of Consolidated Group 39.0 49.8
Equity in Income (Loss) of Unconsolidated
Subsidiaries and Affiliates
Credit .1 .4
Other (1.4) (.5)
Total (1.3) (.1)
Net Income $ 37.7 $ 49.7
Per Share:
Net income - basic $ .16 $ .21
Net income - diluted $ .16 $ .21
See Notes to Interim Financial Statements. Supplemental
consolidating data are shown for the "Equipment Operations" and
"Financial Services". Transactions between the "Equipment
Operations" and "Financial Services" have been eliminated to
arrive at the "Consolidated" data.
<PAGE>
DEERE & COMPANY EQUIPMENT OPERATIONS
STATEMENT OF CONSOLIDATED INCOME (Deere & Company with
Financial Services
on the Equity Basis)
- --------------------------------------------------------
Millions of dollars except per Three Months Ended
share amounts January 31
(Unaudited) 2000 1999
Net Sales and Revenues
Net sales of equipment $1,880.0 $1,973.2
Finance and interest income 25.0 21.8
Insurance and health care premiums
Investment income 6.6
Other income 22.5 15.5
Total 1,934.1 2,010.5
Costs and Expenses
Cost of goods sold 1,556.8 1,658.5
Research and development expenses 102.6 95.9
Selling, administrative and general
expenses 239.4 207.8
Interest expense 36.8 39.9
Insurance and health care claims
and benefits
Other operating expenses 7.6 (2.2)
Total 1,943.2 1,999.9
Income of Consolidated Group
Before Income Taxes (9.1) 10.6
Provision for income taxes (4.0) 3.8
Income of Consolidated Group (5.1) 6.8
Equity in Income (Loss) of Unconsolidated
Subsidiaries and Affiliates
Credit 41.0 41.6
Other 1.8 1.3
Total 42.8 42.9
Net Income $ 37.7 $ 49.7
<PAGE>
DEERE & COMPANY FINANCIAL SERVICES
STATEMENT OF CONSOLIDATED INCOME
- --------------------------------------------------------
Three Months Ended
Millions of dollars except per January 31
share amounts) 2000 1999
(unaudited)
Net Sales and Revenues
Net sales of equipment
Finance and interest income $ 282.9 $ 240.7
Insurance and health care premiums 117.6 186.6
Investment income 2.5 18.7
Other income 19.2 20.7
Total 422.2 466.7
Costs and Expenses
Cost of goods sold
Research and development expenses
Selling, administrative and general
expenses 76.9 95.2
Interest expense 114.5 97.6
Insurance and health care claims
and benefits 90.3 155.7
Other operating expenses 71.6 52.5
Total 353.3 401.0
Income of Consolidated Group
Before Income Taxes 68.9 65.7
Provision for income taxes 24.7 22.7
Income of Consolidated Group 44.2 43.0
Equity in Income (Loss) of Unconsolidated
Subsidiaries and Affiliates
Credit .1 .4
Other .1
Total .2 .4
Net Income $ 44.4 $ 43.4
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DEERE & COMPANY CONSOLIDATED
CONDENSED CONSOLIDATED (Deere & Company and
BALANCE SHEET Consolidated Subsidiaries)
- --------------------------------------------------------------
Millions of dollars January 31 October 31 January 31
(Unaudited) 2000 1999 1999
Assets
Cash and short-term
investments $ 297.5 $ 295.5 $ 325.5
Cash deposited with
unconsolidated subsidiaries
Cash and cash equivalents 297.5 295.5 325.5
Marketable securities 115.5 315.5 870.8
Receivables from
unconsolidated subsidiaries
and affiliates 20.4 30.2 48.4
Trade accounts and notes
receivable - net 3,180.1 3,251.1 3,828.8
Financing receivables - net 6,998.4 6,742.6 6,696.7
Other receivables 258.1 273.9 519.3
Equipment on operating
leases - net 1,752.7 1,654.7 1,256.5
Inventories 1,781.0 1,294.3 1,614.7
Property and equipment - net 1,751.3 1,782.3 1,674.3
Investments in unconsolidated
subsidiaries and affiliates 166.0 151.5 173.8
Intangible assets - net 294.1 295.1 212.0
Prepaid pension costs 621.4 619.9 662.3
Other assets 199.3 185.5 103.5
Deferred income taxes 625.8 598.1 400.2
Deferred charges 82.8 88.0 116.4
Total $18,144.4 $17,578.2 $18,503.2
Liabilities and Stockholders'
Equity
Short-term borrowings $ 5,493.0 $ 4,488.2 $ 5,871.2
Payables to unconsolidated
subsidiaries and affiliates 31.5 15.5 31.9
Accounts payable and
accrued expenses 2,327.7 2,432.8 2,359.5
Insurance and health care
claims and reserves 60.7 55.4 402.9
Accrued taxes 120.0 144.8 141.7
Deferred income taxes 61.8 63.0 18.3
Long-term borrowings 3,457.2 3,806.2 3,275.7
Retirement benefit accruals
and other liabilities 2,497.7 2,478.0 2,373.5
Total liabilities 14,049.6 13,483.9 14,474.7
Stockholders' equity 4,094.8 4,094.3 4,028.5
Total $18,144.4 $17,578.2 $18,503.2
See Notes to Interim Financial Statements. Supplemental
consolidating data are shown for the "Equipment Operations" and
"Financial Services". Transactions between the "Equipment
Operations" and "Financial Services" have been eliminated to
arrive at the "Consolidated" data.
<PAGE>
DEERE & COMPANY EQUIPMENT OPERATIONS
CONDENSED CONSOLIDATED (Deere & Company with Financial
BALANCE SHEET Services on the Equity Basis)
- --------------------------------------------------------------
Millions of dollars January 31 October 31 January 31
(Unaudited) 2000 1999 1999
Assets
Cash and short-term
investments $ 116.1 $ 111.7 $ 80.3
Cash deposited with
unconsolidated subsidiaries 117.4 92.8
Cash and cash equivalents 116.1 229.1 173.1
Marketable securities 205.3
Receivables from
unconsolidated subsidiaries
and affiliates 280.6 266.0 227.4
Trade accounts and notes
receivable - net 3,180.1 3,251.1 3,828.8
Financing receivables - net 89.2 118.4 83.4
Other receivables 122.8 129.4 42.2
Equipment on operating
leases - net 1.8 2.6
Inventories 1,781.0 1,294.3 1,614.7
Property and equipment - net 1,706.2 1,738.8 1,625.7
Investments in unconsolidated
subsidiaries and affiliates 1,431.6 1,362.8 1,693.9
Intangible assets - net 293.8 294.8 204.8
Prepaid pension costs 621.4 619.9 662.3
Other assets 104.0 95.7 73.9
Deferred income taxes 620.1 592.9 379.1
Deferred charges 76.3 80.8 85.5
Total $10,425.0 $10,281.9 $10,694.8
Liabilities and Stockholders'
Equity
Short-term borrowings $ 933.9 $ 642.2 $ 2,076.2
Payables to unconsolidated
subsidiaries and affiliates 60.5 15.5 31.9
Accounts payable and
accrued expenses 1,706.8 1,891.9 1,473.8
Insurance and health care
claims and reserves
Accrued taxes 105.7 138.1 136.3
Deferred income taxes 7.4 7.2 5.5
Long-term borrowings 1,040.9 1,036.1 601.2
Retirement benefit accruals
and other liabilities 2,475.0 2,456.6 2,341.4
Total liabilities 6,330.2 6,187.6 6,666.3
Stockholders' equity 4,094.8 4,094.3 4,028.5
Total $10,425.0 $10,281.9 $10,694.8
<PAGE>
DEERE & COMPANY FINANCIAL SERVICES
CONDENSED CONSOLIDATED
BALANCE SHEET
- --------------------------------------------------------------
Millions of dollars January 31 October 31 January 31
(Unaudited) 2000 1999 1999
Assets
Cash and short-term
investments $ 181.4 $ 183.8 $ 245.2
Cash deposited with
unconsolidated subsidiaries
Cash and cash equivalents 181.4 183.8 245.2
Marketable securities 115.5 110.1 870.8
Receivables from
unconsolidated subsidiaries
and affiliates 29.1 4.8 6.7
Trade accounts and notes
receivables - net
Financing receivables - net 6,909.3 6,624.2 6,613.2
Other receivables 135.3 144.5 477.1
Equipment on operating
leases - net 1,750.9 1,652.2 1,256.5
Inventories
Property and equipment - net 45.1 43.5 48.6
Investments in unconsolidated
subsidiaries and affiliates 11.1 9.9 20.9
Intangible assets - net .3 .3 7.2
Prepaid pension costs
Other assets 95.2 89.8 29.6
Deferred income taxes 5.6 5.2 21.0
Deferred charges 6.6 7.2 30.9
Total $9,285.4 $8,875.5 $9,627.7
Liabilities and Stockholders'
Equity
Short-term borrowings $4,559.1 $3,846.0 $3,795.0
Payables to unconsolidated
subsidiaries and affiliates 260.2 358.1 278.5
Accounts payable and
accrued expenses 620.9 540.8 885.6
Insurance and health care
claims and reserves 60.7 55.4 402.9
Accrued taxes 14.3 6.8 5.4
Deferred income taxes 54.4 55.8 12.8
Long-term borrowings 2,416.3 2,770.1 2,674.6
Retirement benefit accruals
and other liabilities 22.7 21.3 32.1
Total liabilities 8,008.6 7,654.3 8,086.9
Stockholders' equity 1,276.8 1,221.2 1,540.8
Total $9,285.4 $8,875.5 $9,627.7
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DEERE & COMPANY CONSOLIDATED
CONDENSED STATEMENT OF (Deere & Company and
CONSOLIDATED CASH FLOWS Consolidated Subsidiaries)
- --------------------------------------------------------------
Three Months Ended
January 31
Millions of dollars (Unaudited) 2000 1999
Cash Flows from Operating Activities
Net income $ 37.7 $ 49.7
Adjustments to reconcile net income
to net cash provided by (used for)
operating activities (454.3) (446.8)
Net cash provided by (used for)
operating activities (416.6) (397.1)
Cash Flows from Investing Activities
Collections of financing
receivables 1,794.8 1,598.4
Proceeds from sales of financing
receivables 71.3 102.1
Proceeds from maturities and sales
of marketable securities 215.5 37.3
Proceeds from sales of equipment on
operating leases 61.7 38.1
Cost of financing receivables
acquired (2,007.8) (2,042.2)
Purchases of marketable securities (19.4) (33.8)
Purchases of property and
equipment (37.3) (54.9)
Cost of operating leases acquired (209.5) (125.2)
Acquisitions of businesses, net
of cash acquired (14.9)
Other 69.1 71.8
Net cash provided by (used for)
investing activities (76.5) (408.4)
Cash Flows from Financing Activities
Increase (decrease) in short-term
borrowings 733.2 541.7
Change in intercompany
receivables/payables
Proceeds from long-term borrowings 162.7 675.0
Principal payments on long-term
borrowings (353.5) (297.5)
Proceeds from issuance of
common stock 4.5 .4
Repurchases of common stock (46.1)
Dividends paid (51.4) (51.7)
Other
Net cash provided by
financing activities 495.5 821.8
Effect of Exchange Rate
Changes on Cash (.4) (.5)
Net Increase (Decrease) in Cash
and Cash Equivalents 2.0 15.8
Cash and Cash Equivalents at
Beginning of Period 295.5 309.7
Cash and Cash Equivalents at
End of Period $ 297.5 $ 325.5
See Notes to Interim Financial Statements. Supplemental
consolidating data are shown for the "Equipment Operations" and
"Financial Services". Transactions between the "Equipment
Operations" and "Financial Services" have been eliminated to
arrive at the "Consolidated" data.
<PAGE>
DEERE & COMPANY EQUIPMENT OPERATIONS
CONDENSED STATEMENT OF (Deere & Company with
CONSOLIDATED CASH FLOWS Financial Services on the
Equity Basis)
- -------------------------------------------------------------
Three Months Ended
January 31
Millions of dollars (Unaudited) 2000 1999
Cash Flows from Operating Activities
Net income $ 37.7 $ 49.7
Adjustments to reconcile net income
to net cash provided by (used for)
operating activities (601.8) (566.4)
Net cash provided by (used for)
operating activities (564.1) (516.7)
Cash Flows from Investing Activities
Collections of financing
receivables 30.0 7.5
Proceeds from sales of financing
receivables
Proceeds from maturities and sales
of marketable securities 202.8
Proceeds from sales of equipment on
operating leases .1
Cost of financing receivables
acquired (.3) (9.0)
Purchases of marketable securities
Purchases of property and
equipment (34.7) (50.9)
Cost of operating leases acquired (.3)
Acquisitions of businesses, net
of cash acquired (13.8)
Other 1.8 3.5
Net cash provided by (used for)
investing activities 185.6 (48.9)
Cash Flows from Financing Activities
Increase (decrease) in short-term
borrowings 276.6 561.2
Change in intercompany
receivables/payables 36.4 17.6
Proceeds from long-term borrowings 50.0
Principal payments on long-term
borrowings
Proceeds from issuance of
common stock 4.5 .4
Repurchases of common stock (46.1)
Dividends paid (51.4) (51.7)
Other (.1)
Net cash provided by
financing activities 266.1 531.3
Effect of Exchange Rate
Changes on Cash (.6) (.5)
Net Increase (Decrease) in Cash
and Cash Equivalents (113.0) (34.8)
Cash and Cash Equivalents at
Beginning of Period 229.1 207.9
Cash and Cash Equivalents at
End of Period $116.1 $173.1
<PAGE>
DEERE & COMPANY FINANCIAL SERVICES
CONDENSED STATEMENT OF
CONSOLIDATED CASH FLOWS
- --------------------------------------------------------
Three Months Ended
January 31
Millions of dollars (Unaudited) 2000 1999
Cash Flows from Operating Activities
Net income $ 44.4 $ 43.4
Adjustments to reconcile net income
to net cash provided by (used for)
operating activities 108.1 81.2
Net cash provided by (used for)
operating activities 152.5 124.6
Cash Flows from Investing Activities
Collections of financing
receivables 1,764.8 1,590.8
Proceeds from sales of financing
receivables 71.3 102.2
Proceeds from maturities and sales
of marketable securities 12.7 37.3
Proceeds from sales of equipment on
operating leases 61.6 38.1
Cost of financing receivables
acquired (2,007.4) (2,033.2)
Purchases of marketable securities (19.4) (33.8)
Purchases of property and
equipment (2.6) (4.0)
Cost of operating leases acquired (209.2) (125.2)
Acquisitions of businesses, net
of cash acquired (1.1)
Other 67.2 68.3
Net cash provided by (used for)
investing activities (262.1) (359.5)
Cash Flows from Financing Activities
Increase (decrease) in short-term
borrowings 456.6 (19.5)
Change in intercompany
receivables/payables (153.8) (64.4)
Proceeds from long-term borrowings 162.7 625.0
Principal payments on long-term
borrowings (353.5) (297.5)
Proceeds from issuance of
common stock
Repurchases of common stock
Dividends paid (5.0) (5.0)
Other
Net cash provided by
financing activities 107.0 238.6
Effect of Exchange Rate
Changes on Cash .2
Net Increase (Decrease) in Cash
and Cash Equivalents (2.4) 3.7
Cash and Cash Equivalents at
Beginning of Period 183.8 241.5
Cash and Cash Equivalents at End
of Period $181.4 $245.2
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<PAGE>
Notes to Interim Financial Statements
(1) The "Consolidated" (Deere & Company and Consolidated
Subsidiaries) data in each of the financial statements represent
the consolidation of all Deere & Company's subsidiaries. In the
supplemental consolidating data in each of the financial
statements, "Equipment Operations" (Deere & Company with
Financial Services on the Equity Basis) include the Company's
agricultural equipment, construction equipment, commercial and
consumer equipment and special technologies operations, with
Financial Services reflected on the equity basis. Data relating
to the above equipment operations, including the consolidated
group data in the income statement, are also referred to as
"Equipment Operations" in this report. The supplemental
"Financial Services" consolidating data in each of the financial
statements include Deere & Company's credit, insurance and health
care operations. The insurance operations were sold during the
fourth quarter of 1999.
(2) Dividends declared and paid on a per share basis were as
follows:
Three Months Ended January 31
2000 1999
---- ----
Dividends declared $.22 $.22
Dividends paid $.22 $.22
(3) The calculation of net income per share is based on the
average number of shares outstanding during the three months
ended January 31, 2000 and 1999 of 233.9 million and 231.7
million, respectively. The calculation of diluted net income per
share recognizes primarily the dilutive effect of the assumed
exercise of stock options.
(4) Comprehensive income, which includes all changes in the
Company's equity during the period except transactions with
stockholders, was as follows in millions of dollars:
Three Months Ended January 31
2000 1999
---- ----
Net income $37.7 $49.7
Other comprehensive income (loss):
Change in cumulative
translation adjustment 5.4 (9.1)
Unrealized gain (loss) on
marketable securities (4.9) 4.5
----- -----
Comprehensive income $38.2 $45.1
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