EXHIBIT 12
DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Nine Months
Ended
July 31
2000 1999
(In thousands of dollars)
Earnings:
Income of consolidated group
before income taxes
and changes in accounting $ 682,374 $431,911
Dividends received from less-
than-fifty percent owned
affiliates 3,065 5,734
Fixed charges excluding
capitalized interest 500,366 425,163
Total earnings $1,185,805 $862,808
Fixed charges:
Interest expense of con-
solidated group including
capitalized interest $ 489,093 $416,963
Portion of rental charges
deemed to be interest 11,510 9,338
Total fixed charges $500,603 $426,301
Ratio of earnings to
fixed charges* 2.37 2.02
The computation of the ratio of earnings to fixed charges is
based on applicable amounts of the Company and its
consolidated subsidiaries plus dividends received from less-
than-fifty percent owned affiliates. "Earnings" consist of
income before income taxes, the cumulative effect of changes
in accounting and fixed charges excluding capitalized
interest. "Fixed charges" consist of interest on indebtedness,
amortization of debt discount and expense, an estimated amount
of rental expense which is deemed to be representative of the
interest factor, and capitalized interest.
* The Company has not issued preferred stock. Therefore, the
ratios of earnings to combined fixed charges and preferred
stock dividends are the same as the ratios presented above.
EXHIBIT 12
DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended
October 31
1999 1998 1997
(In thousands of dollars)
Earnings:
Income of consolidated group
before income taxes
and changes in accounting $365,135 $1,560,032 $1,507,070
Dividends received from less-
than-fifty percent owned
affiliates 5,734 5,555 3,591
Fixed charges excluding
capitalized interest 571,949 531,817 433,673
Total earnings $942,818 $2,097,404 $1,944,334
Fixed charges:
Interest expense of con-
solidated group including
capitalized interest $557,740 $ 521,418 $ 422,588
Portion of rental charges
deemed to be interest 15,347 12,451 11,497
Total fixed charges $573,087 $ 533,869 $ 434,085
Ratio of earnings to
fixed charges* 1.65 3.93 4.48
EXHIBIT 12
DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended
October 31
1996 1995
(In thousands of dollars)
Earnings:
Income of consolidated group
before income taxes
and changes in accounting $1,286,634 $1,092,751
Dividends received from less-
than-fifty percent owned
affiliates 7,937 2,023
Fixed charges excluding
capitalized interest 410,764 399,056
Total earnings $1,705,335 $1,493,830
Fixed charges:
Interest expense of con-
solidated group including
capitalized interest $ 402,168 $ 392,408
Portion of rental charges
deemed to be interest 8,596 6,661
Total fixed charges $ 410,764 $ 399,069
Ratio of earnings to
fixed charges* 4.15 3.74
