Deere & Company (DE) 10-K 17 Dec 09 2009 FY Annual report Financial data

STATEMENT OF CONSOLIDATED INCOM

STATEMENT OF CONSOLIDATED INCOME (USD $)
In Millions, except Per Share data	12 Months Ended Oct. 31, 2009	12 Months Ended Oct. 31, 2008	12 Months Ended Oct. 31, 2007
Net Sales and Revenues
Net sales	20756.1	25803.5	21489.1
Finance and interest income	1842.1	2068.4	2054.8
Other income	514.2	565.7	538.3
Total	23112.4	28437.6	24082.2
Costs and Expenses
Cost of sales	16255.2	19574.8	16252.8
Research and development expenses	977	943.1	816.8
Selling, administrative and general expenses	2780.6	2960.2	2620.8
Interest expense	1042.4	1,137	1151.2
Other operating expenses	717.4	698.7	565.1
Total	21772.6	25313.8	21406.7
Income of Consolidated Group before Income Taxes	1339.8	3123.8	2675.5
Provision for income taxes	460	1111.2	883
Income of Consolidated Group	879.8	2012.6	1792.5
Equity in income (loss) of unconsolidated affiliates	-6.3	40.2	29.2
Net Income	873.5	2052.8	1821.7
Per Share Data
Net Income - basic (in dollars per share)	2.07	4.76	4.05
Net Income - diluted (in dollars per share)	2.06	4.7	$4
Dividends declared (in dollars per share)	1.12	1.06	0.91
Average Shares Outstanding
Basic (in millions of shares)	422.8	431.1	449.3
Diluted (in millions of shares)	424.4	436.3	455

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET (USD $)
In Millions	Oct. 31, 2009	Oct. 31, 2008
ASSETS
Cash and cash equivalents	4651.7	2211.4
Marketable securities	192	977.4
Receivables from unconsolidated affiliates	38.4	44.7
Trade accounts and notes receivable - net	2616.9	3234.6
Financing receivables - net	15254.7	16,017
Restricted financing receivables - net	3108.4	1644.8
Other receivables	864.5	664.9
Equipment on operating leases - net	1733.3	1638.6
Inventories	2397.3	3041.8
Property and equipment - net	4532.2	4127.7
Investments in unconsolidated affiliates	212.8	224.4
Goodwill	1036.5	1224.6
Other intangible assets - net	136.3	161.4
Retirement benefits	94.4	1,106
Deferred income taxes	2804.8	1440.6
Other assets	1458.4	974.7
Total Assets	41132.6	38734.6
LIABILITIES
Short-term borrowings	7158.9	8520.5
Payables to unconsolidated affiliates	55	169.2
Accounts payable and accrued expenses	5371.4	6393.6
Deferred income taxes	167.3	171.8
Long-term borrowings	17391.7	13898.5
Retirement benefits and other liabilities	6169.6	3048.3
Total liabilities	36313.9	32201.9
STOCKHOLDERS' EQUITY
Common stock, $1 par value (authorized - 1,200,000,000 shares; issued - 536,431,204 shares in 2009 and 2008), at paid-in amount	2996.2	2,934
Common stock in treasury, 113,188,823 shares in 2009 and 114,134,933 shares in 2008, at cost	-5564.7	-5594.6
Retained earnings	10980.5	10580.6
Accumulated other comprehensive income (loss):
Retirement benefits adjustment	(3,955)	-1418.4
Cumulative translation adjustment	400.2	73.4
Unrealized loss on derivatives	-44.1	-40.1
Unrealized gain (loss) on investments	5.6	-2.2
Accumulated other comprehensive income (loss)	-3593.3	-1387.3
Total stockholders' equity	4818.7	6532.7
Total Liabilities and Stockholders' Equity	41132.6	38734.6

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $)
	Oct. 31, 2009	Oct. 31, 2008
CONSOLIDATED BALANCE SHEET
Common stock, par value (in dollars per share)	$1	$1
Common stock, authorized shares	1,200,000,000	1,200,000,000
Common stock, issued shares	536,431,204	536,431,204
Common stock in treasury, shares	113,188,823	114,134,933

STATEMENT OF CONSOLIDATED CASH

STATEMENT OF CONSOLIDATED CASH FLOWS (USD $)
In Millions	12 Months Ended Oct. 31, 2009	12 Months Ended Oct. 31, 2008	12 Months Ended Oct. 31, 2007
Cash Flows from Operating Activities
Net income	873.5	2052.8	1821.7
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful receivables	231.8	95.4	71
Provision for depreciation and amortization	873.3	831	744.4
Goodwill impairment charge	289.2
Share-based compensation expense	70.5	70.6	82
Undistributed earnings of unconsolidated affiliates	7	-18.7	-17.1
Provision (credit) for deferred income taxes	171.6	89.7	-4.2
Changes in assets and liabilities:
Trade, notes and financing receivables related to sales	481.8	-428.4	131.1
Inventories	452.5	-1195.4	-357.2
Accounts payable and accrued expenses	-1168.3	702.1	418.6
Accrued income taxes payable/receivable	-234.2	92.8	10.5
Retirement benefits	-27.9	-133.2	-163.2
Other	(36)	-209.7	21.8
Net cash provided by operating activities	1984.8	1,949	2759.4
Cash Flows from Investing Activities
Collections of receivables	11,252	12608.8	10335.3
Proceeds from sales of financing receivables	12.2	45.2	141.4
Proceeds from maturities and sales of marketable securities	825.1	1738.5	2458.5
Proceeds from sales of equipment on operating leases	477.3	465.7	355.2
Proceeds from sales of businesses, net of cash sold		42	77.2
Cost of receivables acquired	-11234.2	-13304.4	-11388.3
Purchases of marketable securities	-29.5	-1141.4	-2251.6
Purchases of property and equipment	-906.7	-1112.3	-1022.5
Cost of equipment on operating leases acquired	-401.4	-495.9	-461.7
Acquisitions of businesses, net of cash acquired	-49.8	-252.3	-189.3
Other	(2)	-19.9	12.5
Net cash used for investing activities	(57)	(1,426)	-1933.3
Cash Flows from Financing Activities
Increase (decrease) in short-term borrowings	-1384.8	(413)	99.4
Proceeds from long-term borrowings	6282.8	6320.2	4283.9
Payments of long-term borrowings	-3830.3	-4585.4	-3136.5
Proceeds from issuance of common stock	16.5	108.9	285.7
Repurchases of common stock	-3.2	-1677.6	-1517.8
Dividends paid	-473.4	-448.1	-386.7
Excess tax benefits from share-based compensation	4.6	72.5	102.2
Other	-141.9	(26)	-11.2
Net cash provided by (used for) financing activities	470.3	-648.5	(281)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	42.2	58.3	46
Net Increase (Decrease) in Cash and Cash Equivalents	2440.3	-67.2	591.1
Cash and Cash Equivalents at Beginning of Year	2211.4	2278.6	1687.5
Cash and Cash Equivalents at End of Year	4651.7	2211.4	2278.6

STATEMENT OF CHANGES IN CONSOLI

STATEMENT OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY (USD $)
In Millions	Common Stock	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Oct. 31, 2006	2203.5	-2673.4	7886.8	74.3	7491.2
Comprehensive income
Net income			1821.7		1821.7
Other comprehensive income (loss)
Minimum pension liability adjustment				65.8	65.8
Cumulative translation adjustment				329.1	329.1
Unrealized loss on derivatives				-14.4	-14.4
Unrealized gain (loss) on investments				(1)	(1)
Total comprehensive income					2201.2
Repurchases of common stock		-1517.8			-1517.8
Treasury shares reissued		175.8			175.8
Dividends declared			-408.4		-408.4
Stock options and other	305.3		-0.2		305.1
Adjustment to adopt FASB ASC 715 (FASB Statement No. 158), net of tax				-1091.3	-1091.3
Transfer for two-for-one stock split effective November 26, 2007	268.2		-268.2
Balance at Oct. 31, 2007	2,777	-4015.4	9031.7	-637.5	7155.8
Comprehensive income
Net income			2052.8		2052.8
Other comprehensive income (loss)
Retirement benefits adjustment				-305.3	-305.3
Cumulative translation adjustment				(406)	(406)
Unrealized loss on derivatives				-32.5	-32.5
Unrealized gain (loss) on investments				(6)	(6)
Total comprehensive income					1,303
Adjustment to adopt FASB ASC 740 (FASB Interpretation No. 48)			(48)		(48)
Repurchases of common stock		-1677.6			-1677.6
Treasury shares reissued		98.4			98.4
Dividends declared			-455.9		-455.9
Stock options and other	157				157
Balance at Oct. 31, 2008	2,934	-5594.6	10580.6	-1387.3	6532.7
Comprehensive income
Net income			873.5		873.5
Other comprehensive income (loss)
Retirement benefits adjustment				-2536.6	-2536.6
Cumulative translation adjustment				326.8	326.8
Unrealized loss on derivatives				(4)	(4)
Unrealized gain (loss) on investments				7.8	7.8
Total comprehensive income					-1332.5
Repurchases of common stock		-3.2			-3.2
Treasury shares reissued		33.1			33.1
Dividends declared			-473.6		-473.6
Stock options and other	62.2				62.2
Balance at Oct. 31, 2009	2996.2	-5564.7	10980.5	-3593.3	4818.7

ORGANIZATION AND CONSOLIDATION

ORGANIZATION AND CONSOLIDATION
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ORGANIZATION AND CONSOLIDATION	1. ORGANIZATION AND CONSOLIDATION Structure of Operations Certain information in the notes and related commentary are presented in a format which includes data grouped as follows: Equipment Operations Includes the companys agriculture and turf operations and construction and forestry operations with Financial Services reflected on the equity basis. Financial Services Includes the companys credit and certain miscellaneous service operations. Consolidated Represents the consolidation of the Equipment Operations and Financial Services. References to Deere Company or the company refer to the entire enterprise. Principles of Consolidation The consolidated financial statements represent primarily the consolidation of all companies in which Deere Company has a controlling interest. Certain variable interest entities (VIEs) are consolidated since the company is the primary beneficiary. Deere Company records its investment in each unconsolidated affiliated company (generally 20 to 50 percent ownership) at its related equity in the net assets of such affiliate (see Note 10). Other investments (less than 20 percent ownership) are recorded at cost. Variable Interest Entities The company is the primary beneficiary of and consolidates a supplier that is a VIE. The company would absorb more than a majority of the VIEs expected losses based on a cost sharing supply contract. No additional support beyond what was previously contractually required has been provided during 2009. The VIE produces blended fertilizer and other lawn care products for the agriculture and turf segment. The assets of the VIE that were consolidated at October31, 2009, less the intercompany receivables of $32 million eliminated in consolidation, totaled $44 million and consisted of $36 million of inventory, $5 million of property and equipment and $3 million of other assets. The liabilities of the VIE totaled $82 million and consisted of $59 million of accounts payable and accrued expenses and $23 million of short-term borrowings. The VIE is financed through its own accounts payable and short-term borrowings. The assets of the VIE can only be used to settle the obligations of the VIE. The creditors of the VIE do not have recourse to the general credit of the company. The company is the primary beneficiary of and consolidates certain wind energy entities that are VIEs, which invest in wind farms that own and operate turbines to generate electrical energy. Although the company owns less than a majority of the equity voting rights, it owns most of the financial rights that would absorb the VIEs expected losses or returns. No additional support to the VIEs beyond what was previously contractually required has been provided during 2009. The assets of the VIEs that were consolidated at October31, 2009 totaled $174 million and consisted of $32 million of receivables, $141 million of property and equipment and $1 million of other assets. The liabilities of the VIEs, less the intercompany borrowings of $55 million eliminated in consolidation, totaled $6 million and consisted primarily of accounts payable and accrued expenses. The VIEs are financed

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following are significant accounting policies in addition to those included in other notes to the consolidated financial statements. Use of Estimates in Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates. Revenue Recognition Sales of equipment and service parts are recorded when the sales price is determinable and the risks and rewards of ownership are transferred to independent parties based on the sales agreements in effect. In the U.S. and most international locations, this transfer occurs primarily when goods are shipped. In Canada and some other international locations, certain goods are shipped to dealers on a consignment basis under which the risks and rewards of ownership are not transferred to the dealer. Accordingly, in these locations, sales are not recorded until a retail customer has purchased the goods. In all cases, when a sale is recorded by the company, no significant uncertainty exists surrounding the purchasers obligation to pay. No right of return exists on sales of equipment. Service parts returns are estimable and accrued at the time a sale is recognized. The company makes appropriate provisions based on experience for costs such as doubtful receivables, sales incentives and product warranty. Financing revenue is recorded over the lives of related receivables using the interest method. Deferred costs on the origination of financing receivables are recognized as a reduction in finance revenue over the expected lives of the receivables using the interest method. Income and deferred costs on the origination of operating leases are recognized on a straight-line basis over the scheduled lease terms in finance revenue. Sales Incentives At the time a sale is recognized, the company records an estimate of the future sales incentive costs for allowances and financing programs that will be due when a dealer sells the equipment to a retail customer. The estimate is based on historical data, announced incentive programs, field inventory levels and settlement volumes. Product Warranties At the time a sale is recognized, the company records the estimated future warranty costs. These costs are usually estimated based on historical warranty claims (see Note 22). Sales Taxes The company collects and remits taxes assessed by different governmental authorities that are both imposed on and concurrent with revenue producing transactions between the company and its customers. These taxes may include sales, use, value-added and some excise taxes. The company reports the collection of these taxes on a net basis (excluded from revenues). Securitization of Receivables Certain financing receivables are periodically transferred to special purpose entities (SPEs) in securitization transactions (see Note 13). These securitizations qualify as collateral for secured borrowings and no gains or losses are r

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NEW ACCOUNTING STANDARDS	3. NEW ACCOUNTING STANDARDS New Accounting Standards Adopted In 2009, the company adopted Accounting Standards Update (ASU) No.2009-01, Statement of Financial Accounting Standards No.168 The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) and the Hierarchy of Generally Accepted Accounting Principles (GAAP). This ASU includes FASB Statement No.168 in its entirety. The ASU establishes the FASB ASC as the source of authoritative accounting principles recognized by the FASB. Rulesand interpretive releases of the SEC under federal securities laws are also sources of authoritative GAAP for SEC registrants. All guidance contained in the ASC carries an equal level of authority. Following this ASU, the FASB will issue only ASUs to update the ASC. The adoption did not have a material effect on the companys consolidated financial statements. The following standards were also adopted in 2009 and they also did not have a material effect on the companys consolidated financial statements. In the first quarter of 2009, the company adopted FASB ASC 820, Fair Value Measurements and Disclosures (FASB Statement No.157, Fair Value Measurements), for financial assets and liabilities recognized or disclosed at fair value (see Note 26). ASC 820 defines fair value and expands disclosures about fair value measurements. These definitions apply to other accounting standards that use fair value measurements and may change the application of certain measurements used in current practice. For nonfinancial assets and liabilities, the effective date is the beginning of fiscal year 2010, except items that are recognized or disclosed at fair value on a recurring basis. The adoption for these assets and liabilities will not have a material effect on the companys consolidated financial statements. In the first quarter of 2009, the company adopted FASB ASC 825, Financial Instruments (FASB Statement No.159, The Fair Value Option for Financial Assets and Financial Liabilities). ASC 825 permits entities to measure most financial instruments at fair value if desired. It may be applied on a contract by contract basis and is irrevocable once applied to those contracts. The new standard may be applied at the time of adoption for existing eligible items, or at initial recognition of eligible items. After election of this option, changes in fair value are reported in earnings. The items measured at fair value must be shown separately on the balance sheet. The company did not change the valuation of any financial instruments at adoption based on this standard. The cumulative effect of adoption would have been reported as an adjustment to beginning retained earnings. In the first quarter of 2009, the company adopted FASB ASC 815, Derivatives and Hedging (FASB Statement No.161, Disclosures about Derivative Instruments and Hedging Activities). ASC 815 increases the disclosure requirements for derivative instruments (see Note 27). Most disclosures are required on an interim and annual basis. In the first quarter of 2009, the company adopted FASB ASC 860, Transfers and Servicing (FASB Staff Position (FSP) Financial Accounting

ACQUISITIONS

ACQUISITIONS
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ACQUISITIONS	4. ACQUISITIONS In November2008, the company acquired the remaining 50 percent ownership interest in ReGen Technologies, LLC, a remanufacturing company located in Springfield, Missouri, for $42 million. The values assigned to the assets and liabilities related to the 50 percent acquisition were $14 million of inventories, $31 million of goodwill, $6 million of other assets, $3 million of accounts payable and accrued expenses and $6 million of long-term borrowings. The goodwill generated in the transaction was the result of future cash flows and related fair values of the additional acquisition exceeding the fair value of the identifiable assets and liabilities. The goodwill is expected to be deductible for tax purposes. The entity was consolidated and the results of these operations have been included in the companys consolidated financial statements since the date of the acquisition. The acquisition was allocated between the companys agriculture and turf segment and the construction and forestry segment. The pro forma results of operations as if the acquisition had occurred at the beginning of the fiscal year would not differ significantly from the reported results.

SPECIAL ITEMS

SPECIAL ITEMS
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SPECIAL ITEMS	5. SPECIAL ITEMS Restructuring In September2008, the company announced it would close its manufacturing facility in Welland, Ontario, Canada, and transfer production to company operations in Horicon, Wisconsin, U.S., and Monterrey and Saltillo, Mexico. The Welland factory manufactured utility vehicles and attachments for the agriculture and turf business. The move supports ongoing efforts aimed at improved efficiency and profitability. The factory discontinued manufacturing in the fourth quarter of 2009. The closure is expected to result in total expenses recognized in cost of sales in millions of dollars as follows: 2008 2009 2010 Total Pension and other postretirement benefits $ 10 $ 27 $ 8 $ 45 Property and equipment impairments 21 3 24 Employee termination benefits 18 7 25 Other expenses 11 11 Total $ 49 $ 48 $ 8 $ 105 All expenses are included in the agriculture and turf segment. The total pretax cash expenditures associated with this closure will be approximately $52 million. The annual pretax increase in earnings and cash flows in the future due to this restructuring is expected to be approximately $40 million in 2010. Property and equipment impairment values are based primarily on market appraisals. The remaining liability for employee termination benefits at October31, 2009 was $14 million, which included accrued benefit expenses to date of $25 million and an increase due to foreign currency translation of $2 million, which were partially offset by $13 million of benefits paid during 2009. Voluntary Employee Separations In April2009, the company announced it was combining the agricultural equipment segment with the commercial and consumer equipment segment into the agriculture and turf segment effective at the beginning of the third quarter of 2009 (see Note 28). By combining these segments, the company expects to achieve greater alignment and efficiency to meet worldwide customer needs while reducing overall costs. The company further expects the combination will extend the reach of turf management equipment, utility vehicles and lower horsepower equipment through the improved access to established global markets. Voluntary employee separations related to the new organizational structure resulted in pretax expenses of $91 million in 2009. The expenses were approximately 60 percent cost of sales and 40 percent selling, administrative and general expenses. Annual savings from the separation program are expected to be approximately $50 million to $60 million in 2010. Goodwill Impairment In the fourth quarter of 2009, the company recorded a non-cash charge in cost of sales for the impairment of goodwill of $289 million pretax, or $274 million after-tax. The charge was associated with the companys John Deere Landscapes reporting unit, which is included in the agriculture and turf operating segment. The key factor contributing to the goodwill impairment was a decline in the reporting units forecasted financial performance as a result of weak econo

CASH FLOW INFORMATION

CASH FLOW INFORMATION
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CASH FLOW INFORMATION	6. CASH FLOW INFORMATION For purposes of the statement of consolidated cash flows, the company considers investments with purchased maturities of three months or less to be cash equivalents. Substantially all of the companys short-term borrowings, excluding the current maturities of long-term borrowings, mature or may require payment within three months or less. The Equipment Operations sell a significant portion of their trade receivables to Financial Services. These intercompany cash flows are eliminated in the consolidated cash flows. All cash flows from the changes in trade accounts and notes receivable (see Note 12) are classified as operating activities in the Statement of Consolidated Cash Flows as these receivables arise from sales to the companys customers. Cash flows from financing receivables that are related to sales to the companys customers (see Note 12) are also included in operating activities. The remaining financing receivables are related to the financing of equipment sold by independent dealers and are included in investing activities. The company had the following non-cash operating and investing activities that were not included in the Statement of Consolidated Cash Flows. The company transferred inventory to equipment on operating leases of $320 million, $307 million and $269 million in 2009, 2008 and 2007, respectively. The company had accounts payable related to purchases of property and equipment of $81 million, $158 million and $100 million at October31, 2009, 2008 and 2007, respectively. Cash payments (receipts) for interest and income taxes consisted of the following in millions of dollars: 2009 2008 2007 Interest: Equipment Operations $ 388 $ 414 $ 423 Financial Services 878 1,001 1,005 Intercompany eliminations (273 ) (288 ) (294 ) Consolidated $ 993 $ 1,127 $ 1,134 Income taxes: Equipment Operations $ 170 $ 667 $ 601 Financial Services (73 ) 95 196 Intercompany eliminations 109 (50 ) (157 ) Consolidated $ 206 $ 712 $ 640

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENSION AND OTHER POSTRETIREMENT BENEFITS	7. PENSION AND OTHER POSTRETIREMENT BENEFITS The company has several defined benefit pension plans covering its U.S. employees and employees in certain foreign countries. The company has several postretirement health care and life insurance plans for retired employees in the U.S. and Canada. The company uses an October31 measurement date for these plans. On October31, 2007, the company adopted FASB ASC 715, Compensation-Retirement Benefits (FASB Statement No.158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plans). ASC 715 requires retirement benefit liabilities or benefit assets on the balance sheet to be adjusted to the difference between the benefit obligations and the plan assets at fair value. The offset to the adjustment is recorded directly in stockholders equity net of tax. The amount recorded in stockholders equity represents the after-tax unamortized actuarial gains or losses and unamortized prior service cost (credit). ASC 715 also requires all benefit obligations and plan assets to be measured at fiscal year end, which the company presently does. Prospective application of the new accounting was required. The components of net periodic pension cost and the assumptions related to the cost consisted of the following in millions of dollars and in percents: 2009 2008 2007 Pensions Service cost $ 124 $ 159 $ 168 Interest cost 563 514 488 Expected return on plan assets (739 ) (743 ) (682 ) Amortization of actuarial loss 1 48 94 Amortization of prior service cost 25 26 27 Early-retirement benefits 4 10 Settlements/curtailments 27 3 4 Net cost $ 5 $ 17 $ 99 Weighted-average assumptions Discount rates 8.1 % 6.2 % 5.7 % Rate of compensation increase 3.9 % 3.9 % 3.8 % Expected long-term rates of return 8.3 % 8.3 % 8.4 % The components of net periodic postretirement benefits cost and the assumptions related to the cost consisted of the following in millions of dollars and in percents: 2009 2008 2007 Health care and life insurance Service cost $ 28 $ 49 $ 69 Interest cost 344 323 321 Expected return on plan assets (118 ) (177 ) (156 ) Amortization of actuarial loss 65 82 215 Amortization of prior service credit (12 ) (17 ) (133 ) Early-retirement benefits 1 Settlements/curtailments (1 ) Net cost $ 307 $ 260 $ 316 Weighted-average assumptions Discount rates 8.2 % 6.4 % 5.9 % Expected long-term rates of return 7.8 % 7.8 % 7.8 % The above benefit plan costs in net income and other changes in plan assets and benefit obligations in other comprehensive income in millions of dollars were as follows: Pensions HealthCare andLifeInsurance

INCOME TAXES

INCOME TAXES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
INCOME TAXES	8. INCOME TAXES The provision for income taxes by taxing jurisdiction and by significant component consisted of the following in millions of dollars: 2009 2008 2007 Current: U.S.: Federal $ 3 $ 559 $ 484 State 12 60 40 Foreign 273 402 354 Total current 288 1,021 878 Deferred: U.S.: Federal 246 74 (2 ) State 10 3 8 Foreign (84 ) 13 (1 ) Total deferred 172 90 5 Provision for income taxes $ 460 $ 1,111 $ 883 Based upon location of the companys operations, the consolidated income before income taxes in the U.S. in 2009, 2008 and 2007 was $756 million, $1,730 million and $1,601 million, respectively, and in foreign countries was $584 million, $1,394 million and $1,075 million, respectively. Certain foreign operations are branches of Deere Company and are, therefore, subject to U.S., as well as foreign income tax regulations. The pretax income by location and the preceding analysis of the income tax provision by taxing jurisdiction are, therefore, not directly related. A comparison of the statutory and effective income tax provision and reasons for related differences in millions of dollars follow: 2009 2008 2007 U.S. federal income tax provision at a statutory rate of 35 percent $ 469 $ 1,093 $ 936 Increase (decrease) resulting from: Nondeductible goodwill impairment charge 86 State and local income taxes, net of federal income tax benefit 14 41 32 Wind energy production tax credits (26 ) (14 ) (4 ) Research and development tax credits (25 ) (18 ) (11 ) Taxes on foreign activities (10 ) 21 (24 ) Nondeductible costs and other-net (48 ) (12 ) (46 ) Provision for income taxes $ 460 $ 1,111 $ 883 At October31, 2009, accumulated earnings in certain subsidiaries outside the U.S. totaled $1,348 million for which no provision for U.S. income taxes or foreign withholding taxes has been made, because it is expected that such earnings will be reinvested overseas indefinitely. Determination of the amount of unrecognized deferred tax liability on these unremitted earnings is not practical. Deferred income taxes arise because there are certain items that are treated differently for financial accounting than for income tax reporting purposes. An analysis of the deferred income tax assets and liabilities at October31 in millions of dollars follows: 2009 2008 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities Other postretirement benefit liabilities $ 1,860 $ 1,054 Pension liabilities - net 335 Pension assets - net $ 361 Accrual for sales allowances 324 361 Tax over book depreciation $ 437 266 Tax loss and tax credit carryforwards 20

OTHER INCOME AND OTHER OPERATIN

OTHER INCOME AND OTHER OPERATING EXPENSES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
OTHER INCOME AND OTHER OPERATING EXPENSES	9. OTHER INCOME AND OTHER OPERATING EXPENSES The major components of other income and other operating expenses consisted of the following in millions of dollars: 2009 2008 2007 Other income Revenues from services $ 418 $ 421 $ 314 Investment income 9 21 83 Securitization and servicing fee income 3 6 23 Other 84 118 118 Total $ 514 $ 566 $ 538 Other operating expenses Depreciation of equipment on operating leases $ 288 $ 308 $ 297 Cost of services 357 295 248 Other 72 96 20 Total $ 717 $ 699 $ 565

UNCONSOLIDATED AFFILIATED COMPA

UNCONSOLIDATED AFFILIATED COMPANIES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
UNCONSOLIDATED AFFILIATED COMPANIES	10. UNCONSOLIDATED AFFILIATED COMPANIES Unconsolidated affiliated companies are companies in which Deere Company generally owns 20 percent to 50 percent of the outstanding voting shares. Deere Company does not control these companies and accounts for its investments in them on the equity basis. The investments in these companies primarily consist of Deere-Hitachi Construction Machinery Corporation (50 percent ownership), Xuzhou XCG John Deere Machinery Manufacturing Co., Ltd. (50 percent ownership), Bell Equipment Limited (32 percent ownership) and AI Products (36 percent ownership). The unconsolidated affiliated companies primarily manufacture or market equipment. Deere Companys share of the income or loss of these companies is reported in the consolidated income statement under Equity in income (loss) of unconsolidated affiliates. The investment in these companies is reported in the consolidated balance sheet under Investments in Unconsolidated Affiliates. Combined financial information of the unconsolidated affiliated companies in millions of dollars is as follows: Operations 2009 2008 2007 Sales $ 1,404 $ 2,214 $ 2,026 Net income (loss) (23 ) 99 79 Deere Companys equity in net income (loss) (6 ) 40 29 Financial Position 2009 2008 Total assets $ 1,157 $ 1,382 Total external borrowings 264 260 Total net assets 515 545 Deere Companys share of the net assets 213 224 Consolidated retained earnings at October31, 2009 include undistributed earnings of the unconsolidated affiliates of $81 million. Dividends from unconsolidated affiliates were $.4 million in 2009, $20 million in 2008 and $13 million in 2007.

MARKETABLE SECURITIES

MARKETABLE SECURITIES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARKETABLE SECURITIES	11. MARKETABLE SECURITIES All marketable securities are classified as available-for-sale, with unrealized gains and losses shown as a component of stockholders equity. Realized gains or losses from the sales of marketable securities are based on the specific identification method. The amortized cost and fair value of marketable securities at October31 in millions of dollars follow: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value 2009 U.S. government debt securities $ 49 $ 3 $ 52 Municipal debt securities 23 1 24 Corporate debt securities 41 2 43 Residential mortgage-backed securities* 70 3 73 Marketable securities $ 183 $ 9 $ 192 2008 U.S. government debt securities $ 402 $ 2 $ 1 $ 403 Municipal debt securities 119 1 118 Corporate debt securities 239 4 235 Residential mortgage-backed securities* 87 1 1 87 Asset-backed securities 44 44 Other debt securities 90 90 Marketable securities $ 981 $ 3 $ 7 $ 977 * Primarily issued by U.S. government sponsored enterprises. The contractual maturities of debt securities at October31, 2009 in millions of dollars follow: Amortized Fair Cost Value Due in one year or less $ 28 $ 28 Due after one through five years 79 83 Due after five through 10 years 63 67 Due after 10 years 13 14 Debt securities $ 183 $ 192 Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Proceeds from the sales of available-for-sale securities were $759 million in 2009, $1,137 million in 2008 and $1,379 million in 2007. Realized gains were $4 million, $12 million and $4 million and realized losses were $8 million, $15 million and $10 million in 2009, 2008 and 2007, respectively. The increase (decrease) in net unrealized gains or losses and unrealized losses that have been continuous for over twelve months were not material in any years presented. Unrealized losses at October31, 2008 were primarily the result of an increase in interest rates and were not recognized in income due to the ability and intent to hold to maturity. Losses related to impairment write-downs were $2 million in 2009, $27 million in 2008 and $7 million in 2007.

RECEIVABLES

RECEIVABLES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
RECEIVABLES	12. RECEIVABLES Trade Accounts and Notes Receivable Trade accounts and notes receivable at October31 consisted of the following in millions of dollars: 2009 2008 Trade accounts and notes: Agriculture and turf $ 2,363 $ 2,717 Construction and forestry 254 518 Trade accounts and notes receivablenet $ 2,617 $ 3,235 At October31, 2009 and 2008, dealer notes included in the previous table were $538 million and $499 million, and the allowance for doubtful trade receivables was $77 million and $56 million, respectively. The Equipment Operations sell a significant portion of newly originated trade receivables to Financial Services and provide compensation to these operations at market rates of interest. Trade accounts and notes receivable primarily arise from sales of goods to independent dealers. Under the terms of the sales to dealers, interest is charged to dealers on outstanding balances, from the earlier of the date when goods are sold to retail customers by the dealer or the expiration of certain interest-free periods granted at the time of the sale to the dealer, until payment is received by the company. Dealers cannot cancel purchases after the equipment is shipped and are responsible for payment even if the equipment is not sold to retail customers. The interest-free periods are determined based on the type of equipment sold and the time of year of the sale. These periods range from one to twelve months for most equipment. Interest-free periods may not be extended. Interest charged may not be forgiven and the past due interest rates exceed market rates. The company evaluates and assesses dealers on an ongoing basis as to their credit worthiness and generally retains a security interest in the goods associated with the trade receivables. The company is obligated to repurchase goods sold to a dealer upon cancellation or termination of the dealers contract for such causes as change in ownership and closeout of the business. Trade accounts and notes receivable have significant concentrations of credit risk in the agriculture and turf sector and construction and forestry sector as shown in the previous table. On a geographic basis, there is not a disproportionate concentration of credit risk in any area. Financing Receivables Financing receivables at October31 consisted of the following in millions of dollars: 2009 2008 Unrestricted/Restricted Unrestricted/Restricted Retail notes: Equipment: Agriculture and turf $ 9,687 $ 2,934 $ 11,026 $ 1,380 Construction and forestry 1,084 624 2,011 434 Recreational products 8 16 Total 10,779 3,558 13,053 1,814 Wholesale notes 1,986 1,336 Revolving charge accounts 2,265 1,905 Financing leases (direct and sales-type) 993 1,005 Operating loans 297 358 Total financing receivables 16,320 3,558 17,657 1,814 Less: Unearned finance income: Equipment notes 738 425 1,361 15

SECURITIZATION OF FINANCING REC

SECURITIZATION OF FINANCING RECEIVABLES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SECURITIZATION OF FINANCING RECEIVABLES	13. SECURITIZATION OF FINANCING RECEIVABLES The company, as a part of its overall funding strategy, periodically transfers certain financing receivables (retail notes) into variable interest entities (VIEs) that are special purpose entities (SPEs) as part of its asset-backed securities programs (securitizations). The structure of these transactions is such that the transfer of the retail notes did not meet the criteria of sales of receivables, and is, therefore, accounted for as a secured borrowing. SPEs utilized in securitizations of retail notes differ from other entities included in the companys consolidated statements because the assets they hold are legally isolated. For bankruptcy analysis purposes, the company has sold the receivables to the SPEs in a true sale and the SPEs are separate legal entities. Use of the assets held by the SPEs is restricted by terms of the documents governing the securitization transaction. In securitizations of retail notes related to secured borrowings, the retail notes are transferred to certain SPEs which in turn issue debt to investors. The resulting secured borrowings are included in short-term borrowings on the balance sheet. The securitized retail notes are recorded as Restricted financing receivables - net on the balance sheet. The total restricted assets on the balance sheet related to these securitizations include the restricted financing receivables less an allowance for credit losses, and other assets primarily representing restricted cash. The SPEs supporting the secured borrowings to which the retail notes are transferred are consolidated unless the company is not the primary beneficiary. No additional support to these SPEs beyond what was previously contractually required has been provided during fiscal year 2009. In certain securitizations, the company is the primary beneficiary of the SPEs and, as such, consolidates the entities. The restricted assets (retail notes, allowance for credit losses and other assets) of the consolidated SPEs totaled $2,157 million and $1,303 million at October31, 2009 and 2008, respectively. The liabilities (short-term borrowings and accrued interest) of these SPEs totaled $2,133 million and $1,287 million at October31, 2009 and 2008, respectively. The credit holders of these SPEs do not have legal recourse to the companys general credit. In other securitizations, the company transfers retail notes into bank-sponsored, multi-seller, commercial paper conduits, which are SPEs that are not consolidated. The company is not considered to be the primary beneficiary of these conduits, because the companys variable interests in the conduits will not absorb a majority of the conduits expected losses, residual returns, or both. This is primarily due to these interests representing significantly less than a majority of the conduits total assets and liabilities. These conduits provide a funding source to the company (as well as other transferors into the conduit) as they fund the retail notes through the issuance of commercial paper. The companys carrying values and variable interest related to these conduits were restricted assets (retail notes, allowanc

EQUIPMENT ON OPERATING LEASES

EQUIPMENT ON OPERATING LEASES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
EQUIPMENT ON OPERATING LEASES	14. EQUIPMENT ON OPERATING LEASES Operating leases arise primarily from the leasing of John Deere equipment to retail customers. Initial lease terms generally range from four to 60 months. Net equipment on operating leases totaled $1,733 million and $1,639 million at October31, 2009 and 2008, respectively. The equipment is depreciated on a straight-line basis over the terms of the lease. The accumulated depreciation on this equipment was $484 million and $471 million at October31, 2009 and 2008, respectively. The corresponding depreciation expense was $288 million in 2009, $308 million in 2008 and $297 million in 2007. Future payments to be received on operating leases totaled $800 million at October31, 2009 and are scheduled as follows in millions of dollars: 2010 $355, 2011 $222, 2012 $132, 2013 $72 and 2014 $19.

INVENTORIES

INVENTORIES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
INVENTORIES	15. INVENTORIES Most inventories owned by Deere Company and its U.S. equipment subsidiaries are valued at cost, on the last-in, first-out (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the first-in, first-out (FIFO) basis, or market. The value of gross inventories on the LIFO basis represented 59 percent and 64 percent of worldwide gross inventories at FIFO value on October31, 2009 and 2008, respectively. The pretax favorable income effect from the liquidation of LIFO inventory during 2009 was approximately $37 million. If all inventories had been valued on a FIFO basis, estimated inventories by major classification at October31 in millions of dollars would have been as follows: 2009 2008 Raw materials and supplies $ 940 $ 1,170 Work-in-process 387 519 Finished machines and parts 2,437 2,677 Total FIFO value 3,764 4,366 Less adjustment to LIFO value 1,367 1,324 Inventories $ 2,397 $ 3,042

PROPERTY AND DEPRECIATION

PROPERTY AND DEPRECIATION
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PROPERTY AND DEPRECIATION	16. PROPERTY AND DEPRECIATION A summary of property and equipment at October31 in millions of dollars follows: Useful Lives* (Years) 2009 2008 Equipment Operations Land $ 116 $ 91 Buildings and building equipment 24 2,144 1,840 Machinery and equipment 11 3,826 3,457 Dies, patterns, tools, etc. 7 1,081 933 All other 5 672 617 Construction in progress 362 386 Total at cost 8,201 7,324 Less accumulated depreciation 4,744 4,333 Total 3,457 2,991 Financial Services Land 4 4 Buildings and building equipment 27 70 40 Machinery and equipment 16 1,064 690 All other 6 40 34 Construction in progress 37 447 Total at cost 1,215 1,215 Less accumulated depreciation 140 78 Total 1,075 1,137 Property and equipment-net $ 4,532 $ 4,128 * Weighted-averages Property and equipment is stated at cost less accumulated depreciation. Total property and equipment additions in 2009, 2008 and 2007 were $798 million, $1,147 million and $1,064 million and depreciation was $513 million, $467 million and $402 million, respectively. Capitalized interest was $15 million, $26 million and $31 million in the same periods, respectively. The cost of leased property and equipment under capital leases amounting to $47 million and $30 million at October31, 2009 and 2008, respectively, is included in property and equipment. Financial Services property and equipment additions included above were $1 million, $359 million and $476 million in 2009, 2008 and 2007 and depreciation was $62 million, $34 million and $13 million, respectively. The Financial Services additions were primarily due to wind turbines related to investments in wind energy generation. Financial Services had additions to cost of property and equipment in 2009 of $71 million, which were mostly offset by cost reductions of $70 million due to becoming eligible for government grants for certain wind energy investments related to costs recognized in prior and current periods. Capitalized software is stated at cost less accumulated amortization, and the estimated useful life is three years. The amounts of total capitalized software costs, including purchased and internally developed software, classified as Other Assets at October31, 2009 and 2008 were $486 million and $425 million, less accumulated amortization of $342 million and $288 million, respectively. Amortization of these software costs was $54 million in 2009, $35 million in 2008 and $33 million in 2007. The cost of leased software assets under capital leases amounting to $33 million and $31 million at October31, 2009 and 2008, respectively, is included in other assets. The cost of compliance with foreseeable environmental requirements has been accrued and did not have a material effect on the companys consolidated financial statements.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS-NET
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
GOODWILL AND OTHER INTANGIBLE ASSETS-NET	17. GOODWILL AND OTHER INTANGIBLE ASSETS-NET The amounts of goodwill by operating segment were as follows in millions of dollars: 2009 2008 Agriculture and turf $ 409 $ 664 Construction and forestry 628 561 Goodwill $ 1,037 $ 1,225 The decrease in goodwill in the agriculture and turf segment was primarily due to an impairment write off of $289 million, partially offset by the allocation of goodwill from an acquisition of $20 million (see Note 4) and fluctuations in foreign currency translation. The increase in goodwill for the construction and forestry segment was primarily due to fluctuations in foreign currency translation and an allocation of goodwill from an acquisition of $11 million. The components of other intangible assets are as follows in millions of dollars: Useful Lives* (Years) 2009 2008 Amortized intangible assets: Customer lists and relationships 13 $ 93 $ 94 Technology, patents, trademarks and other 15 105 115 Total at cost 198 209 Less accumulated amortization 62 48 Other intangible assets-net $ 136 $ 161 * Weighted-averages Other intangible assets are stated at cost less accumulated amortization. The amortization of other intangible assets in 2009, 2008 and 2007 was $18 million, $20 million and $12 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: 2010 - $19, 2011 - $16, 2012 - $15, 2013 - $13, and 2014 - $12.

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SHORT-TERM BORROWINGS	18. SHORT-TERM BORROWINGS Short-term borrowings at October31 consisted of the following in millions of dollars: 2009 2008 Equipment Operations Commercial paper $ 101 $ 124 Notes payable to banks 77 85 Long-term borrowings due within one year 312 9 Total 490 218 Financial Services Commercial paper 185 2,837 Notes payable to banks 3 8 Notes payable related to securitizations (see below) 3,132 1,682 Long-term borrowings due within one year 3,349 3,776 Total 6,669 8,303 Short-term borrowings $ 7,159 $ 8,521 The notes payable related to securitizations for Financial Services are secured by restricted financing receivables (retail notes) on the balance sheet (see Note 13). Although these notes payable are classified as short-term since payment is required if the retail notes are liquidated early, the payment schedule for these borrowings of $3,132 million at October31, 2009 based on the expected liquidation of the retail notes in millions of dollars is as follows: 2010 - $1,551, 2011 - $954, 2012 - $506, 2013 - $120 and 2014 - $1. The weighted-average interest rates on total short-term borrowings, excluding current maturities of long-term borrowings, at October31, 2009 and 2008 were 1.7 percent and 3.2 percent, respectively. The Financial Services short-term borrowings represent obligations of the credit subsidiaries. Lines of credit available from U.S. and foreign banks were $4,558 million at October31, 2009. Some of these credit lines are available to both Deere Company and Capital Corporation. At October31, 2009, $4,214 million of these worldwide lines of credit were unused. For the purpose of computing the unused credit lines, commercial paper and short-term bank borrowings, excluding secured borrowings and the current portion of long-term borrowings, were primarily considered to constitute utilization. Included in the above lines of credit was a long-term credit facility agreement for $3.75 billion, expiring in February2012. The agreement is mutually extendable and the annual facility fee is not significant. The credit agreement requires the Capital Corporation to maintain its consolidated ratio of earnings to fixed charges at not less than 1.05 to 1 for each fiscal quarter and the ratio of senior debt, excluding securitization indebtedness, to capital base (total subordinated debt and stockholders equity excluding accumulated other comprehensive income (loss)) at not more than 11 to 1 at the end of any fiscal quarter. The credit agreement also requires the Equipment Operations to maintain a ratio of total debt to total capital (total debt and stockholders equity excluding accumulated other comprehensive income (loss)) of 65 percent or less at the end of each fiscal quarter according to accounting principles generally accepted in the U.S. in effect at October31, 2006. Under this provision, the companys excess equity capacity and retained earnings balance free of restriction at October31, 2009 was $6,494 million. Alternatively under this provision,

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	19. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses at October31 consisted of the following in millions of dollars: 2009 2008 Equipment Operations Accounts payable: Trade payables $ 1,093 $ 1,773 Dividends payable 118 118 Other 131 108 Accrued expenses: Employee benefits 861 1,175 Product warranties 513 586 Dealer sales discounts 774 711 Accrued income taxes 5 79 Other 1,119 1,126 Total 4,614 5,676 Financial Services Accounts payable: Deposits withheld from dealers and merchants $ 181 $ 189 Other 261 230 Accrued expenses: Unearned revenue 280 289 Accrued interest 204 150 Employee benefits 51 81 Accrued income taxes 55 29 Other 231 197 Total 1,263 1,165 Eliminations* 506 447 Accounts payable and accrued expenses $ 5,371 $ 6,394 * Primarily trade receivable valuation accounts which are reclassified as accrued expenses by the Equipment Operations as a result of their trade receivables being sold to Financial Services.

LONG-TERM BORROWINGS

LONG-TERM BORROWINGS
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
LONG-TERM BORROWINGS	20. LONG-TERM BORROWINGS Long-term borrowings at October31 consisted of the following in millions of dollars: 2009 2008 Equipment Operations** Notes and debentures: 7.85% debentures due 2010 $ 306 6.95% notes due 2014: ($700 principal) Swapped $300 to variable interest rates of 1.25% 2009 and $700 to 4.5% 2008 $ 800 * 770 * 4.375% notes due 2019 750 8.95% debentures due 2019 56 8-1/2% debentures due 2022 105 105 6.55% debentures due 2028 200 200 5.375% notes due 2029 500 8.10% debentures due 2030 250 250 7.125% notes due 2031 300 300 Other notes 168 5 Total 3,073 1,992 Financial Services** Notes and debentures: Medium-term notes due 2010 2018: (principal $11,186 - 2009, $9,189 - 2008) Average interest rates of 3.5% 2009, 4.7% 2008 11,430 * 9,267 * 7% notes due 2012: ($1,500 principal) Swapped $1,225 to variable interest rates of 1.3% 2009, 2.8% 2008 1,640 * 1,618 * 5.10% debentures due 2013: ($650 principal) Swapped to variable interest rates of 1.0% 2009, 4.8% 2008 699 * 668 * Other notes 550 354 Total 14,319 11,907 Long-term borrowings $ 17,392 $ 13,899 * Includes fair value adjustments related to interest rate swaps. ** All interest rates are as of year end. The Financial Services long-term borrowings represent obligations of the credit subsidiaries. The approximate principal amounts of the Equipment Operations long-term borrowings maturing in each of the next five years in millions of dollars are as follows: 2010 $312, 2011 none, 2012 $173, 2013 none and 2014 $700. The approximate principal amounts of the credit subsidiaries long-term borrowings maturing in each of the next five years in millions of dollars are as follows: 2010 $3,350, 2011 $3,152, 2012 $5,014, 2013 $2,725 and 2014 $977.

LEASES

LEASES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
LEASES	21. LEASES At October31, 2009, future minimum lease payments under capital leases amounted to $56 million as follows: 2010 $19, 2011 $16, 2012 $3, 2013 $2, 2014 $2 and later years $14. Total rental expense for operating leases was $187 million in 2009, $165 million in 2008 and $126 million in 2007. At October31, 2009, future minimum lease payments under operating leases amounted to $544 million as follows: 2010 $128, 2011 $101, 2012 $79, 2013 $55, 2014 $40 and later years $141.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
COMMITMENTS AND CONTINGENCIES	22. COMMITMENTS AND CONTINGENCIES The company generally determines its warranty liability by applying historical claims rate experience to the estimated amount of equipment that has been sold and is still under warranty based on dealer inventories and retail sales. The historical claims rate is primarily determined by a review of five-year claims costs and current quality developments. The premiums for the companys extended warranties are primarily recognized in income in proportion to the costs expected to be incurred over the contract period. The unamortized extended warranty premiums (deferred revenue) included in the following table totaled $214 million and $228 million at October31, 2009 and 2008, respectively. A reconciliation of the changes in the warranty liability and unearned premiums in millions of dollars follows: Warranty Liability/ Unearned Premiums 2009 2008 Beginning of year balance $ 814 $ 774 Payments (549 ) (548 ) Amortization of premiums received (103 ) (98 ) Accruals for warranties 458 612 Premiums received 87 112 Foreign exchange 20 (38 ) End of year balance $ 727 $ 814 At October31, 2009, the company had approximately $170 million of guarantees issued primarily to banks outside the U.S. and Canada related to third-party receivables for the retail financing of John Deere equipment. The company may recover a portion of any required payments incurred under these agreements from repossession of the equipment collateralizing the receivables. At October31, 2009, the company had accrued losses of approximately $7 million under these agreements. The maximum remaining term of the receivables guaranteed at October31, 2009 was approximately six years. The credit operations subsidiary, John Deere Risk Protection,Inc., offers crop insurance products through managing general agency agreements (Agreements) with insurance companies (Insurance Carriers) rated Excellent byA.M. Best Company. As a managing general agent, John Deere Risk Protection,Inc. will receive commissions from the Insurance Carriers for selling crop insurance to producers. The credit operations have guaranteed certain obligations under the Agreements, including the obligation to pay the Insurance Carriers for any uncollected premiums. At October31, 2009, the maximum exposure for uncollected premiums was approximately $60 million. Substantially all of the credit operations crop insurance risk under the Agreements has been mitigated by a syndicate of private reinsurance companies. The reinsurance companies are rated Excellent or higher byA.M. Best Company. In the event of a widespread catastrophic crop failure throughout the U.S. and the default of these highly rated private reinsurance companies on their reinsurance obligations, the credit operations would be required to reimburse the Insurance Carriers for exposure under the Agreements of approximately $981 million at October31, 2009. The credit operations believe that the likelihood of the occurrence of events that give rise to the exposures under

CAPITAL STOCK

CAPITAL STOCK
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CAPITAL STOCK	23. CAPITAL STOCK Changes in the common stock account in millions were as follows: Number of Shares Issued Amount Balance at October31, 2006 536.4 $ 2,204 Transfer from retained earnings for two-for-one stock split 268 Stock options and other 305 Balance at October31, 2007 536.4 2,777 Stock options and other 157 Balance at October31, 2008 536.4 2,934 Stock options and other 62 Balance at October31, 2009 536.4 $ 2,996 On November14, 2007, the stockholders of the company approved a two-for-one stock split effected in the form of a 100 percent stock dividend to stockholders of record on November26, 2007, distributed on December3, 2007. This stock split was recorded as of October31, 2007 by a transfer of $268 million from retained earnings to common stock, representing a $1 par value for each additional share issued. The number of common shares the company is authorized to issue was also increased from 600 million to 1,200 million. The number of authorized preferred shares, none of which has been issued, remained at nine million. The Board of Directors at its meeting in May2008 authorized the repurchase of up to $5 billion of additional common stock (109.8 million shares based on October31, 2009 closing common stock price of $45.55 per share). This repurchase program supplements the previous 40 million share repurchase program, which had 13.7 million shares remaining as of October31, 2009, for a total of 123.5 million shares remaining to be repurchased. Repurchases of the companys common stock under this plan will be made from time to time, at the companys discretion, in the open market. A reconciliation of basic and diluted income per share follows in millions, except per share amounts: 2009 2008 2007 Net income $ 873.5 $ 2,052.8 $ 1,821.7 Average shares outstanding 422.8 431.1 449.3 Basic net income per share $ 2.07 $ 4.76 $ 4.05 Average shares outstanding 422.8 431.1 449.3 Effect of dilutive stock options 1.6 5.2 5.7 Total potential shares outstanding 424.4 436.3 455.0 Diluted net income per share $ 2.06 $ 4.70 $ 4.00 All stock options outstanding were included in the computation during 2009, 2008 and 2007, except 4.7 million options in 2009 and 2.0 million options in 2008 that had an antidilutive effect under the treasury stock method.

STOCK OPTION AND RESTRICTED STO

STOCK OPTION AND RESTRICTED STOCK AWARDS
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
STOCK OPTION AND RESTRICTED STOCK AWARDS	24. STOCK OPTION AND RESTRICTED STOCK AWARDS The company issues stock options and restricted stock awards to key employees under plans approved by stockholders. Restricted stock is also issued to nonemployee directors for their services as directors under a plan approved by stockholders. Options are awarded with the exercise price equal to the market price and become exercisable in one to three years after grant. Options expire ten years after the date of grant. Restricted stock awards generally vest after three years. The company recognizes the compensation cost on these stock options and restricted stock awards either immediately if the employee is eligible to retire or on a straight-line basis over the vesting period for the entire award. According to these plans at October31, 2009, the company is authorized to grant an additional 11.2 million shares related to stock options or restricted stock. The fair value of each option award was estimated on the date of grant using a binomial lattice option valuation model. Expected volatilities are based on implied volatilities from traded call options on the companys stock. The expected volatilities are constructed from the following three components: the starting implied volatility of short-term call options traded within a few days of the valuation date; the predicted implied volatility of long-term call options; and the trend in implied volatilities over the span of the call options time to maturity. The company uses historical data to estimate option exercise behavior and employee termination within the valuation model. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free rates utilized for periods throughout the contractual life of the options are based on U.S. Treasury security yields at the time of grant. The assumptions used for the binomial lattice model to determine the fair value of options follow: 2009 2008 2007 Risk-free interest rate .03% - 2.3% 2.9% - 4.0% 4.4% - 5.0% Expected dividends 1.5% 1.6% 2.0% Expected volatility 35.4% - 71.7% 30.1% - 46.7% 26.2% - 28.8% Weighted-average volatility 36.0% 30.4% 26.3% Expected term (in years) 6.7 - 7.8 6.6 - 7.6 6.7 - 7.6 Stock option activity at October31, 2009 and changes during 2009 in millions of dollars and shares except for share price follow: Shares Exercise Price* Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at beginning of year 16.1 $ 40.60 Granted 4.6 39.67 Exercised (.7 ) 24.85 Expired or forfeited (.2 ) 50.61 Outstanding at end of year 19.8 40.81 6.24 $ 184.6 Exercisable at end of year 13.4 36.56 5.10 158.9 * Weighted-averages The weighted-average grant-date fair values of options granted during 2009, 2008 and 2007 were $13.06, $27.90 and $14.10, respectively. The total intri

OTHER COMPREHENSIVE INCOME ITEM

OTHER COMPREHENSIVE INCOME ITEMS
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
OTHER COMPREHENSIVE INCOME ITEMS	25. OTHER COMPREHENSIVE INCOME ITEMS Other comprehensive income items are transactions recorded in stockholders equity during the year, excluding net income and transactions with stockholders. Following are the items included in other comprehensive income (loss) and the related tax effects in millions of dollars: Before Tax After Tax (Expense) Tax Amount Credit Amount 2007 Minimum pension liability adjustment $ 104 $ (38 ) $ 66 Cumulative translation adjustment 325 4 329 Unrealized loss on derivatives: Hedging loss (16 ) 6 (10 ) Reclassification of realized gain to net income (6 ) 2 (4 ) Net unrealized loss (22 ) 8 (14 ) Unrealized loss on investments: Holding loss (6 ) 2 (4 ) Reclassification of realized loss to net income 4 (1 ) 3 Net unrealized loss (2 ) 1 (1 ) Total other comprehensive income (loss) $ 405 $ (25 ) $ 380 2008 Retirement benefits adjustment: Net actuarial losses and prior service cost $ (567 ) $ 174 $ (393 ) Reclassification of actuarial losses and prior service cost to net income 142 (54 ) 88 Net unrealized loss (425 ) 120 (305 ) Cumulative translation adjustment (401 ) (5 ) (406 ) Unrealized loss on derivatives: Hedging loss (73 ) 24 (49 ) Reclassification of realized loss to net income 24 (8 ) 16 Net unrealized loss (49 ) 16 (33 ) Unrealized loss on investments: Holding loss (38 ) 13 (25 ) Reclassification of realized loss to net income 29 (10 ) 19 Net unrealized loss (9 ) 3 (6 ) Total other comprehensive income (loss) $ (884 ) $ 134 $ (750 ) 2009 Retirement benefits adjustment: Net actuarial losses and prior service cost $ (4,198 ) $ 1,587 $ (2,611 ) Reclassification of actuarial losses and prior service cost to net income 105 (31 ) 74 Net unrealized loss (4,093 ) 1,556 (2,537 ) Cumulative translation adjustment 326 1 327 Unrealized loss on derivatives: Hedging loss (90 ) 31 (59 ) Reclassification of realized loss to net income 84 (29 ) 55 Net unrealized loss (6 ) 2 (4 ) Unrealized gain on investments: Holding loss (793 ) 278 (515 ) Reclassification of realized loss to net income 805 (282 ) 523 Net unrealized gain 12 (4 ) 8 Total other comprehensive income (loss) $ (3,761 ) $ 1,555 $ (2,206 )

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FINANCIAL INSTRUMENTS	26. FINANCIAL INSTRUMENTS The fair values of financial instruments that do not approximate the carrying values in the financial statements at October31 in millions of dollars follow: 2009 2008 Carrying Fair Carrying Fair Value Value Value Value Financing receivables $ 15,255 $ 15,434 $ 16,017 $ 15,588 Restricted financing receivables $ 3,108 $ 3,146 $ 1,645 $ 1,640 Short-term secured borrowings* $ 3,132 $ 3,162 $ 1,682 $ 1,648 Long-term borrowings: Equipment Operations $ 3,073 $ 3,303 $ 1,992 $ 1,895 Financial Services 14,319 14,818 11,907 11,112 Total $ 17,392 $ 18,121 $ 13,899 $ 13,007 * See Note 18. Fair values of the long-term financing receivables were based on the discounted values of their related cash flows at current market interest rates. The fair values of the remaining financing receivables approximated the carrying amounts. Fair values of long-term borrowings and short-term secured borrowings were based on the discounted values of their related cash flows at current market interest rates. Certain long-term borrowings have been swapped to current variable interest rates. The carrying values of these long-term borrowings include adjustments related to fair value hedges. All derivative instruments are recorded at fair values and classified as either other assets or accounts payable and accrued expenses on the balance sheet. The total amounts of the companys derivatives at October31, 2009 and 2008 that were recorded in other assets were $740 million and $417 million, respectively. The total amounts recorded in accounts payable and accrued expenses for the same periods were $154 million and $129 million, respectively, (see Note 27). Assets and liabilities measured at October31 at fair value in the financial statements on a recurring basis in millions of dollars follow: 2009 Total Level 1 Level 2 Marketable securities U.S. government debt securities $ 52 $ 32 $ 20 Municipal debt securities 24 24 Corporate debt securities 43 43 Residential mortgage-backed securities* 73 73 Total marketable securities 192 32 160 Other assets Derivatives: Interest rate contracts 550 550 Foreign exchange contracts 17 17 Cross-currency interest rate contracts 173 173 Total assets $ 932 $ 32 $ 900 Accounts payable and accrued expenses Derivatives: Interest rate contracts $ 121 $ 121 Foreign exchange contracts 32 32 Cross-currency interest rate contracts 1 1 Total liabilities $ 154 $ 154 * Primarily issued by U.S. government sponsored enterprises. Financial assets measured at fair value at October31 on a nonrecurring basis and the losses during the year in millions o

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DERIVATIVE INSTRUMENTS	27. DERIVATIVE INSTRUMENTS It is the companys policy that derivative transactions are executed only to manage exposures arising in the normal course of business and not for the purpose of creating speculative positions or trading. The companys credit operations manage the relationship of the types and amounts of their funding sources to their receivable and lease portfolio in an effort to diminish risk due to interest rate and foreign currency fluctuations, while responding to favorable financing opportunities. The company also has foreign currency exposures at some of its foreign and domestic operations related to buying, selling and financing in currencies other than the local currencies. All derivatives are recorded at fair value on the balance sheet. Each derivative is designated as a cash flow hedge, a fair value hedge, or remains undesignated. All designated hedges are formally documented as to the relationship with the hedged item as well as the risk-management strategy. Both at inception and on an ongoing basis the hedging instrument is assessed as to its effectiveness, when applicable. If and when a derivative is determined not to be highly effective as a hedge, or the underlying hedged transaction is no longer likely to occur, or the hedge designation is removed, or the derivative is terminated, hedge accounting is discontinued. Any past or future changes in the derivatives fair value, which will not be effective as an offset to the income effects of the item being hedged, are recognized currently in the income statement. Certain of the companys derivative agreements contain credit support provisions that require the company to post collateral based on reductions in credit ratings. The aggregate fair value of all derivatives with credit-risk-related contingent features that are in a liability position at October31, 2009 was $13 million. The company, due to its credit rating, has not posted any collateral. If the credit-risk-related contingent features were triggered, the company would be required to post full collateral for this liability position. Derivative instruments are subject to significant concentrations of credit risk to the banking sector. The company manages individual counterparty exposure by setting limits that consider the credit rating of the counterparty and the size of other financial commitments and exposures between the company and the counterparty banks. All interest rate derivatives are transacted under International Swaps and Derivatives Association (ISDA) documentation. Some of these agreements include collateral support arrangements or mutual put options at fair value. Each master agreement permits the net settlement of amounts owed in the event of early termination. The maximum amount of loss that the company would incur if counterparties to derivative instruments fail to meet their obligations, not considering collateral received or netting arrangements, was $740 million as of October31, 2009. The amount of collateral received at October31, 2009 to offset this potential maximum loss was $81 million. The netting provisions of the agreements would reduce the maximum amount of loss the com

SEGMENT AND GEOGRAPHIC AREA DAT

SEGMENT AND GEOGRAPHIC AREA DATA FOR THE YEARS ENDED OCTOBER 31, 2009, 2008 AND 2007
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEGMENT AND GEOGRAPHIC AREA DATA FOR THE YEARS ENDED OCTOBER 31, 2009, 2008 AND 2007	28. SEGMENT AND GEOGRAPHIC AREA DATA FOR THE YEARS ENDED OCTOBER 31, 2009, 2008 AND 2007 In April2009, the company announced it was combining the organization and internal reporting of the agricultural equipment segment with the commercial and consumer equipment segment. The operations were combined into the agriculture and turf segment effective at the beginning of the third quarter of 2009. By combining the organization of these segments, the company expects to achieve greater alignment and efficiency to meet worldwide customer needs while reducing overall costs. The company further expects the combination will extend the reach of turf management equipment, utility vehicles and lower horsepower equipment through the improved access to established global markets. The segment information has been revised for this change. The companys operations are presently organized and reported in three major business segments described as follows: The agriculture and turf segment manufactures and distributes a full line of farm and turf equipment and related service parts including large, medium and utility tractors; loaders; combines, cotton and sugarcane harvesters and related front-end equipment and sugarcane loaders; tillage, seeding and application equipment including sprayers, nutrient management and soil preparation machinery; hay and forage equipment, including self-propelled forage harvesters and attachments, balers and mowers; turf and utility equipment, including riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, and commercial mowing equipment, along with a broad line of associated implements; integrated agricultural management systems technology; precision agricultural irrigation equipment and supplies; landscape and nursery products; and other outdoor power products. The construction and forestry segment manufactures, distributes to dealers and sells at retail a broad range of machines and service parts used in construction, earthmoving, material handling and timber harvesting including backhoe loaders; crawler dozers and loaders; four-wheel-drive loaders; excavators; motor graders; articulated dump trucks; landscape loaders; skid-steer loaders; and log skidders, feller bunchers, log loaders, log forwarders, log harvesters and related attachments. The products and services produced by the segments above are marketed primarily through independent retail dealer networks and major retail outlets. The credit segment primarily finances sales and leases by John Deere dealers of new and used agriculture and turf equipment and construction and forestry equipment. In addition, it provides wholesale financing to dealers of the foregoing equipment, provides operating loans, finances retail revolving charge accounts, offers certain crop risk mitigation products and invests in wind energy generation. Certain operations do not meet the materiality threshold of reporting and are included in the Other category. Because of integrated manufacturing operations and common administrative and marketing support, a substantial number of allocations must be made to determine operating segment

SUPPLEMENTAL INFORMATION

SUPPLEMENTAL INFORMATION (UNAUDITED)
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SUPPLEMENTAL INFORMATION (UNAUDITED)	29. SUPPLEMENTAL INFORMATION (UNAUDITED) Common stock per share sales prices from New York Stock Exchange composite transactions quotations follow: First Second Third Fourth Quarter Quarter Quarter Quarter 2009 Market price High $ 45.99 $ 42.88 $ 47.05 $ 48.38 Low $ 28.77 $ 24.83 $ 35.31 $ 41.13 2008 Market price High $ 94.69 $ 93.35 $ 90.19 $ 73.47 Low $ 70.76 $ 79.15 $ 64.01 $ 29.89 At October31, 2009, there were 27,925 holders of record of the companys $1 par value common stock. Quarterly information with respect to net sales and revenues and earnings is shown in the following schedule. The companys fiscal year ends in Octoberand its interim periods (quarters) end in January, Apriland July. Such information is shown in millions of dollars except for per share amounts. First Second Third Fourth Quarter Quarter Quarter Quarter 2009* Net sales and revenues $ 5,146 $ 6,748 $ 5,884 $ 5,334 Net sales 4,560 6,187 5,283 4,726 Gross profit 1,018 1,430 1,225 828 Income (loss) before income taxes 274 612 509 (55 ) Net income (loss) 204 472 420 (223 ) Net income (loss) per share basic .48 1.12 .99 (.53 ) Net income (loss) per share diluted .48 1.11 .99 (.53 ) Dividends declared per share .28 .28 .28 .28 Dividends paid per share .28 .56 ** .28 2008* Net sales and revenues $ 5,201 $ 8,097 $ 7,739 $ 7,401 Net sales 4,531 7,469 7,070 6,734 Gross profit 1,169 1,960 1,648 1,452 Income before income taxes 531 1,163 869 561 Net income 369 764 575 345 Net income per share basic .84 1.76 1.34 .81 Net income per share diluted .83 1.74 1.32 .81 Dividends declared per share .25 .25 .28 .28 Dividends paid per share .25 .25 .25 .28 Net income per share for each quarter must be computed independently. As a result, their sum may not equal the total net income per share for the year. *See Note 5 for Special Items. **Due to the dividend payment dates, two quarterly dividends of $.28 per share were included in the second quarter of 2009.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SUBSEQUENT EVENTS	30. SUBSEQUENT EVENTS A quarterly dividend of $.28 per share was declared at the Board of Directors meeting on December2, 2009, payable on February1, 2010 to stockholders of record on December31, 2009 (see Note 2).

SUPPLEMENTAL CONSOLIDATING DATA

SUPPLEMENTAL CONSOLIDATING DATA
	12 Months Ended Oct. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SUPPLEMENTAL CONSOLIDATING DATA	31. SUPPLEMENTAL CONSOLIDATING DATA INCOME STATEMENT For the Years Ended October31, 2009, 2008 and 2007 (In millions of dollars) EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2009 2008 2007 2009 2008 2007 Net Sales and Revenues Net sales $ 20,756.1 $ 25,803.5 $ 21,489.1 Finance and interest income 77.7 106.7 123.4 $ 2,037.3 $ 2,249.7 $ 2,225.2 Other income 337.1 366.9 403.7 246.0 282.3 214.3 Total 21,170.9 26,277.1 22,016.2 2,283.3 2,532.0 2,439.5 Costs and Expenses Cost of sales 16,256.9 19,576.2 16,254.0 Research and development expenses 977.0 943.1 816.8 Selling, administrative and general expenses 2,262.4 2,517.0 2,237.0 528.3 451.9 390.8 Interest expense 162.6 183.9 181.2 924.8 1,008.8 1,017.3 Interest compensation to Financial Services 227.9 232.4 246.4 Other operating expenses 186.1 192.7 157.8 588.5 579.3 478.8 Total 20,072.9 23,645.3 19,893.2 2,041.6 2,040.0 1,886.9 Income of Consolidated Group before Income Taxes 1,098.0 2,631.8 2,123.0 241.7 492.0 552.6 Provision for income taxes 420.3 955.6 693.8 39.7 155.6 189.3 Income of Consolidated Group 677.7 1,676.2 1,429.2 202.0 336.4 363.3 Equity in Income of Unconsolidated Subsidiaries and Affiliates Credit 189.7 327.5 360.8 .5 1.0 .4 Other 6.1 49.1 31.7 Total 195.8 376.6 392.5 .5 1.0 .4 Net Income $ 873.5 $ 2,052.8 $ 1,821.7 $ 202.5 $ 337.4 $ 363.7 *Deere Company with Financial Services on the equity basis. The supplemental consolidating data is presented for informational purposes. The Equipment Operations reflect the basis of consolidation described in Note 1 to the consolidated financial statements. The consolidated group data in the Equipment Operations income statement reflect the results of the agriculture and turf operations and construction and forestry operations. The supplemental Financial Services data represent primarily Deere Companys credit operations. Transactions between the Equipment Operations and Financial Services have been eliminated to arrive at the consolidated financial statements. BALANCE SHEET As of October31, 2009 and 2008 (In millions of dollars except per share amounts) EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2009 2008 2009 2008 ASSETS Cash and cash equivalents $ 3,689.8 $ 1,034.6 $ 961.9 $ 1,176.8 Marketable securities 799.2 192.0 178.3 Receivables from unconsolidated subsidiaries and affiliates 461.4 976.2 Trade accounts and notes receivable - net 775.4 1,013.8 2,34

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Oct. 31, 2009 USD / shares
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II DEERE COMPANY AND CONSOLIDATED SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS For the Years Ended October31, 2009, 2008 and 2007 (in thousands of dollars) ColumnA ColumnB ColumnC ColumnD ColumnE Additions Balanceat Chargedto Balance beginning costsand Chargedtootheraccounts Deductions atend Description ofperiod expenses Description Amount Description Amount ofperiod YEAR ENDED OCTOBER 31, 2009 Allowance for doubtful receivables: Equipment Operations Trade receivable allowances $ 50,527 $ 35,251 Bad debt recoveries $ 20,043 Trade receivable write-offs $ 37,919 $ 72,729 Other (primarily translation) 4,827 Financial Services Trade receivable allowances 5,746 1,699 Other (primarily translation) 558 Trade receivable write-offs 3,155 4,848 Financing receivable allowances 169,637 195,053 Other (primarily translation) 14,523 Financing receivable write-offs 140,303 238,910 Consolidated receivable allowances $ 225,910 $ 232,003 $ 39,951 $ 181,377 $ 316,487 YEAR ENDED OCTOBER 31, 2008 Allowance for doubtful receivables: Equipment Operations Trade receivable allowances $ 58,280 $ 10,475 Bad debt recoveries $ 987 Trade receivable write-offs $ 15,370 $ 50,527 Other (primarily translation) 3,845 Financial Services Trade receivable allowances 6,067 226 Other 81 Trade receivable write-offs 628 5,746 Financing receivable allowances 171,997 82,891 Financing receivable write-offs 70,586 169,637 Other (primarily translation) 14,665 Consolidated receivable allowances $ 236,344 $ 93,592 $ 1,068 $ 105,094 $ 225,910 YEAR ENDED OCTOBER 31, 2007 Allowance for doubtful receivables: Equipment Operations Trade receivable allowances $ 55,820 $ 7,565 Bad debt recoveries $ 143 Trade receivable write-offs $ 5,248 $ 58,280 Financial Services Trade receivable allowances 5,880 1,711 Other 66 Trade receivable write-offs 1,590 6,067 Financing receivable allowances 155,363 61,681 Other (translation) 13,846 Financing receivable write-offs 58,893 171,997 Consolidated receivable allowances $ 217,063 $ 70,957 $ 14,055 $ 65,731 $ 236,344

Document and Entity Information

Document and Entity Information (USD $)
	12 Months Ended Oct. 31, 2009	Nov. 30, 2009	Apr. 30, 2009
Document and Entity Information
Entity Registrant Name	DEERE & CO
Entity Central Index Key	0000315189
Document Type	10-K
Document Period End Date	2009-10-31
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$18,057,734,215
Entity Common Stock, Shares Outstanding		422,637,808