Deere & Company (DE) 10-K 2003 FY Annual report

EXHIBIT 12

DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In thousands of dollars)

	Year Ended October 31
	2003		2002		2001			2000		1999
Earnings:
Income of consolidated group before income taxes and changes in accounting	$	971,277	$	602,705	$	(24,757	)	$	777,507	$	365,135
Dividends received from less than fifty percent owned affiliates		3,151		2,236		1,675			3,065		5,734
Fixed charges excluding capitalized interest		643,511		659,263		787,737			693,626		571,949
Total earnings	$	1,617,939	$	1,264,204	$	764,655		$	1,474,198	$	942,818
Fixed charges:
Interest expense of consolidated group including capitalized interest	$	628,647	$	637,571	$	766,254		$	677,424	$	557,740
Portion of rental charges deemed to be interest		15,044		22,145		22,030			17,122		15,347
Total fixed charges	$	643,691	$	659,716	$	788,284		$	694,546	$	573,087
Ratio of earnings to fixed charges*		2.51		1.92		**			2.12		1.65

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, 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 that 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.

** For the year ended October 31, 2001, earnings available for fixed charges coverage were $24 million less than the amount required for a ratio of earnings to fixed charges of 1.0.