Deere & Company (DE) 10-Q 1 Sep 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Jul. 31, 2016shares
Document and Entity Information
Entity Registrant Name	DEERE & CO
Entity Central Index Key	315,189
Document Type	10-Q
Document Period End Date	Jul. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	314,422,919
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

STATEMENT OF CONSOLIDATED INCOM

STATEMENT OF CONSOLIDATED INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Net Sales and Revenues
Net sales	$ 5,861.4	$ 6,839.5	$ 17,737.1	$ 19,843.1
Finance and interest income	638.5	596.7	1,849	1,766.7
Other income	224.5	157.5	538.3	537.7
Total	6,724.4	7,593.7	20,124.4	22,147.5
Costs and Expenses
Cost of sales	4,494.2	5,358	13,865.3	15,472.8
Research and development expenses	338.8	346.8	1,003.1	1,021.1
Selling, administrative and general expenses	709	755.3	2,016.8	2,154.2
Interest expense	200.7	171.5	564.9	517.1
Other operating expenses	276.6	223.6	884.7	659.1
Total	6,019.3	6,855.2	18,334.8	19,824.3
Income of Consolidated Group before Income Taxes	705.1	738.5	1,789.6	2,323.2
Provision for income taxes	226.5	241	559.9	735.6
Income of Consolidated Group	478.6	497.5	1,229.7	1,587.6
Equity in income of unconsolidated affiliates	10	14.2	7.3	1.8
Net Income	488.6	511.7	1,237	1,589.4
Less: Net income (loss) attributable to noncontrolling interests	(0.2)	0.1	(1.6)	0.6
Net Income Attributable to Deere & Company	$ 488.8	$ 511.6	$ 1,238.6	$ 1,588.8
Per Share Data
Basic (in dollars per share)	$ 1.55	$ 1.54	$ 3.93	$ 4.71
Diluted (in dollars per share)	$ 1.55	$ 1.53	$ 3.91	$ 4.67
Average Shares Outstanding
Basic (in shares)	314.3	331.4	315.4	337.3
Diluted (in shares)	315.7	334.1	316.7	339.9

STATEMENT OF CONSOLIDATED COMPR

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME
Net Income	$ 488.6	$ 511.7	$ 1,237	$ 1,589.4
Other Comprehensive Income (Loss), Net of Income Taxes
Retirement benefits adjustment	30.3	41.3	87.5	104.5
Cumulative translation adjustment	(99.5)	(255.9)	54.3	(832.9)
Unrealized gain (loss) on derivatives	(0.2)	(0.8)	0.8	(1)
Unrealized gain on investments	6	1.5	4.7	4.6
Other Comprehensive Income (Loss), Net of Income Taxes	(63.4)	(213.9)	147.3	(724.8)
Comprehensive Income of Consolidated Group	425.2	297.8	1,384.3	864.6
Less: Comprehensive income (loss) attributable to noncontrolling interests	(0.2)	0	(1.5)	0.2
Comprehensive Income Attributable to Deere & Company	$ 425.4	$ 297.8	$ 1,385.8	$ 864.4

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Oct. 31, 2014
ASSETS
Cash and cash equivalents	$ 4,321	$ 4,162.2	$ 4,130.8	$ 3,787
Marketable securities	468.9	437.4	421.1
Receivables from unconsolidated affiliates	18.7	33.3	43.2
Trade accounts and notes receivable - net	3,924.6	3,051.1	4,220.4
Financing receivables - net	22,594.8	24,809	24,973.4
Financing receivables securitized - net	5,947.4	4,834.6	4,737.8
Other receivables	811.9	991.2	823.1
Equipment on operating leases - net	5,602.7	4,970.4	4,426
Inventories	3,851.3	3,817	4,319
Property and equipment - net	5,047.3	5,181.5	5,126.4
Investments in unconsolidated affiliates	246.2	303.5	310.6
Goodwill	823.6	726	715.9	791
Other intangible assets - net	109.5	63.6	57.8
Retirement benefits	323.1	215.6	335
Deferred income taxes	2,612.6	2,767.3	2,705
Other assets	1,902.8	1,583.9	1,586.7
Total Assets	58,606.4	57,947.6	58,932.2
LIABILITIES
Short-term borrowings	7,362.1	8,426.6	9,347.9
Short-term securitization borrowings	5,728.9	4,590	4,595.4
Payables to unconsolidated affiliates	74.2	80.6	73.7
Accounts payable and accrued expenses	6,799.5	7,311.5	7,235.8
Deferred income taxes	172.3	160.8	150.9
Long-term borrowings	24,128.4	23,832.8	23,200.9
Retirement benefits and other liabilities	6,886.9	6,787.7	6,602.6
Total liabilities	51,152.3	51,190	51,207.2
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest (Note 18)	14.4
STOCKHOLDERS' EQUITY
Common stock, $1 par value (issued shares at July 31, 2016 - 536,431,204)	3,883.9	3,825.6	3,806.5
Common stock in treasury	(15,688.3)	(15,497.6)	(14,562.5)
Retained earnings	23,815	23,144.8	22,986.5
Accumulated other comprehensive income (loss)	(4,582.2)	(4,729.4)	(4,507.4)
Total Deere & Company stockholders' equity	7,428.4	6,743.4	7,723.1
Noncontrolling interests	11.3	14.2	1.9
Total stockholders' equity	7,439.7	6,757.6	7,725	$ 9,065.5
Total Liabilities and Stockholders' Equity	$ 58,606.4	$ 57,947.6	$ 58,932.2

CONDENSED CONSOLIDATED BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical)	Jul. 31, 2016$ / sharesshares
CONDENSED CONSOLIDATED BALANCE SHEET
Common stock, par value (in dollars per share) | $ / shares	$ 1
Common stock, issued shares | shares	536,431,204

STATEMENT OF CONSOLIDATED CASH

STATEMENT OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Cash Flows from Operating Activities
Net income	$ 1,237	$ 1,589.4
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	70.3	35.4
Provision for depreciation and amortization	1,158.4	1,029.2
Impairment charges	49.7
Share-based compensation expense	51.8	47.7
Undistributed earnings of unconsolidated affiliates	0.7	(5.2)
Provision for deferred income taxes	155.5	73
Changes in assets and liabilities:
Trade, notes and financing receivables related to sales	(588.1)	(598)
Insurance receivables		333.4
Inventories	(380.1)	(941.5)
Accounts payable and accrued expenses	(461.9)	(594.6)
Accrued income taxes payable/receivable	78.3	(58.1)
Retirement benefits	145.8	293.4
Other	(197.5)	(12.3)
Net cash provided by operating activities	1,319.9	1,191.8
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)	11,312.7	11,517.9
Proceeds from maturities and sales of marketable securities	139.2	833
Proceeds from sales of equipment on operating leases	916.6	773.7
Proceeds from sales of business and unconsolidated affiliates, net of cash sold	81.1	149.2
Cost of receivables acquired (excluding receivables related to sales)	(10,423.4)	(11,162.9)
Purchases of marketable securities	(149.9)	(100.8)
Purchases of property and equipment	(387)	(461.4)
Cost of equipment on operating leases acquired	(1,730.6)	(1,355.7)
Acquisitions of businesses, net of cash acquired	(198.9)
Other	77.8	(23.4)
Net cash provided by (used for) investing activities	(362.4)	169.6
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings	(133.7)	1,805.2
Proceeds from long-term borrowings	4,115.2	3,639.8
Payments of long-term borrowings	(3,977.3)	(3,980.1)
Proceeds from issuance of common stock	17.5	170.4
Repurchases of common stock	(205.4)	(1,833.9)
Dividends paid	(572.6)	(617.9)
Excess tax benefits from share-based compensation	3.8	18.5
Other	(53.6)	(56.9)
Net cash used for financing activities	(806.1)	(854.9)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	7.4	(162.7)
Net Increase in Cash and Cash Equivalents	158.8	343.8
Cash and Cash Equivalents at Beginning of Period	4,162.2	3,787
Cash and Cash Equivalents at End of Period	$ 4,321	$ 4,130.8

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)	Noncontrolling Interests	Total
Balance at Oct. 31, 2014	$ 3,675.4	$ (12,834.2)	$ 22,004.4	$ (3,783)	$ 2.9	$ 9,065.5
Increase (Decrease) in Stockholders' Equity
Net income (loss)			1,588.8		0.6	1,589.4
Other comprehensive income (loss)				(724.4)	(0.4)	(724.8)
Repurchases of common stock		(1,833.9)				(1,833.9)
Treasury shares reissued		105.6				105.6
Dividends declared			(606.4)		(1.3)	(607.7)
Stock options and other	131.1		(0.3)		0.1	130.9
Balance at Jul. 31, 2015	3,806.5	(14,562.5)	22,986.5	(4,507.4)	1.9	7,725
Balance at Oct. 31, 2015	3,825.6	(15,497.6)	23,144.8	(4,729.4)	14.2	6,757.6
Increase (Decrease) in Stockholders' Equity
Net income (loss)			1,238.6		(2)	1,236.6
Other comprehensive income (loss)				147.2	0.1	147.3
Repurchases of common stock		(205.4)				(205.4)
Treasury shares reissued		14.7				14.7
Dividends declared			(568.3)		(0.9)	(569.2)
Stock options and other	58.3		(0.1)		(0.1)	58.1
Balance at Jul. 31, 2016	$ 3,883.9	$ (15,688.3)	$ 23,815	$ (4,582.2)	$ 11.3	7,439.7
Increase in Redeemable Noncontrolling Interest
Net income (loss)						0.4
Acquisition (Note 18)						14
Balance at Jul. 31, 2016						$ 14.4

ORGANIZATION AND CONSOLIDATION

ORGANIZATION AND CONSOLIDATION	9 Months Ended
	Jul. 31, 2016
ORGANIZATION AND CONSOLIDATION
ORGANIZATION AND CONSOLIDATION	(1)     The information in the notes and related commentary are presented in a format which includes data grouped as follows: Equipment Operations – Includes the Company’s agriculture and turf operations and construction and forestry operations with financial services reflected on the equity basis. Financial Services – Includes primarily the Company’s financing operations. Consolidated – Represents the consolidation of the equipment operations and financial services. References to "Deere & Company" or "the Company" refer to the entire enterprise. The Company uses a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The third quarter ends for fiscal year 2016 and 2015 were July 31, 2016 and August 2, 2015, respectively. Both periods contained 13 weeks. For ease of presentation, the consolidated financial statements and notes continue to be dated July 31.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CASH FLOW INFORMATION	9 Months Ended
	Jul. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CASH FLOW INFORMATION
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	(2)     T he interim consolidated financial statements of Deere & Company have been prepared by the Company, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted as permitted by such rules and regulations. All adjustments, consisting of normal recurring adjustments, have been included. Management believes that the disclosures are adequate to present fairly the financial position, results of operations and cash flows at the dates and for the periods presented. It is suggested that these interim consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto appearing in the Company’s latest annual report on Form 10-K. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year. 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.
CASH FLOW INFORMATION	Cash Flow Information All cash flows from the changes in trade accounts and notes receivable are classified as operating activities in the Statement of Consolidated Cash Flows as these receivables arise from sales to the Company’s customers. Cash flows from financing receivables that are related to sales to the Company’s customers 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 approximately $440 million and $468 million in the first nine months of 2016 and 2015, respectively. The Company also had accounts payable related to purchases of property and equipment of approximately $40 million and $42 million at July 31, 2016 and 2015, respectively.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	9 Months Ended
	Jul. 31, 2016
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS	(3)     New accounting standard adopted is as follows: In September 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update, (ASU) No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which amends Accounting Standards Codification (ASC) 805, Business Combinations. This ASU requires that acquiring entities recognize measurement period adjustments in the reporting period the amounts are determined, including earnings adjustments that would have been recorded in previous periods if the adjustments were known at the acquisition date. Acquiring entities are no longer required to retrospectively adjust amounts in comparative periods. The adjustment amounts and reasons are still disclosed. The Company early adopted this ASU in the second quarter of 2016. The adoption did not have a material effect on the Company’s consolidated financial statements. New accounting standards to be adopted are as follows: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, Deferral of the Effective Date, which amends ASU No. 2014-09. As a result, t he effective date will be the first quarter of fiscal year 2019 with early adoption permitted in the first quarter of fiscal year 2018. In March 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which amends ASU 2014-09. ASU No. 2016-08 provides additional guidance for revenue transactions that involve a third party in providing goods or services to a customer. The reporting entity must determine if the obligation to the customer is to provide the goods or services, i.e., as the principal, or to arrange for a third party to provide the goods or services, i.e., as the agent. In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing, which amends ASU 2014-09. ASU No. 2016-10 clarifies that goods or services that are immaterial in the context of the contract are not required to be identified as separate performance obligations. In addition, the ASU provides an accounting policy election to treat shipping and handling activities as a fulfillment cost and not part of the revenue transaction. The ASU also provides guidance regarding licensing arrangements to determine whether the license grants the right to use functional or symbolic intellectual property. Revenue for licenses of functional intellectual property, such as software, is generally recognized at a point in time, while revenue for licenses of symbolic intellectual property, such as tradenames, is generally recognized over time. In May 2016, the FASB issued ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients, which amends ASU 2014-09. This ASU clarifies the requirement to assess collectability of contract consideration, clarifies the treatment of noncash consideration and provides a policy election to exclude from revenue amounts collected from customers for sales and similar taxes. The adoption will use one of two retrospective application methods. The Company plans to adopt the ASU effective the first quarter of fiscal year 2019 and is evaluating the potential effects on the consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, which amends ASC 718, Compensation - Stock Compensation. This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Therefore, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The total compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The effective date will be the first quarter of fiscal year 2017. The adoption will not have a material effect on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which amends ASC 835-30, Interest - Imputation of Interest. This ASU requires that debt issuance costs related to borrowings be presented in the balance sheet as a direct deduction from the carrying amount of the borrowing. This treatment is consistent with debt discounts. The ASU does not affect the amount or timing of expenses for debt issuance costs. The effective date will be the first quarter of fiscal year 2017 and will be applied retrospectively. The adoption will not have a material effect on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which amends ASC 350-40, Intangibles-Goodwill and Other-Internal-Use Software. This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If an arrangement includes a software license, the accounting for the license will be consistent with licenses of other intangible assets. If the arrangement does not include a license, the arrangement will be accounted for as a service contract. The effective date will be the first quarter of fiscal year 2017 and will be adopted prospectively. The adoption will not have a material effect on the Company’s consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-09, Disclosures about Short-Duration Contracts, which amends ASC 944, Financial Services - Insurance. This ASU requires disclosure of additional information about unpaid claims and claims adjustment expenses, including a rollforward of the liability of the claims adjustment liability. The effective date will be the fourth quarter of fiscal year 2017. The adoption will not have a material effect on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which amends ASC 330, Inventory. This ASU simplifies the subsequent measurement of inventory by using only the lower of cost or net realizable value. The ASU does not apply to inventory measured using last-in, first-out method. The effective date will be the first quarter of fiscal year 2018 with early adoption permitted. The adoption will not have a material effect on the Company’s consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which amends ASC 835-30, Interest - Imputation of Interest. This ASU clarifies the presentation and subsequent measurement of debt issuance costs associated with lines of credit. These costs may be presented as an asset and amortized ratably over the term of the line of credit arrangement, regardless of whether there are outstanding borrowings on the arrangement. The effective date will be the first quarter of fiscal year 2017 and will be applied retrospectively. The adoption will not have a material effect on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends ASC 825-10, Financial Instruments - Overall. This ASU changes the treatment for available for sale equity investments by recognizing unrealized fair value changes directly in net income, and no longer in other comprehensive income. In addition, the impairment assessment of equity securities without readily determinable fair values is simplified by allowing a qualitative assessment. The ASU eliminates the disclosure requirement of methods and assumptions used to estimate fair value for financial instruments measured at amortized cost on the balance sheet. Additional disclosure of financial assets and financial liabilities by measurement category and form is also required. The effective date will be the first quarter of fiscal year 2019. Early adoption of the provisions affecting the Company is not permitted. The amendment will be adopted with a cumulative-effect adjustment to the balance sheet in the year of adoption. The Company is evaluating the potential effects on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. The ASU’s primary change is the requirement for lessee entities to recognize a lease liability for payments and a right of use asset representing the right to use the leased asset during the term on operating lease arrangements. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. Lessors’ accounting under the ASU is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach. The effective date will be the first quarter of fiscal year 2020 with early adoption permitted. The Company is evaluating the potential effects on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting, which amends ASC 323 Investments - Equity Method and Joint Ventures. This ASU eliminates the requirement to retroactively restate the investment, results of operations and retained earnings on a step by step basis when an investment qualifies for use of the equity method as a result of an increase in ownership or degree of influence. The ASU requires that the equity method investor add the cost of acquiring the additional ownership interest to the current basis of the entity’s previously held interest and adopt the equity method of accounting as of that date. The effective date will be the first quarter of fiscal year 2018, with early adoption permitted, and will be adopted prospectively. The adoption will not have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC 718, Compensation - Stock Compensation. This ASU simplifies the treatment of share based payment transactions by recognizing the impact of excess tax benefits or deficiencies related to exercised or vested awards in income tax expense in the period of exercise or vesting. The ASU also modifies the diluted earnings per share calculation using the treasury stock method by eliminating the excess tax benefits or deficiencies from the calculation. These changes will be recognized prospectively. The presentation of excess tax benefits in the statement of consolidated cash flows is also modified to be included with other income tax cash flows as an operating activity. The change can be adopted using a prospective or retrospective transition method. The ASU also provides an accounting policy election to account for award forfeitures in compensation cost when the forfeitures occur. The requirement for an award to qualify for equity classification was also modified by the ASU to permit withholding up to maximum statutory tax rates in the applicable jurisdictions. The modification regarding award forfeitures and withholding rates are adopted by a cumulative effect adjustment to equity at the beginning of the period adopted. The ASU clarifies that cash paid by an employer when directly withholding shares for tax withholding purposes should be presented as a financing activity in the statement of consolidated cash flows and should be applied retrospectively. The effective date will be the first quarter of fiscal year 2018, with early adoption permitted. The Company is evaluating the potential effects on the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which establishes ASC 326, Financial Instruments - Credit Losses. This ASU requires that financial assets measured at amortized cost be presented at the net amount to be collected. To determine this amount, the ASU revises the measurement of credit losses from an incurred loss methodology to an expected loss methodology that requires consideration of historical information and supportable forecasts to determine credit loss estimates. The ASU affects trade receivables, debt securities, net investment in leases and most other financial assets that represent a right to receive cash. The treatment for available for sale debt securities is also modified by presenting credit losses as an allowance rather than as a write-down. Additional disclosures about significant estimates and credit quality are also required. The effective date will be the first quarter of fiscal year 2021, with early adoption permitted beginning in fiscal year 2020. The ASU will be adopted using a modified-retrospective approach. The Company is evaluating the potential effects on the consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which amends ASC 230, Statement of Cash Flows. This ASU provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists. The effective date will be the first quarter of fiscal year 2019, with early adoption permitted. The ASU should be adopted using a retrospective transition approach. The adoption will not have a material effect on the Company’s consolidated financial statements.

OTHER COMPREHENSIVE INCOME ITEM

OTHER COMPREHENSIVE INCOME ITEMS	9 Months Ended
	Jul. 31, 2016
OTHER COMPREHENSIVE INCOME ITEMS
OTHER COMPREHENSIVE INCOME ITEMS	(4)     The after-tax changes in accumulated other comprehensive income (loss) in millions of dollars follow: Total Unrealized Unrealized Accumulated Retirement Cumulative Gain (Loss) Gain (Loss) Other Benefits Translation on on Comprehensive Adjustment Adjustment Derivatives Investments Income (Loss) Balance October 31, 2014 $ $ $ $ Other comprehensive income (loss) items before reclassification $ Amounts reclassified from accumulated other comprehensive income Net current period other comprehensive income (loss) Balance July 31, 2015 $ $ $ $ $ Balance October 31, 2015 $ $ $ $ $ Other comprehensive income (loss) items before reclassification Amounts reclassified from accumulated other comprehensive income Net current period other comprehensive income (loss) Balance July 31, 2016 $ $ $ $ $ Following are amounts recorded in and reclassifications out of other comprehensive income (loss), and the income tax effects, in millions of dollars: Before Tax After Tax (Expense) Tax Three Months Ended July 31, 2016 Amount Credit Amount Cumulative translation adjustment $ $ $ Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense Net unrealized gain (loss) on derivatives Unrealized gain (loss) on investments: Unrealized holding gain (loss) Reclassification of realized (gain) loss – Other income Net unrealized gain (loss) on investments Retirement benefits adjustment: Pensions Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Settlements/curtailments Health care and life insurance Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Net unrealized gain (loss) on retirement benefits adjustments Total other comprehensive income (loss) $ $ $ *   These accumulated other comprehensive income amounts are included in net periodic postretirement costs. See Note 7 for additional detail. Before Tax After Tax (Expense) Tax Nine Months Ended July 31, 2016 Amount Credit Amount Cumulative translation adjustment $ $ Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) $ Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense Foreign exchange contracts – Other operating expense Net unrealized gain (loss) on derivatives Unrealized gain (loss) on investments: Unrealized holding gain (loss) Reclassification of realized (gain) loss – Other income Net unrealized gain (loss) on investments Retirement benefits adjustment: Pensions Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Settlements/curtailments Health care and life insurance Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Net unrealized gain (loss) on retirement benefits adjustments Total other comprehensive income (loss) $ $ $ *   These accumulated other comprehensive income amounts are included in net periodic postretirement costs. See Note 7 for additional detail. Before Tax After Tax (Expense) Tax Three Months Ended July 31, 2015 Amount Credit Amount Cumulative translation adjustment $ $ $ Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense Foreign exchange contracts – Other operating expense Net unrealized gain (loss) on derivatives Unrealized gain (loss) on investments: Unrealized holding gain (loss) Reclassification of realized (gain) loss – Other income Net unrealized gain (loss) on investments Retirement benefits adjustment: Pensions Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Settlements/curtailments Health care and life insurance Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Net unrealized gain (loss) on retirement benefits adjustments Total other comprehensive income (loss) $ $ $ *   These accumulated other comprehensive income amounts are included in net periodic postretirement costs. See Note 7 for additional detail. In the third quarter of 2016 and 2015, the noncontrolling interests’ comprehensive income (loss) was $(.2) million and none , respectively, which consisted of net income (loss) of $(.2) million and $.1 million and cumulative translation adjustments of none and $(.1) million, respectively. Before Tax After Tax (Expense) Tax Nine Months Ended July 31, 2015 Amount Credit Amount Cumulative translation adjustment $ $ $ Unrealized gain (loss) on derivatives: Unrealized hedging (loss) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense Foreign exchange contracts – Other operating expense Net unrealized gain (loss) on derivatives Unrealized gain (loss) on investments: Unrealized holding gain (loss) Reclassification of realized (gain) loss – Other income Net unrealized gain (loss) on investments Retirement benefits adjustment: Pensions Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Settlements/curtailments Health care and life insurance Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Net unrealized gain (loss) on retirement benefits adjustments Total other comprehensive income (loss) $ $ $ *   These accumulated other comprehensive income amounts are included in net periodic postretirement costs. See Note 7 for additional detail. In the first nine months of 2016 and 2015, the noncontrolling interests’ comprehensive income (loss) was $(1.5) million and $.2 million, respectively, which consisted of net income (loss) of $(1.6) million and $.6 million and cumulative translation adjustments of $.1 million and $(.4) million, respectively.

DIVIDENDS DECLARED AND PAID

DIVIDENDS DECLARED AND PAID	9 Months Ended
	Jul. 31, 2016
DIVIDENDS DECLARED AND PAID
DIVIDENDS DECLARED AND PAID	(5)     Dividends declared and paid on a per share basis were as follows: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Dividends declared $ .60 $ .60 $ $ Dividends paid $ .60 $ .60 $ $

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Jul. 31, 2016
EARNINGS PER SHARE
EARNINGS PER SHARE	(6)     A reconciliation of basic and diluted net income per share attributable to Deere & Company follows in millions , except per share amounts: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Net income attributable to Deere & Company $ $ $ $ Less income allocable to participating securities .3 .2 .6 .6 Income allocable to common stock $ $ $ $ Average shares outstanding Basic per share $ $ $ $ Average shares outstanding Effect of dilutive share-based compensation Total potential shares outstanding Diluted per share $ $ $ $ During the third quarter and first nine months of 2016, 11.9 million shares in both periods were excluded from the computation because the incremental shares under the treasury stock method would have been antidilutive. For both periods of 2015 , all stock options outstanding were included in the above per share computation.

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	9 Months Ended
	Jul. 31, 2016
PENSION AND OTHER POSTRETIREMENT BENEFITS
PENSION AND OTHER POSTRETIREMENT BENEFITS	(7)     The Company has several defined benefit pension plans and defined postretirement health care and life insurance plans covering its U.S. employees and employees in certain foreign countries. The worldwide components of net periodic pension cost consisted of the following in millions of dollars: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of actuarial loss Amortization of prior service cost Settlements/curtailments Net cost $ $ $ $ The worldwide components of net periodic postretirement benefits cost (health care and life insurance) consisted of the following in millions of dollars: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of actuarial loss Amortization of prior service credit Net cost $ $ $ $ During the first nine months of 2016, the Company contributed approximately $64 million to its pension plans and $24 million to its other postretirement benefit plans. The Company presently anticipates contributing an additional $16 million to its pension plans and $2 million to its other postretirement benefit plans during the remainder of fiscal year 2016. These contributions include payments from Company funds to either increase plan assets or make direct payments to plan participants. Beginning in 2016, the Company changed the method used to estimate the service and interest cost components of the net periodic pension and other postretirement benefit costs. The new method uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve used to determine the benefit obligations to relevant projected cash outflows. Previously, those costs were determined using a single weighted-average discount rate. The change does not affect the measurement of the total benefit obligations as the change in service and interest costs offsets in the actuarial gains and losses recorded in other comprehensive income. The new method provides a more precise measure of interest and service costs by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. The Company accounted for this change as a change in estimate prospectively beginning in the first quarter of 2016. The discount rates used to measure the 2016 service costs are 4.3 percent and 5.0 percent for pension and other postretirement employee benefit obligations (OPEB), respectively. The discount rates used to measure the 2016 interest costs are 3.4 percent and 3.5 percent for pension and OPEB, respectively. The previous method would have used a discount rate for both service and interest costs of 4.1 percent for pension and 4.3 percent for OPEB. The decrease in the fiscal year 2016 service and interest costs is approximately $175 million compared to the previous method.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Jul. 31, 2016
INCOME TAXES
INCOME TAXES	(8)     The Company’s unrecognized tax benefits at July 31, 2016 were $192 million, compared to $229 million at October 31, 2015. The liability at July 31, 2016 consisted of approximately $72 million, which would affect the effective tax rate if it was recognized. The remaining liability was related to tax positions for which there are offsetting tax receivables, or the uncertainty was only related to timing. The changes in the unrecognized tax benefits for the first nine months of 2016 were not significant. The Company expects that any reasonably possible change in the amounts of unrecognized tax benefits in the next 12 months would not be significant.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Jul. 31, 2016
SEGMENT REPORTING
SEGMENT REPORTING	(9)     Worldwide net sales and revenues, operating profit and identifiable assets by segment in millions of dollars follow: Three Months Ended July 31 Nine Months Ended July 31 % % 2016 2015 Change 2016 2015 Change Net sales and revenues: Agriculture and turf $ $ -11 $ $ -7 Construction and forestry -24 -21 Total net sales -14 -11 Financial services +5 +1 Other revenues +66 +18 Total net sales and revenues $ $ -11 $ $ -9 Operating profit: * Agriculture and turf $ $ +21 $ $ -4 Construction and forestry -58 -58 Financial services -20 -26 Total operating profit -3 -20 Reconciling items ** +15 +7 Income taxes -6 -24 Net income attributable to Deere & Company $ $ -4 $ $ -22 Intersegment sales and revenues: Agriculture and turf net sales $ $ -58 $ $ -43 Construction and forestry net sales Financial services -13 +8 Equipment operations outside the U.S. and Canada: Net sales $ $ -12 $ $ -7 Operating profit -1 -12 July 31 October 31 2016 2015 Identifiable assets: Agriculture and turf $ $ +3 Construction and forestry -6 Financial services +2 Corporate -3 Total assets $ $ +1 *   Operating profit is income from continuing operations before corporate expenses, certain external interest expense, certain foreign exchange gains and losses and income taxes. Operating profit of the financial services segment includes the effect of interest expense and foreign exchange gains and losses. **   Reconciling items are primarily corporate expenses, certain external interest expense, certain foreign exchange gains and losses and net income attributable to noncontrolling interests.

FINANCING RECEIVABLES

FINANCING RECEIVABLES	9 Months Ended
	Jul. 31, 2016
FINANCING RECEIVABLES
FINANCING RECEIVABLES	(10)     Past due balances of financing receivables still accruing finance income represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. Non-performing financing receivables represent loans for which the Company has ceased accruing finance income. These receivables are generally 120 days delinquent and the estimated uncollectible amount, after charging the dealer’s withholding account, if any, has been written off to the allowance for credit losses. Finance income for non-performing receivables is recognized on a cash basis. Accrual of finance income is generally resumed when the receivable becomes contractually current and collections are reasonably assured. An age analysis of past due financing receivables that are still accruing interest and non-performing financing receivables in millions of dollars follows: July 31, 2016 90 Days 30-59 Days 60-89 Days or Greater Total Past Due Past Due Past Due Past Due Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ $ Total Total Total Financing Past Due Non-Performing Current Receivables Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ Less allowance for credit losses Total financing receivables - net $ October 31, 2015 90 Days 30-59 Days 60-89 Days or Greater Total Past Due Past Due Past Due Past Due Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ $ Total Total Total Financing Past Due Non-Performing Current Receivables Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ Less allowance for credit losses Total financing receivables - net $ July 31, 2015 90 Days 30-59 Days 60-89 Days or Greater Total Past Due Past Due Past Due Past Due Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ $ Total Total Total Financing Past Due Non-Performing Current Receivables Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ Less allowance for credit losses Total financing receivables - net $ An analysis of the allowance for credit losses and investment in financing receivables in millions of dollars during the periods follows: Three Months Ended July 31, 2016 Revolving Retail Charge Notes Accounts Other Total Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries Translation adjustments End of period balance * $ $ $ $ Nine Months Ended July 31, 2016 Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries Translation adjustments End of period balance * $ $ $ $ Financing receivables: End of period balance $ $ $ $ Balance individually evaluated ** $ $ $ $ Three Months Ended July 31, 2015 Revolving Retail Charge Notes Accounts Other Total Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries Translation adjustments End of period balance * $ $ $ $ Nine Months Ended July 31, 2015 Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries Translation adjustments End of period balance * $ $ $ $ Financing receivables: End of period balance $ $ $ $ Balance individually evaluated ** $ $ $ $ *   Individual allowances were not significant. **   Remainder is collectively evaluated. Financing receivables are considered impaired when it is probable the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, or have provided bankruptcy notification, or require significant collection efforts. Receivables that are impaired are generally classified as non-performing. An analysis of the impaired financing receivables in millions of dollars follows: Unpaid Average Recorded Principal Specific Recorded Investment Balance Allowance Investment July 31, 2016* Receivables with specific allowance ** $ $ $ $ Receivables without a specific allowance *** Total $ $ $ $ Agriculture and turf $ $ $ $ Construction and forestry $ $ $ October 31, 2015* Receivables with specific allowance ** $ $ $ $ Receivables without a specific allowance *** Total $ $ $ $ Agriculture and turf $ $ $ $ Construction and forestry $ $ $ July 31, 2015* Receivables with specific allowance ** $ $ $ $ Receivables without a specific allowance *** Total $ $ $ $ Agriculture and turf $ $ $ $ Construction and forestry $ $ $ *     Finance income recognized was not material. **   Primarily retail notes. *** Primarily retail notes and wholesale receivables. A troubled debt restructuring is generally the modification of debt in which a creditor grants a concession it would not otherwise consider to a debtor that is experiencing financial difficulties. These modifications may include a reduction of the stated interest rate, an extension of the maturity dates, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest. During the first nine months of 2016, the Company identified 67 financing receivable contracts, primarily wholesale receivables, as troubled debt restructurings with aggregate balances of $9.0 million pre-modification and $8.4 million post-modification. During the first nine months of 2015, there were 76 financing receivable contracts, primarily retail notes, identified as troubled debt restructurings with aggregate balances of $2.2 million pre-modification and $1.7 million post-modification. During these same periods, there were no significant troubled debt restructurings that subsequently defaulted and were written off. At July 31, 2016, the Company had commitments to lend approximately $23 million to borrowers whose accounts were modified in troubled debt restructurings.

SECURITIZATION OF FINANCING REC

SECURITIZATION OF FINANCING RECEIVABLES	9 Months Ended
	Jul. 31, 2016
SECURITIZATION OF FINANCING RECEIVABLES
SECURITIZATION OF FINANCING RECEIVABLES	(11)     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), or non-VIE banking operations, as part of its asset-backed securities programs (securitizations). The structure of these transactions is such that the transfer of the retail notes does 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 Company’s consolidated statements because the assets they hold are legally isolated. Use of the assets held by the SPEs or the non-VIEs is restricted by terms of the documents governing the securitization transactions. In securitizations of retail notes related to secured borrowings, the retail notes are transferred to certain SPEs or to non-VIE banking operations, which in turn issue debt to investors. The resulting secured borrowings are recorded as “Short-term securitization borrowings” on the balance sheet. The securitized retail notes are recorded as “Financing receivables securitized – net” on the balance sheet. The total restricted assets on the balance sheet related to these securitizations include the financing receivables securitized less an allowance for credit losses, and other assets primarily representing restricted cash. For those securitizations in which retail notes are transferred into SPEs, the SPEs supporting the secured borrowings are consolidated unless the Company does not have both the power to direct the activities that most significantly impact the SPEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the SPEs. No additional support to these SPEs beyond what was previously contractually required has been provided during the reporting periods. In certain securitizations, the Company consolidates the SPEs since it has both the power to direct the activities that most significantly impact the SPEs’ economic performance through its role as servicer of all the receivables held by the SPEs, and the obligation through variable interests in the SPEs to absorb losses or receive benefits that could potentially be significant to the SPEs. The restricted assets (retail notes securitized, allowance for credit losses and other assets) of the consolidated SPEs totaled $3,211 million, $3,006 million and $2,639 million at July 31, 2016, October 31, 2015 and July 31, 2015, respectively. The liabilities (short-term securitization borrowings and accrued interest) of these SPEs totaled $3,100 million, $2,743 million and $2,534 million at July 31, 2016, October 31, 2015 and July 31, 2015, respectively. In the fourth quarter of 2015, as part of a receivable transfer, the company retained $228 million of securitization borrowings, with no balance at July 31, 2016 and $189 million at October 31, 2015. This amount is not shown as a liability above as the borrowing is not outstanding to a third party. The credit holders of these SPEs do not have legal recourse to the Company’s general credit. In certain securitizations, the Company transfers retail notes to non-VIE banking operations, which are not consolidated since the Company does not have a controlling interest in the entities. The Company’s carrying values and interests related to the securitizations with the unconsolidated non-VIEs were restricted assets (retail notes securitized, allowance for credit losses and other assets) of $753 million, $249 million and $284 million at July 31, 2016, October 31, 2015 and July 31, 2015, respectively. The liabilities (short-term securitization borrowings and accrued interest) were $692 million, $238 million and $265 million at July 31, 2016, October 31, 2015 and July 31, 2015, respectively. In certain securitizations, the Company transfers retail notes into bank-sponsored, multi-seller, commercial paper conduits, which are SPEs that are not consolidated. The Company does not service a significant portion of the conduits’ receivables, and, therefore, does not have the power to direct the activities that most significantly impact the conduits’ economic performance. 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 Company’s carrying values and variable interests related to these conduits were restricted assets (retail notes securitized, allowance for credit losses and other assets) of $2,113 million, $1,689 million and $1,923 million at July 31, 2016, October 31, 2015 and July 31, 2015, respectively. The liabilities (short-term securitization borrowings and accrued interest) related to these conduits were $1,940 million, $1,611 million and $1,798 million at July 31, 2016, October 31, 2015 and July 31, 2015, respectively. The Company’s carrying amount of the liabilities to the unconsolidated conduits, compared to the maximum exposure to loss related to these conduits, which would only be incurred in the event of a complete loss on the restricted assets, was as follows in millions of dollars: July 31, 2016 Carrying value of liabilities $ Maximum exposure to loss The total assets of unconsolidated VIEs related to securitizations were approximately $46 billion at July 31, 2016. The components of consolidated restricted assets related to secured borrowings in securitization transactions follow in millions of dollars: July 31 October 31 July 31 2016 2015 2015 Financing receivables securitized (retail notes) $ $ $ Allowance for credit losses Other assets Total restricted securitized assets $ $ $ The components of consolidated secured borrowings and other liabilities related to securitizations follow in millions of dollars: July 31 October 31 July 31 2016 2015 2015 Short-term securitization borrowings $ $ $ Accrued interest on borrowings Total liabilities related to restricted securitized assets $ $ $ The secured borrowings related to these restricted securitized retail notes are obligations that are payable as the retail notes are liquidated. Repayment of the secured borrowings depends primarily on cash flows generated by the restricted assets. Due to the Company’s short-term credit rating, cash collections from these restricted assets are not required to be placed into a restricted collection account until immediately prior to the time payment is required to the secured creditors. At July 31, 2016, the maximum remaining term of all restricted securitized retail notes was approximately seven years.

INVENTORIES

INVENTORIES	9 Months Ended
	Jul. 31, 2016
INVENTORIES
INVENTORIES	(12)     Most inventories owned by Deere & Company and its U.S. equipment subsidiaries and certain foreign equipment subsidiaries are valued at cost on the “last-in, first-out” (LIFO) method. If all of the Company’s inventories had been valued on a “first-in, first-out” (FIFO) method, estimated inventories by major classification in millions of dollars would have been as follows: July 31 October 31 July 31 2016 2015 2015 Raw materials and supplies $ $ $ Work-in-process Finished goods and parts Total FIFO value Less adjustment to LIFO value Inventories $ $ $

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS-NET	9 Months Ended
	Jul. 31, 2016
GOODWILL AND OTHER INTANGIBLE ASSETS-NET
GOODWILL AND OTHER INTANGIBLE ASSETS-NET	(13)     The changes in amounts of goodwill by operating segments were as follows in millions of dollars: Agriculture Construction and Turf and Forestry Total Goodwill at October 31, 2014 $ $ $ Translation adjustments Goodwill at July 31, 2015 $ $ $ Goodwill at October 31, 2015 $ $ $ Acquisitions * Translation adjustments Goodwill at July 31, 2016 $ $ $ *   See Note 18. There were no accumulated impairment losses in the reported periods. The components of other intangible assets were as follows in millions of dollars: Useful Lives * July 31 October 31 July 31 (Years) 2016 2015 2015 Amortized intangible assets: Customer lists and relationships 11 $ $ $ Technology, patents, trademarks and other 15 Total at cost Less accumulated amortization ** Other intangible assets - net $ $ $ *     Weighted - averages **   Accumulated amortization at July 31, 2016, October 31, 2015 and July 31, 2015 for customer lists and relationships totaled $11 million for each period and technology, patents, trademarks and other totaled $54 million, $45 million and $42 million, respectively. The amortization of other intangible assets in the third quarter and the first nine months of 2016 was $5 million and $11 million and for 2015 was $3 million and $8 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: remainder of 2016 - $5 , 2017 - $18 , 2018 - $18 , 2019 - $14 and 2020 - $13 .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jul. 31, 2016
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	(14)     Commitments and contingencies: The Company generally determines its total 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 extended warranties are primarily recognized in income in proportion to the costs expected to be incurred over the contract period. These unamortized extended warranty premiums (deferred revenue) included in the following table totaled $438 million and $439 million at July 31, 2016 and 2015, respectively. A reconciliation of the changes in the warranty liability and unearned premiums in millions of dollars follows: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Beginning of period balance $ $ $ $ Payments Amortization of premiums received Accruals for warranties Premiums received Foreign exchange End of period balance $ $ $ $ At July 31, 2016, the Company had approximately $160 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 July 31, 2016, the Company had accrued losses of approximately $5 million under these agreements. The maximum remaining term of the receivables guaranteed at July 31, 2016 was approximately five years. At July 31, 2016, the Company had commitments of approximately $260 million for the construction and acquisition of property and equipment. Also, at July 31, 2016, the Company had restricted assets of $99 million, primarily as collateral for borrowings and restricted other assets. See Note 11 for additional restricted assets associated with borrowings related to securitizations. The Company also had other miscellaneous contingent liabilities totaling approximately $30 million at July 31, 2016, for which it believes the probability for payment is substantially remote. The accrued liability for these contingencies was not material at July 31, 2016. The Company is subject to various unresolved legal actions which arise in the normal course of its business, the most prevalent of which relate to product liability (including asbestos related liability), retail credit, software licensing, patent, trademark and environmental matters. The Company believes the reasonably possible range of losses for these unresolved legal actions in addition to the amounts accrued would not have a material effect on its consolidated financial statements.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Jul. 31, 2016
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	(15)     To determine fair value, the Company uses various methods including market and income approaches. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes valuation models and techniques that maximize the use of observable inputs. The models are industry-standard models that consider various assumptions including time values and yield curves as well as other economic measures. These valuation techniques are consistently applied. Level 1 measurements consist of quoted prices in active markets for identical assets or liabilities. Level 2 measurements include significant other observable inputs such as quoted prices for similar assets or liabilities in active markets ; identical assets or liabilities in inactive markets; observable inputs such as interest rates and yield curves; and other market-corroborated inputs. Level 3 measurements include significant unobservable inputs. The fair values of financial instruments that do not approximate the carrying values in millions of dollars follow: July 31, 2016 October 31, 2015 July 31, 2015 Carrying Value Fair Value * Carrying Value Fair Value * Carrying Value Fair Value * Financing receivables - net $ $ $ $ $ $ Financing receivables securitized - net Short-term securitization borrowings Long-term borrowings due within one year: Equipment operations $ $ $ $ $ $ Financial services Total $ $ $ $ $ $ Long-term borrowings: Equipment operations $ $ $ $ $ $ Financial services Total $ $ $ $ $ $ *   Fair value measurements above were Level 3 for all financing receivables and Level 2 for all borrowings. Fair values of financing receivables that were issued long-term were based on the discounted values of their related cash flows at interest rates currently being offered by the Company for similar financing receivables. The fair values of the remaining financing receivables approximated the carrying amounts. Fair values of long-term borrowings and short-term securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or 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 included adjustments related to fair value hedges. Assets and liabilities measured at fair value on a recurring basis in millions of dollars follow: July 31 October 31 July 31 2016* 2015* 2015* Marketable securities International equity securities $ Equity fund $ $ Fixed income fund U.S. government debt securities Municipal debt securities Corporate debt securities International debt securities Mortgage-backed securities ** Total marketable securities Other assets Derivatives: Interest rate contracts Foreign exchange contracts Cross-currency interest rate contracts Total assets *** $ $ $ Accounts payable and accrued expenses Derivatives: Interest rate contracts $ $ $ Foreign exchange contracts Total liabilities $ $ $ *     M easurements above were Level 2 measurements except for Level 1 measurements of the international equity securities of $8 million at July 31, 2015; the equity fund of $48 million, $43 million and $35 million at July 31, 2016, October 31, 2015 and July 31, 2015, respectively; the fixed income fund of $9 million at July 31, 2016; and U.S. government debt securities of $47 million, $37 million and $37 million at July 31, 2016, October 31, 2015 and July 31, 2015, respectively. In addition, $34 million, $29 million and $31 million of the international debt securities were Level 3 measurements at July 31, 2016, October 31, 2015 and July 31, 2015. There were no transfers between Level 1 and Level 2 during the first nine months of 2016 or 2015. **   Primarily issued by U.S. government sponsored enterprises. *** Excluded from this table are the Company’s cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of money market funds that were Level 1 measurements. The contractual maturities of debt securities at July 31, 2016 in millions of dollars are shown below. Actual maturities may differ from those scheduled as a result of prepayments by the issuers. Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity. Amortized Fair Cost Value Due in one year or less $ $ Due after one through five years Due after five through 10 years Due after 10 years Mortgage-backed securities Debt securities $ $ Fair value, recurring, Level 3 measurements from available for sale marketable securities in millions of dollars follow: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Beginning of period balance $ $ Purchases $ $ Principal payments Change in unrealized gain (loss) End of period balance $ $ $ $ Fair value , nonrecurring , Level 3 measurements from impairments in millions of dollars follow: Fair Value * Losses Three Months Ended Nine Months Ended July 31 October 31 July 31 July 31 July 31 2016 2015 2015 2016 2015 2016 2015 Equipment on operating leases - net $ $ Property and equipment - net $ Other assets $ $ *   See financing receivables with specific allowances in Note 10. Losses were not significant. The following is a description of the valuation methodologies the Company uses to measure certain financial instruments on the balance sheet at fair value: Marketable Securities – The portfolio of investments, except for the Level 3 measurement international debt securities, is primarily valued on a market approach (matrix pricing model) in which all significant inputs are observable or can be derived from or corroborated by observable market data such as interest rates, yield curves, volatilities, credit risk and prepayment speeds. Funds are primarily valued using the fund’s net asset value, based on the fair value of the underlying securities. The Level 3 measurement international debt securities are primarily valued using an income approach based on discounted cash flows using yield curves derived from limited, observable market data. Derivatives – The Company’s derivative financial instruments consist of interest rate swaps and caps, foreign currency futures, forwards and swaps, and cross-currency interest rate swaps. The portfolio is valued based on an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates for currencies. Financing Receivables – Specific reserve impairments are based on the fair value of collateral, which is measured using a market approach (appraisal values or realizable values). Inputs include a selection of realizable values. Equipment on Operating Leases -Net – The impairments are based on an income approach (discounted cash flow), using the contractual payments, plus an estimate of equipment sale price at lease maturity. Inputs include realized sales values. Property and Equipment-Net – The impairments were measured at the lower of the carrying amount, or fair value. The valuations were based on an income approach using probability weighted cash flows of potential outcomes of the ongoing strategic option review. The inputs included estimates of the cash flow related to each of the alternatives being considered and management’s estimate of the likelihood of each alternative. Other Assets – The impairments are measured at the lower of the carrying amount or fair value. The valuations were based on a market approach. The inputs include sales of comparable assets.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Jul. 31, 2016
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	(16)     It is the Company’s 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 Company’s financial services 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 functional currencies. All derivatives are recorded at fair value on the balance sheet. Cash collateral received or paid is not offset against the derivative fair values 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. 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 derivative’s 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. Cash flow hedges Certain interest rate and cross-currency interest rate contracts (swaps) were designated as hedges of future cash flows from borrowings. The total notional amounts of the receive-variable/pay-fixed interest rate contracts at July 31, 2016 , October 31, 2015 and July 31, 2015 were $1,850 million, $2,800 million and $2,800 million, respectively . The notional amounts of cross-currency interest rate contracts at July 31, 2016 , October 31, 2015 and July 31, 2015 were $51 million, $60 million and $65 million, respectively. The effective portions of the fair value gains or losses on these cash flow hedges were recorded in other comprehensive income (OCI) and subsequently reclassified into interest expense or other operating expenses (foreign exchange) in the same periods during which the hedged transactions affected earnings. These amounts offset the effects of interest rate or foreign currency changes on the related borrowings. Any ineffective portions of the gains or losses on all cash flow interest rate contracts designated as hedges were recognized currently in interest expense or other operating expenses (foreign exchange) and were not material during any periods presented. The cash flows from these contracts were recorded in operating activities in the statement of consolidated cash flows. The amount of loss recorded in OCI at July 31, 2016 that is expected to be reclassified to interest expense or other operating expenses in the next twelve months if interest rates or exchange rates remain unchanged is approximately $2 million after-tax. These contracts mature in up to 29 months. There were no gains or losses reclassified from OCI to earnings based on the probability that the original forecasted transaction would not occur. Fair value hedges Certain interest rate contracts (swaps) were designated as fair value hedges of borrowings. The total notional amounts of these receive-fixed/pay-variable interest rate contracts at July 31, 2016, October 31, 2015 and July 31, 2015 were $9,551 million, $8,618 million and $8,694 million, respectively. The effective portions of the fair value gains or losses on these contracts were offset by fair value gains or losses on the hedged items (fixed-rate borrowings ). Any ineffective portions of the gains or losses were recognized currently in interest expense. The ineffective portions were a gain of $2 million and none during the third quarter of 2016 and 2015, respectively, and were gains of $1 million during the first nine months of 2016 and 2015. The cash flows from these contracts were recorded in operating activities in the statement of consolidated cash flows. The gains (losses) on these contracts and the underlying borrowings recorded in interest expense follow in millions of dollars: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Interest rate contracts * $ $ $ $ Borrowings ** *   Includes changes in fair values of interest rate contracts excluding net accrued interest income of $36 million and $42 million during the third quarter of 2016 and 2015, respectively, and $114 million and $131 million during the first nine months of 2016 and 2015, respectively. **   Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $75 million and $68 million during the third quarter of 2016 and 2015, respectively, and $217 million and $207 million during the first nine months of 2016 and 2015, respectively. Derivatives not designated as hedging instruments The Company has certain interest rate contracts (swaps and caps), foreign exchange contracts (futures, forwards and swaps) and cross-currency interest rate contracts (swaps), which were not formally designated as hedges. These derivatives were held as economic hedges for underlying interest rate or foreign currency exposures primarily for certain borrowings and purchases or sales of inventory. The total notional amounts of these interest rate swaps at July 31, 2016, October 31, 2015 and July 31, 2015 were $6,087 million, $6,333 million and $5,912 million, the foreign exchange contracts were $3,959 million, $3,160 million and $3,040 million and the cross-currency interest rate contracts were $64 million, $76 million and $80 million, respectively. At July 31, 2016, October 31, 2015 and July 31, 2015, there were also $667 million, $1,069 million and $1,190 million, respectively, of interest rate caps purchased and the same amounts sold at the same capped interest rate to facilitate borrowings through securitization of retail notes. The fair value gains or losses from the interest rate contracts were recognized currently in interest expense and the gains or losses from foreign exchange contracts in cost of sales or other operating expenses, generally offsetting over time the expenses on the exposures being hedged. The cash flows from these non-designated contracts were recorded in operating activities in the statement of consolidated cash flows. Fair values of derivative instruments in the condensed consolidated balance sheet in millions of dollars follow: July 31 October 31 July 31 Other Assets 2016 2015 2015 Designated as hedging instruments: Interest rate contracts $ $ $ Cross-currency interest rate contracts Total designated Not designated as hedging instruments: Interest rate contracts Foreign exchange contracts Cross-currency interest rate contracts Total not designated Total derivatives $ $ $ Accounts Payable and Accrued Expenses Designated as hedging instruments: Interest rate contracts $ $ $ Total designated Not designated as hedging instruments: Interest rate contracts Foreign exchange contracts Total not designated Total derivatives $ $ $ The classification and gains (losses) including accrued interest expense related to derivative instruments on the statement of consolidated income consisted of the following in millions of dollars: Expense or Three Months Ended Nine Months Ended OCI July 31 July 31 Classification 2016 2015 2016 2015 Fair Value Hedges: Interest rate contracts Interest $ $ $ $ Cash Flow Hedges : Recognized in OCI (Effective Portion): Interest rate contracts OCI (pretax) * Foreign exchange contracts OCI (pretax) * Reclassified from OCI (Effective Portion): Interest rate contracts Interest * Foreign exchange contracts Other operating * Recognized Directly in Income (Ineffective Portion) ** ** ** ** Not Designated as Hedges: Interest rate contracts Interest * $ $ $ $ Foreign exchange contracts Cost of sales Foreign exchange contracts Other operating * Total not designated $ $ $ $ *   Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts. **   The amount is not significant. Counterparty Risk and Collateral Certain of the Company’s derivative agreements contain credit support provisions that may require the Company to post collateral based on the size of the net liability positions and credit ratings. The aggregate fair value of all derivatives with credit risk related contingent features that were in a net liability position at July 31, 2016, October 31, 2015 and July 31, 2015, was $29 million, $41 million and $60 million, respectively. The Company, due to its credit rating and amounts of net liability position, has not posted any collateral. If the credit risk related contingent features were triggered, the Company would be required to post collateral up to an amount equal to this liability position, prior to considering applicable netting provisions. 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, the credit default swap spread of the counterparty and 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 credit support provisions. Each master agreement permits the net settlement of amounts owed in the event of default or termination. Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and any collateral received or paid in millions of dollars follows: Gross Amounts Netting Collateral July 31, 2016 Recognized Arrangements Received Net Amount Assets $ $ $ $ Liabilities Gross Amounts Netting Collateral October 31, 2015 Recognized Arrangements Received Net Amount Assets $ $ $ Liabilities Gross Amounts Netting Collateral July 31, 2015 Recognized Arrangements Received Net Amount Assets $ $ $ $ Liabilities

STOCK OPTION AND RESTRICTED STO

STOCK OPTION AND RESTRICTED STOCK AWARDS	9 Months Ended
	Jul. 31, 2016
STOCK OPTION AND RESTRICTED STOCK AWARDS
STOCK OPTION AND RESTRICTED STOCK AWARDS	(17)     In December 2015, the Company granted stock options to employees for the purchase of 3.5 million shares of common stock at an exercise price of $79.24 per share and a binomial lattice model fair value of $16.88 per share at the grant date. At July 31, 2016, options for 17.8 million shares were outstanding with a weighted-average exercise price of $78.32 per share. The Company also granted 255 thousand restricted stock units to employees and non-employee directors in the first nine months of 2016, of which 113 thousand are subject to service based only conditions, 71 thousand are subject to performance/service based conditions and 71 thousand are subject to market/service based conditions. The fair value of the service based only units at the grant date was $79.84 per unit based on the market price of a share of underlying common stock. The fair value of the performance/service based units at the grant date was $72.93 per unit based on the market price of a share of underlying common stock excluding dividends. The fair value of the market/service based units at the grant date was $103.66 per unit based on a lattice valuation model excluding dividends. At July 31, 2016, the Company was authorized to grant an additional 13.2 million shares related to stock option and restricted stock awards.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Jul. 31, 2016
ACQUISITIONS
ACQUISITIONS	(18)     In February 2016, the Company acquired Monosem for a cost of approximately $146 million, net of cash acquired of $20 million. Monosem, with four facilities in France and two in the U.S., is the European market leader in precision planters. The fair values assigned to the assets and liabilities related to the acquired entity in millions of dollars follow: Trade accounts and notes receivable - net $ Other receivables Inventories Property and equipment - net Goodwill Other intangible assets - net Other assets Total assets $ Accounts payable and accrued expenses $ Deferred tax liabilities Total liabilities $ The identifiable intangibles were primarily related to trade name, customer relationships and technology, which have a weighted average amortization period of 9 years. The goodwill is not expected to be deducted for tax purposes. In March 2016, the Company acquired an 80 percent interest in Hagie Manufacturing Company, LLC, the U.S. market leader in high-clearance sprayers located in Clarion, Iowa, for a cost of approximately $53 million, net of cash acquired of $3 million. The preliminary fair values assigned to the assets and liabilities related to the acquired entity in millions of dollars follow: Trade accounts and notes receivable - net $ Inventories Property and equipment - net Goodwill Other intangible assets - net Other assets Total assets $ Accounts payable and accrued expenses, and Total liabilities $ Redeemable noncontrolling interest $ The identifiable intangibles were primarily related to technology, trade name and customer relationships, which have a weighted average amortization period of 8 years. The goodwill is expected to be deducted for tax purposes. If certain events occur, the minority interest holder has the right to exercise a put option that would require the Company to purchase the holder’s membership interest. The Company also has a call option exercisable after a certain period of time. The put and call options cannot be separated from the noncontrolling interest. Due to the redemption features, the minority interest holder’s value is classified as a redeemable noncontrolling interest in the Company’s consolidated balance sheet. The goodwill in both transactions was the result of future cash flows and related fair values of the entities exceeding the fair value of the identified assets and liabilities. The results of both entities were included in the Company’s consolidated financial statements in the agriculture and turf segment since the dates of acquisition. The pro forma results of operations as if the acquisitions had occurred at the beginning of the current fiscal year would not differ significantly from the reported results .

DISTRIBUTION AND PARTIAL SALE O

DISTRIBUTION AND PARTIAL SALE OF INVESTMENT - SITEONE	9 Months Ended
	Jul. 31, 2016
DISTRIBUTION AND PARTIAL SALE OF INVESTMENT - SITEONE
DISTRIBUTION AND PARTIAL SALE OF INVESTMENT - SITEONE	(19)     In May 2016, the Company received a distribution of $60 million from SiteOne Landscapes, LLC (SiteOne) that reduced the Company’s investment in unconsolidated affiliates. The distribution included $4 million of a return on investment, which is shown in the Statement of Consolidated Cash Flows in undistributed earnings of unconsolidated affiliates in net cash provided by operating activities, and $56 million of a return of investment shown in other cash flows from investing activities. In May 2016, the Company also sold approximately 30 percent of its interest in SiteOne in an initial public offering and terminated a service agreement resulting in gross proceeds of approximately $81 million with a total gain of $75 million pretax or $47 million after-tax. The gain is recorded in other income. The Company retained an approximately 24 percent ownership interest in SiteOne.

DISPOSITION - CROP INSURANCE OP

DISPOSITION - CROP INSURANCE OPERATIONS	9 Months Ended
	Jul. 31, 2016
Crop Insurance Operations
Dispositions
DISPOSITION	(20)     In March 2015, the Company closed the sale of all of the stock of its wholly-owned subsidiaries, John Deere Insurance Company and John Deere Risk Protection, Inc. (collectively the Crop Insurance operations) to Farmers Mutual Hail Insurance Company of Iowa. These operations were included in the Company’s financial services operating segment. The total amount of proceeds from the sale was approximately $154 million, including $5 million of cash and cash equivalents sold, with a gain recorded in other income of $42 million pretax and $40 million after-tax. The tax expense was partially offset by a change in a valuation allowance on a capital loss carryforward. The Company provided certain business services for a fee during a transition period.

SUPPLEMENTAL CONSOLIDATING DATA

SUPPLEMENTAL CONSOLIDATING DATA	9 Months Ended
	Jul. 31, 2016
SUPPLEMENTAL CONSOLIDATING DATA
SUPPLEMENTAL CONSOLIDATING DATA	(21) SUPPLEMENTAL CONSOLIDATING DATA STATEMENT OF INCOME For the Three Months Ended July 31, 2016 and 2015 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2016 2015 2016 2015 Net Sales and Revenues Net sales $ $ Finance and interest income $ $ Other income Total Costs and Expenses Cost of sales Research and development expenses Selling, administrative and general expenses Interest expense Interest compensation to Financial Services Other operating expenses Total Income of Consolidated Group before Income Taxes Provision for income taxes Income of Consolidated Group Equity in Income of Unconsolidated Subsidiaries and Affiliates Financial Services .2 .2 Other Total .2 .2 Net Income Less: Net income (loss) attributable to noncontrolling interests (.2) .1 Net Income Attributable to Deere & Company $ $ $ $ *   Deere & Company with Financial Services on the equity basis. The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements. SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENT OF INCOME For the Nine Months Ended July 31, 2016 and 2015 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2016 2015 2016 2015 Net Sales and Revenues Net sales $ $ Finance and interest income $ $ Other income Total Costs and Expenses Cost of sales Research and development expenses Selling, administrative and general expenses Interest expense Interest compensation to Financial Services Other operating expenses Total Income of Consolidated Group before Income Taxes Provision for income taxes Income of Consolidated Group Equity in Income of Unconsolidated Subsidiaries and Affiliates Financial Services Other .8 Total Net Income Less: Net income (loss) attributable to noncontrolling interests .6 Net Income Attributable to Deere & Company $ $ $ $ *   Deere & Company with Financial Services on the equity basis. The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements. SUPPLEMENTAL CONSOLIDATING DATA (Continued) CONDENSED BALANCE SHEET (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES July 31 October 31 July 31 July 31 October 31 July 31 2016 2015 2015 2016 2015 2015 Assets Cash and cash equivalents $ $ $ $ $ $ Marketable securities Receivables from unconsolidated subsidiaries and affiliates Trade accounts and notes receivable - net Financing receivables - net .4 .9 Financing receivables securitized - net Other receivables Equipment on operating leases - net Inventories Property and equipment - net Investments in unconsolidated subsidiaries and affiliates Goodwill Other intangible assets - net Retirement benefits Deferred income taxes Other assets Total Assets $ $ $ $ $ $ Liabilities and Stockholders’ Equity Liabilities Short-term borrowings $ $ $ $ $ $ Short-term securitization borrowings Payables to unconsolidated subsidiaries and affiliates Accounts payable and accrued expenses Deferred income taxes Long-term borrowings Retirement benefits and other liabilities Total liabilities Commitments and contingencies (Note 14) Redeemable noncontrolling interest (Note 18) Stockholders’ Equity Common stock, $1 par value (issued shares at July 31, 2016 – 536,431,204) Common stock in treasury Retained earnings Accumulated other comprehensive income (loss) Total Deere & Company stockholders' equity Noncontrolling interests Total stockholders’ equity Total Liabilities and Stockholders’ Equity $ $ $ $ $ $ *   Deere & Company with Financial Services on the equity basis. The supplemental consolidating data is presented for informational purposes. Transactions between the "Equipment Operations" and "Financial Services" have been eliminated to arrive at the consolidated financial statements. SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENT OF CASH FLOWS For the Nine Months Ended July 31, 2016 and 2015 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2016 2015 2016 2015 Cash Flows from Operating Activities Net income $ $ $ $ Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses Provision for depreciation and amortization Impairment charges Undistributed earnings of unconsolidated subsidiaries and affiliates (.8) Provision (credit) for deferred income taxes Changes in assets and liabilities: Trade receivables Insurance receivables Inventories Accounts payable and accrued expenses Accrued income taxes payable/receivable Retirement benefits Other Net cash provided by operating activities Cash Flows from Investing Activities Collections of receivables (excluding trade and wholesale) Proceeds from maturities and sales of marketable securities Proceeds from sales of equipment on operating leases Proceeds from sales of business and unconsolidated affiliates, net of cash sold Cost of receivables acquired (excluding trade and wholesale) Purchases of marketable securities Purchases of property and equipment Cost of equipment on operating leases acquired Increase in trade and wholesale receivables Acquisitions of businesses, net of cash acquired Other Net cash provided by (used for) investing activities Cash Flows from Financing Activities Increase (decrease) in total short-term borrowings Change in intercompany receivables/payables Proceeds from long-term borrowings Payments of long-term borrowings Proceeds from issuance of common stock Repurchases of common stock Dividends paid Excess tax benefits from share-based compensation Other Net cash provided by (used for) financing activities Effect of Exchange Rate Changes on Cash and Cash Equivalents Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Period Cash and Cash Equivalents at End of Period $ $ $ $ *   Deere & Company with Financial Services on the equity basis. The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CASH FLOW INFORMATION (Policies)	9 Months Ended
	Jul. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CASH FLOW INFORMATION
Fiscal Period, Policy	The Company uses a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The third quarter ends for fiscal year 2016 and 2015 were July 31, 2016 and August 2, 2015, respectively. Both periods contained 13 weeks. For ease of presentation, the consolidated financial statements and notes continue to be dated July 31.
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.
Financing Receivables - Non-Performing, Policy	Past due balances of financing receivables still accruing finance income represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. Non-performing financing receivables represent loans for which the Company has ceased accruing finance income. These receivables are generally 120 days delinquent and the estimated uncollectible amount, after charging the dealer’s withholding account, if any, has been written off to the allowance for credit losses. Finance income for non-performing receivables is recognized on a cash basis. Accrual of finance income is generally resumed when the receivable becomes contractually current and collections are reasonably assured. Financing receivables are considered impaired when it is probable the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, or have provided bankruptcy notification, or require significant collection efforts. Receivables that are impaired are generally classified as non-performing.
Troubled Debt Restructuring, Policy	A troubled debt restructuring is generally the modification of debt in which a creditor grants a concession it would not otherwise consider to a debtor that is experiencing financial difficulties. These modifications may include a reduction of the stated interest rate, an extension of the maturity dates, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest.
Inventory Valuation, Policy	Most inventories owned by Deere & Company and its U.S. equipment subsidiaries and certain foreign equipment subsidiaries are valued at cost on the “last-in, first-out” (LIFO) method.
Product Warranties	The Company generally determines its total 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.
Extended Product Warranty, Policy	The premiums for extended warranties are primarily recognized in income in proportion to the costs expected to be incurred over the contract period.
Fair Value of Financial Instruments, Policy	To determine fair value, the Company uses various methods including market and income approaches. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes valuation models and techniques that maximize the use of observable inputs. The models are industry-standard models that consider various assumptions including time values and yield curves as well as other economic measures. These valuation techniques are consistently applied.
Derivative Financial Instruments	It is the Company’s 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 Company’s financial services 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 functional currencies. All derivatives are recorded at fair value on the balance sheet. Cash collateral received or paid is not offset against the derivative fair values 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. 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 derivative’s 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.

OTHER COMPREHENSIVE INCOME IT30

OTHER COMPREHENSIVE INCOME ITEMS (Tables)	9 Months Ended
	Jul. 31, 2016
OTHER COMPREHENSIVE INCOME ITEMS
Schedule of After-Tax Changes in Accumulated Other Comprehensive Income (Loss)	The after-tax changes in accumulated other comprehensive income (loss) in millions of dollars follow: Total Unrealized Unrealized Accumulated Retirement Cumulative Gain (Loss) Gain (Loss) Other Benefits Translation on on Comprehensive Adjustment Adjustment Derivatives Investments Income (Loss) Balance October 31, 2014 $ $ $ $ Other comprehensive income (loss) items before reclassification $ Amounts reclassified from accumulated other comprehensive income Net current period other comprehensive income (loss) Balance July 31, 2015 $ $ $ $ $ Balance October 31, 2015 $ $ $ $ $ Other comprehensive income (loss) items before reclassification Amounts reclassified from accumulated other comprehensive income Net current period other comprehensive income (loss) Balance July 31, 2016 $ $ $ $ $
Schedule of Amounts Recorded in and Reclassifications out of Other Comprehensive Income (Loss) and the Income Tax Effects	Following are amounts recorded in and reclassifications out of other comprehensive income (loss), and the income tax effects, in millions of dollars: Before Tax After Tax (Expense) Tax Three Months Ended July 31, 2016 Amount Credit Amount Cumulative translation adjustment $ $ $ Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense Net unrealized gain (loss) on derivatives Unrealized gain (loss) on investments: Unrealized holding gain (loss) Reclassification of realized (gain) loss – Other income Net unrealized gain (loss) on investments Retirement benefits adjustment: Pensions Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Settlements/curtailments Health care and life insurance Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Net unrealized gain (loss) on retirement benefits adjustments Total other comprehensive income (loss) $ $ $ *   These accumulated other comprehensive income amounts are included in net periodic postretirement costs. See Note 7 for additional detail. Before Tax After Tax (Expense) Tax Nine Months Ended July 31, 2016 Amount Credit Amount Cumulative translation adjustment $ $ Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) $ Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense Foreign exchange contracts – Other operating expense Net unrealized gain (loss) on derivatives Unrealized gain (loss) on investments: Unrealized holding gain (loss) Reclassification of realized (gain) loss – Other income Net unrealized gain (loss) on investments Retirement benefits adjustment: Pensions Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Settlements/curtailments Health care and life insurance Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Net unrealized gain (loss) on retirement benefits adjustments Total other comprehensive income (loss) $ $ $ *   These accumulated other comprehensive income amounts are included in net periodic postretirement costs. See Note 7 for additional detail. Before Tax After Tax (Expense) Tax Three Months Ended July 31, 2015 Amount Credit Amount Cumulative translation adjustment $ $ $ Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense Foreign exchange contracts – Other operating expense Net unrealized gain (loss) on derivatives Unrealized gain (loss) on investments: Unrealized holding gain (loss) Reclassification of realized (gain) loss – Other income Net unrealized gain (loss) on investments Retirement benefits adjustment: Pensions Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Settlements/curtailments Health care and life insurance Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Net unrealized gain (loss) on retirement benefits adjustments Total other comprehensive income (loss) $ $ $ *   These accumulated other comprehensive income amounts are included in net periodic postretirement costs. See Note 7 for additional detail. In the third quarter of 2016 and 2015, the noncontrolling interests’ comprehensive income (loss) was $(.2) million and none , respectively, which consisted of net income (loss) of $(.2) million and $.1 million and cumulative translation adjustments of none and $(.1) million, respectively. Before Tax After Tax (Expense) Tax Nine Months Ended July 31, 2015 Amount Credit Amount Cumulative translation adjustment $ $ $ Unrealized gain (loss) on derivatives: Unrealized hedging (loss) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense Foreign exchange contracts – Other operating expense Net unrealized gain (loss) on derivatives Unrealized gain (loss) on investments: Unrealized holding gain (loss) Reclassification of realized (gain) loss – Other income Net unrealized gain (loss) on investments Retirement benefits adjustment: Pensions Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Settlements/curtailments Health care and life insurance Net actuarial gain (loss) Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to net income: * Actuarial (gain) loss Prior service (credit) cost Net unrealized gain (loss) on retirement benefits adjustments Total other comprehensive income (loss) $ $ $ *   These accumulated other comprehensive income amounts are included in net periodic postretirement costs. See Note 7 for additional detail. In the first nine months of 2016 and 2015, the noncontrolling interests’ comprehensive income (loss) was $(1.5) million and $.2 million, respectively, which consisted of net income (loss) of $(1.6) million and $.6 million and cumulative translation adjustments of $.1 million and $(.4) million, respectively.

DIVIDENDS DECLARED AND PAID (Ta

DIVIDENDS DECLARED AND PAID (Tables)	9 Months Ended
	Jul. 31, 2016
DIVIDENDS DECLARED AND PAID
Dividends Declared and Paid	Dividends declared and paid on a per share basis were as follows: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Dividends declared $ .60 $ .60 $ $ Dividends paid $ .60 $ .60 $ $

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Jul. 31, 2016
EARNINGS PER SHARE
Reconciliation of Basic and Diluted Net Income Per Share	A reconciliation of basic and diluted net income per share attributable to Deere & Company follows in millions , except per share amounts: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Net income attributable to Deere & Company $ $ $ $ Less income allocable to participating securities .3 .2 .6 .6 Income allocable to common stock $ $ $ $ Average shares outstanding Basic per share $ $ $ $ Average shares outstanding Effect of dilutive share-based compensation Total potential shares outstanding Diluted per share $ $ $ $

PENSION AND OTHER POSTRETIREM33

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	9 Months Ended
	Jul. 31, 2016
PENSION AND OTHER POSTRETIREMENT BENEFITS
Components of Pension and Postretirement Benefit Costs	The worldwide components of net periodic pension cost consisted of the following in millions of dollars: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of actuarial loss Amortization of prior service cost Settlements/curtailments Net cost $ $ $ $ The worldwide components of net periodic postretirement benefits cost (health care and life insurance) consisted of the following in millions of dollars: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of actuarial loss Amortization of prior service credit Net cost $ $ $ $

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Jul. 31, 2016
SEGMENT REPORTING
Schedule of Segment Reporting Information	Worldwide net sales and revenues, operating profit and identifiable assets by segment in millions of dollars follow: Three Months Ended July 31 Nine Months Ended July 31 % % 2016 2015 Change 2016 2015 Change Net sales and revenues: Agriculture and turf $ $ -11 $ $ -7 Construction and forestry -24 -21 Total net sales -14 -11 Financial services +5 +1 Other revenues +66 +18 Total net sales and revenues $ $ -11 $ $ -9 Operating profit: * Agriculture and turf $ $ +21 $ $ -4 Construction and forestry -58 -58 Financial services -20 -26 Total operating profit -3 -20 Reconciling items ** +15 +7 Income taxes -6 -24 Net income attributable to Deere & Company $ $ -4 $ $ -22 Intersegment sales and revenues: Agriculture and turf net sales $ $ -58 $ $ -43 Construction and forestry net sales Financial services -13 +8 Equipment operations outside the U.S. and Canada: Net sales $ $ -12 $ $ -7 Operating profit -1 -12 July 31 October 31 2016 2015 Identifiable assets: Agriculture and turf $ $ +3 Construction and forestry -6 Financial services +2 Corporate -3 Total assets $ $ +1 *   Operating profit is income from continuing operations before corporate expenses, certain external interest expense, certain foreign exchange gains and losses and income taxes. Operating profit of the financial services segment includes the effect of interest expense and foreign exchange gains and losses. **   Reconciling items are primarily corporate expenses, certain external interest expense, certain foreign exchange gains and losses and net income attributable to noncontrolling interests.

FINANCING RECEIVABLES (Tables)

FINANCING RECEIVABLES (Tables)	9 Months Ended
	Jul. 31, 2016
FINANCING RECEIVABLES
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables	An age analysis of past due financing receivables that are still accruing interest and non-performing financing receivables in millions of dollars follows: July 31, 2016 90 Days 30-59 Days 60-89 Days or Greater Total Past Due Past Due Past Due Past Due Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ $ Total Total Total Financing Past Due Non-Performing Current Receivables Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ Less allowance for credit losses Total financing receivables - net $ October 31, 2015 90 Days 30-59 Days 60-89 Days or Greater Total Past Due Past Due Past Due Past Due Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ $ Total Total Total Financing Past Due Non-Performing Current Receivables Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ Less allowance for credit losses Total financing receivables - net $ July 31, 2015 90 Days 30-59 Days 60-89 Days or Greater Total Past Due Past Due Past Due Past Due Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ $ Total Total Total Financing Past Due Non-Performing Current Receivables Retail Notes: Agriculture and turf $ $ $ $ Construction and forestry Other: Agriculture and turf Construction and forestry Total $ $ $ Less allowance for credit losses Total financing receivables - net $
Analysis of the Allowance for Credit Losses and Investment in Financing Receivables	An analysis of the allowance for credit losses and investment in financing receivables in millions of dollars during the periods follows: Three Months Ended July 31, 2016 Revolving Retail Charge Notes Accounts Other Total Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries Translation adjustments End of period balance * $ $ $ $ Nine Months Ended July 31, 2016 Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries Translation adjustments End of period balance * $ $ $ $ Financing receivables: End of period balance $ $ $ $ Balance individually evaluated ** $ $ $ $ Three Months Ended July 31, 2015 Revolving Retail Charge Notes Accounts Other Total Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries Translation adjustments End of period balance * $ $ $ $ Nine Months Ended July 31, 2015 Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries Translation adjustments End of period balance * $ $ $ $ Financing receivables: End of period balance $ $ $ $ Balance individually evaluated ** $ $ $ $ *   Individual allowances were not significant. **   Remainder is collectively evaluated.
Analysis of the Impaired Financing Receivables	An analysis of the impaired financing receivables in millions of dollars follows: Unpaid Average Recorded Principal Specific Recorded Investment Balance Allowance Investment July 31, 2016* Receivables with specific allowance ** $ $ $ $ Receivables without a specific allowance *** Total $ $ $ $ Agriculture and turf $ $ $ $ Construction and forestry $ $ $ October 31, 2015* Receivables with specific allowance ** $ $ $ $ Receivables without a specific allowance *** Total $ $ $ $ Agriculture and turf $ $ $ $ Construction and forestry $ $ $ July 31, 2015* Receivables with specific allowance ** $ $ $ $ Receivables without a specific allowance *** Total $ $ $ $ Agriculture and turf $ $ $ $ Construction and forestry $ $ $ *     Finance income recognized was not material. **   Primarily retail notes. *** Primarily retail notes and wholesale receivables.

SECURITIZATION OF FINANCING R36

SECURITIZATION OF FINANCING RECEIVABLES (Tables)	9 Months Ended
	Jul. 31, 2016
SECURITIZATION OF FINANCING RECEIVABLES
Unconsolidated Conduits, Carrying Amount of Liabilities Compared to Maximum Exposure to Loss	The Company’s carrying amount of the liabilities to the unconsolidated conduits, compared to the maximum exposure to loss related to these conduits, which would only be incurred in the event of a complete loss on the restricted assets, was as follows in millions of dollars: July 31, 2016 Carrying value of liabilities $ Maximum exposure to loss
Components of Consolidated Restricted Assets, Secured Borrowings and Other Liabilities Related to Securitization Transactions	The components of consolidated restricted assets related to secured borrowings in securitization transactions follow in millions of dollars: July 31 October 31 July 31 2016 2015 2015 Financing receivables securitized (retail notes) $ $ $ Allowance for credit losses Other assets Total restricted securitized assets $ $ $ The components of consolidated secured borrowings and other liabilities related to securitizations follow in millions of dollars: July 31 October 31 July 31 2016 2015 2015 Short-term securitization borrowings $ $ $ Accrued interest on borrowings Total liabilities related to restricted securitized assets $ $ $

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Jul. 31, 2016
INVENTORIES
Major Classification of Inventories	Most inventories owned by Deere & Company and its U.S. equipment subsidiaries and certain foreign equipment subsidiaries are valued at cost on the “last-in, first-out” (LIFO) method. If all of the Company’s inventories had been valued on a “first-in, first-out” (FIFO) method, estimated inventories by major classification in millions of dollars would have been as follows: July 31 October 31 July 31 2016 2015 2015 Raw materials and supplies $ $ $ Work-in-process Finished goods and parts Total FIFO value Less adjustment to LIFO value Inventories $ $ $

GOODWILL AND OTHER INTANGIBLE38

GOODWILL AND OTHER INTANGIBLE ASSETS-NET (Tables)	9 Months Ended
	Jul. 31, 2016
GOODWILL AND OTHER INTANGIBLE ASSETS-NET
Changes in Goodwill by Operating Segments	The changes in amounts of goodwill by operating segments were as follows in millions of dollars: Agriculture Construction and Turf and Forestry Total Goodwill at October 31, 2014 $ $ $ Translation adjustments Goodwill at July 31, 2015 $ $ $ Goodwill at October 31, 2015 $ $ $ Acquisitions * Translation adjustments Goodwill at July 31, 2016 $ $ $ *   See Note 18.
Components of Other Intangible Assets	The components of other intangible assets were as follows in millions of dollars: Useful Lives * July 31 October 31 July 31 (Years) 2016 2015 2015 Amortized intangible assets: Customer lists and relationships 11 $ $ $ Technology, patents, trademarks and other 15 Total at cost Less accumulated amortization ** Other intangible assets - net $ $ $ *     Weighted - averages **   Accumulated amortization at July 31, 2016, October 31, 2015 and July 31, 2015 for customer lists and relationships totaled $11 million for each period and technology, patents, trademarks and other totaled $54 million, $45 million and $42 million, respectively.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Jul. 31, 2016
COMMITMENTS AND CONTINGENCIES
Reconciliation of the Changes in Warranty Liability and Unearned Premiums	A reconciliation of the changes in the warranty liability and unearned premiums in millions of dollars follows: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Beginning of period balance $ $ $ $ Payments Amortization of premiums received Accruals for warranties Premiums received Foreign exchange End of period balance $ $ $ $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Jul. 31, 2016
FAIR VALUE MEASUREMENTS
Fair Value of Financial Instruments	The fair values of financial instruments that do not approximate the carrying values in millions of dollars follow: July 31, 2016 October 31, 2015 July 31, 2015 Carrying Value Fair Value * Carrying Value Fair Value * Carrying Value Fair Value * Financing receivables - net $ $ $ $ $ $ Financing receivables securitized - net Short-term securitization borrowings Long-term borrowings due within one year: Equipment operations $ $ $ $ $ $ Financial services Total $ $ $ $ $ $ Long-term borrowings: Equipment operations $ $ $ $ $ $ Financial services Total $ $ $ $ $ $ *   Fair value measurements above were Level 3 for all financing receivables and Level 2 for all borrowings.
Assets and Liabilities Measured at Fair Value on a Recurring Basis	Assets and liabilities measured at fair value on a recurring basis in millions of dollars follow: July 31 October 31 July 31 2016* 2015* 2015* Marketable securities International equity securities $ Equity fund $ $ Fixed income fund U.S. government debt securities Municipal debt securities Corporate debt securities International debt securities Mortgage-backed securities ** Total marketable securities Other assets Derivatives: Interest rate contracts Foreign exchange contracts Cross-currency interest rate contracts Total assets *** $ $ $ Accounts payable and accrued expenses Derivatives: Interest rate contracts $ $ $ Foreign exchange contracts Total liabilities $ $ $ *     M easurements above were Level 2 measurements except for Level 1 measurements of the international equity securities of $8 million at July 31, 2015; the equity fund of $48 million, $43 million and $35 million at July 31, 2016, October 31, 2015 and July 31, 2015, respectively; the fixed income fund of $9 million at July 31, 2016; and U.S. government debt securities of $47 million, $37 million and $37 million at July 31, 2016, October 31, 2015 and July 31, 2015, respectively. In addition, $34 million, $29 million and $31 million of the international debt securities were Level 3 measurements at July 31, 2016, October 31, 2015 and July 31, 2015. There were no transfers between Level 1 and Level 2 during the first nine months of 2016 or 2015. **   Primarily issued by U.S. government sponsored enterprises. *** Excluded from this table are the Company’s cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of money market funds that were Level 1 measurements.
Contractual Maturities of Debt Securities	The contractual maturities of debt securities at July 31, 2016 in millions of dollars are shown below. Actual maturities may differ from those scheduled as a result of prepayments by the issuers. Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity. Amortized Fair Cost Value Due in one year or less $ $ Due after one through five years Due after five through 10 years Due after 10 years Mortgage-backed securities Debt securities $ $
Fair Value, Recurring, Level 3 Measurements	Fair value, recurring, Level 3 measurements from available for sale marketable securities in millions of dollars follow: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Beginning of period balance $ $ Purchases $ $ Principal payments Change in unrealized gain (loss) End of period balance $ $ $ $
Fair Value, Nonrecurring, Level 3 Measurements	Fair value , nonrecurring , Level 3 measurements from impairments in millions of dollars follow: Fair Value * Losses Three Months Ended Nine Months Ended July 31 October 31 July 31 July 31 July 31 2016 2015 2015 2016 2015 2016 2015 Equipment on operating leases - net $ $ Property and equipment - net $ Other assets $ $ *   See financing receivables with specific allowances in Note 10. Losses were not significant.

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Jul. 31, 2016
DERIVATIVE INSTRUMENTS
Fair Value Hedge Interest Rate Contracts and Underlying Borrowings	The gains (losses) on these contracts and the underlying borrowings recorded in interest expense follow in millions of dollars: Three Months Ended Nine Months Ended July 31 July 31 2016 2015 2016 2015 Interest rate contracts * $ $ $ $ Borrowings ** *   Includes changes in fair values of interest rate contracts excluding net accrued interest income of $36 million and $42 million during the third quarter of 2016 and 2015, respectively, and $114 million and $131 million during the first nine months of 2016 and 2015, respectively. **   Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $75 million and $68 million during the third quarter of 2016 and 2015, respectively, and $217 million and $207 million during the first nine months of 2016 and 2015, respectively.
Fair Value of Derivative Instruments in Consolidated Balance Sheet	Fair values of derivative instruments in the condensed consolidated balance sheet in millions of dollars follow: July 31 October 31 July 31 Other Assets 2016 2015 2015 Designated as hedging instruments: Interest rate contracts $ $ $ Cross-currency interest rate contracts Total designated Not designated as hedging instruments: Interest rate contracts Foreign exchange contracts Cross-currency interest rate contracts Total not designated Total derivatives $ $ $ Accounts Payable and Accrued Expenses Designated as hedging instruments: Interest rate contracts $ $ $ Total designated Not designated as hedging instruments: Interest rate contracts Foreign exchange contracts Total not designated Total derivatives $ $ $
Gains (Losses) Related to Derivative Instruments on Statement of Consolidated Income	The classification and gains (losses) including accrued interest expense related to derivative instruments on the statement of consolidated income consisted of the following in millions of dollars: Expense or Three Months Ended Nine Months Ended OCI July 31 July 31 Classification 2016 2015 2016 2015 Fair Value Hedges: Interest rate contracts Interest $ $ $ $ Cash Flow Hedges : Recognized in OCI (Effective Portion): Interest rate contracts OCI (pretax) * Foreign exchange contracts OCI (pretax) * Reclassified from OCI (Effective Portion): Interest rate contracts Interest * Foreign exchange contracts Other operating * Recognized Directly in Income (Ineffective Portion) ** ** ** ** Not Designated as Hedges: Interest rate contracts Interest * $ $ $ $ Foreign exchange contracts Cost of sales Foreign exchange contracts Other operating * Total not designated $ $ $ $ *   Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts. **   The amount is not significant.
Impact on Derivative Assets and Liabilities Related to Netting Arrangements and Collateral	Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and any collateral received or paid in millions of dollars follows: Gross Amounts Netting Collateral July 31, 2016 Recognized Arrangements Received Net Amount Assets $ $ $ $ Liabilities Gross Amounts Netting Collateral October 31, 2015 Recognized Arrangements Received Net Amount Assets $ $ $ Liabilities Gross Amounts Netting Collateral July 31, 2015 Recognized Arrangements Received Net Amount Assets $ $ $ $ Liabilities

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Jul. 31, 2016
Monosem
Preliminary Fair Values Assigned to the Assets and Liabilities Related to the Acquired Entity	The fair values assigned to the assets and liabilities related to the acquired entity in millions of dollars follow: Trade accounts and notes receivable - net $ Other receivables Inventories Property and equipment - net Goodwill Other intangible assets - net Other assets Total assets $ Accounts payable and accrued expenses $ Deferred tax liabilities Total liabilities $
Hagie Manufacturing Company, LLC
Preliminary Fair Values Assigned to the Assets and Liabilities Related to the Acquired Entity	The preliminary fair values assigned to the assets and liabilities related to the acquired entity in millions of dollars follow: Trade accounts and notes receivable - net $ Inventories Property and equipment - net Goodwill Other intangible assets - net Other assets Total assets $ Accounts payable and accrued expenses, and Total liabilities $ Redeemable noncontrolling interest $

SUPPLEMENTAL CONSOLIDATING DA43

SUPPLEMENTAL CONSOLIDATING DATA (Tables)	9 Months Ended
	Jul. 31, 2016
SUPPLEMENTAL CONSOLIDATING DATA
Supplemental Consolidating Data Income Statement	(21) SUPPLEMENTAL CONSOLIDATING DATA STATEMENT OF INCOME For the Three Months Ended July 31, 2016 and 2015 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2016 2015 2016 2015 Net Sales and Revenues Net sales $ $ Finance and interest income $ $ Other income Total Costs and Expenses Cost of sales Research and development expenses Selling, administrative and general expenses Interest expense Interest compensation to Financial Services Other operating expenses Total Income of Consolidated Group before Income Taxes Provision for income taxes Income of Consolidated Group Equity in Income of Unconsolidated Subsidiaries and Affiliates Financial Services .2 .2 Other Total .2 .2 Net Income Less: Net income (loss) attributable to noncontrolling interests (.2) .1 Net Income Attributable to Deere & Company $ $ $ $ *   Deere & Company with Financial Services on the equity basis. The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements. SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENT OF INCOME For the Nine Months Ended July 31, 2016 and 2015 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2016 2015 2016 2015 Net Sales and Revenues Net sales $ $ Finance and interest income $ $ Other income Total Costs and Expenses Cost of sales Research and development expenses Selling, administrative and general expenses Interest expense Interest compensation to Financial Services Other operating expenses Total Income of Consolidated Group before Income Taxes Provision for income taxes Income of Consolidated Group Equity in Income of Unconsolidated Subsidiaries and Affiliates Financial Services Other .8 Total Net Income Less: Net income (loss) attributable to noncontrolling interests .6 Net Income Attributable to Deere & Company $ $ $ $ *   Deere & Company with Financial Services on the equity basis. The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.
Supplemental Consolidating Data Condensed Balance Sheet	SUPPLEMENTAL CONSOLIDATING DATA (Continued) CONDENSED BALANCE SHEET (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES July 31 October 31 July 31 July 31 October 31 July 31 2016 2015 2015 2016 2015 2015 Assets Cash and cash equivalents $ $ $ $ $ $ Marketable securities Receivables from unconsolidated subsidiaries and affiliates Trade accounts and notes receivable - net Financing receivables - net .4 .9 Financing receivables securitized - net Other receivables Equipment on operating leases - net Inventories Property and equipment - net Investments in unconsolidated subsidiaries and affiliates Goodwill Other intangible assets - net Retirement benefits Deferred income taxes Other assets Total Assets $ $ $ $ $ $ Liabilities and Stockholders’ Equity Liabilities Short-term borrowings $ $ $ $ $ $ Short-term securitization borrowings Payables to unconsolidated subsidiaries and affiliates Accounts payable and accrued expenses Deferred income taxes Long-term borrowings Retirement benefits and other liabilities Total liabilities Commitments and contingencies (Note 14) Redeemable noncontrolling interest (Note 18) Stockholders’ Equity Common stock, $1 par value (issued shares at July 31, 2016 – 536,431,204) Common stock in treasury Retained earnings Accumulated other comprehensive income (loss) Total Deere & Company stockholders' equity Noncontrolling interests Total stockholders’ equity Total Liabilities and Stockholders’ Equity $ $ $ $ $ $ *   Deere & Company with Financial Services on the equity basis. The supplemental consolidating data is presented for informational purposes. Transactions between the "Equipment Operations" and "Financial Services" have been eliminated to arrive at the consolidated financial statements.
Supplemental Consolidating Data Statement of Cash Flows	SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENT OF CASH FLOWS For the Nine Months Ended July 31, 2016 and 2015 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2016 2015 2016 2015 Cash Flows from Operating Activities Net income $ $ $ $ Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses Provision for depreciation and amortization Impairment charges Undistributed earnings of unconsolidated subsidiaries and affiliates (.8) Provision (credit) for deferred income taxes Changes in assets and liabilities: Trade receivables Insurance receivables Inventories Accounts payable and accrued expenses Accrued income taxes payable/receivable Retirement benefits Other Net cash provided by operating activities Cash Flows from Investing Activities Collections of receivables (excluding trade and wholesale) Proceeds from maturities and sales of marketable securities Proceeds from sales of equipment on operating leases Proceeds from sales of business and unconsolidated affiliates, net of cash sold Cost of receivables acquired (excluding trade and wholesale) Purchases of marketable securities Purchases of property and equipment Cost of equipment on operating leases acquired Increase in trade and wholesale receivables Acquisitions of businesses, net of cash acquired Other Net cash provided by (used for) investing activities Cash Flows from Financing Activities Increase (decrease) in total short-term borrowings Change in intercompany receivables/payables Proceeds from long-term borrowings Payments of long-term borrowings Proceeds from issuance of common stock Repurchases of common stock Dividends paid Excess tax benefits from share-based compensation Other Net cash provided by (used for) financing activities Effect of Exchange Rate Changes on Cash and Cash Equivalents Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Period Cash and Cash Equivalents at End of Period $ $ $ $ *   Deere & Company with Financial Services on the equity basis. The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN44

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CASH FLOW INFORMATION (Details) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CASH FLOW INFORMATION
Transfer of inventory to equipment on operating leases	$ 440	$ 468
Accounts payable related to purchases of property and equipment	$ 40	$ 42

OTHER COMPREHENSIVE INCOME IT45

OTHER COMPREHENSIVE INCOME ITEMS - After-Tax Changes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Accumulated other comprehensive income (loss)
Balance			$ 6,757.6	$ 9,065.5
Net current period other comprehensive income (loss)	$ (63.4)	$ (213.9)	147.3	(724.8)
Balance	7,439.7	7,725	7,439.7	7,725
Total Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss)
Balance			(4,729)	(3,783)
Other comprehensive income (loss) items before reclassification			36	(851)
Amounts reclassified from accumulated other comprehensive income (loss)			111	127
Net current period other comprehensive income (loss)			147	(724)
Balance	(4,582)	(4,507)	(4,582)	(4,507)
Retirement Benefits Adjustment
Accumulated other comprehensive income (loss)
Balance			(3,501)	(3,493)
Other comprehensive income (loss) items before reclassification			(23)	(23)
Amounts reclassified from accumulated other comprehensive income (loss)			110	127
Net current period other comprehensive income (loss)	30	41	87	104
Balance	(3,414)	(3,389)	(3,414)	(3,389)
Cumulative Translation Adjustment
Accumulated other comprehensive income (loss)
Balance			(1,238)	(303)
Other comprehensive income (loss) items before reclassification			54	(832)
Net current period other comprehensive income (loss)	(99)	(255)	54	(832)
Balance	(1,184)	(1,135)	(1,184)	(1,135)
Unrealized Gain (Loss) on Derivatives
Accumulated other comprehensive income (loss)
Balance			(2)
Other comprehensive income (loss) items before reclassification	(1)	(2)	(2)	(5)
Amounts reclassified from accumulated other comprehensive income (loss)			3	4
Net current period other comprehensive income (loss)		(1)	1	(1)
Balance	(1)	(1)	(1)	(1)
Unrealized Gain (Loss) on Investments
Accumulated other comprehensive income (loss)
Balance			12	13
Other comprehensive income (loss) items before reclassification	7	3	7	9
Amounts reclassified from accumulated other comprehensive income (loss)			(2)	(4)
Net current period other comprehensive income (loss)	6	1	5	5
Balance	$ 17	$ 18	$ 17	$ 18

OTHER COMPREHENSIVE INCOME IT46

OTHER COMPREHENSIVE INCOME ITEMS - Amounts Recorded in and Reclassifications out of (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Other Comprehensive Income (Loss), Before Tax
Interest expense	$ (200.7)	$ (171.5)	$ (564.9)	$ (517.1)
Other operating expense	(276.6)	(223.6)	(884.7)	(659.1)
Other income	224.5	157.5	538.3	537.7
Total other comprehensive income (loss), before tax	(43)	(190)	202	(659)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Total other comprehensive income (loss), tax (expense) credit	(20)	(24)	(55)	(65)
Other Comprehensive Income (Loss), After Tax
Other Comprehensive Income (Loss), Net of Income Taxes	(63.4)	(213.9)	147.3	(724.8)
Cumulative Translation Adjustment
Other Comprehensive Income (Loss), Before Tax
Total other comprehensive income (loss), before tax	(100)	(256)	54	(831)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Total other comprehensive income (loss), tax (expense) credit	1	1		(1)
Other Comprehensive Income (Loss), After Tax
Other comprehensive income (loss) before reclassification, after tax			54	(832)
Other Comprehensive Income (Loss), Net of Income Taxes	(99)	(255)	54	(832)
Unrealized Gain (Loss) on Derivatives
Other Comprehensive Income (Loss), Before Tax
Other comprehensive income (loss) before reclassification, before tax	(1)	(4)	(3)	(8)
Total other comprehensive income (loss), before tax		(2)	2	(2)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Other comprehensive income (loss) before reclassification, tax (expense) credit		2	1	3
Total other comprehensive income (loss), tax (expense) credit		1	(1)	1
Other Comprehensive Income (Loss), After Tax
Other comprehensive income (loss) before reclassification, after tax	(1)	(2)	(2)	(5)
Reclassification from accumulated other comprehensive income, after tax			3	4
Other Comprehensive Income (Loss), Net of Income Taxes		(1)	1	(1)
Unrealized Gain (Loss) on Derivatives | Interest Rate Contracts | Reclassification out of Accumulated Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss), Before Tax
Interest expense	1	3	6	9
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit		(1)	(2)	(3)
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	1	2	4	6
Unrealized Gain (Loss) on Derivatives | Foreign Exchange Contracts | Reclassification out of Accumulated Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss), Before Tax
Other operating expense		(1)	(1)	(3)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit				1
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax		(1)	(1)	(2)
Unrealized Gain (Loss) on Investments
Other Comprehensive Income (Loss), Before Tax
Other comprehensive income (loss) before reclassification, before tax	11	6	10	14
Total other comprehensive income (loss), before tax	9	3	7	7
Other Comprehensive Income (Loss), Tax (Expense) Credit
Other comprehensive income (loss) before reclassification, tax (expense) credit	(4)	(3)	(3)	(5)
Total other comprehensive income (loss), tax (expense) credit	(3)	(2)	(2)	(2)
Other Comprehensive Income (Loss), After Tax
Other comprehensive income (loss) before reclassification, after tax	7	3	7	9
Reclassification from accumulated other comprehensive income, after tax			(2)	(4)
Other Comprehensive Income (Loss), Net of Income Taxes	6	1	5	5
Unrealized Gain (Loss) on Investments | Reclassification out of Accumulated Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss), Before Tax
Other income	(2)	(3)	(3)	(7)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	1	1	1	3
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	(1)	(2)	(2)	(4)
Retirement Benefits Adjustment
Other Comprehensive Income (Loss), Before Tax
Total other comprehensive income (loss), before tax	48	65	139	167
Other Comprehensive Income (Loss), Tax (Expense) Credit
Total other comprehensive income (loss), tax (expense) credit	(18)	(24)	(52)	(63)
Other Comprehensive Income (Loss), After Tax
Other comprehensive income (loss) before reclassification, after tax			(23)	(23)
Reclassification from accumulated other comprehensive income, after tax			110	127
Other Comprehensive Income (Loss), Net of Income Taxes	30	41	87	104
Retirement Benefits Adjustment | Pensions
Other Comprehensive Income (Loss), Before Tax
Other comprehensive income (loss) before reclassification, before tax	(7)	(4)	(24)	(21)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Other comprehensive income (loss) before reclassification, tax (expense) credit	2	1	8	7
Other Comprehensive Income (Loss), After Tax
Other comprehensive income (loss) before reclassification, after tax	(5)	(3)	(16)	(14)
Retirement Benefits Adjustment | Health Care and Life Insurance
Other Comprehensive Income (Loss), Before Tax
Other comprehensive income (loss) before reclassification, before tax			(11)	(12)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Other comprehensive income (loss) before reclassification, tax (expense) credit			4	3
Other Comprehensive Income (Loss), After Tax
Other comprehensive income (loss) before reclassification, after tax			(7)	(9)
Actuarial (Gain) Loss | Reclassification out of Accumulated Other Comprehensive Income (Loss) | Pensions
Other Comprehensive Income (Loss), Before Tax
Reclassification from accumulated other comprehensive income, before tax	51	55	155	165
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	(19)	(20)	(57)	(60)
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	32	35	98	105
Actuarial (Gain) Loss | Reclassification out of Accumulated Other Comprehensive Income (Loss) | Health Care and Life Insurance
Other Comprehensive Income (Loss), Before Tax
Reclassification from accumulated other comprehensive income, before tax	18	22	55	68
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	(6)	(8)	(20)	(25)
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	12	14	35	43
Prior Service (Credit) Cost | Reclassification out of Accumulated Other Comprehensive Income (Loss) | Pensions
Other Comprehensive Income (Loss), Before Tax
Reclassification from accumulated other comprehensive income, before tax	4	7	12	19
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	(1)	(2)	(4)	(7)
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	3	5	8	12
Prior Service (Credit) Cost | Reclassification out of Accumulated Other Comprehensive Income (Loss) | Health Care and Life Insurance
Other Comprehensive Income (Loss), Before Tax
Reclassification from accumulated other comprehensive income, before tax	(19)	(19)	(58)	(57)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	7	7	21	21
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	(12)	(12)	(37)	(36)
Settlements/Curtailments | Reclassification out of Accumulated Other Comprehensive Income (Loss) | Pensions
Other Comprehensive Income (Loss), Before Tax
Reclassification from accumulated other comprehensive income, before tax	1	4	10	5
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	$ (1)	(2)	(4)	(2)
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax		$ 2	$ 6	$ 3

OTHER COMPREHENSIVE INCOME IT47

OTHER COMPREHENSIVE INCOME ITEMS - Noncontrolling Interests' (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interests
Comprehensive income (loss) attributable to noncontrolling interests	$ (0.2)	$ 0	$ (1.5)	$ 0.2
Net income (loss) attributable to noncontrolling interests	(0.2)	0.1	(1.6)	0.6
Cumulative translation adjustments attributable to noncontrolling interests	$ 0	$ (0.1)	$ 0.1	$ (0.4)

DIVIDENDS DECLARED AND PAID (De

DIVIDENDS DECLARED AND PAID (Details) - $ / shares	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
DIVIDENDS DECLARED AND PAID
Dividends declared (in dollars per share)	$ 0.60	$ 0.60	$ 1.80	$ 1.80
Dividends paid (in dollars per share)	$ 0.60	$ 0.60	$ 1.80	$ 1.80

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
EARNINGS PER SHARE
Net income attributable to Deere & Company	$ 488.8	$ 511.6	$ 1,238.6	$ 1,588.8
Less income allocable to participating securities (in dollars)	0.3	0.2	0.6	0.6
Income allocable to common stock (in dollars)	$ 488.5	$ 511.4	$ 1,238	$ 1,588.2
Average shares outstanding	314.3	331.4	315.4	337.3
Basic (in dollars per share)	$ 1.55	$ 1.54	$ 3.93	$ 4.71
Diluted Earnings Per Share
Average shares outstanding	314.3	331.4	315.4	337.3
Effect of dilutive share-based compensation (in shares)	1.4	2.7	1.3	2.6
Total potential shares outstanding	315.7	334.1	316.7	339.9
Diluted (in dollars per share)	$ 1.55	$ 1.53	$ 3.91	$ 4.67
Antidilutive incremental shares excluded from computation of earnings per share	11.9		11.9

PENSION AND OTHER POSTRETIREM50

PENSION AND OTHER POSTRETIREMENT BENEFITS - Components of Benefit Costs (Details) - USD ($) $ in Millions	Nov. 01, 2015	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2016
Forecasted
Net Periodic Cost
Decrease in service and interest costs compared to previous method						$ 175
Pensions
Net Periodic Cost
Service cost		$ 64	$ 70	$ 190	$ 212
Interest cost		98	118	293	356
Expected return on plan assets		(194)	(192)	(581)	(577)
Amortization of actuarial (gain) loss		51	55	155	165
Amortization of prior service (credit) cost		4	7	12	19
Settlements/curtailments		1	4	10	5
Net cost		24	62	79	180
Defined benefit plan employer contributions				64
Defined benefit plan employer contributions expected for the remainder of the fiscal year				16
Service cost discount rates (as a percent)	4.30%
Interest cost discount rates (as a percent)	3.40%
Discount rates (as a percent)	4.10%
Health Care and Life Insurance
Net Periodic Cost
Service cost		9	12	28	35
Interest cost		51	65	153	194
Expected return on plan assets		(8)	(14)	(26)	(42)
Amortization of actuarial (gain) loss		18	22	55	68
Amortization of prior service (credit) cost		(19)	(19)	(58)	(57)
Net cost		$ 51	$ 66	152	$ 198
Defined benefit plan employer contributions				24
Defined benefit plan employer contributions expected for the remainder of the fiscal year				$ 2
Service cost discount rates (as a percent)	5.00%
Interest cost discount rates (as a percent)	3.50%
Discount rates (as a percent)	4.30%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	Jul. 31, 2016	Oct. 31, 2015
UNRECOGNIZED TAX BENEFITS
Unrecognized tax benefits	$ 192	$ 229
Unrecognized tax benefits affecting effective tax rate if recognized	$ 72

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015
Net Sales and Revenues
Total net sales	$ 5,861.4	$ 6,839.5	$ 17,737.1	$ 19,843.1
% Change - Net sales	(14.00%)		(11.00%)
Total net sales and revenues	$ 6,724.4	7,593.7	$ 20,124.4	22,147.5
% Change - Net sales and revenues	(11.00%)		(9.00%)
Operating Profit (Loss)
Total operating profit (loss)	$ 816	840	$ 2,071	2,579
% Change - Operating profit (loss)	(3.00%)		(20.00%)
Net income attributable to Deere & Company	$ 488.8	511.6	$ 1,238.6	1,588.8
% Change - Net income (loss) attributable to Deere & Company	(4.00%)		(22.00%)
Identifiable Assets
Total Assets	$ 58,606.4	58,932.2	$ 58,606.4	58,932.2	$ 57,947.6
% Change - Identifiable assets			1.00%
Operating Segments (Other)
Reconciling items	$ (100)	(87)	$ (272)	(254)
% Change - Reconciling items	15.00%		7.00%
Income taxes	$ (226.5)	(241)	$ (559.9)	(735.6)
% Change - Income taxes	(6.00%)		(24.00%)
Equipment Operations
Net Sales and Revenues
Total net sales	$ 5,861.4	6,839.5	$ 17,737.1	19,843.1
Total net sales and revenues	6,093.4	7,001.1	18,280	20,353.1
Operating Profit (Loss)
Net income attributable to Deere & Company	488.8	511.6	1,238.6	1,588.8
Identifiable Assets
Total Assets	25,751.3	26,573.5	25,751.3	26,573.5	25,373.6
Operating Segments (Other)
Income taxes	(160.9)	(155.5)	(372.5)	(478.5)
Equipment Operations | Outside U.S. and Canada:
Net Sales and Revenues
Total net sales	$ 2,337	2,642	$ 6,643	7,144
% Change - Net sales	(12.00%)		(7.00%)
Operating Profit (Loss)
Total operating profit (loss)	$ 193	195	$ 445	503
% Change - Operating profit (loss)	(1.00%)		(12.00%)
Corporate
Identifiable Assets
Total Assets	$ 5,266		$ 5,266		5,412
% Change - Identifiable assets			(3.00%)
Agriculture and Turf
Net Sales and Revenues
Total net sales	$ 4,704	5,308	$ 14,046	15,155
% Change - Net sales	(11.00%)		(7.00%)
Operating Profit (Loss)
Total operating profit (loss)	$ 571	472	$ 1,329	1,378
% Change - Operating profit (loss)	21.00%		(4.00%)
Identifiable Assets
Total Assets	$ 8,600		$ 8,600		8,332
% Change - Identifiable assets			3.00%
Agriculture and Turf | Intersegment Sales and Revenue
Net Sales and Revenues
Total net sales and revenues	$ 8	19	$ 25	44
% Change - Net sales and revenues	(58.00%)		(43.00%)
Construction and Forestry
Net Sales and Revenues
Total net sales	$ 1,157	1,532	$ 3,691	4,688
% Change - Net sales	(24.00%)		(21.00%)
Operating Profit (Loss)
Total operating profit (loss)	$ 54	129	$ 197	464
% Change - Operating profit (loss)	(58.00%)		(58.00%)
Identifiable Assets
Total Assets	$ 3,113		$ 3,113		3,295
% Change - Identifiable assets			(6.00%)
Construction and Forestry | Intersegment Sales and Revenue
Net Sales and Revenues
Total net sales and revenues			$ 1	1
Financial Services
Net Sales and Revenues
Total net sales and revenues	$ 667	636	$ 1,954	1,937
% Change - Net sales and revenues	5.00%		1.00%
Operating Profit (Loss)
Total operating profit (loss)	$ 191	239	$ 545	737
% Change - Operating profit (loss)	(20.00%)		(26.00%)
Identifiable Assets
Total Assets	$ 41,627		$ 41,627		$ 40,909
% Change - Identifiable assets			2.00%
Financial Services | Intersegment Sales and Revenue
Net Sales and Revenues
Total net sales and revenues	$ 52	60	$ 179	165
% Change - Net sales and revenues	(13.00%)		8.00%
Other
Net Sales and Revenues
Total net sales and revenues	$ 196	$ 118	$ 433	$ 367
% Change - Net sales and revenues	66.00%		18.00%

FINANCING RECEIVABLES - Past Du

FINANCING RECEIVABLES - Past Due Age Analysis (Details) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Oct. 31, 2014
Financing Receivable, Past Due
Minimum number of days for a financing receivable to be considered past due	30 days
Generally the number of days before a receivable is considered to be non-performing, accrual of finance income is suspended and the estimated uncollectible amount is written off	120 days
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	$ 493		$ 381	$ 362
Total Non-Performing	246		142	152
Current	27,974		29,278	29,354
Total Financing Receivables	28,713		29,801	29,868
Less allowance for credit losses	171	$ 165	157	157	$ 163	$ 175
Total financing receivables - net	28,542		29,644	29,711
30-59 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	261		215	203
60-89 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	111		100	80
90 Days or Greater Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	121		66	79
Retail Notes
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Financing Receivables	20,465			21,329
Less allowance for credit losses	108	$ 102	95	94	$ 99	$ 109
Retail Notes | Agriculture and Turf
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	286		213	206
Total Non-Performing	194		98	112
Current	17,278		18,574	18,354
Total Financing Receivables	17,758		18,885	18,672
Retail Notes | Agriculture and Turf | 30-59 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	145		112	108
Retail Notes | Agriculture and Turf | 60-89 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	60		54	44
Retail Notes | Agriculture and Turf | 90 Days or Greater Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	81		47	54
Retail Notes | Construction and Forestry
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	136		105	99
Total Non-Performing	36		21	20
Current	2,535		2,556	2,538
Total Financing Receivables	2,707		2,682	2,657
Retail Notes | Construction and Forestry | 30-59 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	74		64	65
Retail Notes | Construction and Forestry | 60-89 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	36		29	20
Retail Notes | Construction and Forestry | 90 Days or Greater Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	26		12	14
Other Financing Receivables | Agriculture and Turf
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	48		42	39
Total Non-Performing	9		13	12
Current	7,212		7,175	7,453
Total Financing Receivables	7,269		7,230	7,504
Other Financing Receivables | Agriculture and Turf | 30-59 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	28		26	20
Other Financing Receivables | Agriculture and Turf | 60-89 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	9		12	12
Other Financing Receivables | Agriculture and Turf | 90 Days or Greater Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	11		4	7
Other Financing Receivables | Construction and Forestry
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	23		21	18
Total Non-Performing	7		10	8
Current	949		973	1,009
Total Financing Receivables	979		1,004	1,035
Other Financing Receivables | Construction and Forestry | 30-59 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	14		13	10
Other Financing Receivables | Construction and Forestry | 60-89 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	6		5	4
Other Financing Receivables | Construction and Forestry | 90 Days or Greater Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	$ 3		$ 3	$ 4

FINANCING RECEIVABLES - Allowan

FINANCING RECEIVABLES - Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015
Allowance:
Beginning of period balance	$ 165	$ 163	$ 157	$ 175
Provision (credit)	34	19	66	33
Write-offs	(39)	(27)	(81)	(53)
Recoveries	9	7	23	20
Translation adjustments	2	(5)	6	(18)
End of period balance	171	157	171	157
Financing receivables:
End of period balance	28,713	29,868	28,713	29,868	$ 29,801
Balance individually evaluated	108	31	108	31
Retail Notes
Allowance:
Beginning of period balance	102	99	95	109
Provision (credit)	11	4	28	9
Write-offs	(10)	(8)	(29)	(17)
Recoveries	3	3	8	7
Translation adjustments	2	(4)	6	(14)
End of period balance	108	94	108	94
Financing receivables:
End of period balance	20,465	21,329	20,465	21,329
Balance individually evaluated	90	19	90	19
Revolving Charge Accounts
Allowance:
Beginning of period balance	40	41	40	41
Provision (credit)	22	14	35	22
Write-offs	(27)	(18)	(49)	(34)
Recoveries	6	4	15	12
End of period balance	41	41	41	41
Financing receivables:
End of period balance	2,997	2,680	2,997	2,680
Balance individually evaluated	2	3	2	3
Other Financing Receivables
Allowance:
Beginning of period balance	23	23	22	25
Provision (credit)	1	1	3	2
Write-offs	(2)	(1)	(3)	(2)
Recoveries				1
Translation adjustments		(1)		(4)
End of period balance	22	22	22	22
Financing receivables:
End of period balance	5,251	5,859	5,251	5,859
Balance individually evaluated	$ 16	$ 9	$ 16	$ 9

FINANCING RECEIVABLES - Impaire

FINANCING RECEIVABLES - Impaired (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015
Analysis of Impaired Financing Receivables
Recorded investment, with specific allowance	$ 31	$ 5	$ 14
Recorded investment, without specific allowance	21	20	14
Recorded Investment	52	25	28
Unpaid principal balance, with specific allowance	29	4	13
Unpaid principal balance, without specific allowance	21	19	14
Unpaid Principal Balance	50	23	27
Specific Allowance	7	1	2
Average recorded investment, with specific allowance	28	8	13
Average recorded investment, without specific allowance	19	21	20
Average Recorded Investment	47	29	33
Agriculture and Turf
Analysis of Impaired Financing Receivables
Recorded Investment	32	12	19
Unpaid Principal Balance	30	11	18
Specific Allowance	7	1	2
Average Recorded Investment	30	16	20
Construction and Forestry
Analysis of Impaired Financing Receivables
Recorded Investment	20	13	9
Unpaid Principal Balance	20	12	9
Average Recorded Investment	$ 17	$ 13	$ 13

FINANCING RECEIVABLES - Trouble

FINANCING RECEIVABLES - Troubled Debt Restructuring (Details) $ in Millions	9 Months Ended
	Jul. 31, 2016USD ($)item	Jul. 31, 2015USD ($)item
Financing Receivables Related to Troubled Debt Restructurings
Financing receivable contracts in troubled debt restructuring, number | item	67	76
Financing receivables in troubled debt restructurings, aggregate balances, pre-modification	$ 9	$ 2.2
Financing receivables in troubled debt restructurings, aggregate balances, post-modification	$ 8.4	$ 1.7
Number of troubled debt restructurings that subsequently defaulted | item	0	0
Commitments to lend additional funds to borrowers whose accounts were modified in troubled debt restructurings	$ 23

SECURITIZATION OF FINANCING R57

SECURITIZATION OF FINANCING RECEIVABLES (Details) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2016	Oct. 31, 2015	Aug. 31, 2015	Jul. 31, 2015
Securitization Transactions
Unconsolidated conduits, carrying value of liabilities	$ 1,940
Unconsolidated conduits, maximum exposure to loss	2,113
Financing receivables securitized (retail notes)	5,961	$ 4,848		$ 4,751
Allowance for credit losses - securitization transactions	(14)	(13)		(13)
Other assets - securitization transactions	130	109		108
Total restricted securitized assets - securitization transactions	6,077	4,944		4,846
Short-term securitization borrowings	5,728.9	4,590		4,595.4
Accrued interest on borrowings - securitization transactions	3	2		2
Total liabilities related to restricted securitized assets - securitization transactions	$ 5,732	4,592		4,597
Maximum remaining term of all restricted securitized retail notes	7 years
VIE-Primary Beneficiary
Securitization Transactions
Total restricted securitized assets - securitization transactions	$ 3,211	3,006		2,639
Total liabilities related to restricted securitized assets - securitization transactions	3,100	2,743		2,534
Restricted securitized assets - securitization transaction retained	0	189	$ 228
Non-VIE Banking Operation
Securitization Transactions
Total restricted securitized assets - securitization transactions	753	249		284
Total liabilities related to restricted securitized assets - securitization transactions	692	238		265
VIE-Not Primary Beneficiary
Securitization Transactions
Total Assets	46,000
Total restricted securitized assets - securitization transactions	2,113	1,689		1,923
Total liabilities related to restricted securitized assets - securitization transactions	$ 1,940	$ 1,611		$ 1,798

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015
INVENTORIES
Raw materials and supplies	$ 1,394	$ 1,559	$ 1,587
Work-in-process	460	450	522
Finished goods and parts	3,395	3,234	3,701
Total FIFO value	5,249	5,243	5,810
Less adjustment to LIFO value	1,398	1,426	1,491
Inventories	$ 3,851.3	$ 3,817	$ 4,319

GOODWILL AND OTHER INTANGIBLE59

GOODWILL AND OTHER INTANGIBLE ASSETS-NET - Goodwill (Details) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Changes in Amounts of Goodwill
Goodwill - net, beginning balance	$ 726	$ 791
Acquisitions	94
Translation adjustments	4	(75)
Goodwill - net, ending balance	823.6	715.9
Accumulated impairment loss	0	0
Agriculture and Turf
Changes in Amounts of Goodwill
Goodwill - net, beginning balance	227	235
Acquisitions	94
Translation adjustments	3	(17)
Goodwill - net, ending balance	324	218
Construction and Forestry
Changes in Amounts of Goodwill
Goodwill - net, beginning balance	499	556
Translation adjustments	1	(58)
Goodwill - net, ending balance	$ 500	$ 498

GOODWILL AND OTHER INTANGIBLE60

GOODWILL AND OTHER INTANGIBLE ASSETS-NET - Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015
Amortized Intangible Assets:
Total at cost	$ 175	$ 110	$ 175	$ 110	$ 119
Less accumulated amortization	65	52	65	52	55
Total amortized intangible assets - net	109.5	57.8	109.5	57.8	63.6
Amortization expense of other intangible assets	5	3	11	8
Amortization expense of other intangible assets - remainder of 2016	5		5
Amortization expense of other intangible assets - 2017	18		18
Amortization expense of other intangible assets - 2018	18		18
Amortization expense of other intangible assets - 2019	14		14
Amortization expense of other intangible assets - 2020	13		13
Customer Lists and Relationships
Amortized Intangible Assets:
Total at cost	43	19	43	19	23
Less accumulated amortization	11	11	$ 11	11	11
Useful Lives (weighted averages)			11 years
Technology, Patents, Trademarks and Other
Amortized Intangible Assets:
Total at cost	132	91	$ 132	91	96
Less accumulated amortization	$ 54	$ 42	$ 54	$ 42	$ 45
Useful Lives (weighted averages)			15 years

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Warranty (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
COMMITMENTS AND CONTINGENCIES
Historical claims rate, review period			5 years
Unamortized extended warranty premiums (deferred revenue)	$ 438	$ 439	$ 438	$ 439
Change in Warranty Liability and Unearned Premiums
Beginning of period balance	1,235	1,242	1,261	1,234
Payments	(194)	(221)	(590)	(564)
Amortization of premiums received	(68)	(39)	(172)	(121)
Accruals for warranties	172	222	546	592
Premiums received	44	51	134	143
Foreign exchange	(1)	(9)	9	(38)
End of period balance	$ 1,188	$ 1,246	$ 1,188	$ 1,246

COMMITMENTS AND CONTINGENCIES62

COMMITMENTS AND CONTINGENCIES - Other (Details) $ in Millions	9 Months Ended
	Jul. 31, 2016USD ($)
Long Term Purchase Commitments
Commitments for the construction and acquisition of property and equipment	$ 260
Restricted Assets and Other Contingent Liabilities
Other restricted assets	99
Miscellaneous contingent liabilities	30
Guarantees, Third-party Receivables
Guarantee Obligations
Guarantee obligations maximum exposure	160
Guarantee obligations accrued losses	$ 5
Guarantee obligations term	P5Y

FAIR VALUE MEASUREMENTS - Finan

FAIR VALUE MEASUREMENTS - Financial Instruments (Details) - USD ($) $ in Millions	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015
Fair Values of Financial Instruments
Financing receivables - net	$ 22,594.8	$ 24,809	$ 24,973.4
Financing receivables securitized - net	5,947.4	4,834.6	4,737.8
Short-term securitization borrowings	5,728.9	4,590	4,595.4
Long-term borrowings	24,128.4	23,832.8	23,200.9
Level 2
Fair Values of Financial Instruments
Short-term securitization borrowings	5,733	4,590	4,596
Long-term borrowings due within one year	5,425	5,245	4,831
Long-term borrowings	25,074	24,183	23,650
Level 3
Fair Values of Financial Instruments
Financing receivables - net	22,459	24,719	24,831
Financing receivables securitized - net	5,939	4,820	4,709
Carrying Value
Fair Values of Financial Instruments
Financing receivables - net	22,595	24,809	24,973
Financing receivables securitized - net	5,947	4,835	4,738
Short-term securitization borrowings	5,729	4,590	4,595
Long-term borrowings due within one year	5,434	5,253	4,850
Long-term borrowings	24,128	23,833	23,201
Equipment Operations
Fair Values of Financial Instruments
Financing receivables - net	0.4	0.9	4.7
Long-term borrowings	4,578.6	4,460.6	4,475.4
Equipment Operations | Level 2
Fair Values of Financial Instruments
Long-term borrowings due within one year	57	78	157
Long-term borrowings	5,350	4,835	4,878
Equipment Operations | Carrying Value
Fair Values of Financial Instruments
Long-term borrowings due within one year	61	86	167
Long-term borrowings	4,578	4,461	4,475
Financial Services
Fair Values of Financial Instruments
Financing receivables - net	22,594.4	24,808.1	24,968.7
Financing receivables securitized - net	5,947.4	4,834.6	4,737.8
Short-term securitization borrowings	5,728.9	4,590	4,595.4
Long-term borrowings	19,549.8	19,372.2	18,725.5
Financial Services | Level 2
Fair Values of Financial Instruments
Long-term borrowings due within one year	5,368	5,167	4,674
Long-term borrowings	19,724	19,348	18,772
Financial Services | Carrying Value
Fair Values of Financial Instruments
Long-term borrowings due within one year	5,373	5,167	4,683
Long-term borrowings	$ 19,550	$ 19,372	$ 18,726

FAIR VALUE MEASUREMENTS - Asset

FAIR VALUE MEASUREMENTS - Assets and Liaibilities - Recurring (Details) - USD ($) $ in Millions	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities	$ 468.9	$ 437.4	$ 421.1
Derivative assets	559	428	425
Derivative liabilities	95	78	109
Transfer from Level 1 to Level 2, assets	0		0
Transfer from Level 2 to Level 1, assets	0		0
Transfer from Level 1 to Level 2, liabilities	0		0
Transfer from Level 2 to Level 1, liabilities	0		0
Other Assets
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Derivative assets	559	428	425
Accounts Payable and Accrued Expenses
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Derivative liabilities	95	78	109
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Total Estimated Fair Value
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities	469	437	421
Total assets	1,028	865	846
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 and Level 2 | U.S. Government Debt Securities
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities	86	82	82
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | International Equity Securities
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities			8
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | Equity Fund
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities	48	43	35
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | Fixed Income Fund
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities	9
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | U.S. Government Debt Securities
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities	47	37	37
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Total liabilities	95	78	109
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Interest Rate Contracts | Other Assets
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Derivative assets	488	353	341
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Interest Rate Contracts | Accounts Payable and Accrued Expenses
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Derivative liabilities	47	60	83
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Foreign Exchange Contracts | Other Assets
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Derivative assets	47	50	57
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Foreign Exchange Contracts | Accounts Payable and Accrued Expenses
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Derivative liabilities	48	18	26
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Cross-Currency Interest Rate Contracts | Other Assets
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Derivative assets	24	25	27
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Municipal Debt Securities
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities	40	31	30
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Corporate Debt Securities
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities	118	124	104
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Mortgage-Backed Securities
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities	128	110	115
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 and Level 3 | International Debt Securities
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities	40	47	47
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 3 | International Debt Securities
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Marketable securities	$ 34	$ 29	$ 31

FAIR VALUE MEASUREMENTS - Contr

FAIR VALUE MEASUREMENTS - Contractual Maturities of Debt Securities (Details) $ in Millions	Jul. 31, 2016USD ($)
Contractual Maturities of Debt Securities, Amortized Cost
Amortized cost, due in one year or less	$ 38
Amortized cost, due after one through five years	98
Amortized cost, due after five through 10 years	91
Amortized cost, due after 10 years	50
Amortized cost, mortgage-backed securities	122
Amortized cost, debt securities	399
Contractual Maturities of Debt Securities, Fair Value
Fair value, due in one year or less	37
Fair value, due after one through five years	96
Fair value, due after five through 10 years	96
Fair value, due after 10 years	55
Fair value, mortgage-backed securities	128
Fair value, debt securities	$ 412

FAIR VALUE MEASUREMENTS - Recur

FAIR VALUE MEASUREMENTS - Recurring, Level 3 Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis - Level 3 - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Fair Value, Recurring, Level 3 Measurements from Available for Sale Marketable Securities
Beginning of period balance	$ 40		$ 29
Purchases		$ 30	25	$ 30
Principal payments	(8)		(16)
Change in unrealized gain (loss)	2	1	(4)	1
End of period balance	$ 34	$ 31	$ 34	$ 31

FAIR VALUE MEASUREMENTS - Nonre

FAIR VALUE MEASUREMENTS - Nonrecurring, Level 3 Measurements (Details) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Equipment on operating leases - net	$ 5,602.7	$ 4,970.4	$ 4,426
Fair Value, Nonrecurring Measurements | Level 3
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
Equipment on operating leases - net		479
Losses, Equipment on operating leases - net	30
Property and equipment - net		33
Other assets		$ 112
Losses, Other assets	$ 20

DERIVATIVE INSTRUMENTS - Cash F

DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015
Cash Flow Hedges
Cash flow hedge loss recorded in OCI to be reclassified within twelve months	$ 2
Maximum maturity of cash flow hedge interest rate and cross-currency interest rate contracts	29 months
Gains or losses reclassified from OCI to earnings	$ 0
Interest Rate Contracts | Cash Flow Hedges Member | Designated as Hedging Instruments
Cash Flow Hedges
Notional amount of cash flow hedge derivatives	1,850	$ 2,800	$ 2,800
Cross-Currency Interest Rate Contracts | Cash Flow Hedges Member | Designated as Hedging Instruments
Cash Flow Hedges
Notional amount of cash flow hedge derivatives	$ 51	$ 60	$ 65

DERIVATIVE INSTRUMENTS - Fair V

DERIVATIVE INSTRUMENTS - Fair Value Hedges (Details) - Interest Rate Contracts - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015
Fair Value Hedges
Gains (losses) on ineffective portion of interest rate fair value hedge derivatives	$ 2	$ 0	$ 1	$ 1
Gain (Loss) on Fair Value Hedges
Gains (losses) on interest rate contracts	82	(10)	148	45
Net accrued interest income on interest rate contracts	36	42	114	131
Gains (losses) on borrowings	(80)	10	(147)	(44)
Accrued interest expense on borrowings	75	68	217	207
Fair Value Hedges | Designated as Hedging Instruments
Fair Value Hedges
Notional amount of interest rate fair value hedge derivatives	$ 9,551	$ 8,694	$ 9,551	$ 8,694	$ 8,618

DERIVATIVE INSTRUMENTS - Not De

DERIVATIVE INSTRUMENTS - Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instruments - USD ($) $ in Millions	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015
Interest Rate Contracts
Derivatives Not Designated as Hedging Instruments
Notional amounts	$ 6,087	$ 6,333	$ 5,912
Interest Rate Contracts | Purchased
Derivatives Not Designated as Hedging Instruments
Notional amounts	667	1,069	1,190
Interest Rate Contracts | Sold
Derivatives Not Designated as Hedging Instruments
Notional amounts	667	1,069	1,190
Foreign Exchange Contracts
Derivatives Not Designated as Hedging Instruments
Notional amounts	3,959	3,160	3,040
Cross-Currency Interest Rate Contracts
Derivatives Not Designated as Hedging Instruments
Notional amounts	$ 64	$ 76	$ 80

DERIVATIVE INSTRUMENTS - Fair71

DERIVATIVE INSTRUMENTS - Fair Value (Details) - USD ($) $ in Millions	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015
Fair Value of Derivative Instruments
Total derivative assets	$ 559	$ 428	$ 425
Total derivative liabilities	95	78	109
Other Assets
Fair Value of Derivative Instruments
Total derivative assets	559	428	425
Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	95	78	109
Designated as Hedging Instruments | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	455	313	298
Designated as Hedging Instruments | Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	4	8	20
Designated as Hedging Instruments | Interest Rate Contracts | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	443	299	284
Designated as Hedging Instruments | Interest Rate Contracts | Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	4	8	20
Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	12	14	14
Not Designated as Hedging Instruments | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	104	115	127
Not Designated as Hedging Instruments | Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	91	70	89
Not Designated as Hedging Instruments | Interest Rate Contracts | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	45	54	57
Not Designated as Hedging Instruments | Interest Rate Contracts | Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	43	52	63
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	47	50	57
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	48	18	26
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	$ 12	$ 11	$ 13

DERIVATIVE INSTRUMENTS - Gains

DERIVATIVE INSTRUMENTS - Gains (Losses) on Statement of Consolidated Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Classification and gains (losses) including accrued interest expense related to derivative instruments
Not designated as hedges, gains (losses)	$ 110	$ 118	$ 23	$ 332
Interest Rate Contracts | OCI
Classification and gains (losses) including accrued interest expense related to derivative instruments
Cash flow hedges, recognized in OCI, effective portion, gains (losses)	(1)	(4)	(4)	(10)
Interest Rate Contracts | Interest Expense
Classification and gains (losses) including accrued interest expense related to derivative instruments
Fair value hedges, gains (losses)	118	32	262	176
Not designated as hedges, gains (losses)	(5)	(6)	(2)	(18)
Interest Rate Contracts | Interest Expense | Cash Flow Hedges Member
Classification and gains (losses) including accrued interest expense related to derivative instruments
Cash flow hedges, reclassified from OCI, effective portion, gains (losses)	(1)	(3)	(6)	(9)
Foreign Exchange Contracts | OCI
Classification and gains (losses) including accrued interest expense related to derivative instruments
Cash flow hedges, recognized in OCI, effective portion, gains (losses)			1	2
Foreign Exchange Contracts | Cost of Sales
Classification and gains (losses) including accrued interest expense related to derivative instruments
Not designated as hedges, gains (losses)	18	43	(11)	69
Foreign Exchange Contracts | Other Operating Expense
Classification and gains (losses) including accrued interest expense related to derivative instruments
Not designated as hedges, gains (losses)	$ 97	81	36	281
Foreign Exchange Contracts | Other Operating Expense | Cash Flow Hedges Member
Classification and gains (losses) including accrued interest expense related to derivative instruments
Cash flow hedges, reclassified from OCI, effective portion, gains (losses)		$ 1	$ 1	$ 3

DERIVATIVE INSTRUMENTS - Counte

DERIVATIVE INSTRUMENTS - Counterparty Risk and Collateral (Details) - USD ($) $ in Millions	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015
DERIVATIVE INSTRUMENTS
Fair value of derivatives with credit-risk-related contingent features in a liability position	$ 29	$ 41	$ 60
Derivative Assets
Gross amounts recognized	559	428	425
Netting arrangements	(53)	(62)	(78)
Collateral received	(44)		(1)
Net amount	462	366	346
Derivative Liabilities
Gross amounts recognized	95	78	109
Netting arrangements	(53)	(62)	(78)
Net amount	$ 42	$ 16	$ 31

STOCK OPTION AND RESTRICTED S74

STOCK OPTION AND RESTRICTED STOCK AWARDS (Details) - $ / shares shares in Thousands	1 Months Ended	9 Months Ended
	Dec. 31, 2015	Jul. 31, 2016
Share-based Compensation, Aggregate Disclosures
Number of additional shares authorized for grant related to stock option and restricted stock awards		13,200
Stock Options
Share-based Compensation, Aggregate Disclosures
Options granted (in shares)	3,500
Options granted, weighted-average exercise price (in dollars per share)	$ 79.24
Options granted, weighted-average fair value (in dollars per share)	$ 16.88
Options outstanding (in shares)		17,800
Options outstanding, weighted-average exercise price (in dollars per share)		$ 78.32
Fair value assumptions method used	lattice model
Restricted Stock Units
Share-based Compensation, Aggregate Disclosures
Restricted stock units granted (in shares)		255
Restricted Stock Units Subject to Service-based Conditions
Share-based Compensation, Aggregate Disclosures
Restricted stock units granted (in shares)		113
Restricted stock units granted, fair value (in dollars per unit)		$ 79.84
Restricted Stock Units Subject to Performance/Service-based Conditions
Share-based Compensation, Aggregate Disclosures
Restricted stock units granted (in shares)		71
Restricted stock units granted, fair value (in dollars per unit)		$ 72.93
Restricted Stock Units Subject to Market/Service-based Conditions
Share-based Compensation, Aggregate Disclosures
Fair value assumptions method used		lattice valuation model
Restricted stock units granted (in shares)		71
Restricted stock units granted, fair value (in dollars per unit)		$ 103.66

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ in Millions	1 Months Ended		9 Months Ended
	Mar. 31, 2016USD ($)	Feb. 29, 2016USD ($)location	Jul. 31, 2016USD ($)	Oct. 31, 2015USD ($)	Jul. 31, 2015USD ($)	Oct. 31, 2014USD ($)
Acquisitions
Acquisitions of businesses, net of cash acquired			$ 198.9
The Preliminary Fair Values Assigned to the Assets and Liabilities Related to the Acquired Entity
Goodwill			823.6	$ 726	$ 715.9	$ 791
Redeemable noncontrolling interest			$ 14.4
Monosem
Acquisitions
Acquisitions of businesses, net of cash acquired		$ 146
Cash acquired		20
The Preliminary Fair Values Assigned to the Assets and Liabilities Related to the Acquired Entity
Trade accounts and notes receivable – net		5
Other receivables		2
Inventories		29
Property and equipment – net		24
Goodwill		62
Other intangible assets – net		42
Other assets		23
Total assets		187
Accounts payable and accrued expenses		22
Deferred tax liabilities		19
Total liabilities		$ 41
Weighted average amortization period (in years)		9 years
Monosem | FRANCE
Acquisitions
Facilities | location		4
Monosem | U.S.
Acquisitions
Facilities | location		2
Hagie Manufacturing Company, LLC
Acquisitions
Percentage of business interest acquired	80.00%
Acquisitions of businesses, net of cash acquired	$ 53
Cash acquired	3
The Preliminary Fair Values Assigned to the Assets and Liabilities Related to the Acquired Entity
Trade accounts and notes receivable – net	2
Inventories	33
Property and equipment – net	18
Goodwill	32
Other intangible assets – net	22
Other assets	3
Total assets	110
Total liabilities	43
Redeemable noncontrolling interest	$ 14
Weighted average amortization period (in years)	8 years

DISTRIBUTION AND PARTIAL SALE76

DISTRIBUTION AND PARTIAL SALE OF INVESTMENT - SITEONE (Details) - SiteOne Landscapes Supply, LLC $ in Millions	1 Months Ended
	May 31, 2016USD ($)
Equity Method Investments
Distribution received from SiteOne (unconsolidated affiliate)	$ 60
Return on investment distribution (cash flow - operating activities)	4
Return of investment distribution (cash flow - investing activities)	$ 56
Sale of interest in SiteOne (as a percent)	30.00%
Sale of investment in IPO, gross proceeds	$ 81
Gain on sale of partial interest, pretax	75
Gain on sale of partial interest, after-tax	$ 47
Ownership interest in SiteOne (as a percent)	24.00%

DISPOSITION - CROP INSURANCE 77

DISPOSITION - CROP INSURANCE OPERATIONS (Details) - Crop Insurance Operations - Disposal Group $ in Millions	1 Months Ended
	Mar. 31, 2015USD ($)
Dispositions
Proceeds from sale of Crop Insurance Operations	$ 154
Cash and cash equivalents sold	5
Gain from sale of Crop Insurance Operations, pretax, recorded in Other Income	42
Gain from sale of Crop Insurance Operations, after-tax, recorded in Other Income	$ 40

SUPPLEMENTAL CONSOLIDATING DA78

SUPPLEMENTAL CONSOLIDATING DATA - Statement of Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Net Sales and Revenues
Net sales	$ 5,861.4	$ 6,839.5	$ 17,737.1	$ 19,843.1
Finance and interest income	638.5	596.7	1,849	1,766.7
Other income	224.5	157.5	538.3	537.7
Total	6,724.4	7,593.7	20,124.4	22,147.5
Costs and Expenses
Cost of sales	4,494.2	5,358	13,865.3	15,472.8
Research and development expenses	338.8	346.8	1,003.1	1,021.1
Selling, administrative and general expenses	709	755.3	2,016.8	2,154.2
Interest expense	200.7	171.5	564.9	517.1
Other operating expenses	276.6	223.6	884.7	659.1
Total	6,019.3	6,855.2	18,334.8	19,824.3
Income of Consolidated Group before Income Taxes	705.1	738.5	1,789.6	2,323.2
Provision for income taxes	226.5	241	559.9	735.6
Income of Consolidated Group	478.6	497.5	1,229.7	1,587.6
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Net Income	488.6	511.7	1,237	1,589.4
Less: Net income (loss) attributable to noncontrolling interests	(0.2)	0.1	(1.6)	0.6
Net Income Attributable to Deere & Company	488.8	511.6	1,238.6	1,588.8
Equipment Operations
Net Sales and Revenues
Net sales	5,861.4	6,839.5	17,737.1	19,843.1
Finance and interest income	15.1	20.8	45.8	58.8
Other income	216.9	140.8	497.1	451.2
Total	6,093.4	7,001.1	18,280	20,353.1
Costs and Expenses
Cost of sales	4,494.6	5,358.4	13,866.7	15,474.2
Research and development expenses	338.8	346.8	1,003.1	1,021.1
Selling, administrative and general expenses	573.1	633.5	1,642.6	1,794.1
Interest expense	65.9	69.6	195.7	208
Interest compensation to Financial Services	61.6	56.7	168.2	156
Other operating expenses	45.6	36.3	158.2	112.6
Total	5,579.6	6,501.3	17,034.5	18,766
Income of Consolidated Group before Income Taxes	513.8	499.8	1,245.5	1,587.1
Provision for income taxes	160.9	155.5	372.5	478.5
Income of Consolidated Group	352.9	344.3	873	1,108.6
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates	135.7	167.4	364	480.8
Net Income	488.6	511.7	1,237	1,589.4
Less: Net income (loss) attributable to noncontrolling interests	(0.2)	0.1	(1.6)	0.6
Net Income Attributable to Deere & Company	488.8	511.6	1,238.6	1,588.8
Equipment Operations | Financial Services
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates	125.9	153.4	357.9	480
Equipment Operations | Other
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates	9.8	14	6.1	0.8
Financial Services
Net Sales and Revenues
Finance and interest income	691	644.3	1,988.9	1,900.9
Other income	27.6	51.2	143.9	201.4
Total	718.6	695.5	2,132.8	2,102.3
Costs and Expenses
Selling, administrative and general expenses	137.6	123.9	379.6	366.9
Interest expense	140.8	113.6	386.7	346
Other operating expenses	248.9	219.3	822.4	653.3
Total	527.3	456.8	1,588.7	1,366.2
Income of Consolidated Group before Income Taxes	191.3	238.7	544.1	736.1
Provision for income taxes	65.6	85.5	187.4	257.1
Income of Consolidated Group	125.7	153.2	356.7	479
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates	0.2	0.2	1.2	1
Net Income	125.9	153.4	357.9	480
Net Income Attributable to Deere & Company	125.9	153.4	357.9	480
Financial Services | Financial Services
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates	$ 0.2	$ 0.2	$ 1.2	$ 1

SUPPLEMENTAL CONSOLIDATING DA79

SUPPLEMENTAL CONSOLIDATING DATA - Condensed Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Oct. 31, 2014
ASSETS
Cash and cash equivalents	$ 4,321	$ 4,162.2	$ 4,130.8	$ 3,787
Marketable securities	468.9	437.4	421.1
Receivables from unconsolidated subsidiaries and affiliates	18.7	33.3	43.2
Trade accounts and notes receivable - net	3,924.6	3,051.1	4,220.4
Financing receivables - net	22,594.8	24,809	24,973.4
Financing receivables securitized - net	5,947.4	4,834.6	4,737.8
Other receivables	811.9	991.2	823.1
Equipment on operating leases - net	5,602.7	4,970.4	4,426
Inventories	3,851.3	3,817	4,319
Property and equipment - net	5,047.3	5,181.5	5,126.4
Investments in unconsolidated subsidiaries and affiliates	246.2	303.5	310.6
Goodwill	823.6	726	715.9	791
Other intangible assets - net	109.5	63.6	57.8
Retirement benefits	323.1	215.6	335
Deferred income taxes	2,612.6	2,767.3	2,705
Other assets	1,902.8	1,583.9	1,586.7
Total Assets	58,606.4	57,947.6	58,932.2
LIABILITIES
Short-term borrowings	7,362.1	8,426.6	9,347.9
Short-term securitization borrowings	5,728.9	4,590	4,595.4
Payables to unconsolidated subsidiaries and affiliates	74.2	80.6	73.7
Accounts payable and accrued expenses	6,799.5	7,311.5	7,235.8
Deferred income taxes	172.3	160.8	150.9
Long-term borrowings	24,128.4	23,832.8	23,200.9
Retirement benefits and other liabilities	6,886.9	6,787.7	6,602.6
Total liabilities	51,152.3	51,190	51,207.2
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest (Note 18)	14.4
STOCKHOLDERS' EQUITY
Common stock, $1 par value (issued shares at July 31, 2016 - 536,431,204)	$ 3,883.9	3,825.6	3,806.5
Common stock, par value (in dollars per share)	$ 1
Common stock, issued shares	536,431,204
Common stock in treasury	$ (15,688.3)	(15,497.6)	(14,562.5)
Retained earnings	23,815	23,144.8	22,986.5
Accumulated other comprehensive income (loss)	(4,582.2)	(4,729.4)	(4,507.4)
Total Deere & Company stockholders' equity	7,428.4	6,743.4	7,723.1
Noncontrolling interests	11.3	14.2	1.9
Total stockholders' equity	7,439.7	6,757.6	7,725	9,065.5
Total Liabilities and Stockholders' Equity	58,606.4	57,947.6	58,932.2
Equipment Operations
ASSETS
Cash and cash equivalents	3,134.9	2,900	2,907.1	2,569.2
Marketable securities	40.2	47.7	47.4
Receivables from unconsolidated subsidiaries and affiliates	2,429.5	2,428.7	2,941.5
Trade accounts and notes receivable - net	535.4	485.2	581.2
Financing receivables - net	0.4	0.9	4.7
Other receivables	726.6	849.5	779.2
Inventories	3,851.3	3,817	4,319
Property and equipment - net	4,994.7	5,126.2	5,072.4
Investments in unconsolidated subsidiaries and affiliates	4,752.9	4,817.6	4,923.8
Goodwill	823.6	726	715.9
Other intangible assets - net	109.5	63.6	57.8
Retirement benefits	319	211.9	335.5
Deferred income taxes	3,173.2	3,092	3,028.6
Other assets	860.1	807.3	859.4
Total Assets	25,751.3	25,373.6	26,573.5
LIABILITIES
Short-term borrowings	261.7	464.3	650.8
Payables to unconsolidated subsidiaries and affiliates	74.2	80.6	73.7
Accounts payable and accrued expenses	6,470.8	6,801.2	7,025.1
Deferred income taxes	97.3	86.8	79.9
Long-term borrowings	4,578.6	4,460.6	4,475.4
Retirement benefits and other liabilities	6,814.6	6,722.5	6,543.6
Total liabilities	18,297.2	18,616	18,848.5
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest (Note 18)	14.4
STOCKHOLDERS' EQUITY
Common stock, $1 par value (issued shares at July 31, 2016 - 536,431,204)	$ 3,883.9	$ 3,825.6	$ 3,806.5
Common stock, par value (in dollars per share)	$ 1	$ 1	$ 1
Common stock, issued shares	536,431,204
Common stock in treasury	$ (15,688.3)	$ (15,497.6)	$ (14,562.5)
Retained earnings	23,815	23,144.8	22,986.5
Accumulated other comprehensive income (loss)	(4,582.2)	(4,729.4)	(4,507.4)
Total Deere & Company stockholders' equity	7,428.4	6,743.4	7,723.1
Noncontrolling interests	11.3	14.2	1.9
Total stockholders' equity	7,439.7	6,757.6	7,725
Total Liabilities and Stockholders' Equity	25,751.3	25,373.6	26,573.5
Financial Services
ASSETS
Cash and cash equivalents	1,186.1	1,262.2	1,223.7	$ 1,217.8
Marketable securities	428.7	389.7	373.7
Trade accounts and notes receivable - net	4,560.6	3,553.1	4,780.9
Financing receivables - net	22,594.4	24,808.1	24,968.7
Financing receivables securitized - net	5,947.4	4,834.6	4,737.8
Other receivables	103	152.9	76.2
Equipment on operating leases - net	5,602.7	4,970.4	4,426
Property and equipment - net	52.6	55.3	54
Investments in unconsolidated subsidiaries and affiliates	11.6	10.5	10.2
Retirement benefits	21.8	25	27.1
Deferred income taxes	71.9	67.9	61.6
Other assets	1,045.8	779.1	730
Total Assets	41,626.6	40,908.8	41,469.9
LIABILITIES
Short-term borrowings	7,100.4	7,962.3	8,697.1
Short-term securitization borrowings	5,728.9	4,590	4,595.4
Payables to unconsolidated subsidiaries and affiliates	2,410.7	2,395.4	2,898.3
Accounts payable and accrued expenses	1,521	1,511.2	1,387.3
Deferred income taxes	707.5	466.6	456.2
Long-term borrowings	19,549.8	19,372.2	18,725.5
Retirement benefits and other liabilities	90	86.4	86.7
Total liabilities	37,108.3	36,384.1	36,846.5
Commitments and contingencies (Note 14)
STOCKHOLDERS' EQUITY
Common stock, $1 par value (issued shares at July 31, 2016 - 536,431,204)	$ 2,071.9	$ 2,050.8	$ 2,051.3
Common stock, par value (in dollars per share)	$ 1	$ 1	$ 1
Common stock, issued shares	536,431,204
Retained earnings	$ 2,710.5	$ 2,764.8	$ 2,812.2
Accumulated other comprehensive income (loss)	(264.1)	(290.9)	(240.1)
Total Deere & Company stockholders' equity	4,518.3	4,524.7	4,623.4
Total stockholders' equity	4,518.3	4,524.7	4,623.4
Total Liabilities and Stockholders' Equity	$ 41,626.6	$ 40,908.8	$ 41,469.9

SUPPLEMENTAL CONSOLIDATING DA80

SUPPLEMENTAL CONSOLIDATING DATA - Statement of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Cash Flows from Operating Activities
Net income (loss)	$ 488.6	$ 511.7	$ 1,237	$ 1,589.4
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses			70.3	35.4
Provision for depreciation and amortization			1,158.4	1,029.2
Impairment charges			49.7
Undistributed earnings of unconsolidated subsidiaries and affiliates			0.7	(5.2)
Provision (credit) for deferred income taxes			155.5	73
Changes in assets and liabilities:
Trade receivables			(588.1)	(598)
Insurance receivables				333.4
Inventories			(380.1)	(941.5)
Accounts payable and accrued expenses			(461.9)	(594.6)
Accrued income taxes payable/receivable			78.3	(58.1)
Retirement benefits			145.8	293.4
Other			(197.5)	(12.3)
Net cash provided by (used for) operating activities			1,319.9	1,191.8
Cash Flows from Investing Activities
Proceeds from maturities and sales of marketable securities			139.2	833
Proceeds from sales of equipment on operating leases			916.6	773.7
Proceeds from sales of business and unconsolidated affiliates, net of cash sold			81.1	149.2
Purchases of marketable securities			(149.9)	(100.8)
Purchases of property and equipment			(387)	(461.4)
Cost of equipment on operating leases acquired			(1,730.6)	(1,355.7)
Acquisitions of businesses, net of cash acquired			(198.9)
Other			77.8	(23.4)
Net cash provided by (used for) investing activities			(362.4)	169.6
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings			(133.7)	1,805.2
Proceeds from long-term borrowings			4,115.2	3,639.8
Payments of long-term borrowings			(3,977.3)	(3,980.1)
Proceeds from issuance of common stock			17.5	170.4
Repurchases of common stock			(205.4)	(1,833.9)
Dividends paid			(572.6)	(617.9)
Excess tax benefits from share-based compensation			3.8	18.5
Other			(53.6)	(56.9)
Net cash provided by (used for) financing activities			(806.1)	(854.9)
Effect of Exchange Rate Changes on Cash and Cash Equivalents			7.4	(162.7)
Net Increase (Decrease) in Cash and Cash Equivalents			158.8	343.8
Cash and Cash Equivalents at Beginning of Period			4,162.2	3,787
Cash and Cash Equivalents at End of Period	4,321	4,130.8	4,321	4,130.8
Equipment Operations
Cash Flows from Operating Activities
Net income (loss)	488.6	511.7	1,237	1,589.4
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses			5.3	2.1
Provision for depreciation and amortization			613.7	605.6
Undistributed earnings of unconsolidated subsidiaries and affiliates			55.9	(4.9)
Provision (credit) for deferred income taxes			(77)	(39.6)
Changes in assets and liabilities:
Trade receivables			(57.5)	37.2
Inventories			59.5	(473.2)
Accounts payable and accrued expenses			(285.6)	(113.4)
Accrued income taxes payable/receivable			72.4	(82.9)
Retirement benefits			139.6	282.1
Other			(118.8)	145.8
Net cash provided by (used for) operating activities			1,644.5	1,948.2
Cash Flows from Investing Activities
Proceeds from maturities and sales of marketable securities			75.6	700.1
Proceeds from sales of business and unconsolidated affiliates, net of cash sold			81.1
Purchases of marketable securities			(61)	(49.1)
Purchases of property and equipment			(385.4)	(458.1)
Acquisitions of businesses, net of cash acquired			(198.9)
Other			(24.2)	2.2
Net cash provided by (used for) investing activities			(512.8)	195.1
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings			(170)	318.5
Change in intercompany receivables/payables			(12.1)	447.2
Proceeds from long-term borrowings			139.4	6.7
Payments of long-term borrowings			(70.3)	(147.1)
Proceeds from issuance of common stock			17.5	170.4
Repurchases of common stock			(205.4)	(1,833.9)
Dividends paid			(572.6)	(617.9)
Excess tax benefits from share-based compensation			3.8	18.5
Other			(28.7)	(38.1)
Net cash provided by (used for) financing activities			(898.4)	(1,675.7)
Effect of Exchange Rate Changes on Cash and Cash Equivalents			1.6	(129.7)
Net Increase (Decrease) in Cash and Cash Equivalents			234.9	337.9
Cash and Cash Equivalents at Beginning of Period			2,900	2,569.2
Cash and Cash Equivalents at End of Period	3,134.9	2,907.1	3,134.9	2,907.1
Financial Services
Cash Flows from Operating Activities
Net income (loss)	125.9	153.4	357.9	480
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses			65	33.3
Provision for depreciation and amortization			615.5	503.2
Impairment charges			49.7
Undistributed earnings of unconsolidated subsidiaries and affiliates			(1)	(0.8)
Provision (credit) for deferred income taxes			232.5	112.6
Changes in assets and liabilities:
Insurance receivables				333.4
Accounts payable and accrued expenses			7.8	(322.3)
Accrued income taxes payable/receivable			5.9	24.8
Retirement benefits			6.2	11.3
Other			56.8	(25.5)
Net cash provided by (used for) operating activities			1,396.3	1,150
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)			12,208.1	12,516.5
Proceeds from maturities and sales of marketable securities			63.6	132.9
Proceeds from sales of equipment on operating leases			916.6	773.7
Proceeds from sales of business and unconsolidated affiliates, net of cash sold				149.2
Cost of receivables acquired (excluding trade and wholesale)			(11,236.7)	(12,063.2)
Purchases of marketable securities			(88.9)	(51.7)
Purchases of property and equipment			(1.6)	(3.3)
Cost of equipment on operating leases acquired			(2,324.8)	(1,988.6)
Decrease (increase) in trade and wholesale receivables			(786.5)	(924)
Other			70.7	(22.1)
Net cash provided by (used for) investing activities			(1,179.5)	(1,480.6)
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings			36.3	1,486.7
Change in intercompany receivables/payables			12.1	(447.2)
Proceeds from long-term borrowings			3,975.8	3,633.1
Payments of long-term borrowings			(3,907)	(3,833)
Dividends paid			(412.1)	(479.6)
Other			(3.8)	9.5
Net cash provided by (used for) financing activities			(298.7)	369.5
Effect of Exchange Rate Changes on Cash and Cash Equivalents			5.8	(33)
Net Increase (Decrease) in Cash and Cash Equivalents			(76.1)	5.9
Cash and Cash Equivalents at Beginning of Period			1,262.2	1,217.8
Cash and Cash Equivalents at End of Period	$ 1,186.1	$ 1,223.7	$ 1,186.1	$ 1,223.7