Deere & Company (DE) 10-Q 2 Jun 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Apr. 30, 2017shares
Document and Entity Information
Entity Registrant Name	DEERE & CO
Entity Central Index Key	315,189
Document Type	10-Q
Document Period End Date	Apr. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--10-29
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	319,862,099
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

STATEMENT OF CONSOLIDATED INCOM

STATEMENT OF CONSOLIDATED INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Net Sales and Revenues
Net sales	$ 7,259.8	$ 7,106.6	$ 11,957.7	$ 11,875.8
Finance and interest income	665	611.4	1,320.5	1,210.5
Other income	362.2	157.4	634	313.6
Total	8,287	7,875.4	13,912.2	13,399.9
Costs and Expenses
Cost of sales	5,444.7	5,531	9,241.5	9,371.1
Research and development expenses	324.4	345	635.3	664.3
Selling, administrative and general expenses	775.3	714.8	1,434.7	1,307.7
Interest expense	226.9	191	434.9	364.3
Other operating expenses	346.4	360.3	668.5	608
Total	7,117.7	7,142.1	12,414.9	12,315.4
Income of Consolidated Group before Income Taxes	1,169.3	733.3	1,497.3	1,084.5
Provision for income taxes	371.9	237.8	506.4	333.3
Income of Consolidated Group	797.4	495.5	990.9	751.2
Equity in income (loss) of unconsolidated affiliates	4.8	(0.8)	4.5	(2.7)
Net Income	802.2	494.7	995.4	748.5
Less: Net loss attributable to noncontrolling interests	(0.2)	(0.7)	(0.8)	(1.3)
Net Income Attributable to Deere & Company	$ 802.4	$ 495.4	$ 996.2	$ 749.8
Per Share Data
Basic (in dollars per share)	$ 2.51	$ 1.57	$ 3.13	$ 2.37
Diluted (in dollars per share)	$ 2.49	$ 1.56	$ 3.10	$ 2.36
Average Shares Outstanding
Basic (in shares)	319.2	315.1	317.9	315.8
Diluted (in shares)	322.5	316.5	321.1	317.1

STATEMENT OF CONSOLIDATED COMPR

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME
Net Income	$ 802.2	$ 494.7	$ 995.4	$ 748.5
Other Comprehensive Income (Loss), Net of Income Taxes
Retirement benefits adjustment	33.6	19.1	76.6	57.2
Cumulative translation adjustment	16.7	311.8	(1)	153.8
Unrealized gain on derivatives		1	2	1
Unrealized gain (loss) on investments	58.7	9.5	52.9	(1.3)
Other Comprehensive Income (Loss), Net of Income Taxes	109	341.4	130.5	210.7
Comprehensive Income of Consolidated Group	911.2	836.1	1,125.9	959.2
Less: Comprehensive loss attributable to noncontrolling interests	(0.2)	(0.6)	(0.8)	(1.2)
Comprehensive Income Attributable to Deere & Company	$ 911.4	$ 836.7	$ 1,126.7	$ 960.4

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Apr. 30, 2017	Oct. 30, 2016	May 01, 2016	Nov. 01, 2015
ASSETS
Cash and cash equivalents	$ 4,525.8	$ 4,335.8	$ 4,133.2	$ 4,162.2
Marketable securities	546.3	453.5	475.5
Receivables from unconsolidated affiliates	34.9	16.5	81.3
Trade accounts and notes receivable - net	4,482.3	3,011.3	4,898.9
Financing receivables - net	23,301.1	23,702.3	23,415.3
Financing receivables securitized - net	4,281.8	5,126.5	4,734.7
Other receivables	931.3	1,018.5	876.2
Equipment on operating leases - net	5,923.9	5,901.5	5,455.5
Inventories	4,114.8	3,340.5	4,061
Property and equipment - net	4,959.9	5,170.6	5,079.7
Investments in unconsolidated affiliates	215.7	232.6	236.7
Goodwill	806.2	815.7	835	726
Other intangible assets - net	90.8	104.1	120.5
Retirement benefits	176.2	93.6	285.4
Deferred income taxes	3,041.9	2,964.4	2,681.9
Other assets	1,535.9	1,631.1	1,745.4
Total Assets	58,968.8	57,918.5	59,116.2
LIABILITIES
Short-term borrowings	7,963.6	6,910.7	8,574.3
Short-term securitization borrowings	4,224.6	4,997.8	4,636.7
Payables to unconsolidated affiliates	101.6	81.6	109.5
Accounts payable and accrued expenses	7,215.9	7,240.1	6,980.8
Deferred income taxes	169	166	180.3
Long-term borrowings	23,253.1	23,703	24,587.7
Retirement benefits and other liabilities	8,333.2	8,274.5	6,856.2
Total liabilities	51,261	51,373.7	51,925.5
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest	14	14	14
STOCKHOLDERS' EQUITY
Common stock, $1 par value (issued shares at April 30, 2017 – 536,431,204)	4,176.8	3,911.8	3,862
Common stock in treasury	(15,521)	(15,677.1)	(15,693.6)
Retained earnings	24,524.4	23,911.3	23,514.7
Accumulated other comprehensive income (loss)	(5,495.5)	(5,626)	(4,518.8)
Total Deere & Company stockholders' equity	7,684.7	6,520	7,164.3
Noncontrolling interests	9.1	10.8	12.4
Total stockholders' equity	7,693.8	6,530.8	7,176.7	$ 6,757.6
Total Liabilities and Stockholders' Equity	$ 58,968.8	$ 57,918.5	$ 59,116.2

CONDENSED CONSOLIDATED BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical)	Apr. 30, 2017$ / 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	6 Months Ended
	Apr. 30, 2017	May 01, 2016
Cash Flows from Operating Activities
Net income	$ 995.4	$ 748.5
Adjustments to reconcile net income to net cash used for operating activities:
Provision for credit losses	32.6	35.1
Provision for depreciation and amortization	843.1	761.8
Impairment charges		49.7
Share-based compensation expense	32.3	32
Gain on sale of unconsolidated affiliates and investments	(281.4)
Undistributed earnings of unconsolidated affiliates	(3.1)	5.3
Provision (credit) for deferred income taxes	(100.4)	93.3
Changes in assets and liabilities:
Trade, notes and financing receivables related to sales	(989.5)	(1,311.5)
Inventories	(1,090.4)	(405.8)
Accounts payable and accrued expenses	103.6	(367.8)
Accrued income taxes payable/receivable	195.1	12
Retirement benefits	115.6	91.1
Other	(27.9)	(56.1)
Net cash used for operating activities	(175)	(312.4)
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)	8,228	8,120.6
Proceeds from maturities and sales of marketable securities	41.3	71.4
Proceeds from sales of equipment on operating leases	786.4	630.1
Proceeds from sales of businesses and unconsolidated affiliates, net of cash sold	113.9
Cost of receivables acquired (excluding receivables related to sales)	(7,628.6)	(6,872.9)
Purchases of marketable securities	(43.7)	(112.2)
Purchases of property and equipment	(253)	(232.6)
Cost of equipment on operating leases acquired	(925.1)	(1,204.1)
Acquisitions of businesses, net of cash acquired		(198.9)
Other	(18.7)	8.6
Net cash provided by investing activities	300.5	210
Cash Flows from Financing Activities
Increase in total short-term borrowings	183.1	38.3
Proceeds from long-term borrowings	2,661.6	3,276.6
Payments of long-term borrowings	(2,742.2)	(2,686.6)
Proceeds from issuance of common stock	383.6	11.1
Repurchases of common stock	(6.2)	(205.4)
Dividends paid	(379.5)	(383.2)
Excess tax benefits from share-based compensation	11.3	2.7
Other	(39.7)	(32.6)
Net cash provided by financing activities	72	20.9
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(7.5)	52.5
Net Increase (Decrease) in Cash and Cash Equivalents	190	(29)
Cash and Cash Equivalents at Beginning of Period	4,335.8	4,162.2
Cash and Cash Equivalents at End of Period	$ 4,525.8	$ 4,133.2

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 Nov. 01, 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)			749.8		(1.3)	748.5
Other comprehensive income				210.6	0.1	210.7
Repurchases of common stock		(205.4)				(205.4)
Treasury shares reissued		9.4				9.4
Dividends declared			(379.5)		(0.5)	(380)
Stock options and other	36.4		(0.4)		(0.1)	35.9
Balance at May. 01, 2016	3,862	(15,693.6)	23,514.7	(4,518.8)	12.4	7,176.7
Increase in Redeemable Noncontrolling Interest
Acquisition						14
Redeemable Noncontrolling Interest - Balance at May. 01, 2016						14
Balance at Oct. 30, 2016	3,911.8	(15,677.1)	23,911.3	(5,626)	10.8	6,530.8
Increase (Decrease) in Stockholders' Equity
Net income (loss)			996.2		(0.8)	995.4
Other comprehensive income				130.5		130.5
Repurchases of common stock		(6.2)				(6.2)
Treasury shares reissued		162.3				162.3
Dividends declared			(382.9)		(0.7)	(383.6)
Stock options and other	265		(0.2)		(0.2)	264.6
Balance at Apr. 30, 2017	$ 4,176.8	$ (15,521)	$ 24,524.4	$ (5,495.5)	$ 9.1	7,693.8
Redeemable Noncontrolling Interest - Balance at Oct. 30, 2016						14
Redeemable Noncontrolling Interest - Balance at Apr. 30, 2017						$ 14

ORGANIZATION AND CONSOLIDATION

ORGANIZATION AND CONSOLIDATION	6 Months Ended
	Apr. 30, 2017
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 second quarter ends for fiscal year 2017 and 2016 were April 30, 2017 and May 1, 2016, respectively. Both periods contained 13 weeks.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CASH FLOW INFORMATION	6 Months Ended
	Apr. 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CASH FLOW INFORMATION
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	(2)     The 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 $319 million and $269 million in the first six months of 2017 and 2016, respectively. The Company also had accounts payable related to purchases of property and equipment of approximately $32 million and $33 million at April 30, 2017 and May 1, 2016, respectively.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	6 Months Ended
	Apr. 30, 2017
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS	(3)     New accounting standards adopted are as follows: In the first quarter of 2017, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standard Update (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 Accounting Standards Codification (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. 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 periods the 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 adoption did not have a material effect on the Company’s consolidated financial statements. In the first quarter of 2017, the Company adopted 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. As required, the presentation and disclosure requirements were adopted through retrospective application with the consolidated balance sheet and related notes in prior periods adjusted for a consistent presentation. Debt issuance costs of $63 million and $67 million at October 30, 2016 and May 1, 2016, respectively, were reclassified from other assets to borrowings in the consolidated balance sheet. In the first quarter of 2017, the Company adopted 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. The Company presents these costs in other assets and amortizes the costs ratably over the term of the line of credit arrangement, regardless of whether there are outstanding borrowings on the arrangement. The adoption did not have a material effect on the Company’s consolidated financial statements. In the first quarter of 2017, the Company prospectively adopted 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 adoption did not have a material effect on the Company’s consolidated financial statements. In the first quarter of 2017, the Company early adopted, with a prospective application, 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 the last-in, first-out method. 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. In August 2015, the FASB amended the effective date to be the first quarter of fiscal year 2019 with early adoption permitted in the first quarter of fiscal year 2018. The FASB issued several amendments clarifying various aspects of the ASU, including revenue transactions that involve a third party, goods or services that are immaterial in the context of the contract and licensing arrangements. The Company plans to adopt the ASU effective the first quarter of fiscal year 2019 using a modified retrospective method and continues to evaluate the ASU’s potential effects on the 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. The effective date will be the first quarter of fiscal year 2019. Early adoption of the provisions affecting the Company is not permitted. The ASU 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’s primary change is the requirement for lessee entities to recognize a lease liability for payments and a right of use asset during the term of operating lease arrangements. The ASU does not significantly change the lessee’s recognition, measurement, and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. 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 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. This change 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 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 will adopt the ASU in the third quarter of fiscal year 2017. If adopted in the second quarter of fiscal year 2017, net income would have increased approximately $11 million and net cash flow provided by operating activities would have increased $11 million. 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. The ASU revises the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. The ASU affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. 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 will be adopted using a retrospective transition approach. The adoption will not have a material effect on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which amends ASC 740, Income Taxes. This ASU requires that the income tax consequences of an intra-entity asset transfer other than inventory are recognized at the time of the transfer. The effective date will be the first quarter of fiscal year 2019, with early adoption permitted. The ASU will be adopted using a modified-retrospective transition approach. The adoption will not have a material effect on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash, which amends ASC 230, Statement of Cash Flows. This ASU requires that a statement of cash flows explain the change during the reporting period in the total of cash, cash equivalents, and restricted cash or restricted cash equivalents. The effective date will be the first quarter of fiscal year 2019, with early adoption permitted, and will be adopted using a retrospective transition approach. The adoption will not have a material effect on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which amends ASC 805, Business Combinations. This ASU provides further guidance on the definition of a business to determine whether transactions should be accounted for as acquisitions of assets or businesses. The effective date will be the first quarter of fiscal year 2019, with early adoption permitted in certain cases. The ASU will be adopted on a prospective basis and will not have a material effect on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which amends ASC 350, Intangibles – Goodwill and Other. This ASU simplifies the goodwill impairment test by removing the requirement to perform a hypothetical purchase price allocation when the carrying value of a reporting unit exceeds its fair value. This ASU states the impairment will be measured as the excess of the reporting unit’s carrying value over the fair value, with a limit of the goodwill allocated to that reporting unit. The effective date is fiscal year 2021, with early adoption permitted after January 1, 2017. The ASU will be adopted in the third quarter of fiscal year 2017 on a prospective basis and will not have a material effect on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amends ASC 715, Compensation – Retirement Benefits. This ASU requires that employers report only the service cost component of the total defined benefit pension and postretirement benefit cost in the same income statement lines as compensation for the participating employees. The other components of these benefit costs are reported outside of income from operations. In addition, only the service cost component of the benefit costs is eligible for capitalization. The ASU will be adopted on a retrospective basis for the presentation of the benefit costs and on a prospective basis for the capitalization of only the service cost. The effective date is fiscal year 2019, with early adoption permitted. The Company plans to adopt the ASU in the first quarter of fiscal year 2018 and is evaluating the potential effects on the consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting, which amends ASC 718, Compensation – Stock Compensation. This ASU provides guidance about which changes to the terms of a share-based payment award should be accounted for as a modification. A change to an award should be accounted for as a modification unless the fair value of the modified award is the same as the original award, the vesting conditions do not change, and the classification as an equity or liability instrument does not change. The ASU will be adopted on a prospective basis. The effective date is the first quarter of fiscal year 2019, with early adoption permitted. The adoption will not have a material effect on the Company’s consolidated financial statements.

OTHER COMPREHENSIVE INCOME ITEM

OTHER COMPREHENSIVE INCOME ITEMS	6 Months Ended
	Apr. 30, 2017
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 November 1, 2015 $ $ $ $ $ Other comprehensive income (loss) items before reclassification Amounts reclassified from accumulated other comprehensive income Net current period other comprehensive income (loss) Balance May 1, 2016 $ $ $ $ $ Balance October 30, 2016 $ $ $ $ $ Other comprehensive income (loss) items before reclassification Amounts reclassified from accumulated other comprehensive income Net current period other comprehensive income (loss) Balance April 30, 2017 $ $ $ $ $ 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 April 30, 2017 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 Six Months Ended April 30, 2017 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 May 1, 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. In the second quarter of 2017 and 2016, the noncontrolling interests’ comprehensive income (loss) was $(.2) million and $(.6) million, respectively, which consisted of net income (loss) of $(.2) million and $(.7) million and cumulative translation adjustments of none and $.1 million, respectively. Before Tax After Tax (Expense) Tax Six Months Ended May 1, 2016 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 six months of 2017 and 2016, the noncontrolling interests’ comprehensive income (loss) was $(.8) million and $(1.2) million, respectively, which consisted of net income (loss) of $(.8) million and $(1.3) million and cumulative translation adjustments of none and $.1 million, respectively.

DIVIDENDS DECLARED AND PAID

DIVIDENDS DECLARED AND PAID	6 Months Ended
	Apr. 30, 2017
DIVIDENDS DECLARED AND PAID
DIVIDENDS DECLARED AND PAID	(5)     Dividends declared and paid on a per share basis were as follows: Three Months Ended Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 Dividends declared $ .60 $ .60 $ $ Dividends paid $ .60 $ .60 $ $

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Apr. 30, 2017
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 Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 Net income attributable to Deere & Company $ $ $ $ Less income allocable to participating securities .2 .2 .3 .3 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 second quarter and first six months of 2017, .7 million shares and .5 million shares, respectively, were excluded from the computation because the incremental shares would have been antidilutive. For both periods of 2016, 11.9 million shares were excluded in the above per share computation.

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	6 Months Ended
	Apr. 30, 2017
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 Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 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 Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of actuarial loss Amortization of prior service credit Net cost $ $ $ $ During the first six months of 2017, the Company contributed approximately $33 million to its pension plans and $19 million to its other postretirement benefit plans. The Company presently anticipates contributing an additional $30 million to its pension plans and $19 million to its other postretirement benefit plans during the remainder of fiscal year 2017. These contributions include payments from Company funds to either increase plan assets or make direct payments to plan participants.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Apr. 30, 2017
INCOME TAXES
INCOME TAXES	(8)     The Company’s unrecognized tax benefits at April 30, 2017 were $192 million, compared to $198 million at October 30, 2016. The liability at April 30, 2017, October 30, 2016, and May 1, 2016 consisted of approximately $79 million, $81 million, and $75 million, respectively, which would affect the effective tax rate if the tax benefits were 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 six months of 2017 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	6 Months Ended
	Apr. 30, 2017
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 Six Months Ended April 30 May 1 % April 30 May 1 % 2017 2016 Change 2017 2016 Change Net sales and revenues: Agriculture and turf $ $ +1 $ $ +1 Construction and forestry +7 +1 Total net sales +2 +1 Financial services +10 +10 Other revenues +166 +129 Total net sales and revenues $ $ +5 $ $ +4 Operating profit: * Agriculture and turf $ $ +63 $ $ +60 Construction and forestry +46 Financial services -7 Total operating profit +50 +34 Reconciling items ** -16 +6 Income taxes +56 +52 Net income attributable to Deere & Company $ $ +62 $ $ +33 Intersegment sales and revenues: Agriculture and turf net sales $ $ +11 $ $ +6 Construction and forestry net sales Financial services -23 -13 Equipment operations outside the U.S. and Canada: Net sales $ $ +14 $ $ +13 Operating profit +69 +84 April 30 October 30 2017 2016 Identifiable assets: Agriculture and turf $ $ +10 Construction and forestry +6 Financial services Corporate Total assets $ $ +2 *   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	6 Months Ended
	Apr. 30, 2017
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: April 30, 2017 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 30, 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 $ 115 $ 57 $ 65 $ Construction and forestry 78 32 25 Other: Agriculture and turf 26 11 6 Construction and forestry 10 5 4 Total $ $ $ $ Total Total Total Financing Past Due Non-Performing Current Receivables Retail Notes: Agriculture and turf $ $ 191 $ 17,526 $ Construction and forestry 35 2,558 Other: Agriculture and turf 9 7,286 Construction and forestry 9 957 Total $ $ $ Less allowance for credit losses 176 Total financing receivables – net $ May 1, 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 $ 137 $ 70 $ 71 $ Construction and forestry 79 29 28 Other: Agriculture and turf 28 12 33 Construction and forestry 10 6 2 Total $ $ $ $ Total Total Total Financing Past Due Non-Performing Current Receivables Retail Notes: Agriculture and turf $ $ 129 $ 17,436 $ Construction and forestry 32 2,556 Other: Agriculture and turf 12 6,671 Construction and forestry 23 951 Total $ $ $ Less allowance for credit losses 165 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 April 30, 2017 Revolving Retail Charge Notes Accounts Other Total Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries End of period balance * $ $ $ $ Six Months Ended April 30, 2017 Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries End of period balance * $ $ $ $ Financing receivables: End of period balance $ $ $ $ Balance individually evaluated ** $ $ $ $ Three Months Ended May 1, 2016 Revolving Retail Charge Notes Accounts Other Total Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries Translation adjustments End of period balance * $ 102 $ 40 $ 23 $ Six Months Ended May 1, 2016 Allowance: Beginning of period balance $ $ $ $ Provision 17 13 2 Write-offs (19) (22) (1) Recoveries 5 9 Translation adjustments 4 End of period balance * $ 102 $ 40 $ 23 $ Financing receivables: End of period balance $ 20,567 $ 2,636 $ 5,112 $ Balance individually evaluated ** $ 73 $ 2 $ 26 $ *   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 April 30, 2017* Receivables with specific allowance ** $ $ $ $ Receivables without a specific allowance *** Total $ $ $ $ Agriculture and turf $ $ $ $ Construction and forestry $ $ $ $ October 30, 2016* Receivables with specific allowance ** $ $ $ $ Receivables without a specific allowance *** Total $ $ $ $ Agriculture and turf $ $ $ $ Construction and forestry $ $ $ $ May 1, 2016* 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 six months of 2017, the Company identified 226 financing receivable contracts, primarily retail notes, as troubled debt restructurings with aggregate balances of $5.2 million pre-modification and $4.2 million post-modification. During the first six months of 2016, there were 46 financing receivable contracts, primarily wholesale receivables, identified as troubled debt restructurings with aggregate balances of $17.6 million pre-modification and $17.1 million post-modification. During these same periods, there were no significant troubled debt restructurings that subsequently defaulted and were written off. At April 30, 2017, the Company had commitments to lend approximately $14 million to borrowers whose accounts were modified in troubled debt restructurings.

SECURITIZATION OF FINANCING REC

SECURITIZATION OF FINANCING RECEIVABLES	6 Months Ended
	Apr. 30, 2017
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 $2,589 million, $2,718 million, and $2,782 million at April 30, 2017, October 30, 2016, and May 1, 2016, respectively. The liabilities (short-term securitization borrowings and accrued interest) of these SPEs totaled $2,522 million, $2,655 million, and $2,707 million at April 30, 2017, October 30, 2016, and May 1, 2016, respectively. 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 $413 million, $663 million, and $271 million at April 30, 2017, October 30, 2016, and May 1, 2016, respectively. The liabilities (short-term securitization borrowings and accrued interest) were $390 million, $616 million, and $254 million at April 30, 2017, October 30, 2016, and May 1, 2016, 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 $1,395 million, $1,861 million, and $1,787 million at April 30, 2017, October 30, 2016, and May 1, 2016, respectively. The liabilities (short-term securitization borrowings, and accrued interest) related to these conduits were $1,315 million, $1,729 million, and $1,678 million at April 30, 2017, October 30, 2016, and May 1, 2016, 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: April 30, 2017 Carrying value of liabilities $ Maximum exposure to loss The total assets of unconsolidated VIEs related to securitizations were approximately $52 billion at April 30, 2017. The components of consolidated restricted assets related to secured borrowings in securitization transactions follow in millions of dollars: April 30 October 30 May 1 2017 2016 2016 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: April 30 October 30 May 1 2017 2016 2016 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 April 30, 2017, the maximum remaining term of all restricted securitized retail notes was approximately six years.

INVENTORIES

INVENTORIES	6 Months Ended
	Apr. 30, 2017
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: April 30 October 30 May 1 2017 2016 2016 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	6 Months Ended
	Apr. 30, 2017
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 November 1, 2015 $ $ $ Acquisitions Translation adjustments Goodwill at May 1, 2016 $ $ $ Goodwill at October 30, 2016 $ $ $ Translation adjustments and other Goodwill at April 30, 2017 $ $ $ 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 * April 30 October 30 May 1 (Years) 2017 2016 2016 Amortized intangible assets: Customer lists and relationships 12 $ $ $ Technology, patents, trademarks, and other 14 Total at cost Less accumulated amortization ** Other intangible assets – net $ $ $ *    Weighted-averages **   Accumulated amortization at April 30, 2017, October 30, 2016, and May 1, 2016 for customer lists and relationships totaled $15 million, $11 million, and $10 million and technology, patents, trademarks, and other totaled $62 million, $58 million, and $51 million, respectively. The amortization of other intangible assets in the second quarter and the first six months of 2017 was $4 million and $9 million and for 2016 was $3 million and $6 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: remainder of 2017 – $9, 2018 – $14, 2019 – $13, 2020 – $10, and 2021 – $8.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Apr. 30, 2017
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 $444 million and $467 million at April 30, 2017 and May 1, 2016, respectively. A reconciliation of the changes in the warranty liability and unearned premiums in millions of dollars follows: Three Months Ended Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 Beginning of period balance $ $ $ $ Payments Amortization of premiums received Accruals for warranties Premiums received Foreign exchange End of period balance $ $ $ $ At April 30, 2017, the Company had approximately $143 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 April 30, 2017, the Company had accrued losses of approximately $3 million under these agreements. The maximum remaining term of the receivables guaranteed at April 30, 2017 was approximately four years. At April 30, 2017, the Company had commitments of approximately $185 million for the construction and acquisition of property and equipment. Also, at April 30, 2017, the Company had restricted assets of $95 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 $70 million at April 30, 2017, for which it believes the probability for payment is substantially remote. The accrued liability for these contingencies was not material at April 30, 2017. 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, employment, patent, and trademark 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	6 Months Ended
	Apr. 30, 2017
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	(15)    Fa 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: April 30, 2017 October 30, 2016 May 1, 2016 Carrying Fair Carrying Fair Carrying Fair 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: April 30 October 30 May 1 2017* 2016* 2016* Marketable securities U.S. equity securities and funds $ $ $ 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 Cross-currency interest rate contracts Total liabilities $ $ $ *    Measurements above were Level 2 measurements except for Level 1 measurements of the U.S. equity securities and funds of $135 million, $45 million, and $44 million at April 30, 2017, October 30, 2016, and May 1, 2016, respectively; the fixed income fund of $15 million, $15 million, and $3 million at April 30, 2017; October 30, 2016, and May 1, 2016, respectively; and U.S. government debt securities of $46 million, $53 million, and $38 million at April 30, 2017, October 30, 2016, and May 1, 2016, respectively. In addition, $23 million, $28 million, and $40 million of the international debt securities were Level 3 measurements at April 30, 2017, October 30, 2016, and May 1, 2016. There were no transfers between Level 1 and Level 2 during the first six months of 2017 or 2016. **   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 April 30, 2017 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 Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 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 Six Months Ended April 30 October 30 May 1 April 30 May 1 April 30 May 1 2017 2016 2016 2017 2016 2017 2016 Equipment on operating leases – net $ 654 $ 725 $ 26 $ 30 Property and equipment – net $ 31 Investments in unconsolidated affiliates $ 1 Other assets $ 184 $ 166 $ 11 $ 20 * 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 the 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 are measured at the lower of the carrying amount, or fair value. The valuations are based on a cost approach. The inputs include replacement cost estimates adjusted for physical deterioration and economic obsolescence. Investment in Unconsolidated Affiliates – Other than temporary impairments for investments are measured as the difference between the implied fair value and the carrying value of the investments. The estimated fair value is determined by an income approach (discounted cash flows), which includes inputs such as interest rates and margins. Other Assets – The impairments are measured at the lower of the carrying amount or fair value. The valuations are based on a market approach. The inputs include sales of comparable assets.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Apr. 30, 2017
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 April 30, 2017, October 30, 2016, and May 1, 2016 were $1,600 million, $1,600 million, and $1,600 million, respectively. The notional amounts of cross-currency interest rate contracts at April 30, 2017, October 30, 2016, and May 1, 2016 were $32 million, $42 million, and $51 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 gain recorded in OCI at April 30, 2017 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 $1 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 April 30, 2017, October 30, 2016, and May 1, 2016 were $7,605 million, $8,844 million, and $9,923 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 none and a loss of $1 million during the second quarter of 2017 and 2016, respectively, and were a gain of $2 million and a loss of $1 million during the first six months of 2017 and 2016. 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 Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 Interest rate contracts * $ $ $ $ Borrowings ** *   Includes changes in fair values of interest rate contracts excluding **   Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $61 million and $75 million during the second quarter of 2017 and 2016, respectively, and $126 million and $142 million during the first six months of 2017 and 2016, 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 April 30, 2017, October 30, 2016, and May 1, 2016 were $5,783 million, $6,060 million, and $6,524 million, the foreign exchange contracts were $4,600 million, $3,919 million, and $3,894 million, and the cross-currency interest rate contracts were $76 million, $63 million, and $74 million, respectively. At April 30, 2017, October 30, 2016, and May 1, 2016, there were also $366 million, $579 million, and $762 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: April 30 October 30 May 1 Other Assets 2017 2016 2016 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 derivative assets $ $ $ 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 Cross-currency interest rate contracts Total not designated Total derivative liabilities $ $ $ 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 Six Months Ended OCI April 30 May 1 April 30 May 1 Classification 2017 2016 2017 2016 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 April 30, 2017, October 30, 2016, and May 1, 2016, was $81 million, $29 million, and $32 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 April 30, 2017 Recognized Arrangements Received Net Amount Assets $ $ $ Liabilities Gross Amounts Netting Collateral October 30, 2016 Recognized Arrangements Received Net Amount Assets $ $ $ $ Liabilities Gross Amounts Netting Collateral May 1, 2016 Recognized Arrangements Received Net Amount Assets $ $ $ $ Liabilities

STOCK OPTION AND RESTRICTED STO

STOCK OPTION AND RESTRICTED STOCK AWARDS	6 Months Ended
	Apr. 30, 2017
STOCK OPTION AND RESTRICTED STOCK AWARDS
STOCK OPTION AND RESTRICTED STOCK AWARDS	(17)    In December 2016, the Company granted stock options to employees for the purchase of 718 thousand shares of common stock at an exercise price of $100.55 per share and a binomial lattice model fair value of $24.46 per share at the grant date. At April 30, 2017, options for 13.1 million shares were outstanding with a weighted-average exercise price of $80.69 per share. The Company also granted 577 thousand restricted stock units to employees and non-employee directors in the first six months of 2017, of which 463 thousand are subject to service based only conditions, 57 thousand are subject to performance/service based conditions, and 57 thousand are subject to market/service based conditions. The weighted-average fair value of the service based only units at the grant date was $100.90 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 $93.86 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 $129.70 per unit based on a lattice valuation model excluding dividends. At April 30, 2017, the Company was authorized to grant an additional 11.3 million shares related to stock option and restricted stock awards.

VOLUNTARY EMPLOYEE-SEPARATION P

VOLUNTARY EMPLOYEE-SEPARATION PROGRAMS	6 Months Ended
	Apr. 30, 2017
VOLUNTARY EMPLOYEE-SEPARATION PROGRAMS
VOLUNTARY EMPLOYEE-SEPARATION PROGRAMS	(18)    During the fourth quarter of 2016, the Company announced voluntary employee-separation programs as part of its effort to reduce operating costs. The programs provided for cash payments based on previous years of service. The expense is recorded in the period the employees accept the separation offer. The programs’ total pretax expenses are approximately $113 million, of which $11 million was recorded in the fourth quarter of 2016, $94 million was recorded in the first quarter of 2017, and $5 million was recorded in the second quarter, with $3 million to be recognized over the remainder of the fiscal year. The payments for all programs were substantially made in the first quarter of 2017. The total 2017 expenses are allocated approximately 30 percent cost of sales, 16 percent research and development, and 54 percent selling, administrative and general. In addition, the expenses are allocated 74 percent to agriculture and turf operations, 18 percent to the construction and forestry operations, and 8 percent to the financial services operations. Savings from these programs are estimated to be approximately $70 million in 2017.

DISTRIBUTION AND PARTIAL SALE O

DISTRIBUTION AND PARTIAL SALE OF INVESTMENT - SITEONE	6 Months Ended
	Apr. 30, 2017
DISTRIBUTION AND PARTIAL SALE OF INVESTMENT - SITEONE
DISTRIBUTION AND PARTIAL SALE OF INVESTMENT - SITEONE	(19)    In December 2016, the Company sold approximately 38 percent of its interest in SiteOne Landscape Supply, Inc. (SiteOne) resulting in gross proceeds of $114 million and a gain of $105 million pretax or $66 million after-tax. In April 2017, the Company sold an additional 68 percent of its then remaining interest in SiteOne resulting in gross proceeds of $184 million and a gain of $176 million pretax or $111 million after-tax. The gains in both periods were recorded in other income in the agriculture and turf operating segment. The proceeds from the April sale were received in the fiscal third quarter and were presented in other receivables at April 30, 2017. After the December sale, the Company retained approximately a 15 percent ownership interest in SiteOne and approximately a 5 percent ownership interest after the April sale. Prior to April 2017, the Company’s representation on the SiteOne board of directors allowed the Company to exercise significant influence, and therefore, the investment in SiteOne was accounted for using the equity method. In March 2017, the Company reduced its representation on the SiteOne board of directors. As a result, at April 30, 2017 the remaining investment in SiteOne of $90 million was recorded as an available for sale security and presented in marketable securities.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Apr. 30, 2017
SUBSEQUENT EVENT
SUBSEQUENT EVENT	(20)    On May 31, 2017, the Company entered into a definitive agreement to acquire the stock and certain assets for substantially all of Wirtgen Group Holding GmbH’s (Wirtgen) business operations. Wirtgen, a privately-held international company, is the leading manufacturer worldwide of road construction equipment. Headquartered in Germany, Wirtgen has six brands across the road construction sector spanning processing, mixing, paving, compaction and rehabilitation. Wirtgen sells products in more than 100 countries and has approximately 8,000 employees. The purchase price, which is payable in cash, is EUR 4,357 million (or approximately US $4,900 million based on the exchange rate as of May 25, 2017), with a portion held in escrow to secure certain indemnity obligations. In addition to the purchase price, the Company will assume substantially all liabilities and will pay Wirtgen an additional amount equal to five percent per annum multiplied by the purchase price for the period starting May 31, 2017 until the closing date (Ticking Fee). The estimated total transaction value is approximately EUR 4,600 million (or approximately US $5,200 million based on currency exchange rates as of May 25, 2017), which represents the aggregate purchase price, plus assumed net debt of Wirtgen, and the estimated ticking fee. The transaction is expected to close in the first quarter of fiscal year 2018. The Company currently expects to fund the acquisition and the transaction expenses from a combination of cash and new debt financing. The purchase is subject to regulatory approval in several jurisdictions as well as certain other customary closing conditions. Either the Company or Wirtgen may terminate the purchase agreement in the event the closing is not completed by February 28, 2018.

SUPPLEMENTAL CONSOLIDATING DATA

SUPPLEMENTAL CONSOLIDATING DATA	6 Months Ended
	Apr. 30, 2017
SUPPLEMENTAL CONSOLIDATING DATA
SUPPLEMENTAL CONSOLIDATING DATA	(21) SUPPLEMENTAL CONSOLIDATING DATA STATEMENT OF INCOME For the Three Months Ended April 30, 2017 and May 1, 2016 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2017 2016 2017 2016 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 (Loss) of Unconsolidated Financial Services .2 .2 Other Total .2 .2 Net Income Less: Net loss attributable to noncontrolling interests (.2) (.7) 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 Six Months Ended April 30, 2017 and May 1, 2016 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2017 2016 2017 2016 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 (Loss) of Unconsolidated Financial Services .8 Other Total .8 Net Income Less: Net loss attributable to noncontrolling interests (.8) 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 April 30 October 30 May 1 April 30 October 30 May 1 2017 2016 2016 2017 2016 2016 Assets Cash and cash equivalents $ $ $ $ $ $ Marketable securities Receivables from unconsolidated subsidiaries Trade accounts and notes receivable – net Financing receivables – net .4 .7 Financing receivables securitized – net Other receivables Equipment on operating leases – net Inventories Property and equipment – net Investments in unconsolidated subsidiaries 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 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 Stockholders’ Equity Common stock, $1 par value (issued shares at April 30, 2017 – 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 Six Months Ended April 30, 2017 and May 1, 2016 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2017 2016 2017 2016 Cash Flows from Operating Activities Net income $ $ $ $ Adjustments to reconcile net income to net cash provided by operating activities: Provision (credit) for credit losses (.2) Provision for depreciation and amortization Impairment charges Gain on sale of unconsolidated affiliates and investments Undistributed earnings of unconsolidated subsidiaries (.6) Provision (credit) for deferred income taxes Changes in assets and liabilities: Trade receivables Inventories Accounts payable and accrued expenses Accrued income taxes payable/receivable .2 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 businesses and unconsolidated Cost of receivables acquired (excluding trade and wholesale) Purchases of marketable securities Purchases of property and equipment (.8) (.9) Cost of equipment on operating leases acquired Increase in trade and wholesale receivables Acquisitions of businesses, net of cash acquired Other (.6) Net cash 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 (.8) 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)	6 Months Ended
	Apr. 30, 2017
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 second quarter ends for fiscal year 2017 and 2016 were April 30, 2017 and May 1, 2016, respectively. Both periods contained 13 weeks.
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	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. To determine fair value, the Company uses various methods including market and income approaches. 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)	6 Months Ended
	Apr. 30, 2017
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 November 1, 2015 $ $ $ $ $ Other comprehensive income (loss) items before reclassification Amounts reclassified from accumulated other comprehensive income Net current period other comprehensive income (loss) Balance May 1, 2016 $ $ $ $ $ Balance October 30, 2016 $ $ $ $ $ Other comprehensive income (loss) items before reclassification Amounts reclassified from accumulated other comprehensive income Net current period other comprehensive income (loss) Balance April 30, 2017 $ $ $ $ $
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 April 30, 2017 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 Six Months Ended April 30, 2017 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 May 1, 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. In the second quarter of 2017 and 2016, the noncontrolling interests’ comprehensive income (loss) was $(.2) million and $(.6) million, respectively, which consisted of net income (loss) of $(.2) million and $(.7) million and cumulative translation adjustments of none and $.1 million, respectively. Before Tax After Tax (Expense) Tax Six Months Ended May 1, 2016 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 six months of 2017 and 2016, the noncontrolling interests’ comprehensive income (loss) was $(.8) million and $(1.2) million, respectively, which consisted of net income (loss) of $(.8) million and $(1.3) million and cumulative translation adjustments of none and $.1 million, respectively.

DIVIDENDS DECLARED AND PAID (Ta

DIVIDENDS DECLARED AND PAID (Tables)	6 Months Ended
	Apr. 30, 2017
DIVIDENDS DECLARED AND PAID
Dividends Declared and Paid	Dividends declared and paid on a per share basis were as follows: Three Months Ended Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 Dividends declared $ .60 $ .60 $ $ Dividends paid $ .60 $ .60 $ $

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Apr. 30, 2017
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 Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 Net income attributable to Deere & Company $ $ $ $ Less income allocable to participating securities .2 .2 .3 .3 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)	6 Months Ended
	Apr. 30, 2017
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 Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 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 Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 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)	6 Months Ended
	Apr. 30, 2017
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 Six Months Ended April 30 May 1 % April 30 May 1 % 2017 2016 Change 2017 2016 Change Net sales and revenues: Agriculture and turf $ $ +1 $ $ +1 Construction and forestry +7 +1 Total net sales +2 +1 Financial services +10 +10 Other revenues +166 +129 Total net sales and revenues $ $ +5 $ $ +4 Operating profit: * Agriculture and turf $ $ +63 $ $ +60 Construction and forestry +46 Financial services -7 Total operating profit +50 +34 Reconciling items ** -16 +6 Income taxes +56 +52 Net income attributable to Deere & Company $ $ +62 $ $ +33 Intersegment sales and revenues: Agriculture and turf net sales $ $ +11 $ $ +6 Construction and forestry net sales Financial services -23 -13 Equipment operations outside the U.S. and Canada: Net sales $ $ +14 $ $ +13 Operating profit +69 +84 April 30 October 30 2017 2016 Identifiable assets: Agriculture and turf $ $ +10 Construction and forestry +6 Financial services Corporate Total assets $ $ +2 *   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)	6 Months Ended
	Apr. 30, 2017
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: April 30, 2017 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 30, 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 $ 115 $ 57 $ 65 $ Construction and forestry 78 32 25 Other: Agriculture and turf 26 11 6 Construction and forestry 10 5 4 Total $ $ $ $ Total Total Total Financing Past Due Non-Performing Current Receivables Retail Notes: Agriculture and turf $ $ 191 $ 17,526 $ Construction and forestry 35 2,558 Other: Agriculture and turf 9 7,286 Construction and forestry 9 957 Total $ $ $ Less allowance for credit losses 176 Total financing receivables – net $ May 1, 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 $ 137 $ 70 $ 71 $ Construction and forestry 79 29 28 Other: Agriculture and turf 28 12 33 Construction and forestry 10 6 2 Total $ $ $ $ Total Total Total Financing Past Due Non-Performing Current Receivables Retail Notes: Agriculture and turf $ $ 129 $ 17,436 $ Construction and forestry 32 2,556 Other: Agriculture and turf 12 6,671 Construction and forestry 23 951 Total $ $ $ Less allowance for credit losses 165 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 April 30, 2017 Revolving Retail Charge Notes Accounts Other Total Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries End of period balance * $ $ $ $ Six Months Ended April 30, 2017 Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries End of period balance * $ $ $ $ Financing receivables: End of period balance $ $ $ $ Balance individually evaluated ** $ $ $ $ Three Months Ended May 1, 2016 Revolving Retail Charge Notes Accounts Other Total Allowance: Beginning of period balance $ $ $ $ Provision Write-offs Recoveries Translation adjustments End of period balance * $ 102 $ 40 $ 23 $ Six Months Ended May 1, 2016 Allowance: Beginning of period balance $ $ $ $ Provision 17 13 2 Write-offs (19) (22) (1) Recoveries 5 9 Translation adjustments 4 End of period balance * $ 102 $ 40 $ 23 $ Financing receivables: End of period balance $ 20,567 $ 2,636 $ 5,112 $ Balance individually evaluated ** $ 73 $ 2 $ 26 $ *   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 April 30, 2017* Receivables with specific allowance ** $ $ $ $ Receivables without a specific allowance *** Total $ $ $ $ Agriculture and turf $ $ $ $ Construction and forestry $ $ $ $ October 30, 2016* Receivables with specific allowance ** $ $ $ $ Receivables without a specific allowance *** Total $ $ $ $ Agriculture and turf $ $ $ $ Construction and forestry $ $ $ $ May 1, 2016* 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)	6 Months Ended
	Apr. 30, 2017
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: April 30, 2017 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: April 30 October 30 May 1 2017 2016 2016 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: April 30 October 30 May 1 2017 2016 2016 Short-term securitization borrowings $ $ $ Accrued interest on borrowings Total liabilities related to restricted securitized assets $ $ $

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Apr. 30, 2017
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: April 30 October 30 May 1 2017 2016 2016 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)	6 Months Ended
	Apr. 30, 2017
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 November 1, 2015 $ $ $ Acquisitions Translation adjustments Goodwill at May 1, 2016 $ $ $ Goodwill at October 30, 2016 $ $ $ Translation adjustments and other Goodwill at April 30, 2017 $ $ $
Components of Other Intangible Assets	The components of other intangible assets were as follows in millions of dollars: Useful Lives * April 30 October 30 May 1 (Years) 2017 2016 2016 Amortized intangible assets: Customer lists and relationships 12 $ $ $ Technology, patents, trademarks, and other 14 Total at cost Less accumulated amortization ** Other intangible assets – net $ $ $ *    Weighted-averages **   Accumulated amortization at April 30, 2017, October 30, 2016, and May 1, 2016 for customer lists and relationships totaled $15 million, $11 million, and $10 million and technology, patents, trademarks, and other totaled $62 million, $58 million, and $51 million, respectively.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Apr. 30, 2017
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 Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 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)	6 Months Ended
	Apr. 30, 2017
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: April 30, 2017 October 30, 2016 May 1, 2016 Carrying Fair Carrying Fair Carrying Fair 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: April 30 October 30 May 1 2017* 2016* 2016* Marketable securities U.S. equity securities and funds $ $ $ 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 Cross-currency interest rate contracts Total liabilities $ $ $ *    Measurements above were Level 2 measurements except for Level 1 measurements of the U.S. equity securities and funds of $135 million, $45 million, and $44 million at April 30, 2017, October 30, 2016, and May 1, 2016, respectively; the fixed income fund of $15 million, $15 million, and $3 million at April 30, 2017; October 30, 2016, and May 1, 2016, respectively; and U.S. government debt securities of $46 million, $53 million, and $38 million at April 30, 2017, October 30, 2016, and May 1, 2016, respectively. In addition, $23 million, $28 million, and $40 million of the international debt securities were Level 3 measurements at April 30, 2017, October 30, 2016, and May 1, 2016. There were no transfers between Level 1 and Level 2 during the first six months of 2017 or 2016. **   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 April 30, 2017 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	Fair value, recurring Level 3 measurements from available for sale marketable securities in millions of dollars follow: Three Months Ended Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 Beginning of period balance $ $ $ $ Purchases Principal payments Change in unrealized gain (loss) End of period balance $ $ $ $
Fair Value, Nonrecurring Level 3 Measurements from Impairments	Fair value, nonrecurring Level 3 measurements from impairments in millions of dollars follow: Fair Value * Losses Three Months Ended Six Months Ended April 30 October 30 May 1 April 30 May 1 April 30 May 1 2017 2016 2016 2017 2016 2017 2016 Equipment on operating leases – net $ 654 $ 725 $ 26 $ 30 Property and equipment – net $ 31 Investments in unconsolidated affiliates $ 1 Other assets $ 184 $ 166 $ 11 $ 20 * See financing receivables with specific allowances in Note 10. Losses were not significant.

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Apr. 30, 2017
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 Six Months Ended April 30 May 1 April 30 May 1 2017 2016 2017 2016 Interest rate contracts * $ $ $ $ Borrowings ** *   Includes changes in fair values of interest rate contracts excluding **   Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $61 million and $75 million during the second quarter of 2017 and 2016, respectively, and $126 million and $142 million during the first six months of 2017 and 2016, 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: April 30 October 30 May 1 Other Assets 2017 2016 2016 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 derivative assets $ $ $ 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 Cross-currency interest rate contracts Total not designated Total derivative liabilities $ $ $
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 Six Months Ended OCI April 30 May 1 April 30 May 1 Classification 2017 2016 2017 2016 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 April 30, 2017 Recognized Arrangements Received Net Amount Assets $ $ $ Liabilities Gross Amounts Netting Collateral October 30, 2016 Recognized Arrangements Received Net Amount Assets $ $ $ $ Liabilities Gross Amounts Netting Collateral May 1, 2016 Recognized Arrangements Received Net Amount Assets $ $ $ $ Liabilities

SUPPLEMENTAL CONSOLIDATING DA42

SUPPLEMENTAL CONSOLIDATING DATA (Tables)	6 Months Ended
	Apr. 30, 2017
SUPPLEMENTAL CONSOLIDATING DATA
Supplemental Consolidating Data Income Statement	(21) SUPPLEMENTAL CONSOLIDATING DATA STATEMENT OF INCOME For the Three Months Ended April 30, 2017 and May 1, 2016 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2017 2016 2017 2016 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 (Loss) of Unconsolidated Financial Services .2 .2 Other Total .2 .2 Net Income Less: Net loss attributable to noncontrolling interests (.2) (.7) 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 Six Months Ended April 30, 2017 and May 1, 2016 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2017 2016 2017 2016 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 (Loss) of Unconsolidated Financial Services .8 Other Total .8 Net Income Less: Net loss attributable to noncontrolling interests (.8) 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 April 30 October 30 May 1 April 30 October 30 May 1 2017 2016 2016 2017 2016 2016 Assets Cash and cash equivalents $ $ $ $ $ $ Marketable securities Receivables from unconsolidated subsidiaries Trade accounts and notes receivable – net Financing receivables – net .4 .7 Financing receivables securitized – net Other receivables Equipment on operating leases – net Inventories Property and equipment – net Investments in unconsolidated subsidiaries 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 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 Stockholders’ Equity Common stock, $1 par value (issued shares at April 30, 2017 – 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 Six Months Ended April 30, 2017 and May 1, 2016 (In millions of dollars) Unaudited EQUIPMENT OPERATIONS* FINANCIAL SERVICES 2017 2016 2017 2016 Cash Flows from Operating Activities Net income $ $ $ $ Adjustments to reconcile net income to net cash provided by operating activities: Provision (credit) for credit losses (.2) Provision for depreciation and amortization Impairment charges Gain on sale of unconsolidated affiliates and investments Undistributed earnings of unconsolidated subsidiaries (.6) Provision (credit) for deferred income taxes Changes in assets and liabilities: Trade receivables Inventories Accounts payable and accrued expenses Accrued income taxes payable/receivable .2 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 businesses and unconsolidated Cost of receivables acquired (excluding trade and wholesale) Purchases of marketable securities Purchases of property and equipment (.8) (.9) Cost of equipment on operating leases acquired Increase in trade and wholesale receivables Acquisitions of businesses, net of cash acquired Other (.6) Net cash 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 (.8) 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 ACCOUN43

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CASH FLOW INFORMATION (Details) - USD ($) $ in Millions	6 Months Ended
	Apr. 30, 2017	May 01, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CASH FLOW INFORMATION
Transfer of inventory to equipment on operating leases	$ 319	$ 269
Accounts payable related to purchases of property and equipment	$ 32	$ 33

NEW ACCOUNTING STANDARDS (Detai

NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016	Oct. 30, 2016
New accounting standards adopted
Debt issuance costs		$ 67		$ 67	$ 63
Net income attributable to Deere & Company	$ 802.4	$ 495.4	$ 996.2	749.8
Cash flow provided by operating activities			(175)	$ (312.4)
ASU 2016-09 | If adopted
New accounting standards adopted
Net income attributable to Deere & Company			11
Cash flow provided by operating activities			$ 11

OTHER COMPREHENSIVE INCOME IT45

OTHER COMPREHENSIVE INCOME ITEMS - After-Tax Changes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Accumulated other comprehensive income (loss)
Balance			$ 6,530.8	$ 6,757.6
Net current period other comprehensive income (loss)	$ 109	$ 341.4	130.5	210.7
Balance	7,693.8	7,176.7	7,693.8	7,176.7
Total Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss)
Balance			(5,626)	(4,729)
Other comprehensive income (loss) items before reclassification			151	134
Amounts reclassified from accumulated other comprehensive income (loss)			(21)	76
Net current period other comprehensive income (loss)			130	210
Balance	(5,496)	(4,519)	(5,496)	(4,519)
Retirement Benefits Adjustment
Accumulated other comprehensive income (loss)
Balance			(4,409)	(3,501)
Other comprehensive income (loss) items before reclassification			(13)	(18)
Amounts reclassified from accumulated other comprehensive income (loss)			89	75
Net current period other comprehensive income (loss)	33	19	76	57
Balance	(4,333)	(3,444)	(4,333)	(3,444)
Cumulative Translation Adjustment
Accumulated other comprehensive income (loss)
Balance			(1,229)	(1,238)
Other comprehensive income (loss) items before reclassification			(1)	154
Net current period other comprehensive income (loss)	17	312	(1)	154
Balance	(1,230)	(1,084)	(1,230)	(1,084)
Unrealized Gain (Loss) on Derivatives
Accumulated other comprehensive income (loss)
Balance			1	(2)
Other comprehensive income (loss) items before reclassification	(2)			(1)
Amounts reclassified from accumulated other comprehensive income (loss)			2	2
Net current period other comprehensive income (loss)		1	2	1
Balance	3	(1)	3	(1)
Unrealized Gain (Loss) on Investments
Accumulated other comprehensive income (loss)
Balance			11	12
Other comprehensive income (loss) items before reclassification	170	9	165	(1)
Amounts reclassified from accumulated other comprehensive income (loss)			(112)	(1)
Net current period other comprehensive income (loss)	59	9	53	(2)
Balance	$ 64	$ 10	$ 64	$ 10

OTHER COMPREHENSIVE INCOME IT46

OTHER COMPREHENSIVE INCOME ITEMS - Amounts Recorded in and Reclassifications out of (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Other Comprehensive Income (Loss), Before Tax
Interest expense	$ (226.9)	$ (191)	$ (434.9)	$ (364.3)
Other operating expense	(346.4)	(360.3)	(668.5)	(608)
Other income	362.2	157.4	634	313.6
Total other comprehensive income (loss), before tax	162	353	206	244
Other Comprehensive Income (Loss), Tax (Expense) Credit
Total other comprehensive income (loss), tax (expense) credit	(53)	(12)	(76)	(34)
Other Comprehensive Income (Loss), After Tax
Other Comprehensive Income (Loss), Net of Income Taxes	109	341.4	130.5	210.7
Cumulative Translation Adjustment
Other Comprehensive Income (Loss), Before Tax
Total other comprehensive income (loss), before tax	17	312	(1)	154
Other Comprehensive Income (Loss), After Tax
Other comprehensive income (loss) before reclassification, after tax			(1)	154
Other Comprehensive Income (Loss), Net of Income Taxes	17	312	(1)	154
Unrealized Gain (Loss) on Derivatives
Other Comprehensive Income (Loss), Before Tax
Other comprehensive income (loss) before reclassification, before tax	(4)	(1)		(2)
Total other comprehensive income (loss), before tax		2	3	2
Other Comprehensive Income (Loss), Tax (Expense) Credit
Other comprehensive income (loss) before reclassification, tax (expense) credit	2	1		1
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	(2)			(1)
Reclassification from accumulated other comprehensive income, after tax			2	2
Other Comprehensive Income (Loss), Net of Income Taxes		1	2	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	2	1	5
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	(1)	(1)		(2)
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax		1	1	3
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	3	1	2	(1)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	(1)	(1)	(1)
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	2		1	(1)
Unrealized Gain (Loss) on Investments
Other Comprehensive Income (Loss), Before Tax
Other comprehensive income (loss) before reclassification, before tax	269	9	262	(1)
Total other comprehensive income (loss), before tax	93	8	84	(3)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Other comprehensive income (loss) before reclassification, tax (expense) credit	(99)		(97)
Total other comprehensive income (loss), tax (expense) credit	(34)	1	(31)	1
Other Comprehensive Income (Loss), After Tax
Other comprehensive income (loss) before reclassification, after tax	170	9	165	(1)
Reclassification from accumulated other comprehensive income, after tax			(112)	(1)
Other Comprehensive Income (Loss), Net of Income Taxes	59	9	53	(2)
Unrealized Gain (Loss) on Investments | Reclassification out of Accumulated Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss), Before Tax
Other income	(176)	(1)	(178)	(2)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	65	1	66	1
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	(111)		(112)	(1)
Retirement Benefits Adjustment
Other Comprehensive Income (Loss), Before Tax
Total other comprehensive income (loss), before tax	52	31	120	91
Other Comprehensive Income (Loss), Tax (Expense) Credit
Total other comprehensive income (loss), tax (expense) credit	(19)	(12)	(44)	(34)
Other Comprehensive Income (Loss), After Tax
Other comprehensive income (loss) before reclassification, after tax			(13)	(18)
Reclassification from accumulated other comprehensive income, after tax			89	75
Other Comprehensive Income (Loss), Net of Income Taxes	33	19	76	57
Retirement Benefits Adjustment | Pensions
Other Comprehensive Income (Loss), Before Tax
Other comprehensive income (loss) before reclassification, before tax	(8)	(14)	(9)	(17)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Other comprehensive income (loss) before reclassification, tax (expense) credit	3	5	3	6
Other Comprehensive Income (Loss), After Tax
Other comprehensive income (loss) before reclassification, after tax	(5)	(9)	(6)	(11)
Retirement Benefits Adjustment | Health Care and Life Insurance
Other Comprehensive Income (Loss), Before Tax
Other comprehensive income (loss) before reclassification, before tax	(10)	(11)	(10)	(11)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Other comprehensive income (loss) before reclassification, tax (expense) credit	3	4	3	4
Other Comprehensive Income (Loss), After Tax
Other comprehensive income (loss) before reclassification, after tax	(7)	(7)	(7)	(7)
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	61	52	121	104
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	(22)	(19)	(44)	(38)
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	39	33	77	66
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	24	18	49	37
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	(9)	(7)	(18)	(14)
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	15	11	31	23
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	3	4	6	8
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	(1)	(1)	(2)	(3)
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	2	3	4	5
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)	(20)	(38)	(39)
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit	7	7	14	14
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	(12)	(13)	(24)	(25)
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	2	1	9
Other Comprehensive Income (Loss), Tax (Expense) Credit
Reclassification from accumulated other comprehensive income, tax (expense) credit		(1)		(3)
Other Comprehensive Income (Loss), After Tax
Reclassification from accumulated other comprehensive income, after tax	$ 1	$ 1	$ 1	$ 6

OTHER COMPREHENSIVE INCOME IT47

OTHER COMPREHENSIVE INCOME ITEMS - Noncontrolling Interests' (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interests
Comprehensive income (loss) attributable to noncontrolling interests	$ (0.2)	$ (0.6)	$ (0.8)	$ (1.2)
Net income (loss) attributable to noncontrolling interests	(0.2)	(0.7)	(0.8)	(1.3)
Cumulative translation adjustments attributable to noncontrolling interests	$ 0	$ 0.1	$ 0	$ 0.1

DIVIDENDS DECLARED AND PAID (De

DIVIDENDS DECLARED AND PAID (Details) - $ / shares	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
DIVIDENDS DECLARED AND PAID
Dividends declared (in dollars per share)	$ 0.60	$ 0.60	$ 1.20	$ 1.20
Dividends paid (in dollars per share)	$ 0.60	$ 0.60	$ 1.20	$ 1.20

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
EARNINGS PER SHARE
Net income attributable to Deere & Company	$ 802.4	$ 495.4	$ 996.2	$ 749.8
Less income allocable to participating securities (in dollars)	0.2	0.2	0.3	0.3
Income allocable to common stock (in dollars)	$ 802.2	$ 495.2	$ 995.9	$ 749.5
Average shares outstanding	319.2	315.1	317.9	315.8
Basic (in dollars per share)	$ 2.51	$ 1.57	$ 3.13	$ 2.37
Diluted Earnings Per Share
Average shares outstanding	319.2	315.1	317.9	315.8
Effect of dilutive share-based compensation (in shares)	3.3	1.4	3.2	1.3
Total potential shares outstanding	322.5	316.5	321.1	317.1
Diluted (in dollars per share)	$ 2.49	$ 1.56	$ 3.10	$ 2.36
Antidilutive incremental shares excluded from computation of earnings per share	0.7	11.9	0.5	11.9

PENSION AND OTHER POSTRETIREM50

PENSION AND OTHER POSTRETIREMENT BENEFITS - Components of Benefit Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Pensions
Net Periodic Cost
Service cost	$ 67	$ 62	$ 135	$ 126
Interest cost	90	97	180	195
Expected return on plan assets	(197)	(194)	(394)	(387)
Amortization of actuarial (gain) loss	61	52	121	104
Amortization of prior service (credit) cost	3	4	6	8
Settlements/curtailments	1	2	1	9
Net cost	25	23	49	55
Defined benefit plan employer contributions			33
Defined benefit plan employer contributions expected for the remainder of the fiscal year			30
Health Care and Life Insurance
Net Periodic Cost
Service cost	11	10	21	19
Interest cost	49	51	98	102
Expected return on plan assets	(5)	(9)	(9)	(18)
Amortization of actuarial (gain) loss	24	18	49	37
Amortization of prior service (credit) cost	(19)	(20)	(38)	(39)
Net cost	$ 60	$ 50	121	$ 101
Defined benefit plan employer contributions			19
Defined benefit plan employer contributions expected for the remainder of the fiscal year			$ 19

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	Apr. 30, 2017	Oct. 30, 2016	May 01, 2016
UNRECOGNIZED TAX BENEFITS
Unrecognized tax benefits	$ 192	$ 198
Unrecognized tax benefits affecting effective tax rate if recognized	$ 79	$ 81	$ 75

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016	Oct. 30, 2016
Net Sales and Revenues
Total net sales	$ 7,259.8	$ 7,106.6	$ 11,957.7	$ 11,875.8
% Change - Net sales	2.00%		1.00%
Total net sales and revenues	$ 8,287	7,875.4	$ 13,912.2	13,399.9
% Change - Net sales and revenues	5.00%		4.00%
Operating Profit (Loss)
Total operating profit (loss)	$ 1,271	848	$ 1,686	1,256
% Change - Operating profit (loss)	50.00%		34.00%
Net income attributable to Deere & Company	$ 802.4	495.4	$ 996.2	749.8
% Change - Net income (loss) attributable to Deere & Company	62.00%		33.00%
Identifiable Assets
Total Assets	$ 58,968.8	59,116.2	$ 58,968.8	59,116.2	$ 57,918.5
% Change - Identifiable assets			2.00%
Operating Segments (Other)
Reconciling items	$ (97)	(115)	$ (184)	(173)
% Change - Reconciling items	(16.00%)		6.00%
Income taxes	$ (371.9)	(237.8)	$ (506.4)	(333.3)
% Change - Income taxes	56.00%		52.00%
Equipment Operations
Net Sales and Revenues
Total net sales	$ 7,259.8	7,106.6	$ 11,957.7	11,875.8
Total net sales and revenues	7,618.1	7,259.4	12,595.3	12,186.6
Operating Profit (Loss)
Net income attributable to Deere & Company	802.4	495.4	996.2	749.8
Identifiable Assets
Total Assets	27,721.5	25,643.3	27,721.5	25,643.3	26,395.1
Operating Segments (Other)
Income taxes	(315.8)	(180.4)	(395.9)	(211.5)
Equipment Operations | Outside U.S. and Canada:
Net Sales and Revenues
Total net sales	$ 2,968	2,598	$ 4,860	4,306
% Change - Net sales	14.00%		13.00%
Operating Profit (Loss)
Total operating profit (loss)	$ 390	231	$ 464	252
% Change - Operating profit (loss)	69.00%		84.00%
Corporate
Identifiable Assets
Total Assets	$ 5,661		$ 5,661		5,659
Agriculture and Turf
Net Sales and Revenues
Total net sales	$ 5,794	5,742	$ 9,392	9,341
% Change - Net sales	1.00%		1.00%
Intersegment sales and revenues	$ 10	9	$ 17	16
% Change - Intersegment sales and revenues	11.00%		6.00%
Operating Profit (Loss)
Total operating profit (loss)	$ 1,003	614	$ 1,215	759
% Change - Operating profit (loss)	63.00%		60.00%
Identifiable Assets
Total Assets	$ 9,209		$ 9,209		8,405
% Change - Identifiable assets			10.00%
Construction and Forestry
Net Sales and Revenues
Total net sales	$ 1,466	1,365	$ 2,566	2,535
% Change - Net sales	7.00%		1.00%
Operating Profit (Loss)
Total operating profit (loss)	$ 108	74	$ 143	143
% Change - Operating profit (loss)	46.00%
Identifiable Assets
Total Assets	$ 3,184		$ 3,184		3,017
% Change - Identifiable assets			6.00%
Financial Services
Net Sales and Revenues
Total net sales and revenues	$ 716	651	$ 1,412	1,287
% Change - Net sales and revenues	10.00%		10.00%
Intersegment sales and revenues	$ 62	80	$ 111	127
% Change - Intersegment sales and revenues	(23.00%)		(13.00%)
Operating Profit (Loss)
Total operating profit (loss)	$ 160	160	$ 328	354
% Change - Operating profit (loss)			(7.00%)
Identifiable Assets
Total Assets	40,915		$ 40,915		$ 40,837
Other
Net Sales and Revenues
Total net sales and revenues	$ 311	$ 117	$ 542	$ 237
% Change - Net sales and revenues	166.00%		129.00%

FINANCING RECEIVABLES - Past Du

FINANCING RECEIVABLES - Past Due Age Analysis (Details) - USD ($) $ in Millions	6 Months Ended
	Apr. 30, 2017	Jan. 29, 2017	Oct. 30, 2016	May 01, 2016	Jan. 31, 2016	Nov. 01, 2015
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	$ 511		$ 434	$ 505
Total Non-Performing	204		244	196
Current	27,045		28,327	27,614
Total Financing Receivables	27,760		29,005	28,315
Less allowance for credit losses	177	$ 175	176	165	$ 155	$ 157
Total financing receivables - net	27,583		28,829	28,150
30-59 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	249		229	254
60-89 Days Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	135		105	117
90 Days or Greater Past Due
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	127		100	134
Retail Notes
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Financing Receivables	20,008			20,567
Less allowance for credit losses	111	$ 111	113	102	$ 93	$ 95
Retail Notes | Agriculture and Turf
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	260		237	278
Total Non-Performing	159		191	129
Current	16,838		17,526	17,436
Total Financing Receivables	17,257		17,954	17,843
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	120		115	137
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	75		57	70
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	65		65	71
Retail Notes | Construction and Forestry
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	157		135	136
Total Non-Performing	31		35	32
Current	2,563		2,558	2,556
Total Financing Receivables	2,751		2,728	2,724
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	80		78	79
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	44		32	29
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	33		25	28
Other Financing Receivables | Agriculture and Turf
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	76		43	73
Total Non-Performing	10		9	12
Current	6,692		7,286	6,671
Total Financing Receivables	6,778		7,338	6,756
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	37		26	28
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	12		11	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	27		6	33
Other Financing Receivables | Construction and Forestry
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables
Total Past Due	18		19	18
Total Non-Performing	4		9	23
Current	952		957	951
Total Financing Receivables	974		985	992
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	12		10	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	4		5	6
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	$ 2		$ 4	$ 2

FINANCING RECEIVABLES - Allowan

FINANCING RECEIVABLES - Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016	Oct. 30, 2016
Allowance:
Beginning of period balance	$ 175	$ 155	$ 176	$ 157
Provision (credit)	26	24	33	32
Write-offs	(34)	(28)	(50)	(42)
Recoveries	10	7	18	14
Translation adjustments		7		4
End of period balance	177	165	177	165
Financing receivables:
End of period balance	27,760	28,315	27,760	28,315	$ 29,005
Balance individually evaluated	169	101	169	101
Retail Notes
Allowance:
Beginning of period balance	111	93	113	95
Provision (credit)	10	12	18	17
Write-offs	(15)	(12)	(27)	(19)
Recoveries	5	3	7	5
Translation adjustments		6		4
End of period balance	111	102	111	102
Financing receivables:
End of period balance	20,008	20,567	20,008	20,567
Balance individually evaluated	148	73	148	73
Revolving Charge Accounts
Allowance:
Beginning of period balance	41	40	40	40
Provision (credit)	15	11	13	13
Write-offs	(18)	(15)	(20)	(22)
Recoveries	5	4	10	9
End of period balance	43	40	43	40
Financing receivables:
End of period balance	3,036	2,636	3,036	2,636
Balance individually evaluated	4	2	4	2
Other Financing Receivables
Allowance:
Beginning of period balance	23	22	23	22
Provision (credit)	1	1	2	2
Write-offs	(1)	(1)	(3)	(1)
Recoveries			1
Translation adjustments		1
End of period balance	23	23	23	23
Financing receivables:
End of period balance	4,716	5,112	4,716	5,112
Balance individually evaluated	$ 17	$ 26	$ 17	$ 26

FINANCING RECEIVABLES - Impaire

FINANCING RECEIVABLES - Impaired (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Apr. 30, 2017	May 01, 2016	Oct. 30, 2016
Analysis of Impaired Financing Receivables
Recorded investment, with specific allowance	$ 23	$ 27	$ 31
Recorded investment, without specific allowance	27	36	29
Recorded Investment	50	63	60
Unpaid principal balance, with specific allowance	22	26	28
Unpaid principal balance, without specific allowance	24	35	27
Unpaid Principal Balance	46	61	55
Specific Allowance	9	5	9
Average recorded investment, with specific allowance	26	23	29
Average recorded investment, without specific allowance	28	31	26
Average Recorded Investment	54	54	55
Agriculture and Turf
Analysis of Impaired Financing Receivables
Recorded Investment	28	32	33
Unpaid Principal Balance	26	31	30
Specific Allowance	8	5	8
Average Recorded Investment	32	28	27
Construction and Forestry
Analysis of Impaired Financing Receivables
Recorded Investment	22	31	27
Unpaid Principal Balance	20	30	25
Specific Allowance	1		1
Average Recorded Investment	$ 22	$ 26	$ 28

FINANCING RECEIVABLES - Trouble

FINANCING RECEIVABLES - Troubled Debt Restructuring (Details) $ in Millions	6 Months Ended
	Apr. 30, 2017USD ($)item	May 01, 2016USD ($)item
Financing Receivables Related to Troubled Debt Restructurings
Financing receivable contracts in troubled debt restructuring, number | item	226	46
Financing receivables in troubled debt restructurings, aggregate balances, pre-modification	$ 5.2	$ 17.6
Financing receivables in troubled debt restructurings, aggregate balances, post-modification	$ 4.2	$ 17.1
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	$ 14

SECURITIZATION OF FINANCING R57

SECURITIZATION OF FINANCING RECEIVABLES (Details) - USD ($) $ in Millions	6 Months Ended
	Apr. 30, 2017	Oct. 30, 2016	May 01, 2016
Securitization Transactions
Unconsolidated conduits, carrying value of liabilities	$ 1,315
Unconsolidated conduits, maximum exposure to loss	1,395
Financing receivables securitized (retail notes)	4,295	$ 5,141	$ 4,749
Allowance for credit losses - securitization transactions	(13)	(14)	(14)
Other assets - securitization transactions	115	115	105
Total restricted securitized assets - securitization transactions	4,397	5,242	4,840
Short-term securitization borrowings	4,224.6	4,997.8	4,636.7
Accrued interest on borrowings - securitization transactions	2	2	2
Total liabilities related to restricted securitized assets - securitization transactions	$ 4,227	5,000	4,639
Maximum remaining term of all restricted securitized retail notes	6 years
VIE-Primary Beneficiary
Securitization Transactions
Total restricted securitized assets - securitization transactions	$ 2,589	2,718	2,782
Total liabilities related to restricted securitized assets - securitization transactions	2,522	2,655	2,707
Non-VIE Banking Operation
Securitization Transactions
Total restricted securitized assets - securitization transactions	413	663	271
Total liabilities related to restricted securitized assets - securitization transactions	390	616	254
VIE-Not Primary Beneficiary
Securitization Transactions
Total Assets	52,000
Total restricted securitized assets - securitization transactions	1,395	1,861	1,787
Total liabilities related to restricted securitized assets - securitization transactions	$ 1,315	$ 1,729	$ 1,678

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Apr. 30, 2017	Oct. 30, 2016	May 01, 2016
INVENTORIES
Raw materials and supplies	$ 1,559	$ 1,369	$ 1,485
Work-in-process	531	453	507
Finished goods and parts	3,421	2,976	3,473
Total FIFO value	5,511	4,798	5,465
Less adjustment to LIFO value	1,396	1,457	1,404
Inventories	$ 4,114.8	$ 3,340.5	$ 4,061

GOODWILL AND OTHER INTANGIBLE59

GOODWILL AND OTHER INTANGIBLE ASSETS-NET - Goodwill (Details) - USD ($) $ in Millions	6 Months Ended
	Apr. 30, 2017	May 01, 2016
Changes in Amounts of Goodwill
Goodwill - net, beginning balance	$ 815.7	$ 726
Acquisitions		92
Translation adjustments		17
Translation adjustments and other	(10)
Goodwill - net, ending balance	806.2	835
Accumulated impairment loss	0	0
Agriculture and Turf
Changes in Amounts of Goodwill
Goodwill - net, beginning balance	323	227
Acquisitions		92
Translation adjustments		3
Translation adjustments and other	(10)
Goodwill - net, ending balance	313	322
Construction and Forestry
Changes in Amounts of Goodwill
Goodwill - net, beginning balance	493	499
Translation adjustments		14
Goodwill - net, ending balance	$ 493	$ 513

GOODWILL AND OTHER INTANGIBLE60

GOODWILL AND OTHER INTANGIBLE ASSETS-NET - Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016	Oct. 30, 2016
Amortized Intangible Assets:
Total at cost	$ 168	$ 182	$ 168	$ 182	$ 173
Less accumulated amortization	77	61	77	61	69
Total amortized intangible assets - net	90.8	120.5	90.8	120.5	104.1
Amortization expense of other intangible assets	4	3	9	6
Amortization expense of other intangible assets - remainder of 2017	9		9
Amortization expense of other intangible assets - 2018	14		14
Amortization expense of other intangible assets - 2019	13		13
Amortization expense of other intangible assets - 2020	10		10
Amortization expense of other intangible assets - 2021	8		8
Customer Lists and Relationships
Amortized Intangible Assets:
Total at cost	39	42	39	42	42
Less accumulated amortization	15	10	$ 15	10	11
Useful Lives (weighted averages)			12 years
Technology, Patents, Trademarks and Other
Amortized Intangible Assets:
Total at cost	129	140	$ 129	140	131
Less accumulated amortization	$ 62	$ 51	$ 62	$ 51	$ 58
Useful Lives (weighted averages)			14 years

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Warranty (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
COMMITMENTS AND CONTINGENCIES
Historical claims rate, review period			5 years
Unamortized extended warranty premiums (deferred revenue)	$ 444	$ 467	$ 444	$ 467
Change in Warranty Liability and Unearned Premiums
Beginning of period balance	1,285	1,239	1,226	1,261
Payments	(167)	(199)	(332)	(395)
Amortization of premiums received	(54)	(57)	(97)	(104)
Accruals for warranties	238	192	470	374
Premiums received	55	45	95	89
Foreign exchange	8	15	3	10
End of period balance	$ 1,365	$ 1,235	$ 1,365	$ 1,235

COMMITMENTS AND CONTINGENCIES62

COMMITMENTS AND CONTINGENCIES - Other (Details) $ in Millions	6 Months Ended
	Apr. 30, 2017USD ($)
Long Term Purchase Commitments
Commitments for the construction and acquisition of property and equipment	$ 185
Restricted Assets and Other Contingent Liabilities
Other restricted assets	95
Miscellaneous contingent liabilities	70
Guarantees, Third-party Receivables
Guarantee Obligations
Guarantee obligations maximum exposure	143
Guarantee obligations accrued losses	$ 3
Guarantee obligations term	P4Y

FAIR VALUE MEASUREMENTS - Finan

FAIR VALUE MEASUREMENTS - Financial Instruments (Details) - USD ($) $ in Millions	Apr. 30, 2017	Oct. 30, 2016	May 01, 2016
Fair Values of Financial Instruments
Financing receivables - net	$ 23,301.1	$ 23,702.3	$ 23,415.3
Financing receivables securitized - net	4,281.8	5,126.5	4,734.7
Short-term securitization borrowings	4,224.6	4,997.8	4,636.7
Long-term borrowings	23,253.1	23,703	24,587.7
Level 2
Fair Values of Financial Instruments
Short-term securitization borrowings	4,225	5,005	4,642
Long-term borrowings due within one year	5,464	5,339	5,359
Long-term borrowings	23,884	24,457	25,330
Level 3
Fair Values of Financial Instruments
Financing receivables - net	23,141	23,564	23,300
Financing receivables securitized - net	4,253	5,114	4,723
Carrying Value
Fair Values of Financial Instruments
Financing receivables - net	23,301	23,702	23,415
Financing receivables securitized - net	4,282	5,127	4,735
Short-term securitization borrowings	4,225	4,998	4,637
Long-term borrowings due within one year	5,459	5,343	5,349
Long-term borrowings	23,253	23,703	24,588
Equipment Operations
Fair Values of Financial Instruments
Financing receivables - net		0.4	0.7
Long-term borrowings	4,520.4	4,565.3	4,562
Equipment Operations | Level 2
Fair Values of Financial Instruments
Long-term borrowings due within one year	119	80	38
Long-term borrowings	5,020	5,184	5,148
Equipment Operations | Carrying Value
Fair Values of Financial Instruments
Long-term borrowings due within one year	120	85	41
Long-term borrowings	4,520	4,565	4,562
Financial Services
Fair Values of Financial Instruments
Financing receivables - net	23,301.1	23,701.9	23,414.6
Financing receivables securitized - net	4,281.8	5,126.5	4,734.7
Short-term securitization borrowings	4,224.6	4,997.8	4,636.7
Long-term borrowings	18,732.7	19,137.7	20,025.7
Financial Services | Level 2
Fair Values of Financial Instruments
Long-term borrowings due within one year	5,345	5,259	5,321
Long-term borrowings	18,864	19,273	20,182
Financial Services | Carrying Value
Fair Values of Financial Instruments
Long-term borrowings due within one year	5,339	5,258	5,308
Long-term borrowings	$ 18,733	$ 19,138	$ 20,026

FAIR VALUE MEASUREMENTS - Asset

FAIR VALUE MEASUREMENTS - Assets and Liaibilities - Recurring (Details) - USD ($) $ in Millions	Apr. 30, 2017	Oct. 30, 2016	May 01, 2016
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable securities	$ 546.3	$ 453.5	$ 475.5
Derivative assets	216	375	479
Derivative liabilities	131	72	145
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 a Recurring Basis
Derivative assets	216	375	479
Accounts Payable and Accrued Expenses
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Derivative liabilities	131	72	145
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Total Estimated Fair Value
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable securities	546	454	475
Total assets	762	829	954
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 a Recurring Basis
Marketable securities	79	88	79
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | U.S. Equity Securities and Funds
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable securities	135	45	44
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | Fixed Income Funds
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable securities	15	15	3
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 a Recurring Basis
Marketable securities	46	53	38
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Total liabilities	131	72	145
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 a Recurring Basis
Derivative assets	142	294	419
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 a Recurring Basis
Derivative liabilities	79	29	48
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 a Recurring Basis
Derivative assets	60	60	38
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 a Recurring Basis
Derivative liabilities	50	43	96
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 a Recurring Basis
Derivative assets	14	21	22
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Cross-Currency Interest Rate Contracts | Accounts Payable and Accrued Expenses
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Derivative liabilities	2		1
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Municipal Debt Securities
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable securities	39	43	41
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Corporate Debt Securities
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable securities	132	118	113
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Mortgage-Backed Securities
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable securities	118	111	124
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 a Recurring Basis
Marketable securities	28	34	71
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 3 | International Debt Securities
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable securities	$ 23	$ 28	$ 40

FAIR VALUE MEASUREMENTS - Contr

FAIR VALUE MEASUREMENTS - Contractual Maturities of Debt Securities (Details) $ in Millions	Apr. 30, 2017USD ($)
Contractual Maturities of Debt Securities, Amortized Cost
Amortized cost, due in one year or less	$ 24
Amortized cost, due after one through five years	106
Amortized cost, due after five through 10 years	94
Amortized cost, due after 10 years	53
Amortized cost, mortgage-backed securities	118
Amortized cost, debt securities	395
Contractual Maturities of Debt Securities, Fair Value
Fair value, due in one year or less	23
Fair value, due after one through five years	105
Fair value, due after five through 10 years	96
Fair value, due after 10 years	54
Fair value, mortgage-backed securities	118
Fair value, debt securities	$ 396

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		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Fair Value, Recurring Level 3 Measurements from Available for Sale Marketable Securities
Beginning of period balance	$ 23	$ 44	$ 28	$ 29
Purchases				25
Principal payments	(1)	(6)	(6)	(8)
Change in unrealized gain (loss)	1	2	1	(6)
End of period balance	$ 23	$ 40	$ 23	$ 40

FAIR VALUE MEASUREMENTS - Nonre

FAIR VALUE MEASUREMENTS - Nonrecurring, Level 3 Measurements (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	May 01, 2016	May 01, 2016	Apr. 30, 2017	Oct. 30, 2016
Fair Value, Nonrecurring Level 3 Measurements from Impairments
Equipment on operating leases - net	$ 5,455.5	$ 5,455.5	$ 5,923.9	$ 5,901.5
Fair Value, Nonrecurring Measurements | Level 3
Fair Value, Nonrecurring Level 3 Measurements from Impairments
Equipment on operating leases - net	725	725		654
Losses, Equipment on operating leases - net	26	30
Property and equipment - net				31
Investments in unconsolidated affiliates				1
Other assets	166	166		$ 184
Losses, Other assets	$ 11	$ 20

DERIVATIVE INSTRUMENTS - Cash F

DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - USD ($) $ in Millions	6 Months Ended
	Apr. 30, 2017	Oct. 30, 2016	May 01, 2016
Cash Flow Hedges
Cash flow hedge gain (loss) recorded in OCI to be reclassified within twelve months	$ 1
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	1,600	$ 1,600	$ 1,600
Cross-Currency Interest Rate Contracts | Cash Flow Hedges Member | Designated as Hedging Instruments
Cash Flow Hedges
Notional amount of cash flow hedge derivatives	$ 32	$ 42	$ 51

DERIVATIVE INSTRUMENTS - Fair V

DERIVATIVE INSTRUMENTS - Fair Value Hedges (Details) - Interest Rate Contracts - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016	Oct. 30, 2016
Fair Value Hedges
Gains (losses) on ineffective portion of interest rate fair value hedge derivatives	$ 0	$ (1)	$ 2	$ (1)
Gain (Loss) on Fair Value Hedges
Gains (losses) on interest rate contracts	32	(9)	(202)	66
Net accrued interest income on interest rate contracts	22	39	48	78
Gains (losses) on borrowings	(32)	8	204	(67)
Accrued interest expense on borrowings	61	75	126	142
Fair Value Hedges | Designated as Hedging Instruments
Fair Value Hedges
Notional amount of interest rate fair value hedge derivatives	$ 7,605	$ 9,923	$ 7,605	$ 9,923	$ 8,844

DERIVATIVE INSTRUMENTS - Not De

DERIVATIVE INSTRUMENTS - Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instruments - USD ($) $ in Millions	Apr. 30, 2017	Oct. 30, 2016	May 01, 2016
Interest Rate Contracts
Derivatives Not Designated as Hedging Instruments
Notional amounts	$ 5,783	$ 6,060	$ 6,524
Interest Rate Cap Contracts | Purchased
Derivatives Not Designated as Hedging Instruments
Notional amounts	366	579	762
Interest Rate Cap Contracts | Sold
Derivatives Not Designated as Hedging Instruments
Notional amounts	366	579	762
Foreign Exchange Contracts
Derivatives Not Designated as Hedging Instruments
Notional amounts	4,600	3,919	3,894
Cross-Currency Interest Rate Contracts
Derivatives Not Designated as Hedging Instruments
Notional amounts	$ 76	$ 63	$ 74

DERIVATIVE INSTRUMENTS - Fair71

DERIVATIVE INSTRUMENTS - Fair Value (Details) - USD ($) $ in Millions	Apr. 30, 2017	Oct. 30, 2016	May 01, 2016
Fair Value of Derivative Instruments
Total derivative assets	$ 216	$ 375	$ 479
Total derivative liabilities	131	72	145
Other Assets
Fair Value of Derivative Instruments
Total derivative assets	216	375	479
Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	131	72	145
Designated as Hedging Instruments | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	123	279	381
Designated as Hedging Instruments | Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	64	10	8
Designated as Hedging Instruments | Interest Rate Contracts | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	116	268	368
Designated as Hedging Instruments | Interest Rate Contracts | Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	64	10	8
Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	7	11	13
Not Designated as Hedging Instruments | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	93	96	98
Not Designated as Hedging Instruments | Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	67	62	137
Not Designated as Hedging Instruments | Interest Rate Contracts | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	26	26	51
Not Designated as Hedging Instruments | Interest Rate Contracts | Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	15	19	40
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	60	60	38
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	50	43	96
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Other Assets
Fair Value of Derivative Instruments
Total derivative assets	7	$ 10	9
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Accounts Payable and Accrued Expenses
Fair Value of Derivative Instruments
Total derivative liabilities	$ 2		$ 1

DERIVATIVE INSTRUMENTS - Gains

DERIVATIVE INSTRUMENTS - Gains (Losses) on Statement of Consolidated Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Classification and gains (losses) including accrued interest expense related to derivative instruments
Not designated as hedges, gains (losses)	$ 39	$ (243)	$ (25)	$ (87)
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)		2	(3)
Interest Rate Contracts | Interest Expense
Classification and gains (losses) including accrued interest expense related to derivative instruments
Fair value hedges, gains (losses)	54	30	(154)	144
Not designated as hedges, gains (losses)	(4)	5		3
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)	(2)	(1)	(5)
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)	(3)	(1)	(2)	1
Foreign Exchange Contracts | Cost of Sales
Classification and gains (losses) including accrued interest expense related to derivative instruments
Not designated as hedges, gains (losses)	28	(62)	(12)	(29)
Foreign Exchange Contracts | Other Operating Expense
Classification and gains (losses) including accrued interest expense related to derivative instruments
Not designated as hedges, gains (losses)	15	(186)	(13)	(61)
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)	$ (3)	$ (1)	$ (2)	$ 1

DERIVATIVE INSTRUMENTS - Counte

DERIVATIVE INSTRUMENTS - Counterparty Risk and Collateral (Details) - USD ($) $ in Millions	Apr. 30, 2017	Oct. 30, 2016	May 01, 2016
DERIVATIVE INSTRUMENTS
Fair value of derivatives with credit-risk-related contingent features in a liability position	$ 81	$ 29	$ 32
Derivative Assets
Gross amounts recognized	216	375	479
Netting arrangements	(54)	(32)	(53)
Collateral received		(6)	(20)
Net amount	162	337	406
Derivative Liabilities
Gross amounts recognized	131	72	145
Netting arrangements	(54)	(32)	(53)
Net amount	$ 77	$ 40	$ 92

STOCK OPTION AND RESTRICTED S74

STOCK OPTION AND RESTRICTED STOCK AWARDS (Details) - $ / shares shares in Thousands	1 Months Ended	6 Months Ended
	Dec. 25, 2016	Apr. 30, 2017
Share-based Compensation, Aggregate Disclosures
Number of additional shares authorized for grant related to stock option and restricted stock awards		11,300
Stock Options
Share-based Compensation, Aggregate Disclosures
Options granted (in shares)	718
Options granted, exercise price (in dollars per share)	$ 100.55
Options granted, fair value (in dollars per share)	$ 24.46
Options outstanding (in shares)		13,100
Options outstanding, weighted-average exercise price (in dollars per share)		$ 80.69
Fair value assumptions method used	lattice model
Restricted Stock Units
Share-based Compensation, Aggregate Disclosures
Restricted stock units granted (in shares)		577
Restricted Stock Units Subject to Service-based Conditions
Share-based Compensation, Aggregate Disclosures
Restricted stock units granted (in shares)		463
Restricted stock units granted, weighted-average fair value (in dollars per unit)		$ 100.90
Restricted Stock Units Subject to Performance/Service-based Conditions
Share-based Compensation, Aggregate Disclosures
Restricted stock units granted (in shares)		57
Restricted stock units granted, weighted-average fair value (in dollars per unit)		$ 93.86
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)		57
Restricted stock units granted, weighted-average fair value (in dollars per unit)		$ 129.70

VOLUNTARY EMPLOYEE-SEPARATION75

VOLUNTARY EMPLOYEE-SEPARATION PROGRAMS (Details) - Voluntary Employee-Separation Programs - USD ($) $ in Millions	3 Months Ended			6 Months Ended	12 Months Ended
	Apr. 30, 2017	Jan. 29, 2017	Oct. 30, 2016	Oct. 29, 2017	Oct. 29, 2017
Voluntary Employee-Separation Programs
Total voluntary employee-separation programs' expenses, pretax	$ 113
Incurred voluntary employee-separation programs' expenses, pretax	$ 5	$ 94	$ 11
Forecasted
Voluntary Employee-Separation Programs
Incurred voluntary employee-separation programs' expenses, pretax				$ 3
Voluntary employee-separation programs future savings					$ 70
Forecasted | Agriculture and Turf
Voluntary Employee-Separation Programs
Voluntary employee-separation programs' expenses allocation (as a percent)					74.00%
Forecasted | Construction and Forestry
Voluntary Employee-Separation Programs
Voluntary employee-separation programs' expenses allocation (as a percent)					18.00%
Forecasted | Financial Services
Voluntary Employee-Separation Programs
Voluntary employee-separation programs' expenses allocation (as a percent)					8.00%
Cost of Sales | Forecasted
Voluntary Employee-Separation Programs
Voluntary employee-separation programs' expenses allocation (as a percent)					30.00%
Research and Development | Forecasted
Voluntary Employee-Separation Programs
Voluntary employee-separation programs' expenses allocation (as a percent)					16.00%
Selling, Administrative, and General Expenses | Forecasted
Voluntary Employee-Separation Programs
Voluntary employee-separation programs' expenses allocation (as a percent)					54.00%

DISTRIBUTION AND PARTIAL SALE76

DISTRIBUTION AND PARTIAL SALE OF INVESTMENT - SITEONE (Details) - USD ($) $ in Millions	1 Months Ended
	Apr. 30, 2017	Dec. 25, 2016	Oct. 30, 2016	May 01, 2016
Partial Sale of SiteOne - Available-for-Sale
Proceeds from sale of partial remaining interest in SiteOne presented in other receivables	$ 931.3		$ 1,018.5	$ 876.2
Remaining investment in SiteOne	$ 546.3		$ 453.5	$ 475.5
SiteOne Landscapes Supply, LLC
Partial Sale of SiteOne - Equity Method
Sale of interest in SiteOne (as a percent)		38.00%
Proceeds from sale of partial interest in SiteOne		$ 114
Gain on sale of partial interest, pretax		105
Gain on sale of partial interest, after-tax		$ 66
Ownership interest in SiteOne (as a percent)		15.00%
Partial Sale of SiteOne - Available-for-Sale
Sale of interest in SiteOne (as a percent)	68.00%
Proceeds from sale of partial remaining interest in SiteOne presented in other receivables	$ 184
Gain on sale of partial remaining interest, pretax	176
Gain on sale of partial remaining interest, after-tax	$ 111
Remaining ownership interest in SiteOne (as a percent)	5.00%
Remaining investment in SiteOne	$ 90

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - May 31, 2017 - Subsequent Event - Wirtgen € in Millions, $ in Millions	EUR (€)item	USD ($)item
Subsequent Event
Number of brands	6	6
Number of employees	8,000	8,000
Ticking fee (as a percent)	5.00%	5.00%
Minimum
Subsequent Event
Number of countries entity sells products	100	100
Forecasted
Subsequent Event
Purchase price payable in cash	€ 4,357	$ 4,900
Expected transaction value	€ 4,600	$ 5,200

SUPPLEMENTAL CONSOLIDATING DA78

SUPPLEMENTAL CONSOLIDATING DATA - Statement of Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Net Sales and Revenues
Net sales	$ 7,259.8	$ 7,106.6	$ 11,957.7	$ 11,875.8
Finance and interest income	665	611.4	1,320.5	1,210.5
Other income	362.2	157.4	634	313.6
Total	8,287	7,875.4	13,912.2	13,399.9
Costs and Expenses
Cost of sales	5,444.7	5,531	9,241.5	9,371.1
Research and development expenses	324.4	345	635.3	664.3
Selling, administrative and general expenses	775.3	714.8	1,434.7	1,307.7
Interest expense	226.9	191	434.9	364.3
Other operating expenses	346.4	360.3	668.5	608
Total	7,117.7	7,142.1	12,414.9	12,315.4
Income of Consolidated Group before Income Taxes	1,169.3	733.3	1,497.3	1,084.5
Provision for income taxes	371.9	237.8	506.4	333.3
Income of Consolidated Group	797.4	495.5	990.9	751.2
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Net Income	802.2	494.7	995.4	748.5
Less: Net loss attributable to noncontrolling interests	(0.2)	(0.7)	(0.8)	(1.3)
Net Income Attributable to Deere & Company	802.4	495.4	996.2	749.8
Equipment Operations
Net Sales and Revenues
Net sales	7,259.8	7,106.6	11,957.7	11,875.8
Finance and interest income	18.7	12.9	40	30.8
Other income	339.6	139.9	597.6	280
Total	7,618.1	7,259.4	12,595.3	12,186.6
Costs and Expenses
Cost of sales	5,445.1	5,531.5	9,242.3	9,372.1
Research and development expenses	324.4	345	635.3	664.3
Selling, administrative and general expenses	637.5	588.5	1,176.4	1,069.6
Interest expense	67	67.7	133.8	129.8
Interest compensation to Financial Services	60.4	61.8	106.1	106.6
Other operating expenses	73.8	91.4	131.7	112.5
Total	6,608.2	6,685.9	11,425.6	11,454.9
Income of Consolidated Group before Income Taxes	1,009.9	573.5	1,169.7	731.7
Provision for income taxes	315.8	180.4	395.9	211.5
Income of Consolidated Group	694.1	393.1	773.8	520.2
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates	108.1	101.6	221.6	228.3
Net Income	802.2	494.7	995.4	748.5
Less: Net loss attributable to noncontrolling interests	(0.2)	(0.7)	(0.8)	(1.3)
Net Income Attributable to Deere & Company	802.4	495.4	996.2	749.8
Equipment Operations | Financial Services
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates	103.5	102.6	217.9	232
Equipment Operations | Other
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates	4.6	(1)	3.7	(3.7)
Financial Services
Net Sales and Revenues
Finance and interest income	716.4	662.9	1,403.7	1,297.9
Other income	61	68.2	119.2	116.3
Total	777.4	731.1	1,522.9	1,414.2
Costs and Expenses
Selling, administrative and general expenses	139.6	128	261.3	242
Interest expense	169.4	125.9	318.1	245.9
Other operating expenses	309	317.4	615.9	573.5
Total	618	571.3	1,195.3	1,061.4
Income of Consolidated Group before Income Taxes	159.4	159.8	327.6	352.8
Provision for income taxes	56.1	57.4	110.5	121.8
Income of Consolidated Group	103.3	102.4	217.1	231
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates	0.2	0.2	0.8	1
Net Income	103.5	102.6	217.9	232
Net Income Attributable to Deere & Company	103.5	102.6	217.9	232
Financial Services | Financial Services
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates	$ 0.2	$ 0.2	$ 0.8	$ 1

SUPPLEMENTAL CONSOLIDATING DA79

SUPPLEMENTAL CONSOLIDATING DATA - Condensed Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 30, 2017	Oct. 30, 2016	May 01, 2016	Nov. 01, 2015
ASSETS
Cash and cash equivalents	$ 4,525.8	$ 4,335.8	$ 4,133.2	$ 4,162.2
Marketable securities	546.3	453.5	475.5
Receivables from unconsolidated subsidiaries and affiliates	34.9	16.5	81.3
Trade accounts and notes receivable - net	4,482.3	3,011.3	4,898.9
Financing receivables - net	23,301.1	23,702.3	23,415.3
Financing receivables securitized - net	4,281.8	5,126.5	4,734.7
Other receivables	931.3	1,018.5	876.2
Equipment on operating leases - net	5,923.9	5,901.5	5,455.5
Inventories	4,114.8	3,340.5	4,061
Property and equipment - net	4,959.9	5,170.6	5,079.7
Investments in unconsolidated subsidiaries and affiliates	215.7	232.6	236.7
Goodwill	806.2	815.7	835	726
Other intangible assets - net	90.8	104.1	120.5
Retirement benefits	176.2	93.6	285.4
Deferred income taxes	3,041.9	2,964.4	2,681.9
Other assets	1,535.9	1,631.1	1,745.4
Total Assets	58,968.8	57,918.5	59,116.2
LIABILITIES
Short-term borrowings	7,963.6	6,910.7	8,574.3
Short-term securitization borrowings	4,224.6	4,997.8	4,636.7
Payables to unconsolidated subsidiaries and affiliates	101.6	81.6	109.5
Accounts payable and accrued expenses	7,215.9	7,240.1	6,980.8
Deferred income taxes	169	166	180.3
Long-term borrowings	23,253.1	23,703	24,587.7
Retirement benefits and other liabilities	8,333.2	8,274.5	6,856.2
Total liabilities	51,261	51,373.7	51,925.5
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest	14	14	14
STOCKHOLDERS' EQUITY
Common stock, $1 par value (issued shares at April 30, 2017 – 536,431,204)	$ 4,176.8	3,911.8	3,862
Common stock, par value (in dollars per share)	$ 1
Common stock, issued shares	536,431,204
Common stock in treasury	$ (15,521)	(15,677.1)	(15,693.6)
Retained earnings	24,524.4	23,911.3	23,514.7
Accumulated other comprehensive income (loss)	(5,495.5)	(5,626)	(4,518.8)
Total Deere & Company stockholders' equity	7,684.7	6,520	7,164.3
Noncontrolling interests	9.1	10.8	12.4
Total stockholders' equity	7,693.8	6,530.8	7,176.7	6,757.6
Total Liabilities and Stockholders' Equity	58,968.8	57,918.5	59,116.2
Equipment Operations
ASSETS
Cash and cash equivalents	3,343.8	3,140.5	2,790.8	2,900
Marketable securities	118.1	34.2	71.2
Receivables from unconsolidated subsidiaries and affiliates	3,453	3,150.1	2,226.2
Trade accounts and notes receivable - net	742.9	654.2	631.2
Financing receivables - net		0.4	0.7
Other receivables	801.6	855.4	778.2
Inventories	4,114.8	3,340.5	4,061
Property and equipment - net	4,909.7	5,118.5	5,026.2
Investments in unconsolidated subsidiaries and affiliates	4,612.2	4,697	4,774.7
Goodwill	806.2	815.7	835
Other intangible assets - net	90.8	104.1	120.5
Retirement benefits	176.2	93.6	280.9
Deferred income taxes	3,651.1	3,556	3,185.7
Other assets	901.1	834.9	861
Total Assets	27,721.5	26,395.1	25,643.3
LIABILITIES
Short-term borrowings	276.6	249	218.7
Payables to unconsolidated subsidiaries and affiliates	101.6	81.5	109.5
Accounts payable and accrued expenses	6,765	6,661.2	6,674.5
Deferred income taxes	89.7	87.3	102.7
Long-term borrowings	4,520.4	4,565.3	4,562
Retirement benefits and other liabilities	8,260.4	8,206	6,785.2
Total liabilities	20,013.7	19,850.3	18,452.6
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest	14	14	14
STOCKHOLDERS' EQUITY
Common stock, $1 par value (issued shares at April 30, 2017 – 536,431,204)	$ 4,176.8	$ 3,911.8	$ 3,862
Common stock, par value (in dollars per share)	$ 1	$ 1	$ 1
Common stock, issued shares	536,431,204
Common stock in treasury	$ (15,521)	$ (15,677.1)	$ (15,693.6)
Retained earnings	24,524.4	23,911.3	23,514.7
Accumulated other comprehensive income (loss)	(5,495.5)	(5,626)	(4,518.8)
Total Deere & Company stockholders' equity	7,684.7	6,520	7,164.3
Noncontrolling interests	9.1	10.8	12.4
Total stockholders' equity	7,693.8	6,530.8	7,176.7
Total Liabilities and Stockholders' Equity	27,721.5	26,395.1	25,643.3
Financial Services
ASSETS
Cash and cash equivalents	1,182	1,195.3	1,342.4	$ 1,262.2
Marketable securities	428.2	419.3	404.3
Trade accounts and notes receivable - net	4,867.3	3,370.5	5,529.4
Financing receivables - net	23,301.1	23,701.9	23,414.6
Financing receivables securitized - net	4,281.8	5,126.5	4,734.7
Other receivables	136	164	130.8
Equipment on operating leases - net	5,923.9	5,901.5	5,455.5
Property and equipment - net	50.2	52.1	53.5
Investments in unconsolidated subsidiaries and affiliates	12.5	11.9	11.9
Retirement benefits	18.9	20.5	23.2
Deferred income taxes	76.3	75.5	70.4
Other assets	636.8	798.1	887.2
Total Assets	40,915	40,837.1	42,057.9
LIABILITIES
Short-term borrowings	7,687	6,661.7	8,355.6
Short-term securitization borrowings	4,224.6	4,997.8	4,636.7
Payables to unconsolidated subsidiaries and affiliates	3,418.1	3,133.6	2,144.9
Accounts payable and accrued expenses	1,587.1	1,595.2	1,603.7
Deferred income taxes	764.8	745.9	651.8
Long-term borrowings	18,732.7	19,137.7	20,025.7
Retirement benefits and other liabilities	91.7	89	89.6
Total liabilities	36,506	36,360.9	37,508
Commitments and contingencies (Note 14)
STOCKHOLDERS' EQUITY
Common stock, $1 par value (issued shares at April 30, 2017 – 536,431,204)	$ 2,079.1	$ 2,079.1	$ 2,071.9
Common stock, par value (in dollars per share)	$ 1	$ 1	$ 1
Common stock, issued shares	536,431,204
Retained earnings	$ 2,608.1	$ 2,670.3	$ 2,719.7
Accumulated other comprehensive income (loss)	(278.2)	(273.2)	(241.7)
Total Deere & Company stockholders' equity	4,409	4,476.2	4,549.9
Total stockholders' equity	4,409	4,476.2	4,549.9
Total Liabilities and Stockholders' Equity	$ 40,915	$ 40,837.1	$ 42,057.9

SUPPLEMENTAL CONSOLIDATING DA80

SUPPLEMENTAL CONSOLIDATING DATA - Statement of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Cash Flows from Operating Activities
Net income (loss)	$ 802.2	$ 494.7	$ 995.4	$ 748.5
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses			32.6	35.1
Provision for depreciation and amortization			843.1	761.8
Impairment charges				49.7
Gain on sale of unconsolidated affiliates and investments			(281.4)
Undistributed earnings of unconsolidated subsidiaries and affiliates			(3.1)	5.3
Provision (credit) for deferred income taxes			(100.4)	93.3
Changes in assets and liabilities:
Trade receivables			(989.5)	(1,311.5)
Inventories			(1,090.4)	(405.8)
Accounts payable and accrued expenses			103.6	(367.8)
Accrued income taxes payable/receivable			195.1	12
Retirement benefits			115.6	91.1
Other			(27.9)	(56.1)
Net cash provided by (used for) operating activities			(175)	(312.4)
Cash Flows from Investing Activities
Proceeds from maturities and sales of marketable securities			41.3	71.4
Proceeds from sales of equipment on operating leases			786.4	630.1
Proceeds from sales of businesses and unconsolidated affiliates, net of cash sold			113.9
Purchases of marketable securities			(43.7)	(112.2)
Purchases of property and equipment			(253)	(232.6)
Cost of equipment on operating leases acquired			(925.1)	(1,204.1)
Acquisitions of businesses, net of cash acquired				(198.9)
Other			(18.7)	8.6
Net cash provided by (used for) investing activities			300.5	210
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings			183.1	38.3
Proceeds from long-term borrowings			2,661.6	3,276.6
Payments of long-term borrowings			(2,742.2)	(2,686.6)
Proceeds from issuance of common stock			383.6	11.1
Repurchases of common stock			(6.2)	(205.4)
Dividends paid			(379.5)	(383.2)
Excess tax benefits from share-based compensation			11.3	2.7
Other			(39.7)	(32.6)
Net cash provided by (used for) financing activities			72	20.9
Effect of Exchange Rate Changes on Cash and Cash Equivalents			(7.5)	52.5
Net Increase (Decrease) in Cash and Cash Equivalents			190	(29)
Cash and Cash Equivalents at Beginning of Period			4,335.8	4,162.2
Cash and Cash Equivalents at End of Period	4,525.8	4,133.2	4,525.8	4,133.2
Equipment Operations
Cash Flows from Operating Activities
Net income (loss)	802.2	494.7	995.4	748.5
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses			(0.2)	4
Provision for depreciation and amortization			427	410.2
Gain on sale of unconsolidated affiliates and investments			(281.4)
Undistributed earnings of unconsolidated subsidiaries and affiliates			59.8	51.5
Provision (credit) for deferred income taxes			(118.8)	(87.3)
Changes in assets and liabilities:
Trade receivables			(87.7)	(142.2)
Inventories			(771.8)	(136.7)
Accounts payable and accrued expenses			200	(107.9)
Accrued income taxes payable/receivable			191.5	0.2
Retirement benefits			111	86.8
Other			(49.2)	(18.2)
Net cash provided by (used for) operating activities			675.6	808.9
Cash Flows from Investing Activities
Proceeds from maturities and sales of marketable securities			7.9	31.3
Proceeds from sales of businesses and unconsolidated affiliates, net of cash sold			113.9
Purchases of marketable securities				(63.1)
Purchases of property and equipment			(252.2)	(231.7)
Acquisitions of businesses, net of cash acquired				(198.9)
Other			(18.1)	(70.9)
Net cash provided by (used for) investing activities			(148.5)	(533.3)
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings			(7.4)	(193.4)
Change in intercompany receivables/payables			(287.5)	290.8
Proceeds from long-term borrowings			19.1	133.5
Payments of long-term borrowings			(24.7)	(67.7)
Proceeds from issuance of common stock			383.6	11.1
Repurchases of common stock			(6.2)	(205.4)
Dividends paid			(379.5)	(383.2)
Excess tax benefits from share-based compensation			11.3	2.7
Other			(25.8)	(14.4)
Net cash provided by (used for) financing activities			(317.1)	(426)
Effect of Exchange Rate Changes on Cash and Cash Equivalents			(6.7)	41.2
Net Increase (Decrease) in Cash and Cash Equivalents			203.3	(109.2)
Cash and Cash Equivalents at Beginning of Period			3,140.5	2,900
Cash and Cash Equivalents at End of Period	3,343.8	2,790.8	3,343.8	2,790.8
Financial Services
Cash Flows from Operating Activities
Net income (loss)	103.5	102.6	217.9	232
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses			32.8	31.1
Provision for depreciation and amortization			476.9	399.4
Impairment charges				49.7
Undistributed earnings of unconsolidated subsidiaries and affiliates			(0.6)	(1)
Provision (credit) for deferred income taxes			18.4	180.6
Changes in assets and liabilities:
Accounts payable and accrued expenses			18	14.7
Accrued income taxes payable/receivable			3.6	11.8
Retirement benefits			4.6	4.3
Other			104.8	40.7
Net cash provided by (used for) operating activities			876.4	963.3
Cash Flows from Investing Activities
Collections of receivables (excluding trade and wholesale)			8,833.8	8,699.2
Proceeds from maturities and sales of marketable securities			33.4	40.1
Proceeds from sales of equipment on operating leases			786.4	630.1
Cost of receivables acquired (excluding trade and wholesale)			(8,238)	(7,343.6)
Purchases of marketable securities			(43.7)	(49.1)
Purchases of property and equipment			(0.8)	(0.9)
Cost of equipment on operating leases acquired			(1,355.6)	(1,567.7)
Decrease (increase) in trade and wholesale receivables			(1,012.7)	(1,547)
Other			(0.6)	53.6
Net cash provided by (used for) investing activities			(997.8)	(1,085.3)
Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings			190.5	231.7
Change in intercompany receivables/payables			287.5	(290.8)
Proceeds from long-term borrowings			2,642.5	3,143.1
Payments of long-term borrowings			(2,717.5)	(2,618.9)
Dividends paid			(280.2)	(277.1)
Other			(13.9)	2.9
Net cash provided by (used for) financing activities			108.9	190.9
Effect of Exchange Rate Changes on Cash and Cash Equivalents			(0.8)	11.3
Net Increase (Decrease) in Cash and Cash Equivalents			(13.3)	80.2
Cash and Cash Equivalents at Beginning of Period			1,195.3	1,262.2
Cash and Cash Equivalents at End of Period	$ 1,182	$ 1,342.4	$ 1,182	$ 1,342.4