EXHIBIT 11 DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF NET INCOME PER SHARE (Shares and dollars in thousands except per share amounts) For the Nine Months Ended July 31 1997 1996 1. Net income $748,829 $643,351 2. Adjustment - Interest expense, after tax benefit, applicable to convertible debentures outstanding 9 15 3. Net income applicable to common stock - before interest applicable to convertible debentures $748,838 $643,366 PRIMARY NET INCOME PER COMMON SHARE: Shares: 4. Weighted average number of common shares outstanding 254,530 261,341 5. Incremental shares: Dilutive common stock options 3,208 2,344 Dilutive stock appreciation rights 19 47 Dilutive contingent shares 174 Total incremental shares 3,401 2,391 6. Primary net income per common share (1 divided by 4) $ 2.94* $ 2.46* FULLY DILUTED NET INCOME PER COMMON SHARE: Shares: 7. Weighted average number of common shares outstanding 254,530 261,341 8. Incremental shares: Dilutive common stock options 3,374 2,344 Dilutive stock appreciation rights 20 48 Dilutive contingent shares 174 9. Common equivalent shares from assumed conversion of convertible debentures: 5-1/2% debentures due 2001 34 51 10. Total 258,132 263,784 11. Fully diluted net income per common share (3 divided by 10) $ 2.94* $ 2.46* - ---------------- * Net income per common share outstanding was used in the designated calculations since the dilutive effects of common stock options, stock appreciation rights, contingent shares and assumed conversion of convertible debentures were immaterial. Page 32