EXHIBIT 12
DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended
January 31, Year Ended October 31,
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2002 2001 2001 2000 1999 1998 1997
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(In thousands of dollars)
Earnings:
Income (loss) of consolidated group
before income taxes $ (53,469) $ 92,532 $ (24,757) $ 777,507 $ 365,135 $1,560,032 $1,507,070
Dividends received from less-than-fifty
percent owned affiliates 644 1,675 3,065 5,734 5,555 3,591
Fixed charges excluding capitalized
interest 167,397 203,554 787,737 693,626 571,949 531,817 433,673
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Total earnings $ 114,572 $ 296,086 $ 764,655 $1,474,198 $ 942,818 $2,097,404 $1,944,334
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Fixed charges:
Interest expense of consolidated
group including capitalized
interest $ 161,988 $ 199,327 $ 766,254 $ 677,424 $ 557,740 $ 521,418 $ 422,588
Portion of rental charges deemed to
be interest 5,508 4,281 22,030 17,122 15,347 12,451 11,497
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Total fixed charges $ 167,496 $ 203,608 $ 788,284 $ 694,546 $ 573,087 $ 533,869 $ 434,085
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Ratio of earnings to fixed charges* ** 1.45 ** 2.12 1.65 3.93 4.48
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The computation of the ratio of earnings to fixed charges is based on
applicable amounts of the Company and its consolidated subsidiaries plus
dividends received from less-than-fifty percent owned affiliates.
"Earnings" consist of income before income taxes, the cumulative effect of
changes in accounting and fixed charges excluding capitalized interest.
"Fixed charges" consist of interest on indebtedness, amortization of debt
discount and expense, an estimated amount of rental expense which is deemed
to be representative of the interest factor, and capitalized interest.
* The Company has not issued preferred stock. Therefore, the ratios of
earnings to combined fixed charges and preferred stock dividends are the
same as the ratios presented above.
** For the first quarter of 2002 and year ended October 31, 2001, earnings
available for fixed charges coverage were $53 million and $24 million less,
respectively, than the amount required for a ratio of earnings to fixed
charges of 1.0.