UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 

WASHINGTON, D.C.  20549

 


FORM 10-Q


 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended January 31, 2012

 

 

Commission file no: 1-4121

 

 

DEERE  &  COMPANY

(Exact name of registrant as specified in its charter)

Delaware
(State of incorporation)

 

36-2382580
(IRS employer identification no.)

One John Deere Place

Moline, Illinois 61265

(Address of principal executive offices)

Telephone Number:  (309) 765-8000

 


Indicate by check mark whether the registrant:  (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes    X   No           

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes    X   No           

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

 

Large Accelerated Filer

X

 

Accelerated Filer

 

 

Non-Accelerated Filer

 

 

Smaller Reporting Company

 

 

(Do not check if a smaller reporting company)

 

 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes        No      X    

 

At January 31, 2012, 401,826,150 shares of common stock, $1 par value, of the registrant were outstanding.

 

Index to Exhibits:  Page 44

 



 

PART I. FINANCIAL INFORMATION

 

ITEM 1.  FINANCIAL STATEMENTS

DEERE & COMPANY
STATEMENT OF CONSOLIDATED INCOME
For the Three Months Ended January 31, 2012 and 2011
(In millions of dollars and shares except per share amounts) Unaudited

 

 

2012

 

2011

Net Sales and Revenues

 

 

 

 

 

 

Net sales

 

$

6,119.0

 

 

$

5,513.8

 

Finance and interest income

 

475.1

 

 

460.1

 

Other income

 

172.4

 

 

145.3

 

Total

 

6,766.5

 

 

6,119.2

 

 

 

 

 

 

 

 

Costs and Expenses

 

 

 

 

 

 

Cost of sales

 

4,576.0

 

 

4,094.1

 

Research and development expenses

 

312.5

 

 

268.9

 

Selling, administrative and general expenses

 

709.0

 

 

665.0

 

Interest expense

 

192.1

 

 

202.5

 

Other operating expenses

 

176.6

 

 

142.7

 

Total

 

5,966.2

 

 

5,373.2

 

 

 

 

 

 

 

 

Income of Consolidated Group before Income Taxes

 

800.3

 

 

746.0

 

Provision for income taxes

 

266.2

 

 

232.2

 

Income of Consolidated Group

 

534.1

 

 

513.8

 

Equity in income of unconsolidated affiliates

 

.3

 

 

.5

 

Net Income

 

534.4

 

 

514.3

 

Less:  Net income attributable to noncontrolling interests

 

1.5

 

 

.6

 

Net Income Attributable to Deere & Company

 

$

532.9

 

 

$

513.7

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

Basic

 

$

1.32

 

 

$

1.22

 

Diluted

 

$

1.30

 

 

$

1.20

 

 

 

 

 

 

 

 

Average Shares Outstanding

 

 

 

 

 

 

Basic

 

404.0

 

 

421.8

 

Diluted

 

408.4

 

 

427.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Condensed Notes to Interim Consolidated Financial Statements.

 

2



 

DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions of dollars) Unaudited

 

 

January 31

 

October 31

 

January 31

 

 

2012

 

2011

 

2011

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,388.3

 

 

$

3,647.2

 

 

$

3,438.0

 

Marketable securities

 

1,126.4

 

 

787.3

 

 

234.2

 

Receivables from unconsolidated affiliates

 

48.6

 

 

48.0

 

 

43.8

 

Trade accounts and notes receivable - net

 

3,333.4

 

 

3,294.5

 

 

3,237.1

 

Financing receivables - net

 

19,098.3

 

 

19,923.5

 

 

18,164.1

 

Financing receivables securitized - net

 

2,680.9

 

 

2,905.0

 

 

1,768.2

 

Other receivables

 

1,245.6

 

 

1,330.6

 

 

885.1

 

Equipment on operating leases - net

 

2,052.4

 

 

2,150.0

 

 

1,845.4

 

Inventories

 

5,677.7

 

 

4,370.6

 

 

4,178.4

 

Property and equipment - net

 

4,303.8

 

 

4,352.3

 

 

3,781.5

 

Investments in unconsolidated affiliates

 

226.0

 

 

201.7

 

 

215.3

 

Goodwill

 

964.9

 

 

999.8

 

 

997.3

 

Other intangible assets - net

 

119.4

 

 

127.4

 

 

133.1

 

Retirement benefits

 

29.1

 

 

30.4

 

 

176.9

 

Deferred income taxes

 

2,879.5

 

 

2,858.6

 

 

2,664.5

 

Other assets

 

1,402.6

 

 

1,180.5

 

 

1,132.9

 

Total Assets

 

$

48,576.9

 

 

$

48,207.4

 

 

$

42,895.8

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

$

8,506.4

 

 

$

6,852.3

 

 

$

5,693.3

 

Short-term securitization borrowings

 

2,613.8

 

 

2,777.4

 

 

1,764.8

 

Payables to unconsolidated affiliates

 

113.5

 

 

117.7

 

 

276.9

 

Accounts payable and accrued expenses

 

6,816.7

 

 

7,804.8

 

 

5,910.5

 

Deferred income taxes

 

152.8

 

 

168.3

 

 

149.8

 

Long-term borrowings

 

16,924.0

 

 

16,959.9

 

 

16,705.9

 

Retirement benefits and other liabilities

 

6,670.5

 

 

6,712.1

 

 

5,807.9

 

Total liabilities

 

41,797.7

 

 

41,392.5

 

 

36,309.1

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $1 par value (issued shares at January 31, 2012 – 536,431,204)

 

3,276.8

 

 

3,251.7

 

 

3,154.6

 

Common stock in treasury

 

(7,656.6

)

 

(7,292.8

)

 

(6,003.2

)

Retained earnings

 

14,887.1

 

 

14,519.4

 

 

12,719.2

 

Accumulated other comprehensive income (loss)

 

(3,743.9

)

 

(3,678.0

)

 

(3,292.0

)

Total Deere & Company stockholders’ equity

 

6,763.4

 

 

6,800.3

 

 

6,578.6

 

Noncontrolling interests

 

15.8

 

 

14.6

 

 

8.1

 

Total stockholders’ equity

 

6,779.2

 

 

6,814.9

 

 

6,586.7

 

Total Liabilities and Stockholders’ Equity

 

$

48,576.9

 

 

$

48,207.4

 

 

$

42,895.8

 

 

 

See Condensed Notes to Interim Consolidated Financial Statements.

 

3



 

DEERE & COMPANY
STATEMENT OF CONSOLIDATED CASH FLOWS
For the Three Months Ended January 31, 2012 and 2011
(In millions of dollars) Unaudited

 

 

2012

 

 

2011

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

 

Net income

 

$

534.4

 

 

$

514.3

 

Adjustments to reconcile net income to net cash used for operating activities:

 

 

 

 

 

 

Provision (credit) for doubtful receivables

 

(.8

)

 

7.9

 

Provision for depreciation and amortization

 

243.3

 

 

219.0

 

Share-based compensation expense

 

19.5

 

 

15.0

 

Undistributed earnings of unconsolidated affiliates

 

.7

 

 

8.6

 

Credit for deferred income taxes

 

(28.2

)

 

(185.1

)

Changes in assets and liabilities:

 

 

 

 

 

 

Trade, notes and financing receivables related to sales

 

221.6

 

 

(110.0

)

Inventories

 

(1,449.1

)

 

(1,096.1

)

Accounts payable and accrued expenses

 

(854.8

)

 

(447.3

)

Accrued income taxes payable/receivable

 

160.4

 

 

130.5

 

Retirement benefits

 

101.5

 

 

94.2

 

Other

 

(175.3

)

 

(51.3

)

Net cash used for operating activities

 

(1,226.8

)

 

(900.3

)

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

 

Collections of receivables (excluding receivables related to sales)

 

4,019.9

 

 

3,761.7

 

Proceeds from maturities and sales of marketable securities

 

8.2

 

 

9.4

 

Proceeds from sales of equipment on operating leases

 

222.3

 

 

196.5

 

Proceeds from sales of businesses, net of cash sold

 

6.9

 

 

891.6

 

Cost of receivables acquired (excluding receivables related to sales)

 

(3,485.4

)

 

(3,390.2

)

Purchases of marketable securities

 

(342.8

)

 

(20.7

)

Purchases of property and equipment

 

(269.1

)

 

(214.9

)

Cost of equipment on operating leases acquired

 

(118.3

)

 

(92.4

)

Acquisitions of businesses, net of cash acquired

 

 

 

 

(46.6

)

Other

 

(78.1

)

 

(111.6

)

Net cash provided by (used for) investing activities

 

(36.4

)

 

982.8

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

 

Increase in total short-term borrowings

 

481.8

 

 

19.5

 

Proceeds from long-term borrowings

 

1,410.2

 

 

328.4

 

Payments of long-term borrowings

 

(315.0

)

 

(453.5

)

Proceeds from issuance of common stock

 

18.9

 

 

88.9

 

Repurchases of common stock

 

(387.9

)

 

(302.2

)

Dividends paid

 

(167.8

)

 

(127.2

)

Excess tax benefits from share-based compensation

 

10.6

 

 

32.6

 

Other

 

(10.7

)

 

(11.5

)

Net cash provided by (used for) financing activities

 

1,040.1

 

 

(425.0

)

 

 

 

 

 

 

 

Effect of Exchange Rate Changes on Cash and Cash Equivalents

 

(35.8

)

 

(10.1

)

 

 

 

 

 

 

 

Net Decrease in Cash and Cash Equivalents

 

(258.9

)

 

(352.6

)

Cash and Cash Equivalents at Beginning of Period

 

3,647.2

 

 

3,790.6

 

Cash and Cash Equivalents at End of Period

 

$

3,388.3

 

 

$

3,438.0

 

 

 

See Condensed Notes to Interim Consolidated Financial Statements.

 

4



 

DEERE & COMPANY

STATEMENT OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY

For the Three Months Ended January 31, 2011 and 2012

(In millions of dollars)

 

 

 

 

Deere & Company Stockholders

 

 

 

 

 

Total
Stockholders’
Equity

 

Comprehensive
Income (Loss)

 

Common
Stock

 

Treasury
Stock

 

Retained
Earnings

 

Accumulated
Other
Comprehensive
Income (Loss)

 

Non-
controlling
Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance October 31, 2010

 

$

6,303.4

 

 

 

$

3,106.3

 

$

(5,789.5

)

$

12,353.1

 

$

(3,379.6

)

$

13.1

 

Net income

 

514.3

 

$

513.7

 

 

 

 

 

513.7

 

 

 

.6

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement benefits adjustment

 

66.2

 

66.2

 

 

 

 

 

 

 

66.2

 

 

 

Cumulative translation adjustment

 

20.4

 

20.4

 

 

 

 

 

 

 

20.4

 

 

 

Unrealized gain on derivatives

 

5.1

 

5.1

 

 

 

 

 

 

 

5.1

 

 

 

Unrealized loss on investments

 

(4.1

)

(4.1

)

 

 

 

 

 

 

(4.1

)

 

 

Comprehensive income

 

601.9

 

$

601.3

 

 

 

 

 

 

 

 

 

.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchases of common stock

 

(302.2

)

 

 

 

 

(302.2

)

 

 

 

 

 

 

Treasury shares reissued

 

88.5

 

 

 

 

 

88.5

 

 

 

 

 

 

 

Dividends declared

 

(151.2

)

 

 

 

 

 

 

(147.7

)

 

 

(3.5

)

Stock options and other

 

46.3

 

 

 

48.3

 

 

 

.1

 

 

 

(2.1

)

Balance January 31, 2011

 

$

6,586.7

 

 

 

$

3,154.6

 

$

(6,003.2

)

$

12,719.2

 

$

(3,292.0

)

$

8.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance October 31, 2011

 

$

6,814.9

 

 

 

$

3,251.7

 

$

(7,292.8

)

$

14,519.4

 

$

(3,678.0

)

$

14.6

 

Net income

 

534.4

 

$

532.9

 

 

 

 

 

532.9

 

 

 

1.5

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement benefits adjustment

 

70.4

 

70.4

 

 

 

 

 

 

 

70.4

 

 

 

Cumulative translation adjustment

 

(136.1

)

(135.9

)

 

 

 

 

 

 

(135.9

)

(.2

)

Unrealized loss on derivatives

 

(3.6

)

(3.6

)

 

 

 

 

 

 

(3.6

)

 

 

Unrealized gain on investments

 

3.2

 

3.2

 

 

 

 

 

 

 

3.2

 

 

 

Comprehensive income

 

468.3

 

$

467.0

 

 

 

 

 

 

 

 

 

1.3

 

Repurchases of common stock

 

(387.9

)

 

 

 

 

(387.9

)

 

 

 

 

 

 

Treasury shares reissued

 

24.1

 

 

 

 

 

24.1

 

 

 

 

 

 

 

Dividends declared

 

(165.3

)

 

 

 

 

 

 

(165.3

)

 

 

 

 

Stock options and other

 

25.1

 

 

 

25.1

 

 

 

.1

 

 

 

(.1

)

Balance January 31, 2012

 

$

6,779.2

 

 

 

$

3,276.8

 

$

(7,656.6

)

$

14,887.1

 

$

(3,743.9

)

$

15.8

 

 

 

See Condensed Notes to Interim Consolidated Financial Statements.

 

5



 

Condensed Notes to Interim Consolidated Financial Statements (Unaudited)

 

(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 the Company’s financial services operations.

 

Consolidated - Represents the consolidation of the equipment operations and financial services.  References to “Deere & Company” or “the Company” refer to the entire enterprise.

 

Reclassifications

 

Certain items previously reported in specific financial statement captions have been reclassified to conform to the 2012 financial statement presentation.  Short-term securitization borrowings have been shown separately from other short-term borrowings on the Condensed Consolidated Balance Sheet as a result of the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2009-17 last year.  In the Supplemental Consolidating Data in Note 18, the costs and collections of trade receivables and wholesale notes for the financial services statement of cash flows investing activities have been presented on a net basis.  These receivables have short durations with a high turnover rate.  The total cash flows for the financial services investing activities have not changed.  The presentation of these receivables on the Statement of Consolidated Cash Flows has also not changed and continues to be shown as an adjustment to net income in the operating activities since they are related to sales.

 

Variable Interest Entities

 

The Company is the primary beneficiary of and consolidates a supplier that is a variable interest entity (VIE).  The Company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.  No additional support beyond what was previously contractually required has been provided during any periods presented.  The VIE produces blended fertilizer and other lawn care products for the agriculture and turf segment.

 

The assets and liabilities of this supplier VIE consisted of the following in millions of dollars:

 

 

 

January 31
2012

 

October 31
2011

 

January 31
2011

Cash and cash equivalents

 

 

 

 

 $

11

 

 

 

 

Intercompany receivables

 

 $

10

 

 

14

 

 

 $

9

 

Inventories

 

46

 

 

30

 

 

58

 

Property and equipment - net

 

3

 

 

3

 

 

4

 

Other assets

 

2

 

 

3

 

 

3

 

Total assets

 

 $

61

 

 

 $

61

 

 

 $

74

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

 $

5

 

 

 

 

 

 $

9

 

Accounts payable and accrued expenses

 

49

 

 

 $

56

 

 

65

 

Total liabilities

 

 $

54

 

 

 $

56

 

 

 $

74

 

 

6



 

The VIE is financed through its own accounts payable and short-term borrowings.  The assets of the VIE can only be used to settle the obligations of the VIE.  The creditors of the VIE do not have recourse to the general credit of the Company.

 

See Note 11 for VIEs related to securitization of financing receivables.

 

(2)            The consolidated financial statements of Deere & Company and consolidated subsidiaries 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 financial statements be read in conjunction with the 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

 

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 $78 million and $51 million in the first three months of 2012 and 2011, respectively.  The Company also had accounts payable related to purchases of property and equipment of approximately $44 million and $34 million at January 31, 2012 and 2011, respectively.

 

(3)            New accounting standard adopted in the first three months of 2012 was as follows:

 

In the first quarter of 2012, the Company adopted the remaining provisions of FASB ASU No. 2010-06, Improving Disclosures about Fair Value Measurements, which amends Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures.  This ASU requires disclosures of transfers into and out of Levels 1 and 2, more detailed roll forward reconciliations of Level 3 recurring fair value measurements on a gross basis, fair value information by class of assets and liabilities, and descriptions of valuation techniques and inputs for Level 2 and Level 3 measurements.  The effective date was the second quarter of fiscal year 2010 except for the roll forward reconciliations, which were required in the first quarter of fiscal year 2012.  The adoption in 2010 and the adoption in the first quarter of 2012 did not have a material effect on the Company’s consolidated financial statements.

 

7



 

New accounting standards to be adopted are as follows:

 

In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, which amends ASC 820, Fair Value Measurement.  This ASU requires the categorization by level for items that are required to be disclosed at fair value, information about transfers between Level 1 and Level 2 and additional disclosure for Level 3 measurements.  In addition, the ASU provides guidance on measuring the fair value of financial instruments managed within a portfolio and the application of premiums and discounts on fair value measurements.  The effective date will be the second quarter of fiscal year 2012.  The adoption will not have a material effect on the Company’s consolidated financial statements.

 

In June 2011, the FASB issued ASU No. 2011-05, Presentation of Comprehensive Income, which amends ASC 220, Comprehensive Income.  This ASU requires the presentation of total comprehensive income, total net income and the components of net income and comprehensive income either in a single continuous statement or in two separate but consecutive statements.  The requirements do not change how earnings per share is calculated or presented.  The effective date will be the first quarter of fiscal year 2013 and must be applied retrospectively.  The adoption will not have a material effect on the Company’s consolidated financial statements.

 

In September 2011, the FASB issued ASU No. 2011-08, Testing Goodwill for Impairment, which amends ASC 350, Intangibles – Goodwill and Other.  This ASU gives an entity the option to first assess qualitative factors to determine if goodwill is impaired.  The entity may first determine based on qualitative factors if it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill.  If that assessment indicates no impairment, the first and second steps of the previous quantitative goodwill impairment test are not required.  The effective date will be the first quarter of fiscal year 2013 with early adoption permitted.  The adoption will not have a material effect on the Company’s consolidated financial statements.

 

In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities, which amends ASC 210, Balance Sheet.  This ASU requires entities to disclose gross and net information about both instruments and transactions eligible for offset in the statement of financial position and those subject to an agreement similar to a master netting arrangement.  This would include derivatives and other financial securities arrangements.  The effective date will be the first quarter of fiscal year 2014 and must be applied retrospectively.  The adoption will not have a material effect on the Company’s consolidated financial statements.

 

(4)            Comprehensive income, which includes all changes in the total stockholders’ equity during the period except transactions with stockholders, was as follows in millions of dollars:

 

 

 

Three Months Ended
January 31

 

 

 

2012

 

 

2011

 

Net income

 

  $

534.4

 

 

  $

514.3

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

Retirement benefits adjustment

 

70.4

 

 

66.2

 

Cumulative translation adjustment

 

(136.1

)

 

20.4

 

Unrealized gain (loss) on derivatives

 

(3.6

)

 

5.1

 

Unrealized gain (loss) on investments

 

3.2

 

 

(4.1

)

Comprehensive income

 

  $

468.3

 

 

  $

601.9

 

 

8



 

For the first quarter of 2012 and 2011, the table above includes noncontrolling interests’ comprehensive income of $1.3 million and $.6 million, which consists of net income of $1.5 million and $.6 million and cumulative translation adjustments of $(.2) million and none, respectively.

 

(5)            Dividends declared and paid on a per share basis were as follows:

 

 

 

Three Months Ended
January 31

 

 

 

2012

 

 

2011

 

Dividends declared

 

 $

 .41    

 

 

$

 .35    

 

Dividends paid

 

 $

 .41    

 

 

$

 .30    

 

 

(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
January 31

 

 

 

2012

 

 

2011

 

Net income attributable to Deere & Company

 

  $

532.9

 

 

  $

513.7

 

Less income allocable to participating securities

 

.2

 

 

.1

 

Income allocable to common stock

 

  $

532.7

 

 

  $

513.6

 

Average shares outstanding

 

404.0

 

 

421.8

 

Basic per share

 

  $

1.32

 

 

  $

1.22

 

 

 

 

 

 

 

 

Average shares outstanding

 

404.0

 

 

421.8

 

Effect of dilutive share-based compensation

 

4.4

 

 

5.7

 

Total potential shares outstanding

 

408.4

 

 

427.5

 

Diluted per share

 

  $

1.30

 

 

  $

1.20

 

 

During the first quarter of 2012 and 2011, 4.4 million shares and 4.0 million shares, respectively, related to share-based compensation were excluded from the above diluted per share computation because the incremental shares under the treasury stock method would have been antidilutive.

 

(7)            The Company has several defined benefit pension plans covering its U.S. employees and employees in certain foreign countries.  The Company also has several defined benefit postretirement health care and life insurance plans for employees in the U.S. and Canada.

 

The worldwide components of net periodic pension cost consisted of the following in millions of dollars:

 

 

 

Three Months Ended
January 31

 

 

 

2012

 

 

2011

 

Service cost

 

 $

53

 

 

 $

49

 

Interest cost

 

116

 

 

124

 

Expected return on plan assets

 

(196

)

 

(199

)

Amortization of actuarial loss

 

52

 

 

38

 

Amortization of prior service cost

 

10

 

 

10

 

Settlements/curtailments

 

1

 

 

 

 

Net cost

 

 $

36

 

 

 $

22

 

 

9



 

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
January 31

 

 

 

2012

 

 

2011

 

Service cost

 

  $

 12

 

 

  $

 11

 

Interest cost

 

71

 

 

81

 

Expected return on plan assets

 

(25

)

 

(28

)

Amortization of actuarial loss

 

60

 

 

67

 

Amortization of prior service credit

 

(3

)

 

(4

)

Net cost

 

  $

 115

 

 

  $

 127

 

 

During the first quarter of 2012, the Company contributed approximately $21 million to its pension plans and $12 million to its other postretirement benefit plans.  The Company presently anticipates contributing an additional $412 million to its pension plans and $15 million to its other postretirement benefit plans during the remainder of fiscal year 2012.  These contributions include payments from Company funds to either increase plan assets or make direct payments to plan participants.

 

(8)            The Company’s unrecognized tax benefits at January 31, 2012 were $176 million, compared to $199 million at October 31, 2011.  The January 31, 2012 liability consisted of approximately $43 million that would affect the effective tax rate if it was recognized.  The remaining liability was related to tax positions for which there are offsetting tax receivables, or the uncertainty was only related to timing.  The changes to the unrecognized tax benefits for the first three months of 2012 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.

 

10



 

(9)   Worldwide net sales and revenues, operating profit and identifiable assets by segment in millions of dollars follow:

 

 

 

Three Months Ended January 31

 

 

 

 

 

 

 

 

%

 

 

2012

 

 

2011

 

 

Change

Net sales and revenues:

 

 

 

 

 

 

 

 

Agriculture and turf

 

 $

4,724

 

 

 $

4,371

 

 

+8

Construction and forestry

 

1,395

 

 

1,143

 

 

+22

Total net sales

 

6,119

 

 

5,514

 

 

+11

Financial services

 

548

 

 

507

 

 

+8

Other revenues

 

100

 

 

98

 

 

+2

Total net sales and revenues

 

 $

6,767

 

 

 $

6,119

 

 

+11

 

 

 

 

 

 

 

 

 

Operating profit *

 

 

 

 

 

 

 

 

Agriculture and turf

 

 $

574

 

 

 $

558

 

 

+3

Construction and forestry

 

124

 

 

88

 

 

+41

Financial services

 

175

 

 

172

 

 

+2

Total operating profit

 

873

 

 

818

 

 

+7

Other reconciling items **

 

(340

)

 

(304

)

 

+12

Net income attributable to Deere & Company

 

 $

533

 

 

 $

514

 

 

+4

 

 

 

 

 

 

 

 

 

Identifiable assets:

 

 

 

 

 

 

 

 

Agriculture and turf

 

 $

10,154

 

 

 $

8,378

 

 

+21

Construction and forestry

 

3,049

 

 

2,515

 

 

+21

Financial services

 

29,817

 

 

26,626

 

 

+12

Corporate

 

5,557

 

 

5,377

 

 

+3

Total assets

 

 $

48,577

 

 

 $

42,896

 

 

+13

 

 

 

 

 

 

 

 

 

Intersegment sales and revenues:

 

 

 

 

 

 

 

 

Agriculture and turf net sales

 

 $

23

 

 

 $

19

 

 

+21

Construction and forestry net sales

 

 

 

 

3

 

 

 

Financial services

 

52

 

 

48

 

 

+8

 

 

 

 

 

 

 

 

 

Equipment operations outside the U.S. and Canada:

 

 

 

 

 

 

 

 

Net sales

 

 $

2,528

 

 

 $

2,093

 

 

+21

Operating profit

 

170

 

 

214

 

 

-21

 

*    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.

 

**   Other reconciling items are primarily corporate expenses, certain external interest expense, certain foreign exchange gains and losses, income taxes and net income attributable to noncontrolling interests.

 

11



 

(10)              Past due balances of financing receivables 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, 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 resumed when the receivable becomes contractually current and collections are reasonably assured.

 

An age analysis of past due and non-performing financing receivables in millions of dollars follows:

 

 

 

January 31, 2012

 

 

 

30-59 Days
Past Due

 

60-89 Days
Past Due

 

90 Days
or Greater
Past Due *

 

Total
Past Due

 

Retail Notes:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

$

68

 

$

30

 

$

25

 

$

123

 

Construction and forestry

 

38

 

17

 

10

 

65

 

Other:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

19

 

13

 

4

 

36

 

Construction and forestry

 

9

 

4

 

2

 

15

 

Total

 

$

134

 

$

64

 

$

41

 

$

239

 

 

 

 

Total
Past Due

 

Total
Non-
Performing

 

Current

 

Total
Financing
Receivables

 

Retail Notes:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

$

123

 

$

145

 

$

14,617

 

$

14,885

 

Construction and forestry

 

65

 

15

 

1,327

 

1,407

 

Other:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

36

 

15

 

4,667

 

4,718

 

Construction and forestry

 

15

 

3

 

946

 

964

 

Total

 

$

239

 

$

178

 

$

21,557

 

21,974

 

 

 

 

 

 

 

 

 

 

 

Less allowance for doubtful receivables

 

 

 

 

 

 

 

195

 

Total financing receivables - net

 

 

 

 

 

 

 

$

21,779

 

 

*                 Financing receivables that are 90 days or greater past due and still accruing finance income.

 

12



 

 

 

October 31, 2011

 

 

 

30-59 Days
Past Due

 

60-89 Days
Past Due

 

90 Days
or Greater
Past Due *

 

Total
Past Due

 

Retail Notes:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

$

81

 

$

30

 

$

25

 

$

136

 

Construction and forestry

 

45

 

20

 

11

 

76

 

Other:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

23

 

10

 

5

 

38

 

Construction and forestry

 

7

 

4

 

2

 

13

 

Total

 

$

156

 

$

64

 

$

43

 

$

263

 

 

 

 

Total
Past Due

 

Total
Non-
Performing

 

Current

 

Total
Financing
Receivables

 

Retail Notes:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

$

136

 

$

132

 

$

14,667

 

$

14,935

 

Construction and forestry

 

76

 

17

 

1,264

 

1,357

 

Recreational products

 

 

 

 

 

4

 

4

 

Other:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

38

 

16

 

5,655

 

5,709

 

Construction and forestry

 

13

 

5

 

1,003

 

1,021

 

Total

 

$

263

 

$

170

 

$

22,593

 

23,026

 

 

 

 

 

 

 

 

 

 

 

Less allowance for doubtful receivables

 

 

 

 

 

 

 

197

 

Total financing receivables - net

 

 

 

 

 

 

 

$

22,829

 

 

*                 Financing receivables that are 90 days or greater past due and still accruing finance income.

 

13



 

 

 

January 31, 2011

 

 

 

30-59 Days
Past Due

 

60-89 Days
Past Due

 

90 Days
or Greater
Past Due *

 

Total
Past Due

 

Retail Notes:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

$

97

 

$

46

 

$

35

 

$

178

 

Construction and forestry

 

49

 

30

 

27

 

106

 

Other:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

30

 

13

 

16

 

59

 

Construction and forestry

 

14

 

6

 

6

 

26

 

Total

 

$

190

 

$

95

 

$

84

 

$

369

 

 

 

 

Total
Past Due

 

Total
Non-
Performing

 

Current

 

Total
Financing
Receivables

 

Retail Notes:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

$

178

 

$

160

 

$

12,767

 

$

13,105

 

Construction and forestry

 

106

 

26

 

1,181

 

1,313

 

Recreational products

 

 

 

 

 

5

 

5

 

Other:

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

59

 

18

 

4,762

 

4,839

 

Construction and forestry

 

26

 

12

 

849

 

887

 

Total

 

$

369

 

$

216

 

$

19,564

 

20,149

 

 

 

 

 

 

 

 

 

 

 

Less allowance for doubtful receivables

 

 

 

 

 

 

 

217

 

Total financing receivables - net

 

 

 

 

 

 

 

$

19,932

 

 

* Financing receivables that are 90 days or greater past due and still accruing finance income.

 

14



 

An analysis of the allowance for doubtful financing receivables and investment in financing receivables in millions of dollars during the periods follows:

 

 

 

Retail
Notes

 

Revolving
Charge
Accounts

 

Other

 

Total

 

January 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period balance

 

$

130

 

 

$

40

 

 

$

27

 

 

$

197

 

 

Provision

 

 

 

 

1

 

 

 

 

 

1

 

 

Write-offs

 

(2

)

 

(7

)

 

(1

)

 

(10

)

 

Recoveries

 

2

 

 

6

 

 

 

 

 

8

 

 

Translation adjustments

 

(1

)

 

 

 

 

 

 

 

(1

)

 

End of period balance

 

$

129

 

 

$

40

 

 

$

26

 

 

$

195

 

 

Balance individually evaluated *

 

$

1

 

 

 

 

 

 

 

 

$

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

End of period balance

 

$

16,292

 

 

$

1,813

 

 

$

3,869

 

 

$

21,974

 

 

Balance individually evaluated *

 

$

13

 

 

 

 

 

$

5

 

 

$

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period balance

 

$

144

 

 

$

44

 

 

$

37

 

 

$

225

 

 

Provision

 

4

 

 

3

 

 

1

 

 

8

 

 

Write-offs

 

(17

)

 

(10

)

 

(2

)

 

(29

)

 

Recoveries

 

3

 

 

8

 

 

 

 

 

11

 

 

Translation adjustments

 

2

 

 

 

 

 

 

 

 

2

 

 

End of period balance

 

$

136

 

 

$

45

 

 

$

36

 

 

$

217

 

 

Balance individually evaluated *

 

$

2

 

 

$

1

 

 

$

4

 

 

$

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

End of period balance

 

$

14,424

 

 

$

1,867

 

 

$

3,858

 

 

$

20,149

 

 

Balance individually evaluated *

 

$

15

 

 

$

2

 

 

$

14

 

 

$

31

 

 

 

* Remainder is collectively evaluated.

 

15



 

Financing receivables are considered impaired when it is probable the Company will be unable to collect all amounts due according to the contractual terms.

 

An analysis of the impaired financing receivables in millions of dollars follows:

 

 

 

Recorded
Investment

 

Unpaid
Principal
Balance

 

Specific
Allowance

 

Average
Recorded
Investment

 

January 31, 2012

 

 

 

 

 

 

 

 

 

Receivables with specific allowance *

 

$

4

 

$

4

 

$

1

 

$

4

 

Receivables without a specific allowance **

 

10

 

10

 

 

 

9

 

Total

 

$

14

 

$

14

 

$

1

 

$

13

 

Agriculture and turf

 

$

9

 

$

9

 

$

1

 

$

8

 

Construction and forestry

 

$

5

 

$

5

 

 

 

$

5

 

 

 

 

 

 

 

 

 

 

 

October 31, 2011

 

 

 

 

 

 

 

 

 

Receivables with specific allowance *

 

$

7

 

$

7

 

$

1

 

$

8

 

Receivables without a specific allowance **

 

9

 

9

 

 

 

12

 

Total

 

$

16

 

$

16

 

$

1

 

$

20

 

Agriculture and turf

 

$

11

 

$

11

 

$

1

 

$

14

 

Construction and forestry

 

$

5

 

$

5

 

 

 

$

6

 

 

 

 

 

 

 

 

 

 

 

January 31, 2011

 

 

 

 

 

 

 

 

 

Receivables with specific allowance *

 

$

9

 

$

9

 

$

7

 

$

20

 

Receivables without a specific allowance **

 

9

 

9

 

 

 

9

 

Total

 

$

18

 

$

18

 

$

7

 

$

29

 

Agriculture and turf

 

$

12

 

$

12

 

$

6

 

$

13

 

Construction and forestry

 

$

6

 

$

6

 

$

1

 

$

16

 

 

*                 Finance income recognized was not material.

**          Primarily retail notes.

 

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 quarter of 2012, the Company identified 52 financing receivable contracts, primarily retail notes, as troubled debt restructurings with aggregate balances of $1.1 million pre-modification and $1.0 million post-modification.  During the first quarter of 2011, there were 45 contracts with $1.6 million pre-modification and $1.4 million post-modification balances.  During these same periods, there were no troubled debt restructurings that subsequently defaulted and were written off.  At January 31, 2012, the Company had no commitments to lend additional funds to borrowers whose accounts were modified in troubled debt restructurings.

 

16



 

 

(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 a non-VIE banking operation, 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-VIE 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 a non-VIE banking operation, 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 $1,278 million, $1,523 million and $1,133 million at January 31, 2012, October 31, 2011 and January 31, 2011, respectively.  The liabilities (short-term securitization borrowings and accrued interest) of these SPEs totaled $1,159 million, $1,395 million and $1,073 million at January 31, 2012, October 31, 2011 and January 31, 2011, 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 a non-VIE bank operation, which is not consolidated since the Company does not have a controlling interest in the entity.  The Company’s carrying values and interests related to the securitizations with the unconsolidated non-VIE were restricted assets (retail notes securitized, allowance for credit losses and other assets) of $354 million, $369 million and $177 million at January 31, 2012, October 31, 2011 and January 31, 2011, respectively.  The liabilities (short-term securitization borrowings and accrued interest) were $344 million, $346 million and $173 million at January 31, 2012, October 31, 2011 and January 31, 2011, respectively.

 

17



 

 

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 $1,143 million, $1,109 million and $531 million at January 31, 2012, October 31, 2011 and January 31, 2011, respectively.  The liabilities (short-term securitization borrowings and accrued interest) related to these conduits were $1,112 million, $1,038 million and $520 million at January 31, 2012, October 31, 2011 and January 31, 2011, 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:

 

 

 

January 31, 2012

 

Carrying value of liabilities

 

$        1,112

 

Maximum exposure to loss

 

          1,143

 

 

The total assets of unconsolidated VIEs related to securitizations were approximately $29 billion at January 31, 2012.

 

The components of consolidated restricted assets related to secured borrowings in securitization transactions follow in millions of dollars:

 

 

 

January 31
2012

 

October 31
2011

 

January 31
2011

 

Financing receivables securitized (retail notes)

 

$

2,695

 

 

$

2,923

 

 

$

1,788

 

 

Allowance for credit losses

 

(14

)

 

(18

)

 

(20

)

 

Other assets

 

94

 

 

96

 

 

73

 

 

Total restricted securitized assets

 

$

2,775

 

 

$

3,001

 

 

$

1,841

 

 

 

The components of consolidated secured borrowings and other liabilities related to securitizations follow in millions of dollars:

 

 

 

January 31
2012

 

October 31
2011

 

January 31
2011

 

Short-term securitization borrowings

 

$

2,614

 

 

$

2,777

 

 

$

1,765

 

 

Accrued interest on borrowings

 

1

 

 

2

 

 

1

 

 

Total liabilities related to restricted securitized assets

 

$

2,615

 

 

$

2,779

 

 

$

1,766

 

 

 

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 January 31, 2012, the maximum remaining term of all restricted receivables was approximately six years.

 

18



 

(12)     Most inventories owned by Deere & Company and its U.S. 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:

 

 

 

January 31
2012

 

October 31
2011

 

January 31
2011

 

Raw materials and supplies

 

$

1,850

 

$

1,626

 

$

1,413

 

Work-in-process

 

814

 

647

 

612

 

Finished goods and parts

 

4,503

 

3,584

 

3,591

 

Total FIFO value

 

7,167

 

5,857

 

5,616

 

Less adjustment to LIFO value

 

1,489

 

1,486

 

1,438

 

Inventories

 

$

5,678

 

$

4,371

 

$

4,178

 

 

(13)     The changes in amounts of goodwill by operating segments were as follows in millions of dollars:

 

 

 

Agriculture
and Turf

 

Construction
and Forestry

 

Total

 

Balance October 31, 2010:

 

 

 

 

 

 

 

Goodwill

 

$

705

 

 

$

610

 

 

$

1,315

 

 

Less accumulated impairment losses

 

316

 

 

 

 

 

316

 

 

Goodwill - net

 

389

 

 

610

 

 

999

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation adjustments

 

(1

)

 

2

 

 

1

 

 

Other

 

(4

)

 

1

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 31, 2011:

 

 

 

 

 

 

 

 

 

 

Goodwill

 

700

 

 

613

 

 

1,313

 

 

Less accumulated impairment losses

 

316

 

 

 

 

 

316

 

 

Goodwill - net

 

$

384

 

 

$

613

 

 

$

997

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance October 31, 2011:

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

701

 

 

$

615

 

 

$

1,316

 

 

Less accumulated impairment losses

 

316

 

 

 

 

 

316

 

 

Goodwill - net

 

385

 

 

615

 

 

1,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation adjustments

 

(6

)

 

(29

)

 

(35

)

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 31, 2012:

 

 

 

 

 

 

 

 

 

 

Goodwill

 

695

 

 

586

 

 

1,281

 

 

Less accumulated impairment losses

 

316

 

 

 

 

 

316

 

 

Goodwill - net

 

$

379

 

 

$

586

 

 

$

965

 

 

 

19



 

The components of other intangible assets were as follows in millions of dollars:

 

 

 

Useful Lives *

 

January 31

 

 

 

Years

 

2012

 

2011

 

Amortized intangible assets:

 

 

 

 

 

 

 

Customer lists and relationships

 

14

 

$

102

 

$

110

 

Technology, patents, trademarks and other

 

15

 

106

 

94

 

Total at cost

 

 

 

208

 

204

 

Less accumulated amortization **

 

 

 

93

 

75

 

Total

 

 

 

115

 

129

 

Unamortized intangible assets:

 

 

 

 

 

 

 

Licenses

 

 

 

4

 

4

 

Other intangible assets - net

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