John Deere Committed to Those Linked to the Land Investor Presentation Deere & Company October 2015
John DeereCommitted to ThoseLinked to the Land
Investor Presentation
Deere & CompanyOctober 2015
| Deere & Company | October 2015
Safe Harbor Statement & Disclosures
This presentation includes forward-looking comments subject to important risksand uncertainties. It may also contain financial measures that are not inconformance with accounting principles generally accepted in the United Statesof America (GAAP).
Refer to Deere’s reports filed on Forms 8-K (current), 10-Q (quarterly), and10-K (annual) for information on factors that could cause actual results to differmaterially from information in this presentation and for information reconcilingfinancial measures to GAAP. Past performance may not be representative offuture results.
Guidance noted in the following slides was effective as of the company’s mostrecent earnings release and conference call (21 August 2015). Nothing in thispresentation should be construed as reaffirming or disaffirming such guidance.
This presentation is not an offer to sell or a solicitation of offers to buy any ofDeere’s securities.
2
|
Table of Contents
SlideJohn Deere Strategy 4
Use-of-Cash 14
Global Markets 19
John Deere Financial Services 30
John Deere Power Systems 35
Market Fundamentals 39
Appendix 46
Deere & Company | October 20153
John DeereStrategy
|5 Deere & Company | October 2015
* SVA: Shareholder Value Added
*
*
The John Deere Strategy
|
The John Deere StrategyAdapting to Win
Developing global talent
Integrated solutions
Industry leading innovation
Distinctive quality
Markets worth winning
Deere & Company | October 20156
| Deere & Company | October 2015
* OROA: Operating Return on Operating Assets** SVA: Shareholder Value Added*** Excludes fiscal 2009 expenses related to goodwill impairment and voluntary employee-separation. For reconciliations to GAAP see “2009 OROA*Reconciliation to GAAP” and “SVA* Reconciliation to GAAP” slides in Appendix.
The John Deere StrategyFoundational Success Factors
Exceptional Operating Performance - Equipment Operations27.7% OROA* in 2014
12%
20%
28%
2001
2002
2003
200420052006
20072008
2009
2009, adjusted***
20102011 2012
2013
2014
-5%
0%
5%
10%
15%
20%
25%
30%
35%
% of Normal Volume
80%Low
100%Normal
120%High
12% OROA (SVA** Neutral)
7
| Deere & Company | October 2015
Exceptional Operating Performance - Equipment OperationsHigher Net Cash Flow, More Consistently
The John Deere StrategyFoundational Success Factors
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$M
illio
ns
Sale of Trade Receivables toJohn Deere Financial
Adoption of SVA* Model
Over $8 billion in Pension/OPEB contributions, 2001-2014
8
* SVA: Shareholder Value Added
|
-1,600
-1,200
-800
-400
0
400
800
1,200
1,600
2,000
2,400
2,800
3,200
3,600
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Deere & Company | October 2015
SVA
($m
illio
ns)
* SVA: Shareholder Value AddedNote: For reconciliation of SVA to GAAP, please see “SVA* Reconciliation to GAAP” slide in Appendix
Disciplined SVA* Growth - Equipment OperationsSVA Journey, 1993 - 2014
9
The John Deere StrategyFoundational Success Factors
Adoption of SVA Model
| Deere & Company | October 2015
Asset ManagementDramatic Reduction in Asset Intensity
20%
25%
30%
35%
40%
45%
50%
55%
60%
2001 2003 2005 2007 2009 2011 2013 2015*
Prior Year
Current Year
Trade Receivables and Net Sales
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Trade Receivables Net Sales
$M
illio
ns1998 2014
• Avoided ~ $8.8 billion in working capital in 2014 vs. 1998• Receivable level in 2014 consistent with 1998, with almost 3x the sales
Quarterly Receivables & Inventory as a % of Previous 12 Months Sales
10
*Through 3rd quarter 2015
| Deere & Company | October 2015
Productivity Improvement~ 6% CAGR over 30 Years
• Deere’s net sales and revenues per employee have increased at a CAGRof ~ 6% over last 30 years
Net Sales and Revenues per Employee
$0
$100
$200
$300
$400
$500
$600
$700
1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
$Th
ousa
nds
11
| Deere & Company | October 2015
Investment in New Products and Technologies
R&D as Percent of Net Sales
Source: Deere & Company and competitor SEC filings
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Deere R&D $ Deere % Competitor A % Competitor B %
12
|
Net Sales by Product CategoryEquipment Operations - Fiscal Year 2014
Deere & Company | October 2015
Agriculture & Turf – $26.4B Construction & Forestry – $6.6B
Construction
Forestry
CommercialWorksiteProducts
Other
Large Ag
Small Ag
Turf
Other
13
Use-of-Cash
| Deere & Company | October 2015
Deere Use-of-Cash Priorities
Manage the balance sheet, including liquidity, to support a ratingthat provides access to low-cost and readily available short- andlong-term funding mechanisms
Reflects the strategic nature of our financial services operation
Committed to “A” Rating
Cash from Operations
Fund Operating and Growth Needs
Common Stock Dividend
Share Repurchase
Fund value-creating investments in our businesses
Consistently and moderately raise dividend targeting a 25%-35% payout ratio of mid-cycle earnings
Consider share repurchase as a means to deploy excess cashto shareholders, once above requirements are met andrepurchase is viewed as value-enhancing
15
| Deere & Company | October 2015
Deere Quarterly Dividends Declared*Q1 2003 – Q4 2015
* Adjusted for 2 for 1 stock split on 26 November 2007** See slide 5 for John Deere Strategy
16
$0.11$0.14
$0.16$0.20
$0.22$0.25
$0.28 $0.30
$0.35
$0.41
$0.46
$0.51
$0.60
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dividend raised 114%since launch of therevised John DeereStrategy in 2010**
| Deere & Company | October 201517
Share RepurchaseAs Part of Publicly Announced Plans
Cumulative cost of repurchases 2004-3Q2015: ~ $15.3 billionAmount remaining on December 2013 authorization of $8 billion: ~ $4.4 billion31 July 2015 period ended basic shares: ~ 328.2 million3Q2015 average diluted shares: ~ 334.1 millionShares repurchased 2004-3Q2015: ~ 230.8 millionAverage repurchase price 2004-3Q2015: $66.15
ActualShares
Repurchased*(in millions)
Total Amount**(in billions)
2004 5.9 $0.2
2005 27.7 $0.9
2006 34.0 $1.3
2007 25.7 $1.5
2008 21.2 $1.7
2009 0.0 $0.0
2010 5.2 $0.4
2011 20.8 $1.7
2012 20.2 $1.6
2013 18.2 $1.5
2014 31.5 $2.7
2015 YTD 20.4 $1.8
* All shares adjusted for two-for-one stock split effective 26 November 2007** Rounded totals for each period – sum may not tie to cumulative cost of repurchases 2004-3Q2015
| Deere & Company | October 201518
Sources and Uses of Cash Fiscal 2004–2014Equipment Operations
Source: Deere & Company SEC filings
= Source of Cash
= Use of Cash
(1) Other includes proceeds from maturities and sales of marketable securities and purchases of marketable securities and reconciliation for non-cashitems including excess tax benefits from share-based compensation and the effect of exchange rates on cash and cash equivalents
$4,287
$28,527
$953
$8,731
$1,269
$3,172
$5,506
$11,659
$861
$0
$3,000
$6,000
$9,000
$12,000
$15,000
$18,000
$21,000
$24,000
$27,000
$30,000
$33,000
BeginningCash & CashEquivalents(10/31/03)
Cash FromOperations
Divestitures,net of
Acquisitions
CapitalExpenditures
Investment inFinancialServices
Net Change inDebt and
IntercompanyBalances
Dividends ShareRepurchase,
net ofCommon
StockIssuances
Other Ending Cash &Cash
Equivalents(10/31/14)
(1)
$M
illio
ns
~60% of cash from operationsreturned to shareholders $2,569
Global Markets
| Deere & Company | October 2015
Net Sales by Major MarketsEquipment Operations
20
$13.8$15.1
$13.0$14.8
$17.4
$20.8$21.8
$20.2
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
U.S. & Canada6% CAGR
$3.9$4.6
$3.4 $3.4$4.4 $4.3 $4.4 $4.4
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
Western Europe2% CAGR
$1.0
$1.9
$0.7 $0.7$1.4 $1.7 $1.6 $1.4
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
Central Europe & CIS5% CAGR
$1.6$2.6
$1.8$2.6
$3.6 $3.6$4.3 $4.1
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
Latin America14% CAGR
$0.8 $1.1 $1.2 $1.4$1.9 $2.1 $2.1 $2.0
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
Asia, Africa & Middle East14% CAGR
$0.4 $0.6 $0.6 $0.6 $0.8 $1.0 $0.8 $0.8
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
Asia Pacific, Australia & NewZealand
10% CAGR
$ Billions
|
U.S. and CanadaFactory Locations
Deere & Company | October 201521
Iowa, USA• Cotton Harvesting Equipment• Planting Equipment• Spraying Equipment• Tillage Equipment• Ag Tractors• Components• Foundry• Engines• Hay & Forage Equipment• Articulated Dump Trucks• 4WD Loaders• Motor Graders• Skidders• Wheeled Feller Bunchers• Backhoes• Compact Tracked Loaders• Crawler Dozers• High-Speed Dozers• Knuckleboom Loaders• Skid Steer Loaders• Tracked Feller Bunchers• Tracked Harvesters
Illinois, USA• Combine Harvesters• Headers• Planting Equipment• Hydraulic Cylinders
North Dakota, USA• Air Seeding Equipment• Electronics• Tillage Equipment
North Carolina, USA• Commercial Mowers• Golf & Turf Mowers• Utility Vehicles• Hydraulic Excavators
Alberta, Canada• Remanufactured ComponentsBritish Columbia, Canada
• Log Loaders & Specialty Products
California, USA• Satellite Receivers
Kansas, USA• Power Transmission Equipment
Missouri, USA• Remanufactured Components
Louisiana, USA• Sugarcane Harvesting Equipment• Tractor Loaders• Scrapers• Cotton Strippers
Georgia, USA• Utility Tractors• Compact Utility Tractors
Tennessee, USA• Lawn Tractors
Wisconsin, USA• Lawn & Garden Equipment• Utility Vehicles• Golf & Turf Reel Mowers
| Deere & Company | October 2015
EU 28Factory Locations
Joensuu, Finland• Wheel Forwarders• Wheel Harvesters• Forestry Attachments
Bruchsal, Germany• Tractor, Harvesting & Forestry Cabs
Mannheim, Germany• Tractors
Zweibrücken, Germany• Combines & Forage Harvesters
Arc-les-Gray, France• Balers• Ag Loaders
Saran, France• Engines
Madrid, Spain• Components
Horst, The Netherlands• Spraying Equipment
Stadtlohn, Germany• Headers
Gummersbach, Germany• Walk-Behind Mowers
22
|
BrazilFactory Locations
Deere & Company | October 2015
Catalão, Brazil• Sugarcane Harvesters• Sprayers
Montenegro, Brazil• Tractors
Horizontina, Brazil• Combine Harvesters• Planters
Indaiatuba, Brazil• Backhoe Loaders• 4WD Loaders
Indaiatuba, Brazil (JV)• Excavators
23
|
CISFactory Locations
Deere & Company | October 201524
Orenburg, Russia• Seeding Equipment• Tillage Equipment
Domodedovo, Russia• Tractors• Combine Harvesters• Motor Graders
|
ChinaFactory Locations
Deere & Company | October 2015
Ningbo, China• Tractors (28-70 hp)
Tianjin (TEDA), China• Tractors (75-135 hp)
Jiamusi, China• Large Combine Harvesters• Corn Pickers• Cotton Pickers
Harbin, China• Combine Harvesters• Tractors (150+ hp)• Sprayers
Tianjin (TEDA), China• 4WD Loaders• Excavators
Tianjin (TEDA), China• Engines (50-220 hp)
25
|
IndiaFactory Locations
Deere & Company | October 2015
Gummidipoondi, India (JV)• Side-Shift Backhoes
Pune, India• Engines• Transmissions• Tractors (36-75 hp)• Electronics
Sirhind, India• Combine Harvesters
Dewas, India• Tractors (36-50 hp)
26
|
Other RegionsFactory Locations
Deere & Company | October 201527
Kibbutz Beit Hashita, Israel• Cotton Picker Components
Rosario, Argentina• Engines• Tractors• Combines
Monterrey, Mexico• Rotary Cutters• Implements• Components
Ramos, Mexico• Ag Loaders• Compact Utility Tractor Loaders• Utility Tractor Cabs• Hydraulic Cylinders
Saltillo, Mexico• Ag Tractors• Transaxles
Torreon, Mexico• Axles• Engines• Electronics Tokoroa, New Zealand
• Forestry Harvester Heads
|
Worldwide Parts ServicesSupporting the Global Growth of Our Equipment Operations
Deere & Company | October 201528
Highlights:Campinas, Brazil
Expansion of existing facility… operational March 2015Nagpur, India
India Parts Distribution Center opened Nov 2014Johannesburg, South Africa
New, larger Regional Distribution Center opened 4Q 2012Rosario, Argentina
New, larger Regional Distribution Center opened 4Q 2012Stockholm, Sweden
New, larger Regional Distribution Center serving C&F and A&T opened May 2012Bruchsal, Germany
E-PDC deconsolidation & packaging facility opened Nov 2011
Anchor Parts Distribution Centers
Regional Parts Distribution Centersor DepotsDistribution Centers underconstruction
|
John Deere Precision Ag
Machine OptimizationEnsure that machines function as expectedMaximize machine performanceIncrease operator consistency
Job OptimizationAchieve quality outcomes for each jobCoordinate machines to execute jobs moreeffectively and efficientlyMonitor job progress and adjust operationalplans
Agronomic Decision SupportProvide a single, secure place to visualize,analyze and collaborate with trusted advisorsusing an open data management platformAutomate the collection and transfer of datafrom the machine to the platformMake decisions and take action with greaterease and confidence
CROP PRODUCTIONSYSTEM
Deere & Company | October 201529
John DeereFinancial Services
|
John Deere Financial ServicesSupporting the Global Growth of Our Equipment Operations
Deere & Company | October 201531
Owned Operations
Bank/Finance Company Partners
Retail programs through JDF not currently offered
| Deere & Company | October 2015
Portfolio Composition byMarket
John Deere Financial Services$40.0 Billion Owned Portfolio at 31 October 2014
Portfolio Composition byGeography
Portfolio Composition byProduct
Information above includes all Deere lending activities worldwide. John Deere Capital Corporation is the largest lending operation of Deere & Company.
Ag & Turf87%
C&F13%
U.S.73%
Canada11%
Europe6%
Latin America7%
Australia3%
32
InstallmentFinancing
57%
Wholesale /Floorplan
22%
Leasing14%
RevolvingCredit7%
| Deere & Company | October 2015
John Deere Capital CorporationProfitability and Growth
33
383
544
291 311282
149
319364
2006 2007 2008 2009 2010 2011 2012 2013 2014
Net Income ($ Millions)
0.22% 0.29% 0.33%
0.70%
0.48%
0.12%0.05% 0.03% 0.09%
2006 2007 2008 2009 2010 2011 2012 2013 2014
Write-offs/Average Owned Portfolio
18.6 19.0 19.1 19.321.1
23.3
26.6
30.733.1
2006 2007 2008 2009 2010 2011 2012 2013 2014
Administered Portfolio Growth ($ Billions)
469
| Deere & Company | October 2015
John Deere Capital Corporation Retail Notes60+ Days Past Due vs. Write-offs
Agriculture & Turf1
• Continued extremely low write-offs• Average write-offs less than 5 bps over last
10 years
Construction & Forestry• Extremely low write-offs in
2014
(1) 1983 – 1985 includes Construction; 1986 - 1994 includes Lawn & Grounds Care; beginning in 2009 includes both Ag and Turf equipment; As %of Owned Losses After Dealer Reserve Charges
Source: 1983 – 1994 internal reporting, 1995 - 2011 JDCC 10-K filings, 2012-2014 internal reporting
34
-0.05%
0.45%
0.95%
1.45%
1.95%
2.45%
2.95%
3.45%
3.95%
'83 '86 '89 '92 '95 '98 '01 '04 '07 '10 13Net Write-offs (Ag) Installments 60+DPD (Ag)
-0.05%
0.45%
0.95%
1.45%
1.95%
2.45%
2.95%
3.45%
3.95%
'95 '98 '01 '04 '07 '10 13Net Write-offs (C&F) Installments 60+DPD (C&F)
John DeerePower Systems
| Deere & Company | October 2015
Interim Tier 4 (IT4):• 50% Nitrogen Oxide (NOx) reduction• 90% Particulate Matter (PM) reduction
Final Tier 4 (FT4):• 80% NOx reduction
Tier 4 Engine Implementation
Final Tier 4
0
0.10
0.20
0.30
0.40
0.50
0 2.00 4.00 6.00 8.00 10.00 12.00
Tier 1
Tier2
Tier 3
InterimTier 4
NOx, g/kw-hr
PM
,g/
kw-h
r
36
|
Engine EmissionsFinal Tier 4 (FT4)/Stage IV
Deere & Company | October 201537
• Over 12.5 million hours in the field*
• FT4/Stage IV technologies deliver excellentperformance and low operating costs
• More applications transitioning to FT4/StageIV than IT4/Stage IIIB emission programs
• Maintain earlier tier solutions for globalmarkets
Interim Tier 4 (IT4)/Stage IIIA created foundation for FT4/Stage IVdelivery
• * As of October 2015
|
Engine Emissions2015 Worldwide Off-Road Emissions Regulations > 75hp
Deere & Company | October 201538
Stage II/Tier 2Stage IIIA/Tier 3/TREM 3A (> 50hp)
Stage IV/Final Tier 4 (> 75-750hp)
• *Includes some non-EU28 countries that follow EU28 emissions regulations
U.S. and CanadaFinal Tier 4
EU28*Stage IV
RussiaTransition to Stage IIIB:
Ag tractors - 2017
ChinaStage IIIA
BrazilStage IIIA:• Construction equipment - January 2015• Ag equipment - January 2017
IndiaTREM 3A
Market Fundamentals
| Deere & Company | October 2015
U.S. Farm Cash Receipts
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F2015F2016F
$Bill
ions
Crops Livestock Government Payments
Source: 1999 – 2013: USDA 10 February 20152014F – 2016F: Deere & Company Forecast as of 21 August 2015
40
| Deere & Company | October 2015
U.S. Farm Balance Sheet Strong
10%
12%
14%
16%
18%
20%
22%
24%
26%
28%
30%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,50019
7219
7319
7419
7519
7619
7719
7819
7919
8019
8119
8219
8319
8419
8519
8619
8719
8819
8919
9019
9119
9219
9319
9419
9519
9619
9719
9819
9920
0020
0120
0220
0320
0420
0520
0620
0720
0820
0920
1020
1120
1220
1320
14F
2015
F
$Bill
ions
Farm Debt Farm Equity Debt to Equity Ratio (%) Debt to Asset Ratio (%)
Source: 1972 – 2013: USDA 10 February 20152014F – 2015F: Deere & Company Forecast as of 21 August 2015
41
| Deere & Company | October 201542
World Farm FundamentalsGlobal Stocks-to-Use Ratios
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
1994 1997 2000 2003 2006 2009 2012 2015P
Source: USDA – 9 October 2015
Cotton
Wheat
Corn
Soybeans
| Deere & Company | October 2015
World Farm FundamentalsGlobal Corn Supply and Demand
Source: USDA – 9 October 2015
43
0
200
400
600
800
1,000
91/9
2
92/9
3
93/9
4
94/9
5
95/9
6
96/9
7
97/9
8
98/9
9
99/0
0
00/0
1
01/0
2
02/0
3
03/0
4
04/0
5
05/0
6
06/0
7
07/0
8
08/0
9
09/1
0
10/1
1
11/1
2
12/1
3
13/1
4
14/1
5
15/1
6
Mill
ion
Met
ric
Tons
Production Total Consumption
| Deere & Company | October 2015
U.S. Housing Starts
44
Source: 1962 – 2014: U.S. Census Bureau July 20152015F: Deere & Company Forecast as of 21 August 2015
0.000
0.250
0.500
0.750
1.000
1.250
1.500
1.750
2.000
2.250
2.500
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015F
Housing Starts (Millions of Units)
Multi-Family Housing Starts
Single-Family Housing Starts
| Deere & Company | October 2015
U.S. Construction Spending
45
-160%-150%-140%-130%-120%-110%-100%-90%-80%-70%-60%-50%-40%-30%-20%-10%0%10%20%30%40%50%60%70%
0100200300400500600700800900
1,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,0002,1002,2002,300
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F
%TotalC
onstructionSpend
Bill
ions
,200
9Cha
ined
$’s
U.S. Construction Spending (Billions, 2009 Chained $’s)
Residential Investment in StructuresNonresidential Investment in StructuresGovernment Investment in StructuresGovernment Infrastructure Investment
Source: 1997 – 2014: U.S. Bureau of Economic Analysis July 20152015F: Deere & Company Forecast as of 21 August 2015
Appendix
| Deere & Company | October 2015
2009 OROA* Reconciliation to GAAPEquipment Operations
Equipment Operations2009, asReported
Exclude GoodwillImpairment &
Voluntary Employee-Separation
2009, asAdjusted
Net Sales 20,756 20,756Average Identifiable Assets
With Inventories at LIFO 9,647 9,647With Inventories at Standard Cost 10,950 10,950
Operating Profit 1,365 380 1,745Percent of Net Sales 6.6% 8.4%
Operating Return on AssetsWith Inventories at LIFO 14.1% 18.1%With Inventories at Standard Cost 12.5% 15.9%
(millions of dollars unless stated otherwise)
47
* OROA: Operating Return on Operating Assets
| Deere & Company | October 2015
SVA* Reconciliation to GAAPEquipment Operations
Equipment Operations 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Net Sales 6,479 7,663 8,830 9,640 11,082 11,926 9,701 11,169 11,077 11,703 13,349Average Identifiable Assets
With Inventories at LIFO 5,449 5,551 6,187 6,502 6,682 7,672 7,724 8,069 8,743 6,229 5,965With Inventories at Standard Cost 6,442 6,494 7,131 7,488 7,703 8,711 8,739 9,039 9,678 7,147 6,925
Operating Profit 242 847 1,006 1,125 1,402 1,476 272 693 (46) 401 708Percent of Net Sales 3.7% 11.1% 11.4% 11.7% 12.6% 12.4% 2.8% 6.2% -0.4% 3.4% 5.3%
Operating Return on AssetsWith Inventories at LIFO 4.4% 15.3% 16.3% 17.3% 21.0% 19.3% 3.5% 8.6% -0.5% 6.4% 11.9%With Inventories at Standard Cost 3.8% 13.0% 14.1% 15.0% 18.2% 16.9% 3.1% 7.7% -0.5% 5.6% 10.2%
SVA Cost of Assets (773) (780) (856) (898) (924) (1,045) (1,049) (1,085) (1,162) (858) (831)SVA (531) 67 150 227 477 431 (776) (392) (1,208) (457) (123)
Equipment Operations 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Net Sales 17,673 19,401 19,884 21,489 25,803 20,756 23,573 29,466 33,501 34,998 32,961Average Identifiable Assets
With Inventories at LIFO 6,482 7,248 7,546 8,092 9,652 9,647 9,196 11,516 13,594 14,569 14,113With Inventories at Standard Cost 7,477 8,312 8,634 9,205 10,812 10,950 10,494 12,875 14,965 15,924 15,493
Operating Profit 1,905 1,842 1,905 2,318 2,927 1,365 2,909 3,839 4,397 5,058 4,297Percent of Net Sales 10.8% 9.5% 9.6% 10.8% 11.3% 6.6% 12.3% 13.0% 13.1% 14.5% 13.0%
Operating Return on AssetsWith Inventories at LIFO 29.4% 25.4% 25.2% 28.6% 30.3% 14.1% 31.6% 33.3% 32.3% 34.7% 30.4%With Inventories at Standard Cost 25.5% 22.2% 22.1% 25.2% 27.1% 12.5% 27.7% 29.8% 29.4% 31.8% 27.7%
SVA Cost of Assets (897) (998) (1,036) (1,094) (1,284) (1,301) (1,259) (1,545) (1,795) (1,911) (1,860)SVA 1,008 844 869 1,224 1,643 64 1,650 2,294 2,602 3,147 2,437
(millions of dollars unless stated otherwise)
48
* SVA: Shareholder Value Added
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