10-K/APeriod: FY2015

DEERE & CO Annual Report (Amendment), Year Ended Oct 31, 2015

Filed February 1, 2016For Securities:DE

Summary

Deere & Company's Form 10-K/A for the fiscal year ended October 31, 2015, primarily serves to amend and restate the Report of Independent Registered Public Accounting Firm due to typographical errors. This amendment does not alter the core financial disclosures of the original 10-K filing. Financially, the company experienced a notable decrease in net sales and revenues, dropping from $36.1 billion in fiscal year 2014 to $28.9 billion in fiscal year 2015. This decline is reflected in net income attributable to Deere & Company, which fell from $3.16 billion in 2014 to $1.94 billion in 2015. Consequently, diluted earnings per share decreased from $8.63 to $5.77. The balance sheet shows total assets decreasing from $61.3 billion to $57.9 billion, primarily driven by a reduction in financing receivables and inventories, while total liabilities also decreased. The company maintained a strong cash position and managed its debt effectively, with significant liquidity available through its credit facilities.

Financial Highlights

38 data points
Beta

Revenue

$28.86B

30.2% Gross Margin

Net Income

$1.94B

6.7% Net Margin

EPS (Diluted)

$5.77

Total Assets

$57.88B

Cash & Equivalents

$4.16B

Free Cash Flow

$3.05B

Financial Statements
Beta
Revenue$28.86B
Cost of Revenue$20.14B
Gross Profit$8.72B
R&D Expenses$1.43B
SG&A Expenses$2.87B
Operating Expenses$26.08B
Operating Income$3.14B
Interest Expense$680.00M
Net Income$1.94B
EPS (Basic)$5.81
EPS (Diluted)$5.77
Shares Outstanding (Basic)333.60M
Shares Outstanding (Diluted)336.00M

Key Highlights

  • 1Net sales and revenues decreased by approximately 20% year-over-year, from $36.1 billion in FY2014 to $28.9 billion in FY2015, indicating a challenging market environment.
  • 2Net income attributable to Deere & Company declined significantly from $3.16 billion in FY2014 to $1.94 billion in FY2015, reflecting the impact of lower sales.
  • 3Diluted earnings per share decreased from $8.63 in FY2014 to $5.77 in FY2015.
  • 4Total assets decreased from $61.3 billion to $57.9 billion, with notable reductions in financing receivables and inventories.
  • 5The company reported strong operating cash flows of $3.74 billion in FY2015, demonstrating effective cash generation despite lower revenues.
  • 6Deere & Company maintained substantial liquidity, with $4.16 billion in cash and cash equivalents and significant unused lines of credit.
  • 7The financial services segment continued to be a significant contributor to revenue and operating profit, though with slight variations from the prior year.

Frequently Asked Questions

This filing is an amendment (10-K/A) to the original Form 10-K for the fiscal year ended October 31, 2015. The sole purpose is to amend and restate the Report of Independent Registered Public Accounting Firm due to typographical errors in references to the three-year period covered by the audit. It does not change any other financial information or disclosures from the original filing.

Deere & Company experienced a significant decline in performance. Net sales and revenues decreased by approximately 20% to $28.9 billion in FY2015 from $36.1 billion in FY2014. Consequently, net income attributable to Deere & Company fell from $3.16 billion to $1.94 billion, and diluted earnings per share dropped from $8.63 to $5.77.

Total assets decreased from $61.3 billion at the end of FY2014 to $57.9 billion at the end of FY2015. This decrease was largely due to lower financing receivables and inventories. Total liabilities also decreased. The company maintained a healthy cash and cash equivalents balance of $4.16 billion.

Deere & Company managed its debt effectively, with long-term borrowings decreasing slightly. The company had $4.16 billion in cash and cash equivalents and access to significant credit facilities, with $4.03 billion of worldwide lines of credit unused as of October 31, 2015, indicating strong liquidity.