EX-12 4 exhibit_12.htm DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATION OF EARNINGS TO FIXED CHARGES EXHIBIT 12

EXHIBIT 12

DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

Three Months Ended
January 31,

 

Year Ended October 31,

 

2003

 

2002

 

2002

 

 

2001

 

2000

 

1999

 

1998

 

(In thousand of dollars)

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) of consolidated group before    income taxes

$

105,475

 

$

(53,469

)

$

602,705

 

$

(24,757

)

$

777,507

 

$

365,135

 

$

1,560,032

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends received from less-than-fifty
   percent owned affiliates

155

 

644

 

2,236

 

1,675

 

3,065

 

5,734

 

5,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges excluding capitalized interest

157,494

167,397

659,263

787,737

693,626

571,949

531,817

Total earnings

$

263,124

$

114,572

$

1,264,204

$

764,655

$

1,474,198

$

942,818

$

2,097,404

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense of consolidated group
   including capitalized interest

$

151,951

 

$

161,988

 

$

637,571

 

$

766,254

 

$

677,424

 

$

557,740

 

$

521,418

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portion of rental charges deemed to be interest

5,536

 

5,508

 

22,145

 

22,030

 

17,122

 

15,347

 

12,451

Total fixed charges

$

157,487

$

167,496

$

659,716

$

788,284

$

694,546

$

573,087

$

533,869

Ratio of earnings to fixed charges*

1.67

 

**

 

1.92

 

**

 

2.12

 

1.65

 

3.93

 

 

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.

Page 31