Operating Activities John Deere (DE)

Operating Income

-Net Sales are the primary source of operating income and would be considered a quality earning.

-Sales numbers have dropped from almost $33 billion to almost $23 billion.

-Financing Income from Deere Financial on sold products is a key contributor also showing improvement from $2,282.1 million to $2,511.2 million.

-Both income sources would be considered to be permanent.

Comprehensive Income

-In 2014 John Deere sold their Crop Insurance Division of Deere Financial and experienced a gain on the sale recorded in 2015

-There was a total gain on sale of $82 million which would be considered a quality earning.

-This gain would be considered to be a transitory source of income considering that it would be a one time only gain.

-Deere will also experience growth in comprehensive income in the future due to the purchase of Hagie Manufacturing in 2016 for $53 million.

-Deere showed Comprehensive losses for the past three years due to adjustments for retirement benefits around $800 million every year.

Forecast for the Future

-John Deere is a very well established company that is not going to be a rapid grower or loser but usually remains pretty steady.


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