Identifying Operating Income Components
Following is the Deere & Company income statement for 2015.
a. Identify the components in its income statement that you would consider operating.
Using the drop-down box next to each account, indicate whether it is operating or nonoperating.
made for strategic purposes.
Net sales and revenue
|Net sales||$25,775.2||Operating Nonoperating|
|Finance and interest income||2,381.1||Operating Nonoperating|
|Other income||706.5||Operating Nonoperating|
|Costs and expenses|
|Cost of sales||20,143.2||Operating Nonoperating|
|Research and development expenses||1,425.1||Operating Nonoperating|
|Selling, administrative and general expenses||2,873.3||Operating Nonoperating|
|Interest expense||680.0||Operating Nonoperating|
|Other operating expenses||961.1||Operating Nonoperating|
|Income of consolidated group before income taxes||2,780.1|
|Provision for income taxes||840.1||Operating Nonoperating|
|Income of consolidated group||1,940.0|
|Equity in income of unconsolidated affiliates||0.9||Operating Nonoperating|
|Less: Net income attributable to noncontrolling interests||0.9|
|Net income attributable to Deere & Company||$1,940.0|
|• The income statement includes John Deere commercial and consumer tractor segment, a finance subsidiary that provides loan|
|and lease financing relating to the sales of those tractors, and a health care segment that provides managed|
|health care services for the company and certain outside customers.|
|• Equity in income of unconsolidated affiliates refers to income John Deere has earned on investments|