
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.
$ millions |
2015 |
Operating or |
|
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 | |
Total | 28,862.8 | ||
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 | |
Total | 26,082.7 | ||
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 | |
Net income | 1,940.9 | ||
Less: Net income attributable to noncontrolling interests | 0.9 | ||
Net income attributable to Deere & Company | $1,940.0 | ||
Notes: | |||
• 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 | |||