Identifying Operating Income Components | Deere & Company income statement

Identifying Operating Income Components Following is the Deere & Company income statement for 2015. a. Identify the components in its income

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
Nonoperating

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

 

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