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 |
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| 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 | |||