DEERE & CO | 2013 | FY | 3


9. OTHER INCOME AND OTHER OPERATING EXPENSES

 

The major components of other income and other operating expenses consisted of the following in millions of dollars:

 

 

 

 

 

 

 

 

 

 

2013

 

2012

 

2011

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

Revenues from services

 

$

256

 

$

233

 

$

217

Insurance premiums and fees earned

 

252

 

248

 

236

Investment income

 

15

 

14

 

11

Other

 

159

 

180

 

160

Total

 

$

682

 

$

675

 

$

624

 

 

 

 

 

 

 

Other operating expenses

 

 

 

 

 

 

Depreciation of equipment on operating leases

 

$

389

 

$

339

 

$

306

Insurance claims and expenses

 

204

 

245

 

193

Cost of services

 

143

 

122

 

115

Other

 

85

 

76

 

102

Total

 

$

821

 

$

782

 

$

716

 

 

 

 

 

 

 

 

The company issues insurance policies for crop insurance and extended equipment warranties. The crop insurance subsidiary utilizes reinsurance to limit its losses and reduce its exposure to claims. Although reinsurance contracts permit recovery of certain claims from reinsurers, the insurance subsidiary is not relieved of its primary obligation to the policyholders. The premiums ceded by the crop insurance subsidiary in 2013, 2012 and 2011 were $337 million, $251 million and $246 million, and claims recoveries on the ceded business were $294 million, $493 million and $271 million, respectively. The amounts from reinsurance are netted against the insurance premiums and fees earned and the insurance claims and expenses in the table above.


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