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.