UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2003

Commission file no: 1-6458

JOHN DEERE CAPITAL CORPORATION

Delaware
(State of incorporation)

36-2386361
(IRS employer identification no.)

1 East First Street, Suite 600
Reno, Nevada 89501
(Address of principal executive offices)

Telephone Number: (775) 786-5527

     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

x

No

     Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2).

Yes

No

x

     At April 30, 2003, 2,500 shares of common stock, without par value, of the registrant were outstanding, all of which were owned by John Deere Credit Company, a wholly-owned subsidiary of Deere & Company.

     The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with certain reduced disclosures as permitted by those instructions.

Page 1 of 22 Pages
Index to Exhibits: Page 20

PART I.  FINANCIAL INFORMATION

Item 1.     Financial Statements.

John Deere Capital Corporation and Subsidiaries

Statements of Consolidated Income and Retained Earnings

(Unaudited)

(in millions)

Three Months Ended
April 30,

Six Months Ended
April 30,

2003

2002

2003

2002

Revenues

Finance income earned on retail notes

$

102.4

$

101.0

$

200.2

$

203.7

Lease revenues

86.0

101.9

176.9

212.0

Revolving charge account income

34.4

32.4

66.2

61.7

Finance income earned on wholesale receivables

64.1

54.3

116.1

104.9

Operating loan income

8.5

6.4

15.7

12.8

Securitization and servicing fee income

11.1

13.7

25.4

23.3

Net gain on receivables and leases sold

7.9

41.8

14.3

71.6

Interest income from short-term investments

3.1

2.6

6.3

5.4

Other income

9.0

2.0

15.0

9.6

     Total revenues

326.5

356.1

636.1

705.0

Expenses

Interest expense

94.6

88.4

181.3

186.0

Operating expenses:

   Administrative and operating expenses

48.2

60.1

95.7

106.5

   Provision for credit losses

19.9

69.1

32.8

89.4

   Fees paid to John Deere

6.3

5.3

14.4

10.7

   Depreciation of equipment on operating leases

54.3

60.8

112.8

128.0

     Total operating expenses

128.7

195.3

255.7

334.6

     Total expenses

223.3

283.7

437.0

520.6

Income of consolidated group before income taxes

103.2

72.4

199.1

184.4

Provision for income taxes

35.7

28.7

69.4

67.9

Income of consolidated group

67.5

43.7

129.7

116.5

Equity in income (loss) of unconsolidated affiliates

(1.1

)

0.1

(2.0

)

Net income

67.5

42.6

129.8

114.5

Cash dividends declared

(50.0

)

(60.0

)

(50.0

)

(200.0

)

Retained earnings at beginning of period

1,106.2

1,095.2

1,043.9

1,163.3

Retained earnings at end of period

$

1,123.7

$

1,077.8

$

1,123.7

$

1,077.8

See Notes to Interim Financial Statements.

John Deere Capital Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in millions)

April 30, 2003

October 31,
2002

April 30,
2002

Assets

Cash and cash equivalents

$

389.0

$

147.8

$

462.6

Receivables

Retail notes

5,729.8

5,311.7

4,273.2

Revolving charge accounts

914.1

896.0

781.0

Operating loans

568.9

561.2

490.4

Wholesale receivables

3,854.6

2,942.2

3,187.5

Financing leases

438.9

467.5

461.2

Total receivables

11,506.3

10,178.6

9,193.3

Allowance for credit losses

(122.2

)

(118.3

)

(157.5

)

Total receivables - net

11,384.1

10,060.3

9,035.8

Notes receivable - unconsolidated affiliates

291.9

259.9

273.2

Other receivables

99.3

96.9

139.4

Equipment on operating leases - net

975.1

1,180.0

1,276.8

Investment in unconsolidated affiliates

2.6

7.1

10.5

Other assets

417.5

350.4

237.7

Total Assets

$

13,559.5

$

12,102.4

$

11,436.0

Liabilities and Stockholder's Equity

Short-term borrowings:

Commercial paper

$

2,577.6

$

1,422.0

$

1,262.2

Other notes payable

41.3

37.5

32.7

John Deere

135.7

654.0

523.2

Current maturities of long-term borrowings

1,617.5

2,158.6

2,489.1

Total short-term borrowings

4,372.1

4,272.1

4,307.2

Accounts payable and accrued liabilities

Accrued interest on debt

69.2

52.3

49.3

Other payables

412.9

446.3

299.3

Total accounts payable and accrued liabilities

482.1

498.6

348.6

Deposits withheld from dealers and merchants

141.4

138.4

130.8

Long-term borrowings:

Senior debt

6,510.2

5,231.3

4,651.2

Subordinated debt

150.0

150.0

150.0

    Total long-term borrowings

6,660.2

5,381.3

4,801.2

    Total liabilities

11,655.8

10,290.4

9,587.8

Stockholder's equity:

Common stock, without par value (issued and outstanding - 2,500 shares
owned by John Deere Credit Company)

812.8

812.8

812.8

Retained earnings

1,123.7

1,043.9

1,077.8

Cumulative translation adjustment

2.9

(2.2

)

(8.3

)

Unrealized loss on derivatives

(43.3

)

(44.1

)

(36.0

)

Unrealized gain on investments

7.6

1.6

1.9

    Total accumulated other comprehensive income (loss)

(32.8

)

(44.7

)

(42.4

)

    Total stockholder's equity

1,903.7

1,812.0

1,848.2

Total Liabilities and Stockholder's Equity

$

13,559.5

$

12,102.4

$

11,436.0

See Notes to Interim Financial Statements.

John Deere Capital Corporation and Subsidiaries

Statements of Consolidated Cash Flows

For the Six Months Ended April 30, 2003 and 2002

(Unaudited)

(in millions)

2003

2002

Cash Flows from Operating Activities:

   Net income

$

129.8

$

114.5

   Adjustments to reconcile net income to net cash

          provided by operating activities:

        Provision for credit losses

32.8

89.4

        Provision for depreciation and amortization

115.7

130.7

        Provision for deferred income taxes

(2.0

)

(11.2

)

        Undistributed earnings of unconsolidated affiliates

(0.1

)

2.0

        Other

(23.1

)

(101.9

)

          Net cash provided by operating activities

253.1

223.5

Cash Flows from Investing Activities:

   Cost of receivables acquired

(9,438.9

)

(7,504.4

)

   Collections of receivables

7,616.2

6,018.2

   Cost of operating leases acquired

(119.0

)

(173.7

)

   Proceeds from sales of equipment on operating leases

233.7

261.9<