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 July 31, 2002

Commission file no: 1-4121

    DEERE  &  COMPANY

Delaware
(State of incorporation)

36-2382580
(IRS employer identification no.)

One John Deere Place
Moline, Illinois 61265
(Address of principal executive offices)

Telephone Number:  (309) 765-8000

     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

     At July 31, 2002, 238,607,391 shares of common stock, $1 par value, of the registrant were
outstanding.

Page 1 of 27
Index to Exhibits:  Page 25

DEERE & COMPANY
STATEMENT OF CONSOLIDATED INCOME
Three Months Ended July 31

CONSOLIDATED

SUPPLEMENTAL CONSOLIDATING DATA

EQUIPMENT OPERATIONS*

FINANCIAL SERVICES

Millions of dollars except per share amounts

Three Months Ended Jul 31

Three Months Ended Jul 31

Three Months Ended Jul 31

(Unaudited)

2002

2001

2002

2001

2002

2001

Net Sales and Revenues

Net sales

$

3409.6

$

3070.3

$

3409.6

$

3070.3

Finance and interest income

336.5

361.7

27.8

25.7

$

360.1

$

346.3

Health care premiums and fees

174.9

148.1

179.5

152.7

Other income

48.0

37.7

34.1

26.8

25.1

19.8

     Total

3969.0

3617.8

3471.5

3122.8

564.7

518.8

Costs and Expenses

Cost of sales

2746.9

2540.9

2750.6

2544.8

Research and development expenses

125.2

141.8

125.2

141.8

Selling, administrative and general expenses

406.3

398.5

282.9

292.2

124.6

107.0

Interest expense

158.3

187.5

58.1

65.2

109.6

132.5

Interest compensation to Financial Services

42.1

Health care claims and costs

142.5

120.0

142.5

120.0

Other operating expenses

101.0

92.4

21.1

13.3

90.6

88.1

     Total

3680.2

3481.1

3280.0

3057.3

467.3

447.6

Income of Consolidated Group

  Before Income Taxes

288.8

136.7

191.5

65.5

97.4

71.2

Provision for income taxes

134.8

60.4

100.2

34.9

34.7

25.5

Income of Consolidated Group

154.0

76.3

91.3

30.6

62.7

45.7

Equity in Income (Loss) of Unconsolidated

  Subsidiaries and Affiliates

  Credit

(.9

)

(1.0

)

56.9

40.8

(.9

)

(1.0

)

  Other

(5.5

)

(3.5

)

(.6

)

.4

     Total

(6.4

)

(4.5

)

56.3

41.2

(.9

)

(1.0

)

Net income

$

147.6

$

71.8

$

147.6

$

71.8

$

61.8

$

44.7

Per Share:

  Net income - basic

$

.62

$

.30

  Net income - diluted

$

.61

$

.30

See Notes to Interim Financial Statements. The supplemental consolidating data is presented for informational purposes. Transactions between the "Equipment Operations" and "Financial Services" have been eliminated to arrive at the "Consolidated" data.

DEERE & COMPANY
STATEMENT OF CONSOLIDATED INCOME
Nine Months Ended July 31

CONSOLIDATED

SUPPLEMENTAL CONSOLIDATING DATA

EQUIPMENT OPERATONS*

FINANCIAL SERVICES

Millions of dollars except per share amounts

Nine Months Ended Jul 31

Nine Months Ended Jul 31

Nine Months Ended Jul 31

(Unaudited)

2002

2001

2002

2001

2002

2001

Net Sales and Revenues

Net sales

$

8756.1

$

8475.1

$

8756.1

$

8475.1

Finance and interest income

1004.3

1080.5

60.0

78.6

$

1079.8

$

1028.4

Health care premiums and fees

506.4

426.5

519.9

440.3

Other income

210.8

149.7

106.0

98.2

137.8

77.2

     Total

10477.6

10131.8

8922.1

8651.9

1737.5

1545.9

Costs and Expenses

Cost of sales

7175.1

6889.7

7186.0

6901.4

Research and development expenses

384.5

429.6

384.5

429.6

Selling, administrative and general expenses

1222.3

1157.2

834.3

860.4

393.2

298.9

Interest expense

476.9

588.6

166.1

198.4

330.3

416.7

Interest compensation to Financial Services

115.9

Health care claims and costs

417.5

348.3

417.5

348.3

Other operating expenses

325.8

274.6

69.2

45.2

287.2

255.1

     Total

10002.1

9688.0

8756.0

8435.0

1428.2

1319.0

Income of Consolidated Group

  Before Income Taxes

475.5

443.8

166.1

216.9

309.3

226.9

Provision for income taxes

203.5

174.7

90.5

93.2

112.9

81.5

Income of Consolidated Group

272.0

269.1

75.6

123.7

196.4

145.4

Equity in Income (Loss) of Unconsolidated

  Subsidiaries and Affiliates

  Credit

(3.0

)

(2.0

)

180.2

133.1

(3.0

)

(2.0

)

  Other

(17.8

)

(11.0

)

(4.6

)

(.7

)

     Total

(20.8

)

(13.0

)

175.6

132.4

(3.0

)

(2.0

)

Net income

$

251.2

$

256.1

$

251.2

$

256.1