SlideShare a Scribd company logo

How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx

•Download as DOCX, PDF•
•
W
wellesleyterresa

How to testify Effectively Chapter 15 By: Tiffany Houston May 7, 2016 Objectives Name the different methods used to notify a law enforcement professional to appear in court Describe the appropriate clothing for law enforcement professionals to wear in court Identify those people to whom the law enforcement professional should not speak to during recesses Explain what a law enforcement professional should do while testifying with respect to objections State what a law enforcement professional should do when he or she does not remember the answer to a question asked Explain what a law enforcement professional should do when asked an argumentative question on cross-examination that the defense attorney insists should be answered yes or no. The law enforcement professional Role Law Enforcement plays a important role in the prosecution process: Interview witnesses, preserve the crime scene, collect physical evidence, Due to the level of interaction Law Enforcement plays, they also will be requested to appear in court to testify. Like any witness, they also maybe reluctant in the testimonial process. The key to testifying is simple: Testify truthfully. Notification to appear Notification to appear: Supoena- A court order demanding the presence of the person in court as a witness On-call- A direction in a subpoena that states the law enforcement official is not needed to appear personally in court unless called by the prosecutor. This requires that the law enforcement official remains nearby and readily available for a court appearance. Phone call- The prosecutor may merely just call the law enforcement official advising him or her that their presence in needed in court as a witness. What to do before the trial A. The law enforcement official must provide all information to the prosecutor, even if it is a weakness or problem with the case: Search warrant, arrest, collection and analysis of evidence, interrogation of the defendant. The law enforcement official must refamiliarize themselves with the facts of the case, and speak with prosecution what they are expected to testify about. In return, discuss the case with the superior officer and partner to get a second eye on how to present the facts and physical evidence. If an expert professional is testifying, they must be qualified expert, ensure they have all evidence available for court, and prepare it for proper presentation. What to wear in Court Wear to court what you wear to work is how most law enforcement official think. (shined shoes, clean and pressed uniform, no bulge from pencils notebooks, or anything that can distract the testimony.) If a uniform it not worn, business attire is the Norm for court. (solid-color dress shirt, modest tie, with a matching coat jakect, business suit conservative blouse and dress slacks or skirt.) Some who are off duty uniformed officers will wear business attire-only if they are traveling to court in their personal vehicles. Prosecution pref ...

Education
1 of 104
How to testify Effectively Chapter 15 By: Tiffany Houston May 7, 2016 Objectives Name the different methods used to notify a law enforcement professional to appear in court Describe the appropriate clothing for law enforcement professionals to wear in court Identify those people to whom the law enforcement professional should not speak to during recesses Explain what a law enforcement professional should do while testifying with respect to objections State what a law enforcement professional should do when he or she does not remember the answer to a question asked Explain what a law enforcement professional should do when asked an argumentative question on cross-examination that the defense attorney insists should be answered yes or no. The law enforcement professional Role Law Enforcement plays a important role in the prosecution process: Interview witnesses, preserve the crime scene, collect physical evidence, Due to the level of interaction Law Enforcement plays, they also will be requested to appear in court to testify. Like any witness, they also maybe reluctant in the testimonial process. The key to testifying is simple: Testify truthfully.
Notification to appear Notification to appear: Supoena- A court order demanding the presence of the person in court as a witness On-call- A direction in a subpoena that states the law enforcement official is not needed to appear personally in court unless called by the prosecutor. This requires that the law enforcement official remains nearby and readily available for a court appearance. Phone call- The prosecutor may merely just call the law enforcement official advising him or her that their presence in needed in court as a witness. What to do before the trial A. The law enforcement official must provide all information to the prosecutor, even if it is a weakness or problem with the case: Search warrant, arrest, collection and analysis of evidence, interrogation of the defendant. The law enforcement official must refamiliarize themselves with the facts of the case, and speak with prosecution what they are expected to testify about. In return, discuss the case with the superior officer and partner to get a second eye on how to present the facts and physical evidence. If an expert professional is testifying, they must be qualified expert, ensure they have all evidence available for court, and prepare it for proper presentation. What to wear in Court Wear to court what you wear to work is how most law enforcement official think. (shined shoes, clean and pressed uniform, no bulge from pencils notebooks, or anything that can distract the testimony.)
If a uniform it not worn, business attire is the Norm for court. (solid-color dress shirt, modest tie, with a matching coat jakect, business suit conservative blouse and dress slacks or skirt.) Some who are off duty uniformed officers will wear business attire-only if they are traveling to court in their personal vehicles. Prosecution prefer for even uniformed officers to wear business attire. DO NOT WEAR WEAPONS OR HATS. (i.e. baton or nightstick, pepper spray, tasers) Where to Appear and what to do Witnesses receive notice on when and wear to appear in court. When a witness reports on the designated date and time, they must be in the assigned courtroom and wait for further instructions. Due to the Rule on Witnesses, which requires all witnesses to be pulled out of the court room, the law enforcement official will also leave the court room if testifying. If the witness is requested to reappear in court, the judge will excuse them and request their appearance at another date and time. If the Witness is told to come after the court proceeding has started, they can contact the prosecution through the bailiff or court clerk. Conduct before and during court When the rule of witnesses is not used, law enforcement officials have the opportunity to gain important insights into how or how not to testify effectively. Observe the prosecutions direct examination, demeanor of the judge, and defense cross examination. Waiting outside of court for the witness should be precautious
about what they do or say. Avoid conversation with the Defense attorney, defendant or their witnesses. No Contact with the Jury. Carrying on conversation and passing notes amongst witnesses should be avoided. Showing emotions should also be avoided. Display a neutral position in the case. When called to the stand never walk in “the well” The well is the area in he courtroom between the judge bench and the counsel tables that is off limits without the judge’s permission. On the Witness stand Avoid slouching or slumping in the seat Avoid fidgeting behavior Avoid robot-like mannerism Speak clear and into the microphone, without jargon, vulgarity, and profanity. Do not show prejudice toward the defendant. When addressing the defendant look toward the defense table where he or she is sitting. Identify the defendant and what he or she is wearing. Answer all question direct. Even the simple question in reference to the law enforcement officials background. If a question is objected and sustained, that question will not be answered. If it is over ruled the official will answer the question. If the official forgets a portion of the situation be honest about them not remembering. After testifying The law enforcement official should make sure he or she is excused before leaving the courtroom.
Review Case after Verdict If there is an acquittal, the official should not take it personally. It there was a mistake made in their testimony, they should take that in consideration by correcting that mistake for future cases and assist others in not making the same mistake. Even if there is a conviction, there should still be a review of the case to improve investigatios and courtroom techniques, Sheet: PSX Income Statement Sheet: Sheet3 Sheet: NOPLAT Sheet: Beta PHILLIPS 66 (PSX) CashFlowFlag INCOME STATEMENT Fiscal year ends in December. USD in millions except per share data. Common Size Analysis Fiscal Year Net Sales 1.0 1.0 1.0 1.0 1.0 Cost of Sales 0.8542899453358767 0.8480398606479072 0.8445293622418298 0.8818377580826862 0.8696655365407383 Gross profit 0.1457100546641234 0.15196013935209285
0.15547063775817016 0.11816224191731385 0.13033446345926164 Sales, General and administrative 0.01013449690114752 0.03251548833298057 0.009413848525601076 0.007023438045201232 0.009310085028522225 Other operating expenses 0.09877935073403497 0.08635138923053161 0.10980636555471732 0.07812017107480036 0.11215154450543537 Total operating expenses 0.10891384763518248 0.11886687756351218 0.11922021408031838 0.0851436091200016 0.12146162953395759 EBIT=Operating income 0.0367962070289409 0.03309326178858068 0.036250423677851765 0.03301863279731225 0.008872833925304057 Interest Expense 1.1470672949647904 0.0016271260809419049 0.0015731455474260478 6.270800094930027E-6 8.473984866459968E-5 6.726940049510279E-6 Interest Income -1.5844673447374354E-4
9.152846821387915E-5 0.0013448355036572966 8.473984866459968E-5 6.726940049510279E-6 Income before taxes 0.03501063421352526 0.03161164470936851 0.036250423677851765 0.03301863279731225 0.008872833925304057 Provision for income taxes 0.010079649954598917 0.010548655961649571 0.013667027476192039 0.00919178123161893 0.0038948982886664514 Net income from continuing operations 0.024930984258926342 0.02106298874771894 0.022583396201659722 0.02382685156569332 0.0049779356366376065 Net income from discontinuing ops 0.004302438251479344 3.4895228506541423E-4 0.0 0.0 0.0 Other -2.1329368102234708E-4 -9.72489974772466E-5 -3.8267676933337704E-5 -2.4923484901352847E-5 -3.3634700247551394E-5 Net income 0.02902012882938334
0.021314692035307108 0.022545128524726385 0.02380192808079197 0.0049443009363900545 EPS 0.0 0.0 0.0 0.0 0.0 Basic 5.11904834453633E-5 3.47236126286404E-5 3.580761198762314E-5 0.0 0.0 Diluted 5.0763896083318605E-5 3.4437586165472025E-5 3.5424935218289765E-5 Basic Diluted Sales Growth Rate -0.06130119158624556 -0.0443522375657384 -0.08818925897494691 0.34951835109245505 Marginal Tax Rate Weighted Average Shares Outstanding 0.0 0.0 0.0 EBITDA 0.04270139494067388 0.03860213146920353 0.042586457615814394
PHILLIPS 66 (PSX) CashFlowFlag BALANCE SHEETS Fiscal year ends in December. USD in millions except per share data. Fiscal Year Total cash 0.03173200563095318 0.030890858022184213 0.018991701380916458 0.0 0.0 Receivables 0.03842942721505488 0.04519218118060283 0.04697630684116727 0.049971587227212455 0.06870223872564847 Inventories 0.0207016752695118 0.019186655149334417 0.018751161697335476 0.017276959733617793 0.027667904423635776 Prepaid expenses 0.005100766029020129 0.0048681704031256975 0.003580761198762314 0.0022780065199836503 0.0025427833387148854 Other current assets 0.005783305808291639 0.009907956684152418 0.009894927892763035 0.0 0.0 Total current assets 0.10174717995283163
0.11004582143939957 0.09819485901094456 0.06952655348081391 0.09891292648799914 Gross property, plant and equipment 0.16542448489576034 0.13972964778701324 0.13026863909207204 0.1154256432751453 0.16559035625874502 Accumulated Depreciation -0.059716136581085114 -0.05164493818968131 -0.04604148216179574 -0.04179668417956872 -0.06193493703584114 Net property, plant and equipment 0.10570834831467521 0.08808470959733194 0.0842271569302763 0.07362895909557658 0.10365541922290389 Equity and other investments 0.06209283759819127 0.06418433833498276 0.057242977881282735 0.05137228707866849 0.06671779141104295 Goodwill 0.01995210033334755 0.017710758599385614 0.01828101595215447 0.016609010338261537 0.02443897319987084 Intangible assets 0.0054846946548603535
0.003992929425830478 0.0039579711571052145 0.0036487981895580567 0.005226832418469486 Other long-term assets 0.002047619337814532 8.523588602417496E-4 9.020238134286745E-4 6.081330315930094E-4 0.0034576471854482834 Total non-current assets 0.1952856002388889 0.17482509481777253 0.16461114573424737 0.14586718773365767 0.20349666343773545 Total assets 0.2970327801917205 0.2848709162571721 0.26280600474519195 0.21539374121447158 0.3024095899257346 Short-term debt 0.0051312365548804644 1.3729270232081873E-4 7.10685428761986E-5 1.4954090940811707E-4 1.9508126143579808E-4 Accounts payable 0.04563265952843814 0.05690782511197936 0.05854954570800669 0.05379484981107999 0.072321332472285 Taxes payable 0.005350624341074878
0.004988301517656414 0.00492559670241961 0.005418365617554109 0.00795124313852115 Accrued liabilities 0.007983277775407848 0.005405900153882237 0.004690523829829108 0.0023677310656285205 0.003639274566785061 Other current liabilities 0.0035102045791106265 0.006532844418765624 0.0 0.0 0.0 Total current liabilities 0.06760800277891196 0.07397216390460445 0.06823673478313161 0.06173048740367073 0.08410693143902702 Long-term debt 0.04778997275934988 0.03507256491370581 0.03805447130470911 0.0017994756098776755 0.0026100527392099882 Deferred taxes liabilities 0.03346273149982022 0.035038241738125614 0.029761319032155783 0.028926196576510115 0.03240367021849101 Minority interest 0.002724065011913976
0.0025284739344084116 1.6947114070478127E-4 1.445562124278465E-4 1.6817350123775698E-4 Other long-term liabilities 0.013876277476796695 0.012693854435412365 0.01301101015733482 0.00682903486297068 0.00821359380045205 Total non-current liabilities 0.09785304674788077 0.0853331350216522 0.0809962716349045 0.03769926326178632 0.04339549025939081 Total liabilities 0.16546104952679275 0.15930529892625667 0.1492330064180361 0.09942975066545705 0.12750242169841783 Common stock 3.6564631032402355E-5 3.432317558020468E-5 3.280086594286089E-5 0.0 0.0 Additional paid-in capital 0.11603176247615682 0.10804363619722096 0.10237150260766885 0.0 0.0 Retained earnings 0.056730025046772256
0.032160815518651784 0.0148314582171636 0.0 0.0 Treasury stock -0.037990651642666046 -0.014884817143282096 -0.0019461847126097463 0.0 0.0 Accumulated other comprehensive income -0.003235969846367609 2.1165958274459553E-4 -0.00171657865100972 0.11596399054901453 0.17490716822731675 Total stockholders' equity 0.1315717306649278 0.12556561733091545 0.11357299832715584 0.11596399054901453 0.17490716822731675 Total liabilities and stockholders' equity 0.2970327801917205 0.2848709162571721 0.26280600474519195 0.21539374121447158 0.3024095899257346 CHECK (total assets=total liabilities-total equity) PHILLIPS 66 (PSX) Statement of CASH FLOW Fiscal year ends in December. USD in millions except per share data. Fiscal Year Cash Flows From Operating Activities Net income 0.029233422510405685
0.021411941032784352 0.022583396201659722 0.02382685156569332 0.0049779356366376065 Depreciation & amortization 0.0060636346462067245 0.005417341212408972 0.004991198434305333 0.004526104858085677 0.005919707243569045 Amortization of debt discount/premium and issuance costs 1.4625852412960942E-4 1.3729270232081873E-4 1.366702747619204E-4 0.0 0.0 Investment/asset impairment charges 9.14115775810059E-4 1.6589534863765596E-4 0.006330567126972152 0.0023527769746877086 0.011429071144117963 Deferred income taxes -0.002973923323968725 0.0033979943824402636 0.0012081652288953762 0.0046407528886319 -2.219890216338392E-4 (Gain) Loss from discontinued operations -0.004302438251479344 -3.4895228506541423E-4 0.0 0.0 0.0 Inventory -5.179989396257E-4
2.1738011200796297E-4 3.0067460447622484E-4 0.003070573339846671 -0.0023140673770315357 Prepaid expenses -0.0019257372343731908 1.1441058526734893E-4 -2.6240692754288714E-4 1.3957151544757593E-4 -1.3453880099020557E-5 Accounts payable -0.02025071148677884 0.0020593905348122808 -0.005384808825619663 2.89112424855693E-4 0.020201000968679366 Income taxes payable 0.0029129822722480546 -1.0869005600398149E-4 -1.9133838466668855E-4 -9.969393960541138E-4 0.0010964912280701754 Other working capital 0.013565478113021275 0.002751574575679742 -7.817539716381846E-4 -9.271536383303259E-4 -0.02030863200947153 Other non-cash items -0.0013589854533709543 -7.379482749744007E-4 -0.005444943746514908 -0.011968257449629637 -0.006693305349262727 Net cash provided by operating activities 0.021506097152224655
0.0344776298703156 0.0234854200150884 0.02495339308323447 0.014072758583575503 Cash Flows From Investing Activities 0.0 0.0 0.0 0.0 0.0 Investments in property, plant, and equipment -0.022993058814209016 -0.010176821559530688 -0.009408381714610599 -0.005094360313836522 -0.007735981056936821 Other investing activities 0.009000993339143048 0.007636906566595541 0.0010168268442286876 0.01751622518867078 0.0033500161446561186 Net cash used for investing activities -0.013992065475065969 -0.0025399149929351463 -0.008391554870381911 0.012421864874834258 -0.0043859649122807015 Cash Flows From Financing Activities 0.0 0.0 0.0 0.0 0.0 Debt issued 2487.0
7794.0 0.015156039562930776 0.0 0.042608324859776295 0.0 0.0 Debt repayment -2.986111534312859E-4 -0.005834939848634796 -0.006614841298476946 -1.296021214870348E-4 -1.7490044128726725E-4 Common stock issued 6.094105172067059E-6 0.0023454169979806533 2.569401165524103E-4 0.0 0.0 Common stock repurchased -0.01390674800265703 -0.012848308725523285 -0.0019461847126097463 0.0 0.0 Dividend paid -0.006471939692735218 -0.004673672408171204 -0.030269732454270126 0.0 0.0 Other financing activities -0.002785006063634646 -3.432317558020468E-5 -2.132056286285958E-4 -0.037245655836581695 -0.009511893230007534
Net cash provided by (used for) financing activities -0.008300171244355335 -0.021045827159928837 0.003821300882343294 -0.03737525795806873 -0.009686793671294802 Effect of exchange rate changes -3.900227310122918E-4 1.2585164379408384E-4 7.653535386667541E-5 0.0 0.0 Net change in cash -0.0011761622982089425 0.011017739361245702 0.018991701380916458 0.0 0.0 Cash at beginning of period 0.032908167929162124 0.01987311866093851 0.0 0.0 0.0 Cash at end of period 0.03173200563095318 0.030890858022184213 0.018991701380916458 0.0 0.0 Free Cash Flow 0.0 0.0 0.0 0.0 0.0
Operating cash flow 0.021506097152224655 0.0344776298703156 0.0234854200150884 0.02495339308323447 0.014072758583575503 Capital expenditure -0.022993058814209016 -0.010176821559530688 -0.009408381714610599 -0.005094360313836522 -0.007735981056936821 Free cash flow -0.0014869616619843625 0.024300808310784915 0.014077038300477799 0.019859032769397947 0.006336777526638682 ROIC 0.1331 0.1745 0.146 0.5039 Stock Closing Price 12/29/2014 71.0 Shares Outstanding Market Capitalization of Equity 40612.0 Interest Bearing Debt Enterprise Value=EV interest bearing debt-market cap of eq 51573.0 EBITDA Multiple=EBIT/EBITDA Historical NOPLAT EBIT 6038.0 5785.0
6631.0 6624.0 1319.0 Adjusted EBITA 6038.0 5785.0 6631.0 6624.0 1319.0 Operating cash taxes -2382.41 -2622.1099999999997 -2326.5 -2839.46 -579.88 NOPLAT 3655.59 3162.8900000000003 4304.5 3784.54 739.121 Operating Taxes on EBITA Reported taxes 1654.0 1844.0 2500.0 1844.0 579.0 Tax shield on interest paid 4.73 0.44 Taxes on interest received 9.62 4.73 0.44 Taxes on EBITA
1762.4099999999999 1941.11 2685.5 1853.46 579.88 Decrease/(increase) in deferred taxes Operating cash taxes 2382.41 2622.1099999999997 2326.5 2839.46 579.88 Reconciliation to net income Net income 4762.0 1019.1999999999997 885.5999999999984 746.9000000000013 Increase/(decrease) in deferred taxes -620.0 -681.0 359.0 -986.0 Adjusted net income 4142.0 338.1999999999997 1244.5999999999985 -239.09999999999866 After-tax interest paid 168.21 0.0 1.9529327050352094 0.2519913167787367 Loss (gain) from discontinued operations -671.0 0.0
0.0 0.0 Total income available to all investors 3639.21 338.1999999999997 1246.5529327050338 -238.84800868321992 After-tax interest received -17.324403028538146 -6.0477916026896805 NOPLAT 3655.59 328.1999999999997 1229.2285296764956 -244.8958002859096 Check 0.0 Historical Invested Captial Cash and cash equivalents Accounts receivable Inventories Other current assets Operating Current Assets Accounts payable Accrued expenses Income taxes payable Other current liabilities Operating Current Liabilities Operating Working Captial Net property, plant and equipment Other Non-current Assets Intangible assets Operating Invested Captial Non-Operating Assets Short term investments Long-term investments
Total funds invested Short-term barrowing Long-term liabilities Other long-term liabilities Debt & debt equivalents (Interest bearing debts) Deferred income taxes (net of deferred taxes- assets) Minority interest Net common stock and paid-in-capital Retained earnings Treasury stock Accumulated comprehensive income Equity & equity equivalents Total funds invested Check Historical Free Cash Flows NOPLAT Depreciation Gross cash flow (Increase)/decrease in operating working capital Capital expenditures (Increase)/decrease in other assets (Increase)/decrease in intangibles and goodwill Increase (decrease) in accumulated comprehensive income Gross investment Free Cash flow 444.59000000000015 After-tax interest received 154.98 (Increase) /decrease in sort-term investments (Increase) /decrease in long term investments Discontinued operations (-expense and + income) Cash flows to investors Financing flows After-tax interest expense 154.98 Decrease/(increase) in debt
Flows to debt holders Minority interests (gain) from income statement Decrease (Increase) in minority interest op(IC) Dividends (or adjustment to retained earnings) Net Shares repurchased (issued) Flows to equity holders Cash flows available to investors check Month PSX Market R(stock) R(market) 1370.26001 1378.530029 -0.01837837837837837 0.006035364777229431 41022.0 34.110001 1403.359985 -0.06084799008810582 0.01801190795822703 1369.099976 -0.11580184357074622 -0.024412844434922434 1353.390015 0.05537135278514583 -0.011474663118393059 41043.0 31.379999 1295.219971 -0.014137637448947433 -0.0429809909599488 41050.0 31.299999 1317.819946
-0.002549394600044501 0.01744875427032779 1278.040039 -0.0440894263287356 -0.030186147296331855 41064.0 32.119999 1325.660034 0.07352937834224593 0.0372601746008366 41071.0 34.900002 1342.839966 0.0865505319598547 0.012959530769108189 41078.0 34.16 1335.02002 -0.021203494486905877 -0.005823438531766244 41085.0 33.240002 1362.160034 -0.026932025761124113 0.020329293638607807 41092.0 33.369999 1354.680054 0.003910860173835219 -0.005491263737958171 41099.0 34.939999 1356.780029 0.04704824833827535 0.0015501630763658427 1362.660034
0.010875815995300974 0.004333793890181134 41113.0 36.52 1385.969971 0.033975084937712424 0.017106201413697578 41120.0 39.669998 1390.98999 0.08625405257393198 0.003622025805059847 1405.869995 0.008318679521990406 0.010697420619108828 1418.160034 0.06925000000000008 0.008741945587934664 41141.0 41.360001 1411.130005 -0.03296700958615867 -0.00495714787573827 1406.579956 0.015473863262237425 -0.0032244010005300287 41156.0 44.259998 1437.920044 0.05380947619047626 0.0222810568758026 1465.77002 0.05580664508841581 0.01936823686143704 1460.150024 0.0019259576289322366
-0.0038341594679361097 41176.0 46.369999 1440.670044 -0.009611298590346012 -0.013341081176464145 1460.930054 -0.00754796220720205 0.014062907800698302 41190.0 43.919998 1428.589966 -0.045632377227292555 -0.022136643647964766 41197.0 44.639999 1433.189941 0.01639346613813606 0.0032199407174053228 1411.939941 0.06406812419507439 -0.014827064712143413 41213.0 46.209999 1414.199951 -0.027157915789473613 0.001600641737211091 1379.849976 0.025968427309422646 -0.02428933403350124 1359.880005 -0.03459185825775139 -0.014472566835048441 1409.150024 0.08848590779986884 0.036231151880198466
41239.0 52.369999 1416.180054 0.051184243275792844 0.004988844253818 1418.069946 -5.7282796587406E-4 0.0013344998008283948 41253.0 53.470001 1413.579956 0.021589625525410775 -0.003166268358387474 1430.150024 -0.024499737712741144 0.011722059250817499 1402.430054 -0.03048312883435576 -0.019382560944529344 41274.0 53.139999 1466.469971 0.050820624876408996 0.04566353724190801 41281.0 50.580002 1472.050049 -0.04817457749669891 0.0038051089421182274 1485.97998 0.08877022187543607 0.009462946595778501 41296.0 56.810001 1502.959961 0.03159616851280188
0.011426789881785589 1513.170044 0.10455903706109775 0.006793316698341467 41309.0 64.019997 1517.930054 0.020238996015936313 0.003145720481894476 41316.0 64.169998 1519.790039 0.0023430335368494807 0.001225343022294525 41324.0 64.110001 1515.599976 -9.3496964110876E-4 -0.0027570012254831008 41330.0 63.900002 1518.199951 -0.003275604378792574 0.0017154757463522722 41337.0 66.029999 1551.180054 0.03333328534168126 0.02172316168122434 41344.0 64.150002 1560.699951 -0.02847186170637384 0.006137196630043909 41351.0 67.550003
1556.890015 0.05300079335928942 -0.0024411713459457315 41358.0 69.970001 1569.189941 0.03582528338303689 0.007900317865421048 41365.0 62.310001 1553.280029 -0.10947548793089194 -0.010138933206429519 41372.0 60.669998 1588.849976 -0.026320060562990525 0.022899893345631857 -0.04664575726539494 -0.021147355954014863 41386.0 61.599998 1582.23999 0.06500688105117558 0.01735411670149496 1614.420044 0.009415617188818746 0.02033828888372359 41400.0 61.380001 1633.699951 -0.012865857188806685 0.011942311464512575 41407.0 65.459999 1667.469971
0.06647112957850874 0.02067088266687469 41414.0 65.470001 1649.599976 1.527956027008199E-4 -0.010716831673606203 41422.0 66.57 1630.73999 0.016801572983021595 -0.011433066364205583 41428.0 65.870003 1643.380005 -0.01051520204296224 0.007751091576530204 41435.0 63.810001 1626.72998 -0.03127374990403443 -0.010131573311919367 1592.430054 -0.07146216781911663 -0.02108519940107094 1606.280029 -0.005738396624472631 0.008697383577514473 41456.0 57.240002 1631.890015 -0.028348294007808517 0.01594366208732832 1680.189941 0.03232001983507979 0.029597537552186165
41470.0 57.490002 1692.089966 -0.027077305804704795 0.007082547460626604 1691.650024 0.026265401764988688 -2.59999177845118E-4 1709.670044 -0.010000000000000057 0.010652333369399067 41491.0 58.919998 1691.420044 0.008731347372025392 -0.0106745743507921 41498.0 56.299999 1655.829956 -0.04446705853588114 -0.021041543244239763 41505.0 58.110001 1663.5 0.032149236805492615 0.004632144727305538 41512.0 57.099998 1632.969971 -0.017380880788489362 -0.01835288788698528 41520.0 57.419998 1655.170044 0.005604203348658616 0.01359490584288275
41526.0 57.130001 1687.98999 -0.0050504529798137505 0.019828745764806793 1709.910034 0.014003132959861136 0.012985885064401336 41540.0 58.529999 1691.75 0.010357310547212098 -0.010620461684477136 41547.0 59.169998 1690.5 0.010934546573288052 -7.388798581350672E-4 1703.199951 0.012844381032427956 0.007512541259982287 0.05923577507091602 0.024248502928708657 41568.0 63.400002 1759.77002 -0.0012602079395084473 0.00875323588420747 41575.0 64.129997 1761.640015 0.011514116356021604 0.0010626360142219136 41582.0 65.360001 1770.609985
0.01917985431996814 0.005091829161248987 41589.0 67.099998 1798.180054 0.026621740718761656 0.015570944043896756 41596.0 68.480003 1804.76001 0.020566394055630183 0.0036592308903455554 41603.0 69.610001 1805.810059 0.016501138295802947 5.818219564827041E-4 41610.0 71.239998 1805.089966 0.023416132403158606 -3.9876453030651004E-4 41617.0 71.599998 1775.319946 0.005053340961632248 -0.0164922638542881 41624.0 74.029999 1818.319946 0.03393856240051856 0.02422098624920198 1841.400024 0.009725800482585395 0.012693078603010582 41638.0
76.290001 1831.369995 0.020602020066889683 -0.005446958221610196 1842.369995 0.022414457695445516 0.00600643235939879 41652.0 76.019997 1838.699951 -0.0253846538461538 -0.0019920233231978802 41660.0 74.440002 1790.290039 -0.020783939257456124 -0.026328337026207967 41666.0 73.089996 1782.589966 -0.018135491183893404 -0.004301019852794911 41673.0 74.279999 1797.02002 0.016281338967373927 0.008094993394571776 41680.0 75.93 1838.630005 0.022213260934481206 0.023154992452449168 41688.0 74.949997 1836.25 -0.0129066640326618
-0.0012944447732973785 41694.0 74.860001 1859.449951 -0.0012007472128384381 0.012634418515997307 41701.0 78.080002 1878.040039 0.043013638217824716 0.009997627518827433 41708.0 78.690002 1841.130005 0.007812499799884914 -0.019653486205572848 41715.0 77.949997 1866.52002 -0.00940405364330796 0.013790452021882045 41722.0 76.650002 1857.619995 -0.016677293778471804 -0.004768245132457735 41729.0 79.57 1865.089966 0.03809521100860496 0.004021258933531229 1815.689941 -0.035440492647982824 -0.02648667136735854 41743.0 80.279999
1864.849976 0.04599347231270363 0.027075126589578807 41750.0 82.589996 1863.400024 0.028774252974268166 -7.775167003567794E-4 41757.0 83.529999 1881.140015 0.011381560062068587 0.009520226881783016 41764.0 81.910004 1878.47998 -0.019394169991550015 -0.0014140547640202528 41771.0 81.860001 1877.859985 -6.104626731553303E-4 -3.300514280700597E-4 41778.0 82.029999 1900.530029 0.0020766918876534922 0.012072275984942487 41786.0 84.790001 1923.569946 0.03364625178161955 0.0121228902718906 41792.0 84.360001 1949.439941
-0.005071352694051823 0.01344894946700317 41799.0 83.489998 1936.160034 -0.010312979963098826 -0.006812165238180115 41806.0 85.940002 1962.869995 0.029344880329258204 0.013795327106726148 41813.0 81.489998 1960.959961 -0.051780357184539126 -9.730822748655832E-4 1985.439941 1.2273898939106693E-4 0.012483671511332846 41827.0 80.290001 1967.569946 -0.014846613496932469 -0.009000521562490324 41834.0 80.860001 1978.219971 0.007099265075360918 0.005412780888247982 41841.0 82.650002 1978.339966 0.02213703905346234 6.0658067231703814E-5 41848.0
80.540001 1925.150024 -0.025529352074304814 -0.02688614844472084 41855.0 83.050003 1931.589966 0.031164663134285283 0.003345163711771054 41862.0 83.790001 1955.060059 0.008910270599267767 0.012150660032989582 41869.0 86.089996 1988.400024 0.02744951632116576 0.017053166651592937 41876.0 87.019997 2003.369995 0.010802660508893558 0.007528651588871629 41884.0 87.510002 2007.709961 0.00563094710288253 0.0021663327347577668 41890.0 83.019997 1985.540039 -0.05130847785833666 -0.011042392791116925 2010.400024 0.03288367981993539
0.012520515583518813 41904.0 82.230003 1982.849976 -0.04104952769679304 -0.013703764261395602 41911.0 77.639999 1967.900024 -0.05581909075207006 -0.007539628404040155 41918.0 76.32 1906.130005 -0.01700153293407448 -0.03138879935294927 41925.0 72.209999 1886.76001 -0.053852214360586965 -0.010161948528794087 41932.0 76.489998 1964.579956 0.059271556007084336 0.04124528058022603 2018.050049 0.02627797166369386 0.027217061253576133 41946.0 74.699997 2031.920044 -0.04840768152866247 0.0068729687882978854 41953.0 71.779999
2039.819946 -0.03908966689784462 0.003887900029987652 41960.0 79.419998 2063.5 0.10643632079181281 0.011608894229334065 41967.0 73.019997 2067.560059 -0.08058425032949514 0.0019675594863096243 41974.0 73.019997 2075.370117 0.0 0.00377742739128819 41981.0 65.68 2002.329956 -0.1005203684136004 -0.0351938000849609 41988.0 71.809998 2070.649902 0.09333127283800222 0.03412022369004605 41995.0 72.650002 2088.77002 0.01169759119057499 0.008750932730104665 42002.0 71.699997 2058.899902
-0.013076462131411977 -0.014300338339785163 Std Dev. 0.2912009561473383 0.11265295119064521 Systematic Risk= 0.023627759483308582 SUMMARY OUTPUT Unsystematic Risk= 0.061170237377815476 Total Risk= 0.08479799686112406 Regression Statistics Multiple R 0.527859660424276 Systematic Risk %= 0.2786358211032319 0.2786 R Square R Square 0.278635821103232 Unsystematic Risk %= 0.7213641788967681 0.7214 Adjusted R Square 0.2734832198253979 1.0 Standard Error 0.034420244391033306 Observations 142.0 ANOVA df SS MS F
Significance F Regression 1.0 0.06406757859897141 0.06406757859897141 54.08 1.475E-11 Residual 140.0 0.16586545135138436 0.0011847532239384598 Total 141.0 0.22993302995035578 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 0.0013956700067627283 0.002941372020613838 0.4744962544627267 0.6358853512888738 -0.004419580487487192 0.007210920501012649 -0.004419580487487192 0.007210920501012649 X Variable 1 1.3644 0.1855510821655389 7.353688097972829 1.475065950091913E-11
0.9976403273049222 1.7313292416684813 0.9976403273049222 1.7313292416684813 Adjusted/Smoothing beta 1.24 Interest bearing Debt (D) 10961.0 Market cap E 40612.0 Captial Structure Total Debit Ratio 0.5570464290843438 0.5592192457528414 0.5678447361304683 Stable debt ratio beta/(1+D/E) to unlever beta Unlevered beta (PSX) 97.98 Unlevered beta (VLO) 1.1054 Re-Levered (PSX) Beta 1.0425846835095354 Avgerage/Industry unlevererd Beta 1.3239736994641305 NOPLAT,IC&FCFHistorical NOPLAT20142013201220112010EBIT5,461,4006,224,7004,734 ,4004,222,8003,025,200Add amortizationAdjusted EBITA5,461,4006,224,7004,734,4004,222,800Operating cash taxes-2,304,772-1,094,467-2,082,390- 1,946,528NOPLAT3,156,6285,130,2332,652,0102,276,272Oper ating Taxes on EBITAReported taxes1,626,5001,945,9001,659,4001,423,600Tax shield on interest paid225,096263,903273,980253,640Taxes on interest received2,576-36-272,790-256,512 Taxes on EBITA1,854,1722,209,7671,660,5901,420,728Decrease/(increas
e) in deferred taxes000144,300Decrease/(increase) in long-term deferred taxes450,600-1,115,300421,800381,500Operating cash taxes2,304,7721,094,4672,082,3901,946,528Reconciliation to net income2014201320122011Net income3,161,7003,537,3003,064,7002,799,900Increase/(decreas e) in deferred taxes000-144,300Increase/(decrease) in long-term deferred taxes-450,6001,115,300-421,800-381,500 Adjusted net income2,711,1004,652,6002,642,9002,274,100After-tax interest paid438,904477,397508,820505,760Loss (gain) from discontinued operations1,6003006,9007,900 Total income available to all investors3,151,6045,130,2973,158,6202,787,760After-tax interest received5,024-64-506,610- 511,488NOPLAT3,156,6285,130,2332,652,0102,276,272check Row 7 = Row 27?0.000.000.000.000.00Historical Invested Capital20142013201220112010Cash and cash equivalents3,787,0003,504,0004,652,2003,647,2003,790,600Ac counts receivable3,277,6003,758,2003,799,1003,294,50024,349,100Inv entories 4,209,7004,934,7005,170,0004,370,6003,063,000Other current assets 33,555,00031,281,00027,627,30024,207,1001,936,200 Operating Current Assets44,829,30043,477,90041,248,60035,519,40033,138,900A ccounts payable 002,481,0002,351,0002,383,000Accrued expenses003,712,0004,571,0003,817,700Income taxes payable000166,000154,000Deferred revenues00452,000345,0000Other current liabilities8,655,1009,080,5002,479,100489,500330,500 Operating Current Liabilities 8,655,1009,080,5009,124,1007,922,5006,685,200Operating working capital36,174,20034,397,40032,124,50027,596,90026,453,700N et property, plant and equipment9,593,3005,466,9007,539,7006,502,3003,790,700Othe r non-current
assets1,496,9004,931,9001,465,3001,180,5002,125,400Intangibl e assets68,80077,100105,000127,400117,000Goodwill791,200844 ,800921,200999,800998,600 Operating invested capital48,124,40045,718,10042,155,70036,406,90033,485,400 Non-operating assetsPrepaid pension benefit262,000551,10020,20030,400146,700Short-term investments1,215,1001,624,8001,470,400787,300227,900Long- term investments303,200221,400215,000201,700244,500 Total funds invested49,904,70048,115,40043,861,30037,426,30034,104,500 20142013201220112010Short-term borrowings12,577,70012,898,0009,967,3009,629,7007,534,500L ong-term liabilities24,380,70021,577,70022,453,10016,959,90016,814,50 0Pensions and other benefits6,496,5005,416,7007,694,8006,712,1005,784,900Other long-term liabilities0120,400164,500168,3000 Debt & debt equivalents (interest-bearing debts)43,454,90040,012,80040,279,70033,470,00030,133,900De ferred income taxes (net of deferred taxes- assets)-2,615,700- 2,165,100-3,280,400-2,858,600-2,332,800Minority Interest2,9001,90019,90014,60013,100Net common stock and paid-in- capital3,675,4003,524,2003,352,2003,251,7003,106,300Retaine d earnings22,004,40019,645,60016,875,20014,519,40012,353,100 Treasury stock-12,834,200-10,210,900-8,813,800-7,292,800- 5,789,500Accumulated comprehensive income-3,783,000- 2,693,100-4,571,500-3,678,000-3,379,600 Equity & equity equivalents6,449,8008,102,6003,581,6003,956,3003,970,600 Total funds invested49,904,70048,115,40043,861,30037,426,30034,104,500 check Row 54 = Row 69?0.000.000.000.000.0020142013201220112010ROIC (including goodwill)6.90%12.17%7.28%6.80%Stock's closing
price85.5481.8485.4475.9076.80Shares outstanding363,000385,300397,100417,400424,000Market capitalization of equity31,051,02031,532,95233,928,22431,680,66032,563,200Int erest-bearing debt43,454,90040,012,80040,279,70033,470,00030,133,900Ente rprise value=interest-bearing debt+Market cap of equity74,505,92071,545,75274,207,92465,150,66062,697,100E BITDA multiple =EV/EBITDA11.019.7112.9312.6815.91Historical Free Cash Flows20142013201220112010NOPLAT3,156,6285,130,2332,65 2,0102,276,272Depreciation1,306,5001,140,3001,004,200914,9 00914,800 Gross cash flow4,463,1286,270,5333,656,2103,191,172(Increase)/decrease in operating working capital-1,776,800-2,272,900-4,527,600- 1,143,200Capital expenditures-5,432,900932,500-2,041,600- 3,626,500(Increase)/decrease in other assets3,435,000- 3,466,600-284,800944,900(Increase)/decrease in intangibles and goodwill61,900104,300101,000-11,600Increase (decrease) in accumulated comprehensive income-1,089,9001,878,400- 893,500-298,400Gross investment-4,802,700-2,824,300- 7,646,500-4,134,800 Free Cash flow-339,5723,446,233- 3,990,290-943,628After-tax interest received- 5,02464506,610511,488(Increase)/decrease in prepaid pension benefit289,100-530,90010,200116,300(Increase) /decrease in short-term investments409,700-154,400-683,100- 559,400(Increase) /decrease in long term investments-81,800- 6,400-13,30042,800Discontinued operations ("-" for expense and "+" for income)-1,600-300-6,900-7,900 Cash flows to investors270,8042,754,297-4,176,780- 840,3402,0032,0022,0012,000 Financing flowsAfter-tax interest expense438,904477,397508,820505,760Decrease/(increase) in debt-3,442,100266,900-6,809,700-3,336,100 Flows to debt holders-3,003,196744,297-6,300,880-2,830,340Minority interests (gain) from income statement0000Decrease (Increase)
in minority interest-1,00018,000-5,300-1,500Dividends (or adjustments to retained earnings)802,900766,900708,900633,600Net shares repurchased (issued)2,472,1001,225,1001,420,5001,357,900 Flows to equity holders3,274,0002,010,0002,124,1001,990,000 Cash flows available to investors270,8042,754,297-4,176,780- 840,340check Row 100 = Row 113?0.000.000.000.000.00 Enterprise DCF ModelSpredasheet Valuation of Walco Companyt=0t=1t=2t=3t=4t=5t=6t=7t=8t=9t=10t=1120142015E2 016E2017E2018E2019E2020E2021E2022E2023E2024E2025EPa nel A. Operating AssumptionsEBIT/Sales15.14%15.30%15.00%14.50%14.50%14 .50%14.00%14.00%14.00%14.00%14.00%14.00%NOPLAT/Sale s9.72%9.83%9.63%9.31%9.31%9.31%8.99%8.99%8.99%8.99% 8.99%8.99%Depreciaton/Sales3.62%3.62%3.62%3.62%3.62%3. 62%3.30%3.30%2.95%2.95%2.95%2.95%Working capital/Sales100.30%95.00%95.00%95.00%95.00%95.00%93.50 %93.50%93.50%93.50%93.50%93.50%Working capital36,174,20033,201,38532,470,95433,120,37334,113,9853 5,137,40435,239,67235,521,59035,805,76336,092,20936,380,94 636,671,994Capital expenditures/Sales15.06%10.00%8.60%6.20%6.20%5.40%5.40 %4.80%4.80%4.80%4.80%4.80%Other assets/Sales4.15%4.06%4.06%4.00%4.00%4.00%4.00%4.00%3. 94%3.94%3.94%3.94%Other assets1,496,9001,418,9221,387,7061,394,5421,436,3781,479,47 01,507,5801,519,6401,508,8201,520,8911,533,0581,545,323Fre e cash flow/Sales- 16.17%12.18%6.88%4.85%3.85%4.65%6.54%6.72%6.43%6.37 %6.37%6.37%Panel B. Inputs for Present Value Calculations1Sales36,066,90034,948,82634,179,95234,863,5513 5,909,45736,986,74137,689,48937,991,00538,294,93338,601,29 338,910,10339,221,3842Sales growth rate-4.57%-3.10%- 2.20%2.00%3.00%3.00%1.90%0.80%0.80%0.80%0.80%0.80%3 EBIT5,461,4005,347,1705,126,9935,055,2155,206,8715,363,07 75,276,5295,318,7415,361,2915,404,1815,447,4145,490,9944M
arginal tax rate35.78%35.78%35.78%35.78%35.78%35.78%35.78%35.78% 35.78%35.78%35.78%35.78%5Income taxes1,954,0891,913,2181,834,4381,808,7561,863,0191,918,909 1,887,9421,903,0451,918,2701,933,6161,949,0851,964,6786NO PLAT3,507,3113,433,9533,292,5553,246,4593,343,8533,444,16 83,388,5873,415,6953,443,0213,470,5653,498,3303,526,3167 + Depreciaiton1,306,5001,265,9991,238,1471,262,9091,300,7971, 339,8211,243,7531,253,7031,129,7011,138,7381,147,8481,157, 0318- Change in working capital-1,776,8002,972,815730,430- 649,419-993,611-1,023,420-102,268-281,917-284,173-286,446- 288,738-291,0489- Capital expenditures-5,432,900-3,494,883- 2,939,476-2,161,540-2,226,386-1,997,284-2,035,232-1,823,568- 1,838,157-1,852,862-1,867,685-1,882,62610 + - Change in other assets-3,435,00077,97831,216-6,836-41,836-43,091- 28,110-12,06110,820-12,071-12,167-12,26411Free cash flow- 5,830,8894,255,8622,352,8721,691,5731,382,8161,720,1942,46 6,7292,551,8522,461,2122,457,9242,477,5882,497,40912WACC 5.54%5.54%5.54%5.54%5.54%5.54%5.54%5.54%5.54%5.54%5. 54%13Discount factor1.05540499651.11387970661.17559420781.24072800071. 30947053121.38202174141.45859265111.53940597181.624696 75421.714713072214Present value4032444.032112321.631438909.121114519.611313656.21 1784869.941749530.411598806.141512851.211444899.37Panel C. Valuation CalculationsRisk-Free Rate2.40%SurveyBeta Levered1.651PV of FCF, 2013-202218,102,808Enterprise value57,281,048Unlevered beta0.6874932603Equity Risk Premium5.70%Survey2PV of continuing value (CV10))37,397,940Value of debt43,454,900cost of unlevered equity6.32%Cost of Equity11.80%3Non-operating assets1,780,300Value of equity13,826,148Cost of Debt (Before Tax)1.66%4Enterprise value57,281,048Shares outstanding363,000Cost of Debt (After Tax)1.07%5RONIC5.80%Intrinsic share price38.09Capital Structure, % Equity41.68%Stock was undervalued-55%Base
WACC5.54%Relative valuation:1PV of FCF, 2013- 202218,102,808Enterprise value58,345,8842016 EPS Estimate=5.4ValueLineCapital structureTotalWeight2PV of continuing value (CV10)38,462,776Value of debt43,454,900Long-term average P/E=14ValueLineInterest- bearing debt43,454,90058.32%3Non-operating assets1,780,300Value of equity14,890,984Estimated 2016 price =75.6MV of equity31,051,02041.68%4Enterprise value58,345,884Shares outstanding363,000Dividends in 2015 (year 1)=2.52ValueLineDebt+equity=EV74,505,920100.00%Intrinsic share price41.02Dividends in 2016 (year 2)=2.69ValueLineStock was undervalued-52%Intrinsic Share Price64.892012 EV/EBITDA multiple11.012022 EV/EBITDA multiple10.00Stock price on Oct 31, 2014 = 85.54Panel D. Sensitivity AnalysisCuurent inputs:Expected growth rate in perpetuity g=0.80%1. Enter the value of intrinsic share price in Cell N35 at Cell D54RONIC =5.80%2. Enter a value range for two varaiables and block D54:K61Market risk premium =5.70%3. Click Data|What-If Analysis|Data Table Intrinsic value =38.094. Insert both row and column inputs into Data TableRONIC38.098.5%9.0%9.5%10.0%10.5%11.0%11.5%g4.4 %190.07205.40219.11231.45242.61252.76262.034.6%230.5525 0.05267.50283.20297.41310.33322.124.8%292.81318.75341.97 362.86381.76398.95414.645.0%401.02438.19471.45501.38528. 45553.07575.555.2%636.18697.77752.88802.48847.35888.1592 5.405.4%1540.361695.961835.181960.482073.842176.902271.0 05.6%-3632.87-4015.35-4357.57-4665.56-4944.22-5197.55- 5428.86Market Risk Premium38.094.9%5.1%5.3%5.5%5.7%5.9%6.1%g4.4%195.961 43.47107.6081.5161.6746.0633.454.6%274.65182.40128.1892.4 767.1448.2233.544.8%517.94268.44166.21110.5075.4151.2433. 565.0%-9475.07622.43261.08146.1589.5855.8733.455.2%- 387.30-988.59933.47251.46120.0764.1433.095.4%-176.28- 229.99-392.9614354.31236.5383.8932.105.6%-103.55-114.01- 132.85-177.61-427.96203.4328.76
&"Times New Roman,斜體"&10Attachment 2. Valuation FCFE Financial Statements - DEDeere & Company's Income Statementsfor the Years Ended October 31 (Dollars in Thousands, except per share data)Common-Size Analysis2014201320122011201020142013201220112010Morni ng Star (Non-Adjusted)Check Revenue36,066,90037,795,40036,157,10032,012,50026,004,600 100.00%100.00%100.00%100.00%100.00%36066900377954003 6157100320125002600460000000Cost of revenue24,775,80025,667,30025,129,80022,034,40017,742,8006 8.69%67.91%69.50%68.83%68.23%24775800256673002512980 0220344001774280000000 Gross profit11,291,10012,128,10011,027,3009,978,1008,261,80031.31 %32.09%30.50%31.17%31.77%11291100121281001102730099 78100826180000000Research and development1,452,0001,477,3001,433,6001,226,2001,052,4004. 03%3.91%3.96%3.83%4.05%1452000147730014336001226200 105240000000Sales, General and administrative3,608,4003,952,5003,662,0003,361,7002,968,700 10.00%10.46%10.13%10.50%11.42%3608400395250036620003 361700296870000000Other operating expenses769,300473,6001,197,3001,167,4001,215,5002.13%1.2 5%3.31%3.65%4.67%76930047360011973001167400121550000 000 Total operating expenses5,829,7005,903,4006,292,9005,755,3005,236,60016.16 %15.62%17.40%17.98%20.14%58297005903400629290057553 00523660000000 EBIT= Operating income5,461,4006,224,7004,734,4004,222,8003,025,20015.14% 16.47%13.09%13.19%11.63%5461400622470047344004222800 302520000000Interest Expense664,000741,300782,800759,400811,4001.84%1.96%2.1 6%2.37%3.12%66400074130078280075940081140000000Other income (expense)-7,600100779,400768,000822,100- 0.02%0.00%2.16%2.40%3.16%782800759400811400-7600100- 3400860010700 Net interest income -671,600-741,200-
3,4008,60010,700-1.86%-1.96%-0.01%0.03%0.04%-664000- 741300000-7600100-3400860010700 Income before taxes4,789,8005,483,5004,731,0004,231,4003,035,90013.28%14 .51%13.08%13.22%11.67%479740054834004734400422280030 25200-7600100-3400860010700Provision for income taxes1,626,5001,945,9001,659,4001,423,6001,161,6004.51%5.1 5%4.59%4.45%4.47%16265001945900165940014236001161600 00000Other income000000.00%0.00%0.00%0.00%0.00%- 7600100-34008600107007600-1003400-8600-10700 Net income from continuing operations3,163,3003,537,6003,071,6002,807,8001,874,3008.77 %9.36%8.50%8.77%7.21%316330035376003071600280780018 7430000000Other-1,600-300-6,900-7,900-9,300-0.00%-0.00%- 0.02%-0.02%-0.04%-1600-300-6900-7900-930000000 Net income3,161,7003,537,3003,064,7002,799,9001,865,0008.77%9 .36%8.48%8.75%7.17%316170035373003064700279990018650 0000000Earnings per share: Basic8.719.187.726.714.4 Diluted8.639.097.636.634.35Sales growth rate- 4.57%4.53%12.95%23.10%Marginal tax rate33.90%35.60%35.00%33.40%41.00%ValueLineDeere & Company's Balance Sheetfor the Years Ended October 31 (Dollars in Thousands)Common-Size Analysis - Divided by Sales2014201320122011201020142013201220112010Morning Star (Non-Adjusted)Check Cash and cash equivalents3,787,0003,504,0004,652,2003,647,2003,790,60010. 50%9.27%12.87%11.39%14.58%3787000350400046522003647 200379060000000Short-term investments1,215,1001,624,8001,470,400787,300227,9003.37% 4.30%4.07%2.46%0.88%12151001624800147040078730022790 000000 Total Cash5,002,1005,128,8006,122,6004,434,5004,018,50013.87%13 .57%16.93%13.85%15.45%500210051288006122600443450040 1850000000Receivables3,277,6003,758,2003,799,1003,294,500 24,349,1009.09%9.94%10.51%10.29%93.63%327760037582003 79910032945002434910000000Inventories4,209,7004,934,7005, 170,0004,370,6003,063,00011.67%13.06%14.30%13.65%11.78
%4209700493470051700004370600306300000000Other current assets33,555,00031,281,00027,627,30024,207,1001,936,20093.0 4%82.76%76.41%75.62%7.45%33555000312810002762730024 207100193620000000 Total current assets46,044,40045,102,70042,719,00036,306,70033,366,80012 7.66%119.33%118.15%113.41%128.31%4604440045102700427 19000363067003336680000000Gross property, plant and equipment15,344,50011,126,00012,838,80011,658,3008,690,70 042.54%29.44%35.51%36.42%33.42%153445001112600012838 80011658300869070000000Accumulated Depreciation- 5,751,200-5,659,100-5,299,100-5,156,000-4,900,000-15.95%- 14.97%-14.66%-16.11%-18.84%-5751200-5659100-5299100- 5156000-490000000000 Net property, plant and equipment9,593,3005,466,9007,539,7006,502,3003,790,70026.6 0%14.46%20.85%20.31%14.58%9593300546690075397006502 300379070000000Equity and other investments303,200221,400215,000201,700244,5000.84%0.59% 0.59%0.63%0.94%30320022140021500020170024450000000Go odwill791,200844,800921,200999,800998,6002.19%2.24%2.55 %3.12%3.84%79120084480092120099980099860000000Intangi ble assets68,80077,100105,000127,400117,0000.19%0.20%0.29%0. 40%0.45%688007710010500012740011700000000Deferred income taxes2,776,6002,325,4003,280,4002,858,6002,477,1007.70%6.1 5%9.07%8.93%9.53%27766002325400328040028586002477100 00000Prepaid pension benefit262,000551,10020,20030,400146,7000.73%1.46%0.06%0 .09%0.56%262000551100202003040014670000000Other long- term assets1,496,9004,931,9001,465,3001,180,5002,125,4004.15%13 .05%4.05%3.69%8.17%149690049319001465300118050021254 0000000 Total assets61,336,40059,521,30056,265,80048,207,40043,266,80017 0.06%157.48%155.61%150.59%166.38%6133640059521300562 65800482074004326680000000Short-term
debt12,577,70012,898,0009,967,3009,629,7007,534,50034.87% 34.13%27.57%30.08%28.97%1257770012898000996730096297 00753450000000Accounts payable2,481,0002,351,0002,383,0000.00%0.00%6.86%7.34%9. 16%24810002351000238300000000Deferred income taxes144,3000.00%0.00%0.00%0.00%0.55%14430000000Taxes payable166,000154,0000.00%0.00%0.00%0.52%0.59%1660001 5400000000Accrued liabilities3,712,0004,571,0003,817,7000.00%0.00%10.27%14.2 8%14.68%37120004571000381770000000Deferred revenues452,000345,0000.00%0.00%1.25%1.08%0.00%4520003 4500000000Other current liabilities8,655,1009,080,5002,479,100489,500330,50024.00%2 4.03%6.86%1.53%1.27%86551009080500247910048950033050 000000 Total current liabilities21,232,80021,978,50019,091,40017,552,20014,364,00 058.87%58.15%52.80%54.83%55.24%212328002197850019091 400175522001436400000000Long-term debt24,380,70021,577,70022,453,10016,959,90016,814,50067.6 0%57.09%62.10%52.98%64.66%2438070021577700224531001 69599001681450000000Deferred taxes liabilities160,900160,3000.45%0.42%0.00%0.00%0.00%160900 16030000000Pensions and other benefits6,496,5005,416,7007,694,8006,712,1005,784,90018.01 %14.33%21.28%20.97%22.25%64965005416700769480067121 00578490000000Minority interest2,9001,90019,90014,60013,1000.01%0.01%0.06%0.05% 0.05%2900190019900146001310000000Other long-term liabilities120,400164,500168,3000.00%0.32%0.45%0.53%0.00 %12040016450016830000000 Total non-current liabilities31,041,00027,277,00030,332,30023,854,90022,612,50 086.07%72.17%83.89%74.52%86.96%310410002727700030332 300238549002261250000000Common stock3,675,4003,524,2003,352,2003,251,7003,106,30010.19%9. 32%9.27%10.16%11.95%36754003524200335220032517003106 30000000Retained
earnings22,004,40019,645,60016,875,20014,519,40012,353,100 61.01%51.98%46.67%45.36%47.50%2200440019645600168752 00145194001235310000000Treasury stock-12,834,200- 10,210,900-8,813,800-7,292,800-5,789,500-35.58%-27.02%- 24.38%-22.78%-22.26%-12834200-10210900-8813800- 7292800-578950000000Accumulated other comprehensive income-3,783,000-2,693,100-4,571,500-3,678,000-3,379,600- 10.49%-7.13%-12.64%-11.49%-13.00%-3783000-2693100- 4571500-3678000-337960000000 Total stockholders' equity9,062,60010,265,8006,842,1006,800,3006,290,30025.13% 27.16%18.92%21.24%24.19%9062600102658006842100680030 0629030000000 Total liabilities and stockholders' equity61,336,40059,521,30056,265,80048,207,40043,266,80017 0.06%157.48%155.61%150.59%166.38%6133640059521300562 65800482074004326680000000check0.000.000.000.000.00Deer e & Company's Consolidated Statement of Cash Flowsfor the Years Ended October 31 (Dollars in Thousands)Common-Size Analysis - Divided by Sales2014201320122011201020142013201220112010Morning Star (Non-Adjusted)Check Net income3,163,3003,537,6003,071,6002,807,8001,874,3008.77%9 .36%8.50%8.77%7.21%316335383072280818743160137353406 2306852828049921872426Cash Flows From Operating Activities: Depreciation & amortization1,306,5001,140,3001,004,200914,900914,8003.62% 3.02%2.78%2.86%3.52%13065001140300100420091490091480 000000 Investment/asset impairment charges95,900102,00033,40027,2000.27%0.27%0.09%0.00%0.1 0%95900102000334002720000000 Deferred income taxes- 280,100-172,600-91,800175,000-0.78%-0.46%- 0.25%0.00%0.67%-280100-172600-9180017500000000 Stock based compensation78,50080,70074,50069,00071,2000.22%0.21%0.21 %0.22%0.27%785008070074500690007120000000 Inventory- 297,900-728,400-1,510,200-1,730,500-1,052,700-0.83%-1.93%- 4.18%-5.41%-4.05%-297900-728400-1510200-1730500-
105270000000 Income taxes payable342,60080,400- 72,3001,20022,1000.95%0.21%- 0.20%0.00%0.08%34260080400-7230012002210000000 Other working capital-699,100-815,300-1,115,000973,400-197,000- 1.94%-2.16%-3.08%3.04%-0.76%-699100-815300- 1115000973400-19700000000 Other non-cash items- 183,80029,600-226,700-709,500447,300-0.51%0.08%-0.63%- 2.22%1.72%-18380029600-226700-70950044730000000 Net cash provided by operating activities3,525,9003,254,3001,167,7002,326,3002,282,2009.78 %8.61%3.23%7.27%8.78%352590032543001167700232630022 8220000000Cash Flows From Investing Activities: Investments in property, plant, and equipment-2,659,300- 2,375,300-2,121,000-1,680,800-1,312,800-7.37%-6.28%-5.87%- 5.25%-5.05%-2659300-2375300-2121000-1680800- 131280000000 Property, plant, and equipment reductions1,091,500936,700799,500683,400714,2003.03%2.48 %2.21%2.13%2.75%109150093670079950068340071420000000 Acquisitions, net345,800-61,50030,200850,300-10,6000.96%- 0.16%0.08%2.66%-0.04%345800-6150030200850300- 1060000000 Purchases of investments-17,855,000-18,038,000- 922,200-586,900-12,557,300-49.51%-47.73%-2.55%-1.83%- 48.29%-17855000-18038000-922200-586900-1255730000000 Sales/Maturities of investments1,022,500843,900240,30032,40011,091,8002.84%2. 23%0.66%0.10%42.65%102250084390024030032400110918000 0000 Other investing activities15,173,50013,873,500- 2,030,900-1,919,100-34,40042.07%36.71%-5.62%-5.99%- 0.13%1517350013873500-2030900-1919100-3440000000 Net cash used for investing activities-2,881,000-4,820,700- 4,004,100-2,620,700-2,109,100-7.99%-12.75%-11.07%-8.19%- 8.11%-2881000-4820700-4004100-2620700-210910000000Cash Flows From Financing Activities: Debt issued8,232,0004,734,00010,642,0005,655,0002,621,10022.82% 12.53%29.43%17.66%10.08%8232000473400010642000565500 0262110000000 Debt repayment-5,209,100-4,958,500-
5,396,000-3,220,800-3,675,700-14.44%-13.12%-14.92%- 10.06%-14.13%-5209100-4958500-5396000-3220800- 367570000000 Common stock issued149,500174,50061,000170,000129,1000.41%0.46%0.17% 0.53%0.50%1495001745006100017000012910000000 Common stock repurchased-2,731,100-1,531,400-1,587,700- 1,667,000-358,800-7.57%-4.05%-4.39%-5.21%-1.38%-2731100- 1531400-1587700-1667000-35880000000 Dividend paid- 786,000-752,900-697,900-593,100-483,500-2.18%-1.99%- 1.93%-1.85%-1.86%-786000-752900-697900-593100- 48350000000 Other financing activities56,4002,740,800858,800- 204,500758,1000.16%7.25%2.38%- 0.64%2.92%564002740800858800-20450075810000000 Net cash provided by (used for) financing activities- 288,300406,5003,880,200139,600-1,009,700- 0.80%1.08%10.73%0.44%-3.88%- 2883004065003880200139600-100970000000 Effect of exchange rate changes-73,60011,700-38,80011,400-24,500- 0.20%0.03%-0.11%0.04%-0.09%-7360011700-3880011400- 2450000000 Net change in cash283,000-1,148,2001,005,000- 143,400-861,1000.78%-3.04%2.78%-0.45%-3.31%283000- 11482001005000-143400-86110000000 Cash at beginning of period3,504,0004,652,2003,647,2003,790,6004,651,7009.72%12 .31%10.09%11.84%17.89%350400046522003647200379060046 5170000000 Cash at end of period3,787,0003,504,0004,652,2003,647,2003,790,60010.50%9 .27%12.87%11.39%14.58%378700035040004652200364720037 9060000000Free Cash Flow Operating cash flow3,525,9003,254,3001,167,7002,326,3002,282,200 Capital expenditure-2,659,300-2,375,300-2,121,000-1,680,800- 1,312,800 Free cash flow866,600879,000- 953,300645,500969,40020142013201220112010Working capital36,174,20034,397,40032,124,50027,596,90026,453,700W C/Sales100.30%91.01%88.85%86.21%101.73%change in WC1,776,8002,272,9004,527,6001,143,200change in
WC/Sales4.93%6.01%12.52%3.57%Cap Exp5,432,900- 932,5002,041,6003,626,500Cap Exp/Sales15.06%- 2.47%5.65%11.33%Depreciation expenses1,306,5001,140,3001,004,200914,900Depreciation expenses/Sales3.62%3.02%2.78%2.86%Other assets1,496,9004,931,9001,465,3001,180,5002,125,400Other assets/Sales4.15%13.05%4.05%3.69%change in OA- 3,435,0003,466,600284,800-944,900change in OA/Sales- 9.52%9.17%0.79%- 2.95%Dividends2.221.991.791.52EPS8.639.087.646.63Retentio n ratio (RR)74.28%78.08%76.57%77.07%Invested capital (IC)48,124,40045,718,10042,155,70036,406,90033,485,400NOP LAT=EBIT(1-tax rate)3,156,6285,130,2332,652,0102,276,272ROIC=NOPLAT/IC 6.90%12.17%7.28%6.80%g=RR*ROIC5.13%9.50%5.58%5.24% Financial Statements - CATCaterpillar Inc.'s Income Statementsfor the Years Ended October 31 (Dollars in Millions, except per share data)Common-Size Analysis2014201320122011201020142013201220112010Morni ng Star (Non-Adjusted)Check Revenue55,18455,65665,87560,13842,588100.00%100.00%100. 00%100.00%100.00%551845565665875601384258800000Cost of revenue39,76740,72747,05543,57830,36772.06%73.18%71.43% 72.46%71.30%397674072747055435783036700000 Gross profit15,41714,92918,82016,56012,22127.94%26.82%28.57%27 .54%28.70%154171492918820165601222100000Research and development2,1352,0462,4662,2971,9053.87%3.68%3.74%3.82 %4.47%2135204624662297190500000Sales, General and administrative5,6975,5475,9195,2034,24810.32%9.97%8.99%8. 65%9.97%5697554759195203424800000Other operating expenses2,2571,7081,8621,9072,1054.09%3.07%2.83%3.17%4. 94%2257170818621907210500000 Total operating expenses10,0899,30110,2479,4078,25818.28%16.71%15.56%15 .64%19.39%100899301102479407825800000 EBIT= Operating
income5,3285,6288,5737,1533,9639.65%10.11%13.01%11.89% 9.31%5328562885737153396300000Interest Expense4844654673963430.88%0.84%0.71%0.66%0.81%48446 546739634300000Other income (expense)239-35130- 321300.43%-0.06%0.20%-0.05%0.31%239-35130-3213000000 Net interest income -245-500-337-428-213-0.44%-0.90%- 0.51%-0.71%-0.50%-245-500-337-428-21300000 Income before taxes5,0835,1288,2366,7253,7509.21%9.21%12.50%11.18%8.8 1%5083512882366725375000000Provision for income taxes1,3801,3192,5281,7209682.50%2.37%3.84%2.86%2.27%1 38013192528172096800000Other income8-614-24-240.01%- 0.01%0.02%-0.04%-0.06%8-614-24-2400000 Net income from continuing operations3,7113,8035,7224,9812,7586.72%6.83%8.69%8.28%6 .48%3711380357224981275800000Other-16-14-41-53-58- 0.03%-0.03%-0.06%-0.09%-0.14%-16-14-41-53-5800000 Net income3,6953,7895,6814,9282,7006.70%6.81%8.62%8.19%6.34 %3695378956814928270000000Earnings per share: Basic8.719.187.726.714.4 Diluted8.639.097.636.634.35Sales growth rate-0.85%-15.51%9.54%41.21%Marginal tax rate27.10%25.80%30.60%25.70%26.00%ValueLineCaterpillar Inc.'s Balance Sheetfor the Years Ended October 31 (Dollars in Millions)Common-Size Analysis - Divided by Sales2014201320122011201020142013201220112010Morning Star (Non-Adjusted)Check Cash and cash equivalents7,3416,0815,4903,0573,59213.30%10.93%8.33%5.0 8%8.43%7341608154903057359200000 Total Cash7,3416,0815,4903,0573,59213.30%10.93%8.33%5.08%8.43 %7341608154903057359200000Receivables16,76417,17618,952 17,95316,79230.38%30.86%28.77%29.85%39.43%16764171761 8952179531679200000Inventories12,20512,62515,54714,5449,5 8722.12%22.88%28.17%26.36%17.37%12205126251554714544 958700000Deferred income taxes1,7391,5531,5471,5809313.15%2.81%2.80%2.86%1.69%1
73915531547158093100000Prepaid expenses8189009889949081.48%1.62%1.50%1.65%2.13%81890 098899490800000 Total current assets38,86738,33542,52438,12831,81070.43%68.88%64.55%63 .40%74.69%388673833542524381283181000000Gross property, plant and equipment31,57231,31629,93227,32624,90657.21%56.27%45.4 4%45.44%58.48%315723131629932273262490600000Accumula ted Depreciation-14,995-14,241-13,471-12,931-12,367-27.17%- 25.59%-20.45%-21.50%-29.04%-14995-14241-13471-12931- 1236700000 Net property, plant and equipment16,57717,07516,46114,39512,53930.04%30.68%24.9 9%23.94%29.44%165771707516461143951253900000Equity and other investments2572722721331640.47%0.49%0.41%0.22%0.39%25 727227213316400000Goodwill6,6946,9566,9427,0802,61412.13 %12.50%10.54%11.77%6.14%6694695669427080261400000Int angible assets3,0763,5964,0164,3688055.57%6.46%6.10%7.26%1.89%3 07635964016436880500000Deferred income taxes1,4045942,0112,1572,4932.54%1.07%3.05%3.59%5.85%1 40459420112157249300000Other long-term assets17,80618,06817,13015,18513,59532.27%32.46%26.00%25 .25%31.92%178061806817130151851359500000 Total assets84,68184,89689,35681,44664,020153.45%152.54%135.64 %135.43%150.32%846818489689356814466402000000Short- term debt11,50111,03112,3919,6487,98120.84%19.82%18.81%16.04 %18.74%1150111031123919648798100000Accounts payable6,5156,5606,7538,1615,85611.81%11.79%10.25%13.57 %13.75%6515656067538161585600000Accrued liabilities5,9865,1155,5785,7964,55010.85%9.19%8.47%9.64% 10.68%5986511555785796455000000Deferred revenues1,6972,3602,9782,6911,8313.08%4.24%4.52%4.47%4. 30%1697236029782691183100000Other current liabilities2,1782,2312,0552,2651,8023.95%4.01%3.12%3.77%4.
23%2178223120552265180200000 Total current liabilities27,87727,29729,75528,56122,02050.52%49.05%45.17 %47.49%51.70%278772729729755285612202000000Long-term debt27,78426,71927,75224,94420,43750.35%48.01%42.13%41. 48%47.99%277842671927752249442043700000Pensions and other benefits8,9636,97311,08510,9567,58416.24%12.53%16.83%18. 22%17.81%896369731108510956758400000Minority interest80675046400.14%0.12%0.08%0.08%0.09%80675046400 0000Other long-term liabilities3,2313,0293,1824,0563,1155.85%5.44%4.83%6.74%7. 31%3231302931824056311500000 Total non-current liabilities40,05836,78842,06940,00231,17672.59%66.10%63.86 %66.52%73.20%400583678842069400023117600000Common stock5,0164,7094,4814,2733,8889.09%8.46%6.80%7.11%9.13% 5016470944814273388800000Retained earnings33,88731,85429,55825,21921,38461.41%57.23%44.87 %41.94%50.21%338873185429558252192138400000Treasury stock-15,726-11,854-10,074-10,281-10,397-28.50%-21.30%- 15.29%-17.10%-24.41%-15726-11854-10074-10281- 1039700000Accumulated other comprehensive income-6,431- 3,898-6,433-6,328-4,051-11.65%-7.00%-9.77%-10.52%-9.51%- 6431-3898-6433-6328-405100000 Total stockholders' equity16,74620,81117,53212,88310,82430.35%37.39%26.61%2 1.42%25.42%167462081117532128831082400000 Total liabilities and stockholders' equity84,68184,89689,35681,44664,020153.45%152.54%135.64 %135.43%150.32%846818489689356814466402000000check0. 000.000.000.000.00Caterpillar Inc.'s Consolidated Statement of Cash Flowsfor the Years Ended October 31 (Dollars in Millions)Common-Size Analysis - Divided by Sales2014201320122011201020142013201220112010Morning Star (Non-Adjusted)Check Net income3,7113,8035,7224,9812,7586.72%6.83%8.69%8.28%6.48 %3711380357224981275800000Cash Flows From Operating Activities: Depreciation &
amortization3,1633,0872,8132,5272,2965.73%5.55%4.27%4.20 %5.39%3163308728132527229600000 Investment/asset impairment charges00580000.00%0.00%0.88%0.00%0.00%58000000 Inventory1012,658-1,149-2,927-2,6670.18%4.78%-1.74%- 4.87%-6.26%1012658-1149-2927-266700000 Accounts payable222134-1,8681,5552,5700.40%0.24%- 2.84%2.59%6.03%222134-18681555257000000 Accrued liabilities891-1081833089641.61%- 0.19%0.28%0.51%2.26%891-10818330896400000 Other working capital-584135-849109-1,381-1.06%0.24%- 1.29%0.18%-3.24%-584135-849109-138100000 Other non- cash items553482-1914574691.00%0.87%- 0.29%0.76%1.10%553482-19145746900000 Net cash provided by operating activities8,05710,1915,2417,0105,00914.60%18.31%7.96%11.6 6%11.76%80571019152417010500900000Cash Flows From Investing Activities: Investments in property, plant, and equipment-1,840-1,924-1,726-1,409-1,011-3.33%-3.46%-2.62%- 2.34%-2.37%-1840-1924-1726-1409-101100000 Property, plant, and equipment reductions9048441,1171,3541,4691.64%1.52%1.70%2.25%3.45 %90484411171354146900000 Acquisitions, net169170581- 7,808-1,1260.31%0.31%0.88%-12.98%-2.64%169170581-7808- 112600000 Purchases of investments-825-402-12,412-336- 217-1.49%-0.72%-18.84%-0.56%-0.51%-825-402-12412-336- 21700000 Sales/Maturities of investments8104499,4332472281.47%0.81%14.32%0.41%0.54% 810449943324722800000 Other investing activities-2,845- 4,183-3,183-3,475-938-5.16%-7.52%-4.83%-5.78%-2.20%- 2845-4183-3183-3475-93800000 Net cash used for investing activities-3,627-5,046-6,190-11,427-1,595-6.57%-9.07%- 9.40%-19.00%-3.75%-3627-5046-6190-11427-159500000Cash Flows From Financing Activities: Debt issued10,6499,32816,01515,4608,32419.30%16.76%24.31%25.7 1%19.55%1064993281601515460832400000 Debt repayment-
9,248-10,870-11,099-10,593-12,461-16.76%-19.53%-16.85%- 17.61%-29.26%-9248-10870-11099-10593-1246100000 Common stock issued239128521232960.43%0.23%0.08%0.20%0.70%23912852 12329600000 Common stock repurchased-4,238-2,000-7.68%- 3.59%0.00%0.00%0.00%-4238-200000000 Dividend paid- 1,627-1,124-1,623-1,162-1,084-2.95%-2.02%-2.46%-1.93%- 2.55%-1627-1124-1623-1162-108400000 Other financing activities1,229272041383122.23%0.05%0.31%0.23%0.73%1229 2720413831200000 Net cash provided by (used for) financing activities-2,996-4,5113,5493,966-4,613-5.43%- 8.11%5.39%6.59%-10.83%-2996-451135493966-461300000 Effect of exchange rate changes-174-43-167-84-76-0.32%- 0.08%-0.25%-0.14%-0.18%-174-43-167-84-7600000 Net change in cash1,2605912,433-535-1,2752.28%1.06%3.69%- 0.89%-2.99%12605912433-535-127500000 Cash at beginning of period6,0815,4903,0573,5924,86711.02%9.86%4.64%5.97%11. 43%6081549030573592486700000 Cash at end of period7,3416,0815,4903,0573,59213.30%10.93%8.33%5.08%8. 43%7341608154903057359200000Free Cash Flow Operating cash flow8,05710,1915,2417,0105,009 Capital expenditure- 3,379-4,446-5,076-3,924-2,586 Free cash flow4,6785,7451653,0862,423 Beta Estimation - DEMonthDeereMarketRetRm10/1/0945.551036.1911/2/0953.51 1095.6317.48%5.74%12/1/0954.091115.101.08%1.78%1/4/1049 .951073.87-7.65%- 3.70%2/1/1057.31104.4914.71%2.85%3/1/1059.461169.433.77 %5.88%4/1/1059.821186.690.61%1.48%5/3/1057.681089.41- 3.58%-8.20%6/1/1055.681030.71-3.47%- 5.39%7/1/1066.681101.6019.76%6.88%8/2/1063.271049.33- 5.11%- 4.74%9/1/1069.781141.2010.29%8.76%10/1/1076.81183.2610.0 6%3.69%11/1/1074.71180.55-2.73%- 0.23%12/1/1083.051257.6411.18%6.53%1/3/1190.91286.129.45
%2.26%2/1/1190.151327.22- 0.83%3.20%3/1/1196.891325.837.48%- 0.10%4/1/1197.51363.610.63%2.85%5/2/1186.081345.20- 11.71%-1.35%6/1/1182.451320.64-4.22%- 1.83%7/1/1178.511292.28-4.78%- 2.15%8/1/1180.821218.892.94%-5.68%9/1/1164.571131.42- 20.11%- 7.18%10/3/1175.91253.3017.55%10.77%11/1/1179.251246.964. 41%-0.51%12/1/1177.351257.60- 2.40%0.85%1/3/1286.151312.4111.38%4.36%2/1/1282.931365. 68-3.74%4.06%3/1/1280.91408.47- 2.45%3.13%4/2/1282.361397.911.80%- 0.75%5/1/1273.871310.33-10.31%- 6.27%6/1/1280.871362.169.48%3.96%7/2/1276.821379.32- 5.01%1.26%8/1/1275.111406.58- 2.23%1.98%9/4/1282.471440.679.80%2.42%10/1/1285.441412. 163.60%-1.98%11/1/1284.051416.18- 1.63%0.28%12/3/1286.421426.192.82%0.71%1/2/1394.061498. 118.84%5.04%2/1/1387.831514.68- 6.62%1.11%3/1/1385.981569.19- 2.11%3.60%4/1/1389.31597.573.86%1.81%5/1/1387.111630.74- 2.45%2.08%6/3/1381.251606.28-6.73%- 1.50%7/1/1383.071685.732.24%4.95%8/1/1383.641632.970.69 %-3.13%9/3/1381.391681.55- 2.69%2.97%10/1/1381.841756.540.55%4.46%11/1/1384.241805 .812.93%2.80%12/2/1391.331848.368.42%2.36%1/2/1485.9617 82.59-5.88%-3.56%2/3/1485.931859.45- 0.03%4.31%3/3/1490.81872.345.67%0.69%4/1/1493.341883.95 2.80%0.62%5/1/1491.171923.57-2.32%2.10%Systematic Risk0.0301642166/2/1490.551960.23-0.68%1.91%Unsystematic Risk0.03631081927/1/1485.111930.67-6.01%-1.51%Total Risk0.06647503538/1/1484.092003.37- 1.20%3.77%9/2/1481.991972.29-2.50%-1.55%Systematic Risk 45.38%= R Square10/1/1485.542018.054.33%2.32%Unsystematic Risk 54.62%Std Dev.25.78%13.15%Total Risk100.00%SUMMARY
OUTPUTRegression StatisticsMultiple R0.6736227301R Square0.4537675825Adjusted R Square0.4443497822Standard Error0.0554803778Observations60ANOVAdfSSMSFSignificanc e FRegression10.14830739560.148307395648.18190744090.0000 000037Residual580.17852819450.0030780723Total590.326835 5901CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept- 0.00245225060.0075107446-0.32649899890.7452221226- 0.01748663920.012582138-0.01748663920.012582138X Variable 11.32103165360.19031421576.94131885460.00000000370.9400 7636371.70198694360.94007636371.7019869436Smoothing Beta1.2150912079Unlevered Beta0.5064003156Industry Beta0.6874932603Relevered Beta1.649617882120142013201220112010Total debt ratio0.8522425290.82752305910.8784124840.85898020990.854 5773915Consistent Variance:0.03%Interest-bearing debt43,454,900.00Market cap (10/31/2014)31051020.00 Beta Estimation - CATDateCATMarketRetRm12/1/0956.991115.11/4/1052.241073 .87-8.33%- 3.70%2/1/1057.051104.499.21%2.85%3/1/1062.851169.4310.17 %5.88%4/1/1068.091186.698.34%1.48%5/3/1060.761089.41- 10.77%-8.20%6/1/1060.071030.71-1.14%- 5.39%7/1/1069.751101.616.11%6.88%8/2/1065.161049.33- 6.58%- 4.74%9/1/1078.681141.220.75%8.76%10/1/1078.61183.26- 0.10%3.69%11/1/1084.61180.557.63%- 0.23%12/1/1093.661257.6410.71%6.53%1/3/1197.011286.123.5 8%2.26%2/1/11102.931327.226.10%3.20%3/1/11111.351325.83 8.18%- 0.10%4/1/11115.411363.613.65%2.85%5/2/11105.81345.2- 8.33%-1.35%6/1/11106.461320.640.62%- 1.83%7/1/1198.791292.28-7.20%-2.15%8/1/11911218.89- 7.89%-5.68%9/1/1173.841131.42-18.86%-
7.18%10/3/1194.461253.327.93%10.77%11/1/1197.881246.963. 62%-0.51%12/1/1190.61257.6- 7.44%0.85%1/3/12109.121312.4120.44%4.36%2/1/12114.21136 5.684.66%4.06%3/1/12106.521408.47- 6.73%3.13%4/2/12102.771397.91-3.52%- 0.75%5/1/1287.621310.33-14.74%-6.27%6/1/1284.911362.16- 3.09%3.96%7/2/1284.211379.32- 0.82%1.26%8/1/1285.331406.581.33%1.98%9/4/1286.041440.6 70.83%2.42%10/1/1284.811412.16-1.43%- 1.98%11/1/1285.241416.180.51%0.28%12/3/1289.611426.195.1 3%0.71%1/2/1398.391498.119.80%5.04%2/1/1392.371514.68- 6.12%1.11%3/1/1386.971569.19- 5.85%3.60%4/1/1384.671597.57- 2.64%1.81%5/1/1385.81630.741.33%2.08%6/3/1382.491606.28- 3.86%- 1.50%7/1/1382.911685.730.51%4.95%8/1/1382.541632.97- 0.45%- 3.13%9/3/1383.41681.551.04%2.97%10/1/1383.361756.54- 0.05%4.46%11/1/1384.61805.811.49%2.80%12/2/1390.811848. 367.34%2.36%1/2/1493.911782.593.41%- 3.56%2/3/1496.971859.453.26%4.31%3/3/1499.371872.342.47 %0.69%4/1/14105.41883.956.07%0.62%5/1/14102.231923.57- 3.01%2.10%6/2/14108.671960.236.30%1.91%7/1/14100.751930 .67-7.29%-1.51%Systematic Risk0.04695836198/1/14109.072003.378.26%3.77%Unsystemati c Risk0.03855283219/2/1499.031972.29-9.21%-1.55%Total Risk0.08551119410/1/14101.412018.052.40%2.32%11/3/14100. 62067.56-0.80%2.45%Systematic Risk 54.91%= R Square12/1/1491.532058.9-9.02%-0.42%Unsystematic Risk 45.09%Std Dev.29.24%13.01%Total Risk100.00%SUMMARY OUTPUTRegression StatisticsMultiple R0.7410456868R Square0.54914871Adjusted R Square0.5413754119Standard Error0.0571675433Observations60ANOVAdfSSMSFSignificanc e FRegression10.23087861260.230878612670.64552300460Resid ual580.18955142470.003268128Total590.4204300373Coefficie
ntsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept-0.00693780340.0076934146- 0.90178468270.3709009326-0.02233784580.0084622389- 0.02233784580.0084622389X Variable 11.66534383450.19813517888.405089113401.2687331862.0619 544831.2687331862.061954483Smoothing Beta1.4457803691Unlevered Beta0.868586204920142013201220112010Total debt ratio0.80224607650.75486477570.80379605170.8418215750.83 09278351Inconsistent Interest-bearing debt51479Market cap (12/31/2014)56474.01 Financial Statements - DE OLDDeere & Company's Income Statementsfor the Years Ended October 31 (Dollars in Millions, except per share data)Common-Size Analysis2014201320122011201020142013201220112010Morni ng Star (Non-Adjusted)Check Revenue3606737795361573201226005100.00%100.00%100.00 %100.00%100.00%360673779536157320122600500000Cost of revenue247762566725130220341774368.69%67.91%69.50%68. 83%68.23%247762566725130220341774300000 Gross profit1129112128110279978826231.31%32.09%30.50%31.17% 31.77%1129112128110279978826200000Research and development145214771434122610524.03%3.91%3.97%3.83%4. 05%1452147714341226105200000Sales, General and administrative3608395236623362296910.00%10.46%10.13%10. 50%11.42%3608395236623362296900000Other operating expenses7694741197116712162.13%1.25%3.31%3.65%4.68%76 947411971167121600000 Total operating expenses5829590362935755523716.16%15.62%17.40%17.98%2 0.14%58305903629357555237-10000 EBIT= Operating income5462622547344223302515.14%16.47%13.09%13.19%11. 63%5461622547344223302510000Interest Expense6647417837598111.84%1.96%2.17%2.37%3.12%66474 178375981100000Other income (expense)007837598110.00%0.00%2.17%2.37%3.12%78375981 100000 Net interest income -664-741000-1.84%-
1.96%0.00%0.00%0.00%-664-74100000000 Income before taxes4798548447344223302513.30%14.51%13.09%13.19%11.6 3%4797548347344223302511000Provision for income taxes162619461659142411624.51%5.15%4.59%4.45%4.47%162 6194616591424116200000Other income-80-3911-0.02%0.00%- 0.01%0.03%0.04%-80-391100000 Net income from continuing operations316435383072280818748.77%9.36%8.50%8.77%7.21 %3163353830722808187410000Other-20-7-8-9-0.01%0.00%- 0.02%-0.02%-0.03%-20-7-8-900000 Net income316235383065280018658.77%9.36%8.48%8.75%7.17%3 162353730652800186501000Earnings per share: Basic8.719.187.726.714.4 Diluted8.639.097.636.634.35Sales growth rate-4.57%4.53%12.95%23.10%Marginal tax rate33.90%35.60%35.00%33.40%41.00%ValueLineDeere & Company's Balance Sheetfor the Years Ended October 31 (Dollars in Millions)Common-Size Analysis - Divided by Sales2014201320122011201020142013201220112010Morning Star (Non-Adjusted)Check Cash and cash equivalents3787350446523647379110.50%9.27%12.87%11.39% 14.58%3787350446523647379100000Short-term investments1215162514707872283.37%4.30%4.07%2.46%0.88 %12151625147078722800000 Total Cash5002512961224434401913.87%13.57%16.93%13.85%15.4 5%5002512961234434401800- 101Receivables3278375837993294243499.09%9.94%10.51%10. 29%93.63%32783758379932942434900000Inventories42104935 51704371306311.67%13.06%14.30%13.65%11.78%4210493551 704371306300000Other current assets33555312812762724207193693.04%82.76%76.41%75.62 %7.44%33555312812762724207193600000 Total current assets4604545103427183630633367127.67%119.34%118.15%1 13.41%128.31%460444510342719363073336710-1-10Gross property, plant and equipment15344111261283911658869142.54%29.44%35.51%36 .42%33.42%15344111261283911658869100000Accumulated
Depreciation-5751-5659-5299-5156-4900-15.95%-14.97%- 14.66%-16.11%-18.84%-5751-5659-5299-5156-490000000 Net property, plant and equipment9593546775406502379126.60%14.46%20.85%20.31% 14.58%9593546775406502379100000Equity and other investments3032212152022440.84%0.58%0.59%0.63%0.94%30 322121520224400000Goodwill79184592110009992.19%2.24%2 .55%3.12%3.84%791845921100099900000Intangible assets69771051271170.19%0.20%0.29%0.40%0.45%697710512 711700000Deferred income taxes277723253280285924777.70%6.15%9.07%8.93%9.53%277 7232532802859247700000Prepaid pension benefit26255120301470.73%1.46%0.06%0.09%0.57%26255120 3014700000Other long-term assets149749321465118021254.15%13.05%4.05%3.69%8.17%1 497493214651180212500000 Total assets6133759521562644820643267170.06%157.48%155.61%1 50.59%166.38%613365952156266482074326710-2-10Short- term debt125781289899679630753434.87%34.13%27.57%30.08%28. 97%125781289899679630753400000Accounts payable002481235123830.00%0.00%6.86%7.34%9.16%2481235 1238300000Deferred income taxes00001440.00%0.00%0.00%0.00%0.55%14400000Taxes payable0001661540.00%0.00%0.00%0.52%0.59%16615400000 Accrued liabilities003712457138180.00%0.00%10.27%14.28%14.68%37 124571381800000Deferred revenues0045234500.00%0.00%1.25%1.08%0.00%45234500000 Other current liabilities86559080247949033024.00%24.02%6.86%1.53%1.27 %86559080247949033000000 Total current liabilities212332197819091175531436358.87%58.15%52.80%5 4.83%55.23%21233219781909117552143640001-1Long-term debt243812157822453169601681467.60%57.09%62.10%52.98 %64.66%243812157822453169601681400000Deferred taxes
liabilities1611600000.45%0.42%0.00%0.00%0.00%1611600000 0Pensions and other benefits6496541776956712578518.01%14.33%21.28%20.97%2 2.25%6496541776956712578500000Minority interest322015130.01%0.01%0.06%0.05%0.05%3220151300000 Other long-term liabilities012016416800.00%0.32%0.45%0.52%0.00%12016416 800000 Total non-current liabilities310412727730332238552261286.06%72.17%83.89%7 4.52%86.95%310412727730332238552261200000Common stock3675352433523252310610.19%9.32%9.27%10.16%11.94% 3675352433523252310600000Retained earnings220041964616875145191235361.01%51.98%46.67%45. 35%47.50%220041964616875145191235300000Treasury stock- 12834-10211-8814-7293-5790-35.58%-27.02%-24.38%-22.78%- 22.26%-12834-10211-8814-7293-579000000Accumulated other comprehensive income-3782-2693-4572-3680-3377-10.49%- 7.13%-12.64%-11.50%-12.99%-3783-2693-4572-3678-3380100- 23 Total stockholders' equity90631026668416798629225.13%27.16%18.92%21.24%24 .20%90631026668426800629000-1-22 Total liabilities and stockholders' equity6133759521562644820643267170.06%157.48%155.61%1 50.59%166.38%613365952156266482074326710-2- 10check0.000.000.000.000.00Deere & Company's Consolidated Statement of Cash Flowsfor the Years Ended October 31 (Dollars in Millions)Common-Size Analysis - Divided by Sales2014201320122011201020142013201220112010Morning Star (Non-Adjusted)Check Net income316435383072280818748.77%9.36%8.50%8.77%7.21%3 163353830722808187410000Cash Flows From Operating Activities: Depreciation & amortization1306114010049159153.62%3.02%2.78%2.86%3.52 %13061140100491591500000 Investment/asset impairment charges9610233270.27%0.27%0.09%0.00%0.10%961023327000 00 Deferred income taxes-280-173-92175-0.78%-0.46%-
0.25%0.00%0.67%-280-173-9217500000 Stock based compensation78817469710.22%0.21%0.20%0.22%0.27%788174 697100000 Inventory-298-728-1510-1730-1053-0.83%-1.93%- 4.18%-5.40%-4.05%-298-728-1510-1730-105300000 Income taxes payable34380-721220.95%0.21%- 0.20%0.00%0.08%34380-7212200000 Other working capital- 699-815-1115973-197-1.94%-2.16%-3.08%3.04%-0.76%-699- 815-1115973-19700000 Other non-cash items-18430-227- 710447-0.51%0.08%-0.63%-2.22%1.72%-18430-227- 71044700000 Net cash provided by operating activities352632551167232622819.78%8.61%3.23%7.27%8.77 %3526325411682326228201-10-1Cash Flows From Investing Activities: Investments in property, plant, and equipment- 2659-2375-2121-1681-1313-7.37%-6.28%-5.87%-5.25%-5.05%- 2659-2375-2121-1681-131300000 Property, plant, and equipment reductions10929378006837143.03%2.48%2.21%2.13%2.75%10 9293780068371400000 Acquisitions, net346-6230850- 110.96%-0.16%0.08%2.66%-0.04%346-6230850-1100000 Purchases of investments-17855-18038-922-587-12557-49.51%- 47.73%-2.55%-1.83%-48.29%-17855-18038-922-587- 1255700000 Sales/Maturities of investments102284424032110922.83%2.23%0.66%0.10%42.65 %1022844240321109200000 Other investing activities1517413874-2031-1919-3442.07%36.71%-5.62%- 5.99%-0.13%1517413874-2031-1919-3400000 Net cash used for investing activities-2880-4820-4004-2622-2109-7.99%- 12.75%-11.07%-8.19%-8.11%-2881-4821-4004-2621-2109110- 10Cash Flows From Financing Activities: Debt issued82324734106425655262122.82%12.53%29.43%17.67%10 .08%82324734106425655262100000 Debt repayment-5209- 4958-5396-3221-3676-14.44%-13.12%-14.92%-10.06%-14.14%- 5209-4958-5396-3221-367600000 Common stock issued150174611701290.42%0.46%0.17%0.53%0.50%15017461 17012900000 Common stock repurchased-2731-1531-1588- 1667-359-7.57%-4.05%-4.39%-5.21%-1.38%-2731-1531-1588-
1667-35900000 Dividend paid-786-753-698-593-484-2.18%- 1.99%-1.93%-1.85%-1.86%-786-753-698-593-48400000 Other financing activities562741859-2047580.16%7.25%2.38%- 0.64%2.91%562741859-20475800000 Net cash provided by (used for) financing activities-2884073880140-1011- 0.80%1.08%10.73%0.44%-3.89%-2884063880140-10100100-1 Effect of exchange rate changes-7412-3911-24-0.21%0.03%- 0.11%0.03%-0.09%-7412-3911-2400000 Net change in cash284-11461004-145-8630.79%-3.03%2.78%-0.45%- 3.32%283-11481005-143-86112-1-2-2 Cash at beginning of period350446523647379146529.72%12.31%10.09%11.84%17.8 9%3504465236473791465200000 Cash at end of period3787350446523647379110.50%9.27%12.87%11.39%14.5 8%3787350446523647379100000Free Cash Flow Operating cash flow35263254116823262282 Capital expenditure-2659- 2375-2121-1681-1313 Free cash flow867879-953646969 Multiple EBITDA EBITDA CV 10 10 ´ = MultipleEBITDAEBITDACV 1010 g WACC ) RONIC / g 1 )( g
1 ( NOPLAT CV 10 10 10 - - + = gWACC )RONIC/g1)(g1(NOPLAT CV 1010 10 Valuation of Deere & Company I. COMPANY OVERVIEW Background Deere & Company was founded in 1837 by, blacksmith and inventor, John Deere. For over 135 years it has been symbolized by the yellow leaping deer trademark. Deere & Co. provides various types of equipment to customers around the globe; however, their six areas of focus are the United States and Canada, Europe, Brazil, Russia, India, and China. These focus areas provide Deere & Co. with a positive outlook on future sales as they will be the areas responsible for 75% of our world’s future growth.[footnoteRef:1] The company is comprised of three main business segments. The Agriculture and Turf segment provides agriculture and turf equipment such as utility tractors, loaders, and application equipment. It also supplies hay and forage equipment including mowers and golf
course equipment. The Construction and Forestry segment supplies equipment such as backhoe loaders, articulated dump trucks, and log skidders. Lastly, the Financial Services segment provides support in financing sales and leases of various types of new and used equipment.[footnoteRef:2] [1: John Deere website-About us, http://www.deere.com/en_US/corporate/our_company/about_us/ ] [2: Yahoo Finance-DE, http://finance.yahoo.com/q/pr?s=DE+Profile] Awards and Recognition Throughout its existence, Deere & Company has prided itself on several key values, integrity, quality, commitment and innovation.[footnoteRef:3] In maintaining these values, the company has recently been acknowledged for its achievements by receiving several awards. [3: John Deere website-About us, http://www.deere.com/en_US/corporate/our_company/about_us/ ] · 30 April 2015 – United Way Worldwide recognized Deere as one of two companies for their excellent employee engagement. They were given this honor through their overall participation of more than 2,000 employees during United Way’s Day of Caring in 2014. · 27 April 2015 – Deere & Co. received the Dealer’s Choice Award for Full-line Manufacturers from the North American Equipment Dealers Association. They received this recognition for their exemplary performance in 12 operational categories. · 9 March 2015 – The Ethisphere Institute recognized Deere & Co. as being among the World’s Most Ethical Companies for the ninth consecutive year for their ethical company culture and transparency. · 12 November 2014 – The 2014 Global List of Top Companies for Leadership listed Deere & Co. as 16th in the world and 10th of the companies based in North America for their ability to cultivate a strong leadership environment. This was the third
consecutive time that the company earned a spot on this list. · 28 February 2013 – Deere & Co. was ranked 40th on FORTUNE magazine’s Top 50 Most Admired Companies list, which was created through an assessment of over 1,400 companies worldwide.[footnoteRef:4] [4: John Deere website- News & Media, http://www.deere.com/en_US/corporate/our_company/news_and _media] Recent News It was announced on April 20, 2015 that “John Deere Power Solution s will extend its generator drive power solutions with the introduction of four new PowerTech™ prime power generator drive engines”. These innovative engines meet the Final Tier 4 emissions regulations set by the U.S Environmental Protection Agency. Therefore, they allow more options to customers, especially those with space-constrained installations. The engines were showcased on April 20-25 in Paris at the INTERMAT.[footnoteRef:5] [5: John Deere website-News & Media, http://www.deere.com/en_US/corporate/our_company/news_and _media/ press_releases/2015/engines- drivetrain/2015apr20-new-engine- lineup.page]
On April 1, 2015, Deere announced its expansion of its 6M and 6R Series Tractors for the 2015 model. This expansion will “offer producers a wider range of horsepower, frame sizes, transmissions, hydraulics and other options”.[footnoteRef:6] On the same date, Deere & Co. announced that its L-Series Skidders will be entering the market. This new equipment provides “features that promise to increase uptime and productivity, while lowering daily operating costs for loggers”.[footnoteRef:7] [6: John Deere website-News & Media, http://www.deere.com/en_US/corporate/our_company/news_and _media/ press_releases/2015/agriculture/2015april1-6M-6R.page] [7: John Deere website-News & Media, http://www.deere.com/en_US/corporate/our_company/news_and _media/ press_releases/2015/forestry/2015apr1-l-series-skidders.page] II. INVESTMENT OPPORTUNITIES AND RISKS Investment Opportunities Although demand for agricultural equipment is currently low, the forecasted trends in both population size and rising living standards produce a strong outlook for Deere’s business model. As population increases, urbanization is also forecasted to increase, which would leave smaller populations in rural areas
and a larger need to mechanize farming. With the company’s strategy being to serve a larger global customer base, Deere may be able to serve the rising global food needs with their mechanical agriculture equipment.[footnoteRef:8] [8: John Deere website-Why Invest, http://investor.deere.com/our- company/investors-relations/why-invest/default.aspx] Deere & Company’s actual earnings have exceeded analyst estimates for the past four quarters. In fact, in the past two quarters, Q4 2014 and Q1 2015, they surpassed estimates by 0.54 and 0.29 respectively.[footnoteRef:9] Even though the earnings estimates have been declining for the past four quarters, we can still see a positive outlook on Deere’s position. With sales having been decreasing for the past four years, the company has still been able to restructure and meet each earnings estimate, which speaks to the company’s ability even during a downturn of demand in their industry. [9: Yahoo Finance-Analyst Estimates, http://finance.yahoo.com/q/ae?s=DE+Analyst+Estimates] Deere & Company’s one year stock chart shows a positive outlook for the company’s overall position. In November, a descending triangle began to form. Although this would usually forecast a continuing declination, the breakout from the pattern can be seen as a confirmation that the main upward trend will
continue.[footnoteRef:10] However, these patterns are only vaguely represented, so reliance on them should be taken with due care. [10: Jack D. Schwager, Getting Started in Technical Analysis] Investment Risks The first major risk factor to take into account when analyzing Deere & Company is their short term growth rate. Analysts currently estimate their sales growth to be -16.80% in the current year and -1.80% in the following year. They also estimate overall growth of the company to be -41.10%, whereas the industry estimate is 9.20%.[footnoteRef:11] Compiling these forecasts with the historical sales growth rates for the past four years, we notice that the trend is continually decreasing. [11: Yahoo Finance-Analyst Estimates, http://finance.yahoo.com/q/ae?s=DE+Analyst+Estimates] Focusing on individual segments of the company, the company’s agriculture equipment sales can be related to several factors that may produce uncertainties for farmers. These uncertainties would thus affect their consumer confidence and willingness to buy. Some of these factors include “worldwide economic conditions, demand for agricultural products, world grain stocks, weather conditions, soil conditions, harvest yields, prices for commodities and livestock, crop and livestock
production expenses, availability of transport for crops, and the growth and sustainability of non-food uses for some crops”.[footnoteRef:12] With the current drought in California, one of the major growing regions of the United States[footnoteRef:13], agriculture equipment sales in the Western region could be severely impacted. [12: John Deere- Q4 Earnings, http://investor.deere.com/files/doc_financials/quarterly_earning s/2014_ fourthquarter.pdf] [13: USDA, http://www.usda.gov/oce/weather/pubs/Other/MWCACP/Major WorldCropAreas.pdf] In terms of the entire business, the company is affected by several factors including “general economic conditions in the global markets in which the company operates, especially material changes in economic activity in these markets; customer confidence in general economic conditions; foreign currency exchange rates and their volatility, especially fluctuations in the value of the U.S. dollar; interest rates; and inflation and deflation rates”.[footnoteRef:14] The current fluctuations in the dollar could have an adverse affect on Deere’s exports. [14: John Deere-Q4 Earnings, http://investor.deere.com/files/doc_financials/quarterly_earning s/2014_
fourthquarter.pdf] III. HISTORICAL FINANCIAL PERFORMANCE Consolidated Statements of Earnings and Balance Sheet Consolidated Statement of Earnings · See Appendix A1 for the statements which are based on October 2009 to October 2014. Consolidated Balance Sheet · See Appendix A2 for the statements which are based on October 2009 to October 2014.[footnoteRef:15] [15: Morningstar, http://financials.morningstar.com/income- statement/is.html?t=DE&region=USA&culture=en_US] Common-Sized Statements of Earnings and Balance Sheet Purpose of Common-Sized Statements In performing the common-sized statements, we take each line item and express it as a percentage of revenues. This type of presentation of the financial data allows for a clearer representation of the information and the ability to compare across companies, the industry, as well as trends within the company itself. This type of analysis allows an analyst to overcome differences in firm sizes that may arise from cross sectional and time series analysis.[footnoteRef:16] Furthermore, in presenting the items as percentages, it allows for easier recognition of how much certain expenses account for revenue.
[16: Ration Analysis, http://pages.stern.nyu.edu/~hfried/download/Ratios.pdf] Discussion of Margins and Sales Growth In looking at Deere & Company’s consolidated statement of earnings, we notice that the gross margin is fairly stable. It has fluctuated between 30.5% and 32.1% from the year 2010 to the year 2014 (See Appendix A1). This shows stability within Deere. Even as demand in their industry is shifting and uncertainty is increasing, they have still been able to keep costs of revenue to a relatively constant proportion of sales. EBIT is a measure of profit before interest and taxes, and its margin can be used to determine the company’s financial health.[footnoteRef:17] Deere & Company’s EBIT margin was showing steady growth from 2010 until 2013 as it increased from 11.6% to 16.5% (See Appendix A1). These increases were due to decreasing sales, general, and administrative expenses as well as other operating expenses. However, in 2014, EBIT margin actually decreased to 15.2%. This decrease was largely attributable to a lower gross margin, but increases in R&D and other operating expenses also contributed to the difference. [17: Koller, Goedhart, and Wessels, Valuation: Measuring and Managing the Value of Companies]
Net profit margin is an overall determinant of the profitability of a company, as it accounts for income after interest, taxes, and gains or losses from discontinued operations. Deere’s net profit margin followed the same pattern as its EBIT margin, going from 7.2% in 2010 to 9.4% in 2014 (See Appendix A1). This just shows that its interest and tax expenses were consistent year to year, and had relatively the same impact on earnings from 2010 until 2014. Deere’s sales growth rate has been steadily decreasing for the past four years. In 2011, sales growth was at 23.1%, but by 2012 the rate was almost cut in half, falling to 13.0% (See Appendix A1). Although this initial decrease is not surprising because that significant of a growth rate is not sustainable, by 2014, the growth rate was -4.6%. This decline does not prove to give a positive outlook for Deere. IV. HISTORICAL NOPLAT, IC, AND FCF Calculation of Historical NOPLAT In order to value a company, there are two main factors that are needed for the calculations, return on invested capital and free cash flow. These factors are used to measure a company’s operating performance; however, the financial statements include operating performance, non-operating performance, and capital structure. Therefore, we must reorganize the financial statements in order to find solely operating
performance.[footnoteRef:18] This reorganization results in NOPLAT or net operating profit less adjusted taxes. NOPLAT is a determinant of “the profits generated from the company’s core operations after subtracting the income taxes related to the core operations”.[footnoteRef:19] In order to calculate this essential amount, we began by adjusting EBIT with adding back amortization, making it EBITA. Then we deducted the operating cash taxes from EBITA to find NOPLAT. Operating cash taxes can be calculated by taking the reported tax amount and adjusting it for any tax shields on interest paid/received and further adjusting it for any increases or decreases in deferred taxes. We want to remove tax shields from free cash flow in order to calculate cash flows as if the company had no debt and was completely financed with equity. This allows for easier comparison of operating performances across companies, and the tax shields will then be included in the cost of capital through calculating WACC.[footnoteRef:20] [18: Koller, Goedhart, and Wessels, Valuation: Measuring and Managing the Value of Companies] [19: Koller, Goedhart, and Wessels, Valuation: Measuring and Managing the Value of Companies] [20: Koller, Goedhart, and Wessels, Valuation: Measuring and Managing the Value of Companies ] Once we determined the value for NOPLAT, it was necessary
we reconcile it to net income in order to substantiate the amount. The reconciliation process required adding back to net income the changes to deferred taxes and then adjusting the amount further with any after-tax interest paid and gains/losses from discontinued operations. Finally, we adjusted for any after-tax interest received (See Appendix E1 for all calculations). What we found form our calculations was that operating profit increased from 2011 to 2013, going from $2,276,272 to $5,130,233 (in thousands) respectively. Then in 2014, NOPLAT declined. This pattern resembles that of the net income, which is to be expected. Calculation of Historical Invested Capital When investors are analyzing a company’s ability to create value, they must look at the key factor that drives this ability, its return on invested capital (ROIC). Invested capital can be defined as “the cumulative amount the business has invested in its core operations—primarily property, plant, and equipment and working capital”.[footnoteRef:21] In order to calculate Deere’s invested capital, and ultimately its return on invested capital, first we had to find the operating working capital by determining the difference between operating current assets and operating current liabilities. Next, we found the total operating invested capital including goodwill. Finally, we added the total non-operating assets to find total funds invested in order to reconcile the amount with the debt and debt equivalents, or in
other words the interest-bearing debt, and the equity and equity equivalents. What we found was that Deere’s operating invested capital has been growing steadily over the past five years. [21: Koller, Goedhart, and Wessels, Valuation: Measuring and Managing the Value of Companies] Return on invested capital, on the other hand, has not had the same pattern. ROIC can be defined “as the return the company earns on each dollar invested in the business”. ROIC was determined by dividing the operating invested capital by the NOPLAT. Deere’s ROIC increased from 2011 to 2013 going from 6.80% to 12.17% respectively. However, in 2014, ROIC dropped significantly to 6.90% (See Appendix E2 for all calculations). We do not like to see ROIC drop as “the longer a company can sustain a high ROIC, the more value the company will create”.[footnoteRef:22] [22: Koller, Goedhart, and Wessels, Valuation: Measuring and Managing the Value of Companies] Calculation of Historical Free Cash Flow After determining ROIC, our next step was finding free cash flow, or “the cash flow generated by the core operations of the business after deducting investments in new capital”.[footnoteRef:23] Because free cash flow encompasses the cash flow available to all investors, it must be discounted
using WACC in order to account for both the capital providers.[footnoteRef:24] We began our calculation of Deere’s free cash flow by initially finding the gross cash flow with adding back the non-cash depreciation expense. Next, we calculated the free cash flow by adjusting gross cash flow for operating working capital, capital expenditure, other assets, intangibles and goodwill, and accumulated comprehensive income. From 2011 to 2012, free cash flow saw a significant decrease; however, 2013 saw a complete turnaround as free cash flow went from [23: Koller, Goedhart, and Wessels, Valuation: Measuring and Managing the Value of Companies] [24: Chen and Jassim, "Pedagogical-cum-Analytical Tool for Teaching Business Valuation."] -$3,990,290 to $3,446,223 (in thousands). 2014 again saw a decrease to -$339,572 (in thousands), due to large investments in capital expenditure during that year (See Appendix E3 for all calculations). After determining free cash flow, it was necessary we find cash flow to investors in order to reconcile the amount. We reconciled Deere’s cash flows by adjusting financing flows to find flows to debt holders, and then adding in the flows to equity holders. COMPUTATIONS OF INTRINSIC VALUE Assumptions Panel A – Operating Assumptions
To begin our valuation of Deere, it was necessary that we make several operating assumptions. These included both estimations of ratios and forecasts based off of those estimates. First of all, we found our EBIT/sales for the year 2014, or in other words, our operating income as a percentage of revenue. This value was simply Deere’s current year EBIT divided by revenues, and was found to be 15.14%. As future operating income is essential to cash flow, we forecasted the next ten years and found the most reasonable estimate of the trend would be for EBIT/sales to increase in 2015 and then slowly decline for the following nine years (See Appendix F1). This is due to our assumption that Deere will need to increase research and development expenses in the future. With the declining demand in their industry, they will need to be extremely innovative in developing new products. Our next line item in our valuation model is NOPLAT/sales. This value can easily be found by dividing NOPLAT by our total sales. Rather than estimating this value in future years, we were able to calculate it with our estimated future sales and estimated future NOPLAT. These line items will be described in more detail in the Panel B section of the report. Depreciation/sales was our next key item requiring forecasted future values. This value could be found by taking current year depreciation and amortization expense from our Statement of Cash Flows and dividing it by our revenues for 2014. We
calculated this percentage to be 3.62% and forecasted that it would remain stable for the next five years and then slowly decline (See Appendix F1). We made this assumption based off of recent capital expenditures. In 2014, Deere made its largest investment in capital expenditures for the past five years. We believe the depreciation on these assets will cause depreciation expense to remain stable in relation to sales for several years, and that large future capital expenditures are not likely, causing depreciation expense to decrease in the more distant future. The next estimation that was essential to our valuation was working capital/sales, which was found by taking working capital and dividing it by sales. Our percentage in 2014 was found to be 100.30%. In forecasting future working capital/sales, we believed it would be practical to estimate a declination in the trend. In the past five years the percentage has dropped as low as 86.21%; therefore, we found it reasonable to assume the percentage would decline to 93.5% in the next ten years (See Appendix F1). Our next line item, working capital, was then found by applying our forecasted Working Capital/Sales to our forecasted sales from Panel B. Our valuation model required we determine capital expenditures/sales. This value was simply capital expenditures as a percentage of sales, and was found to be 15.06% in 2014. As stated before, we assume that future capital expenditures will be minimal, so we believed a reasonable estimation in the
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx
How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx

Recommended

Ethics And The Trial Consultant And Expert Witness
Ethics And The Trial Consultant And Expert WitnessEthics And The Trial Consultant And Expert Witness
Ethics And The Trial Consultant And Expert WitnessCTIN
 
What is mooting
What is mootingWhat is mooting
What is mootingLokesh Chandra Ranjan
 
chapter 4,.. 123 oral evidence fikadu tolosa
chapter 4,.. 123 oral evidence fikadu tolosachapter 4,.. 123 oral evidence fikadu tolosa
chapter 4,.. 123 oral evidence fikadu tolosaSaabbaaMan
 
Ethics in practicing Civil Procedure
Ethics in practicing Civil Procedure Ethics in practicing Civil Procedure
Ethics in practicing Civil Procedure ShahMuhammad55
 
Unit8 ppp
Unit8 pppUnit8 ppp
Unit8 ppppryorpa
 
Discussion Board Unit4   Proof Requirements and Sentencing Due.docx
Discussion Board Unit4   Proof Requirements and Sentencing Due.docxDiscussion Board Unit4   Proof Requirements and Sentencing Due.docx
Discussion Board Unit4   Proof Requirements and Sentencing Due.docxelinoraudley582231
 
Lecture 8 reports and giving evidence in court
Lecture 8 reports and giving evidence in courtLecture 8 reports and giving evidence in court
Lecture 8 reports and giving evidence in courtNewham College University Centre Stratford Newham
 
J4410 Covering Courts Sept24 09
J4410 Covering Courts Sept24 09J4410 Covering Courts Sept24 09
J4410 Covering Courts Sept24 09Neil Foote
 

Recommended

Ethics And The Trial Consultant And Expert Witness
Ethics And The Trial Consultant And Expert WitnessEthics And The Trial Consultant And Expert Witness
Ethics And The Trial Consultant And Expert WitnessCTIN
 
What is mooting
What is mootingWhat is mooting
What is mootingLokesh Chandra Ranjan
 
chapter 4,.. 123 oral evidence fikadu tolosa
chapter 4,.. 123 oral evidence fikadu tolosachapter 4,.. 123 oral evidence fikadu tolosa
chapter 4,.. 123 oral evidence fikadu tolosaSaabbaaMan
 
Ethics in practicing Civil Procedure
Ethics in practicing Civil Procedure Ethics in practicing Civil Procedure
Ethics in practicing Civil Procedure ShahMuhammad55
 
Unit8 ppp
Unit8 pppUnit8 ppp
Unit8 ppppryorpa
 
Discussion Board Unit4   Proof Requirements and Sentencing Due.docx
Discussion Board Unit4   Proof Requirements and Sentencing Due.docxDiscussion Board Unit4   Proof Requirements and Sentencing Due.docx
Discussion Board Unit4   Proof Requirements and Sentencing Due.docxelinoraudley582231
 
Lecture 8 reports and giving evidence in court
Lecture 8 reports and giving evidence in courtLecture 8 reports and giving evidence in court
Lecture 8 reports and giving evidence in courtNewham College University Centre Stratford Newham
 
J4410 Covering Courts Sept24 09
J4410 Covering Courts Sept24 09J4410 Covering Courts Sept24 09
J4410 Covering Courts Sept24 09Neil Foote
 
Conducting Effective Workplace Investigations
Conducting Effective Workplace InvestigationsConducting Effective Workplace Investigations
Conducting Effective Workplace InvestigationsParsons Behle & Latimer
 
Attorney ethics.pptx
Attorney ethics.pptxAttorney ethics.pptx
Attorney ethics.pptxssuserbfa47c
 
U402 B Engaging in Justice
U402 B Engaging in Justice U402 B Engaging in Justice
U402 B Engaging in Justice Crystal Delosa
 
3.3 legal personnel
3.3 legal personnel3.3 legal personnel
3.3 legal personnelAlisa Stephens
 
Have you been arrested for the first time
Have you been arrested for the first timeHave you been arrested for the first time
Have you been arrested for the first timemackesyssolicitors
 
Investigations august2012vpt
Investigations august2012vptInvestigations august2012vpt
Investigations august2012vptBill Forkey
 
Chapter 8.administrative agency hearings
Chapter 8.administrative agency hearingsChapter 8.administrative agency hearings
Chapter 8.administrative agency hearingsAPSU
 
Unit 7
Unit 7Unit 7
Unit 7Alanda Fuller
 
Interviewing and Counselling for Legal Practice
Interviewing and Counselling for Legal PracticeInterviewing and Counselling for Legal Practice
Interviewing and Counselling for Legal PracticeNilendra Kumar
 
The Anatomy Of A Civil Lawsuit In Arizona
The Anatomy Of A Civil Lawsuit In ArizonaThe Anatomy Of A Civil Lawsuit In Arizona
The Anatomy Of A Civil Lawsuit In ArizonaWeinberger Law Firm
 
New Judge Mentor Program Presentation
New Judge Mentor Program PresentationNew Judge Mentor Program Presentation
New Judge Mentor Program PresentationWASCJA
 
What are the keys to an effective workplace investigation?
What are the keys to an effective workplace investigation?What are the keys to an effective workplace investigation?
What are the keys to an effective workplace investigation?CohenGrigsby
 
Misconduct & Disciplinary Action - Charge Sheet & Domestic Enquiry
Misconduct & Disciplinary Action - Charge Sheet & Domestic EnquiryMisconduct & Disciplinary Action - Charge Sheet & Domestic Enquiry
Misconduct & Disciplinary Action - Charge Sheet & Domestic EnquiryFurqan Ali
 
Criminal Lawyers.ppfx
Criminal Lawyers.ppfxCriminal Lawyers.ppfx
Criminal Lawyers.ppfxSitar & Milczarek
 
LEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdf
LEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdfLEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdf
LEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdfEdgarCalzitaAlota
 
Priv1.16.08
Priv1.16.08Priv1.16.08
Priv1.16.08Colleen Murphy
 
Blake Lapthorn's Thames Valley HR forum - 21 may 2013
Blake Lapthorn's Thames Valley HR forum - 21 may 2013Blake Lapthorn's Thames Valley HR forum - 21 may 2013
Blake Lapthorn's Thames Valley HR forum - 21 may 2013Blake Morgan
 
Take that statement
Take that statementTake that statement
Take that statementTerry Penney
 
MI1
MI1MI1
MI1Susie Shine
 
Witness statement
Witness statementWitness statement
Witness statementezzeldin bassyouni
 
Hw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docx
Hw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docxHw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docx
Hw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docxwellesleyterresa
 
HW in teams of 3 studentsAn oil remanufacturing company uses c.docx
HW in teams of 3 studentsAn oil remanufacturing company uses c.docxHW in teams of 3 studentsAn oil remanufacturing company uses c.docx
HW in teams of 3 studentsAn oil remanufacturing company uses c.docxwellesleyterresa
 

More Related Content

Similar to How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx

Conducting Effective Workplace Investigations
Conducting Effective Workplace InvestigationsConducting Effective Workplace Investigations
Conducting Effective Workplace InvestigationsParsons Behle & Latimer
 
Attorney ethics.pptx
Attorney ethics.pptxAttorney ethics.pptx
Attorney ethics.pptxssuserbfa47c
 
U402 B Engaging in Justice
U402 B Engaging in Justice U402 B Engaging in Justice
U402 B Engaging in Justice Crystal Delosa
 
Have you been arrested for the first time
Have you been arrested for the first timeHave you been arrested for the first time
Have you been arrested for the first timemackesyssolicitors
 
Investigations august2012vpt
Investigations august2012vptInvestigations august2012vpt
Investigations august2012vptBill Forkey
 
Chapter 8.administrative agency hearings
Chapter 8.administrative agency hearingsChapter 8.administrative agency hearings
Chapter 8.administrative agency hearingsAPSU
 
Interviewing and Counselling for Legal Practice
Interviewing and Counselling for Legal PracticeInterviewing and Counselling for Legal Practice
Interviewing and Counselling for Legal PracticeNilendra Kumar
 
The Anatomy Of A Civil Lawsuit In Arizona
The Anatomy Of A Civil Lawsuit In ArizonaThe Anatomy Of A Civil Lawsuit In Arizona
The Anatomy Of A Civil Lawsuit In ArizonaWeinberger Law Firm
 
New Judge Mentor Program Presentation
New Judge Mentor Program PresentationNew Judge Mentor Program Presentation
New Judge Mentor Program PresentationWASCJA
 
What are the keys to an effective workplace investigation?
What are the keys to an effective workplace investigation?What are the keys to an effective workplace investigation?
What are the keys to an effective workplace investigation?CohenGrigsby
 
Misconduct & Disciplinary Action - Charge Sheet & Domestic Enquiry
Misconduct & Disciplinary Action - Charge Sheet & Domestic EnquiryMisconduct & Disciplinary Action - Charge Sheet & Domestic Enquiry
Misconduct & Disciplinary Action - Charge Sheet & Domestic EnquiryFurqan Ali
 
LEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdf
LEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdfLEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdf
LEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdfEdgarCalzitaAlota
 
Blake Lapthorn's Thames Valley HR forum - 21 may 2013
Blake Lapthorn's Thames Valley HR forum - 21 may 2013Blake Lapthorn's Thames Valley HR forum - 21 may 2013
Blake Lapthorn's Thames Valley HR forum - 21 may 2013Blake Morgan
 
Take that statement
Take that statementTake that statement
Take that statementTerry Penney
 

Similar to How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx (20)

Conducting Effective Workplace Investigations
Conducting Effective Workplace InvestigationsConducting Effective Workplace Investigations
Conducting Effective Workplace Investigations
 
Attorney ethics.pptx
Attorney ethics.pptxAttorney ethics.pptx
Attorney ethics.pptx
 
U402 B Engaging in Justice
U402 B Engaging in Justice U402 B Engaging in Justice
U402 B Engaging in Justice
 
3.3 legal personnel
3.3 legal personnel3.3 legal personnel
3.3 legal personnel
 
Have you been arrested for the first time
Have you been arrested for the first timeHave you been arrested for the first time
Have you been arrested for the first time
 
Investigations august2012vpt
Investigations august2012vptInvestigations august2012vpt
Investigations august2012vpt
 
Chapter 8.administrative agency hearings
Chapter 8.administrative agency hearingsChapter 8.administrative agency hearings
Chapter 8.administrative agency hearings
 
Unit 7
Unit 7Unit 7
Unit 7
 
Interviewing and Counselling for Legal Practice
Interviewing and Counselling for Legal PracticeInterviewing and Counselling for Legal Practice
Interviewing and Counselling for Legal Practice
 
The Anatomy Of A Civil Lawsuit In Arizona
The Anatomy Of A Civil Lawsuit In ArizonaThe Anatomy Of A Civil Lawsuit In Arizona
The Anatomy Of A Civil Lawsuit In Arizona
 
New Judge Mentor Program Presentation
New Judge Mentor Program PresentationNew Judge Mentor Program Presentation
New Judge Mentor Program Presentation
 
What are the keys to an effective workplace investigation?
What are the keys to an effective workplace investigation?What are the keys to an effective workplace investigation?
What are the keys to an effective workplace investigation?
 
Misconduct & Disciplinary Action - Charge Sheet & Domestic Enquiry
Misconduct & Disciplinary Action - Charge Sheet & Domestic EnquiryMisconduct & Disciplinary Action - Charge Sheet & Domestic Enquiry
Misconduct & Disciplinary Action - Charge Sheet & Domestic Enquiry
 
Criminal Lawyers.ppfx
Criminal Lawyers.ppfxCriminal Lawyers.ppfx
Criminal Lawyers.ppfx
 
LEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdf
LEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdfLEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdf
LEGAL_and_JUDICIAL_ETHICSwefqwrfqrvqRF_REVIEWER.pdf
 
Priv1.16.08
Priv1.16.08Priv1.16.08
Priv1.16.08
 
Blake Lapthorn's Thames Valley HR forum - 21 may 2013
Blake Lapthorn's Thames Valley HR forum - 21 may 2013Blake Lapthorn's Thames Valley HR forum - 21 may 2013
Blake Lapthorn's Thames Valley HR forum - 21 may 2013
 
Take that statement
Take that statementTake that statement
Take that statement
 
MI1
MI1MI1
MI1
 
Witness statement
Witness statementWitness statement
Witness statement
 

More from wellesleyterresa

Hw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docx
Hw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docxHw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docx
Hw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docxwellesleyterresa
 
HW in teams of 3 studentsAn oil remanufacturing company uses c.docx
HW in teams of 3 studentsAn oil remanufacturing company uses c.docxHW in teams of 3 studentsAn oil remanufacturing company uses c.docx
HW in teams of 3 studentsAn oil remanufacturing company uses c.docxwellesleyterresa
 
HW 5.docxAssignment 5 – Currency riskYou may do this assig.docx
HW 5.docxAssignment 5 – Currency riskYou may do this assig.docxHW 5.docxAssignment 5 – Currency riskYou may do this assig.docx
HW 5.docxAssignment 5 – Currency riskYou may do this assig.docxwellesleyterresa
 
HW#3 – Spring 20181. Giulia is traveling from Italy to China. .docx
HW#3 – Spring 20181. Giulia is traveling from Italy to China. .docxHW#3 – Spring 20181. Giulia is traveling from Italy to China. .docx
HW#3 – Spring 20181. Giulia is traveling from Italy to China. .docxwellesleyterresa
 
HW 2Due July 1 by 500 PM.docx
HW 2Due July 1 by 500 PM.docxHW 2Due July 1 by 500 PM.docx
HW 2Due July 1 by 500 PM.docxwellesleyterresa
 
HW 4 Gung Ho Commentary DUE Thursday, April 20 at 505 PM on.docx
HW 4 Gung Ho Commentary DUE Thursday, April 20 at 505 PM on.docxHW 4 Gung Ho Commentary DUE Thursday, April 20 at 505 PM on.docx
HW 4 Gung Ho Commentary DUE Thursday, April 20 at 505 PM on.docxwellesleyterresa
 
HW 5 Math 405. Due beginning of class – Monday, 10 Oct 2016.docx
HW 5 Math 405. Due beginning of class – Monday, 10 Oct 2016.docxHW 5 Math 405. Due beginning of class – Monday, 10 Oct 2016.docx
HW 5 Math 405. Due beginning of class – Monday, 10 Oct 2016.docxwellesleyterresa
 
HW 5-RSAascii2str.mfunction str = ascii2str(ascii) .docx
HW 5-RSAascii2str.mfunction str = ascii2str(ascii) .docxHW 5-RSAascii2str.mfunction str = ascii2str(ascii) .docx
HW 5-RSAascii2str.mfunction str = ascii2str(ascii) .docxwellesleyterresa
 
HW 3 Project Control• Status meeting agenda – shows time, date .docx
HW 3 Project Control• Status meeting agenda – shows time, date .docxHW 3 Project Control• Status meeting agenda – shows time, date .docx
HW 3 Project Control• Status meeting agenda – shows time, date .docxwellesleyterresa
 
HW 1January 19 2017Due back Jan 26, in class.1. (T.docx
HW 1January 19 2017Due back Jan 26, in class.1. (T.docxHW 1January 19 2017Due back Jan 26, in class.1. (T.docx
HW 1January 19 2017Due back Jan 26, in class.1. (T.docxwellesleyterresa
 
Hussam Malibari Heckman MAT 242 Spring 2017Assignment Chapte.docx
Hussam Malibari Heckman MAT 242 Spring 2017Assignment Chapte.docxHussam Malibari Heckman MAT 242 Spring 2017Assignment Chapte.docx
Hussam Malibari Heckman MAT 242 Spring 2017Assignment Chapte.docxwellesleyterresa
 
hw1.docxCS 211 Homework #1Please complete the homework problem.docx
hw1.docxCS 211 Homework #1Please complete the homework problem.docxhw1.docxCS 211 Homework #1Please complete the homework problem.docx
hw1.docxCS 211 Homework #1Please complete the homework problem.docxwellesleyterresa
 
HUS 335 Interpersonal Helping SkillsCase Assessment FormatT.docx
HUS 335 Interpersonal Helping SkillsCase Assessment FormatT.docxHUS 335 Interpersonal Helping SkillsCase Assessment FormatT.docx
HUS 335 Interpersonal Helping SkillsCase Assessment FormatT.docxwellesleyterresa
 
HW #1Tech Alert on IT & Strategy (Ch 3-5Ch 3 -5 IT Strategy opt.docx
HW #1Tech Alert on IT & Strategy (Ch 3-5Ch 3 -5 IT Strategy opt.docxHW #1Tech Alert on IT & Strategy (Ch 3-5Ch 3 -5 IT Strategy opt.docx
HW #1Tech Alert on IT & Strategy (Ch 3-5Ch 3 -5 IT Strategy opt.docxwellesleyterresa
 
HW 2 (1) Visit Monsanto (httpwww.monsanto.com) again and Goog.docx
HW 2 (1) Visit Monsanto (httpwww.monsanto.com) again and Goog.docxHW 2 (1) Visit Monsanto (httpwww.monsanto.com) again and Goog.docx
HW 2 (1) Visit Monsanto (httpwww.monsanto.com) again and Goog.docxwellesleyterresa
 
Hunters Son Dialogue Activity1. Please write 1-2 sentences for e.docx
Hunters Son Dialogue Activity1. Please write 1-2 sentences for e.docxHunters Son Dialogue Activity1. Please write 1-2 sentences for e.docx
Hunters Son Dialogue Activity1. Please write 1-2 sentences for e.docxwellesleyterresa
 
HW 2 - SQL The database you will use for this assignme.docx
HW 2 - SQL The database you will use for this assignme.docxHW 2 - SQL The database you will use for this assignme.docx
HW 2 - SQL The database you will use for this assignme.docxwellesleyterresa
 
Humanities Commons Learning Goals1. Write about primary and seco.docx
Humanities Commons Learning Goals1. Write about primary and seco.docxHumanities Commons Learning Goals1. Write about primary and seco.docx
Humanities Commons Learning Goals1. Write about primary and seco.docxwellesleyterresa
 
HURRICANE KATRINA A NATION STILL UNPREPARED .docx
HURRICANE KATRINA A NATION STILL UNPREPARED .docxHURRICANE KATRINA A NATION STILL UNPREPARED .docx
HURRICANE KATRINA A NATION STILL UNPREPARED .docxwellesleyterresa
 
Humanities 115Short Essay Grading CriteriaExcellentPassing.docx
Humanities 115Short Essay Grading CriteriaExcellentPassing.docxHumanities 115Short Essay Grading CriteriaExcellentPassing.docx
Humanities 115Short Essay Grading CriteriaExcellentPassing.docxwellesleyterresa
 

More from wellesleyterresa (20)

Hw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docx
Hw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docxHw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docx
Hw059f6dbf-250a-4d74-8f5e-f28f14227edc.jpg__MACOSXHw._059.docx
 
HW in teams of 3 studentsAn oil remanufacturing company uses c.docx
HW in teams of 3 studentsAn oil remanufacturing company uses c.docxHW in teams of 3 studentsAn oil remanufacturing company uses c.docx
HW in teams of 3 studentsAn oil remanufacturing company uses c.docx
 
HW 5.docxAssignment 5 – Currency riskYou may do this assig.docx
HW 5.docxAssignment 5 – Currency riskYou may do this assig.docxHW 5.docxAssignment 5 – Currency riskYou may do this assig.docx
HW 5.docxAssignment 5 – Currency riskYou may do this assig.docx
 
HW#3 – Spring 20181. Giulia is traveling from Italy to China. .docx
HW#3 – Spring 20181. Giulia is traveling from Italy to China. .docxHW#3 – Spring 20181. Giulia is traveling from Italy to China. .docx
HW#3 – Spring 20181. Giulia is traveling from Italy to China. .docx
 
HW 2Due July 1 by 500 PM.docx
HW 2Due July 1 by 500 PM.docxHW 2Due July 1 by 500 PM.docx
HW 2Due July 1 by 500 PM.docx
 
HW 4 Gung Ho Commentary DUE Thursday, April 20 at 505 PM on.docx
HW 4 Gung Ho Commentary DUE Thursday, April 20 at 505 PM on.docxHW 4 Gung Ho Commentary DUE Thursday, April 20 at 505 PM on.docx
HW 4 Gung Ho Commentary DUE Thursday, April 20 at 505 PM on.docx
 
HW 5 Math 405. Due beginning of class – Monday, 10 Oct 2016.docx
HW 5 Math 405. Due beginning of class – Monday, 10 Oct 2016.docxHW 5 Math 405. Due beginning of class – Monday, 10 Oct 2016.docx
HW 5 Math 405. Due beginning of class – Monday, 10 Oct 2016.docx
 
HW 5-RSAascii2str.mfunction str = ascii2str(ascii) .docx
HW 5-RSAascii2str.mfunction str = ascii2str(ascii) .docxHW 5-RSAascii2str.mfunction str = ascii2str(ascii) .docx
HW 5-RSAascii2str.mfunction str = ascii2str(ascii) .docx
 
HW 3 Project Control• Status meeting agenda – shows time, date .docx
HW 3 Project Control• Status meeting agenda – shows time, date .docxHW 3 Project Control• Status meeting agenda – shows time, date .docx
HW 3 Project Control• Status meeting agenda – shows time, date .docx
 
HW 1January 19 2017Due back Jan 26, in class.1. (T.docx
HW 1January 19 2017Due back Jan 26, in class.1. (T.docxHW 1January 19 2017Due back Jan 26, in class.1. (T.docx
HW 1January 19 2017Due back Jan 26, in class.1. (T.docx
 
Hussam Malibari Heckman MAT 242 Spring 2017Assignment Chapte.docx
Hussam Malibari Heckman MAT 242 Spring 2017Assignment Chapte.docxHussam Malibari Heckman MAT 242 Spring 2017Assignment Chapte.docx
Hussam Malibari Heckman MAT 242 Spring 2017Assignment Chapte.docx
 
hw1.docxCS 211 Homework #1Please complete the homework problem.docx
hw1.docxCS 211 Homework #1Please complete the homework problem.docxhw1.docxCS 211 Homework #1Please complete the homework problem.docx
hw1.docxCS 211 Homework #1Please complete the homework problem.docx
 
HUS 335 Interpersonal Helping SkillsCase Assessment FormatT.docx
HUS 335 Interpersonal Helping SkillsCase Assessment FormatT.docxHUS 335 Interpersonal Helping SkillsCase Assessment FormatT.docx
HUS 335 Interpersonal Helping SkillsCase Assessment FormatT.docx
 
HW #1Tech Alert on IT & Strategy (Ch 3-5Ch 3 -5 IT Strategy opt.docx
HW #1Tech Alert on IT & Strategy (Ch 3-5Ch 3 -5 IT Strategy opt.docxHW #1Tech Alert on IT & Strategy (Ch 3-5Ch 3 -5 IT Strategy opt.docx
HW #1Tech Alert on IT & Strategy (Ch 3-5Ch 3 -5 IT Strategy opt.docx
 
HW 2 (1) Visit Monsanto (httpwww.monsanto.com) again and Goog.docx
HW 2 (1) Visit Monsanto (httpwww.monsanto.com) again and Goog.docxHW 2 (1) Visit Monsanto (httpwww.monsanto.com) again and Goog.docx
HW 2 (1) Visit Monsanto (httpwww.monsanto.com) again and Goog.docx
 
Hunters Son Dialogue Activity1. Please write 1-2 sentences for e.docx
Hunters Son Dialogue Activity1. Please write 1-2 sentences for e.docxHunters Son Dialogue Activity1. Please write 1-2 sentences for e.docx
Hunters Son Dialogue Activity1. Please write 1-2 sentences for e.docx
 
HW 2 - SQL The database you will use for this assignme.docx
HW 2 - SQL The database you will use for this assignme.docxHW 2 - SQL The database you will use for this assignme.docx
HW 2 - SQL The database you will use for this assignme.docx
 
Humanities Commons Learning Goals1. Write about primary and seco.docx
Humanities Commons Learning Goals1. Write about primary and seco.docxHumanities Commons Learning Goals1. Write about primary and seco.docx
Humanities Commons Learning Goals1. Write about primary and seco.docx
 
HURRICANE KATRINA A NATION STILL UNPREPARED .docx
HURRICANE KATRINA A NATION STILL UNPREPARED .docxHURRICANE KATRINA A NATION STILL UNPREPARED .docx
HURRICANE KATRINA A NATION STILL UNPREPARED .docx
 
Humanities 115Short Essay Grading CriteriaExcellentPassing.docx
Humanities 115Short Essay Grading CriteriaExcellentPassing.docxHumanities 115Short Essay Grading CriteriaExcellentPassing.docx
Humanities 115Short Essay Grading CriteriaExcellentPassing.docx
 

Recently uploaded

BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdfSoniaTolstoy
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxheathfieldcps1
 
Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..Disha Kariya
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxiammrhaywood
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdfQucHHunhnh
 
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...Krashi Coaching
 
9548086042 for call girls in Indira Nagar with room service
9548086042 for call girls in Indira Nagar with room service9548086042 for call girls in Indira Nagar with room service
9548086042 for call girls in Indira Nagar with room servicediscovermytutordmt
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)eniolaolutunde
 
Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Celine George
 
Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3JemimahLaneBuaron
 
Measures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and ModeMeasures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and ModeThiyagu K
 
Beyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global ImpactBeyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global ImpactPECB
 
Measures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDMeasures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDThiyagu K
 
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionMastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionSafetyChain Software
 
Separation of Lanthanides/ Lanthanides and Actinides
Separation of Lanthanides/ Lanthanides and ActinidesSeparation of Lanthanides/ Lanthanides and Actinides
Separation of Lanthanides/ Lanthanides and ActinidesFatimaKhan178732
 
Interactive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationInteractive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationnomboosow
 
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformChameera Dedduwage
 
CARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptxCARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptxGaneshChakor2
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introductionMaksud Ahmed
 

Recently uploaded (20)

BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptx
 
Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..
 
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
 
9548086042 for call girls in Indira Nagar with room service
9548086042 for call girls in Indira Nagar with room service9548086042 for call girls in Indira Nagar with room service
9548086042 for call girls in Indira Nagar with room service
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)
 
Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17
 
Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3
 
Measures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and ModeMeasures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and Mode
 
Beyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global ImpactBeyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global Impact
 
Measures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDMeasures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SD
 
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionMastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory Inspection
 
Separation of Lanthanides/ Lanthanides and Actinides
Separation of Lanthanides/ Lanthanides and ActinidesSeparation of Lanthanides/ Lanthanides and Actinides
Separation of Lanthanides/ Lanthanides and Actinides
 
Interactive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationInteractive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communication
 
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy Reform
 
CARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptxCARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptx
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introduction
 

How to testify EffectivelyChapter 15By Tiffany HoustonMay.docx