DEERE & CO | 2013 | FY |

 

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

 

		2013			2012			2011
Other income
Revenues from services		$	256		$	233		$	217
Insurance premiums and fees earned		252			248			236
Investment income		15			14			11
Other		159			180			160
Total		$	682		$	675		$	624
Other operating expenses
Depreciation of equipment on operating leases		$	389		$	339		$	306
Insurance claims and expenses		204			245			193
Cost of services		143			122			115
Other		85			76			102
Total		$	821		$	782		$	716

 

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