DEERE \& COMPANY DEERE \& COMPANY CONSOLIDATED BALANCE SHEETS As of October 30,2022 and October 31, 2021 (In millions of dollars) The notes to consolidated financial statements are an integral part of this statement. 3.ACQUISMONSAND DISPOSTIONS 14. PROPERTY AND DEPRECIATION Acquisitions A summary of property and equipment at October 30, 2022 and October 31, 202 l in millions of dollars follows: BearFlag In August 2022, the company acquired Bear Flag Robotics, Inc. [Bear Flag) to further accelerate Deere's development and delivery of advanced technology. Bear Flag's technology is complementary to other Deere technology efforts and enables autonomous tractor operations. The total cash purchase price before final adjustments, net of cash acquired of $4 million, was $225 million, The asset and liability fair values at the acquistion date in millions of dollars follow: Total property and equipment additions in 2022, 2021, and 2020 were SU197 million, 5897mili on, and $815 million and depreciation was $806 million. $830m ilion, and $800 million, respectively. The identified intangble was related to technology with a sevenyear amortization period. The goodwill will not be deductible for tax purposes: 13. INVENTORIES A majority of inventory owned by Deere \& Company and its US. equipment subsidianies are valued at cost, on the "last-in, first-out" 15. GOODWIL AND OTHERINTANGIBLE ASSETS - NET (LiFO) basis. Remaining inventories are generally valued at the lower of cost, on the "first-in, first-out" IFiFO) basis, or net The changes in amounts of goodwill by operating segments were realizable value. The value of gross inventories on the LIFO basis at October 30,2022 and October 31,2021 represented 57 percent and 54 percent, respectively, of worldwide gross inventories at FIFO value. If all inventories had been valued on a FiFO basis, estimated. inventories by majpr classification at October 30,2022 and October 31. 2021 in millions of dollars would have been as follows. There were no accumulated goodwil impairment losses in the reported periods. The components of other intangible assets are as follows in millions of dollars: In September 2017, the company acquired Blue River Technology's in-process research and development related to machine learning technology to optimize the use of farm inputs. Those research and development activities were completed, and the company started amortizing the acquired technology in 2022. Other intangible assets are stated at cost less accumulated amortization. The amortization of other intangible assets in 2022, 2021 , and 2020 was $145 million, \$116 million, and \$102 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: In answering the questions below, assume a tax rate of 21% for all periods. Also, assume that John Deere paid all its income taxes in the reporting period in which they are due. The average inventory turnover is an important indicator for how efficiently firms use their inventory. What is the average inventory turnover of John Deere for fiscal year 2022 using the reported numbers in balance sheet and income statement? John Deere's main competitor AGCO, manufacturer of beloved agricultural brands such as Fendt and Massey Ferguson, reports inventory using exclusively the FIFO cost-flow assumption. AGCO's inventory turnover is 3.75. Which company uses its inventory more efficiently if you assess them at a comparable basis? Circle your choice and explain your choice