Item 2. PROPERTIES.

See “Manufacturing” in Item 1.

The equipment operations own or lease nine facilities housing one centralized parts distribution center and eight regional parts depots and distribution centers throughout the U.S. and Canada. These facilities contain approximately 4.7 million square feet of floor space. Outside the U.S. and Canada, the equipment operations also own or lease and occupy buildings housing three centralized parts distribution centers in Brazil, Germany and Russia and regional parts depots and distribution centers in Argentina, Australia, China, India, Mexico, South Africa, Sweden and the United Kingdom. These facilities contain approximately 2.8 million square feet of floor space. John Deere also owns facilities for the manufacture and distribution of other brands of replacement parts containing approximately 1.4 million square feet. John Deere has projects underway currently to increase parts facilities floor space in India and Brazil.

The Company’s administrative offices and research facilities, which are owned and leased by John Deere, contain about 3.7 million square feet of floor space globally and miscellaneous other facilities total 3.9 million square feet globally.

Overall, John Deere owns approximately 57.7 million square feet of facilities and leases approximately 14.2 million additional square feet in various locations.