Note 22: Supplemental Condensed Consolidating Financial Information

CNH Industrial and certain 100% owned subsidiaries of CNH Industrial (the “Guarantor Subsidiaries”) guarantee the 7.875% Senior Notes issued by Case New Holland Industrial Inc. (formerly Case New Holland Inc.) in 2010. As the guarantees are fully unconditional, irrevocable and joint and several with all other guarantees and as the Guarantor Subsidiaries are all 100% owned by CNH Industrial, the Company has included the following condensed consolidating financial information as of December 31, 2015, and 2014 and for the three years ended December 31, 2015. The condensed consolidating financial information reflects investments in consolidated subsidiaries on the equity method of accounting. The goodwill and other intangible assets are allocated to reporting units and are primarily reported by the Guarantor Subsidiaries, except for the portion related to Financial Services which is reported by All Other Subsidiaries. It is not practicable to allocate goodwill and other intangibles to the individual Guarantor Subsidiaries and All Other Subsidiaries.

Prior to the merger, CNH Global was the parent company of Case New Holland Industrial Inc. Effective September 30, 2013, CNH Global, Fiat Industrial and Fiat Netherlands merged with and into CNH Industrial N.V., which succeeded to all of the assets and liabilities of the three companies. Following the merger, CNH Industrial became the parent company of Case New Holland Industrial Inc.

In an effort to reduce the complexity of the Company’s legal structure and as a part of the Company’s tax planning strategies, CNH Industrial has actively eliminated and transferred legal entities. During 2015, the parent company acquired the assets and operations of a subsidiary related to Agricultural Equipment and Construction Equipment. For comparative purposes, results of prior periods have been restated to include the results and financial position of the subsidiary with the parent entity. These transactions between entities under common control are accounted for at historical cost in accordance with existing accounting guidance. As a consequence, any material future transactions related to CNH Industrial’s legal entity rationalization activities and tax planning strategies may result in a retroactive restatement of the information contained in this note as these transactions are completed.

The following condensed financial statements present CNH Industrial, Case New Holland Industrial Inc., the Guarantor Subsidiaries, and all other subsidiaries as of December 31, 2015, and 2014, and for the years ended December 31, 2015, 2014, and 2013.

	Condensed Statements of Operations For the Year Ended December 31, 2015
	CNH Industrial N.V.			Case New Holland Industrial Inc.			Guarantor Subsidiaries		All Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Total Revenues	$	1,541		$	9		$	10,860	$	19,509		$	(6,007	)	$	25,912
Cost and Expenses:
Cost of goods sold		1,283			—			9,039		15,339			(5,304	)		20,357
Selling, general and administrative expenses		133			—			495		1,689			—			2,317
Research and development expenses		11			—			281		564			—			856
Restructuring expenses		2			—			16		66			—			84
Interest expense		130			246			162		1,076			(508	)		1,106
Interest compensation to Financial Services		11			—			184		—			(195	)		—
Other, net		36			(2	)		199		392			—			625
		1,606			244			10,376		19,126			(6,007	)		25,345
Income (loss) before income taxes and equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method		(65	)		(235	)		484		383			—			567
Income taxes		13			(85	)		114		318			—			360
Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method		331			425			264		62			(1,041	)		41
Net income		253			275			634		127			(1,041	)		248
Net loss attributable to noncontrolling interests		—			—			—		(5	)		—			(5	)
Net income attributable to owners of the parent	$	253		$	275		$	634	$	132		$	(1,041	)	$	253

	Condensed Statements of Comprehensive Income For the Year Ended December 31, 2015
	CNH Industrial N.V.		Case New Holland Industrial Inc.		Guarantor Subsidiaries		All Other Subsidiaries			Eliminations		Consolidated
	(in millions)
Comprehensive income (loss)	$	126	$	190	$	398	$	(653	)	$	59	$	120
Comprehensive loss attributable to noncontrolling interests		—		—		—		(7	)		—		(7	)
Comprehensive income (loss) attributable to parent	$	126	$	190	$	398	$	(646	)	$	59	$	127

	Condensed Balance Sheets As of December 31, 2015
	CNH Industrial N.V.		Case New Holland Industrial Inc.			Guarantor Subsidiaries		All Other Subsidiaries		Eliminations			Consolidated
	(in millions)
Assets:
Cash and cash equivalents	$	3	$	—		$	144	$	5,237	$	—		$	5,384
Deposits in subsidiaries’ cash management pools		116		—			4,753		—		(4,869	)		—
Receivables		584		986			4,970		27,401		(14,360	)		19,581
Inventories, net		138		—			1,364		4,188		—			5,690
Property, plant and equipment, net		80		—			1,108		5,293		—			6,481
Equipment on operating leases		—		—			—		1,835		—			1,835
Investments in unconsolidated subsidiaries and affiliates		250		—			—		277		—			527
Investments in consolidated subsidiaries		9,166		7,191			1,607		794		(18,758	)		—
Goodwill and intangibles		12		—			2,786		459		—			3,257
Other		176		108			1,292		2,619		(204	)		3,991
Total Assets	$	10,525	$	8,285		$	18,024	$	48,103	$	(38,191	)	$	46,746
Liabilities and Equity:
Debt	$	5,045	$	5,194		$	3,302	$	30,067	$	(17,220	)	$	26,388
Trade payables		221		112			2,083		4,954		(2,028	)		5,342
Other liabilities		457		(82	)		3,365		6,618		(185	)		10,173
Total Equity		4,802		3,061			9,274		6,464		(18,758	)		4,843
Total Equity and Liabilities	$	10,525	$	8,285		$	18,024	$	48,103	$	(38,191	)	$	46,746

	Condensed Statements of Cash Flow For the Year Ended December 31, 2015
	CNH Industrial N.V.			Case New Holland Industrial Inc.			Guarantor Subsidiaries			All Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating Activities:
Net income	$	253		$	275		$	634		$	127		$	(1,041	)	$	248
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization		10			—			207			929			—			1,146
Other, net		52			(494	)		(284	)		1,586			528			1,388
Net cash provided (used) by operating activities		315			(219	)		557			2,642			(513	)		2,782
Investing activities:
Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets		(25	)		—			(145	)		(2,337	)		—			(2,507	)
Net collections from retail receivables and related securitizations		—			—			—			648			—			648
(Deposits in) withdrawals from subsidiaries’ cash management pools		92			—			(715	)		—			623			—
Other, net		(114	)		288			1,025			676			(948	)		927
Net cash provided (used) by investing activities		(47	)		288			165			(1,013	)		(325	)		(932	)
Financing Activities:
Net increase (decrease) in indebtedness		—			(7	)		11			(661	)		—			(657	)
Dividends paid		(291	)		(1	)		(187	)		(329	)		511			(297	)
Other, net		26			(61	)		(437	)		168			327			23
Net cash used by financing activities		(265	)		(69	)		(613	)		(822	)		838			(931	)
Effect of foreign exchange rate changes on cash and cash equivalents		(7	)		—			(4	)		(687	)		—			(698	)
Increase (decrease) in cash and cash equivalents		(4	)		—			105			120			—			221
Cash and cash equivalents, beginning of year		7			—			39			5,117			—			5,163
Cash and cash equivalents, end of year	$	3		$	—		$	144		$	5,237		$	—		$	5,384

	Condensed Statements of Operations For the Year Ended December 31, 2014
	CNH Industrial N.V.			Case New Holland Industrial Inc.			Guarantor Subsidiaries		All Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Total revenues	$	2,034		$	10		$	12,898	$	24,283		$	(6,670	)	$	32,555
Cost and Expenses:
Cost of goods sold		1,750			—			10,269		19,422			(5,907	)		25,534
Selling, general and administrative expenses		136			—			652		2,137			—			2,925
Research and development expenses		13			—			388		705			—			1,106
Restructuring expenses		3			—			29		152			—			184
Interest expense		210			234			140		1,284			(550	)		1,318
Interest compensation to Financial Services		12			—			201		—			(213	)		—
Other, net		15			(4	)		185		203			—			399
		2,139			230			11,864		23,903			(6,670	)		31,466
Income (loss) before income taxes and equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method		(105	)		(220	)		1,034		380			—			1,089
Income taxes		(101	)		(71	)		268		371			—			467
Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method		714			918			364		(32	)		(1,878	)		86
Net income (loss)		710			769			1,130		(23	)		(1,878	)		708
Net loss attributable to noncontrolling interests		—			—			—		(2	)		—			(2	)
Net income (loss) attributable to owners of the parent	$	710		$	769		$	1,130	$	(21	)	$	(1,878	)	$	710

	Condensed Statements of Comprehensive Income For the Year Ended December 31, 2014
	CNH Industrial N.V.		Case New Holland Industrial Inc.		Guarantor Subsidiaries		All Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Comprehensive income (loss)	$	347	$	769	$	454	$	(794	)	$	(435	)	$	341
Comprehensive loss attributable to noncontrolling interests		—		—		—		(6	)		—			(6	)
Comprehensive income (loss) attributable to parent	$	347	$	769	$	454	$	(788	)	$	(435	)	$	347

	Condensed Balance Sheets As of December 31, 2014
	CNH Industrial N.V.		Case New Holland Industrial Inc.			Guarantor Subsidiaries		All Other Subsidiaries		Eliminations			Consolidated
	(in millions)
Assets:
Cash and cash equivalents	$	7	$	—		$	39	$	5,117	$	—		$	5,163
Deposits in subsidiaries’ cash management pools		230		—			4,135		—		(4,365	)		—
Receivables		658		1,034			5,479		33,393		(18,038	)		22,526
Inventories, net		233		—			1,711		5,064		—			7,008
Property, plant and equipment, net		75		—			1,186		5,604		—			6,865
Equipment on operating leases		—		—			—		1,518		—			1,518
Investments in unconsolidated subsidiaries and affiliates		245		—			1		359		—			605
Investments in consolidated subsidiaries		10,877		6,965			2,110		1,530		(21,482	)		—
Goodwill and intangibles		50		—			2,824		460		—			3,334
Other		258		(55	)		696		5,164		(1,169	)		4,894
Total Assets	$	12,633	$	7,944		$	18,181	$	58,209	$	(45,054	)	$	51,913
Liabilities and Equity:
Debt	$	5,622	$	5,011		$	3,275	$	34,947	$	(19,261	)	$	29,594
Trade payables		307		18			2,257		6,145		(2,745	)		5,982
Other liabilities		1,782		(69	)		3,272		7,957		(1,566	)		11,376
Total Equity		4,922		2,984			9,377		9,160		(21,482	)		4,961
Total Equity and Liabilities	$	12,633	$	7,944		$	18,181	$	58,209	$	(45,054	)	$	51,913

	Condensed Statements of Cash Flow For the Year Ended December 31, 2014
	CNH Industrial N.V.			Case New Holland Industrial Inc.			Guarantor Subsidiaries			All Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating Activities:
Net income (loss)	$	710		$	769		$	1,130		$	(23	)	$	(1,878	)	$	708
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization		14			—			212			914			—			1,140
Other, net		(429	)		(735	)		(574	)		(1,078	)		1,649			(1,167	)
Net cash provided (used) by operating activities		295			34			768			(187	)		(229	)		681
Investing activities:
Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets		(26	)		—			(163	)		(2,647	)		—			(2,836	)
Net collections from retail receivables and related securitizations		—			—			—			39			—			39
(Deposits in) withdrawals from subsidiaries’ cash management pools		—			—			(757	)		—			757			—
Other, net		294			—			(121	)		(251	)		916			838
Net cash provided (used) by investing activities		268			—			(1,041	)		(2,859	)		1,673			(1,959	)
Financing Activities:
Net increase (decrease) in indebtedness		(205	)		208			(339	)		3,028			(963	)		1,729
Dividends paid		(360	)		(249	)		(337	)		(1,386	)		1,950			(382	)
Other, net		18			7			977			1,447			(2,431	)		18
Net cash provided (used) by financing activities		(547	)		(34	)		301			3,089			(1,444	)		1,365
Effect of foreign exchange rate changes on cash and cash equivalents		(14	)		—			(27	)		(450	)		—			(491	)
Increase (decrease) in cash and cash equivalents		2			—			1			(407	)		—			(404	)
Cash and cash equivalents, beginning of year		5			—			38			5,524			—			5,567
Cash and cash equivalents, end of year	$	7		$	—		$	39		$	5,117		$	—		$	5,163

	Condensed Statements of Operations For the Year Ended December 31, 2013
	CNH Industrial N.V.			Case New Holland Industrial Inc.			Guarantor Subsidiaries			All Other Subsidiaries		Eliminations			Consolidated
	(in millions)
Total Revenues	$	1,940		$	10		$	13,831		$	25,516	$	(7,461	)	$	33,836
Cost and Expenses:
Cost of goods sold		1,633			—			11,016			20,655		(6,753	)		26,551
Selling, general and administrative expenses		136			2			706			2,250		—			3,094
Research and development expenses		12			—			439			771		—			1,222
Restructuring expenses		—			—			1			70		—			71
Interest expense		173			262			136			1,127		(502	)		1,196
Interest compensation to Financial Services		12			—			194			—		(206	)		—
Other, net		487			1			(195	)		35		—			328
		2,453			265			12,297			24,908		(7,461	)		32,462
Income (loss) before income taxes and equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method		(513	)		(255	)		1,534			608		—			1,374
Income taxes		56			(95	)		357			353		—			671
Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method		1,246			1,056			354			522		(3,053	)		125
Net income		677			896			1,531			777		(3,053	)		828
Net income attributable to noncontrolling interests		—			—			—			151		—			151
Net income attributable to owners of the parent	$	677		$	896		$	1,531		$	626	$	(3,053	)	$	677

	Condensed Statements of Comprehensive Income For the Year Ended December 31, 2013
	CNH Industrial N.V.		Case New Holland Industrial Inc.		Guarantor Subsidiaries		All Other Subsidiaries		Eliminations			Consolidated
	(in millions)
Comprehensive income	$	343	$	896	$	1,764	$	473	$	(3,001	)	$	475
Comprehensive income attributable to noncontrolling interests		—		—		—		132		—			132
Comprehensive income attributable to parent	$	343	$	896	$	1,764	$	341	$	(3,001	)	$	343

	Condensed Statements of Cash Flow For the Year Ended December 31, 2013
	CNH Industrial N.V.			Case New Holland Industrial Inc.			Guarantor Subsidiaries			All Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating Activities:
Net income	$	677		$	896		$	1,531		$	777		$	(3,053	)	$	828
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization		10			—			180			913			—			1,103
Other, net		(392	)		(1,154	)		696			(1,276	)		1,717			(409	)
Net cash provided (used) by operating activities		295			(258	)		2,407			414			(1,336	)		1,522
Investing activities:
Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets		(10	)		—			(225	)		(2,431	)		—			(2,666	)
Net additions from retail receivables and related securitizations		—			—			—			(1,468	)		—			(1,468	)
(Deposits in) withdrawals from subsidiaries’ cash management pools		(3	)		—			(770	)		—			773			—
Other, net		(1,929	)		—			(502	)		785			1,992			346
Net cash used by investing activities		(1,942	)		—			(1,497	)		(3,114	)		2,765			(3,788	)
Financing Activities:
Net increase (decrease) in indebtedness		1,602			58			(310	)		1,722			(82	)		2,990
Dividends paid		(365	)		—			(589	)		(1,384	)		1,970			(368	)
Other, net		306			—			—			3,005			(3,317	)		(6	)
Net cash provided (used) by financing activities		1,543			58			(899	)		3,343			(1,429	)		2,616
Effect of foreign exchange rate changes on cash and cash equivalents		—			—			(1	)		19			—			18
Increase (decrease) in cash and cash equivalents		(104	)		(200	)		10			662			—			368
Cash and cash equivalents, beginning of year		109			200			28			4,862			—			5,199
Cash and cash equivalents, end of year	$	5		$	—		$	38		$	5,524		$	—		$	5,567