SUPPLEMENTAL INFORMATION

9 Months Ended

Sep. 30, 2019

The operations and key financial measures and financial analysis differ significantly for manufacturing and distribution businesses and financial services businesses; therefore, management believes that certain supplemental disclosures are important in understanding the consolidated operations and financial results of CNH Industrial. This supplemental data is as follows:

Industrial Activities - The financial information captioned “Industrial Activities” reflects the consolidation of all majority-owned subsidiaries except for Financial Services. Financial Services has been included using the equity method of accounting whereby the net income and net assets of Financial Services are reflected, respectively, in “Equity in income of unconsolidated subsidiaries and affiliates” in the accompanying condensed consolidated statements of operations, and in “Investment in Financial Services” in the accompanying condensed consolidated balance sheets.

Financial Services - The financial information captioned “Financial Services” reflects the consolidation or combination of Financial Services business.

Transactions between the “Industrial Activities” and “Financial Services” have been eliminated to arrive at the condensed consolidated financial statements.



	Statement of Operations
	Industrial Activities						Financial Services
	Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Revenues
Net sales	$	5,892		$	6,245		$	—		$	—
Finance, interest and other income	23			23			487			469
Total Revenues	$	5,915		$	6,268		$	487		$	469
Costs and Expenses
Cost of goods sold	$	5,015		$	5,162		$	—		$	—
Selling, general and administrative expenses	485			481			55			42
Research and development expenses	238			254			—			—
Restructuring expenses	41			8			1			—
Interest expense	85			102			149			138
Other, net	—			24			173			175
Total Costs and Expenses	$	5,864		$	6,031		$	378		$	355
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	51			237			109			114
Income tax (expense) benefit	520			(100		)	(34		)	(31		)
Equity in income of unconsolidated subsidiaries and affiliates	(10		)	2			7			9
Results from intersegment investments	82			92			—			—
Net income	$	643		$	231		$	82		$	92



	Statement of Operations
	Industrial Activities						Financial Services
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Revenues
Net sales	$	18,966		$	20,124		$	—		$	—
Finance, interest and other income	76			73			1,480			1,469
Total Revenues	$	19,042		$	20,197		$	1,480		$	1,469
Costs and Expenses
Cost of goods sold	$	15,732		$	16,606		$	—		$	—
Selling, general and administrative expenses	1,475			1,553			159			153
Research and development expenses	755			743			—			—
Restructuring expenses	75			16			3			—
Interest expense	257			333			451			410
Other, net	34			228			518			524
Total Costs and Expenses	$	18,328		$	19,479		$	1,131		$	1,087
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	714			718			349			382
Income tax (expense) benefit	362			(202		)	(101		)	(110		)
Equity in income of unconsolidated subsidiaries and affiliates	(10		)	28			20			25
Results from intersegment investments	268			297			—			—
Net income	$	1,334		$	841		$	268		$	297



	Balance Sheets
	Industrial Activities				Financial Services
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
	(in millions)
ASSETS
Cash and cash equivalents	$	2,956	$	4,553	$	428	$	478
Restricted cash	108		—		673		772
Trade receivables, net	423		398		30		34
Financing receivables, net	1,321		1,253		19,582		20,252
Inventories, net	7,895		6,510		221		216
Property, plant and equipment, net	5,190		5,899		1		2
Investments in unconsolidated subsidiaries and affiliates	3,244		3,126		223		219
Equipment under operating leases	40		34		1,763		1,740
Goodwill	2,300		2,301		152		152
Other intangible assets, net	745		774		15		14
Deferred tax assets	1,072		635		155		175
Derivative assets	81		81		62		24
Other assets	2,099		1,707		313		323
Total Assets	$	27,474	$	27,271	$	23,618	$	24,401
LIABILITIES AND EQUITY
Debt	$	6,729	$	6,347	$	19,625	$	20,436
Trade payables	5,133		5,771		83		173
Deferred tax liabilities	14		83		290		250
Pension, postretirement and other postemployment benefits	1,356		1,470		18		18
Derivative liabilities	92		89		48		26
Other liabilities	7,990		8,413		724		681
Total Liabilities	$	21,314	$	22,173	$	20,788	$	21,584
Equity	6,126		5,068		2,830		2,817
Redeemable noncontrolling interest	34		30		—		—
Total Liabilities and Equity	$	27,474	$	27,271	$	23,618	$	24,401



	Statements of Cash Flows
	Industrial Activities						Financial Services
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Operating activities:
Net income	$	1,334		$	841		$	268		$	297
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense, net of assets under operating leases and assets sold under buy-back commitments	492			535			2			3
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments	235			293			184			185
Loss on disposal of assets	3			—			—			—
Undistributed loss of unconsolidated subsidiaries	(32		)	(147		)	(20		)	(25		)
Other non-cash items	110			80			40			29
Changes in operating assets and liabilities:
Provisions	(133		)	(88		)	(11		)	3
Deferred income taxes	(503		)	(8		)	58			15
Trade and financing receivables related to sales, net	(38		)	(56		)	96			513
Inventories, net	(1,395		)	(1,186		)	337			338
Trade payables	(416		)	(10		)	(89		)	(36		)
Other assets and liabilities	(506		)	(306		)	51			55
Net cash provided by (used in) operating activities	$	(849	)	$	(52	)	$	916		$	1,377
Investing activities:
Additions to retail receivables	—			—			(3,027		)	(3,040		)
Collections of retail receivables	—			—			3,218			3,029
Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments	10			3			—			—
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and sold under buy-back commitments	(323		)	(288		)	(2		)	(5		)
Expenditures for assets under operating leases and assets sold under buy-back commitments	(404		)	(505		)	(540		)	(454		)
Other	(2		)	696			23			(470		)
Net cash used in investing activities	$	(719	)	$	(94	)	$	(328	)	$	(940	)
Financing activities:
Proceeds from long-term debt	1,315			616			8,671			10,682
Payments of long-term debt	(735		)	(1,242		)	(9,455		)	(11,197		)
Net increase (decrease) in other financial liabilities	(18		)	23			253			196
Dividends paid	(280		)	(240		)	(211		)	(129		)
Other	(45		)	(156		)	20			39
Net cash provided by (used in) financing activities	$	237		$	(999	)	$	(722	)	$	(409	)
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash	(158		)	(207		)	(15		)	(55		)
Decrease in cash and cash equivalents and restricted cash	(1,489		)	(1,352		)	(149		)	(27		)
Cash and cash equivalents and restricted cash, beginning of year	4,553			4,901			1,250			1,299
Cash and cash equivalents and restricted cash, end of period	$	3,064		$	3,549		$	1,101		$	1,272