SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Summary of Financial Information by Segment

The following tables summarize selected financial information by segment as well as the reconciliation from consolidated net income (loss) under U.S. GAAP to Adjusted EBIT and Adjusted EBITDA for the three and nine months ended September 30, 2019 and 2018.

	Three Months Ended September 30, 2019
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	2,446	$	664	$	2,331	$	940	$	(489	)	$	5,892		$	487	$	(19	)	$	6,360
Net income(1)												561			82		—			643
Add back:
Income tax expense												(520		)	34		—			(486		)
Interest expense of Industrial Activities, net of interest income and eliminations												62			—		—			62
Foreign exchange losses, net												19			—		—			19
Finance and non-service component of Pension and OPEB costs(2)												(16		)	—		—			(16		)
Adjustments:
Restructuring expenses	9		18		9		5		—			41			1		—			42
Other discrete items(3)	—		—		135		—		2			137			—		—			137
Adjusted EBIT	$	152	$	10	$	70	$	81	$	(29	)	$	284		$	117	$	—		$	401
Depreciation and amortization	69		13		49		29		2			162			—		—			162
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		77		—		—			77			60		—			137
Adjusted EBITDA	$	221	$	23	$	196	$	110	$	(27	)	$	523		$	177	$	—		$	700

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) This item includes the pre-tax gain of $30 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of certain healthcare benefits in the U.S.

(3) In the three months ended September 30, 2019, this item includes other asset optimization charges of $135 million due to actions included in the 'Transform 2 Win' Strategic Business Plan announced at the Company's Capital Markets Day on September 3, 2019.

	Nine Months Ended September 30, 2019
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	8,031	$	2,061	$	7,443	$	3,109	$	(1,678	)	$	18,966		$	1,480	$	(62	)	$	20,384
Net income(1)												1,066			268		—			1,334
Add back:
Income tax expense												(362		)	101		—			(261		)
Interest expense of Industrial Activities, net of interest income and eliminations												181			—		—			181
Foreign exchange losses, net												39			—		—			39
Finance and non-service component of Pension and OPEB costs(2)												(47		)	—		—			(47		)
Adjustments:
Restructuring expenses	27		22		20		5		1			75			3		—			78
Other discrete items(3)	—		—		135		—		2			137			—		—			137
Adjusted EBIT	$	661	$	48	$	221	$	279	$	(120	)	$	1,089		$	372	$	—		$	1,461
Depreciation and amortization	213		42		143		92		2			492			2		—			494
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		235		—		—			235			184		—			419
Adjusted EBITDA	$	874	$	90	$	599	$	371	$	(118	)	$	1,816		$	558	$	—		$	2,374

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) This item includes the pre-tax gain of $90 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of certain healthcare benefits in the U.S.

(3) In the nine months ended September 30, 2019, this item includes other asset optimization charges of $135 million due to actions included in the 'Transform 2 Win' Strategy.

	Three Months Ended September 30, 2018
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	2,636	$	726	$	2,404	$	972	$	(493	)	$	6,245		$	469	$	(28	)	$	6,686
Net income(1)												139			92		—			231
Add back:
Income tax expense												100			31		—			131
Interest expense of Industrial Activities, net of interest income and eliminations												79			—		—			79
Foreign exchange losses, net												12			—		—			12
Finance and non-service component of Pension and OPEB costs(2)												(17		)	—		—			(17		)
Adjustments:
Restructuring expenses	3		—		5		—		—			8			—		—			8
Adjusted EBIT	$	196	$	26	$	68	$	82	$	(51	)	$	321		$	123	$	—		$	444
Depreciation and amortization	75		15		53		31		—			174			—		—			174
Depreciation of assets on operating lease and assets sold with buy-back commitment	1		—		95		—		—			96			59		—			155
Adjusted EBITDA	$	272	$	41	$	216	$	113	$	(51	)	$	591		$	182	$	—		$	773

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) This item includes the pre-tax gain of $30 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of certain healthcare benefits in the U.S.

	Nine Months Ended September 30, 2018
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	8,527	$	2,207	$	7,788	$	3,376	$	(1,774	)	$	20,124		$	1,469	$	(89	)	$	21,504
Net income(1)												544			297		—			841
Add back:
Income tax expense												202			110		—			312
Interest expense of Industrial Activities, net of interest income and eliminations												260			—		—			260
Foreign exchange losses, net												134			—		—			134
Finance and non-service component of Pension and OPEB costs(2)												(3		)	—		—			(3		)
Adjustments:
Restructuring expenses	4		—		11		1		—			16			—		—			16
Adjusted EBIT	$	778	$	59	$	209	$	285	$	(178	)	$	1,153		$	407	$	—		$	1,560
Depreciation and amortization	229		46		161		98		1			535			3		—			538
Depreciation of assets on operating lease and assets sold with buy-back commitment	2		—		291		—		—			293			185		—			478
Adjusted EBITDA	$	1,009	$	105	$	661	$	383	$	(177	)	$	1,981		$	595	$	—		$	2,576

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2)

This item includes the pre-tax gain of $50 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of certain healthcare benefits in the U.S.