Supplemental Information

12 Months Ended

Dec. 31, 2019

The operations, 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 information does not purport to represent the operations of each group as if each group were to operate on a standalone basis. For example, Industrial Activities presents the cost of “interest free” periods for wholesale receivables as Interest Compensation to Financial Services and not as a reduction of sales in their Statements of Operations. 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 business. Financial Services business has been included using the equity method of accounting whereby the net income and net assets of Financial Services business are reflected, respectively, in “Equity in income of unconsolidated subsidiaries and affiliates” in the accompanying statement of operations, and in “Investments in unconsolidated subsidiaries and affiliates” in the accompanying 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 consolidated financial statements.

Certain prior period balances have been reclassified to conform to the current period presentation resulting from the adoption of new accounting pronouncements.



	Statement of Operations
	Industrial Activities									Financial Services
	2019			2018			2017			2019			2018			2017
	(in millions)
Revenues
Net sales	$	26,149		$	27,831		$	25,769		$	—		$	—		$	—
Finance, interest and other income	98			100			122			2,011			1,989			2,028
Total Revenues	$	26,247		$	27,931		$	25,891		$	2,011		$	1,989		$	2,028
Costs and Expenses
Cost of goods sold	$	21,832		$	22,958		$	21,572		$	—		$	—		$	—
Selling, general & administrative expenses	1,998			2,136			2,056			218			215			259
Research and development expenses	1,030			1,061			957			—			—			—
Restructuring expenses	105			61			90			4			—			3
Interest expense	380			468			604			597			558			555
Other, net	187			267			420			737			730			744
Total Costs and Expenses	$	25,532		$	26,951		$	25,699		$	1,556		$	1,503		$	1,561
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates	715			980			192			455			486			467
Income tax (expense)	391			(286		)	(415		)	(120		)	(131		)	(42		)
Equity income of unconsolidated subsidiaries and affiliates	(13		)	20			61			26			30			27
Results from intersegment investments	361			385			452			—			—			—
Net income (loss)	$	1,454		$	1,099		$	290		$	361		$	385		$	452



	Balance Sheets
	Industrial Activities				Financial Services
	2019		2018		2019		2018
	(in millions)
ASSETS
Cash and cash equivalents	$	4,407	$	4,553	$	468	$	478
Restricted cash	120		—		778		772
Trade receivables, net	416		398		28		34
Financing receivables, net	1,223		1,253		20,657		20,252
Inventories, net	6,907		6,510		175		216
Property, plant and equipment, net	5,268		5,899		1		2
Investments in unconsolidated subsidiaries and affiliates	3,213		3,126		237		219
Equipment under operating leases	51		34		1,806		1,740
Goodwill	2,383		2,301		155		152
Other intangible assets, net	790		774		16		14
Deferred tax assets	1,090		635		178		175
Derivative assets	34		81		47		24
Other assets	2,148		1,707		319		323
TOTAL ASSETS	$	28,050	$	27,271	$	24,865	$	24,401
LIABILITIES AND EQUITY
Debt	6,558		6,347		20,748		20,436
Trade payables	5,490		5,771		191		173
Deferred tax liabilities	19		83		286		250
Pension, postretirement and other postemployment benefits	1,558		1,470		20		18
Derivative liability	97		89		32		26
Other liabilities	8,172		8,413		771		681
TOTAL LIABILITIES	$	21,894	$	22,173	$	22,048	$	21,584
Equity	6,121		5,068		2,817		2,817
Redeemable noncontrolling interest	35		30		—		—
TOTAL LIABILITIES AND EQUITY	$	28,050	$	27,271	$	24,865	$	24,401



	Cash Flow Statements
	Industrial Activities									Financial Services
	2019			2018			2017			2019			2018			2017
	(in millions)
Operating activities:
Net income (loss)	$	1,454		$	1,099		$	290		$	361		$	385		$	452
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization expense, net of assets under operating lease and assets sold under buy-back commitments	657			699			720			3			4			5
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments	310			387			328			245			247			297
(Gain) loss from disposal of assets	(20		)	2			—			—			—			—
Loss on repurchase of Notes	27			22			56			—			—			8
Undistributed income (loss) of unconsolidated subsidiaries	51			(93		)	(107		)	(26		)	(31		)	(27		)
Other non-cash items	151			111			188			58			47			87
Changes in operating assets and liabilities:
Provisions	(85		)	(54		)	224			(8		)	6			(6		)
Deferred income taxes	(507		)	10			219			35			38			(95		)
Trade and financing receivables related to sales, net	(41		)	35			147			(414		)	(207		)	(823		)
Inventories, net	(65		)	(396		)	207			505			508			475
Trade payables	(200		)	280			359			18			(8		)	8
Other assets and liabilities	(391		)	(319		)	160			92			46			50
Net cash provided by operating activities	$	1,341		$	1,783		$	2,791		$	869		$	1,035		$	431
Investing activities:
Additions to retail receivables	—			—			—			(4,145		)	(4,269		)	(4,078		)
Collections of retail receivables	—			—			—			4,219			4,016			4,384
Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments	61			7			17			—			—			—
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments	(633		)	(550		)	(488		)	(4		)	(8		)	(4		)
Expenditures for assets under operating lease and assets sold under buy-back commitments	(568		)	(625		)	(1,079		)	(757		)	(719		)	(664		)
Other	123			720			(275		)	(303		)	(532		)	272
Net cash used in investing activities	$	(1,017	)	$	(448	)	$	(1,825	)	$	(990	)	$	(1,512	)	$	(90	)
Financing activities:
Proceeds from long-term debt	1,315			629			2,006			11,882			15,582			13,890
Payments of long-term debt	(1,204		)	(1,684		)	(2,580		)	(11,721		)	(15,237		)	(14,222		)
Net increase (decrease) in other financial liabilities	(44		)	27			(308		)	318			359			362
Dividends paid	(283		)	(243		)	(168		)	(384		)	(264		)	(357		)
Other	(57		)	(156		)	(25		)	20			40			46
Net cash provided by (used in) financing activities	(273		)	(1,427		)	(1,075		)	115			480			(281		)
Effect of foreign exchange rate changes on cash and cash equivalents	(77		)	(256		)	361			2			(52		)	34
Increase (decrease) in cash and cash equivalents	(26		)	(348		)	252			(4		)	(49		)	94
Cash and cash equivalents, beginning of year	4,553			4,901			4,649			1,250			1,299			1,205
Cash and cash equivalents, end of year	$	4,527		$	4,553		$	4,901		$	1,246		$	1,250		$	1,299