SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2020

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 months ended March 31, 2020 and 2019.


	Three Months Ended March 31, 2020
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other		Total Industrial Activities		Financial Services		Eliminations		Total
	(in millions)
Revenues	$	2,244	$	422	$	2,021	$	753	$	(447)	$	4,993	$	489	$	(21)	$	5,461
Net income (loss)⁽¹⁾											(134)		80		—		(54)
Add back:
Income tax expense											(53)		30		—		(23)
Interest expense of Industrial Activities, net of interest income and eliminations											59		—		—		59
Foreign exchange losses, net											(2)		—		—		(2)
Finance and non-service component of Pension and OPEB costs⁽²⁾											(30)		—		—		(30)
Adjustments:
Restructuring expenses	2		1		2		—		—		5		—		—		5
Other discrete items	—		—		—		—		7		7		—		—		7
Adjusted EBIT	$	24	$	(83)	$	(56)	$	31	$	(64)	$	(148)	$	110	$	—	$	(38)
Depreciation and amortization	64		13		49		29		—		155		—		—		155
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		65		—		—		65		63		—		128
Adjusted EBITDA	$	88	$	(70)	$	58	$	60	$	(64)	$	72	$	173	$	—	$	245

(1)For Industrial Activities, net loss 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.


	Three Months Ended March 31, 2019
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other		Total Industrial Activities		Financial Services		Eliminations		Total
	(in millions)
Revenues	$	2,490	$	640	$	2,414	$	1,036	$	(574)	$	6,006	$	474	$	(23)	$	6,457
Net income⁽¹⁾											169		95		—		264
Add back:
Income tax expense											54		36		—		90
Interest expense of Industrial Activities, net of interest income and eliminations											53		—		—		53
Foreign exchange losses, net											9		—		—		9
Finance and non-service component of Pension and OPEB costs⁽²⁾											(15)		—		—		(15)
Adjustments:
Restructuring expenses	3		—		5		—		—		8		—		—		8
Adjusted EBIT	$	168	$	13	$	51	$	96	$	(50)	$	278	$	131	$	—	$	409
Depreciation and amortization	75		14		47		32		—		168		1		—		169
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		79		—		—		79		65		—		144
Adjusted EBITDA	$	243	$	27	$	177	$	128	$	(50)	$	525	$	197	$	—	$	722

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