SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2020 and 2019.


	Three Months Ended June 30, 2020
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other		Total Industrial Activities		Financial Services		Eliminations		Total
	(in millions)
Revenues	$	2,541	$	420	$	1,739	$	763	$	(313)	$	5,150	$	441	$	(13)	$	5,578
Net income (loss)⁽¹⁾											308		53		—		361
Add back:
Income tax expense (benefit)											(60)		20		—		(40)
Interest expense of Industrial Activities, net of interest income and eliminations											59		—		—		59
Foreign exchange losses, net											7		—		—		7
Finance and non-service component of Pension and OPEB costs⁽²⁾											(26)		—		—		(26)
Adjustments:
Restructuring expenses	5		1		1		—		—		7		—		—		7
Nikola investment fair value adjustment	—		—		—		—		(1,475)		(1,475)		—		—		(1,475)
Goodwill impairment charge	—		—		—		—		585		585		—		—		585
Other discrete items	176		72		289		—		—		537		—		—		537
Adjusted EBIT	$	203	$	(87)	$	(156)	$	32	$	(50)	$	(58)	$	73	$	—	$	15
Depreciation and amortization	61		12		46		30		2		151		1		—		152
Depreciation of assets on operating lease and assets sold with buy-back commitment	1		—		66		—		—		67		64		—		131
Adjusted EBITDA	$	265	$	(75)	$	(44)	$	62	$	(48)	$	160	$	138	$	—	$	298

(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.


	Six Months Ended June 30, 2020
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other		Total Industrial Activities		Financial Services		Eliminations		Total
	(in millions)
Revenues	$	4,785	$	842	$	3,760	$	1,516	$	(760)	$	10,143	$	930	$	(34)	$	11,039
Net income (loss)⁽¹⁾											174		133		—		307
Add back:
Income tax expense (benefit)											(113)		50		—		(63)
Interest expense of Industrial Activities, net of interest income and eliminations											118		—		—		118
Foreign exchange losses, net											5		—		—		5
Finance and non-service component of Pension and OPEB costs⁽²⁾											(56)		—		—		(56)
Adjustments:
Restructuring expenses	7		2		3		—		—		12		—		—		12
Nikola investment fair value adjustment	—		—		—		—		(1,475)		(1,475)		—		—		(1,475)
Goodwill impairment charge	—		—		—		—		585		585		—		—		585
Other discrete items	176		72		289		—		7		544		—		—		544
Adjusted EBIT	$	227	$	(170)	$	(212)	$	63	$	(114)	$	(206)	$	183	$	—	$	(23)
Depreciation and amortization	125		25		95		59		2		306		1		—		307
Depreciation of assets on operating lease and assets sold with buy-back commitment	1		—		131		—		—		132		127		—		259
Adjusted EBITDA	$	353	$	(145)	$	14	$	122	$	(112)	$	232	$	311	$	—	$	543

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

(2)This item includes the pre-tax gain of $60 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 June 30, 2019
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other		Total Industrial Activities		Financial Services		Eliminations		Total
	(in millions)
Revenues	$	3,095	$	757	$	2,698	$	1,133	$	(615)	$	7,068	$	519	$	(20)	$	7,567
Net income⁽¹⁾											336		91		—		427
Add back:
Income tax expense											104		31		—		135
Interest expense of Industrial Activities, net of interest income and eliminations											66		—		—		66
Foreign exchange losses, net											11		—		—		11
Finance and non-service component of Pension and OPEB costs⁽²⁾											(16)		—		—		(16)
Adjustments:
Restructuring expenses	15		4		6		—		1		26		2		—		28
Adjusted EBIT	$	341	$	25	$	100	$	102	$	(41)	$	527	$	124	$	—	$	651
Depreciation and amortization	69		15		47		31		—		162		1		—		163
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		79		—		—		79		59		—		138
Adjusted EBITDA	$	410	$	40	$	226	$	133	$	(41)	$	768	$	184	$	—	$	952

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


	Six Months Ended June 30, 2019
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other		Total Industrial Activities		Financial Services		Eliminations		Total
	(in millions)
Revenues	$	5,585	$	1,397	$	5,112	$	2,169	$	(1,189)	$	13,074	$	993	$	(43)	$	14,024
Net income⁽¹⁾											505		186		—		691
Add back:
Income tax expense											158		67		—		225
Interest expense of Industrial Activities, net of interest income and eliminations											119		—		—		119
Foreign exchange losses, net											20		—		—		20
Finance and non-service component of Pension and OPEB costs⁽²⁾											(31)		—		—		(31)
Adjustments:
Restructuring expenses	18		4		11		—		1		34		2		—		36
Adjusted EBIT	$	509	$	38	$	151	$	198	$	(91)	$	805	$	255	$	—	$	1,060
Depreciation and amortization	144		29		94		63		—		330		2		—		332
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		158		—		—		158		124		—		282
Adjusted EBITDA	$	653	$	67	$	403	$	261	$	(91)	$	1,293	$	381	$	—	$	1,674

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