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Segment Reporting
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The operating segments through which the Company manages its operations are based on the internal reporting used by the Company’s Chief Operating Decision Maker (“CODM”) to assess performance and make decisions about resource allocation. The segments are organized based on products and services provided by the Company.
CNH Industrial has three operating segments (in continuing operations):
Agriculture designs, manufactures and distributes a full line of farm machinery and implements, including two-wheel and four-wheel drive tractors, crawler tractors, combines, grape and sugar cane harvesters, hay and forage equipment, planting and seeding equipment, soil preparation and cultivation implements, and material handling equipment. Agricultural equipment is sold under the New Holland Agriculture and Case IH brands. Regionally focused brands include: STEYR, for agricultural tractors; Flexi-Coil specializing in tillage and seeding systems; Miller manufacturing application equipment; Kongskilde providing tillage, seeding and hay & forage implements. Further, starting in December 2021, Raven was included in the Agriculture segment bringing a leader in digital agriculture, precision technology and the development of autonomous systems to CNH Industrial.
Construction designs, manufactures and distributes a full line of construction equipment including excavators, crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, and compact track loaders. Construction equipment is sold under the CASE Construction Equipment, New Holland Construction and Eurocomach brands.
Financial Services offers retail note and lease financing to end-use customers for the purchase of new and used agricultural and construction equipment and components sold through CNH Industrial brands' dealer network, as well as revolving charge account financing and other financial services. Financial Services also provides wholesale financing to CNH Industrial brand dealers and distributors. Further, Financial Services provides trade receivables factoring to CNH Industrial companies. The European operations of CNH Industrial Financial Services are supported by the Iveco Group's Financial Services segment. CNH Industrial Financial Services provides financial services to Iveco Group companies in the North America, South America and Asia Pacific regions.
The activities carried out by the two industrial segments Agriculture, and Construction, as well as corporate functions, are collectively referred to as “Industrial Activities”.
Revenues for each reported segment are those directly generated by or attributable to the segment as a result of its business activities and include revenues from transactions with third parties as well as those deriving from transactions with other segments, recognized at normal market prices. Segment expenses represent expenses deriving from each segment’s business activities both with third parties and other operating segments or which may otherwise be directly attributable to it. Expenses deriving from business activities with other segments are recognized at normal market prices.
With reference to Industrial Activities' segments, the CODM assesses segment performance and makes decisions about resource allocation based upon Adjusted EBIT. The Company believes Adjusted EBIT more fully reflects Industrial Activities segments' profitability. Adjusted EBIT of Industrial Activities is defined as net income (loss) before income taxes, Financial Services' results, Industrial Activities’ interest expenses (net), foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring expenses, and certain non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities.
With reference to Financial Services, the CODM assesses the performance of the segment and makes decisions about resource allocation on the basis of net income prepared in accordance with U.S. GAAP.
The following table includes the reconciliation of Adjusted EBIT for Industrial Activities to net income, the most comparable U.S. GAAP financial measure, for the years ended December 31, 2022, 2021, and 2020.
Years Ended December 31,
202220212020
(in millions)
Agriculture$2,456 $1,810 $880 
Construction124 90 (184)
Unallocated items, eliminations, and other(147)(137)(113)
Total Adjusted EBIT of Industrial Activities2,433 1,763 583 
Financial Services Net Income338 349243 
Financial Services Income Taxes125 107 85 
Interest expense of Industrial Activities, net of interest income and eliminations(119)(118)(140)
Foreign exchange (gains) losses, net of Industrial Activities(59)(1)(12)
Finance and non-service component of Pension and other post-employment benefit costs of Industrial Activities(1)
124 143 (9)
Restructuring expenses of Industrial Activities(31)(35)(22)
Goodwill impairment charge— — (585)
Other discrete items of Industrial Activities(2)
(25)(178)(256)
Income (loss) before taxes2,786 2,030 (113)
Income tax benefit (expense)(747)(229)(85)
Net (loss) from discontinued operations$— $(41)$(240)
Net Income (loss)$2,039 $1,760 $(438)
(1) In the years ended December 31, 2022, 2021 and 2020 this item includes the pre-tax gain of $90 million, $119 million and $119 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from 2018 modification of a healthcare plan in the U.S. In the year ended December 31, 2022 and December 31, 2021, this item also includes a pre-tax gain of $24 million and $5 million as a result of the amortization over 4 years of the $101 million positive impact from 2021 modifications of a healthcare plan in the U.S. which occurred in the fourth quarter of 2021. In the year ended December 31, 2020, this item also included a pre-tax non-cash settlement charge of $124 million, respectively, resulting from the purchase of annuity contracts to settle a portion of the outstanding U.S. pension obligations.
(2) In the year ended December 31, 2022, this item included $43 million of asset write-downs, $25 million of separation costs incurred in connection with spin-off of the Iveco Group Business and $22 million of costs related to the activity of the Raven segments held for sale, including the loss on the sale of the Engineered Films and Aerostar divisions, partially offset by a $65 million gain on the sale of our Canada parts depot. In the year ended December 31, 2021, this item included $133 million separation costs in connection with the spin-off of the Iveco Group business and a charge of $57 million for transaction costs related to the acquisition of Raven Industries, Inc., partially offset by a gain of $12 million for a fair value adjustment of Monarch Tractor investments. In the year ended December 31, 2020, this item mainly includes impairment of intangible and other long-lived assets.
The following table provides key segment information for the Financial Services segment:
Years Ended December 31,
202220212020
(in millions)
Financial Services Net Income (from continuing operations)$338 $349 $243 
Financial Services Interest Revenue (1)
$1,149 $918 $964 
Financial Services Interest Expense$601 $409 $485 
(1) This amount excludes interest included in operating leases rentals.
There are no segment assets reported to the CODM for assessing performance and allocating resources. However, the CODM reviews expenditures for long-lived assets by operating segment, therefore, this information is presented below as well.
A summary of additional operating segment information as of and for the years ended December 31, 2022, 2021, and 2020 is as follows:
 
Years Ended December 31,
202220212020
(in millions)
Revenues:
Agriculture$17,969 $14,721 $10,923 
Construction3,572 $3,081 $2,170 
Eliminations and other— $— $(10)
Net sales of Industrial Activities21,541 $17,802 $13,083 
Financial Services1,996 $1,672 $1,660 
Eliminations and other14 $22 $36 
Total Revenues$23,551 $19,496 $14,779 
Depreciation and Amortization (*):
Agriculture$287 $254 $248 
Construction38 $38 $46 
Other activities and adjustments— $1 $2 
Depreciation and amortization of Industrial Activities 325 $293 $296 
Financial Services2 $2 $2 
Depreciation and amortization$327 $295 $298 
Expenditures for long-lived assets (**):
Agriculture$393 $307 $185 
Construction63 $53 $42 
Other activities— $— $2 
Expenditures for long-lived assets of Industrial Activities456 $360 $229 
Financial Services5 $5 $3 
Expenditures for long-lived assets$461 $365 $232 

(*) Excluding equipment on operating leases
(**) Excluding equipment on operating leases and right of use assets
Geographic Information
CNH Industrial has its principal office in London, England, U.K. Revenues earned in the U.K. from external customers were $557 million, $548 million, and $428 million for the years ended December 31, 2022, 2021, and 2020, respectively. Revenues earned in the rest of the world from external customers were $22,994 million, $18,948 million, and $14,351 million for the years ended December 31, 2022, 2021, and 2020, respectively. The following highlights revenues earned from external customers in the rest of the world by destination:
 
202220212020
(in millions)
United States$8,189 $6,387 $5,054 
Italy592 556 427 
France1,123 1,084 972 
Brazil3,904 2,414 1,553 
Germany674 564 479 
Canada1,530 1,341 918 
Australia982 857 644 
Spain263 283 231 
Argentina565 418 346 
Poland449 425 267 
Other4,723 4,619 3,460 
Total Revenues from external customers in the rest of world$22,994 $18,948 $14,351 
Total long-lived tangible and intangible assets located in the U.K. were $128 million and $132 million at December 31, 2022 and 2021, respectively, and the total of such assets located in the rest of the world totaled $7,357 million and $7,498 million at December 31, 2022 and 2021, respectively. The following highlights long-lived tangible and intangible assets by geography in the rest of the world:
At December 31,
20222021
(in millions)
United States$5,669 $5,801 
Italy437 424 
France48 48 
Germany17 19 
Spain1 1 
Canada548 568 
Brazil162 127 
China55 61 
Other420 449 
Total Long-lived assets in the rest of the world$7,357 $7,498 
In 2022, 2021, and 2020, no single external customer of CNH Industrial accounted for 10 percent or more of consolidated revenues.