XML 61 R9.htm IDEA: XBRL DOCUMENT v3.22.4
Presentation
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Presentation Presentation
CNH Industrial N.V. (“CNH Industrial” or the “Company”) is incorporated in, and under the laws of, the Netherlands. CNH Industrial is a leading company in the capital goods sector that, through its various businesses, designs, produces and sells agricultural equipment and construction equipment. In addition, CNH Industrial’s Financial Services segment offers an array of financial products and services, including retail financing for the purchase or lease of new and used CNH Industrial and other manufacturers’ products and other retail financing programs and wholesale financing to dealers.
Subsequent to December 31, 2021, the Company had three reportable segments consisting of: (i) Agriculture, which designs, produces and sells agricultural equipment (ii) Construction, which designs, produces and sells construction equipment and (iii) Financial Services, which provides financial services to the customers of the Company’s products. The Company’s worldwide agricultural equipment and construction equipment segments as well as corporate functions are collectively referred to as “Industrial Activities”.
The Company was formed as a result of the mergers of Fiat Industrial S.p.A. and its subsidiary CNH Global N.V. with and into CNH Industrial, effective September 29, 2013.
Spin-off of On-Highway Business
Until December 31, 2021, CNH Industrial N.V. owned and controlled the Commercial and Specialty Vehicles business, the Powertrain business, and the related Financial Services business (together the “Iveco Group Business” or the “On-Highway Business”), as well as the Agriculture business, the Construction business, and the related Financial Services business (collectively, the “Off-Highway Business”). Effective January 1, 2022, the Iveco Group Business was separated from CNH Industrial N.V. by way of a demerger under Dutch law (the "Demerger") to Iveco Group N.V. (the "Iveco Group"), and the Iveco Group became a public listed company independent from CNH Industrial with its common shares trading on the Euronext Milan, a regulated market organized and managed by Borsa Italiana S.p.A. In connection with the Demerger, shares of Iveco Group N.V. were distributed to shareholders in CNH Industrial N.V. on a pro rata basis. The On-Highway Business' financial results for the periods prior to the Demerger have been reflected in our Consolidated Statement of Operations, retrospectively, as discontinued operations. Additionally, the related assets and liabilities associated with the On-Highway Business are classified as discontinued operations within Assets Held for Distribution and Liabilities Held for Distribution in the prior year of the Consolidated Balance Sheet. Pursuant to the terms of the deeds of demerger entered into between CNH Industrial N.V. and Iveco Group N.V. on January 1, 2022, assets related to the On-Highway Business were transferred to, and liabilities related to the On-Highway Business were retained or assumed by, Iveco Group N.V.
In order to present the financial effects of a Discontinued Operation, revenues and expenses arising from intercompany transactions were eliminated. Eliminations from transactions between Continuing and Discontinued Operations are allocated in full to Discontinued Operations. However, no profit or loss is recognized for intercompany transactions within the Consolidated Statement of Operations. The amounts of income statement items included in Discontinued Operations is detailed in the following sections.
Intercompany transactions between Continuing and Discontinued Operations have been eliminated in the consolidated statement of financial position. The net balance between Assets held for distribution and Liabilities held for distribution represents the net equity of the Discontinued Operations. This amount corresponds to the reduction in the total equity of CNH Industrial due to the Demerger that occurred on January 1, 2022.
All cash flows from Discontinued Operations are reported in the appropriate items for operating activities, investing activities and financing activities in the Statement of Cash Flows. The cash flows represent those arising from transactions with third parties.
The following table presents the assets and liabilities of the Iveco Group Business classified as Assets Held for Distribution and Liabilities Held for Distribution as of December 31, 2021.
December 31, 2021
(in millions)
ASSETS HELD FOR DISTRIBUTION
Cash and cash equivalents$961 
Restricted cash55 
Trade receivables, net165 
Financing receivables, net3,284 
Inventories, net3,005 
Property, plant and equipment, net3,221 
Investments in unconsolidated subsidiaries and affiliates613 
Equipment under operating leases66 
Goodwill, net80 
Other intangible assets, net141 
Deferred tax assets1,059 
Other assets896 
Total Assets Held for Distribution$13,546 
LIABILITIES HELD FOR DISTRIBUTION
Debt2,343 
Trade payables3,366 
Deferred tax liabilities14 
Pension, postretirement and other postemployment benefits560 
Other liabilities5,609 
Total Liabilities Held for Distribution$11,892 

Details of Statement of Operations line items included in Discontinued Operations, after the eliminations, for the years ended
December 31, 2021, and 2020 are as follows:
20212020
(in millions)
Revenues
Net sales$14,743 $11,772 
Finance, interest and other income194 140 
Total Revenues$14,937 $11,912 
Costs and Expenses
Cost of goods sold12,765 10,745 
Selling, general and administrative expenses989 859 
Research and development expenses594 439 
Restructuring expenses39 27 
Interest expense129 107 
Other, net380 61 
Total Costs and Expenses$14,896 $12,238 
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates41 (326)
Income tax (expense) benefit(113)135 
Equity in income of unconsolidated subsidiaries and affiliates31 (49)
Net Income (loss) from discontinued operations$(41)$(240)
Cash flows from Discontinued Operations from the years ended December 31, 2021 and 2020 are as follows:
20212020
(in millions)
Operating activities:
Net income (loss) of discontinued operations$(41)$(240)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization expense, net of depreciation and amortization of assets under operating leases and assets sold under buy-back commitments316 332 
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments296 302 
(Gain) Loss on disposal of assets(44)1 
Undistributed income of unconsolidated subsidiaries(13)51 
Other non-cash items197 72 
Changes in operating assets and liabilities:
Provisions87 90 
Deferred income taxes36 (192)
Trade and financing receivables related to sales, net54 118 
Inventories, net(216)678 
Trade payables25 87 
Other assets and liabilities187 42 
Cash flow from operating activities of discontinued operation$884 $1,341 
Investing activities:
Additions to retail receivables(42)(12)
Collections of retail receivables50 31 
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments— 3 
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments(348)(252)
Expenditures for assets under operating leases and assets sold under buy-back commitments(763)(752)
Other672 187 
Cash flow provided by (used in) investing activities of discontinued operation$(431)$(795)
Financing activities:
Proceeds from long-term debt3,459 3,119 
Payments of long-term debt(3,602)(3,285)
Net increase (decrease) in other financial liabilities97 (241)
Dividends paid— — 
Cash flow from financing activities of discontinued operation$(46)$(407)