SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Financial Information by Segment

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 three months ended March 31, 2023 and 2022.


	Three Months Ended March 31,
	2023		2022
	(in millions)
Agriculture	$	570	$	426
Construction	44		32
Unallocated items, eliminations and other	(59)		(29)
Total Adjusted EBIT of Industrial Activities	$	555	$	429
Financial Services Net Income	78		82
Financial Services Income Taxes	29		36
Interest expense of Industrial Activities, net of interest income and eliminations	(4)		(35)
Foreign exchange gains (losses), net of Industrial Activities	(6)		(13)
Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities(1)	1		38
Restructuring expense of Industrial Activities	(1)		(2)
Other discrete items of Industrial Activities(2)	7		(40)
Income (loss) before taxes	$	659	$	495
Income tax (expense) benefit	(173)		(159)
Net income (loss)	$	486	$	336

(1) In the three months ended March 31, 2023, this item includes the pre-tax gain of $6 million as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 modifications of a healthcare plan in the U.S. In the three months ended March 31, 2022, this item includes the pre-tax gain of $30 million as a result of the 2018 modification of a healthcare plan in the U.S. and a pre-tax gain of $6 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.

(2) In the three months ended March 31, 2023 this item included a gain of $13 million in relation to the fair value remeasurement of Augmenta and Bennamann, partially offset by a $6 million loss on the sale of our Russia Financial Services business. In the three months ended March 31, 2022, this item included $44 million of asset write-downs related to our Russian operations, $3.8 million of separation costs incurred in connection with our spin-off of the Iveco Group Business and $7.8 million of income from the two Raven businesses that were held for sale.