SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2023 and 2022 (in millions of dollars):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Agriculture	$	672	$	666	$	2,063	$	1,755
Construction	60		24		176		90
Unallocated items, eliminations and other	(75)		(20)		(205)		(92)
Total Adjusted EBIT of Industrial Activities	657		670		2,034		1,753
Financial Services Net income (loss)	86		86		258		263
Financial Services Income Taxes	34		32		89		106
Interest expense of Industrial Activities, net of interest income and eliminations	(10)		(27)		(36)		(97)
Foreign exchange gains (losses), net of Industrial Activities	(21)		(14)		(27)		(14)
Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities(1)	—		35		2		112
Restructuring expense of Industrial Activities	(5)		(11)		(8)		(19)
Other discrete items(2)	—		(20)		(10)		(78)
Income (loss) before taxes	741		751		2,302		2,026
Income tax (expense) benefit	(171)		(192)		(536)		(579)
Net income (loss)	$	570	$	559	$	1,766	$	1,447

(1) In the three and nine months ended September 30, 2023 and 2022, this item includes the pre-tax gain of $6 million and $18 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 and nine months ended September 30, 2022, this item includes the pre-tax gain of $30 million and $90 million as a result of the 2018 modification of a healthcare plan in the U.S.

(2) In the three months ended September 30, 2023 this item did not include any discrete items, while the three months ended September 30, 2022 included $14 million of costs related to the Raven segments held for sale and $7 million of spin off costs related to the Iveco Group business. The nine months ended September 30, 2023 included a loss of $23 million on the sale of CNH Industrial Russia and CNH Capital Russia businesses, partially offset by a gain of $13 million for the fair value remeasurement of Augmenta and Bennamann. The nine months ended September 30, 2022 included $43 million of asset write-downs related to the Industrial Activities of our Russian Operations, $22 million of costs related to the Raven segments held for sale, and $13 million of spin off costs related to the Iveco Group business.