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Segment Reporting
 12 Months Ended
Dec. 31, 2023
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 has three operating segments:
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. We are also a leading provider of technology dedicated to Precision Agriculture. 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. The Raven brand supports Precision Agriculture, digital technology and the development of autonomous systems. Hemisphere, acquired in 2023, provides high-performance satellite positioning technology for the agriculture and construction industries.
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 along with a wide variety of attachments. Construction equipment is sold under the CASE Construction Equipment, New Holland Construction and Eurocomach brands.
Financial Services provides and administers financing to end-use customers for the purchase of new and used agricultural and construction equipment and components sold through CNH's dealer network, as well as revolving charge account financing and other financial services. Financial Services also provides wholesale financing to CNH dealers and distributors primarily to finance inventories of equipment for those dealers. Further, Financial Services provides trade receivables factoring services to CNH subsidiaries. The European Financial Services operations are supported by the Iveco Group's Financial Services segment. Financial Services also provides financial services to Iveco Group companies in the North America, South America and Asia Pacific regions.
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 the Agriculture and Construction segments, the CODM assesses segment performance and makes decisions about resource allocation based upon Adjusted EBIT. The Company believes Adjusted EBIT more fully reflects Agriculture and Construction segments profitability. Adjusted EBIT of the Agriculture and Construction segments is defined as net income (loss) before income taxes, Financial Services' results, Industrial Activities’ segments 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' segments to net income, the most comparable U.S. GAAP financial measure, for the years ended December 31, 2023, 2022 and 2021.
Years Ended December 31,
(in millions of dollars)
202320222021
Agriculture$2,732 $2,456 $1,810 
Construction238 124 90 
Unallocated items, eliminations, and other(1)
(240)(147)(137)
Financial Services Net Income371 338349 
Financial Services Income Taxes136 125 107 
Interest expense of Industrial Activities, net of interest income and eliminations(76)(119)(118)
Foreign exchange (gains) losses, net of Industrial Activities(105)(59)(1)
Finance and non-service component of Pension and other post-employment benefit costs of Industrial Activities(2)
(4)124 143 
Restructuring expenses of Industrial Activities(65)(31)(35)
Other discrete items of Industrial Activities(3)
(10)(25)(178)
Income (loss) before taxes2,977 2,786 2,030 
Income tax benefit (expense)(594)(747)(229)
Net (loss) from discontinued operations— — (41)
Net Income (loss)$2,383 $2,039 $1,760 
(1) Unallocated items, eliminations and other primarily includes certain corporate costs and other operating expenses and incomes not allocated to segments’ results.
(2) In the years ended December 31, 2023, 2022 and 2021, this item includes a pre-tax gain of $24 million, $24 million and $5 million, respectively as a result of the amortization over 4 years of the $101 million positive impact from the 2021 modifications of a healthcare plan in the U.S. In the years ended December 31, 2022 and 2021 this item includes the pre-tax gain of $90 million and $119 million, respectively 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.
(3) In the year ended December 31, 2023, this item includes a loss of $23 million on the sale of the 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. In the year ended December 31, 2022, this item included $43 million of asset write-downs, $25 million of separation costs incurred in a connection with our 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 dollar 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.
The following table provides key segment information for the Financial Services segment:
Years Ended December 31,
(in millions of dollars)
202320222021
Financial Services Net Income$371 $338 $349 
Financial Services Interest Revenue(1)
$1,817 $1,149 $918 
Financial Services Interest Expense$1,234 $601 $409 
(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 for the years ended December 31, 2023, 2022 and 2021 is as follows:
 
Years Ended December 31,
(in millions of dollars)
202320222021
Revenues
Agriculture$18,148 $17,969 $14,721 
Construction3,932 3,572 3,081 
Eliminations and other— — — 
Net sales of Industrial Activities22,080 21,541 17,802 
Financial Services2,573 1,996 1,672 
Eliminations and other34 14 22 
Total Revenues$24,687 $23,551 $19,496 
Depreciation and Amortization (1)
Agriculture$331 $287 $254 
Construction42 38 38 
Other activities and adjustments— — 1 
Depreciation and amortization of Industrial Activities 373 325 293 
Financial Services4 2 2 
Total Depreciation and amortization$377 $327 $295 
Expenditures for long-lived assets (2)
Agriculture$534 $393 $307 
Construction96 63 53 
Other activities7 — — 
Expenditures for long-lived assets of Industrial Activities637 456 360 
Financial Services7 5 5 
Total Expenditures for long-lived assets$644 $461 $365 

(1) Excluding equipment on operating leases.
(2) Excluding equipment on operating leases and right-of-use assets.
Geographic Information
CNH has its principal office in London, England, U.K. Revenues earned in the U.K. from external customers were $548 million, $557 million and $548 million for the years ended December 31, 2023, 2022 and 2021, respectively. Revenues earned in the rest of the world from external customers were $24,139 million, $22,994 million and $18,948 million for the years ended December 31, 2023, 2022 and 2021, respectively. The following highlights revenues earned from external customers in the rest of the world by destination:
 
(in millions of dollars)
202320222021
United States$9,090 $8,189 $6,387 
Brazil3,540 3,904 2,414 
Canada1,712 1,530 1,341 
France1,300 1,123 1,084 
Australia1,222 982 857 
Germany633 674 564 
Argentina574 565 418 
Italy562 592 556 
Poland373 449 425 
Spain263 263 283 
Other4,870 4,723 4,619 
Total Revenues from external customers in the rest of world$24,139 $22,994 $18,948 
Total long-lived tangible and intangible assets located in the U.K. were $328 million and $128 million at December 31, 2023 and 2022, respectively, and the total of such assets located in the rest of the world totaled $7,908 million and $7,357 million at December
31, 2023 and 2022, respectively. The following highlights long-lived tangible and intangible assets by geography in the rest of the world:
At December 31,
(in millions of dollars)
20232022
United States$5,701 $5,669 
Canada732 548 
Italy499 437 
Brazil226 162 
France60 48 
China53 55 
Germany24 17 
Spain3 1 
Other610 420 
Total Long-lived assets in the rest of the world$7,908 $7,357 
In 2023, 2022 and 2021, no single external customer of CNH accounted for 10 percent or more of consolidated revenues.