GOODWILL AND OTHER INTANGIBLES

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill for the three months ended March 31, 2024 were as follows (in millions of dollars):


	Agriculture		Construction		Financial Services		Total
Balance at January 1, 2024	$	3,426	$	47	$	141	$	3,614
Foreign currency translation and other	(9)		(1)		(1)		(11)

Balance at March 31, 2024	$	3,417	$	46	$	140	$	3,603

Goodwill and other indefinite-lived intangible assets are tested for impairment annually or more frequently if a triggering event occurred that would indicate it is more likely than not that the fair value of a reporting unit is less than book value. CNH performed its most recent annual impairment review as of December 31, 2023 and concluded that there was no impairment to goodwill for any of the reporting entities.

The acquisition of Hemisphere during the fourth quarter of 2023 led to an increase in goodwill for Agriculture of $111 million. Goodwill related to the acquisition was calculated as the excess of the consideration transferred over the net assets recognized. During the first quarter of 2024 a measurement period adjustment was recorded which decreased goodwill by $2 million. The valuation of assets and liabilities assumed was not finalized as of March 31, 2024. Thus, goodwill associated with this acquisition is subject to adjustment during the measurement period.

The acquisitions of Augmenta and Bennamann during the first quarter of 2023 led to an increase in goodwill for Agriculture of $76 million and $118 million, respectively. Goodwill related to the acquisitions was calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from the other assets acquired that could not be individually identified and separately recognized. During the second and third quarters of 2023, measurement period adjustments were recorded reducing goodwill by $14 million and $3 million for Augmenta and Bennamann, respectively. The valuation of assets acquired and liabilities assumed was finalized as of March 31, 2024.

As of March 31, 2024 and December 31, 2023, the Company’s other intangible assets and related accumulated amortization consisted of the following (in millions of dollars):


		March 31, 2024						December 31, 2023
	Weighted Avg. Life	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Other intangible assets subject to amortization:
Dealer networks	20-25	$	245	$	224	$	21	$	246	$	223	$	23
Patents, concessions, licenses and other	5-25	929		539		390		928		523		405
Capitalized software	2-5	1,120		843		277		1,070		810		260
		2,294		1,606		688		2,244		1,556		688
Other intangible assets not subject to amortization:
In-process research and development		215		—		215		213		—		213
Software in-progress		89		—		89		119		—		119
Trademarks		273		—		273		272		—		272
Total other intangible assets		$	2,871	$	1,606	$	1,265	$	2,848	$	1,556	$	1,292

During the fourth quarter of 2023, the Company recorded $51 million in intangible assets based on the preliminary valuation for Hemisphere. During the first quarter of 2024 a measurement period adjustment was recorded which increased intangible assets by $6 million. The valuation of assets acquired and liabilities assumed has not been finalized as of March 31, 2024. Thus, intangibles associated with the acquisition is subject to adjustment during the measurement period.

During the first quarter of 2023, the Company recorded $81 million in intangible assets based on the preliminary valuation for the Augmenta and Bennamann acquisitions. Measurement period adjustments were recorded in the second and third quarters increasing intangible assets by $12 million and $5 million for Augmenta and Bennamann, respectively. The valuation of assets acquired and liabilities assumed was finalized as of March 31, 2024.

CNH recorded amortization expense of $45 million and $38 million for the three months ended March 31, 2024 and 2023, respectively.