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Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The operating segments through which the Company manages its operations are reflected in the internal reporting used by the Company’s Chief Operating Decision Maker (“CODM”) to assess performance and make decisions about resource allocation. The Company’s Chief Operating Decision Makers (“CODM”) has been identified as the Chief Executive Officer (“CEO”). The CEO is charged with the management of CNH, reviews operating performance of the segments and makes decisions on certain operational matters. The CEO, supported by the Global Leadership Team ("GLT"), presents to the Board of Directors the Company's operating results, updated strategic business plans, and long-term value creation strategies as well as top short-term and mid-term operational and strategic risks. The presentations to the Board of Directors allows management to articulate their strategies for the achievement of their business objectives and mitigation of risks and permits the Board of Directors to give feedback on management’s plans.
The segments are organized based on products and services provided by the Company. CNH has three operating segments, that meet the criteria of reportable 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. 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. Furthermore, 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 products and services to dealers and end customers of Iveco Group companies in the North America, South America and Asia Pacific regions. The segment is referred to commercially as CNH Capital - the captive financial provider for the CNH family of brands, specializing in agricultural and construction equipment. In Brazil, it operates under the brand of Banco CNH.
Revenues for each reported segment are those directly generated by or attributable to the segment as a result of the respective 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 costs arising from each segment’s business activities with both third
parties and other operating segments. These expenses are either directly attributable to the segment or allocated to it using recognized allocation bases, reflecting the amount of expenses that would be required if the segment operated autonomously from the larger group. Allocations are necessary to report segment data due to the integrated nature of our operations as well as the use of shared administrative functions and common support services. 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’ 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 and unallocated 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 Company revised the performance metric used to assess the segment’s performance in 2024 from Net Income to Income before income taxes. This change was made to better reflect the manner in which the CODM evaluates segment performance and allocates resources. The prior-period segment results have been recast to reflect this change for comparability purposes.
The CODM uses both Adjusted EBIT of Agriculture and Construction and Income before income taxes of Financial Services predominantly in the annual budget and forecasting process. The CODM considers actual-to-budget and actual-to-forecast variances on a monthly basis for both measures when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses Adjusted EBIT for Agriculture and Construction and Income before income taxes of Financial Services to evaluate any pricing strategy, to assess and compare the performance of each segment and to determine compensation of certain employees.
The following table includes reported segment revenue and income, significant segment expenses and other segment items considered in the calculation of both Adjusted EBIT for Industrial Activities' and Income before income taxes for Financial Services.
Years Ended December 31, 2024
(in millions of dollars)
Agriculture(1)
Construction
Financial Services (2)
Total
Net Sales$14,007 $3,053 $— 
Finance, interest income (Financial Services)— — 2,774 
Total Revenues14,007 3,053 2,774 
Cost of goods sold(10,796)(2,554)— 
Selling, general and administrative expenses(6)
(1,031)(235)(332)
Research and Development Expenses(829)(95)— 
Interest Expense (Financial Services)— — (1,457)
Restructuring Expenses (Financial Services)— — (1)
Other, Net (Financial Services)— — (514)
Equity in income of joint ventures119 — 19 
Adjusted EBIT [A]
1,470 169 n/a
Income before income taxes [B]
n/an/a489 
Segment Profit/(loss) [C=A+B]
$2,128 
Interest Income/(expenses), net (excluding Financial Services)$(152)
Restructuring expenses (Industrial Activities)(117)
Foreign exchange (gains) losses, net (Agriculture & Construction)(15)
Finance and non-service component of Pension and other post employment benefit costs (Agriculture & Construction)(4)
(10)
Unallocated amounts (3)
(235)
Discrete items excluded from Segments(5)
(4)
Income tax expense(336)
Net income$1,259 
    
Years Ended December 31, 2023
(in millions of dollars)
AgricultureConstruction
Financial Services (2)
Total
Net Sales$18,148 $3,932 $— 
Finance, interest income— — 2,573 
Total Revenues18,148 3,932 2,573 
Cost of goods sold(13,521)(3,317)— 
Selling, general and administrative expenses(6)
(1,214)(273)(218)
Research and Development Expenses(937)(104)— 
Interest Expense (Financial Services)— — (1,235)
Restructuring Expenses (Financial Services)— — (2)
Other, Net (Financial Services)— — (629)
Equity in income of joint ventures160 — 18 
Adjusted EBIT [A]
2,636 238 n/a
Income before income taxes [B]
n/an/a507 
Segment Profit/(loss) [C=A+B]
$3,381 
Interest Income/(expenses), net (excluding Financial Services)$(76)
Restructuring expenses (Agriculture & Construction)(65)
Foreign exchange (gains) losses, net (Agriculture & Construction)(105)
Finance and non-service component of Pension and other post employment benefit costs (Agriculture & Construction)(4)
(4)
Unallocated amounts (3)
(240)
Discrete items excluded from Segments(5)
(10)
Income tax expense(594)
Net income$2,287 
Years Ended December 31, 2022
(in millions of dollars)
AgricultureConstruction
Financial Services (2)
Total
Net Sales
$17,969 $3,572 $— 
Finance, interest income— — 1,996 
Total Revenues17,969 3,572 1,996 
Cost of goods sold(13,685)(3,098)— 
Selling, general and administrative expenses(6)
(1,139)(262)(203)
Research and Development Expenses(778)(88)— 
Interest Expense (Financial Services)— — (601)
Other, Net (Financial Services)— — (744)
Equity in income of joint ventures89 — 15 
Adjusted EBIT [A]
2,456 124 n/a
Income before income taxes [B]
n/an/a463 
Segment Profit/(loss) [C=A+B]
$3,043 
Interest Income/(expenses), net (excluding Financial Services)$(119)
Restructuring expenses (Agriculture & Construction)(31)
Foreign exchange (gains) losses, net (Agriculture & Construction)(59)
Finance and non-service component of Pension and other post employment benefit costs (Agriculture & Construction)(4)
124 
Unallocated amounts (3)
(147)
Discrete items excluded from Segments(5)
(25)
Income tax expense(747)
Net income$2,039 
(1)See Note 23 Immaterial Revision of Prior Period Financial Statements.
(2)For Financial Services, the CODM uses Income before income taxes as the measure to allocate resources and assess segment performance. Interest income and interest expenses are presented as significant segment items considered in the calculation of net income.
(3)Unallocated amounts includes certain corporate costs and other operating expenses and incomes not allocated to segments' results.
(4)In the years ended December 31, 2024, 2023 and 2022, this item includes an annual pre-tax gain of $24 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, this item includes the pre-tax gain of $90 million 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.
(5)In the year ended December 31, 2024, this item includes a loss of $17 million on the sale of certain non-core product lines and a gain of $14 million for investment fair value adjustments. 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.
(6)In the years ended December 31, 2024, 2023 and 2022, this item included risk costs for the Financial Services segment of $204 million, $80 million and $72 million, respectively.
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, 2024, 2023 and 2022 is as follows:
 
Years Ended December 31,
(in millions of dollars)
202420232022
Revenues
Agriculture$14,007 $18,148 $17,969 
Construction3,053 3,932 3,572 
Net sales17,060 22,080 21,541 
Financial Services2,774 2,573 1,996 
Eliminations and other2 34 14 
Total Revenues$19,836 $24,687 $23,551 
Depreciation and Amortization (1)
Agriculture$366 $331 $287 
Construction45 42 38 
Other activities and adjustments2 — — 
Depreciation and amortization of Industrial Activities 413 373 325 
Financial Services4 4 2 
Total Depreciation and amortization$417 $377 $327 
Expenditures for long-lived assets (2)
Agriculture$455 $534 $393 
Construction75 96 63 
Other activities3 7 — 
Expenditures for long-lived assets of Industrial Activities533 637 456 
Financial Services3 7 5 
Total Expenditures for long-lived assets$536 $644 $461 
Inventory
Agriculture$3,730 $4,299 $3,783 
Construction983 1,223 1,015 
Financial Services63 23 13 
Total Inventory$4,776 $5,545 $4,811 
Equity Method Investments
Agriculture$284 $302 $218 
Financial Services119 123 113 
Total Equity Method Investments$403 $425 $331 

(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 $359 million, $548 million and $557 million for the years ended December 31, 2024, 2023 and 2022, respectively. Revenues earned in the rest of the world from external customers were $19,477 million, $24,139 million and $22,994 million for the years ended December 31, 2024, 2023 and 2022, respectively. The following highlights revenues earned from external customers in the rest of the world by destination:
 
(in millions of dollars)
202420232022
United States$7,193 $9,090 $8,189 
Brazil2,748 3,540 3,904 
Canada1,745 1,712 1,530 
France1,060 1,300 1,123 
Australia888 1,222 982 
Argentina566 574 565 
India532 499 470 
Italy422 562 592 
Germany399 633 674 
China326 300 267 
Poland287 373 449 
Spain259 263 263 
Other3,052 4,071 3,986 
Total Revenues from external customers in the rest of world$19,477 $24,139 $22,994 
Total long-lived tangible and intangible assets located in the U.K. were $324 million and $328 million at December 31, 2024, and 2023, respectively, and the total of such assets located in the rest of the world totaled $7,883 million and $7,908 million at December 31, 2024 and 2023, 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)
20242023
United States$5,795 $5,701 
Canada680 732 
Italy466 499 
Brazil202 226 
France62 60 
China51 53 
Germany19 24 
Spain3 3 
Other605 610 
Total Long-lived assets in the rest of the world$7,883 $7,908 
In 2024, 2023 and 2022, no single external customer of CNH accounted for 10 percent or more of consolidated revenues.