v3.25.2
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2025
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 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 allow management to articulate their strategies for the achievement of their business objectives and mitigation of risks and permit 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; and Miller, for 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 the 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 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 ongoing operational activities.
With reference to Financial Services, the CODM assesses segment performance and makes decisions about resource allocation based upon Income before income taxes.
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 tables include reported segment revenue and income, significant segment expenses and other significant items considered in the calculation of Adjusted EBIT for Industrial Activities and Income before income taxes for Financial Services, for the three and six months ended June 30, 2025 and 2024 (in millions of dollars):
Three Months Ended June 30, 2025
AgricultureConstruction
Financial Services(1)
Total
Net sales $3,248 $773 $— 
Finance, interest income — — 685 
Total Revenues 3,248 773 685 
Cost of goods sold (2,540)(652)— 
Selling, general and administrative expenses(2)
(265)(62)(114)
Research and development expenses(194)(24)— 
Interest expense (Financial Services) — — (329)
Other, net (Financial Services) — — (134)
Equity in income of joint ventures 14 — 4 
Adjusted EBIT [A]
263 35 n/a
Income before income taxes [B]
n/an/a112 
Segment Profit/(loss) [C=A+B]
$410 
Interest income/(expenses), net (excluding Financial Services)$(26)
Restructuring expenses (Industrial Activities)(5)
Foreign exchange (gains) losses, net (Agriculture & Construction)(9)
Finance and non-service component of Pension and other post employment benefit costs (Agriculture & Construction)(3)
(3)
Unallocated amounts(4)
(74)
Income tax expense(76)
Net income (loss)$217 
Three Months Ended June 30, 2024
Agriculture(5)
Construction
Financial Services(1)
Total
Net sales $3,913 $890 $— 
Finance, interest income — — 687 
Total Revenues 3,913 890 687 
Cost of goods sold (2,959)(743)— 
Selling, general and administrative expenses(2)
(279)(64)(87)
Research and development expenses(214)(23)— 
Interest expense (Financial Services) — — (374)
Restructuring expenses (Financial Services)— — — 
Other, net (Financial Services) — — (116)
Equity in income of joint ventures 41 — 4 
Adjusted EBIT [A]
502 60 n/a
Income before income taxes [B]
n/an/a114 
Segment Profit/(loss) [C=A+B]
$676 
Interest income/(expenses), net (excluding Financial Services)$(46)
Restructuring expenses (Industrial Activities)(51)
Foreign exchange (gains) losses, net (Agriculture & Construction)(4)
Finance and non-service component of Pension and other post employment benefit costs (Agriculture & Construction)(3)
(1)
Unallocated amounts(4)
(60)
Discrete items excluded from Segments(6)
(15)
Income tax expense(95)
Net income (loss)$404 
Six Months Ended June 30, 2025
AgricultureConstruction
Financial Services(1)
Total
Net sales $5,829 $1,364 $— 
Finance, interest income — — 1,336 
Total Revenues 5,829 1,364 1,336 
Cost of goods sold (4,606)(1,155)— 
Selling, general and administrative expenses(2)
(490)(115)(195)
Research and development expenses(357)(45)— 
Interest expense (Financial Services) — — (661)
Restructuring expenses (Financial Services)— — — 
Other, net (Financial Services) — — (259)
Equity in income of joint ventures 26 — 9 
Adjusted EBIT [A]
402 49 n/a
Income before income taxes [B]
n/an/a230 
Segment Profit/(loss) [C=A+B]
$681 
Interest income/(expenses), net (excluding Financial Services)$(51)
Restructuring expenses (Industrial Activities)(11)
Foreign exchange (gains) losses, net (Agriculture & Construction)(14)
Finance and non-service component of Pension and other post employment benefit costs (Agriculture & Construction)(3)
(7)
Unallocated amounts(4)
(126)
Discrete items excluded from Segments— 
Income tax expense(123)
Net income (loss)$349 
Six Months Ended June 30, 2024
Agriculture(5)
Construction
Financial Services(1)
Total
Net sales $7,286 $1,648 $— 
Finance, interest income — — 1,372 
Total Revenues 7,286 1,648 1,372 
Cost of goods sold (5,528)(1,369)— 
Selling, general and administrative expenses(2)
(530)(121)(156)
Research and development expenses(418)(47)— 
Interest expense (Financial Services) — — (734)
Restructuring expenses (Financial Services)— — (1)
Other, net (Financial Services) — — (239)
Equity in income of joint ventures 80 — 9 
Adjusted EBIT [A]
890 111 n/a
Income before income taxes [B]
n/an/a251 
Segment Profit/(loss) [C=A+B]
$1,252 
Interest income/(expenses), net (excluding Financial Services)$(78)
Restructuring expenses (Industrial Activities)(81)
Foreign exchange (gains) losses, net (Agriculture & Construction)(4)
Finance and non-service component of Pension and other post employment benefit costs (Agriculture & Construction)(3)
(2)
Unallocated amounts(4)
(127)
Discrete items excluded from Segments(6)
(15)
Income tax expense(172)
Net income (loss)$773 
(1)For Financial Services, the CODM uses Income before income taxes as the measure to allocate resources and assess segment performance.
(2)This item included risk costs for the Financial Services segment of $81 million and $131 million for the three and six months ended June 30, 2025, respectively, and $55 million and $92 million for the three and six months ended June 30, 2024.
(3)For the three and six months ended June 30, 2025 and 2024, this item included the pre-tax gain of $6 million and $12 million, respectively, as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification.
(4)Unallocated amounts include certain corporate costs and other operating expenses and incomes not allocated to segments' results.
(5)See "Note 20: Immaterial Revision of Prior Period Financial Statements".
(6)In the three and six months ended June 30, 2024, this item includes a loss of $15 million of certain non-core product lines.
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.
The following tables summarize additional operating segment information (in millions of dollars):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Revenues
Agriculture$3,248 $3,913 $5,829 $7,286 
Construction773 890 1,364 1,648 
Net sales4,021 4,803 7,193 8,934 
Financial Services685 687 1,336 1,372 
Eliminations and other5 (2)10 — 
Total Revenues$4,711 $5,488 $8,539 $10,306 
Depreciation and amortization(1)
Agriculture$92 $92 $180 $182 
Construction12 11 25 22 
Other activities and adjustments1 — 1 1 
Depreciation and amortization of Industrial Activities 105 103 206 205 
Financial Services1 1 2 2 
Total Depreciation and amortization$106 $104 $208 $207 
Expenditures for long-lived assets(2)
Agriculture$73 $96 $165 $179 
Construction15 14 26 26 
Other activities— — — 1 
Expenditures for long-lived assets of Industrial Activities88 110 191 206 
Financial Services2 — 5 — 
Total Expenditures for long-lived assets$90 $110 $196 $206 
(1)Excluding equipment on operating leases.
(2)Excluding equipment on operating leases and right-of-use assets.
June 30, 2025December 31, 2024
Inventory
Agriculture$4,092 $3,730 
Construction1,063 983 
Financial Services61 63 
Total Inventory$5,216 $4,776 
Equity Method Investments
Agriculture$269 $284 
Financial Services145 119 
Total Equity Method Investments$414 $403