| Schedule of Financial Information by Segment |
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 | | Agriculture | | Construction | | 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/a | | n/a | | 112 | | | | 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/a | | n/a | | 114 | | | | 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 | | Agriculture | | Construction | | 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/a | | n/a | | 230 | | | | 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/a | | n/a | | 251 | | | | 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.
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| Schedule of Operating Segment Information |
The following tables summarize additional operating segment information (in millions of dollars): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | Revenues | | | | | | | | | Agriculture | $ | 3,248 | | | $ | 3,913 | | | $ | 5,829 | | | $ | 7,286 | | | Construction | 773 | | | 890 | | | 1,364 | | | 1,648 | | | Net sales | 4,021 | | | 4,803 | | | 7,193 | | | 8,934 | | | Financial Services | 685 | | | 687 | | | 1,336 | | | 1,372 | | | Eliminations and other | 5 | | | (2) | | | 10 | | | — | | | Total Revenues | $ | 4,711 | | | $ | 5,488 | | | $ | 8,539 | | | $ | 10,306 | | Depreciation and amortization(1) | | | | | | | | | Agriculture | $ | 92 | | | $ | 92 | | | $ | 180 | | | $ | 182 | | | Construction | 12 | | | 11 | | | 25 | | | 22 | | | Other activities and adjustments | 1 | | | — | | | 1 | | | 1 | | | Depreciation and amortization of Industrial Activities | 105 | | | 103 | | | 206 | | | 205 | | | Financial Services | 1 | | | 1 | | | 2 | | | 2 | | | Total Depreciation and amortization | $ | 106 | | | $ | 104 | | | $ | 208 | | | $ | 207 | | Expenditures for long-lived assets(2) | | | | | | | | | Agriculture | $ | 73 | | | $ | 96 | | | $ | 165 | | | $ | 179 | | | Construction | 15 | | | 14 | | | 26 | | | 26 | | | Other activities | — | | | — | | | — | | | 1 | | | Expenditures for long-lived assets of Industrial Activities | 88 | | | 110 | | | 191 | | | 206 | | | Financial Services | 2 | | | — | | | 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, 2025 | | December 31, 2024 | | Inventory | | | | | Agriculture | $ | 4,092 | | | $ | 3,730 | | | Construction | 1,063 | | | 983 | | | Financial Services | 61 | | | 63 | | | Total Inventory | $ | 5,216 | | | $ | 4,776 | | | Equity Method Investments | | | | | Agriculture | $ | 269 | | | $ | 284 | | | Financial Services | 145 | | | 119 | | | Total Equity Method Investments | $ | 414 | | | $ | 403 | |
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