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SEGMENT INFORMATION (Tables) | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Summary of Financial Information by Segment | The following tables summarize selected financial information by segment as well as the reconciliation from consolidated net income (loss) under U.S. GAAP to Adjusted EBIT and Adjusted EBITDA for the three and six months ended June 30, 2019 and 2018.
| Three Months Ended June 30, 2019
| Agriculture |  | Construction |  | Commercial and Specialty Vehicles |  | Powertrain |  | Unallocated items, eliminations and other |  | Total Industrial Activities |  | Financial Services |  | Eliminations |  | Total
| (in millions)
Revenues | $ | 3,095 |  |  | $ | 757 |  |  | $ | 2,698 |  |  | $ | 1,133 |  |  | $ | (615 | ) |  | $ | 7,068 |  |  | $ | 519 |  |  | $ | (20 | ) |  | $ | 7,567 |
Net income(1) |  |  |  |  |  |  |  |  |  |  | 336 |  |  | 91 |  |  | — |  |  | 427 |
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income tax expense |  |  |  |  |  |  |  |  |  |  | 104 |  |  | 31 |  |  | — |  |  | 135 |
Interest expense of Industrial Activities, net of interest income and eliminations |  |  |  |  |  |  |  |  |  |  | 66 |  |  | — |  |  | — |  |  | 66 |
Foreign exchange losses, net |  |  |  |  |  |  |  |  |  |  | 11 |  |  | — |  |  | — |  |  | 11 |
Finance and non-service component of Pension and OPEB costs(2) |  |  |  |  |  |  |  |  |  |  | (16 | ) |  | — |  |  | — |  |  | (16 | )
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restructuring expenses | 15 |  |  | 4 |  |  | 6 |  |  | — |  |  | 1 |  |  | 26 |  |  | 2 |  |  | — |  |  | 28 |
Adjusted EBIT | $ | 341 |  |  | $ | 25 |  |  | $ | 100 |  |  | $ | 102 |  |  | $ | (41 | ) |  | $ | 527 |  |  | $ | 124 |  |  | $ | — |  |  | $ | 651 |
Depreciation and amortization | 69 |  |  | 15 |  |  | 47 |  |  | 31 |  |  | — |  |  | 162 |  |  | 1 |  |  | — |  |  | 163 |
Depreciation of assets on operating lease and assets sold with buy-back commitment | — |  |  | — |  |  | 79 |  |  | — |  |  | — |  |  | 79 |  |  | 59 |  |  | — |  |  | 138 |
Adjusted EBITDA | $ | 410 |  |  | $ | 40 |  |  | $ | 226 |  |  | $ | 133 |  |  | $ | (41 | ) |  | $ | 768 |  |  | $ | 184 |  |  | $ | — |  |  | $ | 952 |
(1) | For Industrial Activities, net income net of “Results from intersegment investments”.
(2) | This item includes the pre-tax gain of $30 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of certain healthcare benefits in the U.S.
| Six Months Ended June 30, 2019
| Agriculture |  | Construction |  | Commercial and Specialty Vehicles |  | Powertrain |  | Unallocated items, eliminations and other |  | Total Industrial Activities |  | Financial Services |  | Eliminations |  | Total
| (in millions)
Revenues | $ | 5,585 |  |  | $ | 1,397 |  |  | $ | 5,112 |  |  | $ | 2,169 |  |  | $ | (1,189 | ) |  | $ | 13,074 |  |  | $ | 993 |  |  | $ | (43 | ) |  | $ | 14,024 |
Net income(1) |  |  |  |  |  |  |  |  |  |  | 505 |  |  | 186 |  |  | — |  |  | 691 |
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income tax expense |  |  |  |  |  |  |  |  |  |  | 158 |  |  | 67 |  |  | — |  |  | 225 |
Interest expense of Industrial Activities, net of interest income and eliminations |  |  |  |  |  |  |  |  |  |  | 119 |  |  | — |  |  | — |  |  | 119 |
Foreign exchange losses, net |  |  |  |  |  |  |  |  |  |  | 20 |  |  | — |  |  | — |  |  | 20 |
Finance and non-service component of Pension and OPEB costs(2) |  |  |  |  |  |  |  |  |  |  | (31 | ) |  | — |  |  | — |  |  | (31 | )
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restructuring expenses | 18 |  |  | 4 |  |  | 11 |  |  | — |  |  | 1 |  |  | 34 |  |  | 2 |  |  | — |  |  | 36 |
Adjusted EBIT | $ | 509 |  |  | $ | 38 |  |  | $ | 151 |  |  | $ | 198 |  |  | $ | (91 | ) |  | $ | 805 |  |  | $ | 255 |  |  | $ | — |  |  | $ | 1,060 |
Depreciation and amortization | 144 |  |  | 29 |  |  | 94 |  |  | 63 |  |  | — |  |  | 330 |  |  | 2 |  |  | — |  |  | 332 |
Depreciation of assets on operating lease and assets sold with buy-back commitment | — |  |  | — |  |  | 158 |  |  | — |  |  | — |  |  | 158 |  |  | 124 |  |  | — |  |  | 282 |
Adjusted EBITDA | $ | 653 |  |  | $ | 67 |  |  | $ | 403 |  |  | $ | 261 |  |  | $ | (91 | ) |  | $ | 1,293 |  |  | $ | 381 |  |  | $ | — |  |  | $ | 1,674 |
(1) | For Industrial Activities, net income net of “Results from intersegment investments”.
(2) | This item includes the pre-tax gain of $60 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of certain healthcare benefits in the U.S.
| Three Months Ended June 30, 2018
| Agriculture |  | Construction |  | Commercial and Specialty Vehicles |  | Powertrain |  | Unallocated items, eliminations and other |  | Total Industrial Activities |  | Financial Services |  | Eliminations |  | Total
| (in millions)
Revenues | $ | 3,312 |  |  | $ | 799 |  |  | $ | 2,889 |  |  | $ | 1,218 |  |  | $ | (639 | ) |  | $ | 7,579 |  |  | $ | 498 |  |  | $ | (32 | ) |  | $ | 8,045 |
Net income (loss)(1) |  |  |  |  |  |  |  |  |  |  | 306 |  |  | 102 |  |  | — |  |  | 408 |
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income tax expense |  |  |  |  |  |  |  |  |  |  | 79 |  |  | 39 |  |  | — |  |  | 118 |
Interest expense of Industrial Activities, net of interest income and eliminations |  |  |  |  |  |  |  |  |  |  | 88 |  |  | — |  |  | — |  |  | 88 |
Foreign exchange losses, net |  |  |  |  |  |  |  |  |  |  | 97 |  |  | — |  |  | — |  |  | 97 |
Finance and non-service component of Pension and OPEB costs(2) |  |  |  |  |  |  |  |  |  |  | (4 | ) |  | — |  |  | — |  |  | (4 | )
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restructuring expenses | 1 |  |  | — |  |  | 3 |  |  | 1 |  |  | — |  |  | 5 |  |  | — |  |  | — |  |  | 5 |
Adjusted EBIT | $ | 396 |  |  | $ | 33 |  |  | $ | 92 |  |  | $ | 108 |  |  | $ | (58 | ) |  | $ | 571 |  |  | $ | 141 |  |  | $ | — |  |  | $ | 712 |
Depreciation and amortization | 75 |  |  | 15 |  |  | 53 |  |  | 33 |  |  | 1 |  |  | 177 |  |  | 2 |  |  | — |  |  | 179 |
Depreciation of assets on operating lease and assets sold with buy-back commitment | 1 |  |  | — |  |  | 94 |  |  | — |  |  | — |  |  | 95 |  |  | 60 |  |  | — |  |  | 155 |
Adjusted EBITDA | $ | 472 |  |  | $ | 48 |  |  | $ | 239 |  |  | $ | 141 |  |  | $ | (57 | ) |  | $ | 843 |  |  | $ | 203 |  |  | $ | — |  |  | $ | 1,046 |
(1) | For Industrial Activities, net income net of “Results from intersegment investments”.
(2) | This item includes the pre-tax gain of $20 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of certain healthcare benefits in the U.S.
| Six Months Ended June 30, 2018
| Agriculture |  | Construction |  | Commercial and Specialty Vehicles |  | Powertrain |  | Unallocated items, eliminations and other |  | Total Industrial Activities |  | Financial Services |  | Eliminations |  | Total
| (in millions)
Revenues | $ | 5,891 |  |  | $ | 1,481 |  |  | $ | 5,384 |  |  | $ | 2,404 |  |  | $ | (1,281 | ) |  | $ | 13,879 |  |  | $ | 1,000 |  |  | $ | (61 | ) |  | $ | 14,818 |
Net income(1) |  |  |  |  |  |  |  |  |  |  | 405 |  |  | 205 |  |  | — |  |  | 610 |
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income tax expense |  |  |  |  |  |  |  |  |  |  | 102 |  |  | 79 |  |  | — |  |  | 181 |
Interest expense of Industrial Activities, net of interest income and eliminations |  |  |  |  |  |  |  |  |  |  | 181 |  |  | — |  |  | — |  |  | 181 |
Foreign exchange losses, net |  |  |  |  |  |  |  |  |  |  | 122 |  |  | — |  |  | — |  |  | 122 |
Finance and non-service component of Pension and OPEB costs(2) |  |  |  |  |  |  |  |  |  |  | 14 |  |  | — |  |  | — |  |  | 14 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restructuring expenses | 1 |  |  | — |  |  | 6 |  |  | 1 |  |  | — |  |  | 8 |  |  | — |  |  | — |  |  | 8 |
Adjusted EBIT | $ | 582 |  |  | $ | 33 |  |  | $ | 141 |  |  | $ | 203 |  |  | $ | (127 | ) |  | $ | 832 |  |  | $ | 284 |  |  | $ | — |  |  | $ | 1,116 |
Depreciation and amortization | 154 |  |  | 31 |  |  | 108 |  |  | 67 |  |  | 1 |  |  | 361 |  |  | 3 |  |  | — |  |  | 364 |
Depreciation of assets on operating lease and assets sold with buy-back commitment | 1 |  |  | — |  |  | 196 |  |  | — |  |  | — |  |  | 197 |  |  | 126 |  |  | — |  |  | 323 |
Adjusted EBITDA | $ | 737 |  |  | $ | 64 |  |  | $ | 445 |  |  | $ | 270 |  |  | $ | (126 | ) |  | $ | 1,390 |  |  | $ | 413 |  |  | $ | — |  |  | $ | 1,803 |
(1) | For Industrial Activities, net income net of “Results from intersegment investments”.
(2) This item includes the pre-tax gain of $20 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of certain healthcare benefits in the U.S.

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- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
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