SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2019

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.