SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2023

Summary of Financial Information by Segment

The following table includes the reconciliation of Adjusted EBIT for Industrial Activities to net income, the most comparable U.S. GAAP financial measure, for the three and six months ended June 30, 2023 and 2022.


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Agriculture	$	821	$	663	$	1,391	$	1,089
Construction	72		34		116		66
Unallocated items, eliminations and other	(71)		(43)		(130)		(72)
Total Adjusted EBIT of Industrial Activities	822		654		1,377		1,083
Financial Services Net Income	94		95		172		177
Financial Services Income Taxes	26		38		55		74
Interest expense of Industrial Activities, net of interest income and eliminations	(22)		(35)		(26)		(70)
Foreign exchange gains (losses), net of Industrial Activities	—		13		(6)		—
Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities(1)	1		40		2		77
Restructuring expense of Industrial Activities	(2)		(6)		(3)		(8)
Other discrete items of Industrial Activities(2)	(17)		(19)		(10)		(58)
Income (loss) before taxes	902		780		1,561		1,275
Income tax (expense) benefit	(192)		(228)		(365)		(387)
Net income (loss)	$	710	$	552	$	1,196	$	888

(1) In the three and six months ended June 30, 2023 and 2022, this item includes the pre-tax gain of $6 million and $12 million as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 modifications of a healthcare plan in the U.S. In the three and six months ended June 30, 2022, this item includes the pre-tax gain of $30 million and $60 million as a result of the 2018 modification of a healthcare plan in the U.S.

(2) In the three months ended June 30, 2023 this item included a loss of $17 million related to the sale of CNH Industrial Russia. In the six months ended June 30, 2023 this item included a gain of $13 million in relation to the fair value remeasurement of Augmenta and Bennamann, offset by a $23 million loss on the sale of CNH Industrial Russia and CNH Capital Russia. In the three and six months ended June 30, 2022, this item includes $3 million and $6 million of separation costs incurred in connection with our spin-off of the Iveco Group Business and $16 million and $8 million of loss from the activity of the two Raven businesses held for sale, including the loss on the sale of the Engineered Films division. In the six months ended June 30, 2022, this item also included $44 million of asset write-downs related to our Russian operations.