Exhibit 99.1

 

		2020 FOURTH QUARTER AND FULL YEAR RESULTS		PRESS RELEASE

2020 FOURTH QUARTER RESULTS

 

 

CNH Industrial reports strong results for Q4 2020. Consolidated revenues of $8.5 billion (up 10%) and adjusted EBIT of Industrial Activities of $520 million (up 73%), with all segments up year over year. Net income of $187 million and adjusted net income of $432 million. Positive free cash flow of Industrial Activities of $2.4 billion. Industrial Activities net cash of $0.8 billion at December 31, 2020.

Financial results presented under U.S. GAAP

“CNH Industrial delivered solid results in Q4, ending 2020 with year-over-year profitability improvements across all industrial segments. Our year-end Industrial Activities net financial position of $0.8 billion was positive for the first time in the company’s history and testifies to the efficacy of our cost containment and cash preservation actions which, together with strong working capital reductions, drove positive free cash flow of $2.4 billion in Q4 and $1.9 billion for the full year. We continued to prioritize the health and safety of our workforce, while supporting our dealers and customers and actively managing our supply chain. While we are guardedly optimistic about the impact of the vaccine roll-out, the current global spike in COVID-19 cases means we must continue to safeguard our employees and our business from the pandemic. During 2020 we invested in new technologies, embraced new ways of working, and positioned the company for strong, profitable growth. Our focus on executing the company separation strategy outlined at our 2019 capital markets day is resolute, and we enter 2021 prepared to unlock our abundant potential, enhance our commitment to our customers, and forge an increasingly profitable future under the leadership of our new CEO, Scott Wine.”

Suzanne Heywood, Chair

“It has been an energizing first few weeks with the CNH Industrial team and I find our capabilities and opportunities to be even greater than I anticipated. Suzanne’s adroit stewardship over the last year gave me a chance to get up to speed, instead of addressing lingering issues, and thanks to this CNH Industrial team’s preparation and willingness to share, I have learned a great deal in this short time. I am pleased with the state of the business and the strength of the industry, and enthusiastic about tackling the challenges we face, both in executing vital aspects of our strategy and addressing a dynamic global environment. CNH Industrial is poised to deliver a strong 2021: we are ready to perform, our dealer network is healthy and hungry, and in most segments our customers are displaying solid demand.”

Scott Wine, Chief Executive Officer

 

 

2020 Fourth Quarter Results

(all amounts $ million, unless otherwise stated – comparison vs Q4 2019)

 

US-GAAP

NON-GAAP(1)

Consolidated revenues

8,501

+10%

+10% c.c.

(*)

Adjusted EBIT of Industrial Activities

520

+73%

of which Net sales of Industrial Activities

8,035

+12%

+11% c.c.

Adjusted EBIT Margin of Industrial Activities

6.5%

+230

bps

Net income

187

+56%

Adjusted net income

432

+55%

Diluted EPS $

0.12

+50%

Adjusted diluted EPS $

0.30

+50%

Cash flows from operating activities

2,766

+796

Free cash flow of Industrial Activities

2,365

654

Cash and cash equivalents

8,785

+37%

(**)

Available liquidity

15,871

21%

(**)

(*) c.c. means at constant currency            (**) comparison vs September 30, 2020

 

Refer to page 4 for an explanation of the items referenced on this page and to page 10 onwards for the reconciliations (*) Net sales reflecting the exchange rate of 1.20 EUR/USD		1

		PRESS RELEASE

 

AGRICULTURE

Demand was up in most regions. In North America, tractor demand was up 27% for tractors under 140 HP, and up 17% for tractors over 140 HP; combines were down 1%. In Europe, tractor and combine markets were up 7% and 22%, respectively. South America tractor markets were up 29% and combine markets were up 22%. Significant increase in demand for tractors was also noted in Rest of World while demand for combines was flat   Net sales were up 17%, mainly due to favorable price realization in all regions and higher volumes in Europe, South America and Rest of World   Adjusted EBIT increased $143 million, with Adjusted EBIT margin at 11%, driven by positive price realization, higher volumes and continued reduction of selling, general and administrative expenses

Q4 2020

Q4 2019

Change

Change at c.c.(*)

Net sales ($ million)

3,425

2,928

+17.0%

+19.1%

Adjusted EBIT ($ million)

379

236

+143

Adjusted EBIT margin

11.1%

8.1%

+300

bps

 

CONSTRUCTION

Global demand for construction equipment increased in all sub-segments, with compact and service equipment up 17%, general construction equipment up 24%, and road building and site preparation equipment up 4%. Demand increased 33% in Rest of World (+51% in China) and 10% in North America, but decreased 4% in both Europe and South America. Compact equipment was up 16% in North America and 31% in Rest of World   Net sales were up 6%, as a result of higher volume and positive price realization   Adjusted EBIT increased $7 million due to positive price realization, cost containment actions and favorable volume and mix, partially offset by costs associated with continued product improvement initiatives

Q4 2020

Q4 2019

Change

Change at c.c.(*)

Net sales ($ million)

752

707

+6.4%

+8.4%

Adjusted EBIT ($ million)

10

3

+7

Adjusted EBIT margin

1.3%

0.4%

+90

bps

 

 

COMMERCIAL AND SPECIALTY VEHICLES

European truck market was up 6% year-over-year, with light-duty trucks (“LCV”) up 9%, while medium and heavy trucks were flat. Order book is strong across all regions. South American truck market was down 2% in LCV and flat in medium and heavy trucks. Bus market decreased 4% in Europe and 35% in South America   Net sales were up 10%, primarily driven by favorable volume and mix, and positive price realization in all regions   Adjusted EBIT of $110 million, with Adjusted EBIT margin at 3.3%, driven by favorable volumes and mix in Europe and South America, and positive price realization

Q4 2020

Q4 2019

Change

Change at c.c.(*)

Net sales ($ million)

3,290

2,996

+9.8%

+7.1%

Adjusted EBIT ($ million)

110

3

+107

Adjusted EBIT margin

3.3%

0.1%

+320

bps

 

 

POWERTRAIN

Net sales were up 19% due to higher sales volume across all regions. Sales to external customers accounted for 50% of total net sales (57% in Q4 2019)   Adjusted EBIT increased $26 million, with Adjusted EBIT margin at 9%, mainly due to favorable volume and mix and reduced spending for regulatory programs, partially offset by higher product costs

Q4 2020

Q4 2019

Change

Change at c.c.(*)

Net sales ($ million)

1,204

1,008

+19.4%

+14.0%

Adjusted EBIT ($ million)

110

84

+26

Adjusted EBIT margin

9.1%

8.3%

+80

bps

 

 

FINANCIAL SERVICES																								Revenues were down 9% due to lower average portfolio in North America and negative impact from currency translation, partially offset by higher used equipment sales and a higher average portfolio in South America   Net income decreased $33 million, primarily attributable to higher risk costs due to an expectation of deteriorating credit conditions and the lower average portfolio in North America, partially offset by lower losses on used equipment sales   The managed portfolio (including unconsolidated joint ventures) was $26.6 billion at the end of 2020, flat compared to December 31, 2019. The receivable balance greater than 30 days past due as a percentage of receivables was 2.1% (2.5% as of December 31, 2019)
				Q4 2020				Q4 2019				Change				Change at c.c.(*)
		Revenues ($ million)			485				531				-8.7%				-7.0%
		Net income ($ million)			60				93				-33
		Equity at quarter-end ($ million)			2,931				2,817				+4.0%
		Retail loan originations ($ million)			2,940				2,604				+12.9%

 

Refer to page 4 for an explanation of the items referenced on this page and to page 10 onwards for the reconciliations		2

		PRESS RELEASE

 

2020 FULL YEAR RESULTS

 

 

In 2020, CNH Industrial reported revenues of $26.0 billion and adjusted net income of $437 million as a result of a solid performance in the second-half of the year, partially offsetting severe adverse COVID-19 impacts in the first-half. Record positive free cash flow of Industrial Activities of $1,926 million was reported in 2020, thanks to the strong operating performance in H2 and continued cash preservation measures, more than offsetting the negative cash flow in H1.

 

2020 Full Year Results (all amounts $ million, unless otherwise stated – comparison vs 2019)
US-GAAP												NON-GAAP(1)
Consolidated revenues		26,032			-7	%			-6	%c.c.(*)		Adjusted EBIT of Industrial Activities			552				-60	%
of which Net sales of Industrial Activities		24,285			-7	%			-6	%c.c.		Adjusted EBIT Margin of Industrial Activities			2.3	%			-300	bps
Net loss		(438)			-130	%						Adjusted net income			437				-63	%
Diluted loss per share $		(0.36)			-134	%						Adjusted diluted EPS $			0.28				-67	%
Cash flows from operating activities		5,529			+3,703							Free cash flow of Industrial Activities			1,926				1,905
Cash and cash equivalents		8,785			+80	%						Available liquidity			15,871				40	%

(*) c.c. means at constant currency

 

 

 

 

Refer to page 4 for an explanation of the items referenced on this page and to page 10 onwards for the reconciliations		3

		PRESS RELEASE

 

Notes

 

CNH Industrial reports quarterly and annual consolidated financial results under U.S. GAAP and EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with U.S. GAAP. Financial results under EU-IFRS are shown in specific tables at the end of this press release.

 

(1)

This item is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Information” section of this press release for information regarding non-GAAP financial measures. Refer to the specific table in the “Other Supplemental Financial Information” section of this press release for the reconciliation between the non-GAAP financial measure and the most comparable GAAP financial measure.

 

(*)	c.c. means at constant currency.

Non-GAAP Financial Information

 

CNH Industrial monitors its operations through the use of several non-GAAP financial measures. CNH Industrial’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH Industrial’s financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP or EU-IFRS and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP and/or EU-IFRS.

CNH Industrial’s non-GAAP financial measures are defined as follows:

 

•

Adjusted EBIT of Industrial Activities under U.S. GAAP: is defined as net income (loss) before income taxes, Financial Services results, Industrial Activities’ 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 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 on-going operational activities.

 

•

Adjusted EBIT of Industrial Activities under EU-IFRS: is defined as profit/(loss) before taxes, Financial Services results, Industrial Activities’ financial expenses, restructuring costs, and certain non-recurring items.

 

•

Adjusted Net Income (Loss): is defined as net income (loss), less restructuring charges and non-recurring items, after tax.

 

•

Adjusted Diluted EPS: is computed by dividing Adjusted Net Income (loss) attributable to CNH Industrial N.V. by a weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the CNH Industrial share-based payment awards, when inclusion is not anti-dilutive. When we provide guidance for adjusted diluted EPS, we do not provide guidance on a earnings per share basis because the GAAP measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end.

 

•

Adjusted Income Taxes: is defined as income taxes less the tax effect of restructuring expenses and non- recurring items, and non-recurring tax charges or benefits.

 

•

Adjusted Effective Tax Rate (Adjusted ETR): is computed by dividing a) adjusted income taxes by b) income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates, less restructuring expenses and non-recurring items.

 

•

Net Debt and Net (Cash) Debt of Industrial Activities: Net Debt is defined as total debt less intersegment notes receivable, cash and cash equivalents, restricted cash, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and derivative hedging debt. CNH Industrial provides the reconciliation of Net Debt to Total Debt, which is the most directly comparable measure included in the consolidated balance sheets. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Debt (Cash) of Industrial Activities.

 

•

Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities, only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in assets sold under buy-back commitments, assets under operating leases, property, plant and equipment and intangible assets; change in derivatives hedging debt of Industrial Activities; as well as other changes and intersegment eliminations.

 

•

Available Liquidity: is defined as cash and cash equivalents plus restricted cash, undrawn committed facilities and other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties).

 

•

Change excl. FX or Constant Currency: CNH Industrial discusses the fluctuations in revenues on a constant currency basis by applying the prior year average exchange rates to current year’s revenues expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations.

The tables attached to this press release provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.

Forward-looking statements

 

All statements other than statements of historical fact contained in this earning release including statements regarding our future responses to and effects of the COVID-19 pandemic; competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. These statements may include terminology such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “outlook”, “continue”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “prospects”, “plan”, or similar terminology. Forward-looking statements, including those related to the COVID- 19 pandemic, are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward- looking statements include, among others: the unknown duration and economic, operational and financial impacts of the global COVID-19 pandemic and the actions taken or contemplated by governmental authorities or others in connection with the pandemic on our business, our employees, customers and suppliers, including supply chain disruptions caused by mandated shutdowns and the adverse impact on customers, borrowers and other third parties to fulfill their obligations to us; disruption caused by business responses to COVID-19, including remote working arrangements, which may create increased vulnerability to cybersecurity or data privacy incidents; our ability to execute business continuity plans as a result of COVID-19; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products; including demand uncertainty caused by COVID-19; general economic conditions in each of our markets, including the significant economic

 

4

		PRESS RELEASE

 

uncertainty and volatility caused by COVID-19; travel bans, border closures, other free movement restrictions, and the introduction of social distancing measures in our facilities may affect in the future our ability to operate as well as the ability of our suppliers and distributors to operate; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our products; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities; housing starts and other construction activity; our ability to obtain financing or to refinance existing debt; price pressure on new and used vehicles; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, follow-on private litigation in various jurisdictions after the settlement of the EU antitrust investigation announced on July 19, 2016, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; our pension plans and other post-employment obligations; further developments of the COVID-19 pandemic on our operations, supply chains, distribution network, and level of demand of our products, as well as negative evolutions of the economic and financial conditions at global and regional levels; political and civil unrest; volatility and deterioration of capital and financial markets, including possible effects of “Brexit”, other pandemics, terrorist attacks in Europe and elsewhere, our ability to achieve the targets set out in the Strategic Business Plan announced on September 3, 2019 at our Capital Markets Day event; our ability to successfully and timely implement the planned spin-off of the Company’s On-Highway business; and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing. Further information concerning factors, risks, and uncertainties that could materially affect the Company’s financial results is included in our annual report on Form 20-F for the year ended December 31, 2019, prepared in accordance with U.S. GAAP and in the Company’s EU Annual Report at December 31, 2019, prepared in accordance with EU-IFRS, as well as in the CNH Industrial N.V. Quarterly Reports for the three months ended March 31, 2020 (prepared respectively in accordance with U.S. GAAP and EU-IFRS). Investors are expressly invited to refer to and consider the information on risks, factors, and uncertainties incorporated in the above-mentioned documents, in addition to the information presented here.

Forward-looking statements are based upon assumptions relating to the factors described in this earnings release, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. Our actual results could differ materially from those anticipated in such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update or revise publicly our forward-looking statements. The impact of COVID-19 has already exacerbated and is expected to further exacerbate all or part of the risks discussed in this section. Further information concerning CNH Industrial and its businesses, including factors that potentially could materially affect CNH Industrial’s financial results, is included in CNH Industrial’s reports and filings with the U.S. Securities and Exchange Commission (“SEC”), the Autoriteit Financiële Markten (“AFM”) and Commissione Nazionale per le Società e la Borsa (“CONSOB”).

All future written and oral forward-looking statements by CNH Industrial or persons acting on the behalf of CNH Industrial are expressly qualified in their entirety by the cautionary statements contained herein or referred to above.

Conference Call and Webcast

 

Today, at 3:30 p.m. CET / 2:30 p.m. GMT/ 9:30 a.m. EST, management will hold a conference call to present fourth quarter and full year 2020 results to financial analysts and institutional investors. The call can be followed live online at http://bit.ly/CNH_Industrial_Q4FY_2020 and a recording will be available later on the Company’s website www.cnhindustrial.com. A presentation will be made available on the CNH Industrial website prior to the call.

London, February 3, 2021

CONTACTS

 

Media Inquiries		Investor Relations
United Kingdom		United Kingdom
Richard Gadeselli		Federico Donati
Tel: +44 207 7660 346		Tel: +44 207 7660 386
Laura Overall
Tel: +44 207 7660 338		United States
		Noah Weiss
E-mail: mediarelations@cnhind.com		Tel: +1 630 887 3745
www.cnhindustrial.com

 

5

		PRESS RELEASE

 

CNH INDUSTRIAL N.V.

Condensed Consolidated Statements of Operations for the three months and years ended December 31, 2020 and 2019

(Unaudited, U.S.-GAAP)

 

		Three Months Ended December 31,								Years Ended December 31,
($ million)		2020				2019				2020				2019
Revenues
Net sales			8,035				7,183				24,285				26,149
Finance, interest and other income			466				512				1,747				1,930
TOTAL REVENUES			8,501				7,695				26,032				28,079
Costs and Expenses
Cost of goods sold			6,621				6,100				21,327				21,832
Selling, general and administrative expenses			644				582				2,155				2,216
Research and development expenses			289				275				932				1,030
Restructuring expenses			30				31				49				109
Interest expense			166				228				678				798
Goodwill impairment charge			—				—				585				—
Other, net			521				372				811				924
TOTAL COSTS AND EXPENSES			8,271				7,588				26,537				26,909
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES			230				107				(505	)			1,170
Income tax benefit (expense)			(28	)			10				50				271
Equity in income (loss) of unconsolidated subsidiaries and affiliates			(15	)			3				17				13
NET INCOME (LOSS)			187				120				(438	)			1,454
Net income attributable to noncontrolling interests			23				6				55				32
NET INCOME (LOSS) ATTRIBUTABLE TO CNH INDUSTRIAL N.V.			164				114				(493	)			1,422
(in $)
Earnings (loss) per share attributable to common shareholders
Basic			0.12				0.08				(0.36	)			1.05
Diluted			0.12				0.08				(0.36	)			1.05
Cash dividends declared per common share			—				—				—				0.203

 

6

		PRESS RELEASE

 

CNH INDUSTRIAL N.V.

Condensed Consolidated Balance Sheets as of December 31, 2020 and 2019

(Unaudited, U.S.-GAAP)

 

($ million)		December 31, 2020(*)				December 31, 2019
ASSETS
Cash and cash equivalents			8,785				4,875
Restricted cash			844				898
Financing receivables, net			18,457				19,428
Inventories, net			6,022				7,082
Property, plant and equipment, net and Equipment under operating leases			6,901				7,126
Intangible assets, net			2,696				3,344
Other receivables and assets			5,014				4,599
TOTAL ASSETS			48,719				47,352
LIABILITIES AND EQUITY
Debt			26,053				24,854
Other payables and liabilities			17,637				16,342
Total Liabilities			43,690				41,196
Redeemable noncontrolling interest			40				35
Equity			4,989				6,121
TOTAL LIABILITIES AND EQUITY			48,719				47,352

Notes:

 

(*)

On January 1, 2020, CNH Industrial adopted the accounting standard on Financial Instruments—Credit Losses (ASC 326) using the modified retrospective approach, without recasting prior periods. On the adoption of the standard, the impact to the consolidated balance sheet on January 1, 2020 was an increase to the allowance for credit losses of $26 million, a decrease to the investments in unconsolidated subsidiaries and affiliates of $17 million and an increase to deferred tax assets of $7 million, with the offset to retained earnings, net of tax, of $36 million.

CNH INDUSTRIAL N.V.

Condensed Consolidated Statements of Cash Flows for the years ended December 31, 2020 and 2019

(Unaudited- U.S.-GAAP)

 

($ million)		2020				2019
Net income (loss)			(438	)			1,454
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities			5,967				372
NET CASH PROVIDED BY OPERATING ACTIVITIES			5,529				1,826
NET CASH USED IN INVESTING ACTIVITIES			(2,750	)			(1,987	)
NET CASH PROVIDED BY FINANCING ACTIVITIES			659				206
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash			418				(75	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH			3,856				(30	)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR			5,773				5,803
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR			9,629				5,773

 

7

		PRESS RELEASE

 

CNH INDUSTRIAL N.V.

Supplemental Statements of Operations for the three months ended December 31, 2020 and 2019

(Unaudited, U.S.-GAAP)

 

		Three Months Ended December 31, 2020																Three Months Ended December 31, 2019
($ million)		Industrial Activities (1)				Financial Services				Eliminations				Consolidated				Industrial Activities (1)				Financial Services				Eliminations				Consolidated
Revenues
Net sales			8,035				—				—				8,035				7,183				—				—				7,183
Finance, interest and other income			18				485				(37)	(2)			466				22				531				(41)	(2)			512
TOTAL REVENUES			8,053				485				(37)				8,501				7,205				531				(41)				7,695
Costs and Expenses
Cost of goods sold			6,621				—				—				6,621				6,100				—				—				6,100
Selling, general and administrative expenses			560				84				—				644				523				59				—				582
Research and development expenses			289				—				—				289				275				—				—				275
Restructuring expenses			30				—				—				30				30				1				—				31
Interest expense			81				122				(37)	(3)			166				123				146				(41)	(3)			228
Goodwill impairment charge			—				—				—				—				—				—				—				—
Other, net			303				218				—				521				153				219				—				372
TOTAL COSTS AND EXPENSES			7,884				424				(37)				8,271				7,204				425				(41)				7,588
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES			169				61				—				230				1				106				—				107
Income tax benefit (expense)			(19)				(9)				—				(28)				29				(19)				—				10
Equity in income (loss) of unconsolidated subsidiaries and affiliates			(23)				8				—				(15)				(3)				6				—				3
NET INCOME (LOSS)			127				60				—				187				27				93				—				120

Notes:

 

(1)

Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, Commercial and Specialty Vehicles and Powertrain segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.

(2)	Elimination of Financial Services’ interest income earned from Industrial Activities.

(3)	Elimination of Industrial Activities’ interest expense to Financial Services.

CNH INDUSTRIAL N.V.

Supplemental Statements of Operations for the years ended December 31, 2020 and 2019

(Unaudited, U.S.-GAAP)

 

		Year Ended December 31, 2020																Year Ended December 31, 2019
($ million)		Industrial Activities (1)				Financial Services				Eliminations				Consolidated				Industrial Activities (1)				Financial Services				Eliminations				Consolidated
Revenues
Net sales			24,285				—				—				24,285				26,149				—				—				26,149
Finance, interest and other income			61				1,823				(137)	(2)			1,747				98				2,011				(179)	(2)			1,930
TOTAL REVENUES			24,346				1,823				(137)				26,032				26,247				2,011				(179)				28,079
Costs and Expenses
Cost of goods sold			21,327				—				—				21,327				21,832				—				—				21,832
Selling, general and administrative expenses			1,849				306				—				2,155				1,998				218				—				2,216
Research and development expenses			932				—				—				932				1,030				—				—				1,030
Restructuring expenses			49				—				—				49				105				4				—				109
Interest expense			305				510				(137)	(3)			678				380				597				(179)	(3)			798
Goodwill impairment charge			585				—				—				585				—				—				—				—
Other, net			108				703				—				811				187				737				—				924
TOTAL COSTS AND EXPENSES			25,155				1,519				(137)				26,537				25,532				1,556				(179)				26,909
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES			(809)				304				—				(505)				715				455				—				1,170
Income tax benefit (expense)			133				(83)				—				50				391				(120)				—				271
Equity in income (loss) of unconsolidated subsidiaries and affiliates			(11)				28				—				17				(13)				26				—				13
NET INCOME (LOSS)			(687)				249				—				(438)				1,093				361				—				1,454

Notes:

 

(1)

Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, Commercial and Specialty Vehicles and Powertrain segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.

(2)	Elimination of Financial Services’ interest income earned from Industrial Activities.

(3)	Elimination of Industrial Activities’ interest expense to Financial Services.

 

8

		PRESS RELEASE

 

CNH INDUSTRIAL N.V.

Supplemental Balance Sheets as of December 31, 2020 and 2019

(Unaudited, U.S.-GAAP)

 

		December 31, 2020																December 31, 2019
($ million)		Industrial Activities (1)				Financial Services				Eliminations				Consolidated				Industrial Activities (1)				Financial Services				Eliminations				Consolidated
ASSETS
Cash and cash equivalents			8,017				768				—				8,785				4,407				468				—				4,875
Restricted cash			99				745				—				844				120				778				—				898
Financing receivables, net			902				19,428				(1,873	) (2)			18,457				1,223				20,657				(2,452	) (2)			19,428
Inventories, net			5,981				41				—				6,022				6,907				175				—				7,082
Property, plant and equipment, net and Equipment under operating leases			4,987				1,914				—				6,901				5,319				1,807				—				7,126
Intangible assets, net			2,522				174				—				2,696				3,173				171				—				3,344
Other receivables and assets			4,600				733				(319	) (3)			5,014				4,084				809				(294	) (3)			4,599
TOTAL ASSETS			27,108				23,803				(2,192	)			48,719				25,233				24,865				(2,746	)			47,352
LIABILITIES AND EQUITY
Debt			8,288				19,638				(1,873	) (2)			26,053				6,558				20,748				(2,452	) (2)			24,854
Other payables and liabilities			16,722				1,234				(319	) (3)			17,637				15,336				1,300				(294	) (3)			16,342
Total Liabilities			25,010				20,872				(2,192	)			43,690				21,894				22,048				(2,746	)			41,196
Redeemable noncontrolling interest			40				—				—				40				35				—				—				35
Equity			2,058				2,931				—				4,989				3,304				2,817				—				6,121
TOTAL LIABILITIES AND EQUITY			27,108				23,803				(2,192	)			48,719				25,233				24,865				(2,746	)			47,352

Notes:

 

(1)

Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, Commercial and Specialty Vehicles and Powertrain segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.

(2)	This item includes the elimination of receivables/payables between Industrial Activities and Financial Services.

(3)	This item primarily represents the reclassification of deferred taxes assets/liabilities in the same taxing jurisdiction and elimination of intercompany activity between Industrial Activities and Financial Services.

CNH INDUSTRIAL N.V.

Supplemental Statements of Cash Flows for the years ended December 31, 2020 and 2019

(Unaudited- U.S.-GAAP)

 

		2020																2019
($ million)		Industrial Activities (1)				Financial Services				Eliminations				Consolidated				Industrial Activities (1)				Financial Services				Eliminations				Consolidated
Net income (loss)			(687	)			249				—				(438	)			1,093				361				—				1,454
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities			4,002				2,117				(152	) (2)			5,967				248				508				(384	) (2)			372
NET CASH PROVIDED BY OPERATING ACTIVITIES			3,315				2,366				(152	)			5,529				1,341				869				(384	)			1,826
NET CASH USED IN INVESTING ACTIVITIES			(1,697	)			(1,068	)			15	(3)			(2,750	)			(1,017	)			(990	)			20	(3)			(1,987	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES			1,563				(1,041	)			137	(4)			659				(273	)			115				364	(4)			206
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash			408				10				—				418				(77	)			2				—				(75	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH			3,589				267				—				3,856				(26	)			(4	)			—				(30	)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR			4,527				1,246				—				5,773				4,553				1,250				—				5,803
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR			8,116				1,513				—				9,629				4,527				1,246				—				5,773

Notes:

 

(1)

Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, Commercial and Specialty Vehicles and Powertrain segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.

(2)	This item includes the elimination of dividends from Financial Services to Industrial Activities.

(3)	This item includes the elimination of paid in capital from Industrial Activities to Financial Services.

(4)	This item includes the elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities net cash provided by operating activities, net of the elimination of paid in capital from Industrial Activities to Financial Services.

 

9