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ANNUAL REPORT
At December 31, 2021
CONTENTS
BOARD OF DIRECTORS AND AUDITOR ...................................................................................................................
LETTER FROM THE CHAIR  AND THE CHIEF EXECUTIVE OFFICER ................................................................
BOARD REPORT ..............................................................................................................................................................
PRESENTATION OF FINANCIAL AND CERTAIN OTHER INFORMATION .......................................................
OUR COMMITMENT TO SUSTAINABLE DEVELOPMENT AND LONG-TERM VALUE CREATION ............
REPORT ON OPERATIONS .......................................................................................................................................
SELECTED FINANCIAL DATA ...............................................................................................................................
RISK FACTORS ........................................................................................................................................................
BUSINESS OVERVIEW ...........................................................................................................................................
RESEARCH AND DEVELOPMENT .......................................................................................................................
HUMAN RESOURCES ............................................................................................................................................
OPERATING AND FINANCIAL REVIEW AND PROSPECTS ...........................................................................
RISK MANAGEMENT AND CONTROL SYSTEM ...............................................................................................
CORPORATE GOVERNANCE ...............................................................................................................................
REMUNERATION REPORT ....................................................................................................................................
MAJOR SHAREHOLDERS .....................................................................................................................................
SUBSEQUENT EVENTS AND OUTLOOK ...........................................................................................................
CNH INDUSTRIAL CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2021 ............................
CONSOLIDATED INCOME STATEMENT ................................................................................................................
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ......................................................................
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................................................................
CONSOLIDATED STATEMENT OF CASH FLOWS ...............................................................................................
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .................................................................................
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ...........................................................................
COMPANY FINANCIAL STATEMENTS AT DECEMBER 31, 2021 ..........................................................................
INCOME STATEMENT .................................................................................................................................................
STATEMENT OF FINANCIAL POSITION .................................................................................................................
NOTES TO THE COMPANY FINANCIAL STATEMENTS ......................................................................................
OTHER INFORMATION ...................................................................................................................................................
APPENDIX – CNH INDUSTRIAL GROUP COMPANIES AT DECEMBER 31, 2021
INDEPENDENT AUDITOR’S REPORT .........................................................................................................................
CNH Industrial N.V.
Corporate Seat: Amsterdam, the Netherlands
Principal Office: 25 St. James’s Street, London, SW1A 1HA, United Kingdom
Share Capital: €17,608,744.72 (as of December 31, 2021)
Amsterdam Chamber of Commerce: reg. no. 56532474
Contents    1
BOARD OF DIRECTORS
AND AUDITOR
BOARD OF DIRECTORS
Chair
Suzanne Heywood
Chief Executive Officer(a)
Scott W. Wine
Directors(b)
INDEPENDENT AUDITOR
Léo W. Houle(2)(3)(*)
Ernst & Young Accountants LLP
Catia Bastioli(2)(3)(**)(c)
Howard W. Buffett(2)(3)(**)
John Lanaway(1)(**)
Alessandro Nasi(2)(3)
Vagn Sørensen(1)(**)
Åsa Tamsons(1)(**)(c)
(1)Member of the Audit Committee
(2)Member of the Environmental, Social, and Governance Committee (formerly Governance and Sustainability Committee)
(3)Member of the Human Capital and Compensation Committee (formerly Compensation Committee)
(*)Independent Director and Senior Non-Executive Director
(**)Independent Director
(a)Mr. Scott W. Wine has served as Chief Executive Officer since January 4, 2021 and Executive Director since April 15, 2021.
(b)Ms. Jacqueline A. Tammenoms Bakker and Mr. Jacques Theurillat were members of the Board until April 15, 2021. Mr. Tufan Erginbilgic and Mr.
Lorenzo Simonelli were members of the Board until they voluntary resigned on December 23, 2021. Mr. Erginbilgic and Mr. Simonelli jointed the Iveco
Group Board of Directors effective January 1, 2022.
(c)Ms. Catia Bastioli and Ms. Åsa Tamsons were appointed by the shareholders as non-executive directors at the extraordinary general meeting of
shareholder of CNH Industrial N.V. held on December 23, 2021.
Disclaimer
All statements other than statements of historical fact contained in this filing, including 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.
Forward looking statements also include statements regarding the future performance of CNH Industrial and its subsidiaries on a standalone basis. 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, including any assumptions regarding strategic plans, 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 continued uncertainties related to 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; supply chain disruptions, including delays caused by mandated shutdowns, industry capacity constraints, material availability,
and global logistics delays and constraints; 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 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 of the Iveco Group 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; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of CNH Industrial
and its suppliers and dealers; security breaches with respect to our products; our pension plans and other post-employment obligations; further
developments of the COVID-19 pandemic on our operations, supply chains, distribution network, 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 other
pandemics, terrorist attacks in Europe and elsewhere; our ability to realize the anticipated benefits from our business initiatives as part of our strategic
plan; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and
other similar risks and uncertainties, and our success in managing the risks involved in the foregoing.
Forward-looking statements are based upon assumptions relating to the factors described in this Annual Report, which are sometimes based upon
estimates and data received from third parties. Such estimates and data are often revised. Actual results may differ materially from the forward-looking
statements as a result of a number of risks and uncertainties, many of which are outside CNH Industrial's control. CNH Industrial expressly disclaims any
Board of Directors and Auditor    2
intention or obligation to provide, update or revise any forward-looking statements to reflect any change in expectations or any change in events,
conditions or circumstances on which these forward-looking statements are based.
Additional factors which could cause actual results and developments to differ from those expressed or implied by the forward-looking statements are
included in the section “Risk Factors” of this Annual Report.
Further information concerning CNH Industrial, 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.
Board of Directors and Auditor    3
LETTER FROM THE CHAIR AND
THE CHIEF EXECUTIVE OFFICER
Dear Shareholders,
This year presented us with a wide range of challenges and opportunities, ranging from ongoing supply chain shortages
to the largest acquisition in CNH Industrial’s history. Despite this, our indefatigable team rose to the occasion and not
only navigated these, but also delivered record financial results.
Paramount in 2021 was completing the spin-off of our On-Highway business to create two strong and separately listed
industrial players: CNH Industrial (NYSE/MI: CNHI), focused on agriculture and construction, and Iveco Group (MI:
IVG), focused on commercial and mass transport, powertrain technologies and specialty vehicles. Our team planned
and executed this flawlessly, and we are incredibly excited about the future of each company as they address their
respective markets with renewed focus and vigor.
Alongside completing the critical last steps needed to prepare for the spin, we also continued to deliver for our
customers. In doing this we relied heavily on the lessons we learnt during the initial phases of the pandemic which have
made us more resilient and better positioned to achieve our strategic priorities. Though the pandemic persisted through
2021, we were able to find ways to continue to operate the business, working closely with our suppliers and dealers,
while helping our employees readjust to new ways of working. 
To support this effort, we also changed our organization during 2021, making it leaner, flatter and more agile so that it
can better respond to the dynamic demand and delivery environment in which we now operate. In our new organization
we have more than doubled the number of employees in customer facing roles. This means that we have much greater
insight into the market opportunities for our products and are better able to address those opportunities.
Alongside our work on the spin and our structure, and despite the need to continue to navigate a challenging supplier
environment, we were still able to achieve record financial results in 2021, both as one company and separately as
CNH Industrial and Iveco Group. We would like to congratulate and thank all of our colleagues that made this
performance possible. 
FINANCIAL HIGHLIGHTS
CNH Industrial reported strong full year performance in 2021, its final year of operations as a combined Off- and On-
Highway entity.  We delivered consolidated revenues of $33.5 billion, up 29% from the previous year.  Both our adjusted
EBIT from our Industrial Activities at $2,086 million(1) and our full year Net Income at $1.8 billion (which translates to
$1.28 in earnings per share) were the highest in our Company’s history.  Market driven volume and disciplined pricing
were key drivers of our record earnings, alongside the team’s successful execution, which they achieved while often
managing very challenging supply chain and logistics issues. We also recorded another very strong year for positive
free cash flow of Industrial Activities(1), at over $1.8 billion as our operational execution improved.
(1)  This item is a non-GAAP financial measure. Refer to the “Board Report - Operating and Financial Review and Prospects” section of this annual report
for information regarding non-GAAP financial measures.
Letter from the Chair and the Chief Executive Officer    4
MARKING TWO DISTINCT PATHS TO SUCCESS
Our Off-Highway and On-Highway businesses both announced important acquisitions, joint ventures and
memorandums of understanding during 2021. These have given both of these businesses significant additional access
to new technologies that will play important roles in their futures.
On the Off-Highway side of our business, now CNH Industrial, we announced the acquisition of Raven Industries. This
acquisition, the largest in CNH Industrial’s history, brings a US-based leader in precision agriculture technology into our
company, tremendously enhancing our technical capabilities. By combining CNH Industrial’s strong engineering
heritage with Raven’s technology, we will be able to introduce best-in-class products and solutions that deliver the
improved productivity and yields farmers desire.
During 2021, also within our Off-Highway business, our construction equipment leadership has successfully been
pursuing a turnaround plan. We built on this work by acquiring Sampierana S.p.A., a construction equipment company
based in Italy. Sampierana’s Eurocomach line enhances both our mini and midi excavator portfolio and our
electrification capabilities. We also announced a minority stake and exclusive multi-year technology licensing
agreement with US-based agricultural technology company Monarch Tractor to further our efforts in electrification and
autonomy in agriculture.
Our On-Highway business, now Iveco Group, held its first Investor Day in November 2021, in which it shared details of
its future business, its strategy and its financial ambitions through to 2026. Last year also saw the official inauguration
of our joint investment with the US-Based Nikola Corporation for heavy-duty Battery Electric Vehicles in Ulm, Germany,
and the start of production from that site.
In 2021, our On-Highway business began working with the French multinational Air Liquide to accelerate the
development of heavy-duty hydrogen mobility in Europe. It also made a significant step forward in announcing a
Memorandum of Understanding with US-based PlusAI to develop autonomous trucks and launch an autonomous
trucking pilot program in Europe and China.
OUR SHARED ESG SUCCESS
We were delighted that in 2021 we were again recognized as a sustainability leader in relation to both our facilities and
our products. This included being named as an Industry top scorer in the Dow Jones Sustainability World and Europe
Indexes for the 11th consecutive year; being recognized with a prestigious double ‘A’ score for global climate and water
stewardship by the CDP; earning an “S&P Global Gold Class” in S&P’s 2022 Sustainability Yearbook; and achieving an
EcoVadis Platinum medal in its prestigious annual sustainability assessment. Both CNH Industrial and Iveco Group
remain fully committed to their sustainability goals and these form an important part of each of their future plans.
2022 AS THE NEW CNH INDUSTRIAL
We have carried great momentum from 2021 into our first year as a fully focused agriculture and construction player,
starting with announcing our strong pro forma results and, at our Capital Markets Day in February, unveiling our
updated three-year strategic plan. Our plan prioritizes five key areas: Customer-Inspired Innovation; Technology
Leadership; Brand and Dealer Strength; Operational Excellence; and Sustainability Stewardship. Our plan, which we
have based around the needs and expectations of the farmers and construction professionals whom we serve, will
enable us to provide them with the world-class products and technologies they need to make their businesses ever
more successful.
This plan is supported by our CNH Industrial Business System, which we are using to drive ongoing operational
improvements across our activities. We will also continue to evolve our culture, making our company more attractive to
diverse groups, helping colleagues from different backgrounds build successful careers and ensuring that all colleagues
are rewarded not only for delivering results, but also for doing so in the right way.
Underlying and impelling all of this is our company purpose, revealed at our Capital Markets Day of Breaking New
Ground. This purpose captures our intention to move ahead of others, continually searching for better solutions and
breakthrough ideas. To achieve this, we will focus on three supporting pillars - Innovation, Sustainability and
Productivity. We will be innovative in our product launches, technology investments and approach to doing business.
Sustainability is our North Star and at the heart of every strategic decision we take. And underlying all of this is
productivity – helping us and the world’s farmers and construction professionals to do more, with less, and thus
enabling them to realize their businesses’ full potential.
Letter from the Chair and the Chief Executive Officer    5
2022 guidance(*)
While we are pleased with our 2021 results, we continue to expect supply chain challenges in 2022, which are likely to
diminish in the second half of the year. As these subside, we expect production and retail sales to increase.
We are therefore providing the following guidance for our 2022 Industrial Activities outlook:
▪Net sales(**) to grow 10% to 14% including currency translation effects;
▪SG&A expenses lower or equal to 7.5% of net sales;
▪Free Cash Flow in excess of $1 billion;
▪R&D expenses and Capital expenditures up at around $1.4 billion from around $1.0 billion in 2021.
In closing, we want again to wish Gerrit Marx, his leadership team and the entire Iveco Group organization the very best
as they move forward with great energy in their first year of independent operations. We are excited to see what our two
strong companies will achieve with their unleashed potentials.
We also want to thank you, our valued shareholders, for your continued support. We look forward to delivering great
results and rolling out new, customer-inspired developments that will advance agriculture and construction and provide
you with progressive returns.
Sincerely,
Suzanne Heywood                                                                      Scott W. Wine
CHAIR, CNH INDUSTRIALCHIEF EXECUTIVE OFFICER, CNH INDUSTRIAL
(*)  CNH Industrial manages its operations, assesses its performance and makes decision about allocation of resources based on financial results
prepared only in accordance with U.S. GAAP, and, accordingly, also the full year guidance presented below is prepared under U.S. GAAP.
(**)  Net sales reflecting the exchange rate of 1.20 EUR/USD
Letter from the Chair and the Chief Executive Officer    6
BOARD REPORT
PRESENTATION OF FINANCIAL AND
CERTAIN OTHER INFORMATION
CNH Industrial N.V. (“CNH Industrial”) is incorporated under the laws of the Netherlands. CNH Industrial has its
corporate seat in Amsterdam, the Netherlands, and its principal office in London, England, United Kingdom. Unless
otherwise indicated or the context otherwise requires, as used in this Annual Report, the terms “CNH Industrial”, “we”,
“us”, and “our”, refer to CNH Industrial N.V. together with its consolidated subsidiaries.
CNH Industrial presents its Consolidated Financial Statements, prepared in accordance with International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and adopted by the
European Union (“EU-IFRS”).
CNH Industrial reports quarterly and annual financial results both under accounting standards generally accepted in the
United States (“U.S. GAAP”) for SEC reporting purposes and under EU-IFRS for European listing purposes and for
Dutch law requirements. The reconciliation from EU-IFRS figures to U.S. GAAP is presented, on a voluntary basis, in
the Notes to the Consolidated Financial Statements. Financial statements under both sets of accounting principles use
the U.S. dollar as the presentation currency. Until December 31, 2021, prior to the demerger occurred on January 1,
2022 (as described in the Business Overview chapter) CNH Industrial reported its operations under five segments:
Agriculture, Construction, Commercial and Specialty Vehicles, Powertrain, and Financial Services. The activities carried
out by Agriculture, Construction, Commercial and Specialty Vehicles, and Powertrain, as well as corporate functions,
are collectively referred to as “Industrial Activities”.
We have prepared our annual consolidated financial statements presented in this Annual Report in accordance with
EU-IFRS and with Part 9 of Book 2 of the Dutch Civil Code. Our consolidated financial statements are prepared with the
U.S. dollar as the presentation currency and, unless otherwise indicated, all financial data set forth in this Annual Report
are expressed in U.S. dollars.
Certain financial information in this report has been presented by geographic region. Our geographic regions are: (1)
North America; (2) Europe; (3) South America and (4) Rest of World. The geographic designations have the following
meanings:
▪North America: United States, Canada and Mexico;
▪Europe: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine
and Balkans;
▪South America: Central and South America, and the Caribbean Islands; and
▪Rest of World: Continental Asia (including Turkey and Russia), Oceania and member countries of the Commonwealth
of Independent States, the African continent, and Middle East.
Certain industry and market share information in this Annual Report has been presented on a worldwide basis which
includes all countries. In this Annual Report, management estimates of market share information are generally based
on retail unit sales data in North America, on registrations of equipment in most of Europe, Brazil, and various Rest of
World markets, and on retail and shipment unit data collected by a central information bureau appointed by equipment
manufacturers associations, including the Association of Equipment Manufacturers in North America, the Committee for
European Construction Equipment in Europe, the Associação Nacional dos Fabricantes de Veículos Automotores
(“ANFAVEA”) in Brazil, the Japan Construction Equipment Manufacturers Association, and the Korea Construction
Equipment Manufacturers Association, as well as on other shipment data collected by independent service bureaus.
Not all agricultural or construction equipment is registered, and registration data may thus underestimate, perhaps
substantially, actual retail industry unit sales demand, particularly for local manufacturers in China, Southeast Asia,
Eastern Europe, Russia, Turkey, Brazil, and any country where local shipments are not reported. For Commercial
Vehicles, regions are defined as: Europe (the 27 countries where our Commercial Vehicles business competes,
excluding the United Kingdom and Ireland, for market share and total industry volume (“TIV”) reporting purposes),
South America (Brazil, Argentina and Venezuela) and Rest of World (Russia, Turkey, South East Asia, Australia and
New Zealand). In addition, there may be a period of time between the shipment, delivery, sale and/or registration of a
unit, which must be estimated, in making any adjustments to the shipment, delivery, sale, or registration data to
determine our estimates of retail unit data in any period.
Board Report  Presentation of Financial and Certain Other Information    7
OUR COMMITMENT TO SUSTAINABLE
DEVELOPMENT AND LONG-TERM VALUE
CREATION
CNH Industrial is committed to a better future, integrating sustainability in its day-to-day activities and involving all
employees. The full integration of environmental and social considerations with economic objectives enables the Group
to identify potential risks and seize additional development opportunities, resulting in a process of continuous, and
sustainable, improvement that creates value over the long-term.
As evidence of this, CNH Industrial included strategic sustainability targets in its Strategic Business Plan that are in line
with the Company’s priorities; these in turn are based on internal assessment and stakeholder engagement.
The priorities and targets are aligned with the six UN Sustainable Development Goals ("SDGs") most relevant to CNH
Industrial:
▪SDG 2: Zero hunger - end hunger, achieve food security and improved nutrition, and promote sustainable agriculture;
▪SDG 3: Good health and well-being - ensure healthy lives and promote wellbeing for all at all ages;
▪SDG 8: Decent work and economic growth - promote sustained, inclusive, and sustainable economic growth, full and
productive employment, and decent work for all;
▪SDG 10: Reduced inequalities - reduce inequality within and among countries;
▪SDG 12: Responsible consumption and production - ensure sustainable consumption and production patterns;
▪SDG 13: Climate action - take urgent action to combat climate change and its impacts.
These SDGs will inspire CNH Industrial’s future endeavors in terms of sustainability targets, practices, and projects.
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    8
The targets were incorporated into the Sustainability Plan, which expresses CNH Industrial’s commitment to contribute
to development in harmony with people and the environment. The Sustainability Plan, which also includes short-term
targets, is updated annually to report the progress of existing projects and establish new targets to ensure continuous
improvement, essential for long-term growth and value creation.
The Sustainability Model facilitates the identification of aspirational goals and strategic sustainability targets. The Model
illustrates the relationship between CNH Industrial and the external drivers that affect its business (or have the potential
to do so) and provides an overview of how the Group is structured to deal with and manage them. These external
drivers are the variables that continuously feed, guide, and steer the internal mechanisms of CNH Industrial. They
consist of global challenges, customer needs, and the regulatory framework.
Global challenges(1) are long-term global changes affecting governments, economies, and societies. They reflect
ongoing changes across the globe and emerging social needs. Customer needs identify customer priorities and
demand for products and services. The regulatory framework fosters continuous improvement through legislation,
regulation, and industry standards.
(1)  The global challenges selected by CNH Industrial are: climate change; food scarcity and food security; and the innovative and digital world.
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    9
CNH Industrial responds to these external drivers with a shared corporate purpose, defined as "Powering Sustainable
Transformation", and an individual purpose for each segment, consistent across the Group and viable over the
medium-to-long term, as well as with a set of values that lie at the core of CNH Industrial’s day-to-day activities.
CNH Industrial's purpose and values are implemented through:
▪strategic planning, including medium-to-long term targets;
▪a system of principles, rules, and procedures in which roles and responsibilities are clearly defined; and
▪a process that anticipates and manages current and future economic, environmental, and social risks and
opportunities.
Moving closer to the core of the Model, the emphasis shifts from strategy and governance to the operational aspects of
the Group. These consist of processes and applications such as manufacturing and logistics, product development and
innovation, and employee behavior and stakeholder engagement, all of which must be integrated into the entire value
chain to achieve CNH Industrial’s core objective: the creation of sustainable, long-term value for all stakeholders.
Sustainability is a core element of CNH Industrial’s Corporate Governance, with senior management playing a direct
and active role. The Environmental, Social, and Governance Committee (the "Environmental, Social, and Governance
Committee") of the Board of Directors ("Board") is responsible for, among other things, assisting the Board in:
monitoring and evaluating reports on CNH Industrial’s sustainable development policies and practices, management
standards, strategy, global performance and governance; reviewing, assessing, and making recommendations on
strategic sustainability guidelines, including occupational health and safety and climate-related issues; and reviewing
the Company’s annual Sustainability Report(2).
(2)  The 2021 Sustainability Report will be made available on the Company’s website as of April 13, 2022, the day of the 2021 Annual General Meeting of
Shareholders.
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    10
CNH Industrial has established an organizational structure made up of global and regional sustainability committees
and the Sustainability Team in order to optimize the management of sustainability aspects within the Group.
The Sustainability Steering Committee (“SSC”) is a committee of the Senior Leadership Team ("SLT"), and is
responsible for identifying sustainability strategies, integrating them with business needs, adopting a medium-to-long
term vision, and providing a forum for communication and benchmarking among the geographic areas.
The SSC is chaired by the Chief Diversity & Inclusion, Sustainability and Transformation Officer, and is coordinated by
the Sustainability Unit. The permanent members of the committee are the SLT members.
The Sustainability Team is a network of experts responsible for incorporating sustainability criteria more effectively into
Company strategy and for ensuring the necessary support for sustainability planning and reporting. The Sustainability
Team is overseen by the Chief Diversity & Inclusion, Sustainability and Transformation Officer and comprises personnel
with global expertise (the Sustainability Unit and twenty-five Sustainability Points of Reference), as well as the Global
Social Initiatives team, composed of the representatives for local community initiatives.
CNH Industrial's sustainability management system consists of the following tools:
▪the Code of Conduct, approved by the Board of Directors, and related policies that set out the Company’s approach
to key topics;
▪a set of policies to manage specific issues, as well as the Human Capital Management Guidelines, Green Logistics
Principles, and the Supplier Code of Conduct;
▪the materiality analysis, which defines social and environmental priorities;
▪stakeholder engagement on material topics;
▪a set of approximately 200 sustainability-related Key Performance Indicators, designed to provide comprehensive
coverage of all the key environmental, social, and governance aspects, in line with the GRI Sustainability Reporting
Standards ("GRI Standards") and the Sustainability Accounting Standards (“SASB Standards”) and those of the
major sustainability rating agencies;
▪the Sustainability Plan, also including the strategic sustainability targets, which identifies action priorities and tracks
commitments undertaken; and
▪the annual Sustainability Report, which discloses the Company’s sustainability performance.
The Sustainability Report, prepared on a voluntary basis and in line with GRI Standards and SASB Standards,
integrates the economic aspects described herein with a comprehensive view of the environmental and social
performance of CNH Industrial’s operations.
Materiality analysis
The materiality analysis is a tool that CNH Industrial uses to ensure close alignment between the material topics
identified and the Company's business decisions, increasingly integrating sustainability principles into the Company's
daily activities. According to this approach, topics are considered material if they reflect CNH Industrial’s economic,
environmental, and social impact, or influence the decisions of stakeholders.
In the past six years, the material topics have been evaluated through stakeholder engagement to assess:
▪their relevance to CNH Industrial, based on feedback from the SSC members (feedback updated in 2019);
▪their relevance to stakeholders, based on feedback from a sample of 2,068 stakeholders (55 in 2021) including
employees, customers, dealers, opinion leaders, public institutions, non-governmental organizations, investors, and
journalists.
CNH Industrial managers and stakeholders were engaged through an online survey or direct interviews. They were
asked to evaluate the 14 material topics identified, ranking the five most significant based on their impact on the
economy, the environment, and society.
CNH Industrial's Materiality Matrix reflects how frequently each material topic was selected. It was shared with the SLT
members, reviewed by the SSC, and reviewed and approved by the Chief Executive Officer ("CEO"). The final phase
involved third party assurance of compliance, in which the Matrix development process was audited by an independent
company.
CNH Industrial also performed a specific analysis in order to identify the link between the SDGs most relevant to the
business (the 6 SDGs aligned with the commitments stated in the Sustainability Plan) and the 14 material topics. A
circle's size in the matrix reflects the degree to which the corresponding topic matches an SDG.
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    11
The Materiality Matrix confirms the greater significance of business-related aspects, in line with the sustainability
priorities defined within CNH Industrial's Strategic Business Plan. Specifically, from a circular economy perspective, the
material topic Circular product life cycle was considered, both within and outside the Company, as one of the most
relevant to CNH Industrial, highlighting the importance of adopting alternative solutions that minimize the impact of a
product’s life cycle. CO2 and other air emissions was also one of the most relevant topics, considering not only the
impact of manufacturing processes, but also of the entire value chain (logistics, supply chain, and product use). Even
the topic Occupational health and safety ranked among the most relevant to both the Company and its stakeholders,
highlighting the importance of an approach based on effective preventive and protective measures that involves all
employees.
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    12
CNH Industrial’s materiality analysis employs a multi-year approach. The Materiality Matrix is updated annually to
incorporate changes in stakeholder perceptions and any new aspect that may become significant for the Company or
its stakeholders.
Topic
Reference
PRODUCT & INNOVATION
Circular Product life cycle
Business Overview/Industry Overview
Autonomous vehicles
Business Overview/Industry Overview
Connectivity
Business Overview/Industry Overview
Self-sustaining food systems
Business Overview/Industry Overview
Trade, regulations, and public debate
Business Overview/Industry Overview
BEHAVIORS & ENGAGEMENT
Occupational health and safety
Human Resources/Employees
Local community engagement
Corporate Governance/Community Relations
Value chain management
Business Overview/Suppliers
Employee engagement
Human Resources/Employees
Digital workplaces
N.A.
PROCESSES & APPLICATIONS
CO2 and other air emissions
Business Overview/Plants and Manufacturing Processes
Renewable energy
Business Overview/Plants and Manufacturing Processes
Water and waste efficiency
Business Overview/Plants and Manufacturing Processes
Innovation-to-zero
Business Overview/Plants and Manufacturing Processes;
Human Resources/Employees
Taskforce on Climate-related Financial Disclosures
CNH Industrial is committed to climate change mitigation and aims for full transparency in its management of climate-
related risks and opportunities through the disclosures provided in this section, in accordance with the
recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD"). The following section contains
four thematic areas showing how the Company is addressing climate-change risks and opportunities: Governance,
Strategy, Risk Management, and Metrics and Targets. For further details, please see the TCFD correspondence table at
the end of this section.
Governance
The highest responsibility for defining and implementing the strategy of CNH Industrial is assigned to the Board of
Directors. The Environmental, Social, and Governance Committee of the Board of Directors is responsible, among
other things, for assisting the Board in reviewing and guiding the strategy and risk management policies related to
climate change. Moreover, the Committee is responsible for monitoring the implementation of the measures to meet
climate change targets, such as CO2 emissions and energy efficiency. The Committee meets quarterly and, at least
twice per year, the Chief Diversity & Inclusion, Sustainability and Transformation Officer updates the Environmental,
Social, and Governance Committee on the progress of CO2 emissions reduction and energy efficiency in manufacturing
and logistic processes, as well as for suppliers.
At the management level, the highest responsibility for initiatives focusing on energy efficiency and on the management
of CO2 emissions at CNH Industrial lies with the Senior Leadership Team (“SLT”).
SLT members are also members of the Sustainability Steering Committee (“SSC”). The SSC is responsible for
defining sustainability strategy and for integrating sustainability aspects into operating processes, and is chaired by the
Chief Diversity & Inclusion, Sustainability and Transformation Officer.
The operating segments of the Company are fully responsible for the global growth and performance of their
respective businesses, thereby increasing focus and accountability. For this reason, the different segments have
nominated specific committees responsible for the implementation and monitoring of the Company’s strategy. Climate-
change issues are regularly discussed by these committees to ensure responsible management of climate risks and to
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    13
identify trends and opportunities, including potential impacts of new product development and new market
considerations.
Additionally, the Risk Management Center of Competence addresses all stages of pure risk(3) management, including
risk identification, analysis, and treatment (including loss prevention).
To further align the management commitment to climate-change mitigation, part of the CEO’s and other SLT members’
remuneration is linked to the sustainability targets, such as the reduction of CO2 emissions per production unit. The
remuneration of the management is reviewed and approved by the Compensation Committee of the Board of Directors.
Objectives are defined for business unit and energy managers and are related to energy consumption reduction and
greenhouse gas (GHG) emissions reduction. Targets are included in the Performance Management Process.
Strategy
CNH Industrial’s strategy is framed within the Company’s purpose, defined as “Powering Sustainable
Transformation”, which incorporates a set of values that lie at the core of the Company’s day-to-day activities and are
intrinsically linked to its future business success. Specific to climate change, and as described further below, CNH
Industrial has an established risk management process that includes the assessment and monitoring of climate-related
risk. These assessments are used by the Company to identify not only risk exposure, but also opportunities, on which
the Company’s climate change strategy is based. The identification of these climate-related risks and opportunities,
along with the analysis of sustainability macrotrends, led to the definition of a decarbonization strategy, which in turn
has been incorporated within, and regularly influences, the Company’s Strategic Business Plan. To further address the
potential impacts of climate change, CNH Industrial has implemented relevant projects and a number of other specific
climate-related topics and has defined long-term strategic targets.
Climate-related risks and opportunities are embedded within CNH Industrial’s strategy to ensure resiliency of its
business model in light of shifting global challenges. The Company has established specific functions and structures
within its respective operating segments to monitor the relevant emerging policies and regulatory developments at
local and global level (especially in Europe, where regulatory pressure is more significant). Resulting analyses are
incorporated within the Company strategy to ensure full compliance with applicable laws. The shift in consumer
preferences and demand toward sustainable transport solutions, driven by both an increase in climate-related
awareness and strong stimulus coming from regulators, may result in potential risks for manufacturers that must adapt
to the evolving market. To counter this, CNH Industrial applies these evolutions in the development of its product
portfolio to steer the focus of research and development toward sustainable technologies (e.g. “green” fuels, electric
and hydrogen propulsion technologies, digitalization and related intelligent capabilities that include precision farming
and smart water management, etc.). The Company also takes advantage of collaboration with strategic business
partners, startups, and external expertise in the emerging technology sector.
To ensure the timely delivery of its strategy, the Company has established specific targets linked to the environmental
performance of its manufacturing processes, logistics, and product portfolio, as outlined in the section Metrics and
Targets below.
CNH Industrial developed a scenario analysis which led to the identification of the Internal Price of Carbon (“IPoC”), an
indicator that enables it to prioritize energy-saving projects based on their ability to generate the greatest reduction in
CO2 emissions. The IPoC is used as a decision-making tool whenever an initiative is presented to the Company’s
Investment Committee.
(3) Pure risks are risks resulting from natural causes or accidental or malicious acts (fires, explosions, floods, etc.) that may result not only in damage to
goods or facilities, but also in the short or long-term interruption of operations.
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    14
Risk Management
Enterprise Risk Management
Risk management is an important component of CNH Industrial’s overall culture and is integral to the achievement of its
long-term business plan. Accordingly, the Company’s Enterprise Risk Management (“ERM”) process has been designed
to assist in the identification, evaluation, and prioritization of business risks, followed by a coordinated and balanced
application of resources to minimize, monitor, and control the probability or impact of adverse events or to maximize the
realization of opportunities.
The ERM process is linked to the Company’s Sustainability Program and its strategic sustainability targets and
aspirational goals, including those related to climate change, which are articulated in the Company’s Strategic Business
Plan. 
The effects of climate change represent a key emerging risk to CNH Industrial and, as referenced above, examples of
the Company’s related mitigation actions include investments in technology as part of its decarbonization strategy, and
efforts to reduce energy consumption in manufacturing processes.
More details on CNH Industrial’s enterprise risk management process, including its risk appetite for individual risk
categories, can be found in the Risk Management and Control System section of this Report.
Pure Risk Management
In order to strengthen sustainability and resilience within CNH Industrial, the Company also works to develop and
launch forward-looking solutions to better understand the impacts of natural hazards and to respond accordingly. The
ability to assess the losses and costs associated with natural hazards is essential for better decision making on hazard-
mitigation investments and planning.
CNH Industrial’s Risk Management function has developed an innovative risk management methodology in
collaboration with the Company’s EHS (Environment Health & Safety) departments, a major international consultancy
and certification firm, and an insurance partner. This methodology has enabled CNH Industrial to: (i) obtain objective,
quantified knowledge of insurable environmental exposures; (ii) improve risk profiles according to the segments’ EHS
strategies; (iii) identify and clearly communicate priorities and benefits; (iv) effectively inform the insurance market about
the loss prevention activities in place to prevent or mitigate potential environmental losses; (v) obtain adequate
environmental insurance coverage, commensurate with risk exposures and current loss prevention activities; (vi) carry
out prevention activities in line with Company strategies. These activities provided the basis for the development of the
Company’s first environmental maps, which quantify the overall level of risk using a scientific, certified self-assessment
tool. The results were presented to the insurance market as evidence that CNH Industrial’s environmental risks are
known, well-quantified, and properly managed. The results also led to comprehensive global insurance coverage. A
similar approach is being followed for earthquake and flood risks.
Metrics and targets
CNH Industrial has developed various indicators and tools to assess its contribution, exposure, and resilience to climate
change. Annually, the Company reports its climate change impacts and performance according to the requirements of
the GRI Standards in its Sustainability Report. CO2 emissions are calculated according to the Greenhouse Gas Protocol
(GHG Protocol), incorporated into Company Guidelines.
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    15
METRICS
2021
2020
2019
Plants in scope
55
57
57
Direct energy consumption from renewable sources (GJ/000)
6
2
14
Direct energy consumption from non-renewable sources (GJ/000)
3,307
2,726
3,095
Total direct energy consumption (GJ/000)
3,313
2,728
3,109
Total indirect energy consumption from renewable sources (GJ/000)
2,043
1,680
1,943
Total indirect energy consumption from non-renewable sources (GJ/000)
1,428
1,182
1,301
Total indirect energy consumption (GJ/000)
3,471
2,862
3,244
Direct CO2 emissions (Scope 1) (Mtons/000)
186
151
171
Indirect CO2 emissions (Scope 2 – market-based) (Mtons/000)
147
133
157
Indirect CO2 emissions (Scope 2 – location-based) (Mtons/000)
264
236
309
Total CO2 emissions (Scope 1 and Scope 2 – market-based) (Mtons/000)
333
284
328
Based on the climate-related risks and opportunities identified, CNH Industrial sets targets to reduce emissions and
increase energy efficiency:
TARGETS
REFERENCE
PERIOD
2021
RESULTS
Monitoring of CO2 emissions of 100% of key suppliers
2022
73.0%
'-20%vs 2014 in kg of CO2 emissions per ton of goods transported (including spare parts)
2024
+10.0%
25% of product portfolio available with natural gas powertrains
2024
20.0%
-30% vs 2014 in energy consumption per production unit at Company plants worldwide
2030
-32.5%
'-60% vs 2014 in CO2 emissions per production unit at Company plants worldwide (2024
target: -50% vs 2014 in CO2 emissions per production unit)
2030
-55.0%
90% of total electricity consumption derived from renewable sources (2024 target: 80% of
total electricity consumption derived from renewable sources)
2030
74.9%
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    16
TCFD correspondence table
Thematic area
Recommended TCFD disclosures
Reference
Governance Disclose the
organization’s governance around
climate-related risks and
opportunities.
a) Describe the board’s oversight of
climate-related risks and opportunities.
§ Annual Report: Our commitment to sustainable development
and Long-term Value Creation; Corporate Governance/Board of
Directors; the Environmental, Social, and Governance
Committee
§ CDP Climate Change Questionnaire: C1 - Governance
§ Sustainability Report: Our Governance Model/Governance
Structure; Manufacturing Processes/Energy management
b) Describe management’s role in
assessing and managing climate-related
risks and opportunities.
§ Annual Report: Our commitment to sustainable development
and Long-term Value Creation
§ CDP Climate Change Questionnaire: C1 - Governance
§ Sustainability Report: Our Governance Model/Governance
Structure; Manufacturing Processes/Energy management
Strategy Disclose the actual and
potential impacts of climate-related
risks and opportunities on the
organization’s businesses, strategy,
and financial planning where such
information is material.
a) Describe the climate-related risks and
opportunities the organization has
identified over the short, medium, and
long term.
§ Annual Report: Business Overview/Industry Overview; Risk
Management and Control System
§ CDP Climate Change Questionnaire: C2 - Risks and
Opportunities; C3 - Business strategy
§ Sustainability Report: Our commitment to the future/
Materiality Analysis; Manufacturing Processes/Energy
Management; Purchasing Processes; Sustainable Products
b) Describe the impact of climate-related
risks and opportunities on the
organization’s businesses, strategy, and
financial planning.
§ Annual Report: Business Overview/Industry Overview; Risk
Management and Control System
§ CDP Climate Change Questionnaire: C2 - Risks and
Opportunities; C3 - Business strategy
§ Sustainability Report: Our commitment to the future/
Materiality Analysis; Manufacturing Processes/Energy
Management; Purchasing Processes; Sustainable Products
c) Describe the resilience of the
organization’s strategy, taking into
consideration different climate-related
scenarios, including a 2°C or lower
scenario.
§ Annual Report: Business Overview/Industry Overview; Risk
Management and Control System
§ CDP Climate Change Questionnaire: C2 - Risks and
Opportunities; C3 - Business strategy
§ Sustainability Report: Our commitment to the future/
Materiality Analysis; Manufacturing Processes/Energy/
Management; Purchasing Processes; Sustainable Products
Risk Management Disclose how the
organization identifies, assesses,
and manages climate-related risks.
a) Describe the organization’s processes
for identifying and assessing climate-
related risks.
§ Annual Report: Risk Management and Control System
§ CDP Climate Change Questionnaire: C2 - Risks and
Opportunities
§ Sustainability Report: Our Governance Model/Risk
Management
b) Describe the organization’s processes
for managing climate-related risks.
§ Annual Report: Risk Management and Control System;
Business Overview/Plants and Manufacturing Processes
§ CDP Climate Change Questionnaire: C2 - Risks and
Opportunities
§ Sustainability Report: Our Governance Model/Risk
management; Manufacturing Processes/Energy Management;
Purchasing Processes; Sustainable Products
c) Describe how processes for identifying,
assessing, and managing climate-related
risks are integrated into the organization’s
overall risk management.
§ Annual Report: Risk Management and Control System
§ CDP Climate Change Questionnaire: C2 - Risks and
Opportunities
§ Sustainability Report: Our Governance Model/Risk
Management
Metrics & targets Disclose the
metrics and targets used to assess
and manage relevant climate-related
risks and opportunities where such
information is material.
a) Disclose the metrics used by the
organization to assess climate-related
risks and opportunities in line with its
strategy and risk management process.
§ Annual Report: Business Overview/Plants and Manufacturing
Processes
§ CDP Climate Change Questionnaire: C4 - Targets and
performance; C6 - Emissions data; C8 - Energy
§ Sustainability Report: Manufacturing Processes/Energy
Management; Energy Performance
b) Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 greenhouse gas
(GHG) emissions, and the related risks.
§ Annual Report: Business Overview/Plants and Manufacturing
Processes
§ CDP Climate Change Questionnaire: C4 - Targets and
Performance; C6 - Emissions data; C8 - Energy
§ Sustainability Report: Manufacturing Processes/Energy
Management; Energy Performance
c) Describe the targets used by the
organization to manage climate-related
risks and opportunities and performance
against targets.
§ Annual Report: Business Overview/Plants and Manufacturing
Processes
§ CDP Climate Change Questionnaire: C4 - Targets and
Performance; C6 - Emissions data; C8 - Energy
§ Sustainability Report: Manufacturing Processes/Energy
Management; Energy performance
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    17
EU Taxonomy on sustainable activities
The EU taxonomy classification system establishes a list of environmentally sustainable economic activities, supporting
the EU Green Deal objectives. The Regulation provides appropriate definitions for which economic activities can be
considered environmentally sustainable. There are six environmental targets in the EU Taxonomy, two of which are now
regulated: Climate Change Mitigation and Climate Change Adaptation, while the remaining four will be regulated during
2022.
For each objective, the EU taxonomy provides a list of economic activities that can substantially contribute to it,
provided that the activity meets the related technical screening criteria(1).
For this first year of reporting, companies are required to disclose the proportion of turnover, capital expenditure
(CapEx), and operating expenditure (OpEx) of taxonomy eligible and non-eligible activities related to climate change
objectives: i.e. those activities included within Annexes 1 and 2 of Delegated Act 2139/2021 irrespective of whether they
meet any or all of the technical screening criteria laid down in those delegated acts. The assessment of the actual
alignment with the technical screening criteria is required from the next reporting year.
CNH Industrial activities considered eligible according to the EU taxonomy are included in two economic activity
groups: Manufacture of low carbon technologies for transport (3.3), and Transport by motorbikes, passenger cars, and
light commercial vehicles (6.5).
After investigating and consulting on EU Taxonomy’s list of activities, the KPIs related are included in the table below.
2021
Proportion of taxonomy eligible
economic activities
Proportion of taxonomy non-
eligible economic activities
Turnover
30%
70%
CapEx
27%
73%
OpEx
9%
91%
Accounting Policy (1.2.1)
For the determination of the 3 KPIs, the Group's Sustainability department, and the Accounting and Finance
Department were involved, which, based on the indications given in Annex 1 to Delegated Act 2178/2021, identified the
values to be included in the KPIs from the balance sheet items, as described in the next paragraph.
In the numerator, only the balance sheet items related to the identified activities (3.3 and 6.5) were considered. For the
calculation of the denominator, all the items provided for by the regulations at a consolidated CNH Industrial N.V. level
were included, as specified within the contextual information paragraph.
Assessment of compliance with Regulation (EU) 2020/852 (1.2.2)
Group identified two taxonomy eligible activities:
•Manufacture of low carbon technologies for transport (3.3), considering the sales from the Commercial Vehicles
segment (CV) manufactured by the Group and vehicle maintenance and repair. Revenues from the sale of spare
parts and individual components are excluded from the numerator. 
•Transport by motorbikes, passenger cars, and light commercial vehicles (6.5), considering active leasings for CV
vehicles.
To avoid any double counting in the calculation of the 3 KPIs, the values were determined directly from the items
included in the financial statement of CNH Industrial N.V.
(1)  The list of economic activities and the related technical screening criteria are laid down in Annex 1 and Annex 2 of the Commission Delegated Act
2021/2139 supplementing Regulation (EU) 2020/852
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    18
Contextual information (1.2.3)
Turnover KPI:
a.The denominator was identified based on Group’s consolidated net turnover from industrial activities.
b.The numerator was identified including net sales from sales of Trucks and Buses (New and Used) and
Services, revenues from repair and maintenance, and leasing fees. Revenues related to Specialty Vehicles
(Defence and Fire Fighting), from the remaining segments of the industrial activities, and revenues from Spare
Parts are excluded.
CapEx KPI:
a.The denominator consists of additions to tangible and intangible fixed assets during the financial year, before
depreciation, amortization, and any re-measurements, including those resulting from revaluations and
impairments, as well as excluding changes in fair value.
b.The numerator equals capital expenditures, that are part of the denominator, referred to CV vehicles: buses,
light, medium, and heavy trucks.
OpEx KPI:
a.The denominator includes all direct non-capitalized costs related to maintenance, building renovation
measures, research and development, short-term lease, and any other direct expenditures relating to the day-
to-day servicing of assets of property, plant, and equipment.
b.The numerator equals the direct non-capitalized costs that are part of the denominator referred to CV vehicles:
buses, light, medium, and heavy trucks.
There are no amounts in the reported values related to economic activities included in the taxonomy conducted for the
internal consumption of the Group.
Within the CapEx and OpEx items, there are no items related to a plan to expand the economic activities aligned to the
taxonomy.
Methodologies
This Non-Financial Statement addresses the requirements of the Dutch Decree dated March 14, 2017 on Non-Financial
Information, that implemented the Directive 2014/95/EU into Dutch law. This Non-Financial Statement is based on the
GRI Sustainability Reporting Standards ("GRI Standards") and the Sustainability Accounting Standards (“SASB
Standards”).
Defining the contents of this Non-Financial Statement is a process based on principles of materiality, stakeholder
inclusiveness, sustainability context, and completeness. Ensuring the quality of information concerns principles of
balance, comparability, accuracy, timeliness, clarity, and reliability.
Environmental and social issues included in the Annual Report were selected on the basis of the materiality analysis
and focus on key phases in the product life cycle. For further information on CNH Industrial's commitment to
sustainable development, see the 2021 Sustainability Report.
The contents related to the different requirements stated in the Dutch Decree are included in this Annual Report in
different sections. The table below shows the internal references where to find the information for each requirement.
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    19
EU Directive Non-Financial Information and Diversity information reference table
Topic
Subtopic
Included
(yes/no)
Reference
Business model
Yes
Business Overview; Our Commitment to Sustainable
Development and Long-term Value Creation;
Corporate Governance/Code of Conduct
Relevant social and
personnel matters (e.g.
HR, safety etc.)
A description of the policies
pursued, including due diligence.
Yes
Corporate Governance/Code of Conduct; Human
Resources/Employees; Business Overview/Suppliers
The outcome of those policies.
Yes
Corporate Governance/Code of Conduct; Human
Resources/Employees; Business Overview/Suppliers
Principle risks in own operations
and within value chain.
Yes
Risk Management and Control System; Human
Resources/Employees; Business Overview/Suppliers
How risks are managed.
Yes
Risk Management and Control System; Human
Resources/Employees; Business Overview/Suppliers
Non-financial key performance
indicators.
Yes
Human Resources/Employees; Business Overview/
Suppliers
Relevant Environmental
matters (e.g. climate-
related impacts)
A description of the policies
pursued, including due diligence.
Yes
Corporate Governance/Code of Conduct; Business
Overview/Plants and Manufacturing Processes
The outcome of those policies.
Yes
Corporate Governance/Code of Conduct; Business
Overview/Plants and Manufacturing Processes
Principle risks in own operations
and within value chain.
Yes
Risk Management and Control System; Business
Overview/Plants and Manufacturing Processes
How risks are managed.
Yes
Risk Management and Control System; Business
Overview/Plants and Manufacturing Processes
Non-financial key performance
indicators.
Yes
Business Overview/Plants and Manufacturing
Processes
Relevant matters with
respect for human rights
(e.g. labour protection)
A description of the policies
pursued, including due diligence.
Yes
Corporate Governance/Code of Conduct; Corporate
Governance/Respect for Human Rights
The outcome of those policies.
Yes
Corporate Governance/Code of Conduct; Corporate
Governance/Respect for Human Rights
Principle risks in own operations
and within value chain.
Yes
Risk Management and Control System; Corporate
Governance/Respect for Human Rights
How risks are managed.
Yes
Risk Management and Control System; Corporate
Governance/Respect for Human Rights
Non-financial key performance
indicators.
Yes
Corporate Governance/Respect for Human Rights
Relevant matters with
respect to anti-corruption
and bribery
A description of the policies
pursued, including due diligence.
Yes
Corporate Governance/Code of Conduct; Corporate
Governance/Anti-Corruption and Bribery
The outcome of those policies.
Yes
Corporate Governance/Code of Conduct; Corporate
Governance/Anti-Corruption and Bribery
Principle risks in own operations
and within value chain.
Yes
Risk Management and Control System; Corporate
Governance/Anti-Corruption and Bribery
How risks are managed.
Yes
Risk Management and Control System; Corporate
Governance/Anti-Corruption and Bribery
Non-financial key performance
indicators.
Yes
Corporate Governance/Anti-Corruption and Bribery
Insight into the diversity
(executive board and the
supervisory board)
A description of the policies
pursued.
Yes
Corporate Governance/Board of Directors
Diversity targets
No
Corporate Governance/Board of Directors
Description of how the policy is
implemented
Yes
Corporate Governance/Board of Directors
Results of the diversity policy
Yes
Corporate Governance/Board of Directors
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    20
SASB INDEX
TOPIC
SASB CODE
METRIC
UNIT OF
MEASURE
RESPONSE
COMMENT
Activity
RT-IG-000.A
Number of units produced
by product category
Number
Agriculture 196,000
Construction 42,000
Commercial & Specialty
Vehicles 161,178 Powertrain
798,700
RT-IG-000.B
Number of Employees
Number
71,895
Energy Management
RT-IG-130a.1
(1) total energy consumed
Gigajoules (GJ)
6,783,826
(2) percentage grid
electricity
%
39.1
(3) percentage renewable
%
30.2
Employee Health and Safety
RT-IG-320a.1
(1) total recordable incident
rate (TRIR)(1)
Rate
0.388
(2) fatality rate(2)
Rate
—
(3) near miss frequency rate
(NMFR)(3)
Rate
6.208
Fuel Economy & Emissions
in Use-Phase
RT-IG-410a.1
Sales-weighted fleet fuel
efficiency for medium- and
heavy-duty vehicles
Gallons per 1,000 ton-
miles
(4)
RT-IG-410a.2
Sales-weighted fuel
efficiency for non-road
equipment
Gallons per hour
RT-IG-410a.3
Sales-weighted fuel
efficiency for stationary
generators
Watts per hour
RT-IG-410a.4
Sales-weighted emissions
of:
Grams per kilowatt-hour
(1) nitrogen oxides (NOx)
and
(2) particulate matter (PM)
for:
(a) marine diesel engines,
(b) locomotive diesel
engines,
(c) on-road medium- and
heavy-duty engines, and
(d) other non-road diesel
engines
Materials Sourcing
RT-IG-440a.1
Description of the
management of risks
associated with the use of
critical materials
n/a
CNH Industrial’s products are
highly complex, typically
containing thousands of parts
that come from many different
direct suppliers within the
Company’s vast global supply
network. This means that the
Company must rely on its direct
suppliers to work with their
upstream supply chain to detect
the presence and evaluate the
origin of any critical substances
contained in components or
materials it purchases. The
Company has adopted policies,
programs, and procedures to
manage risks related to material
sourcing and to promote
responsible sourcing,
particularly with regard to tin,
tantalum, tungsten, and gold
(referred to as conflict minerals
or 3TG), as well as cobalt (see
Suppliers section).
Remanufacturing Design &
Services
RT-IG-440b.1
Revenue from
remanufactured products
and remanufacturing
services
$ million
127
(1) The total recordable incident rate is the number of recordable work-related injuries and illnesses divided by the number of hours worked, multiplied by
200,000.
(2) The fatality rate is the number of work-related fatalities divided by the number of hours worked, multiplied by 200,000.
(3) The near miss frequency rate is the number of work-related near misses divided by the number of hours worked, multiplied by 200,000.
(4) Given the diversity of its products, the Company is currently identifying a methodology for the calculation of sales-weighted fuel efficiency and
emissions data.
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    21
Presence in Sustainability Indices
Inclusion in sustainability indices, and the ratings received from specialized sector-specific agencies, further reflect the
robustness of CNH Industrial’s commitment to sustainability. In 2021, the Company was included for the 11th
consecutive year in the Dow Jones Sustainability Indices (DJSI) World and Europe, achieving the highest score
(88/100) out of 126 companies assessed within the Machinery and Electrical Equipment Industry. Furthermore, for the
first time, CNH Industrial was simultaneously included in the prestigious A List of both the CDP Climate Change and
CDP Water Security programs, in recognition of its actions to tackle climate change and to protect water security. It also
won the S&P Global Gold Class Sustainability Award 2022, and was awarded ISS ESG Prime status.
As at December 31, 2021, the Company was included in the following indexes: Euronext Vigeo Europe 120, Euronext
Vigeo Eurozone 120, MIB ESG Index, ECPI Global Agriculture Liquid Equity, ECPI World ESG Equity, ECPI Euro ESG
Equity, ECPI Global Developed ESG Best-in-Class, STOXX Global ESG Leaders Index, STOXX Global ESG
Environmental Leaders Index, STOXX Global ESG Social Leaders Index, STOXX Global Low Carbon Footprint Index,
STOXX Global Reported Low Carbon Index(1), Refinitiv Diversity & Inclusion Index, and Integrated Governance Index
(IGI). Moreover, in 2021, CNH Industrial received an MSCI ESG Rating of AAA and was a responder to the 2021
Workforce Disclosure Initiative (WDI).
(1)  Those listed are the main global STOXX indexes in which CNH Industrial is included.
Board Report  Our Commitment to Sustainable Development and Long-term Value Creation    22
REPORT ON OPERATIONS
SELECTED FINANCIAL DATA
CNH INDUSTRIAL PRE-DEMERGER(1)
($ million)
2021
2020
2019(*)
2018(**)
2017(***)
Net revenues
33,481
25,984
28,024
29,736
27,624
Profit/(loss) before taxes
2,135
(750)
1,208
1,914
740
Profit/(loss)
1,777
(695)
906
1,399
456
Attributable to:
Owners of the parent
1,740
(750)
874
1,368
439
Non-controlling interests
37
55
32
31
17
Basic earnings/(loss) per common share ($)
1.28
(0.55)
0.65
1.01
0.32
Diluted earnings/(loss) per common share ($)
1.28
(0.55)
0.65
1.01
0.32
Investments in tangible and intangible assets
1,189
848
1,063
1,033
896
of which: capitalized R&D costs
475
364
426
455
404
R&D expenditure(2)
1,249
950
1,050
1,080
986
Total Assets
51,122
50,556
49,182
48,650
50,798
Total Equity
8,426
6,735
7,863
7,472
6,684
Equity attributable to owners of the parent
8,393
6,651
7,819
7,443
6,671
(1)Until December 31, 2021, CNH Industrial N.V. owned and controlled the Commercial and Specialty Vehicles business, the Powertrain business and
the related Financial Services business (together the “Iveco Group Business”), as well as the Agriculture business, the Construction business and
the related Financial Services business. Effective January 1, 2022, the Iveco Group Business was separated from CNH Industrial N.V. in
accordance with Section 2:334a (3) of the Dutch Civil Code (Burgerlijk Wetboek) by way of a legal statutory demerger (juridische afsplitsing) to
Iveco Group N.V. (the “Demerger”). The financial data presented in this table refers to CNH Industrial prior to the Demerger (“CNH Industrial Pre-
Demerger” or "CNHI Pre-Demerger").
(2)Includes capitalized development costs and research and development (“R&D”) costs charged directly to the income statement.
(*)Effective January 1, 2019, CNH Industrial has adopted the IFRS 16 – Leases using the modified retrospective approach, without recasting prior
periods. 
(**)Effective January 1, 2018, CNH Industrial adopted IFRS 15 – Revenue from Contracts with Customers using the full retrospective approach. On the
same date, CNH Industrial adopted IFRS 9 – Financial Instruments retrospectively, except for hedge accounting which was applied prospectively,
without recasting prior periods.
(***)2017 figures have been recast following the retrospective adoption, on January 1, 2018, of the updated standard for revenue recognition (IFRS 15).
CONTINUING AND DISCONTINUED OPERATIONS(1)
2021
2020
($ million)
Continuing
Operations
Discontinued
Operations
Continuing
Operations
Discontinued
Operations
Net revenues
19,474
14,963
14,696
11,892
Profit/(loss) before taxes
1,922
213
(192)
(558)
Profit/(loss)
1,686
91
(270)
(425)
Attributable to:
Owners of the parent
1,677
63
(284)
(466)
Non-controlling interests
9
28
14
41
Basic earnings/(loss) per common share ($)
1.24
0.05
(0.21)
(0.34)
Diluted earnings/(loss) per common share ($)
1.23
0.05
(0.21)
(0.34)
Investments in tangible and intangible assets
521
668
390
458
of which: capitalized R&D costs
154
321
162
202
R&D expenditure
646
603
502
448
(1)As requested by the IFRS 5 - Non-current assets held for sale and discontinued operations, Iveco Group Business was classified and presented as
Discontinued Operations in these Consolidated Financial Statements. This table shows the selected financial data for 2021 and 2020 with a
breakdown provided for Continuing Operations (the Agriculture business, the Construction business and the related Financial Services business)
and Discontinued Operations (Iveco Group Business).
Board Report  Selected Financial Data   23
RISK FACTORS
The following risks should be considered in conjunction with the other risks described in the Disclaimer, Risk
Management and Control System section and Notes to the Consolidated Financial Statements. These risks may affect
our trading results and, individually or in the aggregate, could cause our actual results to differ materially from past and
projected future results. Some of these risks and uncertainties could affect particular lines of business, while others
could affect all of our businesses. Although the risks are organized by headings, and each risk is discussed separately,
many are interrelated. The following discussion of risks may contain forward-looking statements that are intended to be
covered by the Disclaimer. Except as may be required by law, we undertake no obligation to publicly update forward-
looking statements, whether as a result of new information, future events, or otherwise. It is impossible to predict or
identify all risk factors and, consequently, you should not consider the following factors to be a complete discussion of
risks and uncertainties that may affect us. For the 2021 financial statements contained in this Annual Report, the
Group’s assessment is that no material uncertainties (as defined in paragraph 25 of IAS 1 - Presentation of Financial
Statements) exist about its ability to continue as a going concern.
COVID-19 RISKS
The COVID-19 pandemic could materially adversely affect our business, financial condition, results of
operations and/or liquidity
COVID-19 was first identified in late 2019, spread globally and was declared a global pandemic by the World Health
Organization in March 2020. Efforts to combat the virus have been complicated by viral variants and uneven access to,
and acceptance and effectiveness of, vaccines globally. The global spread of the virus led governments around the
world to implement numerous measures to contain the virus, such as travel bans, mandated shutdowns, border
closures and other restrictions on the free movement of people and goods. These measures have impacted, and may
further impact, our future ability to operate as well as the ability of our suppliers and distributors to operate. Any future
closing of manufacturing facilities due to government mandates, insufficient staffing, weaker demand, or supply
constraints, or similar limitations or restrictions for our suppliers, or the impact of the COVID-19 pandemic on our ability
to execute business continuity plans, could have a material adverse effect on our business, financial position, results of
operations, and/or liquidity.
Disruption caused by business responses to the COVID-19 pandemic, including remote working arrangements, may
create increased vulnerability to cybersecurity or data privacy incidents, including breaches of information technology
and systems. Risks related to information technology and systems are described in our risk factor “A cybersecurity
breach could interfere with our operations, compromise confidential information, negatively impact our corporate
reputation and expose us to liability”.
From an economic perspective, COVID-19 initially led to a global recession and there is no certainty that the economies
in which we operate will experience sustained economic recovery. The COVID-19 pandemic has also significantly
increased economic and demand uncertainty and has led to disruptions in our supply chain, higher raw materials
pricing and volatility in demand for our products and in global capital markets. The COVID-19 pandemic may materially
adversely impact many of our customers, borrowers and other third parties and may affect their ability to fulfill their
obligations to us in a timely manner.
The extent to which the COVID-19 pandemic will continue to impact our business, financial condition, results of
operations and/or liquidity will depend on the scale, duration, severity and geographic reach of future developments,
which are highly uncertain and cannot be predicted, including notably the possibility of “further waves” of COVID-19
infections or the appearance of new variants in the virus. There have been instances of re-imposed local lockdowns
where infection rates have started to increase again and there is a risk that widespread measures such as strict social
distancing and curtailing or ceasing normal business activities may be reintroduced in the future until effective
treatments or vaccines have been deployed. In late 2021, in response to a rapid acceleration of infections, the
governments of several European countries including France, Germany, Italy and the United Kingdom have started re-
imposing increasingly stringent public health measures. Continued uncertainties and persistent effects also include:
disruptions in the supply chain and a prolonged delay in resumption of operations by one or more key suppliers, or the
failure of key suppliers; our ability to meet commitments to our customers on a timely basis as a result of increased
costs and supply challenges; the ability to receive goods on a timely basis and at anticipated costs; increased logistics
costs; delays in our strategic initiatives as a result of the uncertain environment; absence of employees due to illness;
the impact of the pandemic on our customers and dealers, and delays in their plans to purchase new equipment;
requests by our customers or dealers for, or government mandated, payment deferrals and contract modifications; the
impact of disruptions in the global capital markets and/or declines in our financial performance, outlook or credit ratings,
which could impact our ability to obtain funding in the future; and the impact of the pandemic on demand for our
Board Report  Risk Factors    24
products and services as discussed above. In addition, the COVID-19 pandemic may exacerbate many of the other
risks described in this Annual Report.
STRATEGIC RISKS
Global economic conditions impact our businesses
Our results of operations and financial position are and will continue to be influenced by macroeconomic factors –
including changes in gross domestic product, the level of consumer and business confidence, changes in interest rates,
the availability of credit, inflation and deflation, energy prices, and the cost of commodities or other raw materials –
which exist in the countries and regions in which we operate. Such macroeconomic factors vary from time to time and
their effect on our results of operations and financial position cannot be specifically and singularly assessed and/or
isolated.
Economic conditions vary across regions and countries, and demand for our products and services generally increases
in those regions and countries experiencing economic growth and investment. Slower economic growth or a change in
global mix of regions and countries experiencing economic growth and investment could have an adverse impact on
our business, results of operations and financial condition. In a weaker economic environment, dealers and customers
may delay or cancel plans to purchase our products and services and may not be able to fulfill their obligations to us in
a timely fashion. Our suppliers may also be impacted by economic pressures, which may adversely affect their ability to
fulfill their obligations to us or the price or availability of supplies we require. These factors could result in product
delays, increased accounts receivable, defaults and inventory challenges. In addition, demand for our products and
services can be significantly impacted by concerns regarding the diverse economic and political circumstances in the
European Union, the debt burden of several countries in the European Union, the risk that one or more European Union
countries could come under increasing pressure to leave the European Union and the long-term stability of the euro as
a single common currency. These concerns, along with persistent disparity with respect to the widely varying economic
conditions amongst the individual countries of the European Union, and their implications for the euro as well as market
perceptions concerning these and related issues, have led to further pressure on economic growth and may lead to
new periods of economic volatility and recession in the European Union. Similarly, in Brazil and Argentina,
macroeconomic conditions remain volatile. It is unclear what the macroeconomic effects will be of the economic
stimulus actions taken by various countries in order to mitigate the adverse economic impact of the COVID-19
pandemic and the resulting increase in government debt. If there is continued deterioration in the global economy or the
economies of key countries or regions, the demand for our products and services would likely decrease and our results
of operations, financial position and cash flows could be materially and adversely affected.
We are exposed to political, economic, trade and other risks beyond our control as a result of operating a
global business
We manufacture and sell products and offer services in several continents and numerous countries around the world
including those experiencing varying degrees of political and economic instability. Given the global nature of our
activities, we are exposed to risks associated with international business activities that may increase our costs, impact
our ability to manufacture and sell our products and require significant management attention. These risks include:
▪changes in laws, regulations and policies that affect, among other things:
◦import and export duties and quotas;
◦currency restrictions;
◦the design, manufacture and sale of our products, including, for example, engine emissions regulations;
◦interest rates and the availability of credit to our dealers and customers;
◦property, contract rights and intellectual property;
◦where, to whom, and what type of products may be sold, including new or additional trade or economic
sanctions imposed by the U.S., EU or other governmental authorities and supranational organizations (e.g.,
the United Nations); and
◦taxes;
▪regulations from changing world organization initiatives and agreements;
▪changes in the dynamics of the industries and markets in which we operate;
▪labor disruptions;
Board Report  Risk Factors    25
▪disruption in the supply of raw materials and components (e.g. as a result of pandemics), including rare
materials (the latter might be more easily the target of sudden cost increases due to a variety of factors,
including speculative measures or unforeseen political changes);
▪changes in governmental debt relief and subsidy program policies in certain significant markets, including the
Brazilian government discontinuing programs subsidizing interest rates on equipment loans;
▪withdrawal from or changes to trade agreements or trade terms, negotiation of new trade agreements and the
imposition of new (and retaliatory) tariffs on certain countries or covering certain products or raw materials or
embargoes, including developments in U.S.-China trade relations; and
▪war, civil unrest and acts of terrorism.
In recent years, acts of terrorism have occurred around the world, leading to personal safety anxieties and political
instability in many countries and, ultimately, an impact on consumers’ confidence. More recently, growing populist and
nationalist political movements in several major developed countries, changes in or uncertainty surrounding global trade
policies and other unanticipated changes to the previous geopolitical order may have negative effects on the global
economy. 
Further, escalating tensions between Russia and Ukraine and massive military actions between Russia and Ukraine
could adversely impact macroeconomic conditions, give rise to regional instability and result in heightened economic
sanctions from the U.S., EU, and UK which may adversely affect us and our business in Russia, Ukraine and potentially
elsewhere in Eastern Europe, including possible restrictions on our ability to do business with certain vendors or
suppliers as well as the ability to repatriate funds from the region. We have conducted business in jurisdictions that may
be subject to trade or economic sanction regimes and such sanctions could be expanded. If we fail to comply with
sanction regimes or other similar laws or regulations we could be subject to damages and potentially other financial
penalties, suspension of licenses, or a cessation of operations at our businesses, as well as damage to our brands’
images and reputations.
There can be no guarantee that we will be able to quickly and completely adapt our business model to changes that
could result from the foregoing, and any such changes may have an adverse effect on our business, results of
operations and financial condition.
Reduced demand for equipment would reduce our sales and profitability
The agricultural equipment market is influenced by factors such as:
▪the price of agricultural commodities and the ability to competitively export agricultural commodities;
▪the profitability of agricultural enterprises, farmers’ income and their capitalization;
▪the demand for food products;
▪the availability of stocks from previous harvests; and
▪agricultural policies, including aid and subsidies to agricultural enterprises provided by governments and/or
supranational organizations, policies impacting commodity prices or limiting the export or import of commodities, and
alternative fuel mandates.
In addition, droughts, floods and other unfavorable climatic conditions, especially during the spring, a particularly
important period for generating sales orders, could have a negative impact on decisions to buy agricultural equipment
and, consequently, on our revenues.
The construction equipment market is influenced by factors such as:
▪public infrastructure spending;
▪new residential and non-residential construction; and
▪capital spending in oil and gas and, to a lesser extent, in mining.
The above factors can significantly influence the demand for agricultural and construction equipment and consequently,
our financial results. Additionally, demand for our products is influenced by engine emissions and other applicable legal
requirements, as well as the effective date of such requirements. If demand for our products is less than we expect, we
may experience excess inventories and be forced to incur additional charges and our profitability will suffer, including
lower fixed costs absorption associated with lower production levels at our plants. Our business may be negatively
impacted if we experience excess inventories or if we are unable to adjust on a timely basis our production schedules
or our purchases from suppliers to reflect changes in customer demand and market fluctuations.
Board Report  Risk Factors    26
Competitive activity, or failure by us to respond to actions by our competitors, could adversely affect our
results of operations
We operate in highly competitive global and regional markets. Depending on the particular country and product, we
compete with other international, regional and local manufacturers and distributors of agricultural and construction
equipment. Certain of our global competitors have substantial resources and may be able to provide products and
services at little or no profit, or even at a loss, to compete with certain of our product and service offerings. We compete
primarily on the basis of product performance, innovation, quality, distribution, customer service, and price. Aggressive
pricing or other strategies pursued by competitors, unanticipated product or manufacturing delays, quality issues, or our
failure to price our products competitively could adversely affect our business, results of operations and financial
position. Additionally, there has been a trend toward consolidation in the construction equipment industries that has
resulted in larger and potentially stronger competitors in those industries. The markets in which we compete are highly
competitive in terms of product quality, innovation, pricing, fuel economy, reliability, safety, customer service and
financial services offered. Competition, particularly on pricing, has increased significantly in the markets in which we
compete. Should we be unable to adapt effectively to market conditions, this could have an adverse effect on our
business, results of operations and financial condition.
Changes in government monetary or fiscal policies may negatively impact our results
Most countries where our products and services are sold have established central banks to regulate monetary systems
and influence economic activities, generally by adjusting interest rates. Some governments may implement measures
designed to slow economic growth in their countries (e.g. higher interest rates, reduced bank lending and other anti-
inflation measures). Rising interest rates could have a dampening effect on the overall economic activity and/or the
financial condition of our customers, either or both of which could negatively affect demand for our products and our
customers’ ability to repay obligations to us. Central banks and other policy arms of many countries may take further
actions to vary the amount of liquidity and credit available in an economy. The impact from a change in liquidity and
credit policies could negatively affect the customers and markets we serve or our suppliers, which could adversely
impact our business, results of operations and financial condition. Government initiatives that are intended to stimulate
demand for products sold by us, such as changes in tax treatment or purchase incentives for new equipment, can
significantly influence the timing and level of our revenues. The terms, size and duration of such government actions
are unpredictable and outside of our control. Any adverse change in government policy relating to those initiatives could
have a material adverse effect on our business, results of operations and financial condition. As noted above, it is
unclear what the macroeconomic effects will be of the economic stimulus actions taken by various countries in order to
mitigate the adverse economic impact of the COVID-19 pandemic and the resulting increase in government debt.
Our future performance depends on our ability to innovate and on market acceptance of new or existing
products
Our success depends on our ability to maintain or increase our market share in existing markets and to expand into
new markets through the development of innovative, high-quality products that provide adequate profitability. We have a
strategic plan covering investments in innovation designed to further develop existing, and create new, product and
service offerings responsive to customer needs, including developing and delivering connected and digital solutions,
automation, electrification and autonomy. Achievement of these objectives is dependent on a number of factors,
including our ability to maintain key dealer relationships, our ability to design and produce products that meet our
customers’ quality, performance and price expectations, our ability to develop connected and digital solutions that
improve the profitability and sustainability of customers through their production systems, our ability to develop effective
sales, dealer training and marketing programs, and the ability of our dealers to support and service connected and
digital solutions. Failure to develop and offer innovative products that compare favorably to those of our principal
competitors in terms of price, quality, functionality, features, mobility and connected services, vehicle electrification, fuel
cell technology and autonomy, or delays in bringing strategic new products to market, or the inability to adequately
protect our intellectual property rights or supply products that meet regulatory requirements, including engine emissions
requirements, could result in reduced revenue and market share, which could have a material adverse effect on our
business, results of operations and financial condition.
We may face challenges to our intellectual property rights which could adversely affect our reputation,
business and competitive position
We own important intellectual property, including patents, trademarks, copyrights and trade secrets. Our intellectual
property plays an important role in maintaining our competitive position in the markets that we serve. Our competitors
may develop technologies that are similar or superior to our proprietary technologies or design around the intellectual
property that we own or license. Despite our controls and safeguards, our technology may be misappropriated by
employees, competitors or third parties. The pursuit of remedies for any misappropriation of intellectual property is
expensive and the ultimate remedies may be insufficient. Further, in jurisdictions where the enforcement of intellectual
property rights is less robust, the risk of misappropriation of our intellectual property is higher notwithstanding the efforts
we undertake to protect it. Developments or assertions by or against us relating to intellectual property rights, and any
Board Report  Risk Factors    27
inability to protect or enforce our rights sufficiently, could adversely affect our business, competitive position and results
of operations.
We may not realize all of the anticipated benefits from our business initiatives and cost management initiatives
As part of our strategic plan, we are actively engaged in a number of initiatives to strengthen our business and increase
our productivity, market positioning, efficiency and cash flow, all of which we expect will have a positive long-term effect
on our business, results of operations and financial condition. These initiatives include our enhanced focus on digital,
precision farming and alternative propulsion, as well as other initiatives aimed at improving our product portfolio and
customer focus. There can be no assurance that these initiatives or others will be beneficial to the extent anticipated, or
that the estimated efficiency or cash flow improvements will be realized as anticipated or at all. If these initiatives are
not implemented successfully, they could have an adverse effect on our operations. We also expect to take targeted
restructuring actions as we continue to optimize our cost structure and improve the efficiency of our operations. In order
to complete these actions, we will incur charges. Failure to realize anticipated savings or benefits from our cost
reduction actions could have a material adverse effect on our business, prospects, financial condition, liquidity, results
of operations and cash flows.
We may not be able to realize anticipated benefits from any acquisitions and, further, challenges associated
with strategic alliances may have an adverse impact on our results of operations
We have engaged in the past, and may engage in the future, in investments or mergers and acquisitions or enter into,
expand or exit from strategic alliances and joint ventures that could involve risks that could prevent us from realizing the
expected benefits of the transactions or the achievement of strategic objectives or could divert management’s time and
attention. Such risks, many of which are outside our control, include:
▪technological and product synergies, economies of scale and cost reductions not occurring as expected;
▪unexpected liabilities;
▪incompatibility of operating, information or other systems;
▪unexpected changes in laws;
▪inability to retain key employees;
▪protecting intellectual property rights;
▪inability to source certain products or components (or the cost thereof);
▪significant costs associated with terminating or modifying alliances; and
▪problems in retaining customers and integrating operations, services, personnel, and customer bases.
If problems or issues were to arise among the parties to one or more strategic alliances or other relationships for
managerial, financial, or other reasons, or if such strategic alliances or other relationships were terminated, our product
lines, businesses, results of operations and financial condition could be adversely affected.
Our business may be affected by climate change, unfavorable weather conditions or other calamities
Poor, severe or unusual weather conditions caused by climate change or other factors, particularly during the planting
and early growing season, can significantly affect the purchasing decisions of our agricultural equipment customers.
The timing and quantity of rainfall are two of the most important factors in agricultural production. Insufficient levels of
rain prevent farmers from planting crops or may cause growing crops to die, resulting in lower yields. Excessive rain or
flooding can also prevent planting or harvesting from occurring at optimal times and may cause crop loss through
increased disease or mold growth. Temperature affects the rate of growth, crop maturity, crop quality and yield.
Temperatures outside normal ranges can cause crop failure or decreased yields and may also affect disease incidence.
Natural disasters such as floods, hurricanes, storms, droughts, diseases and pests can have a negative impact on
agricultural production. The resulting negative impact on farm income can strongly affect demand for our agricultural
equipment in any given period.
In addition, natural disasters, pandemic illness, acts of terrorism or violence, equipment failures, power outages,
disruptions to our information technology systems and networks or other unexpected events could result in physical
damage to, and complete or partial closure of, one or more of our manufacturing facilities or distribution centers,
temporary or long-term disruption in the supply of parts or component products and disruption and delay in the transport
of our products to dealers and customers. In the event such events occur, our financial results might be negatively
impacted. Our existing insurance arrangements may not protect against all costs that may arise from such events.
Furthermore, the potentially long-term physical impacts of climate change on our facilities, suppliers and customers and
therefore on our operations are highly uncertain and will be driven by the circumstances developing in various
geographical regions. These may include long-term changes in temperature and water availability. These potential
physical effects may adversely impact the demand for our products and the cost, production, sales and financial
performance of our operations.
Board Report  Risk Factors    28
Changes in demand for food and alternate energy sources could impact our revenues
Changing worldwide demand for farm outputs to meet the world’s growing food and alternative energy demands, driven
in part by a growing world population and government policies, are likely to result in fluctuating agricultural commodity
prices, which affect sales of agricultural equipment. While higher commodity prices will benefit our crop producing
agricultural equipment customers, higher commodity prices also result in greater feed costs for livestock and poultry
producers, which in turn may result in lower levels of equipment purchased by these customers. Lower commodity
prices directly affect farm income, which could negatively affect sales of agricultural equipment. Moreover, changing
alternative energy demands may cause farmers to change the types or quantities of the crops they grow, with
corresponding changes in equipment demands. Finally, changes in governmental policies regulating bio-fuel utilization
could affect demand for our equipment and result in higher research and development costs related to equipment fuel
standards. 
International trade policies may impact demand for our products and our competitive position
Government policies on international trade and investment such as sanctions, import quotas, capital controls or tariffs,
whether adopted by non-governmental bodies, individual governments or addressed by regional trade blocks, may
affect the demand for our products, technology and services, impact the competitive position of our products or prevent
us from being able to sell products to certain customers or in certain countries. The implementation of more
protectionist trade policies, such as more detailed inspections, higher tariffs, or new barriers to entry, in countries where
we sell products and provide services could negatively impact our business, results of operations and financial position.
For example, a government’s adoption of trade sanctions or “buy national” policies or retaliation by another government
against such policies could have a negative impact on our results of operations. 
OPERATIONAL RISKS
We depend on suppliers for raw materials, parts and components
We rely upon many suppliers for raw materials, parts and components that we require to manufacture our products. We
cannot guarantee that we will be able to maintain access to raw materials, parts and components, and in some cases,
this access may be affected by factors outside of our control and the control of our suppliers. Certain components and
parts used in our products are available from a single supplier and cannot be quickly sourced from other suppliers.
Significant disruptions to the supply chain resulting from shortages of raw materials, components, and whole-goods can
adversely affect our ability to meet customer demand. For example, during 2021, as economies around the world have
reopened, sharp increases in demand have exacerbated significant disruptions to the global supply chain stemming
from the COVID-19 pandemic, which have affected our ability to receive certain materials and components on a timely
basis and at anticipated costs. These supply chain disruptions have been caused and compounded by many factors,
including changes in supply and demand, industry capacity constraints, labor shortages and the COVID pandemic.
Global logistics network challenges include ocean freight capacity constraints, international port delays, trucking and
chassis shortages, railway and air freight capacity, and labor availability constraints, which have resulted in delays,
shortages of key manufacturing components, increased order backlogs, and increased transportation costs. While we
diligently monitor our supply chain risk and seek to respond promptly to address supply chain and logistics bottlenecks,
there can be no assurance that our mitigation plans will be effective to prevent disruptions that may arise from
shortages of materials that we use in the production of our products. Uncertainties related to the magnitude and
duration of global supply chain disruptions have adversely affected, and may continue to adversely affect, our business
and outlook. 
We use a variety of raw materials in our businesses, including steel, aluminum, lead, resin and copper, and precious
metals such as platinum, palladium and rhodium. The availability and price of these raw materials fluctuate, particularly
during times of economic volatility or regulatory instability or in response to changes in tariffs, and while we seek to
manage this exposure, we may not be successful in mitigating these risks. Further, increases in the prices for raw
materials can significantly increase our costs of production, which could have a material adverse effect on our business,
results of operations and financial condition, particularly if we are unable to offset the increased costs through an
increase in product pricing.
Our existing operations and expansion plans in emerging markets could entail significant risks
Our ability to grow our businesses depends to an increasing degree on our ability to increase market share and operate
profitably worldwide and, in particular, in emerging market countries, such as Brazil, Russia, India, China, Argentina and
Turkey. In addition, we could increase our use of suppliers located in such countries. Our implementation of these
strategies will involve a significant investment of capital and other resources and exposes us to multiple and potentially
conflicting cultural practices, business practices and legal requirements that are subject to change, including those
related to tariffs, trade barriers, investments, property ownership rights, taxation, and sanction and export control
requirements. For example, we may encounter difficulties in obtaining necessary governmental approvals in a timely
manner. In addition, we may experience delays and incur significant costs in constructing facilities, establishing supply
channels, and commencing manufacturing operations. Further, customers in these markets may not readily accept our
Board Report  Risk Factors    29
products as compared with products manufactured and commercialized by our competitors. The emerging market
countries may also be subject to a greater degree of economic and political volatility that could adversely affect our
financial position, results of operations and cash flows. Many emerging market economies have experienced slower
growth, volatility, and other economic challenges in recent periods and may be subject to a further slowdown in gross
domestic product expansion and/or be impacted by domestic political or currency volatility, potential hyperinflationary
conditions, and/or increase of public debt.
Dealer equipment sourcing and inventory management decisions could adversely affect our sales
We sell our products primarily through independent dealers and are subject to risks relating to their inventory
management decisions and operating and sourcing practices. Our dealers carry inventories of finished products and
parts as part of ongoing operations and adjust those inventories based on their assessment of future sales
opportunities and market conditions, including the level of used equipment inventory. If our dealers’ inventory levels are
higher than they desire, they may postpone product purchases from us, which could cause our sales to be lower than
the end-user demand for our products and negatively impact our results. Similarly, our sales could be negatively
impacted through the loss of time-sensitive sales if our dealers do not maintain inventory sufficient to meet customer
demand. Further, dealers who carry other products that compete with our products may focus their inventory purchases
and sales efforts on goods provided by other suppliers due to industry demand or profitability. Such inventory
adjustments and sourcing decisions can adversely impact our sales, results of operations and financial condition.
Our results of operations may be adversely impacted by various types of claims, lawsuits, and other
contingent obligations
In the ordinary course of business, we are involved in litigation and investigations on a wide range of topics, including
dealer and supplier litigation, intellectual property rights disputes, product warranty and defective product claims,
product performance, asbestos, personal injury, engine emissions and/or fuel economy regulatory and contract issues,
and environmental claims. The industries in which we operate are also periodically reviewed or investigated by
regulators, which could lead to enforcement actions, fines and penalties or the assertion of private litigation claims. The
ultimate outcome of these legal matters pending against us is uncertain, and although such legal matters are not
expected individually to have a material adverse effect on our financial position or profitability, such legal matters could,
in the aggregate, in the event of unfavorable resolutions thereof, have a material adverse effect on our results of
operations and financial condition. Furthermore, we could in the future be subject to judgments or enter into settlements
of lawsuits and claims that could have a material adverse effect on our results of operations in any particular period. In
addition, while we maintain insurance coverage with respect to certain risks, we may not be able to obtain such
insurance on acceptable terms in the future, if at all, and any such insurance may not provide adequate coverage
against claims under such policies. We establish reserves based on our assessment of contingencies, including
contingencies related to legal claims asserted against us. Subsequent developments in legal proceedings may affect
our assessment and estimates of the loss contingency recorded as a reserve and require us to make payments that
exceed our reserves, which could have a material adverse effect on our results of operations and/or financial position.
For further information see Note 27 “Commitments and contingencies” to the Consolidated Financial Statements at
December 31, 2021. 
A cybersecurity breach could interfere with our operations, compromise confidential information, negatively
impact our corporate reputation and expose us to liability
We rely upon information technology systems and networks, some of which are managed by third parties, in connection
with a variety of our business activities. These systems include supply chain, manufacturing, distribution, invoicing and
collection of payments from dealers or other purchasers of our products and from customers of our financial services
business, and connectivity services with and among equipment. We use information technology systems to record,
process and summarize financial information and results of operations for internal reporting purposes and to comply
with regulatory financial reporting, legal and tax requirements. Additionally, we collect and store sensitive data, including
intellectual property, proprietary business information and the proprietary information of our customers, suppliers and
dealers, as well as personally identifiable information of our dealers, customers and employees, in data centers and on
information technology networks. Operating these information technology systems and networks, and processing and
maintaining this data, in a secure manner, are critical to our business operations and strategy. Increased information
technology security threats (e.g. worms, viruses, malware, phishing attacks, ransomware, and other malicious threats)
and more sophisticated computer crime pose a significant risk to the security of our systems and networks and the
confidentiality, availability and integrity of our data. Cybersecurity attacks could also include attacks targeting customer
data or the security, integrity and/or reliability of the hardware and software installed in our products. The foregoing risks
are heightened in the current environment where our employees have been working and continue to work from home
due to the COVID-19 pandemic.
While we actively manage information technology security risks within our control through security measures, business
continuity plans and employee training around phishing and other cyber risks, these attacks have proliferated and there
can be no assurance that our actions will be sufficient to successfully prevent attacks or to mitigate potential risks to our
Board Report  Risk Factors    30
systems, networks, data, and products. Furthermore, third parties on which we rely, including internet, mobile
communications technology and cloud service providers, pose their own information security risk to us.
A failure or breach in security, whether of our systems and networks or those of third parties on which we rely, could
expose us and our customers, dealers and suppliers to risks of misuse of information or systems, the compromising of
confidential information, loss of financial resources, manipulation and destruction of data, defective products, production
downtimes and operations disruptions, which in turn could adversely affect our reputation, competitive position,
businesses and results of operations. Security breaches could also result in litigation, regulatory action, unauthorized
release of confidential or otherwise protected information and corruption of data, as well as remediation costs and
higher operational and other costs of implementing further data protection measures. In addition, as security threats
continue to evolve, we may need to invest additional resources to protect the security of our systems and data. The
amount or scope of insurance coverage we maintain may be inadequate to cover claims or liabilities relating to a
cybersecurity attack. 
Security breaches with respect to our products could interfere with our business and our dealers, and/or
customers, exposing us to liability that would cause our business and reputation to suffer
Some of our products include connectivity hardware typically used for telematics services and remote system updates.
While we have implemented security measures intended to prevent unauthorized access to these products, malicious
actors have reportedly attempted, and may attempt in the future, to gain unauthorized access to such products
including through such connectivity hardware in order to gain control of the products, change the products’ functionality,
user interface, or performance characteristics, or gain access to data stored in or generated by the products. Any
unauthorized access to or control of our products or systems or any loss of data could result in legal claims against us
or government investigations. In addition, reports of unauthorized access to our products, systems, and data,
regardless of their veracity, may result in the perception that the products, systems, or data are capable of being
hacked, which could harm our brands, prospects, and operating results.
Following the spin-off of our On-Highway business, our financial profile has changed, and we will be a
somewhat smaller, less diversified company than prior to the spin-off
The spin-off will result in each of the On-Highway Business and the Off-Highway Business being smaller, less
diversified companies with more businesses concentrated in their respective industries. As a result, we may be more
vulnerable to changing market conditions particularly those affecting the agricultural sector, which could have a material
adverse effect on our business, financial condition and results of operations. In addition, the diversification of our
revenues, costs, and cash flows will diminish as a standalone company, such that our results of operations, cash flows,
working capital and financing requirements may be subject to increased volatility and our ability to fund capital
expenditures and investments, pay dividends and service debt may be diminished. Following the spin-off we may also
have more limited capital allocation efficiency and flexibility, as we will no longer be able to use cash flow from the
combined business to fund investments into one of our businesses. We may however, benefit from no longer being a
source of capital and support for the On-Highway business.
We face risks associated with our employment relationships
In many countries where we operate, our employees are protected by laws and/or collective labor agreements that
guarantee them, through local and national representatives, the right of consultation on specific matters, including
repurposing, downsizing or closure of production facilities and reductions in personnel. Laws and/or collective labor
agreements applicable to us could impair our flexibility in reshaping and/or strategically repositioning our business
activities. Therefore, our ability to efficiently deploy personnel or implement permanent or temporary redundancy
measures is subject to government approvals and/or the agreement of labor unions where such laws and agreements
are applicable. Furthermore, we are at greater risk of work interruptions or stoppages than non-unionized companies
and any work interruption or stoppage could significantly impact the volume of products we manufacture and sell, which
could have a material adverse effect on our business, results of operations and financial condition. In addition, the
COVID-19 pandemic has resulted in material changes in how and where employees work.
Our ability to execute our strategy is dependent upon our ability to attract, motivate and retain qualified
personnel
Our ability to compete successfully, to manage our business effectively, to expand our business and to execute our
strategic direction, in particular the implementation of our Strategic Business Plan, depends, in part, on our ability to
attract, motivate and retain qualified personnel in key functions and markets. In particular, we are dependent on our
ability to attract, motivate and retain qualified personnel with the requisite education, skills, background, talents and
industry experience. Failure to attract and retain qualified personnel, whether as a result of an insufficient number of
qualified applicants, difficulty in recruiting new personnel, or the inability to integrate and retain qualified personnel,
could impair our ability to execute our business strategy and meet our business objectives. These may be affected by
the loss of employees, particularly when departures involve larger numbers of employees, such as those experienced
by many employers and industries since 2020. Higher rates of employee separations may adversely affect us through
Board Report  Risk Factors    31
decreased employee morale, the loss of knowledge of departing employees, and the devotion of resources to recruiting
and onboarding new employees.
COMPLIANCE RISKS
We are subject to increasingly stringent and evolving laws that impose significant compliance costs.
We are subject to comprehensive and constantly evolving laws, regulations and policies in numerous jurisdictions
around the world. We expect the extent of legal requirements affecting our businesses and our costs of compliance to
continue to increase in the future. Such laws govern, among other things, products – with requirements on emissions of
polluting gases and particulate matter, increased fuel efficiency and safety becoming increasingly strict – and industrial
plants – with requirements for reduced air emissions, treatment of waste and water, and prohibitions on soil
contamination also becoming increasingly strict. To comply with such laws, we make significant investments in research
and development and capital expenditures and expect to continue to incur substantial costs in the future. Failure to
comply with such laws could limit or prohibit our ability to sell our products in a particular jurisdiction, expose us to
penalties or clean-up costs, civil or criminal liability and sanctions on certain of our activities, as well as damage to
property or natural resources. Liabilities, sanctions, damages and remediation efforts related to any non-compliance
with such laws, including those that may be adopted or imposed in the future, could negatively impact our ability to
conduct our operations and our results of operations and financial condition. In addition, there can be no assurance that
we will not be adversely affected by costs, liabilities or claims with respect to any subsequently acquired operations. 
Further, environmental, health and safety regulations change from time to time, as may related interpretations and other
guidance. For example, changes in environmental and climate change laws, including laws relating to engine and
vehicle emissions, safety regulations, fuel requirements, restricted substances, or greenhouse gas emissions, could
lead to new or additional investments in product designs and could increase environmental compliance expenditures. If
these laws are either changed or adopted and impose significant operational restrictions and compliance requirements
on our products or operations, they could result in higher capital expenditures and negatively impact our business,
results of operations, financial position and competitive position.
Changes to existing laws and regulations or changes to how they are interpreted or the implementation of new, more
stringent laws or regulations could adversely affect our business by increasing compliance costs, limiting our ability to
offer a product or service, requiring changes to our business practices, or otherwise making our products and services
less attractive to customers. For example, so-called “right to repair” legislation proposals in certain states and at the
federal level in the U.S. could require us to provide access to the software code embedded in our products, which,
among other harmful consequences, could create product safety issues, compromise engine emissions and
performance controls, adversely affect the protection of our intellectual property, and discourage innovation and
investments in research and development.
We are subject to extensive laws and regulations
Due to the global scope of our operations, we are subject to many laws and regulations that apply to our operations
around the world, including the U.S. Foreign Corrupt Practices Act, and the U.K. Bribery Act, as well as a range of
national anti-corruption and antitrust or competition laws that apply to conduct in a particular jurisdiction. These anti-
corruption laws prohibit improper payments in cash or anything of value to improperly influence third parties to obtain or
retain business or gain a business advantage. These laws tend to apply regardless of whether those practices are legal
or culturally acceptable in a particular jurisdiction. Over the past several years there has been an increase in the
enforcement of anti-corruption and antitrust or competition laws both globally and in particular jurisdictions and we have
from time to time been subject to investigations and charges claiming violations of anti-corruption or antitrust or
competition laws, including Iveco’s settlement of the EU antitrust investigation announced on July 19, 2016. Following
this settlement, Iveco, the Company and other parties have been defending against private litigation commenced in
Europe. We are committed to operating in compliance with all applicable laws, in particular, anti-corruption and antitrust
or competition laws. We have implemented a program to promote compliance with these laws and to reduce the
likelihood of potential violations. Our compliance program, however, may not in every instance protect us from acts
committed by our employees, agents, contractors, or collaborators that may violate the applicable laws or regulations of
the jurisdictions in which we operate. Such improper actions could subject us to civil or criminal investigations and
monetary, injunctive and other penalties as well as damage claims. Investigations of alleged violations of these laws
tend to be expensive and require significant management time and attention, and these investigations of purported
violations, as well as any publicity regarding potential violations, could harm our reputation and have a material adverse
effect on our business, results of operations and financial position. For further information see Note 27 “Commitments
and contingencies” to the Consolidated Financial Statements at December 31, 2021.
Changes in privacy laws could disrupt our business
The regulatory framework for privacy and data security issues worldwide is rapidly evolving and is likely to remain
uncertain for the foreseeable future. We collect personal information and other data as part of our business operations.
This data is subject to a variety of U.S. and foreign laws and regulations. For example, the European Union's General
Board Report  Risk Factors    32
Data Protection Regulation imposes more stringent data protection requirements and provides for significant penalties
for noncompliance. New privacy laws will continue to come into effect around the world. We may be required to incur
significant costs to comply with these and other privacy and data security laws, rules and regulations. Any inability to
adequately address privacy and security concerns or comply with applicable privacy and data security laws, rules and
regulations could have an adverse effect on our business prospects, results of operations and/or financial position.
New regulations or changes in financial services regulations could adversely impact us
Our Financial Services’ operations are highly regulated by governmental and banking authorities in the locations where
they operate, which can impose significant additional costs and/or restrictions on their business. In the U.S., for
example, the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank
Act”), including its regulations, as well as other efforts at regulatory reform in financial services may substantially affect
the origination, servicing, and securitization programs of our Financial Services segment as well as limit the ability of
our customers to enter into hedging transaction or finance purchases of our equipment. The Dodd-Frank Act also
strengthens the regulatory oversight of these securities and related capital market activities by the SEC and increases
the regulation of the asset-backed securities ("ABS") markets through, among other things, a mandated risk retention
requirement for securitizers and a direction to regulate credit rating agencies. Future regulations may affect our ability to
engage in these capital market activities or increase the effective cost of such transactions, which could adversely affect
our financial position, results of operations and cash flows.
FINANCIAL AND TAXATION RISKS
Difficulty in obtaining financing or refinancing existing debt could impact our financial performance 
Our performance will depend on, among other things, our ability to finance debt repayment obligations and planned
investments from operating cash flow, available liquidity, the renewal or refinancing of existing bank loans and/or
facilities and access to capital markets or other sources of financing. A decline in revenues could have a negative
impact on the cash-generating capacity of our operations. Consequently, we could find ourselves in the position of
having to seek additional financing and/or having to refinance existing debt, including in unfavorable market conditions
with limited availability of funding and a general increase in funding costs. Instability in global capital markets, including
market disruptions, limited liquidity and interest rate and exchange rate volatility, could reduce our access to capital
markets or increase the cost of our short and long-term financing. Any difficulty in obtaining financing could have a
material adverse effect on our business, results of operations and financial position.
Our ability to access the capital markets or other forms of financing and related costs are highly dependent on, among
other things, the credit ratings of CNH Industrial N.V., its subsidiaries, ABS and other debt instruments. Rating agencies
may review and revise their ratings from time to time, and any downgrade or other negative action with respect to our
credit ratings by one or more rating agencies may increase our cost of capital, potentially limit our access to sources of
financing, and have a material adverse effect on our business, results of operations and financial condition.
We are subject to exchange rate fluctuations, interest rate changes and other market risks
We operate in numerous markets worldwide and are exposed to market risks stemming from fluctuations in currency
and interest rates, including as a result of changes in monetary or fiscal policies of governmental authorities from time
to time. We are subject to currency exchange risk to the extent that our costs are denominated in currencies other than
those in which we earn revenues. In addition, the reporting currency for our consolidated financial statements is the
U.S. dollar. Certain of our assets, liabilities, expenses and revenues are denominated in other currencies. Those
assets, liabilities, expenses and revenues are translated into the U.S. dollar at the applicable exchange rates to prepare
our consolidated financial statements. Therefore, increases or decreases in exchange rates between the U.S. dollar
and those other currencies affect the value of those items reflected in our consolidated financial statements, even if
their value remains unchanged in their original currency. Changes in currency exchange rates between the U.S. dollar
and other currencies have had, and will continue to have, an impact on our results of operations and financial condition.
We use various forms of financing to cover the funding requirements of our Industrial Activities and for financing offered
to customers and dealers by Financial Services. Financial Services normally implements a matching policy to offset the
impact of differences in interest rates on the financed portfolio and related liabilities. Nevertheless, any future changes
in interest rates can result in increases or decreases in revenues, finance costs and margins.
Although we seek to manage our currency risk and interest rate risk, including through hedging activities, there can be
no assurance that we will be able to do so successfully, and our business, results of operations and financial position
could be adversely affected. In addition, by utilizing these instruments, we potentially forego the benefits that may result
from favorable fluctuations in currency exchange and interest rates. For additional information, see Note 30 “Information
on financial risks” to the Consolidated Financial Statements at December 31, 2021.
We also face risks from currency devaluations. Currency devaluations result in a diminished value of funds
denominated in the currency of the country suffering the devaluation.
Board Report  Risk Factors    33
Because Financial Services provides financing for a significant portion of our sales worldwide, our operations
and financial results could be impacted materially should negative economic conditions affect the financial
services industry
Negative economic conditions can have an adverse effect on the financial services industry in which Financial Services
operates. Financial Services, through wholly-owned financial services companies and joint ventures, provides financing
for a significant portion of our sales worldwide. Financial Services may experience credit losses that exceed its
expectations and adversely affect its financial condition and results of operations. Financial Services’ inability to access
funds at cost-effective rates to support its financing activities could have a material adverse effect on our business.
Financial Services’ liquidity and ongoing profitability depend largely on timely access to capital in order to meet future
cash flow requirements and to fund operations and costs associated with engaging in diversified funding activities.
Additionally, negative market conditions could reduce customer confidence levels, resulting in declines in credit
applications and increases in delinquencies and default rates, which could materially impact Financial Services’ write-
offs and provision for credit losses. Financial Services may also experience residual value losses that exceed its
expectations caused by lower pricing for used vehicles or equipment and higher than expected vehicle or equipment
returns at lease maturity.
We are subject to interest rate risks and changes in interest rates can reduce demand for equipment, adversely
affect the interest margins in our Financial Services segment, and limit access to capital markets while
increasing borrowing costs
Rising interest rates could have a dampening effect on overall economic activity as well as on the financial health of our
customers, either of which could negatively affect customer demand for our products and services as well as
customers’ ability to service any financing provided by our Financial Services segment. In addition, credit market
dislocations could have an impact on funding costs, which in turn may make it more difficult for our Financial Services
Segment to offer customers competitive financing rates. While we aim to limit the exposure of our net financial assets to
changes in prevailing interest rates, interest rates volatility could have an adverse effect on our net interest rate margin-
i.e., the difference between the yield we earn on assets and the interest rates we pay. Actions by credit rating agencies,
such as downgrades or negative changes to ratings outlooks, can affect the availability and cost of funding for the
Company and can increase the Company’s cost of capital and hurt its competitive position.
An increase in delinquencies or repossessions could adversely affect the results of Financial Services
Fundamental in the operation of Financial Services is the credit risk associated with its customers/borrowers. The
creditworthiness of each customer, rates of delinquency and default, repossessions and net losses on loans to
customers are impacted by many factors, including: relevant industry and general economic conditions; the availability
of capital; the terms and conditions applicable to extensions of credit; the experience and skills of the customer’s
management team; commodity prices; political events, including government mandated moratoria on payments;
weather; and the value of the collateral securing the extension of credit. An increase in delinquencies or defaults, or a
reduction in repossessions could have an adverse impact on the performance of Financial Services and our earnings
and cash flows. In addition, although Financial Services evaluates and adjusts its allowance for credit losses related to
past due or non-performing receivables on a regular basis, adverse economic conditions or other factors that might
cause deterioration of the customers' financial health could change the timing and level of payments received and thus
necessitate an increase in Financial Services’ reserves for estimated losses, which could have a material adverse effect
on Financial Services’ and our results of operations and cash flows.
We may be exposed to shortfalls in our pension plans
At December 31, 2021, the funded status for our defined benefit pension, healthcare and other post-employment
benefits was an underfunded status of $1,062 million that is included in the consolidated statement of financial position
related to CNH Industrial prior to the Demerger ("CNH Industrial Pre-Demerger" or "CNHI Pre-Demerger"), of which
$595 million was related to Continuing Operations and $467 million related to Discontinued Operations. The funded
status is the balance between the present value of the defined benefit obligation and the fair value of related assets, in
case of funded plans (plans managed by a separate fund, “trust”). Consequently, the funded status is subject to many
factors, as discussed in the Consolidated Financial Statements at December 31, 2021, section “Significant Accounting
Policies” paragraph “Use of Estimates”, as well as Note 22 “Provisions for employee benefits”.
To the extent that our obligations under a plan are unfunded or underfunded, we will have to use cash flows from
operations and other sources to pay our obligations as they become due. In addition, since the assets that currently
fund these obligations are primarily invested in debt instruments and equity securities, the value of these assets is
subject to changes due to market fluctuations.
We have significant outstanding indebtedness, which may limit our ability to obtain additional funding and may
limit our financial and operating flexibility
As of December 31, 2021, we had an aggregate of $24,255 million (including $19,509 million relating to Financial
Services’ activities) of consolidated gross indebtedness, and our equity was $8,426 million, including noncontrolling
Board Report  Risk Factors    34
interests. At December 31, 2021, $21,689 million and $2,566 million of the aggregate consolidated gross indebtedness
was related to Continuing Operations and to Discontinued Operations, respectively. The extent of our indebtedness
could have important consequences on our operations and financial results, including:
▪we may not be able to secure additional funds for working capital, capital expenditures, debt service requirements
or general corporate purposes;
▪we may need to use a portion of our projected future cash flow from operations to pay principal and interest on our
indebtedness, which may reduce the amount of funds available to us for other purposes;
▪we may be more financially leveraged than some of our competitors, which could put us at a competitive
disadvantage;
▪we may not be able to invest in the development or introduction of new products or new business opportunities;
▪our future cash flow may be exposed to the risk of interest rate volatility (see above);
▪we may not be able to adjust rapidly to changing market conditions, which may make us more vulnerable to a
downturn in general economic conditions; and
▪we may not be able to access the capital markets on favorable terms, which may adversely affect our ability to
provide competitive retail and wholesale financing programs.
These risks are exacerbated by the ongoing volatility in the financial markets, in part resulting from perceived strains on
the finances and creditworthiness of several governments and financial institutions, particularly in the European Union
and Latin America, and from continued concerns about global economic growth, particularly in emerging markets, as a
result of, among others, the COVID-19 pandemic.
Further, our indebtedness under some of our instruments including certain derivative transactions may bear interest at
variable interest rates or have other terms based on LIBOR. The LIBOR benchmark has been subject to national,
international, and other regulatory guidance and proposals for reform. In July 2017, the U.K. Financial Conduct
Authority announced that it intends to stop persuading or compelling banks to submit rates for calculation of LIBOR
after 2021. Although this deadline has subsequently been extended to June 2023, these reforms may cause LIBOR to
perform differently than in the past and in particular may do so in the future as the deadline approaches potentially
making it unsuitable to use as a benchmark. The consequences of any potential cessation, modification or other reform
of LIBOR cannot be predicted at this time. Any new benchmark rate will likely not replicate LIBOR exactly, which could
impact new variable rate credit facilities and derivative transaction. Any changes to benchmark rates could have an
impact on our cost of funds and our access to the capital markets, which could impact our results of operations and
cash flows. Uncertainty as to the nature of such potential changes may also adversely affect the trading market for our
securities.
Restrictive covenants in our debt agreements could limit our financial and operating flexibility
The agreements governing our outstanding debt securities and other credit agreements to which we are a party from
time to time contain, or may contain, covenants that restrict our ability to, among other things:
▪incur additional indebtedness by certain subsidiaries;
▪make certain investments;
▪enter into certain types of transactions with affiliates;
▪sell or acquire certain assets or merge with or into other companies; and/or
▪use assets as security in other transactions.
Although we do not believe any of these covenants materially restrict our operations currently, a breach of one or more
of the covenants could result in adverse consequences that could negatively impact our businesses, results of
operations, and financial position. These consequences may include the acceleration of amounts outstanding under
certain of our credit facilities, triggering an obligation to redeem certain debt securities, termination of existing unused
commitments by our lenders, refusal by our lenders to extend further credit under one or more of the facilities or to
enter into new facilities or the lowering or modification of CNH Industrial’s credit ratings or those of one or more of its
subsidiaries. For further information, see Note 24 “Debt” to the Consolidated Financial Statements at December 31,
2021.
CNH Industrial operates and will continue to operate, as a company that is resident in the U.K. for tax
purposes; other tax authorities may treat CNH Industrial as being tax resident elsewhere
CNH Industrial is not incorporated in the U.K.; therefore, in order to be resident in the U.K. for tax purposes, CNH
Industrial’s central management and control must be located (in whole or in part) in the U.K. The test of central
management and control is largely a question of fact based on all the circumstances. The decisions of the U.K. courts
and the published practice of Her Majesty’s Revenue & Customs, or HMRC, suggest that CNH Industrial should be
Board Report  Risk Factors    35
regarded as being U.K.-resident on this basis. The competent authority ruling referred to below supports this analysis.
Although CNH Industrial’s “central management and control” is in the U.K., it would not be treated as U.K.-resident if (a)
CNH Industrial were concurrently resident in another jurisdiction (applying the tax residence rules of that jurisdiction)
which has a double tax treaty with the U.K.; and (b) that tax treaty allocates exclusive residence to that other
jurisdiction.
Although CNH Industrial’s central management and control is in the U.K., CNH Industrial is considered to be resident in
the Netherlands for Dutch corporate income tax and Dutch dividend withholding tax purposes because CNH Industrial
is incorporated in the Netherlands. The U.K. and Dutch competent authorities have agreed, following a mutual
agreement procedure (as contemplated by the Netherlands-U.K. tax treaty), that CNH Industrial will be regarded as
solely resident in the U.K. for purposes of the application of the Netherlands-U.K. tax treaty provided that CNH
Industrial operates as planned and provides appropriate required evidence to the U.K. and Dutch competent tax
authorities. If the facts upon which the competent authorities issued this ruling change over time, this ruling may be
withdrawn or cease to apply and in that case the Netherlands may levy corporate income tax on CNH Industrial and
impose withholding taxes on dividends distributed by CNH Industrial.
CNH Industrial’s residence for Italian tax purposes is also largely a question of fact based on all the circumstances.
CNH Industrial has a management and organizational structure such that CNH Industrial should not be deemed
resident in Italy under Italian domestic law except to the extent of CNH Industrial's Italian branch, and should be
deemed resident exclusively in the U.K. from the date of its incorporation for purposes of the Italy-U.K. tax treaty.
Because this analysis is highly factual and may depend on future changes in CNH Industrial’s management and
organizational structure, there can be no assurance regarding the final determination of its tax residence. Should CNH
Industrial be treated as an Italian tax resident, CNH Industrial would be subject to corporate income tax in Italy on its
worldwide income and may be required to comply with withholding tax on dividends and other distributions and/or
reporting obligations under Italian law, which could result in additional costs and expenses. 
Tax may be required to be withheld from dividend payments
Although the U.K. and Dutch competent authorities have ruled that we should be treated as solely resident in the U.K.
for the purposes of the Netherlands-U.K. double tax treaty, under Dutch domestic law dividend payments made by us to
Dutch residents are still subject to Dutch dividend withholding tax and we would have no obligation to pay additional
amounts in respect of such payments.
Should withholding taxes be imposed on future dividends or distributions with respect to our common shares, whether
such withholding taxes are creditable against a tax liability to which a shareholder is otherwise subject depends on the
laws of such shareholder’s jurisdiction and such shareholder’s particular circumstances. Shareholders are urged to
consult their tax advisors in respect of the consequences of the potential imposition of withholding taxes.
We may incur additional tax expense or become subject to additional tax exposure
We are subject to income taxes in many jurisdictions around the world. Our tax liabilities are dependent upon the
location of earnings among these different jurisdictions. Our future results of operations could be adversely affected by
changes in the consolidated effective tax rate as a result of a change in the mix of earnings in countries with differing
statutory tax rates, changes in our overall profitability, changes in tax legislation and rates, changes in generally
accepted accounting principles and changes in the valuation of deferred tax assets and liabilities. If our effective tax
rates were to increase, or if the ultimate determination of our taxes owed is for an amount in excess of amounts
previously accrued or paid, our operating results, cash flows, and financial position could be adversely affected. For
further information, see Note 9 “Income tax (expense) benefit” to the Consolidated Financial Statements at December
31, 2021. 
RISKS RELATED TO OUR COMMON SHARES
Our maintenance of two exchange listings may adversely affect liquidity in the market for our common shares
and could result in pricing differentials of our common shares between the two exchanges
The dual listing of our common shares on the NYSE and the Euronext Milan (previously named MTA) may split trading
between the two markets and adversely affect the liquidity of the shares in one or both markets and the development of
an active trading market for our common shares on the NYSE and may result in price differentials between the
exchanges. Differences in the trading schedules, trading volume and investor bases, as well as volatility in the
exchange rate between the two trading currencies, among other factors, may result in different trading prices for our
common shares on the two exchanges or otherwise adversely affect liquidity and trading prices of our shares.
Board Report  Risk Factors    36
The loyalty voting program may affect the liquidity of our common shares and reduce our share price
CNH Industrial’s loyalty voting program is intended to reward shareholders for maintaining long-term share ownership
by granting initial shareholders and persons holding shares continuously for at least three years, the option to elect to
receive special voting shares. Special voting shares cannot be traded and, immediately prior to the transfer of our
common shares from the CNH Industrial Loyalty Register, any corresponding special voting shares shall be transferred
to CNH Industrial for no consideration (om niet). This loyalty voting program is designed to encourage a stable
shareholder base and, conversely, it may deter trading by those shareholders who are interested in gaining or retaining
special voting shares. Therefore, the loyalty voting structure may reduce liquidity in our common shares and adversely
affect their trading price. 
The loyalty voting program may prevent or frustrate attempts by our shareholders to change our management
and hinder efforts to acquire a controlling interest in us, and the market price of our common shares may be
lower as a result
The provisions of our Articles of Association establishing the loyalty voting program may make it more difficult for a third
party to acquire, or attempt to acquire, control of us, even if a change of control is considered favorably by shareholders
holding a majority of our common shares. As a result of the loyalty voting program, a relatively large proportion of the
voting power of our common shares could be concentrated in a relatively small number of shareholders who would
have significant influence over us. As of December 31, 2021, EXOR N.V. had a voting interest in CNH Industrial of
approximately 42.5%. For further information, see section “Major Shareholders”. Such shareholders participating in the
loyalty voting program could effectively prevent change of control transactions that may otherwise benefit our
shareholders. 
The loyalty voting program may also prevent or discourage shareholders’ initiatives aimed at changes in our
management.
Board Report  Risk Factors    37
BUSINESS OVERVIEW
INTRODUCTION
During 2021, CNH Industrial completed a strategic project to separate the Commercial and Specialty Vehicles business,
the Powertrain business, and the related Financial Services business (together the “Iveco Group Business”) from the
Agriculture business, the Construction business, and the related Financial Services business.
The Iveco Group Business was separated from CNH Industrial N.V. in accordance with Section 2:334a (3) of the Dutch
Civil Code (Burgerlijk Wetboek) by way of a legal statutory demerger (juridische afsplitsing) to Iveco Group N.V. (the
"Demerger"), effective January 1, 2022. A description of the principal phases leading up to completion of the Demerger
is provided in the Notes to the Consolidated Financial Statements.
As the transaction took effect on January 1, 2022, the consolidated financial statements for the year ended December
31, 2021 relate to CNH Industrial Pre-Demerger. Moreover, in accordance with IFRS 5 – Non-current Assets Held for
Sale and Discontinued Operations, as the Demerger became highly probable in December, the Iveco Group Business
is classified and presented as Discontinued Operations in these consolidated financial statements. That presentation
has resulted in the following:
▪for both years 2021 and 2020 (the latter presented for comparative purposes), the operating results of Iveco Group
Business are presented in a single line item "Profit/(Loss) from Discontinued Operations, net of tax" within the
Consolidated Income Statement;
▪all assets and liabilities (excluding equity) relating to Iveco Group Business at December 31, 2021 are reclassified as
Assets held for distribution and Liabilities held for distribution, respectively, within the Consolidated Statement of
Financial Position;
▪for both years 2021 and 2020 (the latter presented for comparative purposes), the cash flows arising from the Iveco
Group Business (as Discontinued Operations) are presented in the Consolidated Statement of Cash Flows as
separate line items under cash flows from operating, investing and financing activities.
For additional detail of items presented under Discontinued Operations in the Consolidated Statements of Income,
Financial Position and Cash Flows, refer to the section "Scope of Consolidation - Discontinued Operations - Iveco
Group Business".
Additionally, as the Demerger is a “business combination involving entities or businesses under common control”, it is
outside the scope of application of IFRS 3 – Business Combinations and IFRIC 17- Distributions of Non-cash Assets to
Owners. Accordingly, in the 2022 consolidated financial statements for CNH Industrial and Iveco Group, the opening
position for items in the statement of financial position will be equivalent to the carrying amounts reported in the
consolidated financial statements of CNH Industrial Pre-Demerger.
GENERAL
Until December 31, 2021, CNH Industrial was a leading global capital goods company engaged in the design,
production, marketing, sale, and financing of agricultural and construction equipment, trucks, commercial vehicles,
buses and specialty vehicles for firefighting, defense and other uses, as well as engines, transmissions and axles for
those vehicles and engines for marine and power generation applications. At the same date, CNH Industrial had
industrial and financial services companies located in 44 countries and a commercial presence in approximately 180
countries.
Following the Demerger, effective January 1, 2022, CNH Industrial is a leading global capital goods company engaged
in the design, production, marketing, sale, and financing of agricultural and construction equipment.
Until December 31, 2021, CNH Industrial had the following five operating segments:
Continuing Operations – Industrial Activities Segments
▪Agriculture designs, manufactures and distributes a full line of farm machinery and implements, including two-wheel
and four-wheel drive tractors, crawler tractors (Quadtrac®), combines, cotton pickers, grape and sugar cane
harvesters, hay and forage equipment, planting and seeding equipment, soil preparation and cultivation implements,
and material handling equipment. Agricultural equipment is sold under the New Holland Agriculture and Case IH
brands, as well as the STEYR, Kongskilde and Överum brands in Europe and the Miller brand, primarily in North
America and Australia.
Board Report  Business Overview    38
▪Construction designs, manufactures and distributes a full line of construction equipment including excavators,
crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, and compact track loaders. Construction
equipment is sold under the CASE Construction Equipment and New Holland Construction brands.
Discontinued Operations – Industrial Activities Segments
▪Commercial and Specialty Vehicles designs, manufactures and distributes a full range of light, medium, and heavy
vehicles for the transportation and distribution of goods under the IVECO brand, city-buses, commuter buses under
the IVECO BUS (previously Iveco Irisbus) and HEULIEZ BUS brands, quarry and mining equipment under the
IVECO ASTRA brand, firefighting vehicles under the Magirus brand, and vehicles for civil defense and peace-keeping
missions under the Iveco Defence Vehicles brand.
▪Powertrain designs, manufactures and distributes, under the FPT Industrial brand, a range of combustion engines,
alternative propulsion systems, transmission systems and axles for on- and off-road applications, as well as for
marine and power generation.
▪Financial Services
Financial Services, prior to the Demerger, offered a range of financial products and services to dealers and
customers of both Off-Highway and On-Highway Industrial Activities segments. Financial Services provided and
administered retail financing to customers for the purchase or lease of new and used vehicles and other equipment
sold by CNH Industrial brand dealers. In addition, Financial Services provided wholesale financing to CNH Industrial
brand dealers. Wholesale financing consists primarily of floor plan financing and allows the dealers to purchase and
maintain a representative inventory of products. Financial Services also provided trade receivables factoring services
to CNH Industrial companies.
Following the Demerger, the European operations of CNH Industrial Financial Services will be separated as follows:
the receivable portfolios related to the captive activity of each group (CNH Industrial and Iveco Group), together with
the related funding, will be attributed to each group, while the servicing of these separated portfolios will be
performed by Iveco Group’s Financial Services segment. CNH Industrial will provide financial services to Iveco Group
companies in the rest of the world.
Net Revenues by Segment and by Region:
Net revenues by segment in the years ended December 31, 2021 and 2020 were as follows:
2021
2020
($ million)
Continuing
Operations
Discontinued
Operations
Eliminations
CNHI Pre-
Demerger
Continuing
Operations
Discontinued
Operations
Eliminations
CNHI Pre-
Demerger
Agriculture
14,754
—
—
14,754
10,916
—
—
10,916
Construction
3,081
—
—
3,081
2,170
—
—
2,170
Commercial and
Specialty Vehicles
—
12,204
—
12,204
—
9,420
—
9,420
Powertrain
—
4,435
—
4,435
—
3,633
—
3,633
Eliminations and
Other
—
(1,831)
(917)
(2,748)
(11)
(1,273)
(563)
(1,847)
Total of Industrial
Activities
17,835
14,808
(917)
31,726
13,075
11,780
(563)
24,292
Financial Services
1,664
230
(32)
1,862
1,644
188
(25)
1,807
Eliminations and
Other
(25)
(75)
(7)
(107)
(23)
(76)
(16)
(115)
Total
19,474
14,963
(956)
33,481
14,696
11,892
(604)
25,984
Board Report  Business Overview    39
Net revenues by region in the years ended December 31, 2021 and 2020 were as follows:
2021
2020
($ million)
Continuing
Operations
Discontinued
Operations
Eliminations
CNHI Pre-
Demerger
Continuing
Operations
Discontinued
Operations
Eliminations
CNHI Pre-
Demerger
Europe
5,317
11,122
(603)
15,836
4,299
8,960
(394)
12,865
North America
7,804
281
(100)
7,985
6,012
190
(66)
6,136
South America
3,132
1,388
(168)
4,352
2,034
710
(97)
2,647
Rest of World
3,221
2,172
(85)
5,308
2,351
2,032
(47)
4,336
Total
19,474
14,963
(956)
33,481
14,696
11,892
(604)
25,984
INDUSTRY OVERVIEW
Agriculture
The operators of dairy, livestock and row crop producing farms, as well as independent contractors that provide
services to such farms, purchase most agricultural equipment. Row crop farmers typically purchase tractors at the mid-
to-upper end of the horsepower ("hp") range, combines and harvesting equipment and crop production equipment.
Dairy and livestock farmers typically utilize tractors in the mid-to-lower hp range and crop preparation and crop
packaging implements. The key factors influencing sales of agricultural equipment are the level of net farm income and,
to a lesser extent, general economic conditions, interest rates and the availability of financing and related subsidy
programs, farm land prices and farm debt levels. Net farm income is primarily impacted by the volume of acreage
planted, commodity and/or livestock prices and stock levels, the impacts of fuel ethanol demand, crop yields, farm
operating expenses (including fuel and fertilizer costs), fluctuations in currency exchange rates, government subsidies,
tax incentives and trade policies. Farmers tend to postpone the purchase of equipment when the farm economy is
deteriorating and to increase their purchases when economic conditions improve. The availability, quality, and cost of
used equipment for sale also affect the level of new equipment sales. Weather conditions are a major determinant of
crop yields and therefore affect equipment-buying decisions. In addition, geographical variations in weather from
season-to-season may affect sales volumes differently in different markets. Government policies may affect the market
for agricultural equipment by regulating the amount of acreage planted, with direct subsidies affecting specific
commodity prices, or with other payments made directly to farmers. Global organization initiatives, such as those of the
World Trade Organization, also can affect the market with demands for changes in governmental policies and practices
regarding agricultural subsidies, tariffs and acceptance of genetically modified organisms such as seed, feed and
animals.
Demand for agricultural equipment also varies seasonally by region and product, primarily due to differing climates and
farming calendars. Peak retail demand for tractors and planting, seeding, and application equipment typically occurs in
March through June in the Northern hemisphere and in September through December in the Southern hemisphere.
Dealers order equipment year-round but harvesting equipment orders in the Northern hemisphere generally increase in
the late fall and winter so that the dealers can receive inventory prior to the peak retail selling season, which generally
extends from March through June. In the Southern hemisphere, dealers generally order between August and October
so they can receive inventory prior to the peak retail-selling season, which extends from November through February.
Agriculture's production levels are based upon estimated retail demand, which takes into account, among other things,
the timing of dealer shipments (which occur in advance of retail demand), dealer and Company inventory levels, the
need to retool manufacturing facilities to produce new or different models, and the efficient use of labor and facilities.
Production levels are adjusted to reflect changes in estimated demand and dealer inventory levels. However, because
production and wholesale shipments adjust throughout the year to take into account the factors described above,
wholesale sales of agricultural equipment products in any given period may not reflect the timing of dealer orders and
retail demand for that period. This situation has been emphasized during the current pandemic environment where the
global supply chain has been disrupted for a series of reasons linked with production not able to match demand and
transportation becoming congested with increases in lead times and expenses.
Customer preferences regarding farming practices, and thus product types and features, vary by region. In North
America, Australia and other areas where soil conditions, climate, economic factors and population density allow for
intensive mechanized agriculture, farmers generally demand high capacity, sophisticated machines equipped with the
most advanced technology. In Europe, where farms are generally smaller in size than those in North America and
Australia, there is greater demand for somewhat smaller, yet equally sophisticated, machines. In the developing regions
of the world where labor is more abundant and infrastructure, soil conditions and/or climate are not conducive to
intensive agriculture, customers generally prefer simple, robust and durable machines with relatively lower acquisition
and operating costs. In many developing countries, tractors are the primary, if not the sole, type of agricultural
equipment used, and much of the agricultural work in such countries that cannot be performed by tractors is carried out
Board Report  Business Overview    40
by hand. A growing number of part-time farmers, hobby farmers and customers engaged in landscaping, municipality
and park maintenance, golf course and roadside mowing in Western Europe and North America prefer relatively simple,
low-cost agricultural equipment. Our position as a geographically diversified manufacturer of agricultural equipment and
our broad geographic network of dealers allows us to provide customers in each significant market with equipment that
meets their specific requirements.
Major trends in the North American and Western European agricultural industries include a reduction in number but
growth in size of farms, supporting increased demand for higher capacity agricultural equipment. In addition, we believe
that the use of technology and other precision farming solutions (including the development of autonomously operated
equipment) to enhance productivity and profitability are becoming more important in the buyers’ purchasing decision. In
South America and in other emerging markets, the number of farms is growing, and mechanization is replacing manual
labor. In Rest of World, long-term demographic trends, increasing urbanization, and low level of farm mechanization
represent the key drivers of demand for agricultural equipment.
Government farm programs, including the amount and timing of government payments, are a key income driver for
farmers raising certain commodity crops in the United States (the "U.S.") and the European Union. The existence of a
high level of subsidies in these markets for agricultural equipment reduces the effects of cyclicality in the agricultural
equipment business. The effect of these subsidies on agricultural equipment demand depends largely on the U.S. Farm
Bill and programs administered by the United States Department of Agriculture, the Common Agricultural Policy of the
European Union and World Trade Organization negotiations. Additionally, the Brazilian government subsidizes the
purchase of agricultural equipment through low-rate financing programs administered by the Banco Nacional de
Desenvolvimento Economico e Social (“BNDES”). These programs have a significant influence on sales.
Agricultural equipment manufacturers are subject to, among other things, continuous changes in engine emission
regulations and restrictions. These changes require frequent changes in engine technology, which can involve
significant research and development investments. Manufacturers generally attempt to pass these incremental costs on
their customers, but these price increases must be balanced with the affordability of the equipment. Each market may
have its own unique emissions regulations, which adds a level of complexity required to meet global product needs.
Global demand for renewable fuels increased considerably in recent years driven by consumer preference, government
renewable fuel mandates, renewable fuel tax and production incentives. Biofuels, which include fuels such as ethanol
and biodiesel, have become one of the most prevalent types of renewable fuels. The primary type of biofuel supported
by government mandates and incentives varies by region. North America and Brazil are promoting ethanol first and
then biodiesel, while Europe is primarily focused on biodiesel.
The demand for biofuels has created an associated demand for agriculturally based feedstocks, which are used to
produce biofuels. Currently, most of the ethanol in the U.S. and Europe is extracted from corn, while in Brazil it is
extracted from sugar cane. Biodiesel is typically extracted from soybeans and rapeseed oil in the U.S. and Brazil, and
from rapeseed and other oil seeds as well as food waste by-products in Europe. The use of corn and soybeans for
biofuel has been one of the main factors affecting the supply and demand relationships, as well as the price for these
crops. The economic feasibility of biofuels is significantly impacted by the price of oil. As the price of oil falls, biofuels
become a less attractive alternative energy source. This relationship will, however, be impacted by government policy
and mandates as governments around the world consider ways to combat global warming and avoid potential energy
resource issues in the future.
Sustainability and being a Clean Energy Leader has been a focus of CNH Industrial since 2009. During the 2021 United
Nations Climate Change Conference, COP26 event in Scotland, there was an emphasis on carbon reduction with
significant attention on livestock and dairy farming and their impact on emissions from animal waste. With the use of a
bio-digester, animal waste and food waste can be processed to produce bio-methane. CNH Industrial has developed a
Methane Powered Tractor, which started production in 2021, that runs on methane produced on the farm from the
animal and food waste. The CNH Industrial developed Methane Powered Tractor was twice awarded the prestigious
Sustainable Tractor of the Year award, most recently at the 2022 EIMA international show and several Methane Power
tractors were retailed after intensive testing around the world. Moreover, in 2021 CNH Industrial has participated with a
minority equity share participation into the U.K. based technology start-up, Bennamann, which has developed an on-
site kit for small-medium size livestock farms to capture and repurpose fugitive methane as a green fuel from their
waste and generate bio-methane which would allow a successful implementation of the circular economy in the core of
that Agricultural space where we see concerning CO2 emissions.
This approach also improves the sustainability of farmland management practices through minimizing artificial inputs
such as manufactured fertilizer, lowering operational costs and reducing pollutants. This concept will contribute to the
dairy farms decarbonization and the ‘Energy Independent’ approach is currently being tested across a number of pilot
farms in South West England. Bio-methane production started demonstrating the viability of the closed loop energy
system.
The most significant change in U.S. crop production was the increase in acreage devoted to corn, typically using land
previously planted with soybeans and cotton. In addition, a change in crop rotation resulted in more acres of corn being
Board Report  Business Overview    41
planted. As a result, agricultural producers are faced with new challenges for managing crop residues and are changing
the type of equipment they use and how they use it.
Although the demand for new agricultural equipment tends to decrease during periods of economic stagnation or
recession, the aftersales market is historically less volatile than the new equipment market and, therefore, helps limit
the impact of declines in new equipment sales on the operating results of full-line manufacturers, such as Agriculture.
Construction
The construction equipment market consists of two principal segments: heavy construction equipment (excluding the
mining and the specialized forestry equipment markets in which we do not participate), with equipment generally
weighing more than 12 metric tons, and light construction equipment, with equipment generally weighing less than 12
metric tons.
In developed markets, customers tend to prefer more sophisticated machines equipped with the latest technology and
features to improve operator productivity. In developing markets, customers tend to prefer equipment that is relatively
less costly and has greater perceived durability. In North America and Europe, where the cost of machine operators is
higher relative to fuel costs and machine depreciation, customers typically emphasize productivity, performance and
reliability. In other markets, where the relative cost for machine operators is lower, customers often continue to use
equipment after its performance and efficiency have begun to diminish.
Customer demand for power and operating capacity does not vary significantly from market to market. However, in
many countries, restrictions on equipment weight or dimensions, as well as road regulations or job site constraints can
limit demand for larger machines.
Although the demand for new construction equipment tends to decrease during periods of economic stagnation or
recession, the aftersales market is historically less volatile than the new equipment market and, therefore, helps limit
the impact of declines in new equipment sales on the operating results of full-line manufacturers, such as Construction.
Heavy Construction
Heavy construction equipment typically includes general construction equipment such as large wheel loaders and
excavators, and road building and site preparation equipment such as graders, compactors and dozers. Purchasers of
heavy construction equipment include construction companies, municipalities, local governments, rental fleet owners,
quarrying and mining companies, waste management companies and forestry-related concerns.
Sales of heavy construction equipment depend on the expected volume of major infrastructure construction and repair
projects such as highway, tunnel, dam and harbor projects, which depend on government spending and economic
growth. Demand for aggregate mining and quarrying equipment is more closely linked to the general economy and
commodity prices, while growing demand for environmental equipment is becoming less sensitive to the economic
cycle. In North America, a portion of heavy equipment demand has historically been linked to the development of new
housing subdivisions, where the entire infrastructure needs to be created, thus linking demand for both heavy and light
construction equipment. The heavy equipment industry generally follows macroeconomic cyclicality, linked to growth in
gross domestic product.
Light Construction
Light construction equipment is also known as compact and service equipment, and it includes skid-steer loaders,
compact track loaders, tractor loaders, rough terrain forklifts, backhoe loaders, small wheel loaders and excavators.
Purchasers of light construction equipment include contractors, residential builders, utilities, road construction
companies, rental fleet owners, landscapers, logistics companies, and farmers. The principal factor influencing sales of
light construction equipment is the level of residential and commercial construction, remodeling and renovation, which is
influenced by interest rates and the availability of financing. Other major factors include the construction of light
infrastructure, such as utilities, cabling and piping and maintenance expenditures. The principal use of light construction
equipment is to replace relatively high-cost, slower manual work. Product demand in the United States and Europe has
generally tended to mirror housing starts, but with lags of six to twelve months. In areas where labor is abundant, and
the cost of labor is inexpensive relative to other inputs, such as in India, Africa and South America, the light construction
equipment market is generally smaller. These regions represent potential areas of growth for light construction
equipment in the medium to long-term as labor costs rise relative to the cost of equipment or the supply of labor
contraction leading to increased mechanization.
Equipment rental is a significant element of the construction equipment market. Compared to the U.K. and Japan,
where there is an established market for long-term equipment rentals as a result of favorable tax treatment, the rental
market in North America and Western Europe (except for the U.K.) consists mainly of short-term rentals of light
construction equipment to individuals or small contractors for which the purchase of equipment is not cost effective or
that need specialized equipment for specific jobs. In North America, the main rental product has traditionally been the
backhoe loader and, in Western Europe, it has been the mini-excavator. As the market has evolved, a greater variety of
light and heavy equipment products have become available to rent. In addition, rental companies have allowed
Board Report  Business Overview    42
contractors to rent machines for longer periods instead of purchasing the equipment, enabling contractors to complete
specific job requirements with greater flexibility and cost control. Large, national rental companies can significantly
impact the construction equipment market, with purchase volumes being driven by their decisions to increase or
decrease the size of their rental fleets based on rental utilization rates.
Seasonal demand for construction equipment fluctuates somewhat less than for agricultural equipment. Nevertheless,
in North America and Western Europe, housing construction generally slows during the winter months. North American
and European industry retail demand for construction equipment is generally strongest in the second and fourth
quarters.
Agricultural and Landscaping customers also contribute to a significant portion of the North America light equipment
market. In this segment the main applications are related to material handling.
In markets outside of North America, Western Europe and Japan, equipment demand may also be partially satisfied by
importing used equipment. Used heavy construction equipment from North America may fulfill demand in the South
American market and equipment from Western Europe may be sold to Central and Eastern European, North African
and Middle Eastern markets. Used heavy and light equipment from Japan is mostly sold to other Southeast Asian
markets, while used excavators from Japan are sold to almost every other market in the world. This flow of used
equipment is highly influenced by exchange rates, the weight and dimensions of the equipment and the different local
regulations in terms of safety and/or engine emissions.
The construction equipment industry has seen an increase in the use of hydraulic excavators and wheel loaders in
earth-moving and material handling applications. In addition, the light equipment sector has grown as more manual
labor is being replaced on construction sites by machines with a variety of attachments for specialized applications,
such as skid steer loaders, compact track loaders and mini-crawler excavators.
Commercial and Specialty Vehicles
Trucks and Commercial Vehicles
The world truck market is generally divided into two segments: Light Commercial Vehicles (“LCV”) market (gross
vehicle weight (“GVW”) 3.5-7.49 metric tons), and Medium and Heavy (“M&H”) truck market (GVW above 7.5 metric
tons). The M&H segment is characterized by a higher level of engineering specialization due to the technologies and
production systems utilized, while the LCV segment has many engineering and design characteristics in common with
the automobile industry. In addition, operators of M&H trucks often require vehicles with a higher degree of
customization than the more standardized products that serve the LCV market. Customers generally purchase heavy
trucks for one of three primary uses: long distance haulage, construction haulage, and/or distribution.
The regional variation in demand for trucks and commercial vehicles is influenced by differing economic conditions,
levels of infrastructure development, and geographic region, all of which lead to differing transport requirements.
M&H truck demand tends to be closely aligned with the general economic cycle and the capital investment cycle
including the general level of interest rates and, governmental subsidy programs, particularly in more developed
markets such as Europe, North America and Japan, as economic growth provides increased demand for haulage
services and an incentive for transporters to invest in more efficient, less polluting, higher capacity vehicles and renew
vehicle fleets. The product life cycle for M&H trucks typically covers a seven to ten-year period.
Although economic cycles have a significant influence on demand for M&H trucks in emerging economies, the
processes of industrialization and infrastructure development have generally driven long-term growth trends in these
countries. As a country’s economy becomes more industrialized and its infrastructure develops, transport needs tend to
grow in response to increases in production and consumption. Developing economies, however, tend to display
volatility in short-term demand resulting from government intervention, changes in the availability of financial resources
and protectionist trade policies. In developing markets, demand for M&H trucks increases when it becomes more cost-
effective to transport heavier loads, especially as the infrastructure, primarily roads and bridges, becomes capable of
supporting heavier trucks. At the same time, the need to transport goods tends to increase in these markets, resulting in
increased demand for LCV.
Industry forecasts indicate that transportation of goods by road, currently the predominant mode of transport, will
remain so for the foreseeable future. Furthermore, Iveco also offers personalized aftersales customer assistance
programs that provide a wide range of modular and flexible maintenance and repair contracts, as well as warranty
extension services, to meet a variety of customers’ needs and to support the vehicle’s value over time: demand for
those services, as well as for parts, is a function of the number of vehicles in use. Although demand for new commercial
vehicles tends to decrease during periods of economic stagnation or recession, the demand for those services is
historically less volatile than the new vehicle market and, therefore, helps limit the impact of declines in new vehicle
sales on the operating results of full-line manufacturers, such as Commercial and Specialty Vehicles.
Commercial vehicles markets are subject to intense competition based on initial sales price, cost and performance of
vehicles over their life cycle (i.e., purchase price, operating and maintenance costs and residual value of the vehicle at
Board Report  Business Overview    43
the end of its useful life), services and service-related products and the availability of financing options. High reliability
and low variable costs contribute to customer profitability over the life of the vehicle and are usually important factors in
an operator’s purchase decision. Additional competitive factors include the manufacturer’s ability to address customer
transport requirements, driver safety, comfort, and brand loyalty through vehicle design.
Demand for trucks varies seasonally by region and by product class. In Europe, the peak retail demand occurs in the
second and fourth quarters due to key fleet customer demands and customer budgetary cycles. In South America,
demand is relatively stable throughout the year except for increased demand for heavy trucks in the first and fourth
quarters from customers who transport foodstuffs. In Rest of World, sales tend to be higher in the second and fourth
quarters due to local holiday periods.
Although we believe that diesel remains, for the foreseeable future, a key fuel source for commercial vehicles and
industrial equipment in general, the adoption of new engine technological solutions and growing public opinion in favor
of more environmentally friendly solutions are pushing for increased penetration of both alternative and renewable fuels
(such as compressed natural gas (“CNG”), liquefied natural gas (“LNG”), and methane and hydrogen) and full electric
vehicles.
The car industry is leading autonomous vehicle development, but commercial vehicles are also making advances in
platooning and autonomous technologies. We expect this development to intensify. We believe that the growing
automation in transportation and infrastructure solutions through the use of self-driving vehicles will also allow the
industry to provide greater safety, fuel savings, and transport efficiency.
Buses
The global bus business is organized by mission, from city and intercity transport to tourism purposes, with a capacity
ranging from 7 to 150 seated/standing passengers. IVECO BUS (previously Iveco Irisbus) and HEULIEZ BUS target
markets include urban and intercity buses. Operators in this industry include three types of manufacturers: those
specialized in providing chassis to bodybuilders, those that build bodies on chassis produced by third parties, and
those, like IVECO BUS, that produce the entire vehicle.
The primary customers of the bus segment are tour and intercity bus service operators, while the principal customers of
the city bus segment are the transport authorities in urban areas.
Deregulation and privatization of transport services in many markets have favored concentration towards large private
companies operating in one country, in more than one neighboring country, or at an international level. Demand has
increased for highly standardized, high-use products for large fleets, with financing and maintenance agreements or
kilometric pricing. Deregulation and privatization have also increased competition between large transport service
companies, raising the level of vehicle use and increasing the choice of brands for operators in the market.
Sales for urban and intercity buses are generally higher in the second half of the year, due to public entities budgeting
processes, tender rules, and bus production lead-time.
Powertrain
The dynamics of the industrial powertrain business vary across the different market segments in which the various
propulsion systems are used. For vehicle and equipment applications, product development is driven by regulatory
requirements (i.e., legislation on pollutant emissions and, increasingly, CO2 emissions), as well as the need to reduce
total operating costs: customers are seeking more efficient propulsion systems that lower the total cost of ownership
and improve productivity.
For on-road applications in developed markets, where economy and infrastructure drive demand for local and haulage
transportation, demand for engines is driven by general economic conditions, capital investment, industrialization, and
infrastructure developments.
In the bus and marine markets, engine demand is increasingly influenced by the environmental policies of governments
and local authorities (i.e., requirements for natural gas, hybrid and electric solutions).
Demand for off-road applications in the agricultural industry is influenced by many factors, including the price of
agricultural commodities and the relative level of new and used inventories, the profitability of agricultural enterprises,
net farm income, the demand for food products, agricultural policies, as well as climatic conditions. At the same time,
the construction equipment business is driven by general economic factors and the level of public investment in
infrastructure, which affects the need for replacement of old equipment and investment in more innovative solutions to
boost productivity.
Increasingly stringent emission regulations in Europe, the U.S. and Asia represent an opportunity for Powertrain to gain
a competitive advantage through technological solutions developed for engines and after-treatment systems (such as
our High Efficiency SCR technology). Alternative fuels represent a viable alternative to diesel for transport vehicles, as
they are more environment friendly and offer better fuel economy than diesel while performing comparably to diesel
Board Report  Business Overview    44
engines (e.g. LNG for Buses and Commercial Vehicles). Increasing demand for alternative propulsion systems (such as
electrified powertrain or fuel cell) is expected to continue, as related technologies are growing quickly and will offer
business opportunities in the industrial sector. The increasing trend among mid-sized original equipment manufacturers
("OEMs") to outsource engine development, due to the significant research and development expenditures required to
meet the new emission requirements, presents an opportunity for Powertrain to increase sales to third party customers.
COMPETITION
The industries in which we operate are highly competitive. We believe that we have many competitive strengths that will
enable us to improve our position in markets where we are already well established while we direct additional resources
to markets and products with high growth potential.
We compete with: (i) large global full-line equipment manufacturers with a presence in every market and a broad range
of products that cover most customer needs, (ii) manufacturers who are product specialists focused on particular
industry segments on either a global or regional basis, (iii) regional full-line manufacturers, some of which are
expanding worldwide to build a global presence, and (iv) local, low-cost manufacturers in individual markets, particularly
in emerging markets such as Eastern Europe, India and China.
Our competitive strengths include well-recognized brands, a full range of competitive products and features, a strong
presence, distribution and customer service network. There are multiple factors that influence a buyer’s choice of
industrial equipment. These factors include the strength and quality of the distribution network, brand loyalty, product
features, quality and performance, availability of a full product range, pricing, technological innovations, product
availability, financing terms, parts and warranty programs, resale value and customer service and satisfaction. The
ability to meet or exceed applicable engine emissions standards as they take effect is also a key competitive factor,
particularly in those markets where such standards are the subject of frequent legislative or regulatory scrutiny and
change, such as Europe and North America. Emission regulations are becoming a significant competitive factor at
global level with new legislation in India and China. We continually seek to improve in each of these areas but focus
primarily on providing high-quality and high-value products and on supporting those products through our dealer
networks. Customers’ perceptions of product value in terms of productivity, reliability, resale value and dealer support
are formed over many years. Buyers tend to favor brands based on experience with the product and the dealer.
The efficiency of our manufacturing, logistic and scheduling systems are dependent on forecasts of industry volumes
and our anticipated share of industry sales, which is predicated on our ability to compete successfully with others in the
marketplace. We compete based on product performance, customer service, quality, innovation and price. The
environment remains competitive from a pricing standpoint, and actions taken to maintain our competitive position in
the current challenging economic environment could result in lower than anticipated price realization. The ability of our
supply chain and manufacturing system to timely deliver finished goods is also critical to meeting customer
expectations. Failure to do so might imply losses of market share and competitiveness.
Our main competitors in the agricultural equipment market are Deere & Company, AGCO Corporation, Claas Group,
Argo Tractors S.p.A., the Same Deutz Fahr Group, and Kubota Tractor Corporation.
Our principal competitors in the construction equipment market are Caterpillar Inc., Komatsu Ltd., J C Bamford
Excavators Ltd., Hitachi Construction Machinery Co, Ltd., Volvo Group, Liebherr Group, Doosan Group, Kubota Tractor
Corporation, and Deere & Company.
Our principal competitors in the commercial and specialty vehicles market are Daimler Truck, the Traton Group, the
Stellantis Group, Paccar Inc., the Volvo Group, Rosenbauer International AG, Rheinmetall AG, Oshkosh Corporation.
The main competitors of Powertrain include Cummins Inc., Daimler Group, Deere & Company, Deutz AG, Traton Group,
Volvo Group, Yanmar Co., Ltd, Caterpillar/Perkins and Weichai Power Co. Ltd.
PRODUCTS
Agriculture
To capitalize on customer loyalty to its dealers and its brands, Agriculture’s product lines are sold primarily under the
Case IH and New Holland Agriculture brands as well as the STEYR brand in Europe and the Miller brand, primarily in
North America and Australia. Certain agricultural equipment products are also sold under the Kongskilde, Överum, K-
Line and JF brands. We believe that these brands enjoy high levels of brand identification and loyalty among both
customers and dealers.
Although newer generation tractors have a high percentage of common mechanical components, each brand and
product remains differentiated by features, color, interior and exterior styling, warranty terms, technology offering, and
model designation. Flagship products such as row crop tractors and large combine harvesters may have significantly
greater differentiation.
Board Report  Business Overview    45
Distinctive features that are specific to a particular brand such as the Supersteer® tractor axle or Twin Rotor combine
threshing technology for New Holland, the Case IH tracked four-wheel drive tractor, Quadtrac®, and the front axle
mounted hitch for STEYR tractors remain an important part of each brand’s unique identity.
Agriculture’s product lines include tractors, combine harvesters, hay and forage equipment, seeding and planting
equipment, and self-propelled sprayers. Agriculture also specializes in other key market segments like cotton picker
packagers and sugar cane harvesters, where Case IH is a worldwide leader, and in self-propelled grape harvesters,
where New Holland Agriculture is a worldwide leader. These brands each offer parts and support services for all of their
product lines. Our agricultural equipment is sold with a limited warranty that typically runs from one to three years.
Case IH and New Holland Agriculture brands enable their customers to visualize and share in-depth real-time machine
information within the respective AFS-PLM Farm solution and offers data sharing to a vast number of third party
providers at full control of the customer. Agriculture launched the AGXTENDTM brand, focused exclusively on
aftermarket precision farming technology solutions. AGXTENDTM is designed to provide our dealers and customers
access to innovative and more sustainable productivity enhancing precision farming technologies operating seamlessly
with the rest of the CNH Industrial Digital and Precision Solution offering.
AFS and PLM Farm (Previously AgDNA) is an industry leading Farm Management Information System (FMIS) that
automatically collects and analyzes data from equipment manufactured by CNH Industrial and third-party
manufacturers. The cloud-based platform analyzes equipment, agronomic and environmental data to deliver actionable
insights directly to customers' smartphones and tablets to help them maximize the agronomic performance of their CNH
Industrial and other equipment to increase farm profitability.
Raven Industries, Inc., formerly a long-term strategic supplier, was acquired in order to expand our portfolio of precision
agriculture technology offerings and to accelerate the development of advanced machine automation and autonomous
agriculture technology.
Raven Applied Technology designs, manufactures, sells, and services innovative precision agriculture products,
autonomous solutions, and information management tools, which are collectively referred to as precision agriculture
equipment, that help farmers reduce costs, more precisely control inputs, and improve farm yields for the global
agriculture market. The Applied Technology product families include application controls, GPS-guidance steering
systems, field computers, automatic boom controls, advanced machine automation including autonomous agriculture
technology and platforms, information management tools, and injection systems. Applied Technology's services include
high-speed in-field internet connectivity and cloud-based data management.
Construction
Construction’s product lines are sold primarily under the CASE Construction Equipment and New Holland Construction
brands. CASE provides a wide range of products on a global scale, including crawler excavators and mini-excavators.
The New Holland Construction brand family also markets a full product line of construction equipment in South America
and focuses on light equipment distributed by the Agriculture network in the other regions.
Construction's products often share common components to achieve economies of scale in manufacturing, purchasing,
and development. Construction differentiates these products based on the relative product value, technology, design
concept, productivity, product serviceability, color, and styling to preserve the unique identity of each brand.
Heavy construction equipment product lines include general construction equipment such as large excavators and
wheel loaders, and road building and site preparation equipment such as compactors, graders and dozers. Light
construction equipment is also known as compact and service equipment, and its product lines include backhoe
loaders, skid steer and tracked loaders, mini- and midi- excavators, and compact wheel loaders. The brands each offer
parts and support services for all of their product lines. Our construction equipment is generally sold with a limited
warranty that typically runs from one to two years.
We continue to evaluate our Construction business with a view toward increasing efficiencies and profitability as well as
evaluating its strategic alliances to improve its position in key markets. In 2021, we completed the acquisition of
Sampierana S.p.A., which provides Construction direct control over technology and manufacturing of Mini Excavators.
Commercial and Specialty Vehicles
Trucks and Commercial Vehicles (IVECO and IVECO ASTRA)
Under the IVECO brand, we produce a range of light, medium, and heavy trucks and commercial vehicles for both on-
road and off-road use, with approximately 3,700 different models available. Our key products include the Daily, a
vehicle that covers the 3.5 – 7.5 ton vehicle weight range, the Eurocargo, that covers the 7.5 – 16 ton range, and the
Heavy Duty Trucks with vehicle weight range > 16 ton, which include the Trakker, a vehicle capable of off-road
transport, and the S-Way, dedicated to on-road transport. Starting from 2019, IVECO started a process of complete
renewal of the heavy product offering with the launch of the S-Way (the new range for long haulage and distribution)
Board Report  Business Overview    46
and X-Way (dedicated to construction logistics and municipalities); the new T-Way for off-road was introduced in 2021.
The product offering is complemented by a series of aftersales and used vehicle assistance services.
Light vehicles include on-road vans and chassis cabs used for short and medium distance transportation and
distribution of goods, and off-road trucks for use in quarries and other work sites. We have an estimated 25% market
share in Europe in professional heavy cab chassis (above 5 ton GVW). We also offer shuttle vehicles used by public
transportation authorities, tourist operators, hotels and sports clubs and campers for recreational travel.
The M&H vehicle product lines include on-road chassis cabs designed for medium and long-distance hauling and
distribution. Medium GVW off-road models are typically used for building roads, winter road maintenance, construction,
transportation, maintenance of power lines and other installations in off-road areas, civil protection and roadside
emergency service. Heavy GVW off-road models are designed to operate in virtually any climate and on any terrain and
are typically used to transport construction plant materials, transport and mix concrete, maintain roads in winter and
transport exceptionally heavy loads.
We offer ecological diesel and natural gas engines on our entire range of vehicles. We continue to develop engines with
specific components and configurations optimized for use with CNG and LNG and we have developed a
comprehensive roadmap for the introduction in the market of a complete range of zero emission vehicles (from Light to
Heavy).
Under the IVECO ASTRA brand, we build vehicles that can enter otherwise inaccessible quarries and mines and move
large quantities of material, such as rock or mud, and perform heavy-duty tasks in extreme climatic conditions. Our
product range for IVECO ASTRA includes mining and construction vehicles, rigid and articulated dump trucks and other
special vehicles.
On September 3, 2019, CNH Industrial announced a strategic and exclusive Heavy-Duty Truck partnership with Nikola
Corporation, a U.S. based company pursuing fuel cell truck technology development. In this context, CNH Industrial,
through its wholly owned subsidiary Iveco S.p.A., made an initial subscription to Nikola's share capital (approximately
2.5% shareholding) through a cash contribution of $50 million and an in-kind contribution of $50 million, granting Nikola
access to IVECO S-Way technology.
During the second quarter of 2020, Nikola completed a business combination with VectoIQ Acquisition Corp., a publicly-
traded special purpose acquisition company. Under the terms and conditions of the business combination, the former
shareholders of Nikola received 1.901 shares of VectoIQ for each share held in Nikola and became shareholders of
VectoIQ, which, in turn, changed its name to “Nikola Corporation”. The combined company's shares continue to be
listed on NASDAQ under the new ticker symbol “NKLA”. Before the completion of the business combination, CNH
Industrial increased its investment in Nikola, to $250 million. At December 31, 2021 Iveco S.p.A. beneficially owned
approximately 6.208% of Nikola Corporation's common stock.
Iveco S.p.A. and Nikola Corporation are jointly developing cab over battery-electric vehicle (“BEV”) and hydrogen fuel
cell electric vehicle (“FCEV”) trucks, which will be manufactured in Europe through a legal entity 50/50 owned by Iveco
S.p.A. and Nikola Corporation, and in the U.S. by Nikola Corporation. During 2020, Iveco S.p.A. and Nikola entered into
a series of agreements to establish the European legal entity, including two licenses granted by the two shareholders to
allow this legal entity to manufacture BEVs and at a later stage FCEVs. Furthermore, under these agreements, Iveco
S.p.A. will be the manufacturer for any EU emission-related purposes of the vehicles produced and distributed in EU by
this European legal entity and will responsible for their distribution in the EU different jurisdictions. The set-up activities
of the joint venture started in the fourth quarter of 2020 and are progressing according to internal schedules and
production started in Q4 2021.
Buses (IVECO BUS and HEULIEZ BUS)
Under the IVECO BUS and HEULIEZ BUS brands, we offer local and inter-city commuter buses, minibuses, school
buses and tourism coaches, and we are leader in inter-city buses as well as in low and zero emissions solutions.
IVECO BUS is one of the major European manufacturers in the passenger transport sector, with an estimated market
share of 26% in heavy buses in Europe, and is expanding its activities globally. HEULIEZ BUS produces city buses for
public transportation and is a leader in France for the urban bus market. We have a competitive footprint in Europe, the
Middle East and Africa and is looking to grow in Latin America through portfolio expansion. Our bus segment also
benefits from sharing technology with IVECO trucks and commercial vehicles.
Specialty Vehicles (Magirus and Iveco Defence Vehicles)
Under the Magirus brand, we manufacture vehicles designed to respond to natural disasters and civil emergencies,
such as fires, floods, earthquakes and explosions, using new digital and innovative technologies. Iveco Defence
Vehicles develops and manufactures specialized vehicles for defense missions and civil protection.
Board Report  Business Overview    47
Powertrain
Powertrain is dedicated to the design, development, manufacture and sale of combustion engines, alternative
propulsion systems, transmissions, and axles under the FPT Industrial brand.
FPT Industrial has a wide product offering, including six engine ranges (F1, F5, S8000, NEF, Cursor, V20) from 2 to 20
liter and from 42 hp up to 1,006 hp. Furthermore, FPT Industrial offers the most complete Natural Gas engines line-up
on the market for industrial applications, including engine ranges from 136 hp up to 460 hp. FPT Industrial’s product
portfolio includes engines for buses and for light, medium and heavy commercial vehicles, engines for industrial
machinery including construction, agricultural and industrial equipment, engines for special-purpose vehicles and
engines for power generation units and marine applications.
FPT Industrial’s product line-up is completed by versions that use alternative fuels, including engines that run on natural
gas and engines compatible with renewable diesel (such as hydro-treated vegetable oil, xTL). With more than 20 years
of experience in the research, development and production of natural gas engine technologies for industrial
applications, FPT Industrial is an industry leader in this field. In 2018 a dedicated E-Powertrain team was established to
develop dedicated projects in the e-powertrain field in industrial applications.
Launches. During 2021, FPT Industrial collected a series of product launches and news. In February, the Brand
presented a three-year partnership with Fontanafredda, which includes is the supply of a concept of New Holland
Agriculture TK Methane Power crawler vineyard tractor with biomethane to enable the world’s first zero-emissions
harvest of a Barolo cru. The tractor is fueled FPT Industrial F28 Natural Gas engines and worked in the Vigna La Rosa
cru that produces the grapes for the legendary Barolo of the same name, a wine which has been included in the Wine
Spectator Top 100 of the world’s best wines. In April, during the 19th Shanghai International Automobile Industry
Exhibition, FPT Industrial presented the innovative Cursor 9, Cursor 11, and Cursor 13 engines meeting in advance the
GBVI emission standards that were fully implemented in China, starting from July 1, 2021. The three new engines
unveiled together with SFH fully expressed brand product strength, based on continuous technological development.
The key advancements equipping the Cursor GBVI engines are the Ti-V (Titanium – Vanadium), guaranteeing the
engine to be unstoppable, and the eVGT (Electronically-controlled Variable Geometry Turbocharger) for Cursor 13,
making the GBVI the best choice for heavy duty truck. In the same month, with a global digital launch called “Marine
Virtual Experience”, FPT Industrial presented its further extension of the marine engine line-up for pleasure and
commercial applications, specifically tuned for meeting the requirements of a wider audience. The core of the launch
was the unveiling of the new C90 170 Stage V dedicated to heavy-duty missions and featuring an optimized fuel map
that avoids the need for a urea-based after treatment system. The other highlight was the presentation of the keel
cooling system, a solution for effectively cooling engines operating in sandy, muddy and shallow water, without the risk
of obstructing the seawater filters and damaging the seawater pumps. During the digital presentation FPT Industrial
also showed the N40 170 Stage V and the N67 450 N. Furthermore, the Brand expands its products and services
portfolio offering for USA and Canada customers with the launch of a new and comprehensive line of high-quality, high-
performance lubricants. From October 18 to 23, FPT Industrial took part in EIMA International 2021, the International
Agricultural and Gardening Machinery Exhibition being held in Bologna (Italy). This was the occasion of displaying the
F28 engine in its NG and hybrid versions, together with the N67 NG, the F34 Stage V PowerPack and the N45.
Deliveries. In March, FPT Industrial was chosen as preferred engine supplier by TATA DAEWOO Commercial Vehicles
for the launch of the new “the CEN”, an innovative formula of semi-medium truck designed to make a strong impact on
the domestic South Korean market. In April, in Korea, LS Mtron has become the first Korean tractor manufacturer to
adopt the class-leading F34 Stage V engine from FPT Industrial. Offering 55kW of maximum power at 2200 rpm and
375Nm of torque at 1400 rpm, the F34 Stage V is the driving force behind the new LS Mtron XP7074 Utility class 2 AG
tractor. In the last quarter, Amazon signed an agreement for the supply of 1,064 IVECO S-Way CNG trucks which are
equipped with the Cursor 13 Natural Gas engines. Amazon has already taken delivery of the first batch of 216 units to
be operated by its partners in Europe, and another 848 units are on order with deliveries to start in mid-2022. Built in
the WCM Gold-Level Plant in Bourbon-Lancy (France), FPT Industrial’s Cursor 13 NG engine represents the best low
environmental impact alternative for long-range operations. To be even more close to its customers, FPT Industrial
launched MyFPT, an App for smartphone for all engine users. Clients all around the world can have at their fingertips
data, user's manuals and service schedules for FPT Industrial engines and machinery equipped with the brand's
engines. The App also ensures the status of the power unit in real time (such as the RPM, temperature, consumption,
etc.) and granted assistance with a simple “tap”. In May, the Brand signed two Memoranda of Understanding with Landi
Renzo Group, a leading company in the design, production and distribution of Compressed Natural Gas, Liquefied
Natural Gas and Hydrogen components and systems, with the aim of exploring the possibility of collaborating on Clean
Fuel projects. The Memoranda are focused on the possible development of Natural Gas and Hydrogen technology
respectively.
Prizes and achievements. 2021 was a year of prizes for the Brand. At the beginning of 2021, FPT Industrial received
the Good Design Award for its Cursor X, the innovative Multi-power, Modular, Multi-application and Mindful 4.0 power
source concept. Founded in Chicago in 1950 by Eero Saarinen and Charles and Ray Eames, and currently managed
by The Chicago Athenaeum: Museum of Architecture and Design and The European Centre for Architecture Art Design
Board Report  Business Overview    48
and Urban Studies, Good Design remains the oldest and the world’s most recognized program for design excellence
worldwide. After that, FPT Industrial celebrated the “Sustainable Tractor of the Year 2021” received by the Claas AXION
960 CEMOS. The winning tractor is fitted with the latest generation of FPT Industrial’s Cursor 9 Stage V engine. This 6-
cylinder engine delivers maximum power of 327 kW /460 hp at 1,800 rpm and maximum torque of 1,860 Nm at 1,400
rpm. In July 2021, FPT Industrial and its Bourbon-Lancy plant, France, was awarded with the Gold Medal for the World
Class Manufacturing. The road to the highest honor was built on solid pillars and high knowledge, and key gold points
mentioned were: quality, machining maintenance and karakuri system. The Bourbon-Lancy plant celebrated also the
production of the 10,000th Cursor 13 NG engine, rolling off the line of its line on March 9. Moreover, in October, the
2022 “Tractor of the Year” was given to New Holland T6.180 Methane Power, powered by the FPT Industrial N67 NG
engine; the jury underlined the step forward towards more sustainable farming of the powering system. In the end of the
year, the innovation, sustainability and the design of the Red Horizon was awarded as Gold Winner of the 2021 edition
of the New York Product Design Awards. The jury selected the Red Horizon for the Watercraft Category for successfully
consolidating technology, performance, power and design in a beautiful zero emission powerboat concept.
SALES AND DISTRIBUTION
Agriculture and Construction
Agriculture sells and distributes products through approximately 2,500 full-line dealers and distributors with over 6,500
points of sale. Construction sells and distributes products through approximately 470 full-line dealers and distributors
with over 1,500 points of sale. Agriculture’s and Construction’s dealers are almost all independently owned and
operated. Some Agriculture dealers also sell construction equipment. In the United States, Canada, Mexico, most of
Western Europe, Brazil, Argentina, India, China, Russia, Thailand, Australia, and South Africa products are generally
distributed directly through the independent dealer network. In the rest of the world, products are either sold to
independent distributors who then resell to dealers, or to importers who have their own branches to sell product to retail
customers. In both cases, the importers/distributors can take advantage of their size and knowledge of the market to
minimize their marketing costs.
Consistent with our brand promotion program, we generally seek to have dealers sell a full range of our products.
Typically, greater market penetration is achieved where each dealer sells the full line of products from only one of the
brands. Although appointing dealers to sell more than one brand is not part of our business model, some joint dealers
exist, either for historic reasons or in limited markets where it is not feasible to have a separate dealer for each brand.
In some cases, dealerships are operated under common ownership but with separate points of sale for each brand. In
each region, we seek to optimize our distribution strategy to maximize customer satisfaction and sales while reducing
structural costs.
In North America and Australia, a trade-in of used equipment typically accompanies the sale of new equipment to end-
users. We often provide marketing assistance to our dealers to support the sale of used, trade-in equipment through
subsidized financing incentives, inventory carrying cost defrayment, or other methods.
Exclusive, dedicated dealers generally provide a higher level of market penetration. Some dealers may sell
complementary products manufactured by other suppliers to complete their product offerings or to satisfy local demand
for a particular specialty application or segment.
A strong dealer network with wide geographic coverage is a critical element in the success of Agriculture and
Construction. We work to enhance our dealer network through the expansion of our product lines and customer
services, including enhanced financial services offerings, and an increased focus on dealer support. To assist dealers in
building rewarding relationships with their customers, focused customer satisfaction programs have been introduced
and they are expected to incorporate customer input into the relevant product development and service delivery
processes.
As the equipment rental business becomes a more significant factor in both the agricultural and construction equipment
markets, Agriculture and Construction are continuing to support their dealer network by facilitating sales of equipment to
the local, regional and national rental companies through their dealers as well as by encouraging dealers to develop
their own rental activities. A strong dealer service network is required to maintain the rental equipment, and to help
ensure that the equipment remains at peak performance levels both during its life as rental equipment and afterward
when resold into the used equipment market. Agriculture and Construction have launched several programs to support
their dealer service and rental operations, including training, improved dealer standards, financing, and advertising. As
the rental market is a capital-intensive sector and sensitive to cyclical variations, we expand such activities gradually,
with special attention to managing the resale of rental units into the used equipment market by our dealers, who can
utilize this opportunity to improve their customer base and generate additional parts and service business.
Board Report  Business Overview    49
We believe that it is generally more cost-effective to distribute our agricultural and construction equipment products
through independent dealers, although Agriculture and Construction maintain a limited number of company-owned
dealerships in some markets. As of December 31, 2021, we operated two Agriculture and Construction dealerships in
North America and six company-owned Agriculture and Construction dealerships in Europe. We also operate a
selective dealer development program, in territories with growth potential but underdeveloped representation by our
agricultural and construction equipment brands, that typically involves a transfer of ownership to a qualified operator
through a buy-out or private investment after a few years.
Commercial and Specialty Vehicles
Commercial and Specialty Vehicles’ worldwide distribution strategy is based on a network of independent dealers, in
addition to its own dealerships and branches. As of December 31, 2021, Commercial and Specialty Vehicles had
approximately 670 dealers globally (of which 16 were directly owned by us and 11 were branches). All dealers sell
spare parts for the relevant vehicles. Commercial and Specialty Vehicles bolsters its distribution strategy by offering
incentives to its dealers based on target achievements for sales of new vehicles and parts and providing high quality
aftersales services.
As of December 31, 2021, Commercial and Specialty Vehicles had approximately 5,000 sales and/or service network
points. In addition to Commercial and Specialty Vehicles' standard one-year full vehicle warranty and two-year
powertrain warranty, Commercial and Specialty Vehicles offers personalized aftersales customer assistance programs.
A key element of Commercial and Specialty Vehicles’ growth strategy is its distribution network. In Western Europe,
Eastern Europe, Turkey, Russia, Australia and Latin America, continued consolidation of the distribution network is
aimed at improving service to customers (such as the implementation of the Truck Stations network of specialized
workshops), increasing profitability and reducing overall distribution costs. In Africa and the Middle East, the distribution
network is being expanded to fully exploit growth in these markets.
In the U.K., Commercial and Specialty Vehicles is one of the OEMs that sells trucks and other commercial vehicles to
companies which offer commercial vehicle rental solutions, such as Ryder, Fraikin and Burntree, among others.
Powertrain
Powertrain provides propulsion solution products for Commercial and Specialty Vehicles, Agriculture, and Construction
segments, powertrain generation units and marine applications. Additionally, Powertrain’s commercial strategy and
business model are focused on the development of a portfolio of medium-to-large OEM customers. Powertrain has
entered into long-term supply agreements with a growing number of third-party customers.
At December 31, 2021, Powertrain has a network of approximately 66 distributors and 703 dealers/service points
globally that cover its entire product range and related market sectors. Large OEMs use their own internal networks to
obtain parts and services for purchased equipment, while small OEMs frequently rely on us for delivery of parts and
services through Powertrain’s worldwide network.
PRICING AND PROMOTION
The retail price of any particular piece of equipment or vehicle is determined by the individual dealer or distributor and
generally depends on market conditions, features, options and, potentially, regulatory requirements. Retail sale prices
may differ from the manufacturer-suggested list prices, as a result of different factors (markets' demand, customers'
specific requirements, local market conditions, general economic conditions, access to financing, etc.). We sell most of
our portfolio to our dealers and distributors at wholesale prices that reflect a discount from the manufacturer-suggested
list prices. In the ordinary course of business, we engage in promotional campaigns that may include price incentives or
preferential financing terms with respect to the purchase of products.
We regularly advertise our products to the community of farmers, builders, transporters and agricultural and
construction contractors, as well as to distributors and dealers in each of our major markets. To reach our target
audience, we use a combination of general media, specialized design and trade magazines, the Internet and direct
mail. We also regularly participate in major international and national trade shows and engage in co-operative
advertising programs with distributors and dealers. The promotion strategy for each brand varies according to the target
customers for that brand.
PARTS AND SERVICES
The quality and timely availability of parts and services are important competitive factors for each of our businesses, as
they are significant elements in overall dealer and customer satisfaction and important considerations in a customer’s
original equipment purchase decision. We supply parts, many of which are proprietary, to support items in the current
product line as well as for products we have sold in the past. We also offer personalized aftersales customer assistance
programs that provide a wide range of modular and flexible maintenance and repair contracts, as well as warranty
Board Report  Business Overview    50
extension services, to meet a variety of customers’ needs and to support the vehicle’s value over time. Many of our
products can have economically productive lives of up to 20 years when properly maintained, and each unit has the
potential to produce a long-term parts and services revenue stream for us and our dealers.
As of December 31, 2021 we operated and administered 46 parts depots worldwide either directly, through a joint
venture, or through arrangements with warehouse service providers. This network includes 9 parts depots in North
America, 14 in Europe, 3 in South America, and 20 in Rest of World. The network includes 31 parts depots that support
Agriculture, 27 that support Construction, 19 that support Commercial and Specialty Vehicles and 6 that support
Powertrain. These depots supply parts to dealers and distributors, which are responsible for sales to retail customers.
Our parts depots and parts delivery systems provide customers with access to substantially all the parts required to
support our products.
JOINT VENTURES
As part of a strategy to enter and expand in new markets, we are also involved in several commercial and/or
manufacturing joint ventures. At December 31, 2021, they included the following:
▪in Japan, we own 50.0% of New Holland HFT Japan Inc. (“HFT”), which distributes its products in Japan. HFT
imports and sells the full range of New Holland agricultural equipment;
▪in Pakistan, we own 43.2% of Al Ghazi Tractors Ltd., which manufactures and distributes New Holland tractors;
▪in Turkey, we own 37.5% of Turk Traktor ve Ziraat Makineleri A.S., which manufactures and distributes various
models of both New Holland and Case IH tractors;
▪in Mexico, we own 50.0% of CNH de Mexico S.A. de C.V., which manufactures New Holland agricultural equipment
and distributes our agricultural equipment through one or more of its wholly-owned subsidiaries;
▪in China, we control 60% of SAIC Fiat Powertrain Hongyan Ltd (“SFH”), a manufacturing company located in
Chongqing, which produces diesel engines under license from us to be sold in the Chinese market and to be
exported to Europe, the U.S. and Latin America;
▪in South Africa, we own 60.0% of Iveco South Africa Works (Pty) Ltd., which manufactures medium and heavy-duty
commercial vehicles and buses; and
▪in Germany, we own 50.0% of Nikola Iveco Europe GmbH, which will manufacture cab over battery-electric vehicle
and hydrogen fuel cell electric vehicle trucks, jointly developed by Iveco S.p.A. and Nikola Corporation.
FINANCIAL SERVICES
Financial Services offers a range of financial products and services to dealers and customers in the various regions in
which it operates. The principal products offered are retail loan and lease financing for the purchase or lease of new
and used equipment and vehicles, wholesale financing to dealers and factoring of trade receivables from CNH
Industrial companies. Wholesale financing consists primarily of dealer floor plan financing and gives the dealers the
ability to maintain a representative inventory of new products. In addition, Financial Services provides financing to
dealers for used equipment and vehicles taken in trade, equipment utilized in dealer-owned rental yards, parts
inventory, working capital and other financing needs. As a captive finance business, Financial Services is reliant on and
supports the operations of Agriculture, Construction, Commercial and Specialty Vehicles, and Powertrain, their dealers,
and customers.
Financial Services supports the growth of Industrial Activities by developing and structuring financial products with the
objective of increasing equipment and vehicle sales as well as profitability and customer loyalty. Financial Services’
strategy is to grow a core financing business to support the sale of our equipment and vehicles while at the same time
maintaining its portfolio credit quality, service levels, operational effectiveness and customer satisfaction. Financial
Services also offers products to finance third party equipment and vehicles sold through our dealer network or within
our core businesses. Financed third party equipment and vehicles include used equipment and vehicles taken in trade
on our products or equipment used in conjunction with or attached to our products.
In North America, customer and dealer financing activities, which support the sales of Agriculture and Construction, are
managed through our wholly-owned financial services companies.
In Europe, there are two joint ventures that provide retail financing to customers of Agriculture, Construction, and
Commercial and Specialty Vehicles, depending on the country of origin. CNH Industrial Capital Europe S.a.S., a joint
venture with BNP Paribas Group, is 49.9% owned by CNH Industrial N.V. and accounted for under the equity method,
until the Demerger. Post-Demerger, CNH Industrial N.V. will own 24.95% and Iveco Group will own 24.95%. Transolver
Finance Establecimiento Financiero de Credito S.A. (“Transolver Finance”), a joint venture with the Santander Group, is
49% owned by CNH Industrial N.V. and accounted for under the equity method until the Demerger. Post-Demerger,
Transolver Finance will be part of the Iveco Group. Transolver Finance also provides wholesale financing to dealers.
Additionally, there are vendor programs with banking partners that provide customer financing of Agriculture,
Board Report  Business Overview    51
Construction, and Commercial and Specialty Vehicles, in different countries. Customer and dealer financing activities
not included in the joint ventures or vendor programs, such as factoring of trade receivables, are managed through our
wholly-owned financial services companies until the Demerger. Post-Demerger these activities will be serviced by the
Iveco Group, who will receive a fee for services rendered.
Post-Demerger, in Europe, the Middle East and Africa (EMEA), the Iveco Group Financial Services organization will
provide services to the CNH Industrial Post-Demerger financial services on customer financing and factoring regulated
in a specific Master Service Agreement (Financial Services Master Service Agreement). In Europe, CNH Industrial
Financial Services S.A. (renamed in 2022 as Iveco Capital Financial Services S.A.), a French specialized credit
institution with passporting to operate in main European countries, wholly-owned by Iveco Group, will manage CNH
Industrial Post-Demerger dealer financing through a dedicated securitization. CNH Industrial Capital Solutions S.p.A.
will retain the securitization program junior notes.
For South America, customer and dealer financing activities in Brazil are managed through our wholly-owned financial
services company, Banco CNH Industrial Capital S.A. (“Banco CNH Industrial Capital”), which support the sales of
Agriculture, Construction, and Commercial and Specialty Vehicles. For customer financing, Banco CNH Industrial
Capital mainly serves as a lender for funding provided by BNDES, a federally-owned financial institution linked to the
Brazilian Ministry of Development, Industry and Foreign Trade. In Argentina, customer and dealer financing activities,
which support the sales of Agriculture, Construction, and Commercial and Specialty Vehicles, are managed through a
wholly-owned financial services company. Vendor programs with banking partners are also in place in Argentina.
Post-Demerger, for South America, Banco CNH Industrial Capital S.A. will support and serve sales of Iveco Group with
a Vendor Program. Banco CNH Industrial Capital will continue to serve as a lender for Iveco Group. In Argentina, CNH
Industrial Post-Demerger Financial Services will support and serve sales of Iveco Group with a Vendor Program.
For Rest of World, customer and dealer financing activities in Australia, New Zealand, Russia and India are managed
through wholly-owned financial services companies. In China, dealer financing activities are managed through wholly-
owned financial services companies. Post-Demerger CNH Industrial Financial Services will provide dealer and
customer financing activities for Iveco Group in Australia, New Zealand and Russia. CNH Industrial Financial Services
will continue to provide customer and dealer financing activities for CNH Industrial activities in Australia, New Zealand,
Russia, India and dealer financing activities in China. 
Customer Financing
Financial Services has certain retail underwriting and portfolio management policies and procedures that are specific to
Agriculture, Construction, and Commercial and Specialty Vehicles. This distinction allows Financial Services to reduce
risk by deploying industry-specific expertise in each of these businesses. We provide retail financial products primarily
through our dealers, who are trained in the use of the various financial products. Dedicated credit analysis teams
perform retail credit underwriting. The terms for financing equipment and vehicle retail sales typically provide for
retention of a security interest in the equipment or vehicles financed.
Financial Services’ guidelines for minimum down payments for equipment and vehicles generally range from 5% to 30%
of the actual sales price, depending on equipment types, repayment terms, and customer credit quality. Finance
charges are sometimes waived for specified periods or reduced on certain equipment sold or leased in advance of the
season of use or in connection with other sales promotions. For periods during which finance charges are waived or
reduced on the retail notes or leases, Financial Services generally receives compensation from the applicable Industrial
Activities segment based on Financial Services’ estimated costs and a targeted return on equity. The cost is recognized
as a reduction in net sales for the applicable Industrial Activities segment.
Dealer Financing
Financial Services provides wholesale floor plan financing for nearly all our dealers. This allows them to acquire and
maintain a representative inventory of products. Financial Services also provides financing to dealers for used
equipment taken in trade, equipment utilized in dealer-owned rental yards, parts inventory, working capital, and other
financing needs. For floor plan financing, Financial Services generally provides a fixed period of “interest free” financing
to the dealers. This practice helps to level fluctuations in factory demand and provides a buffer from the impact of sales
seasonality. For the “interest-free” period, the applicable Industrial Activities segment compensates Financial Services
based on Financial Services’ estimated costs and a targeted return on equity. The cost is recognized as a reduction in
net sales for the applicable Industrial Activities segment. After the expiration of any “interest-free” period, interest is
charged to dealers on outstanding balances until Financial Services receives payment in full.
A wholesale underwriting group reviews dealer financial information and payment performance to establish credit lines
for each dealer. In setting these credit lines, Financial Services seeks to meet the reasonable requirements of each
dealer while managing its exposure to any one dealer. The credit lines are secured by the equipment or vehicles
financed. Dealer credit agreements generally include a requirement to repay the particular financing at the time of the
retail sale of the unit. Financial Services leverages employees, third party contractors, and new digital technologies like
“geo-fencing” to conduct periodic stock audits at each dealership to confirm that the financed equipment or vehicle is
Board Report  Business Overview    52
maintained in inventory. These audits are unannounced, and their frequency varies by dealer and depends on the
dealer’s financial strength, payment history, and prior performance.
Factoring
Financial Services also provides intragroup factoring of trade and other receivables. This activity involves the purchase
(without recourse) of receivables of CNH Industrial companies, originating from the different Industrial Activities
segments, and due from third or related parties.
Sources of Funding
The long-term profitability of Financial Services’ activities largely depends on the cyclical nature of the industries in
which we operate, interest rate volatility, and the ability to access funding on competitive terms. Financial Services
funds its operations and lending activity through a combination of term receivable securitizations, committed secured
and unsecured facilities, uncommitted lines of credit, unsecured bonds, unsecured commercial paper, affiliated
financing, and retained earnings. Financial Services’ current funding strategy is to maintain sufficient liquidity and
flexible access to a wide variety of financial instruments and funding options.
Financial Services has periodically accessed the asset-backed securities (“ABS”) markets in the United States,
Canada, and Australia, as part of its retail and wholesale financing programs when those markets offer funding
opportunities on competitive terms. Financial Services has also accessed the unsecured bond market in the United
States, Brazil, Argentina and Australia and commercial paper markets in the United States and France to diversify its
funding sources. Financial Services’ ability to access these markets will depend, in part, upon general economic
conditions and Financial Services’ financial condition and portfolio performance. These factors can be negatively
affected by cyclical swings in the industries in which we operate.
Competition
The financial services industry is highly competitive. Financial Services competes primarily with banks, equipment
finance and leasing companies and other financial institutions. Typically, this competition is based upon the financial
products and services offered, customer service, financial terms, and interest rates charged. Financial Services’ ability
to compete successfully depends upon, among other things, the availability and competitiveness of funding resources,
the development of competitive financial products and services, and licensing or other governmental regulations.
LEGAL PROCEEDINGS
As a global company with a diverse business portfolio, CNH Industrial in the ordinary course of business is exposed to
numerous legal risks, including, without limitation, dealer and supplier litigation, intellectual property right disputes,
product warranty and defective product claims, product performance, asbestos, personal injury, emissions and/or fuel
economy regulatory and contractual issues, competition law and other investigations and environmental claims. The
most significant of these matters are described in Note 27 “Commitments and contingencies” to the Consolidated
Financial Statements for the year ended December 31, 2021.
The outcome of any current or future proceedings, claims, or investigations cannot be predicted with certainty. Adverse
decisions in one or more of these proceedings, claims or investigations could require CNH Industrial to pay substantial
damages or fines or undertake service actions, recall campaigns or other costly actions. It is therefore possible that
legal judgments could give rise to expenses that are not covered, or not fully covered, by insurers’ compensation
payments and could affect CNH Industrial’s financial position and results. When it is probable that an outflow of
resources embodying economic benefits will be required to settle obligations and this amount can be reliably estimated,
CNH Industrial recognizes specific provisions for this purpose.
Although the ultimate outcome of legal matters pending against CNH Industrial and its subsidiaries cannot be predicted,
management believes the reasonable possible range of losses for these unresolved legal matters in addition to the
amounts accrued would not have a material effect on our Consolidated Financial Statements.
Follow-up on Damages Claims: in 2011 Iveco S.p.A. ("Iveco"), which, following the Demerger, is now part of Iveco
Group N.V., and its competitors in the European Union were subject to an investigation by the European Commission
(the “Commission”) into certain business practices in the European Union (in the period 1997-2011) in relation to
Medium & Heavy trucks. On July 19, 2016, the Commission announced a settlement with Iveco ("the Decision").
Following the Decision, the Company, Iveco and Iveco Magirus AG ("IMAG") have been named as defendants in
proceedings across Europe. The consummation of the Demerger will not allow CNH Industrial to be excluded from
current and future follow on proceedings originating from the Decision because under EU competition law a company
cannot use corporate reorganizations to avoid liability for private damage claims. In the event one or more of these
judicial proceedings would result in a decision against CNH Industrial ordering it to compensate such claimants as a
result of the conduct that was the subject matter of the Decision, and Iveco and IMAG does not comply with such
decisions, as a result of various intercompany arrangements, then CNH Industrial will ultimately have recourse against
Iveco and IMAG for the reimbursement of the damages effectively paid to such claimants. The extent and outcome of
these claims cannot be predicted at this time.
Board Report  Business Overview    53
FPT Emissions Investigation: on July 22, 2020, a number of CNH Industrial's offices in Europe were visited by
investigators in the context of a request for assistance by the public prosecutors of Frankfurt am Main, Germany and
Turin, Italy in relation to alleged noncompliance of two engine models produced by FPT Industrial S.p.A. ("FPT"), which
is now part of the Iveco Group N.V., installed in certain Ducato (a vehicle distributed by Stellantis) and Iveco Daily
vehicles. FPT is providing its full cooperation to properly address the requests received. FPT, other companies of Iveco
Group, and in certain instances CNH Industrial and other third parties have received various requests for compensation
by German and Austrian customers on various contractual and tort grounds, including requests for damages resulting
out of the termination of the purchase contracts, or in the form of requests for an alleged lower residual value of their
vehicles as a consequence of the alleged non-compliance with type approval regulations regarding emissions. In
certain instances, other customers have brought judicial claims on the same legal and factual bases. Although, at the
date hereof, the Company has been informed by the Iveco Group that it has no evidence of any wrongdoing, it cannot
predict at this time the extent and outcome of these requests and directly or indirectly related legal proceedings,
including customer claims or potential class actions alleging emissions non-compliance. 
INSURANCE
We maintain insurance with third party insurers to cover various risks arising from our business activities including, but
not limited to, risk of loss or damage to our assets or facilities, business interruption losses, general liability, automobile
liability, product liability and directors' and officers' liability insurance. We believe that we maintain insurance coverage
that is customary in our industry. We use a broker that is a subsidiary of Stellantis N.V. ("Stellantis", formerly Fiat
Chrysler Automobiles N.V. which, effective January 16, 2021, merged with Peugeot S.A. by means of a cross-border
legal merger) to place a portion of our insurance coverage.
PLANTS AND MANUFACTURING PROCESSES
As of December 31, 2021, we owned 70 manufacturing facilities. We also own other significant properties including
spare parts depots, research laboratories, test tracks, warehouses, and office buildings.
We make capital expenditures in the regions in which we operate principally related to initiatives to introduce new
products, enhance manufacturing efficiency and improve capacity, and for maintenance and engineering. In 2021, our
total capital expenditures in long-lived assets, excluding assets sold with buy-back commitments and equipment on
operating leases, were $1,189 million of which 74% was spent in Europe, 15% in North America, 6% in South America
and 5% in Rest of World, respectively. These capital expenditures were funded through a combination of cash
generated from operating activities and borrowings under short-term facilities. In 2020, our total capital expenditures
were $848 million. 2021, capital expenditures were higher than in 2020 as expenditures returned to more normal levels
from the pandemic-affected low levels experienced last year.
Board Report  Business Overview    54
The following table provides information about our manufacturing and engineering facilities for Continuing Operations
as of December 31, 2021:
Italy
Bagno di Romagna
Earthmoving machines
40
Jesi
Tractors
77
Lecce
Wheel loaders, compact track loaders, telehandlers; graders; R&D center
130
Modena
Components (Agriculture and Construction)
102
S. Matteo
R&D center (Agriculture)
51
United States
Benson
Sprayers, cotton pickers; R&D center
41
Burlington
Backhoe loaders, forklift trucks; R&D center
91
Burr Ridge (Hinsdale)
R&D center (Agriculture, Construction and Diesel engines)
44
Fargo
Tractors, wheeled loaders; R&D center
88
Goodfield
Soil management equipment; R&D center
39
Grand Island
Tractors and combines
128
Mt. Joy
R&D center (Agriculture)
11
Mt. Vernon
Tracks; R&D center
7
New Holland
Hay & Forage; R&D center
104
Racine
Tractors, transmissions
105
Sioux Falls
Ag Assembly Mfg, Repair Shop, Training and R&D center
20
St. Nazianz
Self-propelled sprayers
24
Wichita
Skid steer loaders; R&D center
46
France
Coex
Grape Harvesters; R&D center
26
Croix
Cabins (Agriculture)
12
Tracy-Le-Mont
Hydraulic cylinders (Agriculture and Construction)
16
Brazil
Belo Horizonte
Crawler excavators, crawler dozers, wheel loaders, graders, backhoe loaders;
R&D center
70
Curitiba
Combines and tractors; R&D center
117
Piracicaba
Sugar cane harvesters, coffee harvesters, sprayers; R&D center
20
Sorocaba
Combines and other Agriculture; R&D center
188
China
Harbin
Combines, tractors, balers; R&D center
121
Urumqi
Cotton pickers
10
Belgium
Antwerp
Components (Agriculture)
77
Zedelgem
Combines, forage harvesters and balers; R&D center
154
India
Noida
Tractors; R&D center
92
Pithampur
Backhoe loaders, earth compactors, crawler excavator; R&D center
45
Pune
Sugar cane harvesters and combines; R&D center
77
Poland
Kutno
Row crop, cultivators, harvesters; R&D center
33
Plock
Combines, balers and headers; R&D center
129
Others
Cordoba (Argentina)
Tractors and combines
30
St. Valentin (Austria)
Tractors; R&D center
53
Cowra (Australia)
Tillage; R&D center
6
Saskatoon (Canada)
Sprayers, seeders; R&D center
61
Queretaro (Mexico)
Components (Agriculture and Construction)
15
Naberezhnye Chelny (Russia)
Tractors and combines
50
Wieringerwerf (Netherlands)
Ag Assembly Mfg
2
Location
Primary Functions
Approximate
Covered Area
(Sqm/000)
Board Report  Business Overview    55
Överum (Sweden)
Ploughs; R&D center
49
Basildon (United Kingdom)
Tractors; R&D center
129
Location
Primary Functions
Approximate
Covered Area
(Sqm/000)
The following table provides information about our manufacturing and engineering facilities for Discontinued Operations
as of December 31, 2021:
Italy
Brescia
Medium vehicles, cabs, chassis; R&D center
276
Brescia
Firefighting vehicles; R&D center
28
Bolzano
Defense vehicles; R&D center
83
Foggia
Engines; drive shafts; R&D center
151
Piacenza
Quarry and construction vehicles; R&D center
64
Suzzara
Light vehicles; R&D center
170
Torino
Transmissions and axles
239
Torino
Engines
142
Torino
R&D center (Commercial and Specialty Vehicles)
41
Torino
R&D center (Powertrain)
28
France
Annonay
Buses (Coaches & City); R&D center
114
Bourbon Lancy
Engines; R&D center
107
Fecamp
Engines (power generation units)
16
Fourchambault
Engines (remanufacturing)
24
Rorthais
Buses (City); R&D center
29
Venissieux
R&D center (Commercial and Specialty Vehicles)
17
Brazil
Sete Lagoas
Heavy, medium and light vehicles; R&D center
160
Sete Lagoas
Defense vehicles
19
Sete Lagoas
Engines; R&D center
1
Germany
Ulm
Firefighting vehicles; R&D center
92
Ulm
R&D center (Commercial and Specialty Vehicles)
45
China
Chongqing
Engine; R&D centers
76
Chongqing
ATS plant
4
Shanghai
R&D center (Powertrain)
—
Argentina
Cordoba
(Medium/Heavy) Trucks and buses; R&D center
94
Cordoba
Engines
20
Spain
Madrid
Heavy vehicles; R&D center
134
Valladolid
Light vehicles, heavy cab components
81
United Kingdom
Coventry
R&D center (Powertrain)
1
Shoream-by-Sea
R&D center (Powertrain)
—
Others
Dandenong (Australia)
Trucks (heavy); R&D center
42
Vysoke Myto (Czech Republic)
Buses (City & Intercity); R&D center
125
Gwangju (South Korea)
R&D center (Powertrain)
—
Arbon (Switzerland)
R&D center (Powertrain)
6
Burr Ridge (United States)
R&D center (Diesel engines)
1
Location
Primary Functions
Approximate
Covered Area
(Sqm/000)
Board Report  Business Overview    56
World Class Manufacturing
In striving to consolidate and maintain high standards of excellence in its manufacturing systems, CNH Industrial
applies principles of World Class Manufacturing (“WCM”), the innovative program for continuous improvement that
encompasses the most effective manufacturing methodologies. These include: Total Quality Control (“TQC”), Total
Productive Maintenance (“TPM”), Total Industrial Engineering (“TIE”), and Just In Time (“JIT”). Applying rigorous
methods and procedures, WCM aims to eliminate all types of waste and loss, including zero injuries, zero defects, zero
breakdowns, zero waste, reduced inventories, and punctual delivery of parts by suppliers to plants, and thereafter to
dealers and end users. The WCM system is applied to all departments, embracing numerous topics including safety in
the workplace, the environment, quality, logistics, in-house and specialist maintenance, human resources, and process
and product engineering (involving the reorganization of work stations, the installation of new machinery, and new
product launches). Actions for continuous improvement are driven by the Cost Deployment pillar of WCM, which
precisely identifies all plant wastes and losses, guides the activities of the corporate functions in charge of containing
and eliminating the sources of waste, evaluates project feasibility, and assesses and certifies the results achieved by
carefully monitoring specific performance indicators.
One of the main features of WCM is the way it incentivizes employees to engage and take responsibility, contributing
directly to process optimization through a consistent system for collecting suggestions. This allows individuals to
acquire and develop skills and good practices that are then shared across plants, forming a network of expertise and
knowledge for the benefit of the Group. In 2021, approximately 464,000 suggestions were collected across the plants
where WCM principles are applied, with an average of 12.2 per employee. The projects implemented in 2021 within
WCM generated savings of approximately $36.8 million.
Each WCM pillar involves a seven-step approach and auditing process, culminating in several awards (bronze, silver,
gold, and world class). As of December 31, 2021, 51 plants were participating in the program, representing 99% of
revenues from sales of products manufactured in Group’s plants. By the end of 2021, 3 plants have gold awards, 16
plants have silver awards and 25 plants have bronze awards.
Environmental impacts of manufacturing processes
The Group’s manufacturing facilities are subject to a variety of laws designed to protect the environment, particularly
with respect to solid and liquid wastes, air emissions, energy usage and water consumption. CNH Industrial is
committed to continuously improving the environmental performance of its manufacturing processes, beyond the
requirements of legislation, adopting the best technologies available and acting responsibly to preserve natural
resources and to fight climate change. These are important priorities due to the nature and extent of their environmental
and economic impact, and highlighted by their political, technological, and economic implications, in terms of both
sustainable procurement and impact mitigation. Environmental protection at CNH Industrial is focused on prevention,
conservation, information, and people engagement, thus facilitating long-term management. CNH Industrial has
adopted an Environmental Policy that describes the short, medium, and long-term commitments toward responsible
management of environmental aspects, such as: energy, natural resources, raw materials, hazardous substances,
polluting emissions, waste, natural habitats, and biodiversity.
These aspects are included in CNH Industrial's environmental management system and energy management system
and in the environmental pillar of WCM; the systems require compliance with guidelines, procedures, and operating
instructions, and regular internal audits and reviews by management. This dual approach facilitates the effective
management of all environmental aspects deriving from manufacturing processes, the adequate evaluation of
outcomes and the achievement of challenging targets set within the Sustainability Plan.
The materiality analysis identified air emissions (covered by the material topic CO2 and other air emissions), the use of
renewable energy, the consumption of water, and the management of waste as the most significant environmental
aspects for both the Company and its stakeholders.
The highest responsibility for initiatives focusing on energy efficiency, management of CO2 emissions and
environmental protection lies with the SLT.
Receipt of a certification for environmental or energy management confirms that an organization has a system capable
of keeping the impacts of its operations under control, and that it systematically seeks to improve this system in a way
that is coherent, effective and, above all, sustainable. The participation in the ISO 14001 and ISO 50001 certification
process is on a voluntary basis. As of December 31, 2021, 58 plants were ISO 14001 certified, while ISO 50001 energy
management systems were implemented in 54 plants, representing about 99.9% of energy consumption.
Consolidated monitoring and reporting systems are used to keep track of environmental performance, measure the
effectiveness of actions taken to achieve targets, and plan new initiatives for continuous improvement, through the
management of appropriate Key Performance Indicators (KPIs). These indicators can be analyzed at different
aggregate levels (plant, segment, geographic region, or Group), which allows for the simultaneous and parallel
engagement of different corporate functions at various levels to meet targets.
Board Report  Business Overview    57
In 2021, the main environmental KPIs maintained the positive trend recorded in recent years, in line with the targets set
in the Sustainability Plan, reconfirming CNH Industrial’s significant commitment to environmental protection.
Environmental and energy targets
Target year
Target
Energy consumption (GJ per hour of production)
2030
-30% vs 2014
CO2 emissions (tons per hour of production)
2024
-50% vs 2014
2030
-60% vs 2014
Electric energy consumption from renewable sources (%)
2024
80
2030
90
VOC emissions (g/m2)
2022
-27% vs 2014
Water withdrawals (m3 per hour of production)
2022
-24% vs 2014
Hazardous waste generation (kg per hour of production)
2022
-36% vs 2014
Waste recovered (%)
2024
95%
Environmental and energy performance(1)
2021/2020(%)
2021
2020
Energy consumption (GJ per hour of production)
-8.5%
0.08610
0.09415
CO2 emissions (tons per hour of production)
-12.7%
0.00408
0.00467
Electric energy consumption from renewable sources (%)
74.9
72.0
VOC emissions (g/m2)
-6.3%
39.9
42.5
Water withdrawals (m3 per hour of production)
-13.6%
0.065
0.075
Hazardous waste generation (kg per hour of production)
-15.6%
0.22
0.26
Waste recovered (%)
95.1
93.9
(1)Environmental performance relates to 54 fully consolidated plants, representing 99.5% of revenues from sales of products manufactured in Group’s
plants. Energy performance relates to 55 fully consolidated plants, representing 99.7% of revenues from sales of products manufactured in Group’s
plants.
CO2 emissions were calculated according to GHG Protocol standards, implemented through CNH Industrial guidelines. The indicator includes scope
1 and scope 2 emissions, as per the market-based methodology of the GHG Protocol.
The hours of production refer to the number of manufacturing hours, defined as hours of presence of hourly employees within the manufacturing
scope required to manufacture a product.
The performance of the indicators is in line with the targets set.
CNH Industrial’s expenditure on environmental protection measures totaled approximately $48 million in 2021 and
included: approximately $35 million on waste disposal and emissions treatment and almost $13 million on prevention
and environmental management. In 2021, about $7.1 million was invested in improving energy performance, leading to
a reduction in energy consumption of approximately 173 TJ and a corresponding reduction in CO2 emissions of over
12,000 tons.
Numerous projects were implemented in 2021 to optimize environmental and energy management. For example, the
plant in Sankt Valentin (Austria) modified the paint mist extraction method within its driveline painting process, switching
its separation system from wet to dry. In addition to reducing hazardous waste by 33 tons and the paintshop’s water
consumption by 56 cubic meters, the conversion generated a total of approximately $74,400 in savings on separation
system maintenance and waste disposal costs.
SUPPLIERS
CNH Industrial adopts a responsible approach to the management of its supply chain, establishing relationships that go
beyond commercial transactions, fostering long-lasting and mutually satisfying collaborations with qualified partners that
share the Group’s principles. CNH Industrial has adopted the Supplier Code of Conduct that provides the framework for
responsible supply chain management. In addition to compliance with local legislation, the Supplier Code of Conduct
calls for observance of human rights and working conditions, respect for the environment, and business ethics. All
suppliers carrying on business with CNH Industrial are deemed to agree and accept the contents of the Supplier Code
of Conduct and such agreement and acceptance is evidenced by the supplier continuing to do business with CNH
Industrial.
At December 31, 2021, CNH Industrial had approximately 4,142 global direct materials suppliers.
CNH Industrial’s standards of environmental and social responsibility have been fully integrated into its supply chain
management. Supplier selection is an operational phase of the procurement process and is regulated by specific
procedures. Supplier selection is based not only on cost, product innovation, production flexibility, and the quality and
competitiveness of their products and services, but also on their compliance with CNH Industrial’s social, ethical and
environmental principles. The assessment process is built on objective criteria and tools aimed at ensuring fairness and
equal opportunities for all parties involved.
Board Report  Business Overview    58
Furthermore, to assess whether suppliers meet the sustainability standards set by CNH Industrial and, where
necessary, take steps towards improvement and realignment, a monitoring process has been designed and
implemented. During the first step of the process, suppliers are requested to self-assess their policies and practices on
sustainability through a questionnaire, mainly focused on the following issues: human rights, environment, compliance
and ethics, diversity, and health and safety. The questionnaires are analyzed and used to perform a risk assessment,
which allows the Company to identify critical suppliers whose compliance with sustainability criteria requires
assessment, through follow-up, on-site audits. The audits are performed at suppliers’ plants by either CNH Industrial
Supplier Quality Engineers (SQEs) or independent external auditors. In 2021, 1,389 suppliers completed the
questionnaire and 95 audits were performed remotely. The analysis of the results highlighted the widespread
implementation of sustainability initiatives, with a significant number of suppliers adopting their own social and
environmental systems, setting specific targets and drafting periodic reports. In some cases, corrective action plans for
areas in need of improvement were formulated in collaboration with suppliers; they are monitored through follow-up
discussions and meetings between supplier and auditor. The monitoring process is considered also as a way to
promote continuous improvement along the supply chain.
Continuous improvement is also seen in WCM Purchasing, which has continued providing its advice to suppliers
intending to implement the WCM system. As at December 31, 2021, the total number of supplier plants that had
adopted the World Class Manufacturing ("WCM") program was 220. This means they now apply what is considered to
be one of the world’s leading set of manufacturing standards.
In addition, another important supplier engagement activity carried out in 2021, the CDP Supply Chain initiative,
concerns the mitigation of environmental impacts. In keeping with the previous year, 125 suppliers were selected to fill
out the CDP questionnaire, to get a clear picture of their strategies to tackle climate change and of their current, or still
to be implemented, initiatives to reduce CO2 emissions.
Moreover, CNH Industrial has implemented a compliance program and policy intended to promote responsible sourcing
of tin, tantalum, tungsten, and gold (“3TG”) from the Democratic Republic of Congo (DRC) and surrounding region
(conflict minerals), where revenues from the extraction of natural resources have historically funded armed conflict and
human rights abuses. CNH Industrial’s Conflict Minerals Policy was adopted in 2013 and is available on the Company
website. The Policy is intended to promote sourcing 3TG from responsible sources in the Democratic Republic of
Congo and surrounding region. The Company annually performs its supply chain due diligence consistent with OECD
guidelines. CNH Industrial is committed to making reasonable efforts to establish, and to require each supplier to
disclose, whether 3TG are used or contained in products purchased by the Company and the source of that 3TG.
Board Report  Business Overview    59
RESEARCH AND DEVELOPMENT
In a continuously and rapidly changing competitive environment, CNH Industrial’s research activities are a vital
component of its long-term growth strategy. Each year the Company makes substantial investments in research and
development. Such continuous investment and development activities are critically important to the continuing success
of the Group.
Research and development times are reduced, where possible, to accelerate time-to-market, while taking advantage of
specialization and experience in different markets. Technical and operational synergies and rapid technical
communication form the basis of our research and development process. CNH Industrial’s innovation process consists
of a series of clear-cut steps, from the evaluation of innovative concepts up to the final step before production. CNH
Industrial believes innovation is essential to offering customers highly technological, eco-friendly, safe, and ergonomic
products with a low Total Cost of Ownership (“TCO”).
In this spirit, research activities focus primarily on the development of products that can: reduce polluting and CO2
emissions; use biofuels; adopt electric and hydrogen traction systems; incorporate advanced precision farming
functionality and autonomous driving. For this reason, the Company’s research and development activities focus mainly
on: efficient diesel engines, decarbonization, digitalization, and automation.
In 2021, our expenditure on research and development (including capitalized development costs and costs charged
directly to operations during the year) totaled $1,249 million, or 3.7% of net revenues from Industrial Activities.
Research and development activities involved approximately 6,100 employees at 59 sites (30 sites related to
Continuing Operations and 29 sites related to Discontinued Operations) around the world of which approximately 900
employees were located at 13 sites in emerging countries(1).
The following table shows our total research and development expenditures, including capitalized development costs
and costs charged directly to operations during the year, by segment for the years ended December 31, 2021 and
2020:
($ million)
2021
2020
Agriculture
560
426
Construction
86
76
Commercial and Specialty Vehicles
417
297
Powertrain
186
151
Other Activities
—
—
Total of Industrial Activities
1,249
950
Financial Services
—
—
Eliminations
—
—
Total
1,249
950
We own a significant number of patents, trade secrets, and trademarks related to our products and services, and that
number is expected to grow as our research and development activities continue. At year end, we had 14,647 active
patents (in addition to 3,935 applications pending). We file patent applications in Europe, the United States and in other
jurisdictions around the world to protect technology and innovations considered important to our businesses. Certain
trademarks contribute to our identity and the recognition of our products and services are an integral part of our
business, and their loss could have a material adverse effect on our financial results.
(1) Emerging Markets are defined as low, lower-middle or upper-middle income countries as per the World Bank list of economies as at June 2020.
Board Report  Research and Development   60
HUMAN RESOURCES
EMPLOYEES
The ability to attract, retain, and further develop qualified employees is crucial to the success of CNH Industrial’s
businesses and its ability to create value over the long-term. CNH Industrial’s business is, by its nature, labor intensive
and this is reflected in the high number of Group hourly employees.
The following tables show the breakdown of the number of employees by segment and by region at December 31,
2021 and 2020:
2021
2020
(number)
Continuing
Operations
Discontinued
Operations
CNHI Pre-
Demerger
Continuing
Operations
Discontinued
Operations
CNHI Pre-
Demerger
Agriculture
31,103
—
31,103
25,162
—
25,162
Construction
5,770
—
5,770
5,173
—
5,173
Commercial and Specialty
Vehicles
—
25,332
25,332
—
24,230
24,230
Powertrain
—
8,213
8,213
—
8,197
8,197
Other Activities
70
66
136
68
68
136
Total of Industrial Activities
36,943
33,611
70,554
30,403
32,495
62,898
Financial Services(*)
820
521
1,341
649
469
1,118
Total
37,763
34,132
71,895
31,052
32,964
64,016
(*)  Starting from 2021, Financial Services includes Capital staffs.
2021
2020
(number)
Continuing
Operations
Discontinued
Operations
CNHI Pre-
Demerger
Continuing
Operations
Discontinued
Operations
CNHI Pre-
Demerger
Europe
14,111
29,151
43,262
13,056
28,615
41,671
North America
11,181
63
11,244
7,985
63
8,048
South America
7,936
3,606
11,542
6,058
2,842
8,900
Rest of World
4,535
1,312
5,847
3,953
1,444
5,397
Total
37,763
34,132
71,895
31,052
32,964
64,016
As of December 31, 2021, CNH Industrial had 71,895 employees, an increase of 7,879 from the 64,016 employees at
year-end 2020. The change was mainly attributable to the difference between new hires (approximately 13,000) and
departures (approximately 7,300) during the year. A further increase of approximately 2,100 employees was due to
changes in the scope of the operations, mainly related to the acquisitions of Raven Industries Inc. in the U.S.,
Sampierana S.p.A. in Italy and of four divisions of Capital Equipment Group in South Africa. Raven Industries, a leader
in the precision agriculture technology, will significantly improve CNH Industrial’s competitive position and will add
strong innovation capabilities to accelerate our precision and digital strategy. Sampierana is a company specializing in
the development, manufacture and commercialization of earthmoving machines, undercarriages and spare parts.
Sampierana’s portfolio solidifies our presence in critical market segments and provides our dealers and customer
access to industry-leading products backed by our brand, distribution, and manufacturing experience. Capital
Equipment Group transaction enables CNH Industrial to expand its direct distribution network of Case IH Agriculture,
Case Construction Equipment and aftermarket services in Southern Africa, and drives continuous development of new
and improved services for our customer in the region. Excluding the changes in the scope of operations, the increase
compared to year-end 2020 is attributable mainly to the hiring of fixed-term and open-term workers in manufacturing
due to the production volumes increase driven by strong demand in the market, primarily in the Agriculture segment in
South America, North America and Europe, in the Construction segment in South America and North America and in
the Commercial and Specialty Vehicles mainly in South America and, to a lesser extent, in Europe. Moderate increase
in Research and Development personnel to strengthen the pool of skills and competencies in view of technology
Board Report Human Resources      61
transitions, particularly electrification, autonomous driving, alternative propulsion solutions, digitalization and cloud web
based software technologies.
As stated in CNH Industrial's Code of Conduct, occupational health and safety is an employee's fundamental right and
a key part of Group’s sustainability model and included in the Materiality Matrix as one of the most material topics for
CNH Industrial and its stakeholders. Safety management engages all employees in creating a culture of accident
prevention and risk awareness, sharing common occupational health and safety ethical principles to achieve
improvement targets. One of the initiatives developed by CNH Industrial is an effective health and safety management
system that conforms to ISO 45001 international standard. As demonstration of the Group's commitment in this area,
58 plants are ISO 45001 certified. In 2021, approximately $131.3 million was spent on improving health and safety
protection. The investments in health and safety allowed, as an additional benefit, savings on the insurance premiums
paid to the Italian National Institute for Insurance against Accidents at Work (INAIL) for a total of approximately $1.8
million in 2021. To achieve the challenging targets that the Group has set, all employees are involved in informational
activities and in classrooms and hands-on training consistent with their roles and responsibilities. CNH Industrial
provided 412,820 hours of training on occupational health and safety in 2021. Approximately 43,400 employees were
engaged in training on the job activities on occupational health and safety, 81.9% of whom were hourly. Owing to the
Group’s many initiatives, the overall employee injury frequency rate in 2021 was 1.725 injuries per 1,000,000 hours
worked, a 11.3% decrease compared to the previous year. The target set for 2024 is to reduce by 50% the employee
injury frequency rate compared to 2014 data.
The Group realizes that the nature of today’s socio-economic context calls for leaders with the ability to evolve and
develop. A solid people management process is the key to success, as it includes employees in the formulation of the
Group’s business goals, takes advantage of employee talent and fuels workforce motivation. CNH Industrial is
committed to supporting its employees with development opportunities and recognizing and rewarding their
achievements and contribution to business results. In 2021, CNH Industrial spent approximately $1.9 million on
employee training. In total, 1,041,982 training hours were provided to 43,036 individuals. The target set for 2022 is to
engage 100% of employees worldwide in training activities.
As evidenced by the materiality analysis, both employee engagement in sustainability matters and digital workplaces
are key contributors to being a more sustainable Company. These material topics affect, both directly and indirectly,
how employees adapt their approach to the changing workplace environment. Employee engagement, leveraged to
increase employee awareness of sustainability topics (especially in terms of environmental protection, health and
proper nutrition, and food security and waste), plays an important role in reaching the Company’s goals, as reflected in
the targets set in terms of training, employee volunteering, and wellbeing initiatives promoting healthy lifestyles. As
regards digital workplaces, the Company promotes the use of new technologies to improve work quality and efficiency,
employee work-life balance (remote work), and the exchange of information, in part to foster innovation.
DIVERSITY AND INCLUSION
The Company rejects all forms of discrimination that is based on race, ethnicity, gender, sexual orientation, personal or
social status, health, physical condition, disability, age, nationality, religious or personal beliefs, political opinion or
against any other protected group.
The responsibility for diversity and inclusion ("D&I") lies primarily with the Senior Leadership Team ("SLT"), committed
to creating a truly diverse and inclusive workplace where everyone benefits from equal opportunities based on their
abilities and skills. Offering career and advancement opportunities free from discrimination while encouraging and
respecting diversity are among the commitments emphasized in CNH Industrial’s Human Capital Management
Guidelines and Human Rights Policy, available on the Company’s website and Intranet portal.
The Human Resources (HR) head of each segment/function collaborates with Business Management to ensure that, in
every aspect of the employment relationship - be it recruitment, training, compensation, promotion, or relocation -
employees are treated on the basis of their ability to meet the requirements of the job.
The Senior Leadership Team proved its full engagement and determination to champion the issue by signing the D&I
Commitment Statements, rejecting any form of discrimination, and pledging to create an environment where everyone
benefits from equal opportunities based on their abilities and skills.
COLLECTIVE BARGAINING
In the United States, unions represent a small portion of our production and maintenance employees. The collective
bargaining agreement with the United Automobile, Aerospace and Agricultural Implement Workers of America, which
represents approximately 950 hourly production and maintenance employees in Burlington, Iowa and Racine,
Wisconsin, continues through April 30, 2022. The collective bargaining agreement with the International Association of
Machinists and Aerospace Workers, which represents approximately 600 of our employees in Fargo, North Dakota,
continues through April 28, 2024.
Board Report Human Resources      62
In Europe, most employees are covered by collective labor agreements (“CLAs”) stipulated either by a CNH Industrial
subsidiary or by the employer association for the specific industry which the CNH Industrial subsidiary belongs to.
In Italy, approximately 16,800 CNH Industrial employees are covered by the CLA that continues through December 31,
2022 and approximately 440 CNH Industrial managers are covered by the 2016 CLA extended on October 21, 2020
until December 31, 2022. The approximately 210 employees and 8 managers of Sampierana S.p.A., whose 90% of
capital stock was purchased on December 30, 2021 by CNH Industrial, are covered, respectively, by the National CLA
of Metal Industry and by the National CLA for managers of the Metal Industry.
Board Report Human Resources      63
OPERATING AND FINANCIAL REVIEW
AND PROSPECTS
INTRODUCTION
The results presented in this Annual Report are prepared in accordance with EU-IFRS and use the U.S. dollar as the
presentation currency.
On November 30, 2021, CNH Industrial completed its acquisition of Raven Industries, Inc., (“Raven”) a U.S.-based
leader in precision agriculture technology. Furthermore, on December 30, 2021, CNH Industrial completed the purchase
of 90% of the capital stock of Sampierana S.p.A., a construction equipment company based in Italy. Financial
information included in this Annual Report reflects the consolidation, on a line-by-line basis, of the preliminary fair value
of acquired assets and liabilities of both companies, with no material impacts on 2021 net income and free cash flow of
Industrial Activities.
ALTERNATIVE PERFORMANCE MEASURES (OR “NON-GAAP FINANCIAL MEASURES”)
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 to 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 EU-
IFRS or U.S. GAAP 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 EU-IFRS or U.S. GAAP.
As of December 31, 2021, CNH Industrial's non-GAAP financial measures are defined as follows:
▪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. 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 U.S. GAAP: is derived from financial information prepared in accordance
with U.S. GAAP and 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.
▪Adjusted Diluted EPS under U.S. GAAP: is derived from financial information prepared in accordance with U.S.
GAAP and 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 an 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.
▪Net Cash (Debt) and Net Cash (Debt) of Industrial Activities under EU-IFRS: Net Cash (Debt) is defined as total Debt
plus Derivative liabilities, net of Cash and cash equivalents, Current securities, Derivative assets and other current
financial assets (primarily current securities, short-term deposits and investments towards high-credit rating
counterparties). We provide the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly
comparable GAAP financial measure included in our consolidated statement of financial position. 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 Cash (Debt) of
Industrial Activities.
▪Net Cash (Debt) and Net Cash (Debt) of Industrial Activities under U.S. GAAP: are derived from financial information
prepared in accordance with U.S. GAAP. Net Cash (Debt) under U.S. GAAP 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.
▪Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow) under EU-IFRS: refers to Industrial Activities,
only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of
Board Report    Operating and Financial Review and Prospects    64
Financial Services; investments of Industrial Activities in property, plant and equipment and intangible assets; as well
as other changes and intersegment eliminations.
▪Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow) under U.S. GAAP: 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 under IFRS: is defined as cash and cash equivalents (including 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: we discuss 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.
Iveco Group Business Spin-off
During 2021, CNH Industrial completed a strategic project to separate the Commercial and Specialty Vehicles business,
the Powertrain business, and the related Financial Services business (together the “Iveco Group Business”) from the
Agriculture business, the Construction business, and the related Financial Services business.
The Iveco Group Business was separated from CNH Industrial N.V. in accordance with Section 2:334a (3) of the Dutch
Civil Code (Burgerlijk Wetboek) by way of a legal statutory demerger (juridische afsplitsing) to Iveco Group N.V. (the
"Demerger"), effective January 1, 2022. A description of the principal phases leading up to completion of the Demerger
is provided in the Notes to the Consolidated Financial Statements.
As the transaction took effect on January 1, 2022, the consolidated financial statements for the year ended December
31, 2021 relate to CNH Industrial Pre-Demerger. Moreover, in accordance with IFRS 5 – Non-current Assets Held for
Sale and Discontinued Operations, as the Demerger became highly probable in December, the Iveco Group Business
is classified and presented as Discontinued Operations in these consolidated financial statements. That presentation
has resulted in the following:
▪for both years 2021 and 2020 (the latter presented for comparative purposes), the operating results of Iveco Group
Business are presented in a single line item "Profit/(Loss) from Discontinued Operations, net of tax" within the
Consolidated Income Statement;
▪all assets and liabilities (excluding equity) relating to Iveco Group Business at December 31, 2021 are reclassified as
Assets held for distribution and Liabilities held for distribution, respectively, within the Consolidated Statement of
Financial Position;
▪for both years 2021 and 2020 (the latter presented for comparative purposes), the cash flows arising from the Iveco
Group Business (as Discontinued Operations) are presented in the Consolidated Statement of Cash Flows as
separate line items under cash flows from operating, investing and financing activities.
For additional detail of items presented under Discontinued Operations in the Consolidated Statements of Income,
Financial Position and Cash Flows, refer to the section "Scope of Consolidation - Discontinued Operations - Iveco
Group Business", in the Notes to the Consolidated Financial Statements.
Additionally, as the Demerger is a “business combination involving entities or businesses under common control”, it is
outside the scope of application of IFRS 3 – Business Combinations and IFRIC 17- Distributions of Non-cash Assets to
Owners. Accordingly, in the 2022 consolidated financial statements for CNH Industrial and Iveco Group, the opening
position for items in the statement of financial position will be equivalent to the carrying amounts reported in the
consolidated financial statements of CNH Industrial Pre-Demerger.
COVID-19 Effects and Actions
The COVID-19 pandemic and the related actions of governments and other authorities to contain COVID-19 spread
continue to affect CNH Industrial’s business, results and cash flow.
Governments in many countries where the Company operates, designated part of our businesses as essential critical
infrastructure businesses. This designation allows CNH Industrial to operate in support of its dealers and customers to
the extent possible. CNH Industrial also continues to prioritize the health, safety and well-being of its employees.
The Company remains cautious about future impacts on CNH Industrial's end-markets and business operations of
restrictions on social interactions and business operations to limit the resurgence of the pandemic. CNH Industrial is
closely monitoring the impact of the COVID-19 pandemic on all aspects of its business, its employees and the
Company's results of operations, financial condition and cash flows.
Board Report    Operating and Financial Review and Prospects    65
For additional discussion regarding the principal factors affecting CNH Industrial’s results, see section "Risk Factors -
COVID-19 Risks".
Global Supply Chain Disruptions
On October 13, 2021, CNH Industrial announced the temporary closure of several of its European agricultural,
commercial vehicle and powertrain manufacturing facilities in response to ongoing disruptions to the procurement
environment and shortages of core components, especially semiconductors. The global supply chain still shows
increasing input costs and logistics pressures, with ongoing disruptions to the procurement environment forcing
repeated reviews of production schedules. Global supply chain represented the main challenge for the operations in the
year, with multiple bottlenecks resulting in increased raw material prices, intermittent subcomponent availability, notably
for semiconductors, and increased transportation costs.
OPERATING RESULTS
The operations and key financial measures and financial analysis, differ significantly for manufacturing and distribution
businesses and financial services businesses; therefore, for a better understanding of our operations and financial
results, we present the following commentary split by Industrial Activities and Financial Services. Industrial Activities
represent the activities carried out by the four industrial segments Agriculture, Construction, Commercial and Specialty
Vehicles, and Powertrain, as well as Corporate functions. The parent company, CNH Industrial N.V., is included under
Industrial Activities as well as subsidiaries that provide centralized treasury services (i.e., raising funding in the market
and financing Group subsidiaries). The activities of the treasury subsidiaries do not include the offer of financing to third
parties.
Until December 31, 2021, before the Demerger, CNH Industrial N.V. owned and controlled the Iveco Group Business
(“Discontinued Operations”), as well as the Agriculture business, the Construction business and the related Financial
Services business (together “Continuing Operations”). The following review provides an analysis related to CNH
Industrial prior to the Demerger (“CNH Industrial Pre-Demerger”), with a breakdown provided for Continuing Operations
and Discontinued Operations.
Board Report    Operating and Financial Review and Prospects    66
Consolidated Results of Operations
The following table presents the consolidated income statement of CNH Industrial Pre-Demerger for the year ended
December 31, 2021 compared to the year ended December 31, 2020, split by Industrial Activities and Financial
Services:
2021
2020
($ million)
Industrial
Activities(1)
Financial
Services
Eliminations
CNHI Pre-
Demerger
Industrial
Activities(1)
Financial
Services
Eliminations
CNHI Pre-
Demerger
Net revenues
31,726
1,862
(107)
(2)
33,481
24,292
1,807
(115)
(2)
25,984
Cost of sales
26,069
1,183
(107)
(3)
27,145
21,306
1,300
(115)
(3)
22,491
Selling, general and
administrative costs
2,243
157
—
2,400
1,848
154
—
2,002
Research and
development costs
1,246
—
—
1,246
1,132
—
—
1,132
Result from
investments
92
31
—
123
(10)
29
—
19
Gains/(losses) on
disposal of
investments
10
—
—
10
—
—
—
—
Restructuring costs
78
—
—
78
56
—
—
56
Goodwill
impairment loss
—
—
—
—
576
—
—
576
Other income/
(expenses)
(320)
(3)
—
(323)
(207)
—
—
(207)
Financial income/
(expenses)
(287)
—
—
(287)
(289)
—
—
(289)
PROFIT/(LOSS)
BEFORE TAXES
1,585
550
—
2,135
(1,132)
382
—
(750)
Income tax benefit
(expense)
(236)
(122)
—
(358)
149
(94)
—
55
PROFIT/(LOSS)
FOR THE PERIOD
1,349
428
—
1,777
(983)
288
—
(695)
(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.
The following table presents the consolidated income statement of CNH Industrial Pre-Demerger for the year ended
December 31, 2021 compared to the year ended December 31, 2020 with a breakdown by Continuing Operations and
Discontinued Operations:
Board Report    Operating and Financial Review and Prospects    67
2021
2020
($ million)
Continuing
Operations
Discontinued
Operations
Eliminations
CNHI Pre-
Demerger
Continuing
Operations
Discontinued
Operations
Eliminations
CNHI Pre-
Demerger
Net revenues
19,474
14,963
(956)
33,481
14,696
11,892
(604)
25,984
Cost of sales
15,231
12,870
(956)
27,145
12,287
10,808
(604)
22,491
Selling, general
and
administrative
costs
1,425
975
—
2,400
1,197
805
—
2,002
Research and
development
costs
677
569
—
1,246
634
498
—
1,132
Result from
investments
92
31
—
123
68
(49)
—
19
Gains/(losses) on
disposal of
investments
—
10
—
10
—
—
—
—
Restructuring
costs
36
42
—
78
19
37
—
56
Goodwill
impairment loss
—
—
—
—
576
—
—
576
Other income/
(expenses)
(124)
(199)
—
(323)
(82)
(125)
—
(207)
Financial income/
(expenses)
(151)
(136)
—
(287)
(161)
(128)
—
(289)
PROFIT/ (LOSS)
BEFORE TAXES
1,922
213
—
2,135
(192)
(558)
—
(750)
Income tax
(expense) benefit
(236)
(122)
—
(358)
(78)
133
—
55
PROFIT/(LOSS)
FOR THE
PERIOD
1,686
91
—
1,777
(270)
(425)
—
(695)
The following comments provide an analysis of the income statement items related to CNH Industrial Pre-Demerger,
with a breakdown by Continuing and Discontinued Operations.
Net revenues
We recorded net revenues of $33,481 million in 2021, an increase of 28.9% (up 27.3% on a constant currency basis)
compared to 2020. This increase is primarily due to an increase of 30.6% (up 28.9% on a constant currency basis)
compared to the prior year in net sales of Industrial Activities, due to continued strong industry demand and price
realization. In 2021, the net revenues of Continuing Operations were $19,474 million, up 32.5% compared to 2020 (up
31.6% on a constant currency basis). The net sales of Industrial Activities of Continuing Operations were
$17,835 million, up 36.4% (35.4% on a constant currency basis) compared to 2020. The increase was due to higher
industry demand, favorable price realization and lower destocking compared to the previous year. The net revenues of
Discontinued Operations were $14,963 million, an increase of 25.8% (up 22.8% on a constant currency basis)
compared to 2020. The net sales of the Industrial Activities of Discontinued Operations were $14,808 million, an
increase of 25.7% compared to the prior year (up 22.7% on a constant currency basis), due to higher volumes and
positive price realization.
Cost of sales
Cost of sales were $27,145 million in 2021 compared to $22,491 million in 2020. As a percentage of net revenues, cost
of sales of Industrial Activities was 82.2% in 2021 (87.7% in 2020), as a result of favorable fixed cost absorption
partially offset by higher input costs. In 2020, Cost of sales included impairment charges of $245 million against
intangible and tangible assets, as well as asset optimization charges of $282 million. Cost of sales of Continuing
Operations were $15,231 million in 2021 compared to $12,287 million in 2020. Cost of sales of Discontinued
Operations were $12,870 million in 2021 compared to $10,808 million in 2020.
Selling, general and administrative costs
Selling, general and administrative ("SG&A") costs amounted to $2,400 million in 2021 (7.2% of net revenues)
compared to $2,002 million in 2020 (7.7% of net revenues), SG&A costs increased $398 million compared to 2020 as
costs returned to more normal levels from the low levels experienced last year. For Continuing Operations, SG&A costs
Board Report    Operating and Financial Review and Prospects    68
were $1,425 million in 2021, up $228 million compared to 2020. For Discontinued Operations, SG&A costs were $975
million in 2021, up $170 million compared to in 2020.
Research and development costs
In 2021, research and development (“R&D”) costs were $1,246 million (compared to $1,132 million in 2020) and
included all R&D costs not recognized as assets in the year amounting to $774 million ($586 million in 2020),
$19 million of impairment losses ($96 million in 2020) and the amortization of capitalized development cost of
$453 million ($450 million in 2020). During 2021, CNH Industrial capitalized new expenditures for development costs for
$475 million ($364 million in 2020). The costs in both periods were primarily attributable to spending on engine
development costs associated with emission requirements and continued investment in new products. In 2021, R&D
costs for Continuing Operations were $677 million (compared to $634 million in 2020) and included all R&D costs not
recognized as assets in the year amounting to $492 million ($340 million in 2020), nil of impairment losses ($93 million
in 2020) and the amortization of capitalized development cost of $185 million ($201 million in 2020). During 2021,
Continuing Operations capitalized new expenditures for development costs for $154 million ($162 million in 2020). In
2021, R&D costs for Discontinued Operations were $569 million (compared to $498 million in 2020) and included all
R&D costs not recognized as assets in the year amounting to $282 million ($246 million in 2020), $19 million of
impairment losses ($3 million in 2020) and the amortization of capitalized development cost of $268 million
($249 million in 2020). During 2021, Discontinued Operations capitalized new expenditures for development costs for
$321 million ($202 million in 2020).
Result from investments
Result from investments was a net gain of $123 million in 2021 and $19 million in 2020. In 2021, this item includes the
positive impact of $13 million from the sale of investments by a joint venture accounted for under the equity method. In
2020, this item also included the $20 million negative impact from the costs recognized by a Chinese joint venture,
accounted for under the equity method, for valuation allowances against deferred tax assets and restructuring actions.
In 2021, the Result from investment of Continuing Operations amounted to $92 million compared to $68 million in 2020.
The Result from investment of Discontinued Operations were $31 million in 2021 compared to a loss of $49 million in
2020.
Gains/(losses) on disposal of investments
Gains/(losses) on disposal of investments were a gain of $10 million in 2021 and nil in 2020. In 2021 this item primarily
included the pre- and after-tax gain of $9 million from the sale of a 30.1% interest in Naveco, related to Discontinued
Operations.
Restructuring costs
Restructuring costs were $78 million and $56 million in 2021 and in 2020, respectively. Restructuring costs amounted to
$36 million for Continuing Operations in 2021 ($19 million in 2020) and $42 million for Discontinued Operations
($37 million in 2020).
Goodwill impairment loss
No goodwill impairment loss was recorded in 2021. In 2020, a goodwill impairment loss of $576 million was recorded,
representing the total impairment of the goodwill allocated to Construction (Continuing Operations).
Other income/(expenses)
Other expenses were $323 million in 2021 compared to $207 million in 2020. In both periods, this item primarily
included legal costs, indirect taxes and the benefit cost for former employees. In 2021, this item also includes a gain of
$95 million related to a healthcare plan amendment in the U.S. occurred in the fourth quarter of 2021, $187 million
separation costs in connection with the demerger of the Iveco Group Business, $57 million for the transaction costs
related to the acquisition of Raven Industries, Inc., a gain of $12 million ($9 million after-tax) for a fair value adjustment
of Monarch Tractor investment, and a pre- and after-tax loss of $25 million due to valuation at their recoverable amount
of certain assets classified as held for sale. Other expenses were $124 million in 2021 for Continuing Operations
($82 million in 2020) and $199 million for Discontinued Operations ($125 million in 2020).
Financial income/(expenses)
Net financial expenses were $287 million in 2021, in line with 2020. In 2021, net financial expenses include a charge of
$8 million related to the repurchase of all CNH Industrial Finance Europe S.A. outstanding notes due May 23, 2022.
Excluding this charge, net financial expenses decreased primarily due to lower average indebtedness as well as lower
negative foreign exchange, partially offset by higher currency translation impact. Net financial expenses were
$151 million in 2021 for Continuing Operations ($161 million in 2020) and $136 million for Discontinued Operations
($128 million in 2020).
Board Report    Operating and Financial Review and Prospects    69
Income tax benefit (expense)
2021
2020
($ million)
Continuing
Operations
Discontinued
Operations
CNHI Pre-
Demerger
Continuing
Operations
Discontinued
Operations
CNHI Pre-
Demerger
Profit before taxes
1,922
213
2,135
(192)
(558)
(750)
Income tax (expense)
(236)
(122)
(358)
(78)
133
55
Effective tax rate
12.3%
57.3%
16.8%
(40.6)%
23.8%
7.3%
In 2021, CNH Industrial income taxes (including Continuing and Discontinued Operations) were an expense of
$358 million, based on CNH Industrial's profit before taxes of $2,135 million, compared to an income tax benefit of $55
million in 2020. The effective tax rates for 2021 and 2020 were 16.8% and 7.3%, respectively. The current period
effective tax rate was positively impacted by $142 million related to recognizing deferred tax assets associated with the
Company’s agricultural and construction equipment operations in Brazil, pre-tax earnings in other jurisdictions which
allowed previously unrecognized deferred tax assets to be realized, and the impact of additional tax credit and incentive
benefits. These positive impacts were partly offset by the negative impacts of the non-deductible expenses associated
with the Demerger and the acquisition of Raven Industries, Inc. Excluding the pre-tax and corresponding tax impacts
related to restructuring costs, charges associated with the Demerger, charges for the acquisition of Raven Industries,
Inc., the gain from the 2021 modifications of a healthcare plan in the U.S., the gain associated with the fair market value
adjustment to the Monarch Tractor investment, the loss due to valuation at their recoverable amount of certain assets
classified as held for sale, the gain from the sale of a 30.1% interest in Naveco, the gain from selling investments by a
joint venture, the charge from repurchase of notes, and the tax benefit associated with recognizing certain Brazilian
deferred tax assets in addition to other tax rate change benefits, the effective tax rate was 22% in 2021. The 2020
effective tax rate reflected the inability to record tax benefits for pre-tax losses in certain jurisdictions and the goodwill
impairment charge related to the Company's Construction segment, the effects of which were partially offset by the
impact of net discrete tax benefits, which were primarily non-cash and included $44 million related to the recognition of
certain deferred tax assets, primarily based on the recent profit history and expected future profitability of consolidated
tax reporting groups in certain jurisdictions. Excluding pre-tax and tax impacts of the impairment charge related to
Construction segment goodwill, for which no income tax benefits were reported, other asset optimization and
impairment charges, restructuring costs, the negative impact from the costs recognized by a Chinese joint venture for
valuation allowances against deferred tax assets and restructuring actions, and net discrete tax benefits related to
deferred tax asset recognition and tax rate changes, income taxes were an expense of $130 million, with an effective
tax rate of 26% in 2020.
Profit/(loss)
Net profit was $1,777 million in 2021 (net loss of $695 million in 2020). In 2021, net income also includes $187 million
charges ($170 million after-tax) associated with the Company's spin-off of its Iveco Group Business, $57 million
charges ($47 million after-tax) for the acquisition of Raven Industries, Inc., the $100 million gain ($76 million after-tax)
from a healthcare plan amendment in the U.S, gain of $12 million ($9 million after-tax) for a fair value adjustment of
Monarch Tractor investment, the pre- and after-tax loss of $25 million due to valuation at their recoverable amount of
certain assets classified as held for sale, the pre- and after-tax gain of $9 million from the sale of a 30.1% interest in
Naveco, $13 million gain from the sale of investments by a joint venture, the pre- and after-tax charge of $8 million from
repurchase of notes. Net profit also included restructuring costs of $78 million ($65 million after-tax), the $142 million
tax benefit related to recognizing certain deferred tax assets, and other discrete tax benefits. Excluding the impact of all
these items, the net result would have been a profit of $1,838 million. In 2020, net loss also included the pre- and after-
tax goodwill impairment of $576 million related to Construction, other assets impairment charges of $317 million
($261 million after-tax), assets optimization charges of $282 million ($227 million after-tax), $56 million of restructuring
costs ($43 million after-tax), net discrete tax benefits of $61 million, the $20 million negative impact from the costs
recognized by a Chinese joint venture for valuation allowances against deferred tax assets and restructuring actions,
and other non-recurring net charges of $7 million. Excluding the impact of all these items, the net result would have
been a profit of $378 million.
Board Report    Operating and Financial Review and Prospects    70
Industrial Activities Performance
The following tables show total Net Revenues and Adjusted EBIT of Industrial Activities by segment for CNH Industrial
as a whole (CNH Industrial Pre-Demerger). We have also included a discussion of results by Industrial Activities and
each business segments.
CNH Industrial
Net revenues by segment
($ million)
2021
2020
% change
% change
excl. FX
Agriculture
14,754
10,916
35.2
34.2
Construction
3,081
2,170
42.0
40.9
Commercial and Specialty Vehicles
12,204
9,420
29.6
27.3
Powertrain
4,435
3,633
22.1
19.4
Eliminations and Other
(2,748)
(1,847)
—
—
Total Net revenues of Industrial Activities of CNHI Pre-Demerger
31,726
24,292
30.6
28.9
Financial Services
1,862
1,807
3.0
2.5
Eliminations and Other
(107)
(115)
—
—
Total Net revenues of CNHI Pre-Demerger
33,481
25,984
28.9
27.3
Adjusted EBIT of Industrial Activities by segment
($ million)
2021
2020
Change
2021 Adjusted EBIT
margin
2020 Adjusted EBIT
margin
Agriculture
1,794
856
938
12.2%
7.8%
Construction
83
(193)
276
2.7%
(8.9)%
Commercial and Specialty
Vehicles
300
(169)
469
2.5%
(1.8)%
Powertrain
246
223
23
5.5%
6.1%
Unallocated items, eliminations
and other
(337)
(301)
-36
—
—
Adjusted EBIT of Industrial
Activities of CNHI Pre-Demerger
2,086
416
1,670
6.6%
1.7%
Net revenues of Industrial Activities were $31,726 million in 2021, up 30.6% compared to the prior year (up 28.9% on a
constant currency basis), due to continued strong industry demand and price realization.
Adjusted EBIT of Industrial Activities was $2,086 million ($416 million in 2020), with an adjusted EBIT margin of 6.6%.
The increase in adjusted EBIT was primarily attributable to all segments being up year over year.
Board Report    Operating and Financial Review and Prospects    71
The following tables summarize the reconciliation of Adjusted EBIT of Industrial Activities, a non-GAAP financial
measures, to consolidated profit/(loss), the most comparable EU-IFRS financial measure, for 2021 and 2020.
2021
($ million)
Agriculture
Construction
Commercial
and Specialty
Vehicles
Powertrain
Unallocated
items,
elimination and
other
Total
Consolidated Profit/(loss)
1,777
Less: Consolidated Income tax benefit (expense)
(358)
Consolidated Profit (loss) before taxes
2,135
Less: Financial Services
Financial Services Net Income
428
Financial Services Income taxes
122
Add back of the following Industrial Activities items:
Financial expenses
287
Adjustments for the following Industrial Activities items:
Restructuring costs
20
16
40
2
—
78
Other discrete items(1)
—
—
(22)
—
158
136
Adjusted EBIT of Industrial Activities
1,794
83
300
246
(337)
2,086
(1)This item includes the pre- and after-tax gain of $9 million from the sale of the 30.1% interest in Naveco, as well as the positive impact of $13 million
from the sale of investments by a joint venture accounted for under the equity method, presented in column “Commercial and Specialty Vehicles”.
This item also includes a gain of $97 million related to 2021 healthcare plan amendment in the U.S., $185 million separation and transaction costs in
connection with the Demerger, a charge of $57 million for transaction costs related to the acquisition of Raven Industries, Inc., as well as a gain of
$12 million for a fair value adjustment of Monarch Tractor investment and a loss of $25 million due to the valuation at their recoverable amount of
certain assets classified as held for sale.
2020
($ million)
Agriculture
Construction
Commercial
and Specialty
Vehicles
Powertrain
Unallocated
items,
elimination
and other
Total
Consolidated Profit/(loss)
(695)
Less: Consolidated Income tax benefit (expense)
55
Consolidated Profit (loss) before taxes
(750)
Less: Financial Services
Financial Services Net Income
288
Financial Services Income taxes
94
Add back of the following Industrial Activities items:
Financial expenses
289
Adjustments for the following Industrial Activities items:
Restructuring costs
13
6
21
16
—
56
Goodwill impairment loss
—
—
—
—
576
576
Other discrete items(1)
248
62
309
—
8
627
Adjusted EBIT of Industrial Activities
856
(193)
(169)
223
(301)
416
(1)This item mainly included impairment of intangible and other long-lived assets, asset optimization charges, and the negative impact from the costs
recognized by a Chinese joint venture, accounted for under the equity method, for valuation allowances against deferred tax assets and
restructuring actions
Board Report    Operating and Financial Review and Prospects    72
Agriculture
Net revenues
The following table shows Agriculture net revenues by geographic region in 2021 compared to 2020:
Agriculture Net revenues – by geographic region:
($ million)
2021
2020
% Change
North America
5,123
3,794
35.0
Europe
4,715
3,854
22.3
South America
2,383
1,479
61.1
Rest of World
2,533
1,789
41.6
Total
14,754
10,916
35.2
Net revenues for Agriculture were $14,754 million in 2021, up 35.2% compared to 2020 (up 34.2% on a constant
currency basis), mainly due to higher industry demand, better mix, favorable price realization and lower destocking
compared to 2020.
For 2021, worldwide industry unit sales for tractors increased 14% compared to 2020, while worldwide industry sales
for combines were up 19% compared to 2020. In North America, industry volumes in the over 140 hp tractor market
sector were up 23% and combines were up 25%. Industry volumes for under 140 hp tractors were up 10%. European
markets were up 16% and 17% for tractors and combines, respectively. In South America, tractor industry volumes
increased 22% and combine industry volumes increased 19%. Rest of World markets increased 15% for tractors and
19% for combines.
Adjusted EBIT
Adjusted EBIT was $1,794 million in 2021, compared to $856 million in 2020. The $938 million increase was driven by
higher volume, favorable mix and price realization in all regions, partially offset by higher raw material and freight costs,
higher SG&A costs driven by higher variable compensation. R&D spend returned to more normal levels from the low
levels experienced in the previous year. Adjusted EBIT margin increased 440 bps to 12.2%.
Construction
Net revenues
The following table shows Construction net revenues by geographic region in 2021 compared to 2020:
Construction Net revenues – by geographic region:
($ million)
2021
2020
% change
North America
1,439
961
49.7
Europe
570
417
36.7
South America
501
321
56.1
Rest of World
571
471
21.2
Total
3,081
2,170
42.0
Net revenues for Construction were $3,081 million in 2021, a 42.0% increase compared to 2020 (up 40.9% on a
constant currency basis), driven by favorable price realization, higher demand, and lower destocking by dealers and
distributors.
In 2021, global demand for construction equipment was up 14% compared to 2020, with Heavy sub-segment up 16%
and Light sub-segment up 13%. Demand increased 23% in North America, 19% in Europe, 87% in South America, and
6% in Rest of World.
Adjusted EBIT
Adjusted EBIT was $83 million in 2021 (up $276 million compared to 2020). The improvement was due to positive price
realization and favorable volume and mix, partially offset by higher product costs related to raw material and freight
costs and higher variable compensation. Adjusted EBIT margin was 2.7%.
Board Report    Operating and Financial Review and Prospects    73
Commercial and Specialty Vehicles
Net revenues
The following table shows Commercial and Specialty Vehicles net revenues by geographic region in 2021 compared to
2020:
Commercial and Specialty Vehicles Net revenues – by geographic region:
($ million)
2021
2020
% change
North America
104
80
n.m.
Europe
9,631
7,628
26.3
South America
1,139
571
99.5
Rest of World
1,330
1,141
16.6
Total
12,204
9,420
29.6
n.m. – not meaningful.
Commercial and Specialty Vehicles' net revenues were $12,204 million in 2021, up 29.6% compared to 2020 (up 27.3%
on a constant currency basis), primarily driven by higher truck volumes and positive price realization.
In 2021, the European truck market (GVW ≥3.5 tons), excluding U.K. and Ireland, increased by 11% compared to 2020.
The LCV market increased 8%, and the M&H truck market increased by 19%. In South America, new truck registrations
(GVW ≥3.5 tons) increased 39% compared to 2020, with an increase of 39% and 42% in Brazil and in Argentina,
respectively. In Rest of World, new truck registrations increased 18% compared with 2020.
CNH Industrial’s estimated market share in the European truck market (GVW ≥3.5 tons), excluding U.K. and Ireland,
was 11.8%, up 1.2 percentage points ("p.p.") compared with 2020. The European market share increased 1.9 p.p. to
13.2% in LCV and increased 0.1 p.p. to 8.9% in M&H segment. In South America, in 2021, CNH Industrial’s market
share increased 0.8 p.p. to 10.5%.
During 2021, Commercial and Specialty Vehicles delivered approximately 161,178 vehicles (including buses and
specialty vehicles), representing a 36% increase from 2020. Volumes were 40% higher in LCV and 43% higher in M&H
truck segments. Commercial and Specialty Vehicles’ deliveries increased 33%, 73% and 26% in Europe, South America
and Rest of World, respectively.
In 2021, Commercial and Specialty Vehicles' ratio of truck orders received to units shipped and billed, or book-to-bill
ratio, for the European truck market was 1.57, an increase of 32% compared to 2020. In 2021, truck order intake in
Europe increased 81% compared to previous year.
Commercial and Specialty Vehicles deliveries
By geographic area
By product
(units in thousands)
2021
2020
% change
(units in thousands)
2021
2020
% change
France
24.6
20.2
21.8
M&H
47.8
33.5
42.7
Germany & Switzerland
18.1
16.1
12.4
LCV
101.6
72.4
40.3
U.K.
7.6
5.3
43.4
Buses
9.1
9.5
-4.2
Italy
27.9
18.1
54.1
Specialty vehicles(**)
2.7
2.8
-3.6
Iberia (Spain & Portugal)
10.2
7.5
36.0
Total Sales
161.2
118.2
36.4
Rest of Europe
31.6
23.0
37.4
(**)  Defense and firefighting vehicles.
Europe
120.0
90.2
33.0
South America
22.4
13.0
72.3
Rest of World
18.8
15.0
25.3
Total Sales
161.2
118.2
36.4
Adjusted EBIT
Adjusted EBIT was $300 million in 2021 (an increase of $469 million compared to 2020). The improvement was driven
by higher volumes and positive price realization, partially offset by increased raw material costs, freight costs, and
rework costs due to components shortages. SG&A costs increase was driven by higher variable compensation. R&D
spend returned to more normal levels from the lows of the prior year. Adjusted EBIT margin was 2.5%.
Board Report    Operating and Financial Review and Prospects    74
Powertrain
Net revenues
Powertrain net revenues were $4,435 million in 2021, an increase of 22.1% (up 19.4% on a constant currency basis)
compared to 2020, mainly due to higher volumes. Sales to external customers accounted for 41% of total net revenues
(52% in 2020).
During 2021, Powertrain sold approximately 538,300 engines, an increase of 12% compared to 2020. In terms of
customers, 32% of engines were supplied to Commercial and Specialty Vehicles, 17% to Agriculture, 6% to
Construction and the remaining 45% to external customers (units sold to third parties were down 16% compared to
2020). Additionally, Powertrain delivered approximately 67,900 transmissions and 192,500 axles, an increase of 36%
and 38%, respectively, compared to 2020.
Adjusted EBIT
Adjusted EBIT was $246 million in 2021 (up $23 million compared to 2020). The increase was mainly due to favorable
volume and mix in the first half of the year, almost offset by unfavorable raw material costs, higher freight costs due to
logistics constraints, higher SG&A costs and lower absorption of fixed cost in the second half of the year due to certain
third-party sales discontinuation. R&D spend returned to a pre-pandemic level. Adjusted EBIT margin was 5.5%, in
2021.
Financial Services Performance
($ million)
2021
2020
Change
Net revenues
1,862
1,807
3.0%
Net income
428
288
140
Net revenues
Financial Services reported net revenues of $1,862 million in 2021, up 3.0% compared to 2020 (up 2.5% on a constant
currency basis), primarily due to higher used equipment sales and higher average portfolios in Europe, South America
and Rest of Word, partially offset by lower average portfolio in North America due to a reduction in wholesale financing.
Retail loan and lease originations were up 14.5% reflecting higher Industrial Activities sales.
Net income
For the year ended December 31, 2021, net income was $428 million, a $140 million increase compared to 2020,
primarily due to lower risk costs due to improved market outlook, improved pricing in North America, higher recoveries
on used equipment sales, and higher average portfolio.
In 2021, retail loan originations (including unconsolidated joint ventures) were $11.4 billion, up $1.4 billion compared to
2020. The managed portfolio (including unconsolidated joint ventures) was $26.7 billion as of December 31, 2021 (of
which retail was 67% and wholesale 33%), relatively flat compared to December 31, 2020. Excluding the impact of
currency translation, the managed portfolio increased by $1.2 billion compared to 2020.
At December 31, 2021, the receivable balance greater than 30 days past-due as a percentage of receivables was 1.7%
(2.1% as of December 31, 2020).
Board Report    Operating and Financial Review and Prospects    75
STATEMENT OF FINANCIAL POSITION BY ACTIVITY
The operations, and key financial measures and financial analysis, differ significantly for manufacturing and distribution
businesses and Financial Services businesses; therefore, for a better understanding of the financial position of CNH
Industrial, and in particular of the net cash/debt position, the Company presents the following table providing the
condensed statement of financial position of the Group, split between Industrial Activities and Financial Services.
Specific comments on the net cash/debt position of CNH Industrial split by Industrial Activities and Financial Services
are included in the subsequent section Liquidity and Capital Resources.
At December 31, 2021
At December 31, 2020
($ million)
Industrial
Activities(1)
Financial
Services
Eliminations
Consolidated
Industrial
Activities(1)
Financial
Services
Eliminations
Consolidated
ASSETS
Intangible assets:
5,021
138
—
5,159
4,683
149
—
4,832
Goodwill
3,112
118
—
3,230
1,812
132
—
1,944
Other intangible assets
1,909
20
—
1,929
2,871
17
—
2,888
Property, plant and equipment
1,695
2
—
1,697
5,411
3
—
5,414
Investments and other non-
current financial assets
243
112
—
355
722
299
—
1,021
Leased assets
30
1,708
—
1,738
65
1,913
—
1,978
Defined benefit plan assets
19
—
—
19
24
1
—
25
Deferred tax assets
368
72
(73)
(5)
367
1,039
172
(150)
(5)
1,061
Total Non-current assets
7,376
2,032
(73)
9,335
11,944
2,537
(150)
14,331
Inventories
4,199
29
—
4,228
5,959
41
—
6,000
Trade receivables
197
1
(6)
(3)
192
504
23
(24)
(3)
503
Receivables from financing
activities
1,012
15,578
(1,147)
(3)
15,443
931
19,500
(1,902)
(3)
18,529
Current tax receivables
83
5
(25)
(4)
63
179
12
(31)
(4)
160
Other current receivables and
financial assets
677
70
—
(2)
747
975
121
(55)
(2)
1,041
Prepaid expenses and other
assets
113
5
—
118
162
27
—
189
Derivative assets
120
77
(13)
(6)
184
103
76
(19)
(6)
160
Cash and cash equivalents
4,514
1,331
—
5,845
8,116
1,513
—
9,629
Total Current assets
10,915
17,096
(1,191)
26,820
16,929
21,313
(2,031)
36,211
Assets held for sale
490
—
—
490
14
—
—
14
Assets held for distribution
10,735
4,554
(812)
14,477
—
—
—
—
TOTAL ASSETS
29,516
23,682
(2,076)
51,122
28,887
23,850
(2,181)
50,556
EQUITY AND LIABILITIES
Total Equity
5,427
2,999
—
8,426
3,758
2,977
—
6,735
Provisions:
3,028
24
—
3,052
5,127
112
—
5,239
Employee benefits
921
18
—
939
1,830
34
—
1,864
Other provisions
2,107
6
—
2,113
3,297
78
—
3,375
Debt:
6,849
15,987
(1,147)
(3)
21,689
8,798
19,722
(1,902)
(3)
26,618
Asset-backed financing
—
8,875
—
8,875
—
11,923
—
11,923
Other debt
6,849
7,112
(1,147)
(3)
12,814
8,798
7,799
(1,902)
(3)
14,695
Derivative liabilities
153
42
(13)
(6)
182
102
56
(19)
(6)
139
Trade payables
3,353
207
(29)
(3)
3,531
6,166
220
(31)
(3)
6,355
Tax liabilities
283
42
—
(4)
325
183
34
(31)
(4)
186
Deferred tax liabilities
25
260
(73)
(5)
212
86
267
(150)
(5)
203
Other current liabilities
1,319
404
(2)
(2)
1,721
4,667
462
(48)
(2)
5,081
Liabilities held for sale
125
—
—
125
—
—
—
—
Liabilities held for distribution
8,954
3,717
(812)
11,859
—
—
—
—
Total Liabilities
24,089
20,683
(2,076)
42,696
25,129
20,873
(2,181)
43,821
TOTAL EQUITY AND
LIABILITIES
29,516
23,682
(2,076)
51,122
28,887
23,850
(2,181)
50,556
Board Report    Operating and Financial Review and Prospects    76
(1) Industrial Activities represents the enterprise without Financial Services. At December 31, 2021, Industrial Activities includes CNH Industrial's Agriculture and Construction, and
other corporate assets, liabilities, revenues and expenses not reflected within Financial Services; at the same date CNH Industrial's Commercial and Specialty Vehicles and
Powertrain segments assets and liabilities were classified and presented as Assets and Liabilities held for distribution. At December 31, 2020, Industrial Activities includes CNH
Industrial'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 intercompany activity between Industrial Activities and Financial Services.
(3) This item includes the elimination of receivables/payables between Industrial Activities and Financial Services.
(4) This item includes the elimination of tax receivables/payables between Industrial Activities and Financial Services and reclassifications needed for appropriate consolidated
presentation.
(5) This item includes the reclassification of deferred tax assets/liabilities in the same jurisdiction and reclassifications needed for appropriate consolidated presentation.
(6) This item includes the elimination of derivative assets/liabilities between Industrial Activities and Financial Services.
LIQUIDITY AND CAPITAL RESOURCES
The following discussion of liquidity and capital resources principally focuses on our consolidated statement of cash
flows and our consolidated statement of financial position. Our operations are capital intensive and subject to seasonal
variations in financing requirements for dealer receivables and dealer and company inventories. Whenever necessary,
funds from operating activities are supplemented from external sources. CNH Industrial, focusing on cash preservation
and leveraging its good access to funding, continues to maintain solid financial strength and liquidity. See section “Risk
Factors” for additional information concerning risks related to our business, strategy and operations.
Cash Flow Analysis
The following table presents the cash flows from operating, investing and financing activities by activity for the years
ended December 31, 2021 and 2020 for CNH Industrial as a whole (CNH Industrial Pre-Demerger):
Board Report    Operating and Financial Review and Prospects    77
2021
2020
($ million)
Industrial
Activities(1)
Financial
Services
Elimina-
tions
CNHI Pre-
Demerger
Industrial
Activities(1)
Financial
Services
Elimina-
tions
CNHI Pre-
Demerger
A)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
8,116
1,513
—
9,629
4,527
1,246
—
5,773
B)
CASH FLOWS FROM/(USED IN)
OPERATING ACTIVITIES:
Profit/(loss)
1,349
428
—
1,777
(983)
288
—
(695)
Amortization and depreciation (net
of vehicles sold under buy-back
commitments and operating leases)
1,204
5
—
1,209
1,213
5
—
1,218
Goodwill impairment loss
—
—
—
—
576
—
—
576
(Gains)/losses on disposal of non-
current assets (net of vehicles sold
under buy-back commitments) and
other non-cash items
9
11
—
20
410
77
—
487
Loss on repurchase /early
redemption of notes
8
—
—
8
—
—
—
—
Dividends received
395
—
(314)
(2)
81
185
—
(152)
(2)
33
Change in provisions
405
29
—
434
149
53
—
202
Change in deferred income taxes
(204)
(26)
—
(230)
(274)
(16)
—
(290)
Change in items due to buy-back
commitments
(a)
43
15
—
58
155
14
—
169
Change in operating lease items
(b)
(11)
173
—
162
(6)
40
—
34
Change in working capital
(173)
(33)
—
(206)
1,726
18
—
1,744
TOTAL
3,025
602
(314)
3,313
3,151
479
(152)
3,478
C)
CASH FLOWS FROM/(USED IN)
INVESTING ACTIVITIES:
Investments in:
Property, plant and equipment and
intangible assets (net of vehicles
sold under buy-back commitments
and operating leases)
(1,180)
(9)
—
(1,189)
(845)
(3)
—
(848)
Consolidated subsidiaries and
other equity investments
(2,267)
—
15
(3)
(2,252)
(176)
—
15
(3)
(161)
Proceeds from the sale of non-
current assets (net of vehicles sold
under buy-back commitments)
34
—
—
34
3
—
—
3
Net change in receivables from
financing activities
(11)
(971)
—
(982)
(7)
654
—
647
Change in other current financial
assets
40
—
—
40
(41)
—
—
(41)
Other changes
(238)
465
—
227
(303)
129
—
(174)
TOTAL
(3,622)
(515)
15
(4,122)
(1,369)
780
15
(574)
D)
CASH FLOWS FROM/(USED IN)
FINANCING ACTIVITIES:
Net change in debt and derivative
assets/liabilities
(1,619)
256
—
(1,363)
1,417
(863)
—
554
Capital increase
—
15
(15)
(3)
—
—
15
(15)
(3)
—
Dividends paid
(188)
(314)
314
(4)
(188)
(8)
(152)
152
(4)
(8)
Purchase of ownership interests in
subsidiaries
—
—
—
—
(9)
—
—
(9)
TOTAL
(1,807)
(43)
299
(1,551)
1,400
(1,000)
137
537
Translation exchange differences
(376)
(31)
—
(407)
407
8
—
415
E)
TOTAL CHANGE IN CASH AND
CASH EQUIVALENTS
(2,780)
13
—
(2,767)
3,589
267
—
3,856
F)
CASH AND CASH EQUIVALENTS
AT END OF YEAR
5,336
1,526
—
6,862
8,116
1,513
—
9,629
(a)Cash generated from the sale of vehicles under buy-back commitments, is recognized under operating activities in a single line item, which includes changes in working
capital, capital expenditure, depreciation and impairment losses.
(b)Cash from operating lease is recognized under operating activities in a single line item, which includes capital expenditure, depreciation, write-downs and changes in
inventory.
(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes CNH Industrial'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.
Board Report    Operating and Financial Review and Prospects    78
The following table presents the cash flows from operating, investing and financing activities by activity for the years
ended December 31, 2021 and 2020 (for further information refer to the Consolidated Statement of Cash Flows and to
Note 33 included in the Consolidated Financial Statements in the following):
2021
2020
($ million)
Industrial
Activities(1)
Financial
Services
Elimina-
tions
Consoli-
dated
Industrial
Activities(1)
Financial
Services
Elimina-
tions
Consoli-
dated
A)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
8,116
1,513
—
9,629
4,527
1,246
—
5,773
B)
CASH FLOWS FROM/(USED IN)
OPERATING ACTIVITIES:
Profit/(loss) from Continuing
Operations
1,329
357
—
1,686
(543)
273
—
(270)
Amortization and depreciation (net
of vehicles sold under buy-back
commitments and operating leases)
536
3
—
539
553
3
—
556
Goodwill impairment loss
—
—
—
—
576
—
—
576
(Gains)/losses on disposal of non-
current assets (net of vehicles sold
under buy-back commitments) and
other non-cash items
1
18
—
19
324
54
—
378
Loss on repurchase /early
redemption of notes
8
—
—
8
—
—
—
—
Dividends received
373
—
(312)
(2)
61
184
—
(152)
(2)
32
Change in provisions
287
(2)
—
285
80
—
—
80
Change in deferred income taxes
(255)
(26)
—
(281)
(104)
(4)
—
(108)
Change in operating lease items
(a)
(3)
162
—
159
2
66
—
68
Change in working capital
185
14
—
199
1,500
29
—
1,529
CASH FLOWS FROM/(USED IN)
OPERATING ACTIVITIES FROM
CONTINUING OPERATIONS
2,461
526
(312)
2,675
2,572
421
(152)
2,841
CASH FLOWS FROM/(USED IN)
OPERATING ACTIVITIES FROM
DISCONTINUED OPERATIONS
564
76
(2)
638
579
58
—
637
TOTAL
3,025
602
(314)
3,313
3,151
479
(152)
3,478
C)
CASH FLOWS FROM/(USED IN)
INVESTING ACTIVITIES:
Investments in:
Property, plant and equipment and
intangible assets (net of vehicles
sold under buy-back commitments
and operating leases)
(515)
(6)
—
(521)
(387)
(3)
—
(390)
Consolidated subsidiaries and
other equity investments
(2,208)
—
10
(3)
(2,198)
(23)
—
15
(3)
(8)
Proceeds from the sale of non-
current assets (net of vehicles sold
under buy-back commitments)
11
—
—
11
—
—
—
—
Net change in receivables from
financing activities
34
(876)
—
(842)
(11)
412
—
401
Change in other current financial
assets
8
—
—
8
(9)
—
—
(9)
Other changes
(780)
321
—
(459)
(655)
120
—
(535)
CASH FLOWS FROM/(USED IN)
INVESTING ACTIVITIES FROM
CONTINUING OPERATIONS
(3,450)
(561)
10
(4,001)
(1,085)
529
15
(541)
CASH FLOWS FROM/(USED IN)
INVESTING ACTIVITIES FROM
DISCONTINUED OPERATIONS
(172)
46
5
(121)
(284)
251
—
(33)
TOTAL
(3,622)
(515)
15
(4,122)
(1,369)
780
15
(574)
D)
CASH FLOWS FROM/(USED IN)
FINANCING ACTIVITIES:
Net change in debt and derivative
assets/liabilities
(1,547)
288
—
(1,259)
1,506
(496)
—
1,010
Capital increase
—
15
(15)
(3)
—
—
15
(15)
(3)
—
Dividends paid
(188)
(314)
314
(4)
(188)
(8)
(152)
152
(4)
(8)
Board Report    Operating and Financial Review and Prospects    79
CASH FLOWS FROM/(USED IN)
FINANCING ACTIVITIES FROM
CONTINUING OPERATIONS
(1,735)
(11)
299
(1,447)
1,498
(633)
137
1,002
CASH FLOWS FROM/(USED IN)
FINANCING ACTIVITIES FROM
DISCONTINUED OPERATIONS
(72)
(32)
—
(104)
(98)
(367)
—
(465)
TOTAL
(1,807)
(43)
299
(1,551)
1,400
(1,000)
137
537
Translation exchange differences
(376)
(31)
—
(407)
407
8
—
415
E)
TOTAL CHANGE IN CASH AND
CASH EQUIVALENTS
(2,780)
13
—
(2,767)
3,589
267
—
3,856
Less: Cash and cash equivalent at
the end of year – included within
Assets held for distribution at the
end of the period
(822)
(195)
—
(1,017)
—
—
—
—
F)
CASH AND CASH EQUIVALENTS
AT END OF YEAR
4,514
1,331
—
5,845
8,116
1,513
—
9,629
(a)Cash from operating lease is recognized under operating activities in a single line item, which includes capital expenditure, depreciation, write-downs and changes in
inventory.
(1) Industrial Activities represents the enterprise without Financial Services. In the years ended December 31, 2021 and 2020, Industrial Activities included CNH Industrial's
Agriculture and Construction, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services; for both years, the cash flows arising from
the CNH Industrial's Commercial and Specialty Vehicles and Powertrain segments were classified and presented as a separate line items of cash flows from Discontinued
Operations.
(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.
At December 31, 2021, we had cash and cash equivalents of $6,862 million, a decrease of $2,767 million, or -28.7%,
from $9,629 million at December 31, 2020. Cash and cash equivalents at December 31, 2021 included $856 million
($844 million at December 31, 2020) of restricted cash that was reserved principally for the servicing of securitization-
related debt. At December 31, 2021, undrawn medium-term unsecured committed facilities were $5,224 million ($6,148
million at December 31, 2020) and other current financial assets were $63 million ($94 million at December 31, 2020).
At December 31, 2021, the aggregate of Cash and cash equivalents, undrawn medium-term unsecured committed
facilities and other current financial assets, which we consider to constitute our principal liquid assets (or "Available
liquidity"(1)), totaled $12,149 million ($15,871 million at December 31, 2020).
The change in cash and cash equivalents compared to December 31, 2020 is primarily due to cash outflow of $2.2
billion for the acquisition of 100% interest in Raven Industries, Inc., bond debt repayment of $1.7 billion (including $0.4
billion of notes repurchase), dividends paid of $0.2 billion, and $0.4 billion in translation exchange differences, partially
offset by free cash flow from Industrial Activities of $1.8 billion.
Net Cash from Operating Activities
Cash provided by operating activities in 2021 totaled $3,313 million ($2,675 million provided for Continuing Operations
and $638 million provided for Discontinued Operations) and comprised the following elements:
▪$1,777 million profit ($1,686 million profit for Continuing Operations and $91 million profit for Discontinued
Operations);
▪plus $1,209 million ($539 million for Continuing Operations and $670 million for Discontinued Operations) in non-cash
charges for depreciation and amortization (net of commercial vehicles sold under buy-back commitments and
operating leases);
▪plus $20 million ($19 million for Continuing Operations and $1 million for Discontinued Operations) in losses on the
disposal of assets and other non-cash items;
▪plus $8 million loss on repurchase of notes (all related to Continuing Operations);
▪plus $81 million ($61 million for Continuing Operations and $20 million for Discontinued Operations) in dividends
received;
▪minus change in deferred income taxes of $230 million (minus $281 million for Continuing Operations and plus  $51
million for Discontinued Operations), plus change in provisions of $434 million ($285 million for Continuing
Operations and $149 million for Discontinued Operations);
Board Report    Operating and Financial Review and Prospects    80
▪plus $58 million (all related to Discontinued Operations) for changes in items due to buy-back commitments and $162
million ($159 million for Continuing Operations and $3 million for Discontinued Operations) for changes in operating
lease items; and
▪minus $206 million (plus $199 million for Continuing Operations and minus $405 million for Discontinued Operations)
in change in working capital.
In 2020, cash provided by operating activities was $3,478 million ($2,841 million for Continuing Operations and $637
million for Discontinued Operations) as a result of cash generated from income-related inflows (calculated as profit plus
amortization and depreciation, dividends, changes in provisions and deferred taxes, various items related to sales with
buy-back commitments and operating leases, and goodwill impairment loss, net of gains/losses on disposals and other
non-cash items) for a total amount of $1,158 million ($1,312 million for Continuing Operations and $422 million for
Discontinued Operations), and of a $1,744 million ($1,529 million for Continuing Operations and $215 million for
Discontinued Operations) increase in cash resulting from an increase in working capital.
Net Cash from Investing Activities
In 2021, cash used by investing activities was $4,122 million ($4,001 million for Continuing Operations and $121 million
for Discontinued Operations), primarily due to  the cash out of $2,246 million for the acquisition of the 100% interest in
Raven Industries, Inc., and $82 million to acquire 90% interest in Sampierana (both related to Continuing Operations), 
investments in tangible and intangible assets of $1,189 million ($521 million for Continuing Operations and $668 million
for Discontinued Operations), including $475 million in capitalized development costs ($154 million for Continuing
Operations and $321 million for Discontinued Operations), net increase in receivables from financing activities
amounting to $982 million ($842 million for Continuing Operations and $140 million for Discontinued Operations) and
other changes of $227 million (minus $459 million for Continuing Operations and plus $686 million for Discontinued
Operations) due to change in intersegment receivables/payables. Investments in tangible and intangible assets are net
of investments in commercial vehicles for our long-term rental operations and of investments relating to vehicles sold
under buy-back commitments, which are reflected in cash flows relating to operating activities.
In 2020, cash used in investing activities totaled $574 million ($541 million for Continuing Operations and $33 million for
Discontinued Operations). Expenditures on tangible and intangible assets (including $364 million in capitalized
development costs, related for $162 million to Continuing Operations and $202 million related to Discontinued
Operations) totaled $848 million ($390 million for Continuing Operations and $458 million for Discontinued Operations).
Net decrease in receivables from financing activities amounted to $647 million ($401 million for Continuing Operations
and $246 million for Discontinued Operations), primarily due to a reduction in the wholesale portfolio.
(1) a non-GAAP financial measure as defined in section "Alternative performance measures (or “Non-GAAP financial measures”)" above.
Board Report    Operating and Financial Review and Prospects    81
The following table summarizes our investments in tangible assets (excluding assets sold with buy-back commitments
and assets leased on operating leases) by segment and investments in intangible assets for the years ended
December 31, 2021 and 2020:
($ million)
2021
2020
Agriculture
209
109
Construction
36
25
Total Industrial Activities investments in tangible assets
245
134
Industrial Activities investments in intangible assets
270
253
Total Industrial Activities capital expenditures
515
387
Financial Services investments in tangible assets
—
—
Financial Services investments in intangible assets
6
3
Total Capital expenditures - Continuing Operations
521
390
Total Capital expenditures - Discontinued Operations
668
458
Total Capital expenditures - CNHI Pre-Demerger
1,189
848
We incurred these capital expenditures in the regions in which we operate principally related to initiatives to introduce
new products, enhance manufacturing efficiency and increase capacity, and for maintenance and engineering. Capital
expenditures were higher than 2020 as expenditures returned to more normal levels from the pandemic-affected low
levels experienced last year.
Net Cash from Financing Activities
In 2021, cash used by financing activities totaled $1,551 million ($1,447million used in Continuing Operations and $104
million used in Discontinued Operations), primarily due to net payments on long-term debt and dividends paid, 
compared to $537 million provided in 2020 ($1,002 million provided for Continuing Operations and $465 million used for
Discontinued Operations), mainly attributable to a net increase in third party debt.
Capital Resources
The cash flows, funding requirements and liquidity of CNH Industrial are managed on a standard and centralized basis.
This centralized system is designed to optimize the efficiency and effectiveness of our management of capital
resources. 
Our subsidiaries participate in a company-wide cash management system, which we operate in a number of
jurisdictions. Under this system, the cash balances of our subsidiaries are aggregated at the end of each business day
to central pooling accounts. The centralized treasury management offers financial and systems expertise in managing
these accounts, as well as providing related services and consulting to our business segments.
Our policy is to keep a high degree of flexibility with our funding and investment options in order to maintain our desired
level of liquidity to achieve our rating targets while improving the Group capital structure over time. In managing our
liquidity requirements, we are pursuing a financing strategy that aims at extending over time our Industrial Activities
debt profile by issuing long-term bonds and retiring short-term debt through opportunistic transactions, deleveraging our
Industrial Activities balance sheet by reducing gross debt, and diversifying funding sources.
A summary of our strategy is set forth below:
▪Industrial Activities sells certain of its receivables to Financial Services and relies on internal cash flows including
managing working capital to fund its near-term financing requirements. We will also supplement our short-term
financing by drawing on existing or new facilities with banks.
▪To the extent funding needs of Industrial Activities are determined to be of a longer-term nature, we will access public
debt markets as well as private investors and banks, as appropriate, to refinance borrowings and replenish our
liquidity.
Financial Services’ funding strategy is to maintain a sufficient level of liquidity and flexible access to a wide variety of
financial instruments. While we expect securitizations and sale of receivables (factoring) to continue to represent a
material portion of our capital structure and intersegment borrowings to remain a marginal source of funding, we will
continue to diversify our funding sources and expand our investor base within Financial Services to support our
investment grade credit ratings. These diversified funding sources include committed asset-backed facilities, unsecured
notes, bank facilities and, in an effort to further diversify funding sources and reduce the average cost of funding,
Financial Services has implemented commercial paper programs, both in the U.S. and Europe.
Board Report    Operating and Financial Review and Prospects    82
On a global level, we will continue to evaluate alternatives to ensure that Financial Services has access to capital on
favorable terms to support its business, including agreements with global or regional partners, new funding
arrangements or a combination of the foregoing. Our access to external sources of financing, as well as the cost of
financing, is dependent on various factors, including our credit ratings.
On January 4, 2022 Fitch Ratings raised its Long-Term Issuer Default Rating on CNH Industrial N.V. to ‘BBB+’ from
‘BBB-’. Fitch also upgraded CNH Industrial Finance Europe S.A.’s senior unsecured rating to ‘BBB+’ from ‘BBB-'. The
Outlook is Stable. On January 7, 2022 Fitch has upgraded the Long-Term Issuer Default Ratings and senior unsecured
debt ratings of CNH Industrial Capital LLC (CNHI Capital) and CNH Industrial Capital Canada Ltd. (CNH Canada) to
'BBB+' from 'BBB-'. The Rating Outlook is Stable. Fitch has also upgraded CNHI Capital's Short-Term IDR and
commercial paper (CP) ratings to 'F2' from 'F3'. On February 25, 2022, Moody's upgraded the senior unsecured ratings
of CNH Industrial N.V. and its supported subsidiaries including CNH Industrial Capital LLC, CNH Industrial Finance
Europe S.A., CNH Industrial Capital Australia Pty. Limited and CNH Industrial Capital Canada Ltd. to Baa2 from Baa3.
At the same time, Moody's withdrew CNHI Industrial Finance Europe S.A.'s short-term rating of (P)P-3. The Rating
Outlook is stable.The Company's long-term credit ratings remained unchanged at "BBB" from Standard & Poor's  with
stable outlook.
Current ratings for the Group are as follows:
CNH Industrial N.V.(1)
CNH Industrial Capital LLC
Long Term
Short Term
Outlook
Long Term
Short Term
Outlook
S&P
BBB
A-2
Stable
BBB
A-2
Stable
Fitch
BBB+
-
Stable
BBB+
F2
Stable
Moody’s
Baa2
-
Stable
Baa2
-
Stable
(1)  Includes treasury subsidiary, CNH Industrial Finance Europe S.A.
The Group’s debt is fully investment grade, which the Group believes will allow it to access funding at better rates.
A credit rating is not a recommendation to buy, sell or hold securities. Ratings may be subject to revision or withdrawal
at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating.
A deterioration in our ratings could impair our ability to obtain debt financing and would increase the cost of such
financing. Ratings are influenced by a number of factors, including, among others: financial leverage on an absolute
basis or relative to peers, the composition of the balance sheet and/or capital structure, material changes in earnings
trends and volatility, ability to dividend monies from subsidiaries and our competitive position. Material deterioration in
any one, or a combination, of these factors could result in a downgrade of our ratings, thus increasing the cost, and
limiting the availability, of financing.
Consolidated Debt
Total  Debt of the Group as of December 31, 2021 and 2020, is as detailed in the following table:
At December 31, 2021
At December 31, 2020
($ million)
Total
Industrial
Activities
Financial
Services
Total
Industrial
Activities
Financial
Services
Total Debt Continuing Operations
(21,689)
(6,849)
(15,987)
(26,618)
(8,798)
(19,722)
Total Debt Discontinued Operations
(2,566)
221
(3,522)
—
—
—
Total Debt of CNHI Pre-Demerger
(24,255)
(6,628)
(19,509)
(26,618)
(8,798)
(19,722)
We believe that Net Cash (Debt) (a non-GAAP financial measure as defined in the section "Alternative performance
measures (or “Non-GAAP financial measures”)" above) is a useful analytical metric for measuring our effective
borrowing requirements. We provide a separate analysis of Net Cash (Debt) of Industrial Activities and Net (Cash) Debt
of Financial Services to reflect the different cash flow management practices in the two businesses. Industrial Activities
reflects the consolidation of all subsidiaries, including those performing centralized treasury activities, except for
Financial Services. Financial Services reflects the consolidation of the Financial Services’ businesses.
Board Report    Operating and Financial Review and Prospects    83
The calculation of Net Cash (Debt) as of December 31, 2021 and 2020 and the reconciliation of Total (Debt), the EU-
IFRS financial measure that we believe to be most directly comparable, to Net Cash (Debt), for CNH Industrial Pre-
Demerger are shown below:
At December 31, 2021
At December 31, 2020
($ million)
Consolidated
Industrial
Activities
Financial
Services
Consolidated
Industrial
Activities
Financial
Services
Third party (debt)
(24,255)
(5,830)
(18,425)
(26,618)
(7,780)
(18,838)
Intersegment notes payable
—
(798)
(1,084)
—
(1,018)
(884)
Total (Debt)(1)
(24,255)
(6,628)
(19,509)
(26,618)
(8,798)
(19,722)
Cash and cash equivalents
6,862
5,336
1,526
9,629
8,116
1,513
Intersegment notes receivable
—
1,084
798
—
884
1,018
Net Derivative assets (liabilities)(2)
10
(25)
35
21
1
20
Other current financial assets(3)
63
63
—
94
94
—
Net Cash (Debt)(4)
(17,320)
(170)
(17,150)
(16,874)
297
(17,171)
(1)As a result of the role played by the central treasury, debt for Industrial Activities also includes funding raised by the central treasury on behalf of
Financial Services (included under Intersegment financial receivables). Intersegment notes receivable for Financial Services, on the other hand,
represent loans or advances to Industrial Activities – for receivables sold to Financial Services that do not meet the derecognition requirements – as
well as cash deposited temporarily with the central treasury. Total (Debt) of Industrial Activities includes Intersegment notes payable to Financial
Services of $798 million and $1,018 million as of December 31, 2021 and 2020, respectively. Total Debt of Financial Services includes Intersegment
notes payable to Industrial Activities of $1,084 million and $884 million as of December 31, 2021 and 2020, respectively.
(2)Net Derivative assets (liabilities)  include  the net  positive and negative fair values of derivative financial instruments.
(3)This item includes short-term deposits and investments towards high-credit rating counterparties.
(4)The net intersegment receivable/(payable) balance recorded by Financial Services relating to Industrial Activities was $-286 million and $134 million
as of December 31, 2021 and 2020, respectively.
Excluding exchange rate differences of $964 million, Net Debt at December 31, 2021 increased by $1,410 million
compared to December 31, 2020, mainly due to cash out of $2,246 million for the acquisition of the 100% interest in
Raven Industries, Inc., and $82 million to acquire 90% interest in Sampierana, $188 million for dividends, higher
Financial Services portfolio of $930 million, partially offset by strong Free Cash Flow of Industrial Activities and by
positive cash flow from Operating Activities of Financial Services.
The following table provides the breakdown for Continuing Operations and Discontinued Operations of the calculation
of Net Cash (Debt) as of December 31, 2021  and the reconciliation of Total (Debt) to Net Cash (Debt). Given the size
of the amounts involved, it has been considered appropriate to add the item Financial receivables and Financial
payable between Continuing and Discontinued Operations. As these items are intercompany, they have been
eliminated from the net debt presentation for CNH Industrial Pre-Demerger.
At December 31, 2021
At December 31, 2021
Continuing Operations
Discontinued Operations
($ million)
Total
Industrial
Activities
Financial
Services
Total
Industrial
Activities
Financial
Services
Third party (debt)
(21,186)
(5,581)
(15,605)
(3,069)
(249)
(2,820)
Net intersegment notes (payable)/
receivable
(503)
(1,268)
(382)
503
470
(702)
Total (Debt)
(21,689)
(6,849)
(15,987)
(2,566)
221
(3,522)
Cash and cash equivalents
5,845
4,514
1,331
1,017
822
195
Net intersegment notes receivable
—
992
155
—
92
643
Net Derivative assets (liabilities)(1)
2
(33)
35
8
8
—
Other current financial assets(2)
2
2
—
61
61
—
Net Cash (Debt)
(15,840)
(1,374)
(14,466)
(1,480)
1,204
(2,684)
(1) Net Derivative assets (liabilities)  include  the net  positive and negative fair values of derivative financial instruments.
(2)This item includes short-term deposits and investments towards high-credit rating counterparties.
Board Report    Operating and Financial Review and Prospects    84
The following table shows the change in Net Cash (Debt) of Industrial Activities for 2021 and 2020:
2021
2020
($ million)
CNHI Pre-
Demerger
Continuing
Operations
Discontinued
Operations
CNHI Pre-
Demerger
Continuing
Operations
Discontinued
Operations
Net Cash (Debt) of
Industrial Activities at
beginning of period
297
(1,132)
1,429
(1,403)
(2,866)
1,463
Adjusted EBIT of Industrial
Activities
2,086
1,729
357
416
517
(101)
Depreciation and
amortization
1,204
536
668
1,213
553
660
Depreciation of assets
under operating leases
and assets sold with buy-
back commitments
271
3
268
284
2
282
Cash interest and taxes
(559)
(376)
(183)
(233)
(144)
(89)
Changes in provisions and
similar(1)
302
490
(188)
(255)
144
(399)
Change in working capital
(173)
185
(358)
1,726
1,500
226
Operating cash flow of
Industrial Activities
3,131
2,567
564
3,151
2,572
579
Investments in property,
plant and equipment, and
intangible assets(2)
(1,180)
(515)
(665)
(845)
(387)
(458)
Other changes
(181)
(134)
(47)
(273)
(17)
(256)
Free Cash Flow of
Industrial Activities
1,770
1,918
(148)
2,033
2,168
(135)
Capital increases and
dividends(3)
(188)
(188)
—
(8)
(8)
—
Currency translation
differences and other(3)
(2,049)
(1,972)
(77)
(325)
(426)
101
Change in Net Cash (Debt)
of Industrial Activities
(467)
(242)
(225)
1,700
1,734
(34)
Net Cash (Debt) of
Industrial Activities at end
of year
(170)
(1,374)
1,204
297
(1,132)
1,429
(1)Including other cash flow items related to operating lease and buy-back activities.
(2)Excluding assets sold under buy-back commitments and assets under operating leases.
(3)In the year ended December 31, 2021, this item also includes  item includes the cash out of $2,246 million for the acquisition of the 100% interest in
Raven Industries, Inc., and $86 million for the acquisition of the 90% interest in Sampierana, as well as the charge of $8 million related to the
repurchase of Notes.
Board Report    Operating and Financial Review and Prospects    85
We believe that Free Cash Flow of Industrial Activities (a non-GAAP financial measure as defined in section "Alternative
performance measures (or “Non-GAAP financial measures”)" above) is a useful analytical metric for measuring the
cash generation ability of our Industrial Activities. In 2021, the Free Cash Flow of Industrial Activities was a positive of
$1,770 million  (positive of $1,918 million for Continuing Operations and negative $148 million for Discontinued
Operations) primarily due to the strong performance of the segments, partially offset by an increase in working capital
exacerbated by supply chain disruptions in the latter part of the year.
The reconciliation of Free Cash Flow of Industrial Activities to Net cash provided by (used in) Operating Activities, the
EU-IFRS financial measure that we believe to be most directly comparable, for the years ended December 31, 2021
and 2020, is shown below:
2021
2020
($ million)
CNHI Pre-
Demerger
Continuing
Operations
Discontinued
Operations
CNHI Pre-
Demerger
Continuing
Operations
Discontinued
Operations
Net cash provided by
(used in) Operating
Activities
3,313
2,675
638
3,478
2,841
637
Less: Cash flows from
Operating Activities of
Financial Services net
of eliminations and
other
(182)
(108)
(74)
(327)
(269)
(58)
Operating cash flow of
Industrial Activities
3,131
2,567
564
3,151
2,572
579
Investments in
property, plant and
equipment, and
intangible assets of
Industrial Activities
(1,180)
(515)
(665)
(845)
(387)
(458)
Other changes(1)
(181)
(134)
(47)
(273)
(17)
(256)
Free Cash Flow of
Industrial Activities
1,770
1,918
(148)
2,033
2,168
(135)
(1) This item primarily includes change in intersegment financial receivables and capital increases in intersegment investments.
The non-GAAP financial measures (Available liquidity, Net Cash (Debt) and Free Cash Flow of Industrial Activities)
used in this section should neither be considered as a substitute for, nor superior to, measures of financial performance
prepared in accordance with EU-IFRS. In addition, these non-GAAP financial measures may not be computed in the
same manner as similarly titled measures used by other companies.
Industrial Activities
Capital Markets
At December 31, 2021, we had an aggregate amount of $8.5 billion in bonds outstanding, of which $5.2 billion was
issued by Industrial Activities.
The capital markets debt of Industrial Activities mainly related to notes issued under the Euro Medium Term Note
Programme (and the notes issued under its predecessor, the Global Medium Term Notes Programme), and senior
unsecured debt securities issued by CNH Industrial N.V. described below.
Euro Medium Term Note (EMTN) Programme. We have a medium-term note programme allowing for the placement of
debt securities up to a total authorized amount of €10 billion ($12 billion). At December 31, 2021, €3,644 million ($4,127
million) was outstanding under the programme, all such debt having been issued by CNH Industrial Finance Europe
S.A. and guaranteed by CNH Industrial N.V.
CNH Industrial N.V. Senior Notes. In the United States, CNH Industrial N.V has issued notes from time to time. In 2016,
CNH Industrial N.V. issued $600 million of notes at an interest rate of 4.50% due August 2023 (the “2023 Notes”) at an
issue price of 100 percent of their principal amount, and, in 2017, CNH Industrial N.V. issued $500 million of notes at an
interest rate of 3.850% due November 2027 (the “2027 Notes”) at an issue price of 99.384% of their principal amount.
The 2023 Notes and the 2027 Notes are collectively referred to as the “CNH Industrial N.V. Senior Notes”.
The notes issued under the EMTN (and its predecessor the Global Medium Term Notes Programme) as well as the
CNH Industrial N.V. Senior Notes impose covenants and other obligations on CNH Industrial N.V. as issuer and, in
certain cases, as guarantor and CNH Industrial Finance Europe S.A. as issuer, including: (i) a negative pledge provision
which requires that, if any security interest over assets of the issuer or the guarantor is granted in connection with debt
Board Report    Operating and Financial Review and Prospects    86
that is, or is capable of being, listed or any guarantee is granted in connection with such debt, such security or
guarantee must be equally and ratably extended to the outstanding notes; (ii) a status (or pari passu) covenant, under
which the notes rank and will rank pari passu with all other present and future outstanding unsubordinated and
unsecured obligations of the issuer and/or the guarantor (subject to mandatorily preferred obligations under applicable
laws); (iii) an events of default provision setting out certain customary events (such as cross defaults, insolvency related
events, etc.) the occurrence of which entitles the holders of the outstanding notes to accelerate the repayment of the
notes; (iv) change of control provisions which, when combined with a rating downgrade of CNH Industrial N.V., grant the
note holders the right to require immediate repayment of the notes; and (v) other clauses that are generally applicable
to securities of a similar type. A breach of these obligations may require the early repayment of the notes. At
December 31, 2021, CNH Industrial was in compliance with the covenants of the notes issued under the EMTN (and its
predecessor the Global Medium Term Notes Programme) and the CNH Industrial N.V. Senior Notes. 
CNH Industrial intends to repay the issued bonds in cash at the due date by utilizing available liquid resources. In
addition, CNH Industrial companies may from time to time buy-back or enforce the available call options of their issued
bonds. Such buy-backs, if made, depend upon market conditions, the financial situation of CNH Industrial and other
factors which could affect such decisions.
Bank Debt
At December 31, 2021, Industrial Activities available committed unsecured facilities expiring after twelve months
amounted to $4.5 billion ($5.3 billion at December 31, 2020), all related to Continuing Operations.  
Euro 4 billion Revolving Credit Facility. In March 2019, the Company signed a five-year committed revolving credit
facility for €4 billion ($4.5 billion at March 31, 2019 exchange rate) due to mature in 2024 with two extension options of
1-year each, exercisable on the first and second anniversary of the signing date. CNH Industrial exercised the first of
the two extension options as of February 28, 2020 and the second extension option as of  February 26, 2021. The
facility is now due to mature in March 2026 for €3,950.5 million; the remaining €49.5 million will mature in March 2025.
The credit facility replaced a five-year €1.75 billion credit facility scheduled to mature in 2021 and includes:
▪customary covenants (including a negative pledge, a status (or pari passu) covenant and restrictions on the
incurrence of indebtedness by certain subsidiaries);
▪customary events of default (some of which are subject to minimum thresholds and customary mitigants), including
cross-default provisions, failure to pay amounts due or to comply with certain provisions under the loan agreement
and the occurrence of certain bankruptcy-related events; and:
▪mandatory prepayment obligations upon a change in control of CNH Industrial or the borrower;
▪a financial covenant (Net debt/EBITDA ratio relating to Industrial Activities). Such covenant is not applicable with the
current ratings levels.
CNH Industrial N.V. has guaranteed any borrowings under the revolving credit facility with cross-guarantees from each
of the borrowers (i.e., CNH Industrial Finance S.p.A., CNH Industrial Finance Europe S.A. and CNH Industrial Finance
North America Inc.). At December 31, 2021, CNH Industrial was in compliance with the covenants of the Revolving
Credit Facility.
Financial Services
Total Debt of Financial Services was $19.5 billion at December 31, 2021, compared to $19.7 billion at December 31,
2020.
Bank Debt
At December 31, 2021, Financial Services' available committed, unsecured facilities expiring after twelve months
amounted to $0.7 billion ($0.8 billion at December 31, 2020), of which 47 million related to Discontinued Operations. 
Asset-Backed Financing
At December 31, 2021, Financial Services’ committed asset-backed facilities expiring after twelve months amounted to
$3.9 billion ($3.9 billion at December 31, 2020), of which $2.8 billion was utilized at December 31, 2021 ($3.7 billion at
December 31, 2020). At December 31, 2021, Financial Services’ committed asset-backed facilities expiring after twelve
months related to Continuing Operations amounted to $3.0 billion, of which $2.0 billion was utilized at December 31,
2021.
We sell certain of our finance receivables to third parties in order to improve liquidity, to take advantage of market
opportunities and, in certain circumstances, to reduce credit and concentration risk in accordance with our risk
management objectives.
Board Report    Operating and Financial Review and Prospects    87
The sale of financial receivables is executed primarily through ABS transactions and involves mainly accounts
receivable from final (retail) customers and from the network of dealers (wholesale) to our Financial Services
subsidiaries.
At December 31, 2021, our receivables from financing activities included receivables sold and financed through both
ABS and factoring transactions of $12.5 billion ($13.2 billion at December 31, 2020), which do not meet derecognition
requirements and therefore are recorded on our consolidated statement of financial position. These receivables are
recognized as such in our financial statements even though they have been legally sold; a corresponding financial
liability is recorded in the consolidated statement of financial position as debt (see Note 17 “Current receivables and
Other current financial assets” to our Consolidated Financial Statements).
Capital Markets
On July 2, 2020, CNH Industrial Capital LLC issued $600 million of 1.950% notes due in 2023 at an issue price of
99.370% of their principal amount.
In August 2020, CNH Industrial Capital Argentina completed its first public offering for $31 million of notes due in 2023
and for ARS701 million ($8 million) due in 2021.
On October 6, 2020, CNH Industrial Capital LLC issued $500 million of 1.875% notes due in 2026 at an issue price of
99.761% of their principal amount.
In May 2021, CNH Industrial Capital LLC issued $600 million of 1.45% notes due in 2026 at an issue price of 99.208%
of their principal amount.
In July 2021, CNH Industrial Capital Australia Pty. Limited issued AUD200 million of 1.75% notes due in 2024 at an
issue price of 99.863% of their principal amount.
In September 2021, CNH Industrial Capital Australia Pty. Limited issued AUD50 million of 1.750% notes due in 2024 at
an issue price of 101.069% of their principal amount. This issue is a private placement.
In September 2021, CNH Industrial Capital Canada Ltd issued CAD$300 million of 1.500% notes due in 2024 at an
issue price of 99.936% of their principal amount.
Commercial Paper Programs
With the purpose of further diversifying its funding structure, CNH Industrial has established various commercial paper
programs. CNH Industrial Financial Services S.A. in Europe issued commercial paper under a program which had an
amount of $83 million outstanding at December 31, 2021 ($112 million at December 31, 2020).
Support Agreement in the Interest of CNH Industrial Capital LLC
CNH Industrial Capital LLC benefits from a support agreement issued by CNH Industrial N.V., pursuant to which CNH
Industrial N.V. agrees to, among other things, (a) make cash capital contributions to CNH Industrial Capital LLC, to the
extent necessary to cause its ratio of net earnings available for fixed charges to fixed charges to be not less than
1.05:1.0 for each fiscal quarter (with such ratio determined, on a consolidated basis and in accordance with U.S. GAAP,
for such fiscal quarter and the immediately preceding three fiscal quarters taken as a whole), (b) generally maintain an
ownership of at least 51% of the voting equity interests in CNH Industrial Capital LLC and (c) cause CNH Industrial
Capital LLC to have, as of the end of any fiscal quarter, a consolidated tangible net worth of at least $50 million. The
support agreement is not intended to be, and is not, a guarantee by CNH Industrial N.V. of the indebtedness or other
obligations of CNH Industrial Capital LLC. The obligations of CNH Industrial N.V. to CNH Industrial Capital LLC
pursuant to this support agreement are to the company only and do not run to, and are not enforceable directly by, any
creditor of CNH Industrial Capital LLC, including holders of the CNH Industrial Capital LLC’s notes or the trustee under
the indenture governing the notes. The support agreement may be modified, amended or terminated, at CNH Industrial
N.V.’s election, upon thirty days’ prior written notice to CNH Industrial Capital LLC and the rating agencies of CNH
Industrial Capital LLC, if (a) the modification, amendment or termination would not result in a downgrade of CNH
Industrial Capital LLC rated indebtedness; (b) the modification, amendment or notice of termination provides that the
support agreement will continue in effect with respect to the company’s rated indebtedness then outstanding; or (c)
CNH Industrial Capital LLC has no long-term rated indebtedness outstanding.
For more information on our outstanding indebtedness, see Note 24 “Debt” to our Consolidated Financial Statements.
Future Liquidity
We have adopted formal policies and decision-making processes designed to optimize the allocation of funds, cash
management processes and financial risk management. Our liquidity needs could increase in the event of an extended
economic slowdown or recession that would reduce our cash flow from operations and impair the ability of our dealers
and retail customers to meet their payment obligations. Any reduction of our credit ratings would increase our cost of
funding and potentially limit our access to the capital markets and other sources of financing.
Board Report    Operating and Financial Review and Prospects    88
We believe that funds available under our current liquidity facilities, those realized under existing and planned asset-
backed securitization programs and issuances of debt securities and those expected from ordinary course refinancing
of existing credit facilities, together with cash provided by operating activities, will allow us to satisfy our debt service
requirements for the coming year. At December 31, 2021, the Group had available committed, unsecured facilities
expiring after twelve months of $5.2 billion ($6.1 billion at December 31, 2020), of which $47 million related to
Discontinued Operations.
Financial Services securitized debt is repaid with the cash generated by the underlying amortizing receivables.
Accordingly, additional liquidity is not normally necessary for the repayment of such debt. Financial Services has
traditionally relied upon the term ABS market and committed asset-backed facilities as a primary source of funding and
liquidity. At December 31, 2021, Financial Services’ committed asset-backed facilities expiring after twelve months
amounted to $3.9 billion ($3.9 billion at December 31, 2020), of which $2.8 billion at December 31, 2021 ($3.7 billion at
December 31, 2020) were utilized. At December 31, 2021, Financial Services’ committed asset-backed facilities
expiring after twelve months related to Continuing Operations amounted to $3.0 billion, of which $2.0 billion was utilized
at December 31, 2021.
CNH Industrial continues to closely monitor its liquidity and capital resources for any potential impact that the COVID-19
pandemic may have on its operations. With the strong liquidity position at year-end and the demonstrated access to the
financial markets, CNH Industrial believes that its cash and cash equivalents, access to credit facilities and cash flows
from future operations will be adequate to fund its known cash needs during the COVID-19 pandemic.
If Financial Services were unable to obtain ABS funding at competitive rates, its ability to conduct its financial services
activities would be limited.
Off-Balance Sheet Arrangements
We use certain off-balance sheet arrangements with unconsolidated third parties in the ordinary course of business,
including financial guarantees. Our arrangements are described in more detail below. For additional information, see
Note 27 “Commitments and contingencies” to the CNH Industrial Consolidated Financial Statements.
Financial Guarantees
Our financial guarantees require us to make contingent payments upon the occurrence of certain events or changes in
an underlying instrument that is related to an asset, a liability or the equity of the guaranteed party. These guarantees
include arrangements that are direct obligations, giving the party receiving the guarantee a direct claim against us, as
well as indirect obligations, under which we have agreed to provide the funds necessary for another party to satisfy an
obligation.
CNH Industrial provided guarantees on the debt or commitments of third parties and performance guarantees mainly in
the interest of a joint venture totaling $527 million as of December 31, 2021.
Tabular Disclosure of Contractual Obligations
The following table sets forth for Continuing Operations our contractual obligations and commercial commitments with
definitive payment terms that will require significant cash outlays in the future, as of December 31, 2021:
At December 31, 2021
($ million)
within one
year
between one
and three
years
between
three and five
years
beyond five
years
Total
Contractual obligations(1)
Debt obligations (2):
Bonds
764
3,417
2,515
1,853
8,549
Borrowings from banks
1,170
767
236
80
2,253
Asset-backed financing
4,825
2,892
1,126
32
8,875
Other debt(3)
1,178
533
78
27
1,816
Undiscounted lease payments
61
72
46
39
218
Purchase obligations
95
—
—
—
95
Total Contractual obligations
8,093
7,681
4,001
2,031
21,806
(1)Reserves for uncertain tax positions are not included within this table as the timing and ultimate uncertainty of settlement with the relevant taxing
authorities is not known.
(2)Amounts presented exclude the related interest expense that will be paid when due. The table above does not include obligations for pension plans,
health care plans, other post-employment benefits and other employee benefits. Our best estimate of expected contributions in 2022 to pension plans
is $53 million. Potential outflows in the years after 2022 are subject to a number of uncertainties, including future asset performance and changes in
assumptions, and therefore we are unable to make sufficiently reliable estimates of future contributions beyond 2022.
(3) Included $503 million of net financial payables to Discontinued Operations, mainly paid in January 2022.
Board Report    Operating and Financial Review and Prospects    89
Debt Obligations
For information on our debt obligations, see “Capital Resources” above and Note 24 “Debt” to the CNH Industrial
Consolidated Financial Statements.
The debt obligations reflected in the table above can be reconciled to the amount in the December 31, 2021
consolidated statement of financial position as follows:
At December 31, 2021
($ million)
Note
Debt reflected in the consolidated statement of financial position
(24)
21,689
Less:Lease liabilities
(24)
(196)
Total Debt obligations
21,493
The amount reported as debt obligations in the table above consists of our bonds, borrowings from banks, asset-
backed financing and other debt (excluding undiscounted lease payments, which are reported in a separate line item in
the table above).
Undiscounted Lease Payments
Our assets under lease agreements consist mainly of industrial buildings and plant, machinery and equipment used in
our businesses. The amounts reported above include the minimum future lease payments and payment commitments
due under such leases.
Purchase Obligations
Our purchase obligations at December 31, 2021, included commitments to purchase tangible fixed assets, largely in
connection with planned capital expenditures.
Board Report    Operating and Financial Review and Prospects    90
RISK MANAGEMENT AND CONTROL
SYSTEM
CNH INDUSTRIAL RISK MANAGEMENT
Risk management is an important component of CNH Industrial’s overall culture and is integral to the achievement of its
long-term business plan. Accordingly, our Enterprise Risk Management (“ERM”) process has been designed to assist in
the identification, evaluation and prioritization of business risks (including environmental, social, and governance)
followed by a coordinated and balanced application of resources to minimize, monitor, and control the probability or
impact of adverse events or to maximize the realization of opportunities.
CNH Industrial's ERM process is based on the framework published by the Committee of Sponsoring Organizations of
the Treadway Commission (“COSO”), as well as the principles of the Dutch Corporate Governance Code, and adapted
for specific business requirements by incorporating Company management knowledge and best practices identified by
third-party risk consulting firms.
Through this process, CNH Industrial has identified 43 primary enterprise risks, further broken down into 121 specific
risk drivers. Primary risk drivers include a number of significant topics, such as business strategies and operations,
competitive factors, social responsibility and environmental issues, and regulatory compliance. The process follows a
bottom-up analysis starting at the business unit level, with risk survey completion by business and function leaders
worldwide, followed by cross-functional reviews, one-on-one interviews with Senior Leadership Team ("SLT") members,
presentations and risk assessment discussions with the Audit Committee of the Board of Directors, and review and
discussion with the Board of Directors. Direct feedback received from each of these layers up to and including the
Board of Directors is then used to identify and develop risk mitigation activities as necessary within the business or
functional area, which are deployed by management.
Inherently, our risk management process is not meant to provide a guarantee of the accuracy or completeness of the
risk assessments performed or on the full achievement of CNH Industrial’s objectives. CNH Industrial’s potential overall
risk exposure is described in the Risk Factors section.
RISK MITIGATION ACTIVITIES
The risk mitigation activities initiated by management are designed to mitigate adverse impacts to CNH Industrial’s
business plan, including financial and operational performance, during 2021 and beyond. The ERM process is linked
with our Sustainability Program and its strategic sustainability targets, our aspirational goals articulated in the strategic
business plan and our employee and customer safety goals. These targets and goals, which are incorporated into the
individual segment business plans, provide a framework to address the long-term challenges to increasing stakeholder
value and proactively mitigate associated risks.
For example, a worldwide supply chain disruption is among the key risk areas identified this year through the ERM
process, as further discussed within the Risk Factors section of this Report. Such risks have been integrated into our
ERM process to help the business stay ahead of preventable disruptions and seize opportunities when identified.
Mitigating actions that the Company has taken for this supply chain risk include, for example, continuous monitoring
and communication with key suppliers to anticipate production requirements, potential supply gaps and other concerns
to limit the impact of supply shortages.
Our ERM process also monitors emerging risks, which we define as new risks or risks for which the impacts are
unknown or evolving and thus may be incorporated into risk assessment and mitigation activities when deemed
necessary. For example, the effects of climate change, the COVID-19 pandemic and increased cybersecurity threats,
as described in the Risk Factors section, represent key emerging risks to CNH Industrial. Mitigation actions around
climate change include investments in technology as part of our decarbonization strategy, an initiative to reduce energy
consumption in our manufacturing processes, as discussed in detail in the "Taskforce on Climate-related Financial
Disclosures" section of this Report and in our Sustainability Report. In response to the new working environment
created by the COVID-19 pandemic, a dedicated global team has implemented smart working concepts across all
operations, including a number of initiatives to ensure employee safety while maintaining business continuity. In
addition, the Company has increased its efforts to minimize the likelihood or impact of cybersecurity threats. These
efforts include increased third-party penetration testing for both the Company’s internal systems and networks and for
the Company’s telematics-enabled products.
Board Report  Risk Management and Control System    91
RISK APPETITE
CNH Industrial’s risk appetite is set within risk taking and risk acceptance parameters driven by its business plan, Code
of Conduct, core principles and values, policies, and applicable laws. CNH Industrial’s ERM process includes a
structured risk management process to address key risks, with a delineated risk appetite applied to each of the risk
categories and risk areas as described below:
Risk Category
Description
Enterprise Risks
Risk Appetite
Long-term
Strategic risks
Create value
Strategic risks may
affect CNH Industrial’s
long-term strategic
business plan
performance targets,
innovation roadmap and
sustainability objectives.
Sociopolitical events,
macroeconomics,
competition, customer
demands, product portfolio,
technological innovation,
investments, commercial
policies, business
combinations, social
responsibility and
environment.
Taking into consideration
CNH Industrial
stakeholders’ interests,
CNH Industrial has a
medium-high appetite
concerning strategic risk,
meaning we are willing to
accept additional risk while
applying cost/benefit
considerations in pursuing
our long-term targets.
Short- and
Medium-
term
Operational risks 
Enhance value
Operational risks are
related to internal
processes, people and
systems, or external
events linked to the
actual operation of CNH
Industrial’s portfolio of
businesses.
Production capacity, logistics,
distribution channels, quality
control, purchasing, labor
relations, asset safeguarding,
intellectual property,
information technology,
cybersecurity, force majeure
and human rights.
CNH Industrial seeks to
minimize the occurrence
and consequences of
unforeseen operational
risks with a medium-low
appetite.
Financial &
Taxation risks
Enhance & protect
value
Financial risks include
uncertainty of returns
and the potential for
losses due to financial
performance.
Financial management, trade
financing, reporting of results
and tax implications.
CNH Industrial has a low
risk appetite with respect
to financial risks (such as
liquidity, market, foreign
exchange and interest rate
risks as explained in more
detail in Note 30 of the
Consolidated Financial
Statements).
Compliance risks
Protect value
Compliance risks cover
unanticipated failures to
comply with applicable
laws, regulations,
policies and
procedures.
EHS, tech & safety
regulations, regulatory
requirements, records
management & retention,
company funds, labor
regulations, contractual
obligations, ethics & integrity,
anti-corruption, antitrust/fair
competition, consumer
protection & product safety,
corporate compliance &
culture, misconduct reporting
& resolution, import/export
practices, privacy and third
parties.
CNH Industrial has an
averse risk appetite with
respect to compliance risks
and requires full
compliance.
Board Report  Risk Management and Control System    92
ENHANCEMENTS TO THE RISK MANAGEMENT PROCESS
The development and implementation of an effective and robust ERM process requires continuous evaluation and
improvement. As part of these efforts, CNH Industrial continues to enhance its risk management process, including the
ongoing rollout of targeted risk assessments conducted by subject matter experts within the business. These
assessments, which have more than doubled in quantity over the past twelve months, help identify important risk
exposures outside of predetermined risk tolerance levels and trigger the execution of new or previously identified risk
mitigation activities that are intended to reduce or, in certain cases, eliminate the risk exposures altogether. We have
also better aligned our oversight functions to improve the internal transparency of our risk profile and increase
efficiencies across Compliance, ERM, Internal Audit and Sarbanes-Oxley functions. Finally, we are in the process of
expanding our GRC software platform to provide more intuitive coverage of common high-risk areas such as
information technology and cybersecurity.
INTERNAL CONTROL SYSTEM
The Company has in place an internal control system, based on the model provided by COSO and the principles of the
Dutch Corporate Governance Code, which consists of a set of policies, procedures and organizational structures aimed
at identifying, measuring, managing, and monitoring the principal risks to which CNH Industrial is exposed. The system
is integrated within the organizational and corporate governance framework adopted by CNH Industrial and contributes
to the protection of corporate assets, as well as to ensuring the efficiency and effectiveness of business processes,
reliability of financial information, and compliance with laws, regulations, the Company’s Code of Conduct, policies, and
internal procedures.
The system, which has been developed on the basis of international best practices, consists of the following three lines:
▪Management:
1.operating areas, which identify and assess risk and establish specific actions for management of such risk;
2. central functions responsible for risk control, which define methodologies and instruments for managing and
monitoring such risk.
▪Internal Audit:
3. conducts independent evaluations of the system in its entirety.
Board Report  Risk Management and Control System    93
Principal Characteristics of the Internal Control System and Internal Control over Financial Reporting
CNH Industrial has in place a system of risk management and internal control over financial reporting based on the
model provided by COSO, according to which the internal control system is defined as a set of rules, procedures and
tools designed to provide reasonable assurance of the achievement of corporate objectives. In relation to the financial
reporting process, reliability, accuracy, completeness and timeliness of the information contribute to the achievement of
such corporate objectives. Risk management is an integral part of the internal control system. A periodic evaluation of
the system of internal control over financial reporting is designed to ensure the overall effectiveness of the components
of the COSO Framework (Governance & Culture; Strategy & Objective-Setting; Performance; Review & Revision; and
Information, Communication, & Reporting) in achieving those objectives.
CNH Industrial – which is listed on the NYSE and, consequently, is subject to Section 404 of the U.S. Sarbanes-Oxley
Act since 2014 – has a system of administrative and accounting procedures in place that seeks to ensure a highly
reliable system of internal control over financial reporting.
The approach adopted by CNH Industrial for the evaluation, monitoring and continuous updating of the system of
internal control over financial reporting, is based on a ‘top-down, risk-based’ process consistent with the COSO
Framework. This enables focus on areas of higher risk and/or materiality, where there is risk of significant errors,
including those attributable to fraud, in the elements of the financial statements and related documents. The key
components of the process are:
▪identification and evaluation of the source and probability of significant errors in elements of financial reporting;
▪assessment of the adequacy of key controls in enabling ex-ante or ex-post identification of potential misstatements in
elements of financial reporting; and
▪verification of the operating effectiveness of controls based on the assessment of the risk of misstatement in financial
reporting, with testing focused on areas of higher risk.
Identification and evaluation of the risk of misstatements which could have material effects on financial reporting is
carried out through a risk assessment process that uses a top-down approach to identify the organizational entities,
processes and the related accounts, in addition to specific activities, which could potentially generate significant errors.
Under the methodology adopted by CNH Industrial, risks and related controls are associated with the accounting and
business processes upon which accounting information is based.
Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31,
2021, using the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission. Based on that assessment, management believes that, as of
December 31, 2021, the Company’s internal control over financial reporting was effective.
Board Report  Risk Management and Control System    94
CORPORATE GOVERNANCE
INTRODUCTION
CNH Industrial is a company, organized under the laws of the Netherlands, and results from a business combination
with Fiat Industrial S.p.A. and CNH Global N.V. consummated on September 29, 2013 (the “Merger”). CNH Industrial
qualifies as a foreign private issuer under the rules and regulations of the SEC and the New York Stock Exchange
(“NYSE”) Listing Standards. Its common shares are listed on the NYSE and on the Mercato Telematico Azionario
(“Euronext Milan”), managed by Borsa Italiana S.p.A.
CNH Industrial has adopted, except as discussed below, the best practice provisions of the Dutch Corporate
Governance Code (the “DCGC”), which contains principles and best practice provisions that regulate relations between
the board of directors of a listed Dutch company and its shareholders. In accordance with the NYSE Listed Company
Manual, CNH Industrial as a listed company and foreign private issuer is permitted to follow home country practice with
regard to certain corporate governance standards, whereas with respect to other corporate governance standards it is
bound to comply with certain other provisions of the NYSE Listed Company Manual.
The DCGC is focused on companies with a two-tier governance structure. Since the Merger; however, the Company
has adopted (as permitted by the DCGC) a one-tier governance structure. This choice of a one-tier governance
structure necessitated the implementation of certain governance solutions that are not typical of two-tier board
frameworks (see Chapter 5 of the DCGC).
In this Annual Report CNH Industrial discusses its overall corporate governance structure. The Company discloses in
this Annual Report, and intends to disclose in its future annual reports, any material departure from the best practice
provisions of the DCGC.
BOARD OF DIRECTORS
Pursuant to CNH Industrial’s Articles of Association (“Articles of Association”), the Board of Directors may have three or
more members. The current slate of Directors was appointed by the Company’s shareholders at the Annual General
Meeting of Shareholders (“AGM”) on April 15, 2021. Pursuant to Article 13(3) of the Articles of Association, the term of
office of all Directors shall be for a period of approximately one year after appointment, such period expiring on the day
the first AGM is held in the following year. Accordingly, the term of office of the current Board of Directors expires on
April 13, 2022, the anticipated date of the Company’s next AGM at which shareholders will appoint the Company’s
Directors. Each Director may be re-appointed at any subsequent AGM.
The Board as a whole has collective responsibility for the strategy of the Company. During 2021, the Board reviewed
and discussed with management, among other things, the Company's updated Strategic Business Plan, the continued
impact of the COVID-19 pandemic on Company operations, the Company's Strategic Business Plan, and the long-term
value creation strategies of all of the Company’s individual business segments and regions.
The Non-Executive Directors believe that in consideration of the size of the Company, the complexity and specific
characteristics of the segments in which it operates and the worldwide presence of its business, the Board of Directors
should be composed of individuals with skills, experience and cultures, both general and specific, acquired in an
international environment, not only in relation to the capital goods industry but also with respect to general
macroeconomics and market globalization issues, as well as the industrial and financial sectors. An adequate and
diversified mix of skills, expertise and other diversity factors (such as gender, race, ethnicity, and country of origin or
nationality) are necessary prerequisites to achieve a Board having the appropriate diversification and collegial
capabilities. There should also be an appropriate balance between the number of Executive Directors and Non-
Executive Directors. Moreover, independent Directors have an essential role in protecting the interests of all
stakeholders. Their contribution is also necessary for the proper composition and functioning of the Board Committees,
whose advisory functions include preliminary examination and formulation of proposals relating to areas of potential
risk, such as prevention of potential conflicts of interest. In addition, with regard to diversity, it is generally recognized
that more diverse boards are more effective in performing their monitoring and advisory activities, due to the variety of
professional experience, perspectives, insights, skills and connections to the outside world that diversity can add. While
the Board believes its members are reasonably diverse, it recognizes that more can be done. Accordingly, the Board
will continue to actively seek diverse candidates for possible appointment to the Board. The Board has, however,
elected not to adopt a formal diversity policy. The Board has in the past and expects to continue to utilize the services of
executive search firms to assist in the identification of qualified and diverse candidates for nomination for appointment
to the Board.
Board Report  Corporate Governance    95
Board Report  Corporate Governance    96
Board Report  Corporate Governance    97
Considering the foregoing factors and the attributes of the individual Directors, the Board of Directors considers itself a
reasonably diverse body, well-suited to fulfilling its duties. None of the members of the Board of Directors has a familial
relationship with any other Director. The Environmental, Social, and Governance Committee periodically assesses the
skills, experience and other attributes of the individual Directors with a view toward ensuring an appropriate level of
diversity and ensuring the Directors have the necessary expertise to fulfill their respective duties. In 2021, the
Environmental, Social, and Governance Committee conducted such an assessment in connection with its evaluation of
candidates to be recommended to the Board for nomination of (re)appointment as a Director.
The Composition of the Board of Directors: Guidelines are available on the Company’s website, www.cnhindustrial.com.
The Board of Directors is currently composed of two Executive Directors (i.e., who have been granted the title “Chair”
and “Chief Executive Officer”), having responsibility for the day-to-day management of the Company, and seven Non-
Executive Directors, who have responsibility with respect to the Board’s oversight function. Under Article 16 of the
Articles of Association, the general authority to represent CNH Industrial shall be vested in the Board of Directors, as
well as in each of the Executive Directors to whom the title Chair or Chief Executive Officer has been granted. Six
Directors (70%) qualified as independent under the NYSE Listing Standards and best practice provision 2.1.8 of the
DCGC. The composition of the Non-Executive Directors is such that they are able to operate independently and
critically with respect to one another, the Executive Directors, and any other particular interest involved; and in
accordance with best practice provision 2.1.7 of the DCGC.
Pursuant to Article 14(2) of the Articles of Association, the Chairperson of the Board of Directors as referred to by law
shall be a Non-Executive Director with the title “Senior Non-Executive Director”. On April 15, 2021 the Board of
Directors appointed Mr. Léo W. Houle as Senior Non-Executive Director for purposes of best practice provision 5.1.3,
and in compliance with best practice provision 2.1.9, of the DCGC. The Senior Non-Executive Director is responsible for
the proper functioning of the Board of Directors and its Committees.
On September 9, 2013, the Board of Directors of the Company appointed the following internal committees: (i) an Audit
Committee, (ii) a Human Capital and Compensation Committee, and (iii) an Environmental, Social, and Governance
Committee.
On certain key industrial matters, the Board of Directors is advised by the Company's Senior Leadership Team ("SLT").
The SLT is an operational decision-making body of CNH Industrial, which is responsible for reviewing the operating
performance of the segments and making decisions on certain operational matters.
All Board members are expected to attend not less than 75% of all Board and Committee meetings. In addition, Non-
Executive Directors are limited to being on not more than four (4) boards of other public companies.
The Board met nine times during 2021. The following chart shows the 2021 Board members and their attendance at
Board meetings.
Board Member
Heywood
Houle
Buffett
Erginbilgic(1)
Lanaway
Nasi
Simonelli(1)
Sørensen
Wine
Attendance %
100%
100%
100%
100%
100%
100%
100%
100%
100%
(1)At the Company's Extraordinary General Meeting of Shareholders held on December 23, 2021, the shareholders approved the
appointment of two new non-executive directors, Ms. Catia Bastioli and Ms. Asa Tamsons, who replaced Mr. Tufan Erginbilgic and
Mr. Lorenzo Simonelli (who, in turn, joined Iveco Group N.V. board of directors).
The Directors consider the evaluation of the Board, its Committees and members to be an important aspect of
corporate governance. Each year, under the oversight of the Governance and Sustainability Committee and with the
assistance of the Corporate Secretary, the Board undertakes an annual evaluation of its own effectiveness and
performance, and that of the Committees and individual Directors. In 2021 the evaluation of the Board and its
Committees consisted of a self-assessment by each of the directors facilitated by a written questionnaire. The
questionnaire covers key functions such as composition of the Board, collegiality, information, oversight and
involvement, and effectiveness of the Committees, and are designed to promote a robust and comprehensive
performance assessment discussion. The Chair met with each of the Directors to discuss the performance of the Board,
the Committees, and individual directors. The Board of Directors discusses the results of such performance
assessment, in executive session, and agrees upon actions to take advantage of identified opportunities for
improvement. On the recommendation of the Environmental, Social, and Governance Committee, the Board intends to
periodically engage a third party to facilitate the annual performance assessment.
The current composition of the Board of Directors is the following:
▪Suzanne Heywood, Chair (Executive-Director)
Suzanne Heywood became a Managing Director of Exor in 2016. Prior to that she worked at McKinsey &
Company which she joined as an associate in 1997 and left as a Senior Partner (Director) in 2016. Suzanne
Board Report  Corporate Governance    98
co-led McKinsey's global service line on organization design for several years and also worked extensively on
strategic issues with clients across different sectors. She has published a book, “Reorg,” and multiple articles
on these topics and has also acted as a visiting lecturer at Tsinghua University in Beijing. Suzanne started her
career in the U.K. Government as a Civil Servant in the U.K. Treasury. At the Treasury she worked as Private
Secretary to the Financial Secretary (who is responsible for all direct taxation issues) as well as leading
thinking on the Government's privatization policy and supporting the Chancellor in his negotiations at ECOFIN
(the meeting of European Finance Ministers) in Brussels. Prior to that she studied science at Oxford University
(BA) and then at Cambridge University (PhD). Lady Heywood is Chair of Iveco Group N.V., and Shang Xia.
She is also a non-executive director of Juventus, Louboutin and The Economist, Deputy Chair of the Royal
Opera House and a director of the Royal Academy of Arts Trust. She grew up sailing around the world for ten
years on a yacht with her family recreating Captain James Cook's third voyage around the world. Born in 1969,
British citizenship. Date of first appointment: April 15, 2016.
▪Scott W. Wine, Chief Executive Officer (Executive-Director)
Scott W. Wine is the Chief Executive Officer of CNH Industrial and an executive director on the Company's
Board of Directors. Leading a workforce of over 35,000 across the globe, Mr. Wine assumes complete
accountability for the Company's results, whilst ensuring it delivers them in accordance with the highest ethical
standards. His focus is on best supporting CNH Industrial's dealers and customers through a diverse and
inclusive workforce, industry leading technology, exceptional safety and quality, and unmatched innovation. Mr.
Wine has an exceptional track record as a proven leader, with both considerable international experience
across a variety of industries, and extensive mergers and acquisitions expertise in the U.S., Europe and Asia.
Prior to joining CNH Industrial in 2021, he was Chairman and CEO of Polaris Inc., a manufacturer of off-road
vehicles, electric cars, motorcycles, snowmobiles and boats. He joined Polaris in 2008 as Chief Executive
Officer and was named Chairman in 2013. In 2007, Mr. Wine joined UTC Fire and Security, a subsidiary of
United Technologies Corporation, as President of Fire Safety America. From 2003 to 2007 he held positions of
increasing importance across a range of Danaher Corporation companies, serving as President of Jacobs
Vehicle Systems, a commercial truck braking systems manufacturer, from 2003 until 2006, when he became
President of The VeederRoot Co., a manufacturer of fuel-tank measuring equipment. In 1996 Mr. Wine joined
Allied Signal Corp, a US aerospace, automotive and engineering company. Following its 1999 acquisition of
Honeywell, in 2001 Wine assumed the role of Managing Director of Honeywell Aerospace GmbH, based in
Germany, before being appointed Vice President of the European Engine Services Division. From 1989 to
1996 he served as a supply officer in the United States Navy. Mr. Wine holds an MBA from the University of
Maryland and a bachelor's degree from the United States Naval Academy. He serves on the Boards of US
Bancorp and the U.S. Naval Academy Foundation. Born in 1967, he holds American citizenship. Date of first
appointment: April 15, 2021.
▪Catia Bastioli, Director (Non-Executive Director—independent), Member of the Environmental, Social, and
Governance Committee, Member of the Human Capital and Compensation Committee
Catia Bastioli is the CEO of Novamont, an international leader in the bioplastics sector and in the development
of biochemicals. Ms. Bastioli joined Novamont in 1991, initially as its technical director, before being appointed
general manager and subsequently CEO. During her tenure as CEO she has transformed Novamont from a
research center into a reference company in the field of Circular Bioeconomy. Ms. Bastioli started her career at
Montedison, Italy's largest chemical group, helping found the Fertec Research Center for renewable raw
materials, with Fertec merging with Novamont in 1991. Ms. Bastioli has been a member of European Union
High Level Groups on climate change, the environment and renewable raw materials – such as the High-Level
Panel on Decarbonization Pathways Initiative and the Mission Board on Soil Health and Food. She is the first
inventor of about 80 patent families in the sector of biopolymers and transformation processes of renewable
raw materials, and was named European Inventor of the Year in 2007 for her inventions related to starch-
based bioplastics between 1991-2001. Ms. Bastioli served as the President of Terna S.p.A., the first grid
operator for electricity transmission in Europe, from 2014 – 2020, is a former Board Member of the charitable
Fondazione Cariplo, is the CEO of the Italian Cluster of Circular Bioeconomy SPRING and is the President of
the Kyoto Club Association – a non-profit organization which raises awareness about the importance of the
green and circular economy in order to reach the goals of the Paris Agreement. Ms. Bastioli attended the
University of Perugia in Italy and obtained a Master's degree in Chemistry and a Master from the Business
Management School Luigi Bocconi University in Milan, Italy. She was also granted an Honorary Doctoral
Degree in Civil, Chemical, Environmental and Materials Engineering by “Alma Mater Studiorum” University of
Bologna, Italy (2019), a Honoris Causa Degree in Business Economics by University of Foggia, Italy (2018), a
Honoris Causa Degree in Materials Engineering by University of Palermo, Italy (2016) and a Honoris Causa
Degree in Industrial Chemistry by the University of Genoa, Italy (2008). In 2017 she was given the honorary
title of Knighthood “Cavaliere del Lavoro” by the President of the Italian Republic Sergio Mattarella. Born in
1957, Italian citizenship. Date of first appointment: December 23, 2021.
Board Report  Corporate Governance    99
▪Howard W. Buffett, Director (Non-Executive Director—independent), Member of the Environmental, Social,
and Governance Committee, Member of the Human Capital and Compensation Committee
Howard W. Buffett was appointed Director of CNH Industrial in April 2020. He is a Professor at Columbia
University's School of International and Public Affairs in New York, U.S.A., with research focused on ESG,
sustainability, and impact measurement and management. He also serves on the Advisory Committee on
Socially Responsible Investing, which advises the University's $14 billion endowment on social and
environmental investment policies. Previously he was a Professor of Practice at the College of Agricultural
Sciences and Natural Resources at the University of Nebraska-Lincoln, U.S.A. Earlier in his career, Howard W.
Buffett was the Executive Director of the Howard G. Buffett Foundation. He also held a variety of roles in the
U.S. government, including in the U.S. Department of Defense, where he oversaw economic stabilization and
redevelopment programs in Iraq and Afghanistan. For his work in Afghanistan, he received the Joint Civilian
Service Commendation Award. Howard W. Buffett also served as Policy Advisor for the White House Domestic
Policy Council and in the Office of the Secretary at the U.S. Department of Agriculture. Howard W. Buffett
serves on several Corporate Boards and Advisory Boards including Toyota Motor North America, Inari
Agriculture, REEF Technology, S2G Ventures, and State Book International. He chairs the Advisory Council for
Harvard University's International Negotiation Program and serves on several nonprofit Advisory Boards,
including the Daugherty Water for Food Global Institute, the Learning by Giving Foundation, and the Chicago
Council on Global Affair's Center on Global Food and Agriculture Panel of Advisors. Howard W. Buffett is also
a former Term Member of the Council on Foreign Relations. A New York Times bestselling author, Howard W.
Buffett holds a Bachelor of Science in Communications Science and Political Science from Northwestern
University, U.S.A., a Master's in Public Policy and Administration in Advanced Management and Finance from
Columbia University, U.S.A., and executive education certificates from Harvard Business School, U.S.A. Born
in 1983, U.S. citizenship. Date of first appointment: April 16, 2020.
▪Léo W. Houle, Director (Senior Non-Executive Director—independent), Chairperson of the Human Capital and
Compensation Committee, Member of the Environmental, Social, and Governance Committee
Mr. Houle was a Director of CNH Global N.V. from April 7, 2006 until the merger of the company into CNH
Industrial. On September 6, 2011, Mr. Houle was appointed to the Board of Directors of Chrysler Group LLC
now known as FCA US LLC until June 2016 when all public debt of the company was repaid and its public
listing ceased. Mr. Houle was Chief Talent Officer of BCE Inc. and Bell Canada, Canada’s largest
communications company, from June 2001 until his retirement in July 2008. Prior to joining BCE and Bell
Canada, Mr. Houle was Senior Vice-President, Corporate Human Resources of Algroup Ltd., a Swiss-based
diversified industrial company. From 1966 to 1987, Mr. Houle held various managerial positions with the Bank
of Montreal, the last of which was Senior Manager, Human Resources, Administration Centers. In 1987, Mr.
Houle joined the Lawson Mardon Group Limited and served as Group Vice-President, Human Resources until
1994 when Algroup Ltd. acquired Lawson Mardon Group at which time he was appointed Head of Human
Resources for the packaging division of Algroup and in 1997 Head of Corporate Human Resources of Algroup,
Ltd. Mr. Houle completed his studies at the College Saint Jean in Edmonton, attended the Executive
Development Program in Human Resources at the University of Western Ontario in 1987 and holds the
designation of Certified Human Resources Professional (CHRP) from the Province of Ontario. Born in 1947,
Canadian citizenship. Date of first appointment: September 29, 2013.
▪John Lanaway, Director (Non-Executive Director—independent), Chairperson of the Audit Committee
Mr. Lanaway was elected a director of CNH Industrial N.V. in September 2013. Mr. Lanaway previously served
as a director of CNH Global N.V. from 2006 to 2013. On September 6, 2011, Mr. Lanaway was appointed to
the Board of Directors of Chrysler Group LLC now known as FCA US LLC until June 2016 when all public debt
of the company was repaid and its public listing ceased. His work and academic background includes: 2011–
Present, independent consultant; 2007-2011, Executive Vice President and Chief Financial Officer, North
America at McCann Erickson; 2001-2007, various positions of increasing responsibility at Ogilvy North
America, finally as Senior Vice President and Chief Financial Officer; 1999-2001, Chief Financial Officer and
Senior Vice President at Geac Computer Corporation Limited; 1997-1999, Chief Financial Officer at
Algorithmics Incorporated; 1995-1997, Senior Vice President and Chief Financial Officer at Spar Aerospace;
1993-1994, Sector Vice President, Labels North America at Lawson Mardon Group Limited; 1989-1993, Group
Vice President and Chief Financial Officer at Lawson Mardon Group Limited; 1988-1989, General Manager at
Lawson Mardon Graphics; 1985-1988, Vice President, Financial Reporting and Control at Lawson Mardon
Group Limited; 1980-1985, Client Service Partner at Deloitte; and 1971-1980 Student-Staff Accountant-
Supervisor-Manager at Deloitte. Mr. Lanaway graduated from the Institute of Chartered Accountants of
Ontario, C.A. and has a Bachelor of Arts degree from the University of Toronto. Born in 1950, American,
Canadian and British citizenship. Date of first appointment: September 29, 2013.
▪Alessandro Nasi, Director (Non-Executive Director), Chairperson of the Environmental, Social, and
Governance Committee, Member of the Human Capital and Compensation Committee
Board Report  Corporate Governance    100
Alessandro Nasi started his career as a financial analyst in several banks, gaining experience at Europlus
Asset Management, a division of UniCredit in Dublin, Ireland, PricewaterhouseCoopers in Turin, Italy, Merrill
Lynch and JP Morgan in New York, USA. He also worked as an Associate in the Private Equity Division of JP
Morgan Partners in New York, USA. Mr. Nasi joined the Fiat Group in 2005 as manager of Corporate and
Business Development, heading the APAC division and supporting Fiat Group sectors in Asia Pacific. In 2007,
Mr. Nasi was appointed Vice President of Business Development and a member of the Steering Committee of
Fiat Powertrain Technologies. In 2008, he joined CNH in the role of Senior Vice President of Business
Development and from 2009 to 2011 he also served as Senior Vice President of Network Development. In
January 2011, he was also appointed Secretary of the Industrial Executive Council of Fiat Industrial, continuing
in the role of Executive Coordinator to the successor Group Executive Council of CNH Industrial until January
2019. In 2013 he was appointed President Specialty Vehicles, a role he held until January 2019. Mr. Nasi is a
Director of Giovanni Agnelli B.V., Vice Chairman of the Board of Directors of EXOR N.V., Chairman of Comau,
Chairman of Iveco Defence Vehicles (an affiliate of Iveco Group) and Chairman of Astra Veicoli Industriali (an
affiliate of Iveco Group), Director of CNH Industrial and Chair of its Environmental, Social, and Governance
Committee. Since November 2019, he is a member of the Advisory Board of the Lego Brand Group. In June
2020 he was appointed Non-Executive, Independent Director of GVS S.p.A. Mr. Nasi obtained a degree in
Economics from the University of Turin. Born in 1974, Italian citizenship. Date of first appointment: April 12,
2019.
▪Vagn Sørensen, Director (Non-Executive Director—independent), Member of the Audit Committee
Vagn Sørensen was appointed Director of CNH Industrial in April 2020. He has spent the majority of his
executive career in the aviation industry. After a 17-year career with Scandinavian Airlines, where he held the
position of deputy CEO, from 2001 to 2006 he served as the CEO of Austrian Airlines. Following this, he has
pursued a career as an Independent Director, primarily in the leisure, hotel and aviation sectors. His
appointments, however, also encompass additional sectors including software development,
telecommunications and heavy machinery. Mr. Sørensen can draw on some 20 years’ experience in private
equity, primarily gained with EQT. Mr. Sørensen is currently Chairman of F L Smidth, Air Canada, and
Scandlines. He serves as an Independent Director on the Board of Royal Caribbean Cruises. He also sits on
the Boards of Parques Reunidos, VFS Global and is a member of the Board of Trustees of the Rock’n Roll
Forever Foundation. Mr. Sørensen has previously been the Chairman of British Midland Airways, Scandic
Hotels Group, Automic Software, Bureau van Dijk, KMD and Flying Tiger Copenhagen. He was a Member of
the Supervisory Board of Lufthansa Cargo, Deputy Chairman of DFDS, Chairman of the Association of
European Airlines, a Member of the Board of the International Air Transport Association (IATA) and was
Chairman of TDC A/S, the Danish incumbent telecommunications operator. Mr. Sørensen attended the Aarhus
Business School in Denmark, and obtained a Master of Science degree in Economics and Business
Administration. Born in 1959, Danish citizenship. Date of first appointment: April 16, 2020.
▪Åsa Tamsons, Director (Non-Executive Director—independent), Member of the Audit Committee
Åsa Tamsons is a Senior Vice President and Head of Business Area Technologies and New Businesses at
Ericsson, where she is also a member of the Company's Executive Team. Ms. Tamsons primary focus is on
driving growth in new business areas targeting the enterprise market and creating new revenue streams for
Ericsson, with emphasis on SaaS and software centric connectivity offerings. The objective is to help the
Company's customers, and the broader enterprise market, realize the full potential of 5G, IoT and future
technologies. Ms. Tamsons drives a business portfolio encompassing commercialization and licensing of
Ericsson's 57,000+ patents, Cradlepoint – the US-based market leader in Wireless WAN Edge solutions for
the enterprise market, Ericsson's global IoT platform business, its Private Network business with products
used by industry companies and the public safety sector, as well as the new Small-Medium Business Solutions
focusing on connectivity offerings to the SMB market, and a number of other emerging businesses in
incubation stage through the innovation hub Ericsson ONE. The business portfolio also includes the global
number portability leader, iconectiv, as well as the fully owned subsidiary RedBee Media, where Ms. Tamsons
serves on the board. Previously, between 2018-2020, Ms. Tamsons was also responsible for Ericsson's Group
Strategy, M&A and Corporate Venture Capital investments. Ms. Tamsons joined Ericsson as a Partner from
McKinsey where between 2006-2017 she served tech, telecom and industrial companies around the world.
She has worked across the world and during her career has been based in Stockholm, Paris, Singapore, San
Francisco and Sao Paulo. Ms. Tamsons holds a Master of Science in Business Administration from the
Stockholm School of Economics in Sweden. Born in 1981, Swedish citizenship. Date of first appointment:
December 23, 2021.
BOARD REGULATIONS
On September 9, 2013, the Board of Directors adopted regulations governing the operations of the Board of Directors
and its Committees.
Board Report  Corporate Governance    101
The regulations contain provisions concerning the manner in which meetings of the Board of Directors are called and
held, including the decision-making process. The regulations provide that meetings may be held by telephone
conference or video-conference, provided that all participating Directors can follow the proceedings and participate in
real-time discussion of the items on the agenda.
The Board of Directors can only transact business, including the adoption of resolutions, if a majority of the Directors in
office shall be present at the Board meeting or be represented at such meeting.
A member of the Board of Directors may only be represented by a co-member of the Board of Directors authorized in
writing.
The expression in writing shall include any message transmitted by current means of communication.
A member of the Board of Directors may not act as proxy for more than one co-member.
All resolutions shall be adopted by the favorable vote of the majority of the Directors present or represented at the
meeting, provided that the regulations may contain specific provisions in this respect. Each Director shall have one
vote.
The Board of Directors shall be authorized to adopt resolutions without convening a meeting if all Directors shall have
expressed their opinions in writing, unless one or more Directors shall object to a resolution being adopted in this way.
The regulations are available on the Company’s website, www.cnhindustrial.com.
THE AUDIT COMMITTEE
The Audit Committee is responsible for, among other things, assisting the Board of Directors’ oversight of: (i) the
integrity of the Company’s financial statements, (ii) the Company’s policy on tax planning, (iii) the Company’s financing,
(iv) the Company’s application of information and communication technology, (v) the systems of internal controls that
management and the Board of Directors have established, (vi) the Company’s compliance with legal and regulatory
requirements, (vii) the Company’s compliance with recommendations and observations of internal and external
auditors, (viii) the Company’s policies and procedures for addressing certain actual or perceived conflicts of interest, (ix)
the independent auditors’ qualifications, independence, remuneration and any non-audit services for the Company, (x)
the performance of the Company’s internal audit function and of the independent auditors, (xi) risk management
guidelines and policies, and (xii) the implementation and effectiveness of the Company’s ethics and compliance
program. The Company has established a separate department for the internal audit function and the head of the
internal audit function reports to the Audit Committee, which reviews and approves the annual internal audit plan.
The Audit Committee currently consists of Messrs. Lanaway (Chairperson), Sørensen and Ms. Tamson, all of whom are
non-executive directors. The Audit Committee is appointed by the Board of Directors and is comprised of at least three
members who may be appointed for terms of up to two years, each of whom must be a Non-Executive Director.
Members of the Audit Committee may be reappointed. Audit Committee members are also required (i) not to have any
material relationship with the Company or to serve as auditors or accountants for the Company, (ii) to be “independent”,
under the NYSE Listing Standards, Rule 10A-3 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and the DCGC, and (iii) to be “financially literate” and have “accounting or selected financial management
expertise” (as determined by the Board of Directors). At least one member of the Audit Committee shall be a “financial
expert” as defined in the Sarbanes-Oxley Act and the rules of the SEC and best practice provision 2.1.4 of the DCGC.
No Audit Committee member may serve on more than four audit committees for other public companies, absent a
waiver from the Board of Directors, which must be disclosed in the annual report on Form 20-F. Unless decided
otherwise by the Audit Committee, the Company’s independent auditors as well as the Chief Financial Officer, General
Counsel, Corporate Secretary and other Company officers attend its meetings.
Each of the members of the Audit Committee are independent. In addition, the Board has designated each of the
members of the Audit Committee as a “financial expert”.
During 2021, the Audit Committee, inter alia, reviewed and discussed the annual and quarterly financial statements
(and the independent auditors’ review or audit thereof), the key risks and controls relating to the Company’s information
systems, the appropriateness and completeness of the Company's system of internal control, the performance of the
Company’s internal audit function, the performance of the Company’s independent public auditors, legal matters facing
the Company, and the implementation and effectiveness of the Company's ethics and compliance program.
Board Report  Corporate Governance    102
The Audit Committee met ten times during 2021. The following chart shows the 2021 Audit Committee members and
their attendance at Committee meetings.
Audit Committee Member
Lanaway
Simonelli(1)
Sørensen
Attendance %:
100%
100%
90%
1.Mr. Lorenzo Simonelli resigned from the CNH Industrial N.V. Board effective December 23, 2021 and joined the Iveco Group N.V.
board of directors.
THE HUMAN CAPITAL AND COMPENSATION COMMITTEE
The Human Capital and Compensation Committee is responsible for, among other things, assisting the Board of
Directors in: (i) determining executive compensation consistent with the Company’s Remuneration Policy, (ii) reviewing
and recommending for approval the compensation of Executive Directors, (iii) administering equity incentive plans and
deferred compensation benefit plans, and (iv) discussing with management the Company’s policies and practices
related to compensation and issuing recommendations thereon, (v) talent development/talent management and
succession plans for the Senior Leadership Team, (vi) the Company’s policies and initiatives related to equal
employment opportunity, as well as diversity, equity, and inclusion, and (vii) the Company’s programs designed to
measure and improve overall employee engagement.
The Human Capital and Compensation Committee currently consists of Messrs. Houle (Chairperson), Buffett, Nasi, and
Ms. Bastioli. All of the members of the Human Capital and Compensation Committee are non-executive directors and
all, other than Mr. Nasi, are independent. The Human Capital and Compensation Committee is appointed by the Board
of Directors and is comprised of at least three Directors. No more than one member may be non-independent under the
DCGC. The members of the Human Capital and Compensation Committee are appointed for terms of up to two years.
Members of the Human Capital and Compensation Committee may be reappointed. Unless decided otherwise by the
Human Capital and Compensation Committee, the Company's Chief Human Resources Officer attends its meetings.
The Human Capital and Compensation Committee shall meet at least once every year. The Human Capital and
Compensation Committee met eight times during 2021. The following chart shows the 2021 Human Capital and
Compensation Committee members and their attendance at Committee meetings.
Human Capital and Compensation
Committee Member
Houle
Buffett
Erginbilgic(1)
Nasi
Attendance %:
100%
100%
88%
100%
1.Mr. Tufan Erginbilgic resigned from the CNH Industrial N.V. Board effective December 23, 2021 and joined the Iveco Group N.V.
board of directors.
THE ENVIRONMENTAL, SOCIAL, AND GOVERNANCE COMMITTEE
The Environmental, Social, and Governance Committee is responsible for, among other things, assisting the Board of
Directors with: (i) the identification of the criteria, professional and personal qualifications for candidates to serve as
directors of the Company, (ii) periodic assessment of the size and composition of the Board of Directors, (iii) periodic
assessment of the functioning of individual Board members and reporting on this to the Board of Directors, (iv)
proposals for appointment of Executive and Non-Executive Directors, (v) supervision of the selection criteria and
appointment procedure for senior management, (vi) overseeing and evaluating the policies, procedures, and practices
related to the environment health and safety of Company employees, (vii) monitoring and evaluating reports on the
Group’s sustainable development policies and practices, management standards, strategy, performance and
governance globally, and (vii) reviewing, assessing and making recommendations as to strategic guidelines for
sustainability-related issues, and reviewing the Company’s annual Sustainability Report.
The Environmental, Social, and Governance Committee currently consists of Messrs. Nasi (Chairperson), Buffett,
Houle, and Ms. Bastioli. All members of the Environmental, Social, and Governance are non-executive directors and all,
other than Mr.Nasi, are independent. The Environmental, Social, and Governance Committee is appointed by the Board
of Directors and is comprised of at least three Directors. No more than two members may be non-independent under
the NYSE Listing Standards and the DCGC, and none of the members may be Executive Directors. The members of
the Environmental, Social, and Governance Committee are appointed for terms of up to two years. Members of the
Environmental, Social, and Governance Committee may be reappointed.
The Environmental, Social, and Governance Committee shall meet at least one time every year. The Environmental,
Social, and Governance Committee met seventeen times during 2021. The following chart shows the 2021
Environmental, Social, and Governance Committee members and their attendance at Committee meetings.
Board Report  Corporate Governance    103
Environmental, Social, and Governance
Committee Member
Nasi
Buffett
Erginbilgic(1)
Houle
Attendance %:
100%
88%
100%
100%
1.Mr. Tufan Erginbilgic resigned from the CNH Industrial N.V. Board effective December 23, 2021 and joined the Iveco Group N.V.
board of directors.
In addition, as described above, the charters of the Audit Committee, Human Capital and Compensation Committee,
and Environmental, Social, and Governance Committee set forth independence requirements for their members for
purposes of the DCGC. Audit Committee members are also required to qualify as independent under the NYSE Listing
Standards and Rule 10A-3 of the Exchange Act.
THE SENIOR LEADERSHIP TEAM
CNH Industrial established the Senior Leadership Team ("SLT") to strengthen the quality of the Company’s decision-
making and the implementation of its strategy.
The SLT is an operational decision-making body of CNH Industrial, which is responsible for reviewing the operating
performance of the segments and making decisions on certain operational matters. The Board of Directors remains
accountable for the decisions of the SLT and has ultimate responsibility for the Company’s management and external
reporting. The SLT is comprised of CNH Industrial’s Chief Executive Officer, and key senior managers.
The SLT is effectively supervised by the Non-Executive Directors of the Board of Directors. For this purpose, the SLT,
either directly or through the Executive Directors, provides the Non-Executive Directors with all information the Non-
Executive Directors require to fulfill their responsibilities. During 2021, the leaders of various Segments and business
units (all SLT members) presented to the Board their operating results, updated strategic business plans, and long-term
value creation strategies as well as their top short-term and medium-term operational and strategic risks. The
presentations allowed management to articulate their strategies for achievement of their business objectives and
mitigation of risks and permitted the Board of Directors to give feedback on management’s plans.
AMOUNT AND COMPOSITION OF THE REMUNERATION OF THE BOARD OF DIRECTORS
Details of the remuneration of the Board of Directors and its Committees are set forth under the section Remuneration
of Directors. Non-Executive Directors are not awarded remuneration in the form of shares and/or rights to shares (they
are paid only in cash) and their compensation is not affected by Company results.
INDEMNIFICATION OF MEMBERS OF THE BOARD OF DIRECTORS
Pursuant to Article 17 of the Articles of Association, the Company has committed to indemnify any and all of its
Directors, officers, former Directors, former officers and any person who may have served at its request as a Director or
officer of another company in which it owns shares or of which it is a creditor, against any and all expenses actually and
necessarily incurred by any of them in connection with the defense of any action, suit or proceeding in which they, or
any of them, are made parties, or a party, by reason of being or having been Director or officer of the Company, or of
such other company, except in relation to matters as to which any such person shall be adjudged in an action, suit or
proceeding to be liable for negligence or misconduct in the performance of duty. Such indemnification shall not be
deemed exclusive of any other rights to which those indemnified persons may be entitled otherwise.
CONFLICT OF INTEREST
A member of the Board of Directors shall not participate in discussions and decision making with respect to a matter in
relation to which he or she has a direct or indirect personal interest that is in conflict with the interests of the Company
and the business associated with the Company (“Conflict of Interest”).
In addition, the Board of Directors as a whole may, on an ad hoc basis, resolve that there is such a strong appearance
of a Conflict of Interest of an individual member of the Board of Directors in relation to a specific matter, that it is
deemed in the best interest of a proper decision making process that such individual member of the Board of Directors
be excused from participation in the decision making process with respect to such matter even though such member of
the Board of Directors may not have an actual Conflict of Interest.
At least annually, each Director shall assess in good faith whether (i) he or she is independent under (A) best practice
provision 2.1.8. of the DCGC, (B) the requirements of Rule 10A-3 under the Exchange Act, and (C) Section 303A of the
NYSE Listed Company Manual; and (ii) he or she would have a Conflict of Interest in connection with any transactions
between the Company and a significant shareholder or related party of the Company, including affiliates of a significant
shareholder (such conflict, a “Related-Party Conflict”), it being understood that currently EXOR N.V. would be
considered a significant shareholder.
Board Report  Corporate Governance    104
The Directors shall inform the Board through the Chair or the Corporate Secretary as to all material information
regarding any circumstances or relationships that may impact their characterization as "independent", or impact the
assessment of their interests, including by responding promptly to the annual director and officer questionnaires
circulated by or on behalf of the Chair that are designed to elicit relevant information regarding business and other
relationships (the “Formal Annual Assessment”).
In addition, the Company has adopted a Conflict of Interest Policy that covers the Company’s directors, officers and
employees. Under the Policy directors are required to promptly disclose to the Company’s Chief Compliance Officer any
conflict of interest (defined as when an individual’s personal interest or activities interferes with, or even appears to
interfere with, the interests of the Company). The Chief Compliance Officer is to refer to the Company’s other directors
any transaction or potential conflict of interest involving a director. Such other directors are to review the applicable
facts and determine whether a conflict of interest exists with respect to such director.
Based on each Director’s Formal Annual Assessment described above, the Board shall make a determination at least
annually regarding such Director’s independence and such Director’s Related-Party Conflict. These annual
determinations shall be conclusive absent a change in circumstances from those disclosed to the Board that
necessitates a change in such determination. Each year, the Environmental, Social, and Governance Committee
considers, among other things, the Directors’ Formal Annual Assessment and any other disclosures when considering
candidates to be recommended to the Board for (re)appointment as Directors. In 2021, the Environmental, Social, and
Governance Committee and the Board considered such disclosures in February and determined that no Conflict of
Interest existed.
LOYALTY VOTING PROGRAM
Our authorized share capital is €40,000,000 consisting of two billion (2,000,000,000) common shares and two billion
(2,000,000,000) special voting shares to be held with associated common shares, each having a par value of one euro
cent (€0.01). Our common shares are registered shares represented by an entry in the share register of CNH Industrial.
Beneficial interests in our common shares traded on the NYSE are held through the book-entry system provided by
DTC and are registered in the register of shareholders in the name of Cede & Co., as DTC’s nominee. Beneficial
interests in the common shares traded on the Euronext Milan are held through Monte Titoli S.p.A., the Italian central
clearing and settlement system, as a participant in DTC.
In connection with the Merger, CNH Industrial implemented a loyalty voting program, pursuant to which the former
shareholders of each of Fiat Industrial S.p.A. and CNH Global N.V. were able to elect to receive one CNH Industrial
special voting share to be held only with each CNH Industrial common share they were entitled to receive in the Merger,
provided that they fulfilled the requirements described in the terms and conditions of the loyalty voting program. The
CNH Industrial common shares held by shareholders that elected to participate in the loyalty voting program had their
common shares registered in the Company's Loyalty Register. Following this registration, a corresponding number of
special voting shares were allocated to such shareholders, and the additional voting rights could be exercised at the
first CNH Industrial shareholders’ meeting that followed the registration. By signing an election form, whose execution
was necessary to elect to participate in the loyalty voting program, shareholders also agreed to be bound by the terms
and conditions thereof, including the transfer restrictions described below. The terms and conditions applicable to
special voting shares are available on the Company’s website (www.cnhindustrial.com).
Following the completion of the Merger, CNH Industrial shareholders may at any time elect to participate in the loyalty
voting program by requesting that CNH Industrial registers all or some of their CNH Industrial common shares in the
Loyalty Register. If these CNH Industrial common shares have been registered in the Loyalty Register (and thus
blocked from trading in the regular trading system) for an uninterrupted period of three years in the name of the same
shareholder, such shares become eligible to receive special voting shares to be held with associated common shares
(the “Qualifying Common Shares”) and the relevant shareholder will be entitled to hold one special voting share for
each such Qualifying Common Share the shareholder continues to hold. If at any time such CNH Industrial common
shares are de-registered from the Loyalty Register for whatever reason, the relevant shareholder shall lose his, her or
its entitlement to hold a corresponding number of special voting shares.
A holder of Qualifying Common Shares may at any time request the de-registration of some or all such shares from the
Loyalty Register, which will allow such shareholder to freely trade its CNH Industrial common shares. From the moment
of such request, the holder of Qualifying Common Shares shall be considered to have waived his/her/its rights to cast
any votes associated with the loyalty voting shares corresponding to its previously Qualifying Common Shares. Upon
the de-registration from the Loyalty Register, the relevant common shares will therefore cease to be Qualifying
Common Shares. Any de-registration request would automatically trigger a mandatory transfer requirement pursuant to
which the special voting shares will be surrendered to CNH Industrial for no consideration.
CNH Industrial’s common shares are freely transferable. Special voting shares are not admitted to listing and are
transferable only in very limited circumstances and only along with the common shares to which they are associated.
Any transfer of common shares that are registered on the Loyalty Register will trigger the de-registration of such
Board Report  Corporate Governance    105
common shares from that register and any associated special voting shares will automatically be surrendered to CNH
Industrial for no consideration.
The purpose of the loyalty voting program is to grant long-term CNH Industrial shareholders an extra voting right as
qualifying shareholders are entitled to exercise an additional vote through the common share and the associated
special voting share held. However, under Dutch law, the special voting shares cannot be excluded from economic
entitlements. As a result, in accordance with the Articles of Association, holders of special voting shares are entitled to a
minimum dividend, which is allocated to a separate special dividend reserve (the “Special Dividend Reserve”). The
distribution of dividends from the Special Dividend Reserve can only be approved by the general meeting of the holders
of special voting shares upon proposal of the Board of Directors. The power to vote upon the distribution from the
Special Dividend Reserve is the only power that is granted to that meeting, which can only be convened by the Board of
Directors as it deems necessary. No distribution has been made from this reserve. The special voting shares do not
have any other economic entitlement.
Section 10 of the special voting share terms and conditions includes liquidated damages provisions intended to
discourage any attempt by participants in the loyalty voting program to violate the terms thereof. These liquidated
damages provisions may be enforced by CNH Industrial by means of a legal action brought by the Company in the
courts of the Netherlands. In particular, a violation of the provisions of the above-mentioned terms and conditions
concerning the transfer of special voting shares may lead to the imposition of liquidated damages.
Pursuant to Section 12 of the special voting share terms and conditions, any amendment to the terms and conditions
(other than merely technical, non-material amendments) may only be made with the approval of the general meeting of
shareholders of CNH Industrial.
A shareholder must promptly notify CNH Industrial upon the occurrence of a change of control, which is defined in
Article 4(1)(n) of the Articles of Association as including any direct or indirect transfer, carried out through one or a
series of related transactions, by a CNH Industrial shareholder that is not an individual of (i) the ownership or control of
50% or more of the voting rights of such shareholder, (ii) the de facto ability to direct the casting of 50% or more of the
votes which may be expressed at the general meetings of such shareholder, or (iii) the ability to appoint or remove half
or more of the Directors, Executive Directors or Board members or executive officers of such shareholder or to direct
the casting of 50% or more of the voting rights at meetings of the Board, governing body or executive committee of
such shareholder. In accordance with Article 4(1)(n) of the Articles of Association, no change of control shall be deemed
to have occurred if (i) the transfer of ownership and/or control is the result of the succession or the liquidation of assets
between spouses or the inheritance, inter vivos donation or other transfer to a spouse or a relative up to and including
the fourth degree or (ii) the fair market value of the Qualifying Common Shares held by the relevant CNH Industrial
shareholder represents less than 20% of the total assets of the Transferred Group at the time of the transfer and the
Qualifying Common Shares, in the sole judgment of CNH Industrial, are not otherwise material to the Transferred Group
or the change of control transaction. Article 4(1)(n) of the Articles of Association defines “Transferred Group” as
comprising the relevant shareholder together with its affiliates, if any, over which control was transferred as part of the
same change of control transaction, as such term in defined in Article 4(1)(n) of the Articles of Association. A change of
control will trigger the de-registration of the applicable Qualifying Common Shares from the Loyalty Register and the
suspension of the special voting rights attached to such Qualifying Common Shares.
GENERAL MEETING OF SHAREHOLDERS
At least one general meeting of Company shareholders shall be held every year, which meeting shall be held within six
months after the close of the prior financial year. In addition, general meetings of shareholders shall be held in the
situations referred to in Article 2:108a of the Dutch Civil Code and as often as the Board of Directors, the Chair, the
Senior Non-Executive Director or the Chief Executive Officer deems it necessary to hold them, without prejudice to what
has been provided in the next paragraph hereof.
Shareholders solely or jointly representing at least ten percent (10%) of the Company’s issued share capital may
request the Board of Directors, in writing, to call a general meeting of shareholders, stating the matters to be dealt with.
If the Board of Directors fails to call a meeting, then such shareholders may, on their application, be authorized by the
interim provisions judge of the court (voorzieningenrechter van de rechtbank) to convene a general meeting of the
Company’s shareholders. The interim provisions judge (voorzieningenrechter van de rechtbank) shall reject the
application if he/she is not satisfied that the applicants have previously requested the Board of Directors in writing,
stating the exact subjects to be discussed, to convene a general meeting of shareholders.
General meetings of shareholders shall be held in Amsterdam or Haarlemmermeer (Schiphol Airport), and shall be
called by the Board of Directors, the Chairperson, the Senior Non-Executive Director or the Chief Executive Officer, in
such manner as is required to comply with the law and the applicable stock exchange regulations, not later than on the
forty-second (42nd) day prior to the meeting.
All convocations of meetings of shareholders and all announcements, notifications and communications to Company
shareholders shall be made by means of an announcement on the Company’s website and such announcement shall
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remain accessible until the relevant general meeting of shareholders. Any communication to be addressed to the
general meeting of shareholders by virtue of law or the Articles of Association, may be either included in the notice
(referred to in the preceding sentence) or, to the extent provided for in such notice, on the Company’s website and/or in
a document made available for inspection at the office of the Company and such other place(s) as the Board of
Directors shall determine.
Convocations of meetings of shareholders may be sent to shareholders through the use of an electronic means of
communication to the address provided by such shareholders to the Company for this purpose. The notice shall state
the place, date and hour of the meeting and the agenda of the meeting as well as the other information required by law.
An item proposed in writing by such number of shareholders who, by law, are entitled to make such proposal, shall be
included in the notice or shall be announced in a manner similar to the announcement of the notice, provided that the
Company has received the relevant shareholder’s request, including the reasons for putting the relevant item on the
agenda, no later than the sixtieth (60th) day before the day of the meeting.
The agenda of the Annual General Meeting shall contain, inter alia, the following items:
a)adoption of the Company’s annual accounts;
b)granting of discharge to the members of the Board of Directors in respect of the performance of their duties in
the relevant financial year;
c)the policy of the Company on additions to reserves and on dividends, if any;
d)as required by Dutch law, the Company's Remuneration Policy;
e)if applicable, the proposal to pay a dividend;
f)if applicable, discussion of any substantial change in the corporate governance structure of the Company;
g)the appointment of Directors; and
h)any matters decided upon by the person(s) convening the meeting and any matters placed on the agenda
with due observance of applicable Dutch laws.
The Board of Directors shall provide the general meeting of shareholders with all requested information, unless this
would be contrary to an overriding interest of the Company. If the Board of Directors invokes an overriding interest, it
must provide shareholders with details of the overriding interest.
When convening a general meeting of shareholders, the Board of Directors shall determine that, for the purpose of
Article 18 and Article 19 of the Articles of Association, persons with the right to vote or attend meetings shall be
considered those persons who have these rights at the twenty-eighth (28th) day prior to the day of the meeting (the
“Record Date”) and are registered as such in a register to be designated by the Board of Directors for such purpose,
irrespective of whether they will have these rights at the date of the meeting. In addition to the Record Date, the notice
of the meeting shall further state the manner in which Company shareholders and other parties with meeting rights may
have themselves registered and the manner in which those rights can be exercised.
The general meeting of shareholders shall be presided over by the Senior Non-Executive Director or, in his/her
absence, by the person chosen by the Board of Directors to act as chairperson for such meeting.
One of the persons present designated for that purpose by the chairperson of the meeting shall act as secretary and
take minutes of the business transacted. The minutes shall be confirmed by the chairperson of the meeting and the
secretary and signed by them in witness thereof.
The minutes of the general meeting of shareholders shall be made available, on request, to the shareholders no later
than three months after the end of the meeting, after which the shareholders shall have the opportunity to react to the
minutes in the following three months. The minutes shall then be adopted in the manner as described in the preceding
paragraph.
If an official notarial record is made of the business transacted at the shareholders’ meeting, then minutes need not be
drawn up and it shall suffice that the official notarial record be signed by the notary. Each Director shall at all times have
power to give instructions for having an official notarial record made at the Company's expense.
As a prerequisite to attending the meeting and, to the extent applicable, exercising voting rights, shareholders entitled
to attend the meeting shall be obliged to inform the Board of Directors in writing within the time mentioned in the
convening notice. At the latest, this notice must be received by the Board of Directors on the day specified in the
convening notice.
Shareholders and those permitted by law to attend the shareholders’ meeting may cause themselves to be represented
at any meeting by a proxy duly authorized in writing, provided they shall notify the Company in writing of their wish to be
represented at such time and place as shall be stated in the notice of the meeting. For the avoidance of doubt, such
attorney is also authorized in writing if the proxy is documented electronically. The Board of Directors may determine
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further rules concerning the deposit of the powers of attorney and any such additional rules shall be mentioned in the
notice of the meeting.
The Company, as a foreign private issuer, is exempt from the proxy rules under the U.S. Securities Exchange Act of
1934, as amended.
The chairperson of the meeting of shareholders shall decide on the admittance to the meeting of persons other than
those who are entitled to attend.
For each general meeting of shareholders, the Board of Directors may decide that shareholders shall be entitled to
attend, address and exercise voting rights at such meeting through the use of electronic means of communication,
provided that shareholders who participate in the meeting are capable of being identified through the electronic means
of communication and have direct cognizance of the discussions at the meeting and the exercising of voting rights (if
applicable). The Board of Directors may set requirements for the use of electronic means of communication and state
these in the convening notice. Furthermore, the Board of Directors may for each meeting of shareholders decide that
votes cast by the use of electronic means of communication prior to the meeting and received by the Board of Directors
shall be considered to be votes cast at the meeting. Such votes may not be cast prior to the Record Date. Whether the
provision of the foregoing sentence applies and the procedure for exercising the rights referred to in that sentence shall
be stated in the notice.
Prior to being allowed admittance to a meeting, a shareholder or its attorney shall sign an attendance list, stating his/
her/its name and, to the extent applicable, the number of votes to which he/she/it is entitled. Each shareholder
attending a meeting by the use of electronic means of communication and identified in accordance with the above shall
be registered on the attendance list by the Board of Directors. In the event that it concerns an attorney of a shareholder,
the name(s) of the person(s) on whose behalf the attorney is acting shall also be stated. The chairperson of the meeting
may decide that the attendance list must also be signed by other persons present at the meeting.
The chairperson of the meeting may determine the time for which shareholders and others who are permitted to attend
the general meeting of shareholders may speak if he/she considers this desirable with a view to the orderly conduct of
the meeting.
Every share (whether common or special voting) shall confer the right to cast one vote.
Shares in respect of which the law determines that no votes may be cast shall be disregarded for the purposes of
determining the proportion of shareholders voting, present or represented or the proportion of the share capital provided
or represented.
All resolutions shall be passed with an absolute majority of the votes validly cast unless otherwise specified.
Blank votes shall not be counted as votes cast.
All votes shall be cast in writing or electronically. The chairperson of the meeting may, however, determine that voting
by raising hands or in another manner shall be permitted.
Voting by acclamation shall be permitted if none of the shareholders present objects.
No voting rights shall be exercised in the general meeting of shareholders for shares owned by the Company or by a
subsidiary of the Company. Usufructuaries of shares owned by the Company and its subsidiaries shall however not be
excluded from exercising their voting rights, if the usufruct was created before the shares were owned by the Company
or a subsidiary.
Without prejudice to the other provisions of the Articles of Association, the Company shall determine for each resolution
passed:
a.the number of shares on which valid votes have been cast;
b.the percentage that the number of shares as referred to under a. represents in the issued share capital;
c.the aggregate number of votes validly cast; and
d.the aggregate number of votes cast in favor of and against a resolution, as well as the number of abstentions.
ISSUANCE OF SHARES
The general meeting of shareholders or alternatively the Board of Directors, if it has been designated to do so by the
general meeting of shareholders, shall have authority to resolve on any issuance of shares. The general meeting of
shareholders shall, for as long as any such designation of the Board of Directors for this purpose is in force, no longer
have authority to decide on the issuance of shares.
The general meeting of shareholders or the Board of Directors if so designated as provided in Article 5, paragraph 1 of
the Articles of Association, shall decide on the price and the further terms and conditions of issuance of shares, with
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due observance of what has been provided in relation thereto in the law and in the Articles of Association.
If the Board of Directors is designated to have authority to decide on the issuance of shares, such designation shall
specify the class of shares and the maximum number of shares that can be issued under such designation. When
making such designation the duration thereof, which shall not be for more than five years, shall be resolved upon at the
same time. The designation may be extended from time to time for periods not exceeding five years. The designation
may not be withdrawn unless otherwise provided in the resolution in which the designation is made.
Payment for shares shall be made in cash unless another form of consideration has been agreed. Payment in a
currency other than euro may only be made with the consent of the Company.
For a period of five years from September 28, 2018 up to and including September 27, 2023, the Board of Directors has
been irrevocably authorized by the shareholders at the AGM held on April 13, 2018, to issue special voting shares up to
the maximum aggregate amount of special voting shares as provided for in the Company’s authorized share capital as
set forth in Article 3, paragraph 1 of the Articles of Association.
For a period of five years from April 13, 2018 up to and including April 12, 2023, the Board of Directors has been
authorized by the shareholders at the AGM held on April 13, 2018 as authorized body to issue common shares and to
grant rights to acquire common shares in the capital of the Company, which authorization is limited to: (i) the issuance
of 15% of the total number of common shares issued in the capital of the Company as of April 14, 2018; (ii) an
additional 15% of the issued share capital of the Company as per the same date in relation to mergers or acquisitions;
and (iii) without application of the 15% limitation, issuance of common shares and grant of rights or options (and the
ability to cancel such rights where necessary or appropriate) to subscribe for common shares in the capital of the
Company in so far as this would be done to meet obligations resulting from and on the terms of the equity incentive
plans of the Company.
In the event of an issuance of common shares, every holder of common shares shall have a right of pre-emption with
regard to the shares to be issued of that class in proportion to the aggregate amount of his shares of that class;
provided, however, that no such right of pre-emption shall exist in respect of shares to be issued to Directors or
employees of the Company or of a group company pursuant to any Company equity incentive or compensation plan.
The right of pre-emption may be limited or excluded by a resolution of the general meeting of shareholders or a
resolution of the Board of Directors if it has been designated to do so by the general meeting of shareholders and
provided the Board of Directors has also been authorized to resolve on the issuance of shares of the company.
At the AGM held on April 13, 2018 for a period of five years starting from such date and therefore up to and including
April 12, 2023, the Board of Directors has been authorized by the shareholders as authorized body to limit or exclude
the statutory preemptive rights of shareholders in connection with the issuance of common shares or rights to acquire
shares in the capital of the Company, pursuant to the share issuance authorization described above.
A shareholder shall have no right of pre-emption for shares that are issued against a non-cash contribution.
In the event of an issuance of special voting shares to Qualifying Shareholders, shareholders shall not have any right of
pre-emption.
The general meeting of shareholders or the Board of Directors, as the case may be, shall decide when passing the
resolution to issue shares in which manner and, subject to paragraph 3 of Article 6 of the Articles of Association, within
what period the right of pre-emption may be exercised.
PRINCIPAL OFFICE AND HOME MEMBER STATE
The Company is incorporated under the laws of the Netherlands. It has its corporate seat in Amsterdam and the place
of effective management of the Company is in the United Kingdom.
The Company’s principal office and business address is at 25 St. James’s Street, London, SW1A 1HA, United Kingdom.
The Company is registered at the Commercial Register kept at the Chamber of Commerce in Amsterdam under file
number 56532474 and at the Companies House in the United Kingdom under file number FC031116 BR016181.
The Netherlands is the Company’s home member state for the purposes of the EU Transparency Directive (Directive
2004/109/EC, as amended).
Board Report  Corporate Governance    109
CULTURE
The Board is responsible for creating and fostering a culture aimed at long-term value creation for the Group and all of
its stakeholders. Operating in compliance with all applicable laws and consistent with the Company’s values and
expectations is critical to creating such a culture. Accordingly, to clarify and make explicit the Company’s values and
expectations, in 2014 the Board adopted the Company’s code of conduct (which was renewed and updated in 2019, the
“Code of Conduct”) and the Company issued its Supplier Code of Conduct, both of which are discussed below. In
addition, the Company established a compliance and ethics program that is overseen by the Global Compliance and
Ethics Committee (“GCEC”). The members of the GCEC include the: Chief Executive Officer, Chief Financial Officer,
head of Internal Audit, Corporate General Counsel, Chief Compliance Officer (“CCO”), Chief Information Officer,
President of the Financial Services segment, head of the Human Resources function, and Chief Strategy, Talent, ICT
and Digital Officer. The GCEC meets at least quarterly to, among other things, review and discuss compliance and
ethics trends and topics, review and discuss compliance risk assessments, discuss compliance-related training to be
deployed, consider the need for new or modified compliance-related corporate policies, and review matters submitted to
the Company’s Compliance Helpline (see below) and related investigations. The extent to which each employee
complies with and promotes such culture and values is assessed each year through, among other things, the
Company’s performance assessment process.
CODE OF CONDUCT
On July 31, 2014, the Board of Directors adopted the Company's Code of Conduct that describes the Company’s
values that contribute to a culture focused on long-term value creation. The Company periodically reviews and updates
the Code of Conduct to ensure it is consistent with applicable laws and best practices. In September 2019 the Board of
Directors adopted the current revised and updated version of the Code of Conduct. The Code of Conduct forms an
integral part of the internal control system and sets out the principles of business ethics to which CNH Industrial
adheres and which Directors, officers, employees, consultants and business “partners” are required to observe. The
Code of Conduct covers topics such as the environment, health and safety, antitrust/competition, anti-corruption, data
privacy, management of human resources, communities and respect of human rights.
The CNH Industrial Group uses its best endeavors to ensure that suppliers, consultants and any third party with whom
the CNH Industrial Group has a business relationship be informed of the principles set forth in the Code of Conduct.
In addition, in 2015 the Company issued its Supplier Code of Conduct, which includes the Company’s guidelines and
expectations for suppliers with regard to such areas as labor and human rights, the environment, trade restrictions and
export controls, business ethics and anti-corruption, and reporting matters to the Company.
The Code of Conduct is available in 19 languages on the Corporate Governance section of the Company’s website,
(www.cnhindustrial.com), and on the Company's intranet site.
The Supplier Code of Conduct is available on the Suppliers section of the Company’s website and on the Company's
intranet site and is available in nine languages.
The Company has established dedicated channels of communication to enable CNH Industrial’s employees,
customers, suppliers, and other third parties to report alleged irregularities of a general, operational, and financial
nature with the Company. The Company’s Compliance Helpline is a global reporting tool available in 14 languages and
is managed by an independent third party. Reports may be submitted through a dedicated web portal
(www.cnhindustrialcompliancehelpline.com), by phone (to a call center managed by a third party), or in person to a
manager or other Company representative. Company employees are required to report compliance issues. Where
legally permissible, reports may be submitted on an anonymous basis. In addition, where legally required, the nature of
the reports may be limited to certain subject matters. The Company investigates reports submitted and, in appropriate
cases, implements corrective and/or disciplinary actions.
The Group’s ethics and compliance program is managed by the Global Compliance function. The Company’s CCO
manages the Global Compliance function and reports to the Company’s Chief Executive Officer. In addition, the CCO
reports on (at least) a quarterly basis to the Audit Committee. The CCO’s reports to the Audit Committee include such
things as compliance training and communications activities, material compliance and ethics trends and topics, matters
reported to the Compliance Helpline, the status of material investigations, and the effectiveness of the compliance and
ethics program. The Global Compliance function is responsible for, among other things, maintaining the Code of
Conduct, creating and deploying compliance training, managing the Compliance Helpline (including investigating
reported matters), creating and maintaining compliance-related corporate policies, and assessing legal and compliance
risks and working with stakeholders to develop policies, procedures and controls to effectively manage such risks.
The Group’s Code of Conduct is supplemented by additional corporate policies, guidelines and procedures that provide
greater detail than is contained in the Code of Conduct. Corporate policies cover areas of higher risk given the nature
and extent of the Company’s business such as: conflicts of interest, bribery and corruption, antitrust/competition law,
international trade compliance, and data privacy. Each year certain categories of employees (i.e. those deemed to have
responsibilities presenting potentially greater risk to the Company) are required to certify that (1) they have read and
Board Report  Corporate Governance    110
understand the Code of Conduct and the Company’s Conflict of Interest Policy, and (2) they have not violated, and are
not aware of a violation of, the Code of Conduct or the Conflict of Interest Policy.
RESPECT FOR HUMAN RIGHTS
CNH Industrial respects and promotes human rights in line with national laws, the fundamental Conventions of the
International Labour Organization (ILO), the UN’s Universal Declaration of Human Rights, and the OECD Guidelines for
Multinational Enterprises. In addition to setting out principles of professional conduct, the Company’s Code of Conduct
also underscores the importance of respect for the individual.
The Company is committed to ensuring respect for fundamental human rights wherever it operates and seeks to
promote respect for these principles by others where it has an influence, particularly among contractors, suppliers, and
other entities and individuals with whom it has a business relationship. The Company will not establish or continue a
relationship with an entity or individual that refuses to respect the principles of its Code of Conduct.
CNH Industrial monitors respect for human rights both internally, through the Internal Audit function, and for suppliers,
through an annual assessment process. In 2021, approximately 3,610 Company employees have been involved in the
analysis, including 6 countries in Rest of World and 1,389 suppliers have been assessed worldwide, representing 73%
of direct material purchases.
The Company seeks to implement a variety of measures (e.g. training activities) to help employees understand and
address human rights issues in the course of their work. In 2021, online training on human rights and other Code of
Conduct aspects was delivered to all of CNH Industrial’s Board of Directors and SLT members, as well as to
approximately 24,295 employees. Moreover, specific human rights courses focusing on workplace respect and sexual
harassment was delivered in North America to approximately 3,584 employees, for total of 896 hours.
ANTI-CORRUPTION AND BRIBERY
CNH Industrial’s commitment to doing business with integrity means avoiding corruption in any form, including bribery,
and complying with the anti-corruption laws of all countries in which it operates.
CNH Industrial has adopted and implemented an Anti-Corruption Policy, which is distributed to all Company employees
and senior management across all geographical areas and is available on the Company’s intranet portal in 19
languages. The Company also provides corruption prevention training using both online and scenario-based classroom
training.
CNH Industrial’s Internal Audit function verifies, among other things, corruption prevention processes and controls. The
results of such internal audits are submitted to both the Company’s Audit Committee and senior management, in order
to enable them to take action when an opportunity to improve internal controls is identified. In 2021, no substantiated
reports of bribery or corruption were reported to the Company through the Compliance Helpline or otherwise. In
addition, Internal Audit activities did not identify bribery or corruption problems or issues. The Company also
investigates and tracks, among other things, all corruption allegations to evaluate the need for additional controls and
training, and surveys all employees annually, reminding them of their obligation to report compliance issues.
In addition, the Company’s Supplier Code of Conduct sets forth the Company’s expectations with respect to all
suppliers. The Supplier Code of Conduct prohibits any form of bribery, “kickbacks”, or any other improper payment (of
cash or anything of value) to a third party to obtain an unfair or improper advantage.
COMMUNITY RELATIONS
As stated in the Code of Conduct, CNH Industrial is aware of the potential direct and indirect impact of its decisions on
the communities in which it operates. For this reason, the Company promotes an open dialogue to ensure that the
legitimate expectations of local communities are taken into consideration, and voluntarily endorses projects and
activities that encourage their economic, social, and cultural development. Moreover, CNH Industrial acts in a socially
responsible manner by respecting the culture and traditions of each country, and by operating with integrity to earn the
trust of the community.
The individual Segments or brands, in consultation with local management, decide which projects to support based on
actual local needs, maximizing open dialogue with local stakeholders and collecting their suggestions for improvement.
They also decide whether to act directly or through partnerships with local institutions and organizations working in the
social sphere.
The CNH Industrial Community Investment Policy, available on the Company's website, ensures that activities are
managed consistently, identifying methods and defining areas of application at a global level.
In 2021, resources allocated by CNH Industrial to communities were valued at approximately $8.74 million.
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In addition, CNH Industrial strives to respond rapidly to the needs of people affected by natural disasters. The Company
channels resources (vehicles and financial and technical support) to aid impacted communities, and coordinates
employees who want to voluntarily assist in relief efforts.
RELATED PARTY TRANSACTIONS POLICY
The Company adopted a Related Party Transactions Policy to ensure that all the transactions with related parties (as
defined in compliance with IAS 24 and ASC 850) shall be subject to proper review, approval or ratification, as the case
may be, in accordance with certain procedures set forth by the Company to ensure full transparency and substantive
and procedural fairness.
INSIDER TRADING POLICY
On September 9, 2013, the Board of Directors adopted an Insider Trading Policy setting forth guidelines and
recommendations to all Directors, officers and employees of the CNH Industrial Group with respect to transactions in
CNH Industrial’s securities or the securities of any third party to the extent that such person acquires material non-
public information in relation to that third party, or the financial instruments of that third party, as a result of such
person’s employment with, or service to, the CNH Industrial Group. This policy, which also applies to immediate family
members and members of the households of persons covered by the policy, is designed to prevent insider trading or
allegations of insider trading, and to protect CNH Industrial’s reputation for integrity and ethical conduct.
The Insider Trading Policy is available on the Corporate Governance section of the Company’s website,
www.cnhindustrial.com.
MARKET ABUSE REGULATION (MAR)
The regulatory framework on market abuse is laid down in the Market Abuse Directive (2014/57/EU) as implemented in
Dutch law and the Market Abuse Regulation (No. 596/2014, the “MAR”) which is directly applicable in the Netherlands.
Pursuant to the MAR, no natural or legal person is permitted to: (a) engage or attempt to engage in insider dealing in
financial instruments listed on a regulated market or for which a listing has been requested, such as the shares, (b)
recommend that another person engages in insider dealing or induce another person to engage in insider dealing or (c)
unlawfully disclose inside information relating to the shares or the Company. Furthermore, no person may engage in or
attempt to engage in market manipulation.
“Inside Information” is any information of a precise nature relating (directly or indirectly) to the Company, or to the
shares in the Company or other financial instruments, which information has not been made public and which, if it were
made public, would be likely to have an effect on the price of the shares or the other financial instruments or on the
price of related derivative financial instruments (i.e. information a reasonable investor would be likely to use as part of
the basis of his or her investment decision). An intermediate step in a protracted process can also deemed to be inside
information.
Furthermore, in the field of prevention of insider dealing, MAR reiterates the notification regime in place for managers’
transactions involving issuer’s securities. Under the MAR, a person discharging managerial responsibilities (“PDMR”)
and persons closely associated with them must notify the issuers and the national competent authority of every
transaction conducted on their own account relating to the shares or debt instruments of that issuer, or to derivatives or
other financial instruments linked to those shares or debt instruments. Such notifications pursuant to the MAR
described must be made to the AFM and the Company no later than the third business day following the relevant
transaction date.
DISCLOSURE OF INSIDE INFORMATION
Inside Information, as defined under MAR, is crucial for CNH Industrial since EU rules set forth a clear obligation upon
the issuers to make any Inside Information public as soon as possible and in a manner that enables fast access and
complete, correct and timely assessment of the information.
The above disclosure requirement shall be complied with through the publication of a press release in accordance with
the modalities set forth under MAR disclosing to the public the relevant Inside Information.
However, the Company may defer the publication of inside information if it can guarantee the confidentiality of the
information. Such deferral is only possible if the publication thereof could damage the Company’s legitimate interests
and if the deferral does not risk misleading the market. If the Company makes use of this deferral right, it needs to
inform the CONSOB thereof as soon as that information is made public. Upon request of the CONSOB, a written
explanation needs to be provided setting out why a delay of the publication was considered permitted. The Company is
required to post and maintain on its website all inside information for a period of at least five years.
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INSIDERS LISTS
Pursuant to Article 18 of the MAR, CNH Industrial as well as persons acting on its behalf or for its account, shall draw
up in accordance with a precise electronic format and keep regularly updated, a list of persons who, in the exercise of
their employment, profession or duties, have access to Inside Information. CNH Industrial shall transmit the Insider list
to the relevant competent authority, upon its request.
PUBLIC TENDER OFFERS AND PRIVATE BIDS
Any offer launched for CNH Industrial’s common shares (and /or for financial instruments linked to such common
shares) and bonds with respect to both voluntary and mandatory public tender offers shall be managed in compliance
with applicable laws and regulations, relevant provisions and with any requirement imposed by/or subject to national
relevant authority’s supervision, in particular, among other things, the provisions concerning the tender offer price, the
content of the offer document and the disclosure of the tender offer.
If and when occurring, CNH Industrial will respond appropriately to any potential future private bid considering the
circumstances of such matter at the relevant time.
DISCLOSURES PURSUANT TO DECREE IMPLEMENTING ARTICLE 10 EU-DIRECTIVE ON TAKEOVERS
In accordance with the Dutch Besluit artikel 10 overnamerichtlijn (the Decree), the Company makes the following
disclosures:
a.For information on the capital structure of the Company, the composition of the issued share capital and the
existence of the two classes of shares, please refer to Note 21 “Equity” to the Consolidated Financial Statements
in this Annual Report. For information on the rights attached to the common shares, please refer to the Articles of
Association which can be found on the Company’s website. To summarize, the rights attached to common shares
comprise pre-emptive rights upon issue of common shares, the entitlement to attend the general meeting of
shareholders and to speak and vote at that meeting and the entitlement to distributions of such amount of the
Company’s profit as remains after allocation to reserves. For information on the rights attached to the special
voting shares, please refer to the Articles of Association and the Terms and Conditions for the Special Voting
Shares which can both be found on the Company’s website and more in particular to the paragraph “Loyalty Voting
Program” of this Annual Report. As at December 31, 2021, the issued share capital of the Company consisted of
1,364,400,196 common shares, representing 77% of the aggregate issued share capital and 396,474,276 special
voting shares, representing 23% of the aggregate issued share capital.
b.The Company has imposed no limitations on the transfer of common shares. The Articles of Association provide in
Article 12 for transfer restrictions for special voting shares. The Company is not aware of any depository receipts
having been issued for shares in its capital.
c.For information on participations in the Company’s capital in respect of which pursuant to Sections 5:34, 5:35 and
5:43 of the Dutch Financial Supervision Acts (Wet op het financieel toezicht) notification requirements apply,
please refer to the chapter “Major Shareholders” of this Annual Report. There you will find a list of shareholders
who are known to the Company to have holdings of 3% or more.
d.No special control rights or other rights accrue to shares in the capital of the Company.
e.Current equity incentive plans adopted by the Company are administered by the Human Capital and
Compensation Committee.
f.No restrictions apply to voting rights attached to shares in the capital of the Company, nor are there any deadlines
for exercising voting rights. The Articles of Association do not allow the Company to cooperate with the issue of
depository receipts for shares.
g.The Company is not aware of the existence of any agreements with shareholders which may result in restrictions
on the transfer of shares or limitation of voting rights.
h.The rules governing the appointment and dismissal of members of the board of directors of the Company are
stated in the Articles of Association of the Company. All members of the Board of Directors are appointed by the
general meeting of shareholders. The term of office of all members of the Board of Directors is for a period of
approximately one year after appointment, such period expiring on the day the first Annual General Meeting of
Shareholders is held in the following calendar year. The general meeting of shareholders has the power to dismiss
any member of the Board of Directors at any time.
The rules governing an amendment of the Articles of Association are stated in the Articles of Association and
require a resolution of the general meeting of shareholders which can only be passed pursuant to a prior proposal
of the Board of Directors of the Company.
i.The general powers of the Board of Directors are stated in the Articles of Association of the Company. For a period
Board Report  Corporate Governance    113
of five years from September 28, 2018 up to and including September 27, 2023, the Board of Directors has been
irrevocably authorized by the shareholders at the AGM held on April 13, 2018 to issue special voting shares up to
the maximum aggregate amount of special voting shares as provided for in the Company’s authorized share
capital as set forth in Article 3, paragraph 1 of the Articles of Association. For a period of five years from April 13,
2018 up to and including April 12, 2023, the Board of Directors has been authorized by the shareholders at the
AGM held on April 13, 2018 as authorized body to issue common shares and to grant rights to acquire common
shares in the capital of the Company, which authorization is limited to: (i) the issuance of 15% of the total number
of common shares issued in the capital of the Company as of April 14, 2018; (ii) an additional 15% of the issued
share capital of the Company as per the same date in relation to mergers or acquisitions; and (iii) without
application of the 15% limitation, issuance of common shares and grant of rights or options (and the ability to
cancel such rights where necessary or appropriate) to subscribe for common shares in the capital of the Company
in so far as this would be done to meet obligations resulting from and on the terms of the equity incentive plans of
the Company. At the AGM held on April 13, 2018 for a period of five years starting from such date and therefore up
to and including April 12, 2023, the Board of Directors has been also authorized by the shareholders as authorized
body to limit or exclude the statutory preemptive rights of shareholders in connection with the issuance of common
shares or rights to acquire shares in the capital of the Company, pursuant the share issuance authorization
described above.
The Board of Directors is authorized to acquire special voting shares in the capital of the Company for no
consideration. Further rules governing the acquisition of shares by the Company in its own share capital are set
out in article 5 of the Articles of Association of the Company.
j.The Company is not a party to any significant agreements which will take effect, will be altered or will be
terminated upon a change of control of the Company as a result of a public offer within the meaning of Section
5:70 of the Dutch Financial Supervision Act (Wet op het financieel toezicht), provided that some of the loan
agreements guaranteed by the Company and certain bonds guaranteed by the Company contain clauses that, as
it is customary for such financial transactions, may require early repayment or termination in the event of a change
of control of the guarantor or the borrower. In certain cases, that requirement may only be triggered if the change
of control event coincides with other conditions, such as a credit rating downgrade.
k.Under the terms of the CNH Industrial EIP and the terms of engagement entered into with certain executive
officers, executives may be entitled to receive severance payments of up to one (1) times their annual cash
compensation and accelerated vesting of awards under plans issued under the CNH Industrial EIP if, within
twenty-four (24) months of a Change of Control (as defined therein), the executive’s employment is involuntarily
terminated (other than for Cause -as defined therein-) by the relevant entity of the CNH Industrial group or is
terminated by the participant for Good Reason (as defined therein).
SUSTAINABILITY PRACTICES
CNH Industrial is committed to operating in an environmentally and socially-responsible manner, creating long-term
value for all its stakeholders. For this purpose, the Company has a robust Governance model, to manage all its
operations in an ethical and transparent way. Sustainability in CNH Industrial is a way of doing business and it involves
every area, function and employee within the organization.
The main tools of the sustainability management system are: the materiality analysis, which defines social and
environmental priorities; approximately 200 KPIs, which are used to help monitor sustainability performance; the
Sustainability Plan, which tracks commitments; and the annual Sustainability Report.
For further details see the previous section on “Our Commitment to Sustainable Development and Long-term Value
Creation”.
COMPLIANCE WITH DUTCH CORPORATE GOVERNANCE CODE
While CNH Industrial endorses the principles and best practice provisions of the DCGC, its current corporate
governance structure deviates from the following best practice provisions, only with respect to minor aspects as follows:
▪Under best practice provision 5.1.3, the chairman of the management board should be an independent Director.
CNH Industrial has adopted a one-tier governance structure with two Executive Directors and, in accordance with
section 14(2) of the Articles of Association, the Board has granted to them, respectively, the title of ‘Chair’ and
‘Chief Executive Officer’. The Board has entrusted to an independent Director the duties attributed by the DCGC to
the chairman of the management board in one-tier companies (or to the chairman of the supervisory board in two-
tier companies). The Board has granted to such independent Director the title of ‘Senior Non-Executive
Director’ (so as to distinguish such Director from the Chairperson of the Company, who is an Executive Director).
As a consequence, despite the difference in corporate titles, the Company believes it complies with best practice
Board Report  Corporate Governance    114
provision 5.1.3, as the current Senior Non-Executive Director satisfies the requirements described in best practice
provision 5.1.3 of the DCGC.
▪CNH Industrial deviates from best practice provision 2.3.4 in that the Senior Non-Executive Director (who is
independent) is the chairman of the Human Capital and Compensation Committee, whereas the DCGC provides
that the persons who chairs the board meeting should not assume the role of chairman of the remuneration
committee. The Company believes that such duplication of role enhances the effectiveness of the Senior Non-
Executive Director and is consistent with the intent of best practice provision 2.3.4.
▪The Board has not appointed a vice-chairman in the sense of best practice provision 2.3.7 of the DCGC. Since the
Company adopted a one-tier governance structure with a single management board comprised of Executive
Directors and Non-Executive Directors, the Board has granted the title of ‘Chairperson’ to one Executive Director
and designated as ‘Senior Non-Executive Director’ one of the Non-Executive Directors. The Senior Non-Executive
Director is responsible for the proper functioning of the Board of Directors and its Committees. Furthermore, the
Board Regulations provide that in the absence of the Senior Non-Executive Director any other Non-Executive
Director chosen by a majority of the Directors present at a meeting shall preside at meetings of the Board of
Directors. The Company considers the above sufficient to ensure that the role and function assigned by the DCGC
to the vice-chairman is properly discharged.
▪Pursuant to best practice provision 4.1.8 of the DCGC, every Executive and Non-Executive Director nominated for
appointment should attend the Annual General Meeting at which votes will be cast on his/her nomination. Since,
pursuant to the Articles of Association, the term of office of Directors is approximately one year, such period
expiring on the day the first Annual General Meeting of Company shareholders is held in the following calendar
year, all members of the Board of Directors are nominated for (re)appointment each year. By publishing the
relevant biographical details and curriculum vitae of each nominee for (re)appointment, the Company ensures that
the Company's general meeting of shareholders is well informed in respect of the nominees for (re)appointment
and in practice only the Executive Directors, and Non-Executive Directors nominated for the first time for
appointment to the Board, will therefore attend the Annual General Meeting.
▪The Company does not have a retirement schedule as referred to in paragraph 2.2.4 of the DCGC. Pursuant to the
Articles of Association, the term of office of Directors is approximately one year, such period expiring on the day
the first Annual General Meeting of Company shareholders is held in the following calendar year. This approach is
in line with the general practice for companies listed in the U.S. As the Company is listed on the NYSE, it also
relies on certain U.S. governance requirements and practices, one of which is the reappointment of Directors at
each Annual General Meeting of Company shareholders.
Board Report  Corporate Governance    115
Statement by the Board of Directors
Based on the assessment performed, the Board of Directors believes that, as of December 31, 2021, the Group’s and
the Company’s Internal Control over Financial Reporting is considered effective and that (i) the Board Report provides
sufficient insights into any material weakness in the effectiveness of the internal risk management and control systems.
This is discussed in section “Internal Control System”; (ii) the internal risk management and control systems are
designed to provide reasonable assurance that the financial reporting does not contain any material inaccuracies. This
is discussed in section “Internal Control System”; (iii) based on the current state of affairs, it is justified that the Group’s
and the Company’s financial reporting is prepared on a going concern basis. This is justified by the discussion in the
Notes to the Consolidated Financial Statements and in the Notes to the Company Financial Statements; and (iv) the
Board Report states those material risks and uncertainties that are, in the Board of Director’s judgment, relevant to the
expectation of CNH Industrial’s continuity for the period of twelve months after the preparation of the Board Report.
Refer to section “Risk Factors”.
March 1, 2022
Suzanne Heywood
Chair
Scott W. Wine
Chief Executive Officer
Responsibilities in respect of the Annual Report
The Board of Directors is responsible for preparing the Annual Report, inclusive of the Consolidated and Company
Financial Statements and Board Report, in accordance with Dutch law and International Financial Reporting Standards
as issued by the International Accounting Standards Board and as adopted by the European Union (“EU-IFRS”).
In accordance with Section 5:25c, paragraph 2 of the Dutch Financial Supervision Act, the Board of Directors states
that, to the best of its knowledge, the Financial Statements prepared in accordance with applicable accounting
standards provide a true and fair view of the assets, liabilities, financial position and profit or loss for the year of CNH
Industrial N.V. and its subsidiaries and that the Board Report provides a true and a fair view of the performance of the
business during the financial year and the position at balance sheet date of CNH Industrial N.V. and its subsidiaries,
together with a description of the principal risks and uncertainties that CNH Industrial N.V. and the Group face.
March 1, 2022
The Board of Directors
Suzanne Heywood
Scott W. Wine
Léo W. Houle
Catia Bastioli
Howard W. Buffett
John Lanaway
Alessandro Nasi
Vagn Sørensen
Åsa Tamsons
Board Report  Corporate Governance    116
REMUNERATION REPORT
Letter from the Human Capital and Compensation Committee Chair
Dear Stakeholders,
I take the opportunity in this annual Remuneration Report to share that we have both expanded the charter and
changed the name of the Compensation Committee to the Human Capital and Compensation Committee (“HC & CC” or
the “Committee”). All of the same executive compensation responsibilities continue with duties added to assist the
Board of Directors with the periodical review of:
a.talent development/talent management and succession plans for the Senior Leadership Team;
b.the Company’s policies and initiatives related to equal employment opportunity, as well as diversity, equity, and
inclusion; and
c.the Company’s programs designed to measure and improve overall employee engagement.
With this expanded charter, we emphasize the importance we place on our people to achieve our strategic goals and
continue as a sustainable business. Developing talent, ensuring ready succession, strengthening an inclusive and
equal opportunity working environment, and increasing employee engagement are human capital goals that are
reviewed in the leadership evaluation of our Executive Directors.
Later in this report, we highlight certain initiatives during 2021 that support this addition to our Committee’s charter and
the connection to compensation actions.
Through this annual Remuneration Report, our objective is to provide our stakeholders each year with clear and
comprehensive disclosure of the Company’s executive compensation policies and decisions during the year with
respect to our executive and non-executive directors. This year’s report provides the business context and explicitly
recognizes the strong performance and resilience demonstrated after the extraordinary challenges we faced in 2020
which continued into 2021 and as well as both the organic and non-organic growth achieved, showing the clear link
between performance and the executive compensation actions taken in 2021.
Executive Directors in 2021
As disclosed in last year’s report, effective January 4, 2021, Scott W. Wine joined CNH Industrial as the new Chief
Executive Officer and was appointed by our shareholders as an executive director at the April 15, 2021 Annual General
Meeting of the shareholders. Suzanne Heywood continued in her on-going role of an executive director and Chair of the
Board.
When recruiting the new CEO in late 2020, the Company was managing tremendous change in top leadership in
addition to the challenges of operating with the adverse impact of the pandemic. Following the departure of our prior
CEO (and our CFO immediately thereafter) in early 2020, our Chair took on the additional role of acting CEO and
served in that role for the remainder of 2020, as the sole Executive Director. It was in that context that the Chair and
Committee successfully recruited a high caliber candidate for the CEO role.
Mr. Wine comes with valuable relevant experience and a proven successful track record. In his former company, he
was the recipient of a very competitive pay package with highly leveraged pay elements. To attract him to CNH
Industrial, the Board needed to provide a better total compensation package. This required setting both his fixed and
variable pay in the upper percentile of our compensation peer group, as well as covering his forfeited 2020 variable pay
(short and long-term) related to his CEO role at his prior employer.
Mr. Wine, as an experienced Chief Executive Officer, and our Chair, Lady Heywood, with her in-depth understanding of
CNH Industrial and adept guidance, worked hand-in-hand to lead CNH Industrial to successfully execute its strategic
objectives for 2021, most importantly the execution of the portfolio transformation, while also achieving revenue and
profitability growth in all segments and regions.
CNH Industrial’s financial recovery in 2021 to levels exceeding even pre-pandemic periods demonstrates that hiring Mr.
Wine and the Board`s investment decision on the CEO’s pay were sound actions.
2021 Business Context
As for most businesses globally, the impacts of the COVID-19 pandemic continued into 2021. The Senior Leadership
Team continued to prioritize: (1) safeguarding the health and safety of our employees, (2) ensuring business continuity,
and (3) supporting dealers, customers, suppliers, and the communities where we operate.
Board Report  Remuneration Report  117
Our markets came back strong, in each industry and in all regions, as the world adjusted to the pandemic. CNH
Industrial was well positioned to capitalize on this increased demand, and our financial results show our success, while
still protecting our employees and supporting our dealers. The constant supply chain shortages and stoppages and
related increased costs were extremely challenging, but our leaders and employees stepped up with creativity,
ingenuity, and relentless determination to find solutions that kept operations running efficiently and effectively.
Positioned stronger for the future
While exceeding the short-term operational goals in 2021 and reaching record Adjusted Diluted Earnings Per Share
results, we also achieved key strategic priorities. First and foremost, we executed the separation of the “Off-Highway”
and “On-Highway” businesses. The businesses’ futures have been further strengthened by impressive product
launches and strategic acquisitions and alliances. The Company completed the acquisition of Raven Industries, Inc., a
precision agriculture technology company affording CNH Industrial greater digital and technology expertise for its
Agriculture segment, and acquired Sampierana S.p.A., bringing key excavator innovation in-house for the Construction
Equipment segment. The Commercial Vehicles segment inaugurated its joint venture manufacturing facility with US-
based partner Nikola Corporation, to make electric-powered heavy trucks in Ulm, Germany. FPT Industrial continued to
strengthen its marine and alternative power solutions portfolio, achieved manufacturing milestones, and expanded its
distribution network for increased external revenue and profitability opportunities. The Financial Services segment
continued to provide financing support to our dealers and customers.
We believe the Executive Directors’ remuneration in 2021 is consistent with the Company’s financial performance and
achievements of its strategic objectives.
On behalf of my fellow members on the Human Resources and Compensation Committee, Catia Bastioli, Howard W.
Buffet and Alessandro Nasi, I would like to express our appreciation for both Scott and Suzanne’s leadership and the
accomplishments delivered in 2021.
With this, I present to you our 2021 Remuneration Report.
Sincerely,
Léo Houle
Chairman of the Human Resources and Compensation Committee and Senior Non-Executive Director
Remuneration Policy Available on our Website
Our Remuneration Policy is designed to competitively reward the achievement of both short-term and long-term
performance goals, to help drive cultural transformation organization-wide, and to attract, motivate, and retain highly
qualified senior executives who are committed to performing their roles in the long-term interest of our shareholders and
other stakeholders. Within the scope of the Remuneration Policy, the remuneration of the Executive Directors is
determined by the Board of Directors, at the recommendation of the Committee. This annual Remuneration Report
describes how the pay programs and practices of the Executive and Non-Executive Directors were implemented in
2021, in accordance with the Remuneration Policy, which was last approved by shareholders at the 2020 Annual
General Meeting (AGM). A copy of the Remuneration Policy is available on the Company’s website,
www.cnhindustrial.com.
At the 2021 AGM, 73.27% of shareholders voted in favor of the Remuneration Report. To better understand the
concerns of dissenting shareholders, the Company engaged with several large investors who voted against our
Remuneration Report in 2020. During these discussions, we took the opportunity to clarify and explain the rationale for
our 2020 remuneration actions. We found the discussions productive, and following the feedback received, this year’s
report includes enhanced transparency, context and reasoning for 2021 compensation actions.
Board Report  Remuneration Report  118
Company Highlights
The foundation of CNH Industrial’s Remuneration Policy is pay for performance. The key 2021 Company achievements,
successes and developments were driven by a pay philosophy that rewards the achievement of our goals.
Successful portfolio transformation
On January 1, 2022, CNH Industrial successfully implemented the separation of Iveco Group N.V., which included its
Commercial Vehicles and Specialty Vehicles business, Powertrain business and related Financial Services business
from CNH Industrial N.V. (the “Demerger”).
Strategically, the Demerger allows the Iveco Group and CNH Industrial, which are differently impacted by global trends,
and have different market outlooks, attractiveness, and competitive dynamics, to focus more closely on their core
businesses and customers. Furthermore, there were limited manufacturing, distribution and sales synergies between
CNH Industrial and the Iveco Group. FPT will remain a key supplier to CNH Industrial through a long-term supply
agreement.
Following the Demerger, there are two independent and stand-alone listed entities, each well positioned to compete
with their peers. Through the support of their separate financial, human, and managerial capital, we believe all their
respective businesses will be better able to realize their full potential in terms of financial performance, shareholder and
broader stakeholder value generation, and sustainability commitment, minimizing to the extent strictly necessary any
commingling of the business needs of Iveco Group and CNH Industrial Post-Demerger.
The Iveco Group shares started trading on Euronext Milano on January 3, 2022. The combined value of CNH Industrial
and Iveco Group shares at the first day of trading was some 9.1% higher than the value of CNH Industrial shares as of
November 10, 2021, the day before the publication of the prospectus of the listing of Iveco Group, demonstrating the
appreciation of the equity markets for the transaction.
Highlights of our financial performance in 2021 (*)
CNH Industrial had a very strong year financially, as the positive results of the following performance indicators
demonstrate:
▪Net sales of Industrial Activities of $31.6 billion ($24.3 billion in 2020; $26.1 billion in 2019), a 28% increase from
2020 and 22% from 2019 at constant currency.
▪Adjusted Net Income of $1.9 billion ($437 million in 2020 and $1.2 billion in 2019), up 330% compared to 2020
and 60% compared to 2019 as a result of strong sales and price recovery over inflationary pressures.
▪Adjusted diluted Earnings Per Share (“EPS”) up 382% year-over-year at $1.35 per share a record high ($0.28
per share in 2020 and $0.84 per share in 2019).
▪Net cash position of Industrial Activities at the end of 2021 was $0.3 billion (compared to net cash of $0.8 billion
in 2020 and net debt of $0.9 billion in 2019), after reflecting the disbursement for the acquisition of 100% interest
of Raven and 90% interest in Sampierana. Free cash flow of Industrial Activities of $1.8 billion remained strong
(after a record $1.9 billion reported in 2020), due to strong operating performance throughout the entire year.
▪Fitch Ratings upgrading CNH Industrial's long-term credit rating by two notches to BBB+ in early January,
reflecting the recent Demerger. The investment grade ratings of “BBB” from Standard & Poor’s and “Baa3” from
Moody’s remained unchanged and all agencies indicate stable outlooks.
The 2021 results of the variable pay plan metrics similarly show strong company performance, overachieving the
targets set. Details on the annual bonus plan results are detailed in the short-term incentives section of this report on
page 129.
(*)  Includes GAAP and non-GAAP financial measures derived from financial information prepared in accordance with U.S. GAAP. We present our financial performance under U.S.
GAAP as certain components of the remuneration are determined based on results under U.S. GAAP. Refer to the specific table at the end of the Remuneration Report for the
reconciliation between the non-GAAP financial measure and the most comparable GAAP financial measures.
Board Report  Remuneration Report  119
Definitions of non-GAAP metrics referenced in the above list (derived from financial information prepared in accordance
with U.S. GAAP):
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 an 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.
Constant Currency: CNH Industrial discusses 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 to eliminate the impact of
foreign exchange rate fluctuations.
Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total Debt plus Derivative
liabilities, net of Cash and cash equivalents, Current securities, Derivative assets and other current financial assets
(primarily current securities, short-term deposits and investments towards high-credit rating counterparties). We provide
the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly comparable GAAP financial measure
included in our consolidated statement of financial position. 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 Cash (Debt) 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.
Reconciliations of non-GAAP metrics referenced in the above list to US-GAAP metrics can be found on page 142 in the
Annual Report.
Environmental, Social and Corporate Governance (ESG) Highlights
CNH Industrial reinforced our commitment to sustainability in 2021, creating a dedicated senior leadership position to
this work and to delivering ESG results. The Company maintained its top-ranking position in the Dow Jones
Sustainability Indices (DJSI) World and Europe for the eleventh consecutive year, while also receiving a Platinum medal
certification in the prestigious annual EcoVadis sustainability assessment.
To support our ESG initiatives, we also have quantifiable ESG-related performance criteria in the 2021 Company Bonus
Plan performance goals, specifically CO2 Emissions % and Accident Frequency Rate metrics, which impact the variable
pay for all the participants, including the CEO and our Senior Leadership Team. Details of the 2021 goals and
achievements are disclosed in the short-term incentive section of this report.
The ESG targets for the annual Company Bonus Plan were chosen based on the outcome of an in-depth materiality
analysis, revealing that CO2 emissions and safety are the most material aspects internally and for stakeholders.
•CNH Industrial is committed to reducing: the use of fossil fuels in favor of renewable energy sources; energy
consumption through more efficient processes; and CO2 emissions by cutting energy consumption while adopting
both innovative technical solutions.
•CNH Industrial’s approach to occupational health and safety is based on effective preventive and protective
measures, implemented both collectively and individually, aimed at minimizing risk of injury in the workplace. CNH
Industrial endeavors to ensure optimal working conditions applying principles of industrial hygiene and ergonomics
to managing processes at organizational and operational level. The Company adopts the highest standards in the
countries in which it operates, even where regulatory requirements are less stringent, believing this to be the best
way to achieve excellence.
Board Report  Remuneration Report  120
Diversity and Inclusion
Our Company is committed to creating a diverse and inclusive environment where all employees feel empowered,
engaged, and valued. To progress towards our company’s diversity and inclusion goals, we are carrying out dedicated
initiatives around the globe, such as the following:
•Increasing consistently the number of women managers, including three new into Senior Leadership Team
roles in 2021.
•Providing D&I training to employees.
•All Senior Leadership Team (SLT) members and the managers reporting directly to them (over 200 employees)
actively participated in several workshops on unconscious bias and inclusion, aimed at making them fully
aware of the potential bias that might arise in people management processes and at enhancing their
understanding and sense of inclusivity.
•A “Let’s Talk” series focused on diversity and equity and facilitated by a D&I expert was attended by 700
employees.
•In North America, CNH Industrial is a Corporate Partnership Council member of the Society of Women
Engineers (SWE), an organization that empowers women to achieve their full potential in careers as engineers
and leaders, highlighting the value of diversity. As a corporate member, the Company attended the SWE’s
annual conference and continued to support its mission and objectives by funding programs, supporting
diversity, and creating and promoting opportunities for women in engineering and technology.
•Several initiatives in Europe and South America have been implemented to foster the inclusion of employees
with disabilities. Spain has renewed the commitment to support the hiring and integration of workers with
physical disabilities in the manufacturing plant, while in France a dedicated training has been delivered to
employees who work directly with deaf or hearing-impaired colleagues.
•In Brazil, CNH Industrial’s commitment to D&I was rewarded for the third year with the Prêmio AB Diversidade
no Setor Automotivo award by Automotive Business and MHD Consultoria, in collaboration with a jury of
diversity specialists. The award is given in recognition of companies whose initiatives and outcomes foster
internal diversity and inclusion while also generating a positive impact on the automotive industry.
•In South America the Women that Inspire initiative has been rolled out both in Brazil and Argentina. This action
is an output from a focal group organized to involve and gather input from employees. Women that Inspire
aims to share the professional stories of women who are in key positions in the organization and who can
inspire all professionals on their journeys.
Business Highlights
Our strong financial performance in 2021 reflected the commitment of our businesses to meet the needs of customers
with innovative products launched across all segments. Additionally, strategic acquisitions strengthened our position in
our industries even further. Our business segments’ product and services achievements are vital to the overall
performance of CNH Industrial in 2021 and for the future. Below are some highlights during 2021.
Board Report  Remuneration Report  121
OFF HIGHWAY - BUSINESSES
Agriculture
Construction
▪Acquisition of Raven strengthens CNH Industrial's position in
Precision Agriculture.
▪Acquisition of Sampierana Group, with their broad mini and midi
excavator portfolio under the Eurocomach brand, solidifies CNH
Industrial's presence in a critical market segment.
▪The world's first production T6 methane Power tractor from New
Holland Agriculture, equipped with the FPT Industrial N67 NG
engine, won the title of Sustainable Tractor of the year 2022 at the
EIMA exhibition.
▪CASE launched the tv620b compact track loader and new CASE
backhoe loader SV series.
▪New Holland Agriculture won a 2021 AE50 Innovation Award for the
BigBaler 340 High Density and launched the new T7 Heavy Duty
tractor and the Speedrower PLUS Series Self-Propelled
Windrowers.
▪CASE B series compact track loaders and skid steer loaders made
the Top 100 new Product List of Construction Equipment magazine.
▪Case IH launched New Optum AFS Connect and AFS Soil
Command™ tillage prescription technology.
▪CASE presented CXC-series excavators and the new generation skid
steer loaders at the 2021 Changsha Construction Equipment
Exhibition. The B-series skid steer loader won the "Golden Gear"
Award during the event.
▪Case IH won the 2021 AE50 Innovation Award for the AFS
Connect® Steiger.
▪CASE SR250B skid steer loader was awarded "TOP 50 Products of
China's Construction Machinery Industry 2021".
▪Case IH Axial-Flow 9250 Automation combine was named 2021
Machine of the Year in Brazil.
ON HIGHWAY - BUSINESSES
Commercial and Specialty Vehicles
Powertrain
▪Iveco and Nikola venture marks a milestone with first production of
the Nikola Tre electric heavy-duty trucks at Ulm Germany plant.
▪FPT e-Axle is a global first: it is the only electric axle in the market
suitable for heavy-duty, 6x2 or 4x2 articulated 44-ton GCW (Gross
Combination Weight) trucks.
▪Numerous product launches by IVECO brand:
▪In China, FPT Industrial implemented the innovative Cursor 9, Cursor
11, and Cursor 13 engines that meet in advance the GBVI emission
standards.
▪IVECO DRIVE PAL, pioneering on-board vocal driver companion.
▪FPT Industrial established a new plant in Chongqing to manufacture
After Treatment System (ATS), an equipment that allows our engines
to meet the GBVI emission standards.
▪NEW IVECO S-WAY, the 100% connected truck takes fuel
efficiency and driver-centricity to the next level.
▪FPT Industrial launched a new C90 170 Stage V marine engine
dedicated to heavy-duty applications.
▪NEW Daily, the smart vehicle that future-proofs the customer’s
business.
▪FPT Industrial’s engine plant in Bourbon-Lancy, France celebrated
two key milestones in 2021: it produced its 10,000th CURSOR 13
natural gas engine and became the group’s first engine plant to
achieve Gold Level certification in the World Class Manufacturing
(WCM) program.
▪NEW Daily Minibus, the minibus that takes passenger transport
to the next level.
▪NEW IVECO T-WAY: completes the heavy range with the
toughest vehicle engineered for the most extreme off-road
missions.
▪IVECO BUS branded CROSSWAY range reached a milestone with
50,000 units produced, becoming the world’s best-selling intercity
bus.
▪Iveco S-Way Np 460 LNG version was named Sustainable Truck of
the Year in 2021 by Vado e Torno Magazine.
Compensation Peer Group
The quality of our leaders and their commitment to the Company are fundamental to our success. Our compensation
philosophy supports our business strategy and growth objectives in a diverse and evolving global market. A key
principle of our compensation philosophy is to provide a competitive compensation structure that will attract, motivate,
and retain highly qualified senior executives.
The Company periodically benchmarks its executive compensation program and the compensation offered to executive
directors against peer companies, and it monitors compensation levels and trends in the market. The Committee strives
to develop a compensation peer group that best reflects all aspects of CNH Industrial’s business and considers, among
other things, public listing, industry practices, geographic reach, and revenue proximity.
Due to the variety of industries in which we compete and other factors, our Company has few direct business
competitors, which makes it difficult to create a representative compensation peer group based on industry, revenues,
or market capitalization alone. Additionally, notwithstanding CNH Industrial N.V. being a European headquartered
Company, evaluation against peer companies incorporated in only the European geographic region is inappropriately
restrictive given the Company’s strong commercial presence in the United States, where most of our direct competitors
are based (six out of the nine companies listed in the table below). Accordingly, the compensation peer group for the
Board Report  Remuneration Report  122
Chief Executive Officer (“CEO”) includes a blend of U.S. S&P 500 industrial and non-U.S. global industrial companies,
targeting an overall median revenue size comparable to CNH Industrial N.V.
Given our extensive worldwide presence, the balance of both U.S. and European peers provides meaningful
comparisons to the relevant talent market for our executives and supports our need to compete globally for top talent.
U.S. Companies
Non-U.S. Companies
AGCO Corporation*
AB Volvo*
Caterpillar Inc.*
BAE Systems plc*
Cummins Inc.*
Continental AG
Deere & Company*
Magna International Inc.
General Dynamics Inc.*
Rolls-Royce Holdings plc
Honeywell International Inc.
Traton SE*
PACCAR Inc.*
Valeo SA
The nine companies asterisked, of which six are U.S. based, represent principal competitors in our businesses’
industries which we also compare ourselves to in terms of financial and operational performance.
With the completion of the acquisition of Navistar by Traton in 2021, Navistar was removed from the compensation peer
group. Our compensation peer group is utilized to benchmark targeted median pay levels and peer pay practices.
For the benchmark comparison for the Chair, a customized market review was done given the above compensation
peer group has few peers who have a comparable Chair only role.
Board Report  Remuneration Report  123
Overview of Remuneration Elements
The following table summarizes the primary remuneration elements for our CEO and Chair, our Executive Directors, as
specified in the Remuneration Policy.
Remuneration
Element
Description
2021 Implementation
Base Salary
Fixed cash compensation set competitively relative to appropriate
peer group when attracting new talent and maintaining competitive
levels in line with internal increases and other moderating factors
on-going.
See the Summary of 2021 executive
compensation actions table below (page 125 for
the CEO and page 126 for the Chair).
Short-Term
Variable
Subject to the achievement of annually pre-established,
challenging financial and other designated performance
objectives.
Consistent with the Company’s performance,
variable pay was earned by the CEO. See the
specific short-term variable section below (page
129) on details of goals achieved and payout
earned.
The Chair does not participate in the short-term
incentive plan.
Long-Term
Variable
To align Executive Directors’ interests with Company strategic
goals and reward for sustained long-term growth.
Two components:
75% based on Company performance awards (Performance
Share Units or PSUs).
25% retention-based awards (Restricted Share Units or RSUs),
subject to favorable individual performance and demonstration
of Company values.
The Company performance component is subject to the
achievement of predetermined challenging performance and
market objectives, covering a 3-year performance period.
Equity holding period of five years from grant aligns with Dutch
Corporate Governance Code ("DCGC").
The 2021-2023 performance cycle grant was
made to the Chair in December 2020 and the
CEO’s grants were made upon his hire date on
January 4, 2021.  No shares vested in 2021
In the specific section below (page 131) on
Long-Term Incentives (LTI), the equitable
adjustment on unvested awards due to the
impact of the Demerger on the underlying
shares of the awards is shown for both the
CEO’s and Chair’s awards. The 3-year
performance goals for the PSUs will be restated
to reflect the changed capital structure for Years
2022 and 2023.
All equity awards granted have performance
conditions, the PSUs based on company
performance metrics and targets and the RSUs
based on individual performance as assessed
by the Non-Executive Directors of the Board.
Post-
Employment
Benefits
CEO:
▪Retirement savings
benefits available to U.S.-
based salaried employees.
▪Severance protection of 12
months’ base salary,
consistent with DCGC best
practice.
▪Prorated equity award
vesting in the event of
death, disability, or
involuntary termination by
the Company (not for
cause).
▪Retiree healthcare benefits.
Chair:
▪Retirement savings
benefits comparable to
U.K. based salaried
employees.
▪Prorated equity award
vesting in the event of
death, disability or
involuntary termination
by the Company (not for
cause).
Benefits for CEO and Chair are in-line with the
Remuneration Policy.    The CEO’s non-
compete and non-solicitation period is 12
months to align with the limit of his severance
protection. 
This is a deviation from the periods mentioned
in the Remuneration Policy which specified a
non-competition and a non-solicitation period of
two years. The deviation was accepted in line
with section 9 of the Remuneration Policy to
offer a competitive package, as the severance
protection was less than he had, and the
Policy’s restrictive covenants were more
punitive than he had with his former employer.
Other Benefits
CEO:
▪U.S. benefits including
company car, health, life,
accident, and disability
insurance, and tax
assistance.
▪Limited private aircraft
usage.
▪Tax equalization for any
non-U.S. sourced
employment income.
Chair:
▪Select U.K. Executive
benefits including life,
accident and disability
insurance.
▪Limited personal usage
of car service for
security.
Benefits for our CEO and Chair are consistent
with the Remuneration Policy.
The CEO has an annual limit of 175 flight hours
of private aircraft usage, provided as a taxable
benefit to him. His 2021 usage was within this
limit.
The limited usage falls within the Remuneration
Policy’s customary fringe benefits consistent
with competitive offerings of appropriate peer
group.
Board Report  Remuneration Report  124
Summary of 2021 executive compensation actions
The Executive Directors’ 2021 compensation was consistent with key principles of our remuneration policy,
competitively set compared to the relevant benchmarks and structured to reinforce our pay for performance
compensation philosophy. The following charts summarize the 2021 compensation actions for additional transparency,
context, and reasoning.
2021 Pay Actions
Scott W. Wine, Chief Executive Officer
Target Compensation
▪Both fixed and target variable elements of compensation were positioned in the upper
percentile of the compensation peer group to be competitive with his compensation at
his prior employer and required to attract a high caliber CEO to lead the Company.
▪Per the CEO’s employment agreement, no changes in target compensation are
expected through 2025, five years from hire.
Sign-on Incentives
▪Signing incentives covering his forfeited variable pay awards from his prior employer:
◦A one-time cash payment of $1.573MM in 2021 covered his forfeited 2020 bonus.
◦A three annual installment cash award totaling $7.578MM covers his forfeited
long-term awards not covered under the CNH Industrial 2021-2023 LTI awards.
The first installment of $4.248MM was paid in January 2022.
Short-Term Incentive
(STI)
▪The CEO’s target bonus is 200% of his base salary of $1,700,000 and maximum is 2
times target or 400% of base salary.
▪Per the Company Bonus Plan (CBP) design and the predetermined goals, the overall
company performance achieved in 2021 was 187%. Considering the difficulty in
forecasting the extent of the market demand recovery when the 2021 targets were set,
the CEO proposed, and the Committee agreed to reduce the CEO’s bonus to 150% of
target. The 2021 performance bonus to be paid in 2022 is $5.1MM. 
▪Details on the plan are provided on the short-term incentive section of this report.
Long-Term Incentive
(LTI)
▪Consistent with the long-term incentive plan presented to shareholders in 2020, the 2021
award was valued at three times the targeted annual long-term incentive (“LTI”) value to
fill the competitive gap resulting from forfeited prior employer’s awards. Subsequent
annual rolling grants will be valued at the targeted annual LTI value. 
◦Per the approved plan, 75% are linked to company performance and 25% linked to
individual performance as assessed by the Non-Executive Directors. 
◦The Company performance share units (PSUs) are capped at 200% of target and
RSUs capped at 100% of target.
◦The CEO’s grants were effective upon his hire date. No vesting occurred in 2021. 
◦For the PSUs, the first-year results of the 3-year performance period (2021-2023) are
tracking above target achievement of the goals. The final payout is determined only
at the end of the vesting period, based on the 3-year cumulative Adjusted EPS, the 3-
year average Industrial Return on Invested Capital, and with a downward/upward
multiplier of +/- 25% (but still capped at 200% of target) based on 3-year cumulative
relative TSR.
Share ownership
guidelines
▪CNH Industrial’s share ownership guidelines require Executive Directors to acquire CNHI
common shares with a value of 5-times base salary within five years of appointment to
the Board. Mr. Wine purchased 200,000 shares on September 15, 2021, representing
2.29 times his base salary as of the end of 2021.
Board Report  Remuneration Report  125
2021 Pay Actions
Suzanne Heywood, Chair
Target Compensation
▪Target compensation was positioned at median of the competitive benchmark for a
Chair only role, which required comparing beyond our compensation peer group.
▪No change in target compensation is expected for 2022.
Short-Term Incentive
(STI)
▪The Chair does not participate in the short-term incentive plan.
Long-Term Incentive
(LTI)
▪The Chair participates in the 2021-2023 LTI plan
◦Per the approved plan, 75% are linked to company performance and 25% linked to
individual performance as assessed by the Non-Executive Directors. 
◦The Chair’s LTI grant was made on December 12, 2020, as disclosed in last year’s
report. No vesting occurred during 2021.
Share ownership
guidelines
▪The Chair has met the requirement to own shares representing 5x her base salary per
the CNH Industrial share ownership guidelines described above.
2021 Realized Pay
The tables below show the key components of total direct compensation realized in 2021, base salary and short- and
long-term incentives, to provide additional perspective.
CEO
The CEO’s realized compensation related to the 2021 performance year compared to his annual total direct
compensation (TDC) at target variable pay levels is shown below:
Pay Element USD
2021 Realized
Compensation
Annual at Target
Base Salary)
$1,700,000
$1,700,000
2021 STI (1)
$5,100,000
$3,400,000
2021 LTI (2)
$8,994,888
$12,000,000
Total Direct:
$15,794,888
$17,100,000
Extraordinary (3)
$1,573,133
$1,573,133
Total Direct plus Extraordinary(4):
$17,368,021
$18,673,133
Notes:
(1)  Target was 200% and maximum 400% of base salary. The Committee exercised negative discretion to cap the 2021 STI bonus payment at 150% of
the CEO’s target payout, considering the much stronger actual market demand than anticipated when targets were set in early 2021. The $5.1 million
payout represents 75% of maximum bonus.
(2)  The 2021 LTI value reflects retention-based Restricted Share Units (RSUs) on the grant date and Company performance-based Performance Share
Units (PSUs) when vested, consistent with the realized equity award valuation used by corporate governance advisory firms. In 2021, 2,269,000 PSUs
were granted but none vested. 756,000 RSU awards were granted upon hire date, valued at $11.898/share unit.
(3) This amount is the sign-on incentive to offset the bonus compensation forfeited from Mr. Wine’s prior employer. In addition, a cash sign-on incentive
in the amount of $7.578 million, payable in three annual installments, was awarded to Mr. Wine to offset forfeited equity awards. The first installment of
$4.248 million was paid in January 2022. There is no risk of forfeiture except for voluntary termination or termination by the Company for cause.
(4)  Not included in the total realized compensation are the Company provided fringe benefits and pension or similar benefits, which are included in the
Summary Remuneration table.
Board Report  Remuneration Report  126
Chair
The Chair's realized compensation related to the 2021 performance year:
Pay Element USD
Chair 2021 Realized
Annual TDC at Target
Base Salary
$500,000
$500,000
2021 STI
$—
$—
2021 LTI(1)
$—
$1,500,000
Total Direct :
$500,000
$2,000,000
Extraordinary
$—
$—
Total Direct plus Extraordinary:(2)
$500,000
$2,000,000
Notes:
(1) The 2021 LTI value reflects retention-based Restricted Share Units (RSUs) when granted and Company performance-based Performance Share
Units (PSUs) when vested, consistent with the realized equity award valuation used by corporate governance advisory firms. In 2021, no PSUs vested
and no RSU awards were granted.
(2) Not included in the total realized compensation are the Company pension or similar benefits, which is included in the Summary Remuneration table.
In accordance with the Dutch Corporate Governance Code, the Committee discussed with the CEO and the Chair their
respective  2021 compensation, and each are fully aligned with the compensation awarded.
Internal Pay Ratios
When setting the Executive Directors’ compensation, the Committee considers both the appropriate external
benchmark as well as the internal pay ratios within the Company. Although the primary consideration is market
competitiveness to attract and retain highly qualified senior executives in a large, global, complex organization, a
baseline internal comparison is set, and trends are tracked. The trend in executives’ compensation is evaluated in
relation to the trend in employees’ compensation.
In line with the guidance under the DCGC, the CEO Pay ratio and trend is disclosed in the annual Remuneration
Report. The basis of the pay ratio comparison uses the prevalent Dutch methodology of average employee
compensation, including all labor costs. Consistent with prior years, CEO compensation and average employee
compensation use the accounting value of equity awards. Under this methodology, the value of an equity award is
allocated over the period between grant and vesting.
The average employee compensation is the total personnel costs reported in the Annual Report, which excludes
Executive Director compensation, divided by average year headcount reported in the Annual Report, less the CEO who
is included in the total average year headcount. Over the five-year period, the average employee compensation has
been impacted, due to changing business conditions, by shifts in the labor market in the different geographies.
Board Report  Remuneration Report  127
The five-year trend of CEO pay versus average employee compensation is shown in the following table:
2021(1)
2020(2)
2019(3)
2018(4)
2017(5)
5-year
trend
CEO compensation ($000s)
21,805
5,702
6,632
8,738
7,066
209%
Average Employee compensation(6) ($000s)
69.7
60.2
60.5
64.3
62.1
12.0%
CEO Pay Ratio
313
95
110
136
114
174%
Notes:
(1) The compensation is as reported in the Summary Remuneration table. The CEO, hired effective January 4, 2021, received a signing incentive to
leave his prior employer before his 2020 bonus payout.  The ratio excluding that one-off payment is 290. The equity expense included in the total CEO
compensation is assuming target payout for the company performance share units. The actual payout is at the end of the performance period and will
be determined in February 2024. The ratio assuming maximum payout for the company performance share units is 434.
(2)For 2020, data incorporates the compensation of the former CEO and the Acting CEO, as was reported in the Summary Remuneration table.
(3) For 2019, CEO compensation is consistent with the Summary Remuneration table include in the 2019 report, excluding the 2019 accounting value of
the CEO’s one-time “Make Whole” award, which vested in September 2019. Including the 2019 Make Whole accounting value of $2.8 million, the CEO
pay ratio would be 156. The 2019 CEO Pay Ratio calculation includes $2.9 million in accounting value related to the 2017-2019 PSUs that did not meet
the threshold achievement for any payout and have been forfeited. The CEO Pay Ratio excluding the forfeited PSU award would be 62.
(4) For 2018, a targeted full year compensation is shown for year-over-year comparison.
(5) For 2017, CEO compensation included the accounting value of equity awards, $2.9 million, as reported in the Summary Remuneration table in the
2017 Remuneration Report. The amount represented the net impact of the cancellation of the prior Company performance share awards covering the
2014-2018 performance period and the granting of a new award for the 2017-2019 performance period.
(6) Average Employee compensation is derived from personnel costs reported under IFRS, which does not include personnel costs for the Executive
Directors, divided by the average headcount. The disclosure of the personnel costs and headcount can be referenced in Note 10 to the Consolidated
Financial Statements of the Annual Report, found on page 181.
For perspective, the Company`s key performance metrics for the same past five years are shown below:
Selected Performance Data (1)
2021
2020
2019
2018)
2017(2)
5-year
trend
Adjusted Net Income ($ million)
1,880
437
1,178
1,117
651
189.0%
Adjusted Diluted Earnings/(Loss) per share ($)
1.35
0.28
0.84
0.80
0.46
193%
Absolute Total Shareholder Return - Indexed
from 2015(3)
206
152
143
125
153
106%
Notes:
(1) Includes non-GAAP metrics derived from financial information prepared in accordance with U.S. GAAP.
(2) 2017 figures have been recast following the retrospective adoption, on January 1, 2018, of the new standard for revenue recognition (ASC 606).
(3) Using 21-day average at the beginning and ending of each year and indexing from a 2016 baseline (i.e., index at 100).
In conclusion, the 2021 results show a strong recovery performance, even exceeding pre-pandemic levels. The CEO
trend reflects the highly competitive compensation offer needed to attract an experienced and proven candidate into the
permanent CEO role.
2021 Remuneration of the Executive Directors
The following is intended to expand on the general implementation of the Remuneration Policy in 2021 and provide
additional context for understanding the actual compensation paid in 2021.
Base Salary
The base salary for the Executive Directors takes into consideration the executive’s skills, scope of job responsibilities,
experience, and competitive market, and compensation peer group pay comparisons.
For 2021, Mr. Wine’s base salary was $1,700,000. In determining Mr. Wine’s salary, the Committee considered factors
such as the importance of creating stability in the C-suite, leadership, development of people and new culture, prior
experience and potential at CNH Industrial. The base salary is positioned in the upper percentile of our compensation
peer group, as required to attract the high caliber candidate for the CEO role. The CEO’s employment agreement
stipulates that his compensation terms (including base salary, annual bonus and long-term incentive opportunities) are
not expected to be subject to change for the period from 2021 through 2025.
Board Report  Remuneration Report  128
For the Chair, based on compensation benchmarking which revealed a competitive gap, the Chair`s salary was
increased effective January 1, 2021, to $500,000 annually.
No increases in base salary are planned for either Executive Director in 2022.
Variable Pay
The variable components of our Executive Directors’ remuneration, both the short- and the long-term incentives, where
applicable, demonstrate our commitment to shareholders and long-term value creation by using metrics that align with
our business strategy of delivering exceptional operating performance and shareholder returns.
Eligible variable compensation of our Executive Directors is contingent on the achievement of pre-established,
challenging financial and other designated performance objectives.
Scenario analyses are carried out annually to examine the relationship between the performance criteria chosen and
the possible outcomes of variable remuneration of the Executive Directors. Such analyses were carried out for the 2021
financial year and the Company found a strong link between remuneration and performance and concluded that the
chosen performance criteria support the Company’s strategic objectives and are appropriate under both the short-term
and long-term incentive components, where applicable, of total remuneration.
Short-Term Incentives
The CEO participates in the annual Company Bonus Plan; whereas, the Chair does not.
2021 Company Bonus Plan and 2022 Company Bonus Plan Outlook
The Compensation Committee approved the 2021 Company Bonus Plan design which included financial measures of
consolidated revenues at constant currency, consolidated Adjusted EBIT margin %, cash conversion ratio %, and two
ESG measures: CO2 Emissions and Accident Frequency Rate, in line with market practices.
The table below shows the metrics and predetermined goals:
KPIs
Weighting
Threshold
Target
Max
Consolidated Revenues $M (@CC)
20%
$28,449
$29,946
$32,941
Consolidated Adjusted EBIT Margin %
40%
5.60%
6.20%
7.40%
Cash Conversion Ratio %
20%
55.60%
69.50%
90.40%
ESG KPIs
CO2 Emissions % reduction
(from 2014 levels)
10%
-47.00%
-49.50%
-56.90%
Accident Frequency Rate
(annual goal)
10%
0.18
0.17
0.15
▪The target incentive for the CEO’s annual bonus program is 200% of base salary, linked to approved targets
each year. From the initial assumptions set in February 2021, the performance goals were increased in April
2021 for consolidated revenues and consolidated Adjusted EBIT margin %, given a stronger outlook in the first
forecast update and providing stretch objectives consistent with the updated outlook.
▪To earn any incentive by metric, results must be above the threshold performance goal established, with an
additional hurdle of achieving at least 70% of the Consolidated Adjusted EBIT Margin % for any payout.
Achieving threshold performance earns 30% of target incentive or 60% of base salary.
▪Maximum payout is 200% of target incentive or 400% of base salary.
▪No individual performance adjustment factor applies to the CEO’s annual bonus.
Definitions of Metrics
▪Consolidated Revenues $M (@CC): is Consolidated Revenues at constant currency.
▪Consolidated Adjusted EBIT Margin: is computed by dividing consolidated Adjusted EBIT by Consolidated
Revenues.
▪Cash Conversion Ratio: is the Free Cash Flow of Industrial Activities divided by Adjusted Net Income.
▪CO2 Emissions % reduction (from 2014 levels): CO2 emissions reduction vs. 2014 is measured as percentage
change in tons of CO2 emissions per hours of production in the manufacturing processes
▪Accident Frequency Rate (annual goal): is the number of injuries (work-related and non-work related, resulting
in more than 3 days of absence) divided by the number of hours worked multiplied by 100,000.
Board Report  Remuneration Report  129
CEO’s 2021 Company Bonus Plan Performance Factor Calculations:
Corporate
Measures
Weight
Threshold
Target
Maximum
Results
Results
vs.
Targets
Overall
Consolidated
Revenues
$M (@CC)(1)
a)
20%
$28,449
$29,946
$32,941
$32,825
110%
40%
b)
$204,000
$680,000
$1,360,000
$1,333,480
Consolidated
Adjusted
EBIT Margin
% (1)
a)
40%
5.60%
6.20%
7.40%
7.96%
128%
80%
b)
$408,000
$1,360,000
$2,720,000
$2,720,000
Cash
Conversion
Ratio %
a)
20%
55.60%
69.50%
90.40%
93.14%
134%
40%
b)
$204,000
$680,000
$1,360,000
$1,360,000
ESG
CO2
Emissions
%
a)
10%
(47.00)%
(49.50)%
(56.90)%
(54.90)%
111%
17%
b)
$102,000
$340,000
$680,000
$588,200
KPI'S
Accident
Frequency
Rate
a)
10%
0.18
0.17
0.15
0.17
100%
10%
b)
$102,000
$340,000
$680,000
$340,000
Total
a)
100%
187%
b)
$1,020,000
$3,400,000
$6,800,000
$6,341,680
Final Bonus Determination
$5,100,000
150%
1.Threshold, Target, and Maximum goals were all increased from the 2021 budget goals disclosed in the 2020 report to reflect the earlier and
fuller COVID-19 recovery being evidenced in the first forecast. The original budget target for consolidated adjusted EBIT Margin %, which is
weighted 40%, has become the threshold achievement, stretching the achievement goals throughout the entire payout range from threshold to
maximum.
Per the Company Bonus Plan (CBP) design and the predetermined goals, the overall company performance achieved
in 2021 was 187%. Considering the difficulty in forecasting the extent of the market demand recovery when the 2021
targets were set, the CEO proposed, and the Committee agreed to reduce the CEO’s bonus to 150% of target. The
2021 performance bonus to be paid in 2022 is $5.1 million.
Background on the 2021 Results
Between preparing for the Demerger, working toward closing and integrating our Raven Industries and Samperiana
Group acquisitions, and navigating an extremely challenging supply chain situation, our leaders and employees’
determination and ingenuity repeatedly overcame every hurdle to deliver for our customers and dealers. The results can
be summarized with one outstanding fact: our 2021 full year Adjusted Diluted EPS of $1.35 exceeds any full year
Adjusted Diluted EPS in the Company’s history.
The year had much more good news. Buoyed by healthy markets and positive pricing, we drove strong sales growth
across our operating regions and segments and made substantial gains in our sustainability commitments.
Board Report  Remuneration Report  130
•Consolidated Revenues came in at $33.4 billion ($32.8 billion at constant currency) versus $26.0 billion in
2020 and $28.1 billion in 2019, a historical level and overachievement (at constant currency) close to the
upper performance limit for maximum payout.
•Consolidated Adjusted EBIT Margin % of 8.0% compares to 3.4% in 2020 and 6.7% in 2019. The Adjusted
EBIT Margin % achievement was above the target which was increased in April due to more positive outlook
from original budget assumptions.
•The Cash Conversion Ratio %, which is the ratio of Free Cash Flow over Adjusted Net Income, for 2021 was
93.1%, which exceeded the 2021 target and actual 2020 and 2019.
•For our two ESG (Environmental, Social and Corporate Governance) goals that are linked to the annual
Company Bonus Plan, CO2 Emissions % and Accident Frequency Rate, the stretch targets for 2021 were
achieved. For the CO2 Emissions % reduction metric, the result was an overachievement close to the upper
performance limit for maximum payout. These ESG metrics results required a focused commitment and an
ingrained culture of care for our environment and our people.
These results faced supply chain disruptions all year and intensified in the fourth quarter, which dampened overall
shipments, especially in Europe. The industry-wide shortage in semiconductors and other core components is
unprecedented, but the company was able to minimize its impact on our business and our customers. Throughout the
challenges and successes, we prioritized our employees’ health and safety. Additionally, we strove to ensure a working
environment that fostered collaboration, innovation, and tremendous productivity to bring our customers the absolute
best. Our employees remained focused to deliver our commitments while meticulously preparing for the Demerger and
exciting future ahead.
Long-Term Incentives
2021-2023 Long-Term Incentive Plan
The new 2021-2023 Long-Term Incentive Plan (LTIP) is comprised of both a Company Performance component and an
Individual Performance component. The Executive Directors, Senior Leadership Team, and other key leaders
participate in the 2021-2023 LTIP, based on eligibility requirements.
Under this plan, the Executive Directors' awards consisted of the following:
CEO
Chair
2021-2023 LTIP
Grant Date
Number of Share
Units Granted
Grant Date
Number of Share
Units Granted
PSUs
01/04/2021
$2,269,000
12/14/2020
$309,000
RSUs
01/04/2021
$756,000
12/14/2020
$103,000
Total Share Units
$3,025,000
$412,000
Average Annual Target
% of Salary
706%
300%
Average Annual Target
$
$12,000,000
$1,500,000
Maximum % of Target
PSUs (weighted 75%)
200%
200%
RSUs (weighted 25%)
100%
100%
Average Annual
Maximum $
$21,000,000
$2,650,000
▪The awards reflect a one-time front-loaded grant for a 3-year performance cycle which is 3-times the targeted
annual long-term incentive to provide an average annual targeted value over the 3 years, split 75% in PSUs
and 25% in RSUs. This helped fill the gap that the CEO had leaving his former employer and forfeiting his
outstanding equity awards and compete against the CEO package at this prior employer.
▪The front-loaded grant transitions to an annual rolling cycle beginning in 2022, providing a competitive award
on an average year basis.
Board Report  Remuneration Report  131
▪The Performance Share Units (PSUs) cliff vest in February 2024, subject to the achievement of two financial
metrics weighted equally and adjusted by a range of plus/minus 25% TSR multiplier based on ranking versus
a comparator group of industry peers.
▪The Restricted Share Units (RSUs) vest in three equal installments on April 30, 2022, April 30, 2023, and April
30, 2024 and are subject to acceptable individual performance and demonstration of Company values, as
determined by the Company’s Performance Management Process for employees and per the determination of
the Non-Executive Directors for the Executive Directors.
All shares received post-vesting must be held for a period of five years from the grant date.
The Committee and the Board of Directors believes that the equity awards are competitive in the market and consistent
with our compensation philosophy. Along with the share ownership and share retention requirements in place for the
Executive Directors, the plan design links the Executive Directors’ compensation opportunity to increasing shareholder
value, which is core to our “pay for performance” compensation philosophy.
Details on the 2021-2023 Long-Term Incentive Plan
Executive Directors, our Senior Leadership Team, and other key executives participate in the Company Long-Term
Incentive Plan. The plan design includes a change from a front-loaded end-to-end grant cycle to annual rolling grants (a
more prevalent market practice). To facilitate this change, the plan contains a one-time transition grant of PSUs and
RSUs valued at three (3) times the targeted annual LTIP. This transition grant allows a competitive LTIP offering on an
average annual basis over the three years. The subsequent annual grants will be valued as one (1) time targeted
annual LTIP value awards, allowing for annual grant and payout opportunity, and will continue to be subject to long-term
3-year performance periods.
The PSUs will be subject to the achievement of certain performance targets as further described below, while the RSUs
will be subject to acceptable individual performance and demonstration of Company values.
•The PSU awards are based on the achievement of defined key performance indicators relating to: (i) Average
of Industrial Return on Invested Capital (“RoIC”) over the plan period, weighted 50% and (ii) Cumulative
Adjusted Earnings Per Share (“EPS”) weighted 50%. The Company’s Total Shareholder Return (“TSR”)
ranking among a pre-selected comparator group at the end of the three-year performance period will act as
downward/upward multiplier that can adjust the award from 0.75 to 1.25.
The TSR comparator group consists of the following companies: AB Volvo, AGCO Corporation, Caterpillar Inc.,
Cummins Inc., Deere & Company, Komatsu Ltd., Kubota Corporation, PACCAR Inc., and Traton SE. The
Committee may adjust the TSR comparator group in the event of any merger, combination or other event
affecting the comparator companies.
The PSUs awarded under the 2021-2023 LTIP performance cycle will vest on February 28, 2024, based on the
achievement of each target of RoIC and EPS determined independently, and as adjusted according to the TSR
multiplier. Hence, the total number of common shares that will be issued upon vesting of the PSUs will depend
on the level of achievement of RoIC and EPS and the downward/upward effect of TSR, but subject to an
overall maximum of 200% of the target award.
The following table shows the goals for threshold, target, and outstanding achievement of the two financial
metrics, and possible payout combinations. With the Demerger, these three-year goals span pre- and post-
Demerger periods, i.e., Year 1 pre-Demerger and Years 2 & 3 post-Demerger. As such, the 3-year goals will
need to be adjusted to reflect CNH Industrial’s relative contribution to the goals, excluding the relative
contribution of the Iveco Group.
Board Report  Remuneration Report  132
The earned payout achieved under the two weighted financial metrics, RoIC and Adjusted EPS, will be adjusted for the
TSR percentile ranking according to the following chart:
Percentile Ranking
Relative TSR Multiplier(1)
Outstanding: 75th
1.25(2)
Target: 50th
1.00
(1) Multiplier prorated between threshold,
target, and outstanding percentile ranking.
Threshold: 25th
0.75
(2) Maximum overall payout capped at 2
times target
With this TSR Multiplier scale, there is no additional reward for a relative TSR at median and the design reduces the
LTIP payout if relative TSR is below median, setting a high-performance bar for maximum payout.
•For the Executive Directors, the RSUs under the 2021-2023 LTIP award will vest in three annual installments
on April 30, 2022, April 30, 2023, and April 30, 2024, allowing an interim vesting opportunity over the 3-year
cycle. There are no other awards vesting in the interim. The RSUs require acceptable individual performance
and demonstration of Company values which the Compensation Committee will assess prior to each
respective vesting date and before approving any payout/vesting.
Impact of the Demerger on Equity Awards
The Demerger did not trigger change of control provision which would accelerate the vesting of unvested awards.
However, the CNH Industrial Equity Incentive Plan (EIP) allows the Committee to adjust outstanding equity awards on
an equitable basis in the event of a change in the capital structure of the Company, such as the Demerger.
The equitable adjustment, which was done in early 2022, considered post-Demerger share prices of both CNH
Industrial and the Iveco Group, using a 10-day volume weighted average price. The conversion ratio for CNH Industrial
compared the combined CNH Industrial and Iveco Group share prices (before the 5:1 Demerger Allotment Ratio) to
CNH Industrial’s share price.  
The adjustment factor for CNH Industrial participants was 1.1473, which applies to the Executive Directors. The
determination of the conversion ratio is shown in the table below:
Board Report  Remuneration Report  133
Post-Demerger Entity
Post-Demerger Share Prices(1)
CNH Industrial Conversion Ratio
CNH Industrial
€14.43
€16.56/€14.43 = 1.1473
Iveco Group
€2.13(2)
Combined
€16.56(2)
Notes:
(1) 10-day average Volume Weighted Average Price (VWAP) post-Demerger share price
(2) before 5:1 Allotment Ratio: €10.63 divided by 5=€2.13 per Iveco Group share
Prices per Bloomberg Euro VWAP for the period January 3 – January 14, 2022, to the 5th decimal place for the conversion factor calculation. Rounded
prices are shown in the table.
The Executive Directors’ equity awards before and after the adjustment:
CEO
Chair
2021-2023 LTIP
Before the Demerger
Adjustment
After the Demerger
Adjustment
Before the Demerger
Adjustment
After the Demerger
Adjustment
Share units
PSUs
2,269,000
2,603,224
309,000
354,516
RSUs
756,000
867,359
103,000
118,172
Total Share Units
3,025,000
3,470,583
412,000
472,688
Share Price *
€16.56
€14.43
€16.56
€14.43
-Intrinsic Value
€000s* (3-years
value)
€50,091
€50,091
€6,822
€6,822
* Per the 10-day average VWAP price used for the conversion factor. Actual valuation fluctuates per the market price since the Demerger.
Post-Employment and Other Benefits
The Executive Directors receive customary pension and other benefits in-line with the Remuneration Policy, which
provide basic assurances of loss income protection and retirement income.
Pension and Retirement Savings
The CEO participates in the same Company sponsored retirement savings programs available to all U.S. salaried
employees. The Chair similarly receives retirement savings benefits comparable to UK-based salaried employees,
based on the same nationally determined annual UK pensionable earnings cap for all UK employees.
Other Benefits
For our CEO, we offer customary perquisites and fringe benefits, such as a Company car, medical insurance, accident
insurance, tax preparation assistance, relocation, limited personal usage of aircraft, and retiree healthcare benefits.
Furthermore, in the event of an involuntary termination of employment other than for cause, the CEO is entitled to
twelve months’ base salary, while remaining subject to restrictive covenants, such as non-competition and non-
solicitation for a period of one year.
A provision that outstanding equity awards are subject to prorated vesting in the event of death, disability, or involuntary
termination by the Company (other than for cause) is applicable for both the CEO and the Chair, a customary practice
among our compensation peer group.
The Chair also receives select UK executive benefits including life, accident, and disability insurance and limited
personal usage of car service for security.
Tax Equalization
The CEO, as a function of the global nature of the role in the Company, may be subject to tax on employment income in
multiple countries and will be subject to the Company’s tax equalization policy on all employment earnings. For the
Chair, no tax equalization has been applicable. This represents no change from prior years.
Board Report  Remuneration Report  134
Stock Ownership 
Our Board recognizes the critical role that Executive Director stock ownership has in aligning the interests of
management with those of shareholders. Accordingly, the Executive Directors are subject to share ownership guidelines
which require each Executive Director own shares with an aggregate value of at least 5x base salary within five (5)
years from the start of their respective assignments. The Committee assesses on an annual basis the Executive
Directors’ progress toward meeting this objective. As of December 31, 2021, the CEO owned 200,000 shares, and the
Chair owned 129,389 shares. With a share price of $19.43 on December 31, 2021, the fair market value of the at year-
end 2021 was $3,886,000 and $2,514,028, respectively. The CEO’s shareholdings represent 2.29 times his annual
base salary, and the Chair’s represents 5.03 times her annual base salary.
In addition, the Executive Directors are subject to a holding period of five years from grant date for all awards granted to
them which aligns with Dutch Corporate Governance Code ("DCGC").
Recoupment of Incentive Compensation (Claw back Policy)
The Board is dedicated to maintaining and enhancing a culture focused on integrity and accountability. The
Recoupment Policy in the Company’s Equity Incentive Plan, which defines the terms and conditions for any subsequent
long-term incentive program, and the Company Bonus Plan, which defines the short-term incentive program, as well as
in any executive employment agreements, authorizes the Company to recover, or “claw back,” incentive compensation
with the ability to retroactively make adjustments if any cash or equity incentive award is predicated upon achieving
financial results and the financial results are subject to an accounting restatement.
No recoupment of incentive compensation was warranted under any incentive plan during 2021.
Terms of engagement
Each of the Executive Directors is engaged by the Company pursuant to a written agreement for an indefinite period of
time and are employed at will, meaning either party can terminate the engagement at any time. The Executive Directors
are also appointed by shareholders annually.
Remuneration for Non-Executive Directors
The remuneration of Non-Executive Directors is governed by the CNH Industrial N.V. Directors’ Compensation Plan
within the scope of the CNH Industrial N.V. Remuneration Policy. The current remuneration structure for the Non-
Executive Directors is consistent with the Remuneration Policy, as shown in the table below.
Non-Executive Director Compensation
Total
Annual Cash Retainer
$125,000
Additional retainer for Audit Committee member
$25,000
Additional retainer for Audit Committee Chair
$35,000
Additional retainer for member of other Board committees
$20,000
Additional retainer for Chair of other Board committees
$25,000
The Non-Executive Directors receive their annual retainer fee, committee membership, and committee chair fee
payments (collectively, “Fees”) only in cash Remuneration of Non-Executive Directors is fixed and not dependent on the
Company’s financial results. Non-Executive Directors are not eligible for variable compensation and do not participate in
any Company incentive plans. Consistent with the Remuneration Policy, Non-Executive Directors do not receive
benefits upon termination of their service as directors.
In 2019, upon the recommendation of the Compensation Committee, the Board resolved to implement share ownership
guidelines for the Non-Executive Directors. Applicable to Non-Executive Directors appointed in April 2019 or thereafter,
Non-Executive Directors are required to own Company shares in an aggregate amount of not less than 1x their annual
retainer fee, which is $125,000, within 24 months of appointment to the Board. The Non-Executive Directors are
expected to hold Company shares as a long-term investment and, as such, are expected to hold their Company shares
while on the Board and for an additional three months after their Board service terminates.
All the current Non-Executive Directors have met the share ownership requirement except for the newly appointed
members, Ms. Catia Bastioli and Ms. Åsa Tamsons.
IMPLEMENTATION OF REMUNERATION POLICY IN 2021
The following table summarizes remuneration paid or awarded (in USD) to CNH Industrial N.V. Directors for the years
ended December 31, 2021 and 2020 (the “Summary Remuneration table”):
Board Report  Remuneration Report  135
Fixed Remuneration
Variable Remuneration
Extra-ordinary
Items(5)
Pension &
Similar
Benefits(6)
Proportion of
fixed to variable
remuneration(7)
Board of
Directors
Position
Year
(1)
Base Salary
or Fees
Fringe
Benefits(2)
One-year
Variable(3)
Multi-year
Variable(4)
Total
Remuneration
WINE Scott
CEO
2021
(8)
1,702,588
167,675
5,100,000
12,998,327
1,573,133
263,155
21,804,878
10%
MÜHLHÄUSER
Hubertus
CEO
2020
(9)
254,980
225,076
—
30,934
1,551,076
45,366
2,107,432
31%
HEYWOOD
Suzanne
Chair
2021
(10)
500,000
(7)
—
—
1,521,504
—
120,281
2,141,785
26%
2020
(11)
72,917
(8)
—
—
336,236
—
8,625
417,778
24%
Acting
CEO
2020
(12)
649,194
(9)
—
—
—
2,500,000
445,861
3,595,055
26%
BUFFETT
Howard W.
Director
2021
128,792
—
—
—
—
—
128,792
N/A
2020
—
—
—
—
—
—
—
N/A
CONNORS
Nelda
Director
2020
—
—
—
—
—
—
—
N/A
ERGINBILGIC
Tufan
Director
2021
128,792
—
—
—
—
15,388
144,180
N/A
2020
—
—
—
—
—
—
—
N/A
HOULE Léo W.
Senior
Non-
Executive
Director
2021
132,694
—
—
—
—
—
132,694
N/A
2020
85,000
—
—
—
—
—
85,000
N/A
LANAWAY John
Director
2021
122,083
—
—
—
—
—
122,083
N/A
2020
75,000
—
—
—
—
—
75,000
N/A
NASI Alessandro
Director
2021
132,694
—
—
—
—
—
132,694
N/A
2020
85,000
—
—
—
—
—
85,000
N/A
SCHEIBER Silke
Director
2020
75,000
—
—
—
—
8,846
83,846
N/A
SIMONELLI
Lorenzo
Director
2021
117,083
—
—
—
—
—
117,083
N/A
2020
75,000
—
—
—
—
—
75,000
N/A
SØRENSEN
Vagn
Director
2021
117,083
—
—
—
—
13,835
130,918
N/A
2020
—
—
—
—
—
—
—
N/A
TAMMENOMS
BAKKER
Jacqueline
Director
2021
46,292
—
—
—
—
4,003
50,295
N/A
2020
82,500
—
—
—
—
9,881
92,381
N/A
THEURILLAT
Jacques
Director
2021
44,889
—
—
—
—
—
44,889
N/A
2020
80,000
—
—
—
—
1,706
81,706
N/A
Notes
(1) In 2020, in support of the Company’s COVID-19 response, all of the Directors, including the Chair, voluntarily waived their entire fees from the start of the new Board year,
April 16, 2020 through the end of December 2020. For the Non-Executive Directors’ quarterly fees for the period October 13, 2020 through January 11, 2021, the prorated
amount from October through December was waived and the January portion is included in the 2021 fees reported in the table.
(2) The amount includes the use of transportation (Company car and personal usage of aircraft) and company cost of life and health insurance benefits.
(3) The 2021 amount represents the bonus approved for the performance year and paid in 2022. The Committee capped the bonus at 150% of target payout, or $5.1 million. No
bonus was earned for the former CEO for the 2020 performance year.
(4) The amounts represent the Company's share-based compensation (SBC) expense under applicable accounting standards relating to grants issued to the Executive
Directors under 2021-2023 LTI plan, assuming payout at target. The company performance awards vest at the end of the 2021-2023 performance period and have a 200% cap.
The SBC expense assuming maximum payout for the performance share units would be $21.5 million for the CEO and $2.5 million for the Chair, a difference from target payout
of $8.5 million and $1.0 million respectively for the CEO and the Chair.
(5) For the current CEO, a cash sign-on of $1,573,133 was paid upon hiring to compensate for the forfeited 2020 bonus from the prior employer. For the former CEO, Hubertus
Mühlhäuser, the 2020 amount includes a payment of 12 months base salary ($1.1 million), a provision for 2020 tax services ($0.3 million) as part of separation terms and
conditions, and unused paid vacation ($0.1 million), during the former CEO’s active service. For the Acting CEO role, Suzanne Heywood received a one-time lump sum payment
of $2.5 million for the variable compensation elements of her supplemental remuneration for the additional Acting CEO duties during 2020.
(6) For the CEO, the 2021 amount includes Company contributions to U.S. Social Security and Medicare, expense recorded for accruing retiree healthcare benefits, and
contributions for retirement savings to the deferred compensation plan. For the Chair, the amount includes Company contributions into the UK National Insurance for 2020 and
2021 and in 2021 a contribution for retirement savings. For the former CEO, the 2020 amount includes Company contributions to U.S. Social Security and Medicare. All
provisions for Company match of retirement savings and deferred compensation, and retiree healthcare benefits reported in prior years have been reversed as the vesting
period was not met at time of separation of employment. For the other Directors, the amount includes Company contributions into the UK National Insurance.
(7) Ratio of the percentage of fixed pay elements over the percentage of variable pay elements. Variable elements include variable incentives, extraordinary items, and the
pension benefits derived from variable remuneration and extraordinary items. The Non-Executive Directors have no variable compensation elements, so this ratio is not
applicable.
(8) The new CEO was hired on January 4, 2021 and appointed by shareholders as an Executive Director of the Board at the April 15, 2021 AGM. The remuneration shown in the
above Summary Remuneration table reflects his full year compensation including the period prior to the shareholders’ approval. 
(9) The 2020 remuneration elements of the former CEO, Hubertus Mühlhäuser, reflect pay and benefits through his date of resignation, March 22, 2020. The resignation benefits
are included in extraordinary Items as disclosed in footnote # 4 above.
(10) Effective January 1, 2021, the new annual base salary of $500,000 would be paid in £ using the prior year average exchange rate, which for 2020 was US$ 1.2837/1 £.
(11) In 2020, Suzanne Heywood voluntarily waived all her Chair fees from April 16, 2020 through December 31, 2020.
(12) For the additional Acting CEO duties in 2020, an annual supplement of $1.0 million was paid in monthly installments from the effective date of the Acting CEO role, March
23, 2020 through the end of the December 31, 2020. For three full monthly supplements, 50% was waived by Suzanne Heywood in solidarity of the Company’s COVID-19
response.
Board Report  Remuneration Report  136
The following table summarizes remuneration paid or awarded (in USD) to Directors of CNH Industrial N.V. for roles
held in subsidiaries of CNH Industrial N.V. for the year ended December 31, 2021:
Fixed Remuneration
Variable
Remuneration
Board of
Directors
Position
Year
Fees
(1)
Fringe
Benefits
One-year
Variable(2)
Multi-year
Variable(3)
Extra-
ordinary
Items
Pension &
Similar
Benefits(4)
Total
Remuneration
Proportion of
fixed to
variable
remuneration
NASI
Alessandro
Chairman Iveco
Defence S.p.A
2021
174,427
785
—
—
—
—
175,212
N/A
2020
172,999
4,659
317,724
202,024
—
110,497
807,903
33%
Notes:
(1) The amount is the fees for the Chairman of Iveco Defence S.p.A role; in 2021 and 2020, full year Euro 150,000.
(2) In 2020, a special recognition lump sum payment was made in recognition of the contributions over the CNH Industrial 2017-2019 performance
period.
(3) The 2020 amount is the remaining share-based compensation from his CNH Industrial 2017-2019 RSU award which had the last one-third
installment vest on June 30, 2020.
(4) The amount in 2020 includes the Company social contributions in Italy on employment income. In 2021, Mr. Nasi met the limit with another company.
Year-Over-Year Remuneration
For year-over-year reference, as required by the Dutch Civil Code requirements, the following table shows the
compensation change over each of the past five years (in US$ 000s):
Board Report  Remuneration Report  137
Table - Remuneration over the last five reported financial years (RFY)
Board of Directors
Position
2021 vs
2020(1)
2020(1) vs
2019
2019 vs
2018
2018 vs
2017
WINE Scott(2)
CEO
21,805
—
—
—
HEYWOOD Suzanne(3)
Acting CEO
(3,595)
3,595
—
—
MÜHLHÄUSER Hubertus(3)
CEO
(2,107)
(7,333)
5,911
3,532
TOBIN Richard(4)
CEO
—
—
(508)
(6,558)
HEYWOOD Suzanne(4)
Chair
1,724
(339)
757
—
MARCHIONNE Sergio(4)
Chairman
—
—
(2,840)
(2,311)
BUFFETT Howard W.(5)
Director
129
—
—
—
CONNORS Nelda (5)
Director
—
—
—
—
ERGINBILGIC Tufan(5)
Director
144
—
—
—
GEROWIN Mina(6)
Director
—
(81)
(81)
(1)
HEYWOOD Suzanne(4)
Director
—
—
(170)
—
HOULE Léo W.(7)
Senior Non-
Executive Director
48
(87)
2
(2)
KALANTZIS Peter(6)
Director
—
(85)
(85)
—
LANAWAY John
Director
47
(75)
—
—
NASI Alessandro(8)
Director
48
—
85
—
SCHEIBER Silke(9)
Director
(84)
(98)
14
(1)
SIMONELLI Lorenzo(8)
Director
42
—
75
—
SØRENSEN Vagn(5)
Director
131
—
—
—
TABELLINI Guido(6)
Director
—
(73)
73
—
TAMMENOMS BAKKER
Jacqueline(10)
Director
(42)
95
25
(1)
THEURILLAT Jacques(10)
Director
(37)
(97)
—
(1)
Notes:
(1) In 2020, in support of the Company’s COVID-19 response, all of the Directors, including the Chair, voluntarily waived their entire fees from the start
of the new Board year, April 16, 2020 through the end of December 2020.
(2)  In 2021, Scott Wine joined the Company as CEO, effective January 4, 2021 and was appointed Executive Director of the Board at the April 15,
2021 AGM.
(3) Effective March 22, 2020, Hubertus Mühlhäuser stepped down from the CEO role and Suzanne Heywood assumed the Acting CEO duties in
addition to her Chair duties for the remainder of 2020.
(4) During 2018, the Company’s Executive Directors changed. At the end of April, the former CEO, Richard Tobin, left the Company voluntarily. On
September 17, 2018, Hubertus Mühlhäuser, assumed the position of CEO. On July 21, 2018, the Board of Directors, having been apprised of the
deteriorating health situation of its Chairman Sergio Marchionne, appointed Suzanne Heywood as Chair with immediate effect. Shareholders appointed
Ms. Heywood and Mr. Mühlhäuser as Executive Directors at the November 29, 2018 Extraordinary General Meeting. The Chair’s fees were prorated
from November 29, 2018 through December 31, 2018 and paid in January 2019.
(5)  The following Directors were appointed their Board of Directors roles in 2020: Mr. Sørensen, Mr. Buffett, and Mr. Erginbilgic. Ms. Connors stepped
down from her Board of Directors roles in 2020.
(6) The following Directors stepped down from their Board of Directors’ roles in 2019: Ms.Gerowin, Mr. Kalantzis, and Mr. Tabellini.
(7)  Mr. Houle was appointed Senior Non-Executive Director in 2017.
(8)  The following Directors were appointed their Board of Directors’ roles in 2019: Mr. Nasi and Mr. Simonelli.
(9)  Ms. Scheiber was appointed to the Board of Directors in 2016 and stepped down in 2020.
(10)  Ms. Tammenoms Bakker and Mr. Jacques Theurillat stepped down from their Board of Directors’ roles in 2021.
Board Report  Remuneration Report  138
SHARE OWNERSHIP
Collectively, our Executive Directors and Non-Executive Directors own less than one percent of our outstanding
common shares. Since 2019, the Company has established share ownership guidelines for both the Executive
Directors and Non-Executive Directors. The following table summarizes the number of CNH Industrial common shares
owned by our directors as of December 31, 2021.
Directors(1)
Common Shares
Special Voting Shares
Alessandro Nasi
348,994
—
Scott Wine
200,000
—
Suzanne Heywood
129,389
—
Léo Houle
57,259
57,259
Vagn Sørensen
27,000
—
Howard W. Buffett
17,866
—
John Lanaway
17,286
—
(1) Ms. Bastioli and Ms. Tamsons were appointed on December 23, 2021 and did not own any CNHI shares as of December 31, 2021.
SHARE AWARDS
The following table summarizes unvested performance share units and restricted share units held by Executive
Directors and Non-Executive Directors as of December 31, 2021:
Table - Shares awarded or due to the Directors for the reported financial year
Information regarding the reported financial year
The main conditions of share unit plans
Opening
Balance
During the Year
Closing Balance
Accounting
Expense(1)
Name of
Director,
Position
Award
Name
Performance
Period
Award
Date
Vesting
Date
End of
Holding
Period
Shares
Awarded at
the Beginning
of the Period
Shares
Awarded
Shares
Forfeited
Shares
Vested
Share
Subject to a
Performance
Condition
Shares
Unvested
Shares
Subject to a
Holding
Period(1)
FMV at Grant
(US$000s)
FMV at Vest
(US$000s)
US$000s
WINE, Scott
CEO
2021-2023
PSU(2)
01/01/21 -
12/31/23
01/04/21
02/28/24
01/04/26
—
2,269,000
—
—
2,269,000
2,269,000
2,269,000
—
—
26,997
—
—
—
—
—
8,478
04/30/22
—
756,000
—
—
756,000
756,000
756,000
—
2021-2023
RSU(2)
01/04/21 -
04/30/24
01/04/21
04/30/23
01/04/26
—
—
—
—
—
—
—
—
04/30/24
—
8,995
—
—
—
—
—
4,520
HEYWOOD,
Suzanne
Chairperson
2021-2023
PSU(2)
01/01/21 -
12/31/23
12/14/20
02/28/24
12/14/25
309,000
—
—
—
309,000
309,000
309,000
—
—
—
—
—
—
—
—
996
04/30/22
103,000
—
—
—
103,000
103,000
103,000
—
2021-2023
RSU(2)
12/14/20 -
04/30/24
12/14/20
04/30/23
12/14/25
—
—
—
—
—
—
—
—
04/30/24
—
—
—
—
—
—
—
526
Total
Shares:
412,000
3,025,000
—
—
3,437,000
3,437,000
3,437,000
—
Total
FMV
($000s)
35,992
—
14,520
Notes:
(1) The accounting valuation of share-based compensation expense is the value reported for equity awards in the Summary Remuneration table.
(2)  The LTI plan begins with the 2021-2023 performance cycle and consists of a Company performance component, with potential vesting of PSUs,
and an individual performance component, with potential vesting of RSUs. The PSUs vest at the end of the performance cycle and the RSUs vest in
three equal annual installments over the performance cycle.
Board Report  Remuneration Report  139
Executive Officers’ Compensation
The aggregate amount of compensation paid to or accrued for executive officers that held office during 2021 was
approximately $56.0 million, including $3.3 million in pension and similar benefits paid or set aside by us. The
aggregate amounts included those paid to or accrued for 17 executives as of December 31, 2021.
Independence of Compensation Consultant
The Committee’s charter provides that the Committee has sole authority to engage the services of independent
compensation external advisors. While the Committee did not engage independent compensation external advisors in
2021, the Committee was occasionally advised by representatives of Willis Towers Watson PLC, Freshfields Bruckhaus
Deringer LLP, and Georgeson on executive compensation matters. The Committee found that the information provided
by such advisors provided important perspectives about market practices for executive compensation, the levels and
structure of the compensation program, and compensation governance. During 2021, the foregoing advisors performed
services such as:
▪Provided regulatory education to the Committee
▪Provided benchmark on peer Company analysis and selection
▪Provided information and advice relating to executive compensation matters
During 2021 the Committee reviewed the factors influencing independence and determined that no conflict of interest
exists with respect to Willis Towers Watson, Freshfields Bruckhaus Deringer and Georgeson.
Board Report  Remuneration Report  140
Changes to 2022 Remuneration
The following table summarizes the Executive Directors’ current remuneration effective since January 2021. No
changes are expected for 2022. 
Remuneration Element
CEO
Chairperson
Annual Base Salary
$1,700,000
$500,000
Positioned in the upper percentile of peer group,
required to attract a high caliber CEO to lead the
Company, effective upon hire date, January 4,
2021.
To align salary to a competitive level for
comparable Executive Chair role in the market,
effective January 1, 2021
Short-Term Variable
200% of base salary at target
No participation in annual bonus plan; no change
Long-Term Variable
$12,000,000 annual target (706% of base salary)
$1,500,000 annual target (300% of base salary)
Will participate in the front-loaded 2021-2023 LTI
plan, with 3x annual target award, split 75/25
PSUs/RSUs.
Target % of base salary did not change; target LTI
value increases due to increase in base salary.
Post-Employment
Benefits
▪Retirement savings benefits available to U.S.-
based salaried employees
▪Added retirement savings benefits
comparable to U.K. Salaried employees
▪Prorated equity award vesting in the event of
death, disability or involuntary termination by
the Company (other than for cause)
▪Prorated equity award vesting in the event of
death, disability or involuntary termination by
the Company (other than for cause)
▪Severance in an amount equal to 12
months’ base salary, consistent with Dutch
Corporate Governance Code best practice
▪Company provided retiree healthcare
benefits
Other Benefits
▪U.S. benefits including company car,
health, life, accident, and disability
insurance, and tax assistance
▪Select U.K. executive benefits including life,
accident and disability insurance
▪Tax equalization for any non-U.S. sourced
employment income
▪Limited personal usage of car service for
security.
▪Limited personal usage of private aircraft
service; taxable benefit will be the CEO’s
tax responsibility
Sign-On Incentives
▪Cash sign-on for forfeited outstanding
equity not covered in front-loaded LTI
award, $7.578 million, vesting on first three
anniversaries of hire date
▪No risk of forfeiture except for voluntary
termination or termination by the Company
for cause
CEO
Chair
2022 Pay Element USD
Annualized at
Target
Annualized at
Maximum
Annualized at
Target
Annualized at
Maximum
Base Salary
$1,700,000
$1,700,000
$500,000
$500,000
2021 STI
$3,400,000
$6,800,000
N/A
N/A
2021 LTI
$12,000,000
$21,000,000
$1,500,000
$2,625,000
Total Direct:
$17,100,000
$29,500,000
$2,000,000
$3,125,000
Board Report  Remuneration Report  141
Reconciliation of certain non-GAAP financial measures to the most comparable GAAP financial measure 
prepared in accordance with EU-IFRS
Reconciliation of Adjusted net income/(loss) in accordance with U.S. GAAP to Profit/(loss) in accordance with EU-IFRS
($ million)
2021
2020
Profit/(loss) in accordance with EU-IFRS
1,777
(695)
Adjustments to conform with U.S. GAAP(1):
Development costs
(3)
192
Nikola investment fair value adjustment
(138)
134
Other adjustments(2)
108
(64)
Tax impact on adjustments and other income tax differences
16
(5)
Total adjustments
(17)
257
Net income (loss) in accordance with U.S. GAAP
1,760
(438)
Adjustments impacting Income (loss) before income tax benefit (expense) and equity in income of
unconsolidated subsidiaries and affiliates:
Nikola investment fair value adjustment
138
(134)
Restructuring expenses
74
49
Pre-tax gain related to the 2018  modification of a healthcare plan in the U.S.
(119)
(119)
Pre-tax gain related to the 2021  modification of a healthcare plan in the U.S.
(5)
—
Pre-tax settlement charge related to the purchase of annuity contracts to settle a portion of U.S. pension
obligations
—
125
Goodwill impairment charge
—
585
Other assets impairment charges
—
255
Loss on repurchase of notes
8
—
Optimization charges on asset portfolio relating to vehicles sold under buy-back commitments
—
282
Spin-off costs
187
8
Gain from the sale of 30.1% interest in Naveco
(42)
—
Transaction costs for Raven Industries, Inc. acquisition
57
—
Monarch Tractor investment fair value adjustment
(12)
—
Impairment of certain assets held for sale
25
—
Total Adjustments impacting Income (loss) before income tax benefit (expense) and equity in income of
unconsolidated subsidiaries and affiliates
311
1,051
Adjustments impacting Equity in income of unconsolidated subsidiaries and affiliates
(13)
24
Adjustments impacting Income tax benefit (expense):
Tax effect of adjustments impacting Income (loss) before income tax benefit (expense) and equity in
income of unconsolidated subsidiaries and affiliates
(7)
(106)
Adjustment to valuation allowances against deferred tax assets
(161)
(82)
Other
(10)
(12)
Total  Adjustments impacting Income tax benefit (expense)
(178)
(200)
Total Adjustments
120
875
Adjusted net income (loss) in accordance with U.S. GAAP
1,880
437
(1) Details about this item are provided in Note 34 “EU-IFRS to U.S. GAAP reconciliation” to the Consolidated financial statements.
(2) This item also includes the different accounting impact from the modification of a healthcare plan in the U.S.
Calculation of Adjusted diluted earnings (loss) per share in accordance with U.S. GAAP
2021
2020
Adjusted Net income (loss) in accordance with U.S. GAAP
attributable to the owners of the parent
$ million
1,843
379
Weighted average common shares outstanding in
accordance with U.S. GAAP – diluted
million
1,361
1,352
Adjusted diluted earnings (loss) per common share in
accordance with U.S. GAAP
$
1.35
0.28
Board Report  Remuneration Report  142
Reconciliation of Net Cash (Debt) of Industrial Activities in accordance with U.S. GAAP to Total (Debt) in accordance
with EU-IFRS
($ million)
At December 31, 2021
At December 31, 2020
Total (Debt) in accordance with EU-IFRS
(24,255)
(26,618)
Less:
Total (Debt) of Financial Services in accordance with EU-IFRS(1)
(19,509)
(19,722)
Intersegment notes payable(1)
1,882
1,902
Total (Debt) of Industrial Activities in accordance with EU-IFRS
(6,628)
(8,798)
Adjustments to reconcile Total (Debt) of Industrial Activities in accordance with
EU-IFRS to Net Cash (Debt) of Industrial Activities in accordance with EU-
IFRS(1)
6,458
9,095
Net Cash (Debt) of Industrial Activities in accordance with EU-IFRS
(170)
297
Adjustments to reconcile Net Cash (Debt) of Industrial Activities in accordance
with EU-IFRS to Net Cash (Debt) of Industrial Activities in accordance with
U.S. GAAP:
Operating Leases
414
450
Derivatives fair value
22
7
Reversal of financial interest accruals
22
32
Total Adjustments
458
489
Net Cash (Debt) of Industrial Activities in accordance with U.S. GAAP
288
786
(1) Details about these items and adjustments are provided in the paragraph "Consolidated Debt" of  section "Liquidity and capital resources" above.
Reconciliation of Free Cash Flow of Industrial Activities in accordance with U.S. GAAP to Net cash provided by (used
in) Operating Activities in accordance with EU-IFRS
($ million)
2021
2020
Net cash provided by (used in) Operating Activities in accordance with EU-IFRS
3,313
3,478
Adjustments to reconcile Net cash provided by (used in) Operating Activities in accordance with
EU-IFRS to Free Cash Flow of Industrial Activities in accordance with EU-IFRS(1)
(1,543)
(1,445)
Free Cash Flow of Industrial Activities in accordance with EU-IFRS
1,770
2,033
Adjustments to reconcile Free Cash Flow of Industrial Activities in accordance with EU-IFRS to
Free Cash Flow of Industrial Activities in accordance with U.S. GAAP:
Depreciation and amortization
(596)
(586)
Changes in provisions and similar
(208)
(190)
Changes in working capital
115
102
Investments in property, plant and equipment and intangible assets
474
364
Other changes
196
203
Total Adjustments
(19)
(107)
Free Cash Flow of Industrial Activities in accordance with U.S. GAAP
1,751
1,926
(1) Details about these adjustments  are provided in the paragraph "Consolidated Debt" of  section "Liquidity and capital resources" above.
Board Report  Remuneration Report  143
MAJOR SHAREHOLDERS
The following table sets forth information with respect to ownership of our share capital in excess of 3% as of
December 31, 2021 based on publicly available information and other sources available to the Company.
Name of Beneficial Owner
Number of Common Shares
Beneficially Owned
Percentage owned (d)
EXOR N.V. (a)
366,927,900
27.1%
Harris Associates L.P. (b)
97,910,801
7.2%
BlackRock, Inc.(c)
61,624,450
4.5%
(a)  In addition, EXOR N.V. holds 366,927,900 special voting shares; EXOR N.V.'s beneficial ownership in CNH Industrial is 42.5%, calculated as the
ratio of (i) the aggregate number of common and special voting shares owned by EXOR N.V. and (ii) the aggregate number of outstanding common
shares and special voting shares of CNH Industrial. There were 1,727,295,250 outstanding common shares and special voting shares at December
31, 2021.
(b)  Based on a Schedule 13G (Amendment No. 2) filed with the SEC on February 11, 2022, Harris Associates L.P.’s reported beneficial ownership in
CNH Industrial at December 31, 2021 is 5.7% calculated as the ratio of (i) the number of common shares owned by Harris Associates L.P. and (ii)
the aggregate number of outstanding common shares and special voting shares of CNH Industrial. There were 1,727,295,250 outstanding common
shares and special voting shares at December 31, 2021. Based on a filing made by Harris Associates L.P., with the public register of substantial
holdings and gross short positions held by the AFM on 24 September 2021, Harris Associates reported having indirect (real) voting rights over
87,178,442 common shares.
(c)Based on the filing made by BlackRock, Inc with the public register substantial holdings and gross short positions held by the AFM on 9 June 2021,
BlackRock, Inc reported holding (i) indirectly (real) 50,470,518 common shares with 61,624,450 voting rights and (ii) indirectly (potential) 334,854
common shares. BlackRock, Inc.’s beneficial ownership in CNH Industrial is 3.6%(*) calculated as the ratio of (i) the number of common shares
owned by BlackRock, Inc. and (ii) the aggregate number of outstanding common shares and special voting shares of CNH Industrial. There were
1,727,295,250 outstanding common shares and special voting shares at December 31, 2021.
(*) The amount does not include potential holdings where BlackRock, Inc. has a contractual right to indirectly acquire common shares potentially
enabling the increase of common share and voting rights.
(d)  There were 1,356,077,000 common shares outstanding as of December 31, 2021. All these common shares have the same rights and entitlements.
The “Percent of Common Shares” was calculated by using the publicly disclosed number of owned common shares as the numerator, respectively,
and the number of the Company’s outstanding common shares as of December 31, 2021 as the denominator.
As of December 31, 2021, EXOR N.V.’s voting power in CNH Industrial as a result of the loyalty voting program was
approximately 42.5%. EXOR N.V., through its voting power, has the ability to significantly influence the decisions
submitted to a vote of our shareholders, including approval of annual dividends, the election and removal of directors,
mergers or other business combinations, the acquisition or disposition of assets and issuances of equity and the
incurrence of indebtedness.
Our common shares are listed and can be traded on either the NYSE in U.S. dollars or the Euronext Milan in euro.
The special voting shares are not listed on the NYSE or the Euronext Milan not tradable and transferable only in very
limited circumstances and only together with the common shares to which they are associated.
Our shares may be held in the following three ways:
▪If a shareholder holds common shares directly in his or her own name in the United States, such shares are held in
registered form in an account at Computershare Trust Company, N.A., our transfer agent;
▪Interests in our common shares that are traded on the NYSE are held through the book-entry system provided by
The Depository Trust Company (“DTC”) and are registered in the register of shareholders in the name of Cede &
Co., as DTC’s nominee. Interests in the common shares traded on the Euronext Milan are held through Monte Titoli
S.p.A., the Italian central clearing and settlement system, as a participant in DTC;
▪Special voting shares and the associated common shares are registered in the books and records of the Company’s
transfer agents in the United States and Italy. As noted above, the special voting shares and associated common
shares are not tradable. The associated common shares are only tradable after they are de-registered from the
loyalty voting program at which time the associated special voting shares are surrendered to the Company. There is
no possibility to hold a special voting share without holding an associated common share.
Board Report  Major Shareholders    144
SUBSEQUENT EVENTS AND OUTLOOK
SUBSEQUENT EVENTS
CNH Industrial has evaluated subsequent events through March 1, 2022, which is the date the financial statements
were authorized for issuance, and identified the following:
▪Effective January 1, 2022, the Iveco Group Business was separated from CNH Industrial N.V. by way of a legal
statutory demerger to Iveco Group N.V. and Iveco Group became a public listed company independent from CNH
Industrial with its common shares trading on Euronext Milan, a regulated market organized and managed by Borsa
Italiana S.p.A.
▪On January 4, 2022 Fitch Ratings raised its Long-Term Issuer Default Rating on CNH Industrial N.V. to ‘BBB+’ from
‘BBB-’. Fitch also upgraded CNH Industrial Finance Europe S.A.’s senior unsecured rating to ‘BBB+’ from ‘BBB-'. The
Outlook is Stable.
▪On January 7, 2022 Fitch upgraded the Long-Term Issuer Default Ratings and senior unsecured debt ratings of CNH
Industrial Capital LLC (CNHI Capital) and CNH Industrial Capital Canada Ltd. (CNH Canada) to 'BBB+' from 'BBB-'.
The Rating Outlook is Stable. Fitch has also upgraded CNHI Capital's Short-Term IDR and commercial paper (CP)
ratings to 'F2' from 'F3'.
▪On February 22, 2022, CNH Industrial N.V. held an Investors Day, presenting its Strategic Business Plan for the
years 2022 to 2024, and announcing its formal commitment to Science-Based Target initiatives (SBTi) as a natural
continuation of CNH Industrial’s sustained efforts on climate and the environment.
▪On February 25, 2022, Moody's upgraded the senior unsecured ratings of CNH Industrial N.V. and its supported
subsidiaries including CNH Industrial Capital LLC, CNH Industrial Finance Europe S.A., CNH Industrial Capital
Australia Pty. Limited and CNH Industrial Capital Canada Ltd. to Baa2 from Baa3. The Rating Outlook is stable.
▪In order to optimize the capital structure of the Company and to meet the obligations arising from the Company's
equity incentive plans, on March 1, 2022, CNH Industrial announced a share buy-back program (the "Program") up to
€100 million, within the framework of the authorization granted by the Shareholders’ Meeting held on April 15, 2021,
whereby the Board is vested with the authority to purchase up to 10% of the Company’s issued common shares
during the eighteen-month period following such Shareholders’ Meeting. The purchases will be carried out on the
Italian Stock Exchange (Euronext Milan) and on multilateral trading facilities (MTFs), in compliance with applicable
rules and regulations, subject to a maximum price per common share equal to the average of the highest price on
each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Euronext Milan
plus 10% (maximum price) and to a minimum price per common share equal to the average of the lowest price on
each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Euronext Milan
minus 10% (minimum price). The actual timing, number and value of common shares repurchased under the
Program will depend on various factors, including market conditions, general business conditions, and compliance
with applicable legal requirements. The Program does not oblige the Company to repurchase any common shares,
and it may be suspended, discontinued, or modified upwards at any time, for any reason and without previous notice,
in accordance with applicable laws and regulations.
2022 U.S. GAAP OUTLOOK
CNH Industrial manages its operations, assesses its performance and makes decision about allocation of resources
based on financial results prepared only in accordance with U.S. GAAP, and, accordingly, also the full year guidance
presented below is prepared under U.S. GAAP.
The Company is providing the following 2022 outlook for its Industrial Activities:
▪Net sales(*) to grow 10% to 14% including currency translation effects
▪SG&A expenses lower or equal to 7.5% of net sales
▪Free Cash Flow in excess of $1 billion
▪R&D expenses and Capital expenditures up at around $1.4 billion from around $1.0 billion in 2021.
(*)  Net sales reflecting the exchange rate of 1.20 EUR/USD.
Board Report Subsequent Events and Outlook 145
March 1, 2022
The Board of Directors
Suzanne Heywood
Scott W. Wine
Léo W. Houle
Catia Bastioli
Howard W. Buffett
John Lanaway
Alessandro Nasi
Vagn Sørensen
Åsa Tamsons
Board Report  Subsequent Events and Outlook    146
CNH INDUSTRIAL
CONSOLIDATED
FINANCIAL STATEMENTS
At December 31, 2021
CNH Industrial Consolidated Financial Statements at December 31, 2021  147
CONSOLIDATED INCOME STATEMENT
($ million)
Note
2021
2020(*)
Net revenues
(1)
19,474
14,696
Cost of sales
(2)
15,231
12,287
Selling, general and administrative costs
(3)
1,425
1,197
Research and development costs
(4)
677
634
Result from investments:
(5)
92
68
Share of the profit/(loss) of investees accounted for using the equity method
92
68
Restructuring costs
(6)
36
19
Goodwill impairment loss
(12)
—
576
Other income/(expenses)
(7)
(124)
(82)
Financial income/(expenses)
(8)
(151)
(161)
PROFIT/(LOSS) BEFORE TAXES
1,922
(192)
Income tax (expense) benefit
(9)
(236)
(78)
PROFIT/(LOSS) FROM CONTINUING OPERATIONS
1,686
(270)
PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
91
(425)
PROFIT/(LOSS) FOR THE PERIOD
1,777
(695)
PROFIT/(LOSS) FOR THE PERIOD ATTRIBUTABLE TO:
Owners of the parent
1,740
(750)
Non-controlling interests
37
55
(in $)
BASIC EARNINGS/(LOSS) PER COMMON SHARE
(11)
1.28
(0.55)
Basic earnings/(loss) per common share from Continuing Operations
(11)
1.24
(0.21)
Basic earnings/(loss) per common share from Discontinued Operations
(11)
0.05
(0.34)
DILUTED EARNINGS/(LOSS) PER COMMON SHARE
(11)
1.28
(0.55)
Basic earnings/(loss) per common share from Continuing Operations
(11)
1.23
(0.21)
Basic earnings/(loss) per common share from Discontinued Operations
(11)
0.05
(0.34)
(*)  The 2020 data have been re-presented following the classification of the Iveco Group Business as Discontinued Operations for the year ended
December 31, 2021, as requested by the IFRS 5 - Non-current assets held for sale and discontinued operations.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    148
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
($ million)
Note
2021
2020(*)
PROFIT/(LOSS) (A)
1,777
(695)
Other comprehensive income/(loss) that will not be reclassified subsequently to profit or loss:
Gains/(losses) on the remeasurement of defined benefit plans
(21)
134
(5)
Related tax effect
(21)
(23)
13
Items relating to Discontinued Operations, net of tax
(90)
127
Total Other comprehensive income/(loss) that will not be reclassified subsequently to
profit or loss, net of tax (B1)
21
135
Other comprehensive income/(loss) that may be reclassified subsequently to profit or loss:
Gains/(losses) on cash flow hedging instruments
(21)
24
16
Exchange gains/(losses) on translating foreign operations
(21)
271
(716)
Share of Other comprehensive income/(loss) of entities accounted for using the equity
method
(21)
(51)
1
Related tax effect
(21)
(9)
(3)
Items relating to Discontinued Operations, net of tax
(190)
101
Total Other comprehensive income/(loss) that may be reclassified subsequently to
profit or loss, net of tax (B2)
45
(601)
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX (B) = (B1) + (B2)
66
(466)
TOTAL COMPREHENSIVE INCOME/(LOSS) (A)+(B)
1,843
(1,161)
TOTAL COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO:
Owners of the parent
1,799
(1,219)
Non-controlling interests
44
58
TOTAL COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO OWNERS OF THE
PARENT:
Continuing Operations
2,024
(978)
Discontinued Operations
(225)
(241)
(*)  The 2020 data have been re-presented following the classification of the Iveco Group Business as Discontinued Operations for the year ended
December 31, 2021, as requested by the IFRS 5 - Non-current assets held for sale and discontinued operations.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    149
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
($ million)
Note
At December 31, 2021
At December 31, 2020
ASSETS
Intangible assets
(12)
5,159
4,832
Property, plant and equipment
(13)
1,697
5,414
Investments and other non-current financial assets:
(14)
355
1,021
Investments accounted for using the equity method
298
569
Equity investments measured at fair value through other comprehensive
income
—
392
Other investments and non-current financial assets
57
60
Leased assets
(15)
1,738
1,978
Defined benefit plan assets
(22)
19
25
Deferred tax assets
(9)
367
1,061
Total Non-current assets
9,335
14,331
Inventories
(16)
4,228
6,000
Trade receivables
(17)
192
503
Receivables from financing activities
(17)
15,443
18,529
Current tax receivables
(17)
63
160
Other current receivables and financial assets
(17)
747
1,041
Prepaid expenses and other assets
118
189
Derivative assets
(18)
184
160
Cash and cash equivalents
(19)
5,845
9,629
Total Current assets
26,820
36,211
Assets held for sale
(20)
490
14
Assets held for distribution (*)
14,477
—
TOTAL ASSETS
51,122
50,556
(*)  The assets and liabilities of Iveco Group Business have been classified as Assets held for distribution and Liabilities held for distribution within the
Consolidated Statements of Financial Position at December 31, 2021, as requested by the IFRS 5 - Non-current assets held for sale and
discontinued operations.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    150
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
(CONTINUED)
($ million)
Note
At December 31, 2021
At December 31, 2020
EQUITY AND LIABILITIES
Issued capital and reserves attributable to owners of the parent
8,393
6,651
Non-controlling interests
33
84
Total Equity
(21)
8,426
6,735
Provisions:
3,052
5,239
Employee benefits
(22)
939
1,864
Other provisions
(23)
2,113
3,375
Debt:
(24)
21,689
26,618
Asset-backed financing
(24)
8,875
11,923
Other debt
(24)
12,814
14,695
Derivative liabilities
(18)
182
139
Trade payables
(25)
3,531
6,355
Tax liabilities
(9)
325
186
Deferred tax liabilities
(9)
212
203
Other current liabilities
(26)
1,721
5,081
Liabilities held for sale
(20)
125
—
Liabilities held for distribution (*)
11,859
—
Total Liabilities
42,696
43,821
TOTAL EQUITY AND LIABILITIES
51,122
50,556
(*)  The assets and liabilities of Iveco Group Business have been classified as Assets held for distribution and Liabilities held for distribution within the
Consolidated Statements of Financial Position at December 31, 2021, as requested by the IFRS 5 - Non-current assets held for sale and
discontinued operations.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    151
CONSOLIDATED STATEMENT OF CASH
FLOWS
($ million)
Note
2021
2020(*)
A) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
(19)
9,629
5,773
B) CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES:
Profit/(loss) from Continuing Operations
1,686
(270)
Amortization and depreciation (net of vehicles sold under buy-back commitments and
operating leases)
539
556
(Gains)/losses on disposal of:
Property plant and equipment and intangible assets (net of vehicles
sold under buy-back commitments)
—
6
Investments
—
—
Loss on repurchase/early redemption of notes
(33)
8
—
Goodwill impairment loss
(13)
—
576
Other non-cash items
(33)
19
372
Dividends received
61
32
Change in provisions
(33)
285
80
Change in deferred income taxes
(281)
(108)
Change in items due to buy-back commitments
(33)
—
—
Change in operating lease items
(33)
159
68
Change in working capital
(33)
199
1,529
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES FROM CONTINUING
OPERATIONS
2,675
2,841
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES FROM DISCONTINUED
OPERATIONS
638
637
TOTAL
3,313
3,478
C) CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES:
Investments in:
Property, plant and equipment and intangible assets (net of vehicles sold under buy-
back commitments and operating leases)
(521)
(390)
Consolidated subsidiaries, net of cash acquired
(2,177)
(8)
Other investments
(21)
—
Proceeds from the sale of non-current assets (net of vehicles sold under buy-back
commitments)
11
—
Net change in receivables from financing activities
(33)
(842)
401
Change in other current financial assets
8
(9)
Other changes
(459)
(535)
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES FROM CONTINUING
OPERATIONS
(4,001)
(541)
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES FROM DISCONTINUED
OPERATIONS
(121)
(33)
TOTAL
(4,122)
(574)
D) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES:
Bonds issued
1,022
2,028
Repayment of bonds
(1,700)
(600)
Issuance of other medium-term borrowings (net of repayment)
(29)
289
Net change in other financial payables and derivative assets/liabilities
(33)
(552)
(707)
Dividends paid
(188)
(8)
Purchase of treasury shares
—
—
Purchase of ownership interests in subsidiaries
—
—
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES FROM CONTINUING
OPERATIONS
(1,447)
1,002
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES FROM DISCONTINUED
OPERATIONS
(104)
(465)
TOTAL
(1,551)
537
CNH Industrial  Consolidated Financial Statements at December 31, 2021    152
Translation exchange differences
(407)
415
E) TOTAL CHANGE IN CASH AND CASH EQUIVALENTS
(2,767)
3,856
Less: Cash and cash equivalent at the end of year – included within Assets held for
distribution at the end of the period
(1,017)
—
F) CASH AND CASH EQUIVALENTS AT END OF YEAR
(19)
5,845
9,629
(*)  The 2020 data have been re-presented following the classification of the Iveco Group Business as Discontinued Operations for the year ended
December 31, 2021, as requested by the IFRS 5 - Non-current assets held for sale and discontinued operations.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    153
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
Attributable to the owners of the parent
($ million)
Share
capital
Treasury
shares
Capital
reserves
Earnings
reserves
Cash
flow
hedge
reserve
Cumulative
translation
adjustment
reserve
Defined benefit
plans
remeasurement
reserve
Equity
investments
at FVTOCI
Cumulative
share of OCI
of entities
consolidated
under the
equity method
Non-
controlling
interests
Total
AT DECEMBER
31, 2019
25
(154)
3,240
6,935
(49)
(1,473)
(524)
(5)
(176)
44
7,863
Dividends
distributed
—
—
—
—
—
—
—
—
—
(8)
(8)
Common shares
issued from
treasury stock and
capital increase
for share-based
compensation
—
45
(47)
—
—
—
—
—
—
—
(2)
Share-based
compensation
expense
—
—
38
—
—
—
—
—
—
—
38
Purchase of
ownership
interests in
subsidiaries from
non-controlling
interests
—
—
(5)
—
—
—
—
—
—
(4)
(9)
Total
comprehensive
income/(loss) for
the period
—
—
—
(750)
28
(653)
(3)
138
21
58
(1,161)
Other changes(1)
—
—
(6)
26
—
—
—
—
—
(6)
14
AT DECEMBER
31, 2020
25
(109)
3,220
6,211
(21)
(2,126)
(527)
133
(155)
84
6,735
Dividends
distributed
—
—
—
(180)
—
—
—
—
—
(98)
(278)
Common shares
issued from
treasury stock
and capital
increase for
share-based
compensation
—
25
(25)
—
—
—
—
—
—
—
—
Share-based
compensation
expense
—
—
99
—
—
—
—
—
—
—
99
Total
comprehensive
income/(loss) for
the period
—
—
—
1,740
19
119
156
(136)
(99)
44
1,843
Other changes(1)
—
—
—
24
—
—
—
—
—
3
27
AT DECEMBER
31, 2021
25
(84)
3,294
7,795
(2)
(2,007)
(371)
(3)
(254)
33
8,426
(1) Other changes of Earnings reserves include the impact of IAS 29 - Financial reporting in hyperinflationary economies applied for subsidiaries that
prepare their financial statements in a functional currency of a hyperinflationary economy. In particular, from July 1, 2018, Argentina’s economy was
considered to be hyperinflationary.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    154
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
PRINCIPAL ACTIVITIES
CNH Industrial N.V. (the “Company” and, collectively with its subsidiaries, “CNH Industrial” or the “CNH Industrial
Group” or the “Group”) is the company formed as a result of the business combination transaction (the “Merger”),
completed on September 29, 2013, between Fiat Industrial S.p.A. (“Fiat Industrial” and, together with its subsidiaries,
the “Fiat Industrial Group”) and its majority owned subsidiary CNH Global N.V. (“CNH Global”). CNH Industrial N.V. is
incorporated under the laws of the Netherlands. CNH Industrial N.V. has its corporate seat in Amsterdam, the
Netherlands, and its principal office in London, England, United Kingdom. Until December 31, 2021, CNH Industrial was
a leading company in the capital goods sector that, through its various businesses, designs, produces and sells
agricultural equipment, construction equipment, trucks, commercial vehicles, buses and specialty vehicles, in addition
to a broad portfolio of powertrain applications (see Note 28 “Segment reporting”). In addition, CNH Industrial’s Financial
Services segment offers an array of financial products and services, including retail financing for the purchase or lease
of new and used CNH Industrial and other manufacturers’ products and other retail financing programs and wholesale
financing to dealers.
Until December 31, 2021, before the Demerger described below, CNH Industrial had five reportable segments:
Agriculture, Construction, Commercial and Specialty Vehicles, Powertrain and Financial Services. CNH Industrial's
worldwide agricultural equipment, construction equipment, commercial and specialty vehicles, powertrain operations, as
well as corporate functions, are collectively referred to as “Industrial Activities”.
Following the Demerger, effective January 1, 2022, CNH Industrial is a leading global capital goods company engaged
in the design, production, marketing, sale, and financing of agricultural and construction equipment.
SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
These Consolidated Financial Statements together with the notes thereto of CNH Industrial at December 31, 2021 were
authorized for issuance by the Board of Directors on March 1, 2022 and have been prepared in accordance with the
International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU-IFRS”) and with Part 9 of
Book 2 of the Dutch Civil Code. The designation “IFRS” also includes International Accounting Standards (“IAS”), as
well as all interpretations of the IFRS Interpretations Committee (“IFRIC”).
The financial statements are prepared under the historical cost convention, modified as required for the measurement
of certain financial instruments, as well as on a going concern basis. Despite operating in a continuously difficult
economic and financial environment, negatively impacted by the continuing spread of the COVID-19 pandemic, the
Group’s assessment is that no material uncertainties (as defined in paragraph 25 of IAS 1) exist about its ability to
continue as a going concern, in view also of the measures already undertaken by the Group to preserve cash and
contain costs, and to preserve its industrial and financial flexibility, and its strong liquidity position.
These Consolidated Financial Statements are prepared using the U.S. dollar as the presentation currency. The
functional currency of the parent company (CNH Industrial N.V.) is the euro. The U.S. dollar presentation currency was
elected to be used in order to improve comparability with main competitors, mainly in the agriculture and construction
businesses, and to provide more meaningful information to U.S. investors.
Iveco Group Business Spin-off and Discontinued Operations
During 2021, CNH Industrial completed a strategic project to separate the Commercial and Specialty Vehicles business,
the Powertrain business, and the related Financial Services business (together the “Iveco Group Business”) from the
Agriculture business, the Construction business, and the related Financial Services business.
The Iveco Group Business was separated from CNH Industrial N.V. in accordance with Section 2:334a (3) of the Dutch
Civil Code (Burgerlijk Wetboek) by way of a legal statutory demerger (juridische afsplitsing) to Iveco Group N.V. (the
"Demerger"), effective January 1, 2022.
The principal phases leading up to completion of the Demerger were as follows:
▪On September 3, 2019, CNH Industrial  announced at its Capital Markets Day event the intended Demerger.
▪On December 23, 2021, an Extraordinary General Meeting of CNH Industrial shareholders was held to approve the
Demerger of Iveco Group Business.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    155
▪On December 27, 2021, Borsa Italiana has admitted Iveco Group N.V. common shares to listing on Euronext Milan.
▪Following receipt of the above authorizations, the deed of Demerger was executed on December 31, 2021, with
effectiveness of the Demerger on January 1, 2022.
▪On January 3, 2022 (the “First Trading Date”) Iveco Group common shares began trading on the regulated market
Euronext Milan, under the ticker symbol ‘IVG’. As a result of the Demerger, each holder of CNH Industrial common
shares (and special voting shares as the case may be) received one Iveco Group share for every five CNH Industrial
common shares (or special voting share as the case may be) held at close of business on the record date for
allocation (January 4, 2022). Since January 3, 2022, CNH Industrial N.V. and Iveco Group N.V. have been quoted
separately on the regulated markets and operate as independent listed companies, each with its own management
and Board of Directors.
As the transaction took effect on January 1, 2022, the consolidated financial statements for the year ended December
31, 2021 relate to CNH Industrial Pre-Demerger. Moreover, in accordance with IFRS 5 – Non-current Assets Held for
Sale and Discontinued Operations, as the Demerger became highly probable in December, the Iveco Group Business
is classified and presented as Discontinued Operations in these consolidated financial statements. That presentation
has resulted in the following:
▪for both years 2021 and 2020 (the latter presented for comparative purposes), the operating results of Iveco Group
Business are presented in a single line item "Profit/(Loss) from Discontinued Operations, net of tax" within the
Consolidated Income Statement;
▪all assets and liabilities (excluding equity) relating to Iveco Group Business at December 31, 2021 are reclassified as
Assets held for distribution and Liabilities held for distribution, respectively, within the Consolidated Statement of
Financial Position;
▪for both years 2021 and 2020 (the latter presented for comparative purposes), the cash flows arising from the Iveco
Group Business (as Discontinued Operations) are presented in the Consolidated Statement of Cash Flows as
separate line items under cash flows from operating, investing and financing activities.
For additional detail of items presented under Discontinued Operations in the Consolidated Statements of Income,
Financial Position and Cash Flows, refer to the section "Scope of Consolidation - Discontinued Operations - Iveco
Group Business".
Additionally, as the Demerger is a “business combination involving entities or businesses under common control”, it is
outside the scope of application of IFRS 3 – Business Combinations and IFRIC 17- Distributions of Non-cash Assets to
Owners. Accordingly, in the 2022 consolidated financial statements for CNH Industrial and Iveco Group, the opening
position for items in the statement of financial position will be equivalent to the carrying amounts reported in the
consolidated financial statements of CNH Industrial Pre-Demerger.
COVID-19 effects, actions, and use of accounting estimates and management’s assumptions
The COVID-19 pandemic and the related actions of governments and other authorities to contain COVID-19 spread
continue to affect CNH Industrial’s business, results and cash flow.
Governments in many countries where the Company operates, designated part of our businesses as essential critical
infrastructure businesses. This designation allows CNH Industrial to operate in support of its dealers and customers to
the extent possible. CNH Industrial also continues to prioritize the health, safety and well-being of its employees.
The Company remains cautious about future impacts on CNH Industrial's end-markets and business operations of
restrictions on social interactions and business operations to limit the resurgence of the pandemic. CNH Industrial is
closely monitoring the impact of the COVID-19 pandemic on all aspects of its business, its employees and the
Company's results of operations, financial condition and cash flows.
The main impacts of the pandemic on significant accounting matters are disclosed below.
The preparation of the Consolidated Financial Statements requires management to make estimates and assumptions
that affect the reported amounts of income, expenses, assets, liabilities, accumulated other comprehensive income and
disclosure of contingent assets and contingent liabilities, as further described in the following paragraph "Use of
estimates".
Due to the currently unforeseeable global consequences of the COVID-19 pandemic, these estimates and assumptions
are subject to increased uncertainty. Actual results could differ materially from the estimates and assumptions used in
preparation of the financial statements. If in the future such estimates and assumptions, which are based on
management’s best judgment at the date of the Consolidated Financial Statements, deviate from the actual
circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the
circumstances change. 
CNH Industrial  Consolidated Financial Statements at December 31, 2021    156
These Consolidated Financial Statements include all updates of estimates and assumptions considered necessary by
management to fairly state the Group’s results of operations, financial position and cash flows. Updated estimates and
assumptions to incorporate the expected consequences of the COVID-19 pandemic were also included in the analysis
of the recoverability and collectability of financial assets, especially of receivables from financing activities. Finally, with
regard to hedge accounting, estimates were updated concerning whether forecast transactions can still be assumed to
be highly likely to occur.
CNH Industrial is exposed to operational financial risks such as credit risk, liquidity risk and market risk, mainly relating
to exchange rates and interest rates. For a detailed description of this information see the “Risk management and
Control System” section of the Board Report, Note 17 “Current receivables and Other current financial assets” and Note
30 “Information on financial risks”.
Climate related matters
CNH Industrial has an established risk management process that includes the assessment and monitoring of climate-
related risk. These assessments are used by the Company to identify not only risk exposure, but also opportunities, on
which the Company’s climate change strategy is based. The identification of these climate-related risks and
opportunities, along with the analysis of sustainability macrotrends, led to the definition of a decarbonization strategy,
which in turn has been incorporated within, and regularly influences, the Company’s Strategic Business Plan. To further
address the potential impacts of climate change, CNH Industrial has implemented relevant projects and a number of
other specific climate-related topics and has defined long-term strategic targets (e.g., CO2 emissions reduction in
manufacturing plants, reduction of CO2 emissions in logistics processes, share of product portfolio available with natural
gas powertrains).
There has been increasing interest in how climate change will impact the Group’s business. With reference to the
climate related matters, a critical review was undertaken, and a focused analysis performed to identify, and
consequently manage, the principal risks and uncertainties to which the Group is exposed. The most significant area of
effort will be the management of water scarcity and waste and the reducing energy and GHG emissions in the supply
chain area. CNH Industrial recognizes the importance of climate change risk and promotes a responsible use of
resources and a reduction of the environmental impact of production to mitigate climate change. In this context, CNH
Industrial Group has adopted an environmental policy that applies to all company locations and divisions and has set up
a structure dedicated to control environmental pollution, waste, and water disposal as well as emission reduction.
In particular, considering the financial statements information are presented through historical values which, by their
nature, do not fully capture future events, all significant assumptions and estimates underlying the preparation of the
following items were subject to an analysis in order to identify and address the new uncertainties related to climate
changes which could affect the business: going concern, inventory management, property, plant and equipment,
goodwill, brands, intangible assets with a finite life, tax reliefs, revenue recognition, provisions and onerous contracts.
The analysis conducted were based on the Group strategy outlined in the context of the global supply chain
environmental targets and did not highlight any critical situations that cannot be attributable to and addressed in the
ordinary course of the business.
Global Supply Chain Disruptions
On October 13, 2021, CNH Industrial announced the temporary closure of several of its European agricultural,
commercial vehicle and powertrain manufacturing facilities in response to ongoing disruptions to the procurement
environment and shortages of core components, especially semiconductors. The global supply chain still shows
increasing input costs and logistics pressures, with ongoing disruptions to the procurement environment forcing
repeated reviews of production schedules. Global supply chain represented the main challenge for the operations in the
year, with multiple bottlenecks resulting in increased raw material prices, intermittent subcomponent availability, notably
for semiconductors, and increased transportation costs.
Format of the financial statements
CNH Industrial presents an income statement using a classification based on the function of expenses (otherwise
known as the “cost of sales” method), rather than one based on their nature, as this is believed to provide information
that is more relevant.
For the statement of financial position, a mixed format has been selected to present current and non-current assets and
liabilities, as permitted by IAS 1 – Presentation of Financial Statements. Legal entities carrying out industrial activities
and those carrying out financial services are both consolidated in the Group’s financial statements. The investment
portfolios of Financial Services are included in current assets, as the investments will be realized in their normal
operating cycle. Financial Services, though, obtains funds only partially from the market: the remainder is obtained from
CNH Industrial N.V. through its treasury legal entities (included in Industrial Activities), which lend funds both to
Industrial Activities and to Financial Services legal entities as the need arises. This Financial Services structure within
CNH Industrial  Consolidated Financial Statements at December 31, 2021    157
the Group means that any attempt to separate current and non-current liabilities in the consolidated statement of
financial position is not meaningful. Disclosure of the due dates of liabilities is however provided in the notes.
The statement of cash flows is presented using the indirect method.
Basis of consolidation
Subsidiaries
Subsidiaries are entities over which the Group has control. Control is achieved when the Group is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its
power over the investee.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
▪the contractual arrangement with the other vote holders of the investee;
▪rights arising from other contractual arrangements;
▪the Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
to one or more of the three elements of control. The financial statements of subsidiaries are included in the
Consolidated Financial Statements from the date that control commences until the date that control ceases. Non-
controlling interests in the net assets of consolidated subsidiaries and non-controlling interests in the profit or loss of
consolidated subsidiaries are presented separately from the interests of the owners of the parent in the consolidated
statement of financial position and income statement respectively. Losses applicable to non-controlling interests which
exceed the non-controlling interests in the subsidiary’s equity are debited to non-controlling interests.
Changes in the Group's ownership interests in subsidiaries that do not result in the loss of control are accounted for as
equity transactions. The carrying amounts of the equity attributable to owners of the parent and non-controlling interests
are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the book value
of the non-controlling interests and the fair value of the relevant consideration is recognized directly in the equity
attributable to the owners of the parent.
If the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference
between (i) the aggregate of the fair value of the relevant consideration and the fair value of any retained interest and
(ii) the carrying amount of the assets (including goodwill) and liabilities of the subsidiary and any non-controlling
interests. Any profits or losses recognized in other comprehensive income in respect of the subsidiary are accounted for
as if the subsidiary had been sold (i.e. are reclassified to profit or loss or transferred directly to retained earnings
depending on the applicable IFRS).
Subsidiaries that are either dormant or generate a negligible volume of business, are not consolidated. Their impact on
the Group’s assets, liabilities, financial position and profit/(loss) attributable to the owners of the parent is immaterial.
Joint ventures
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.
Investments in joint ventures are accounted for using the equity method from the date that joint control commences until
the date that joint control ceases.
Associates
Associates are enterprises over which the Group has significant influence. As defined in IAS 28 – Investments in
Associates and Joint Ventures, significant influence is the power to participate in the financial and operating policy
decisions of the investee but is not control or joint control of those policies. Investments in associates are accounted for
using the equity method from the date that significant influence commences until the date that significant influence
ceases. When the Group’s share of losses of an associate, if any, exceeds the carrying amount of the associate in the
Group’s statement of financial position, the carrying amount is reduced to nil and recognition of further losses is
discontinued except to the extent that the Group has incurred obligations in respect of the associate.
Investments in other companies
Investments in other companies are measured at fair value. Equity investments for which there is no quoted market
price in an active market and there is insufficient financial information in order to determine fair value are measured at
cost as an estimate of fair value, as permitted by IFRS 9. The Group may irrevocably elect to present subsequent
CNH Industrial  Consolidated Financial Statements at December 31, 2021    158
changes in the investment’s fair value in other comprehensive income upon the initial recognition of an equity
investment that is not held to sell. This election is made on an investment-by-investment basis. Dividends received from
these investments are included in Other income/(expenses) from investments.
Transactions eliminated on consolidation
All significant intragroup balances and transactions and any unrealized gains and losses arising from intragroup
transactions are eliminated in preparing the Consolidated Financial Statements. Unrealized gains and losses arising
from transactions with associates and joint ventures are eliminated to the extent of the Group’s interest in those entities.
Foreign currency transactions
Transactions in foreign currencies are recorded at the foreign exchange rate prevailing at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the
exchange rate prevailing at that date. Exchange differences arising on the settlement of monetary items or on reporting
monetary items at rates different from those at which they were initially recorded during the period or in previous
financial statements, are recognized in profit or loss.
Consolidation of foreign entities
All assets and liabilities of subsidiaries with a functional currency other than the U.S. dollar are translated using the
exchange rates in effect at the balance sheet date. Income and expenses are translated at the average exchange rate
for the period. Translation differences resulting from the application of this method are classified as equity until the
disposal of the investment. Average rates of exchange are used to translate the cash flows of foreign subsidiaries in
preparing the consolidated statement of cash flows.
The goodwill, assets acquired and liabilities assumed arising from the acquisition of entities with a functional currency
other than the U.S. dollar are recognized in the functional currency and translated at the exchange rate at the
acquisition date. These balances are subsequently retranslated at the exchange rate at the balance sheet date.
The Group applies IAS 29 - Financial reporting in hyperinflationary economies for its subsidiaries that prepare their
financial statements in a functional currency of a hyperinflationary economy. According to this standard, non-monetary
assets and liabilities not yet translated into U.S. dollar at the reporting date are redetermined using a general price
index. The financial statements of these subsidiaries are then translated at the closing spot rate.
The principal exchange rates used to translate into U.S. dollars the financial statements prepared in currencies other
than the U.S. dollar were as follows:
Average 2021
At December 31,
2021
Average 2020
At December 31,
2020
Euro
0.845
0.883
0.876
0.815
Pound sterling
0.727
0.742
0.779
0.733
Swiss franc
0.914
0.912
0.937
0.880
Polish zloty
3.860
4.059
3.890
3.716
Brazilian real
5.392
5.571
5.160
5.194
Canadian dollar
1.254
1.271
1.340
1.274
Argentine peso(1)
102.630
102.630
83.973
83.973
Turkish lira
8.888
13.450
7.052
7.427
(1)From July 1, 2018, Argentina’s economy was considered to be hyperinflationary. After the same date, transactions for entities with the Argentine peso
as the functional currency were translated using the closing spot rate.
Business combinations
Business combinations are accounted for by applying the acquisition method. Under this method:
▪the consideration transferred in a business combination is measured at fair value, which is calculated as the sum of
the acquisition-date fair values of the assets transferred and liabilities assumed by the Group and the equity interests
issued in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as
incurred;
▪at the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value at
that date, except for deferred tax assets and liabilities, assets and liabilities relating to employee benefit
arrangements, liabilities or equity instruments relating to share-based payment arrangements of the acquiree or
share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the
CNH Industrial  Consolidated Financial Statements at December 31, 2021    159
acquire, assets (or disposal groups) that are classified as held for sale, which are measured in accordance with the
relevant standard;
▪goodwill is measured as the excess of the aggregate of the consideration transferred in the business combination,
the amount of any non-controlling interest in the acquiree and the fair value of the acquirer's previously held equity
interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the
liabilities assumed. If the net of the acquisition-date amounts of the identifiable assets acquired and liabilities
assumed exceeds the aggregate of the consideration transferred, the amount of any non-controlling interest in the
acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognized
immediately in profit or loss as a gain from a bargain purchase;
▪non-controlling interest is initially measured either at fair value or at the non-controlling interest’s proportionate share
of the acquiree's identifiable net assets. The selection of the measurement method is made on a transaction-by-
transaction basis;
▪any contingent consideration arrangement in the business combination is measured at its acquisition-date fair value
and included as part of the consideration transferred in the business combination in order to determine goodwill.
Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are
recognized retrospectively, with corresponding adjustments to goodwill. Measurement period adjustments are
adjustments that arise from additional information obtained during the ‘measurement period’ (which may not exceed
one year from the acquisition date) about facts and circumstances that existed as of the acquisition date. Any
changes in fair value after the measurement period are recognized in profit or loss.
When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree is
remeasured at its acquisition-date fair value and the resulting gain or loss, if any, is recognized in profit or loss.
Changes in the equity interest in the acquiree that have been recognized in Other comprehensive income in prior
reporting periods are reclassified to profit or loss as if the interest had been disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete in the
Consolidated Financial Statements. Those provisional amounts are adjusted during the above-mentioned measurement
period to reflect new information obtained about facts and circumstances that existed at the acquisition date which, if
known, would have affected the amounts recognized at that date.
Business combinations that took place prior to January 1, 2010 were accounted for in accordance with the version of
IFRS 3 effective before the 2008 amendments, as permitted by the revised standard.
Fair value measurement
Some of the Group’s assets and liabilities are measured at fair value at the balance sheet date. Fair value is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date.
In estimating the fair value of an asset or a liability, the Group uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant
observable inputs and minimizing the use of unobservable inputs. Additional information about fair value, fair value
hierarchy, valuation techniques and inputs used in determining the fair value of assets and liabilities is provided in Note
18, Note 31 and, where required, in the individual notes relating to the assets and liabilities whose fair value were
determined.
In addition, fair value measurements are categorized within the fair value hierarchy, described as follows, based on the
degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety:
▪Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
the measurement date;
▪Level 2 — inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices) on the market;
▪Level 3 — inputs that are not based on observable market data.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    160
Intangible assets
Goodwill
Goodwill is not amortized, but is tested for impairment annually or more frequently if events or changes in
circumstances indicate that it might be impaired. After initial recognition, goodwill is measured at cost less any
accumulated impairment losses.
Development costs
Development costs for vehicle production project (trucks, buses, agricultural and construction equipment and engines)
are recognized as an asset if and only if both of the following conditions are met: a) development costs can be
measured reliably, and b) the technical feasibility of the product, volumes and pricing support the view that the
development expenditure will generate future economic benefits. Capitalized development costs include all direct and
indirect costs that may be directly attributed to the development process. Capitalized development costs are amortized
on a systematic basis from the start of production of the related product over the product’s estimated average life, as
follows:
N° of years
Trucks and buses
4-8
Agricultural and construction equipment
5
Engines
8-10
All other development costs are expensed as incurred.
Intangible assets with indefinite useful lives
Intangible assets with indefinite useful lives principally consist of acquired trademarks which have no legal, regulatory,
contractual, competitive, economic, or other factor that limits their useful life. Intangible assets with an indefinite useful
life are not amortized, but are tested for impairment annually or more frequently whenever there is an indication that the
asset may be impaired.
Other intangible assets
Other purchased and internally-generated intangible assets are recognized as assets in accordance with IAS 38 –
 Intangible Assets, where it is probable that the use of the asset will generate future economic benefits and where the
costs of the asset can be determined reliably.
Such assets are measured at purchase or manufacturing cost and amortized on a straight-line basis over their
estimated useful lives, if these assets have finite useful lives.
Other intangible assets acquired as part of the acquisition of a business are capitalized separately from goodwill if their
fair value can be measured reliably.
Property, plant and equipment
Cost
Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment.
Subsequent expenditures and the cost of replacing parts of an asset are capitalized only if they increase the future
economic benefits embodied in that asset. All other expenditures are expensed as incurred. When such replacement
costs are capitalized, the carrying amount of the parts that are replaced is recognized in profit or loss.
Property, plant and equipment also include vehicles sold with a buy-back commitment, which are recognized under the
method described in the paragraph "Revenue recognition" if the buy-back commitment originates from Commercial and
Specialty Vehicles.
Depreciation
Depreciation is recorded on a straight-line basis over the estimated useful lives of the respective assets as follows:
Depreciation rates
Buildings
2.5% - 10%
Plant, machinery and equipment
4% - 20%
Other assets
10% - 33%
Land is not depreciated.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    161
Lease accounting policy
Lessee accounting
A lease is a contract that conveys the right to control the use of an identified asset (the leased asset) for a period of
time in exchange for consideration. The lease term determined by the Group comprises the non-cancellable period of
lease contract together with both periods covered by an option to extend the lease if the lessee is reasonably certain to
exercise that option; and periods covered by an option to terminate the lease if the lessee is reasonably certain not to
exercise that option. For real estate leases, this assessment is based on an analysis by management of all relevant
facts and circumstances including the leased asset’s purpose, the economic and practical potential for replacing and
any plans that the Group has in place for the future use of the asset. The Group combines lease and non-lease
components.
For leases with terms not exceeding twelve months (short-term leases) and for leases of low-value assets, CNH
Industrial recognizes the lease payments associated with those leases on a straight-line basis over the lease term as
operating expense in the income statement.
For all other leases, at the commencement date (i.e., the date the underlying asset is available for use), CNH Industrial
recognizes a right-of-use asset, classified within Property, plant and equipment, and a lease liability, classified within
Other Debt.
At the commencement date, the right-of-use asset includes the amount of lease liability recognized, initial direct costs
incurred, and lease payments made at or before the commencement date less any lease incentives received. At the
same date, the lease liability is measured at the present value of lease payments to be made over the lease term,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's
incremental borrowing rate. The incremental borrowing rate is determined considering macro-economic factors such as
the specific interest rate curve based on the relevant currency and term, as well as specific factors contributing to CNH
Industrial’s credit spread. The Group primarily uses the incremental borrowing rate as the discount rate for its lease
liabilities.
After the commencement date, the right-of-use asset is measured at cost less any accumulated depreciation and any
accumulated impairment losses, and adjusted for any remeasurement of the lease liability. The right-of-use asset is
depreciated on a straight-line basis. If the lease transfers ownership of the underlying asset to the Group by the end of
the lease term or if the cost of the right-of-use asset reflects that the Group will exercise a purchase option, CNH
Industrial depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying
asset. Otherwise, the Group depreciates the right-of-use asset from the commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end of the lease term. After the commencement date, the lease liability is
increased to reflect the accretion of interest, recognized within Financial income/(expenses) in the income statement,
reduced for the lease payments made, and remeasured to reflect any reassessment or lease modifications.
Before the adoption of IFRS 16, where CNH Industrial entered as lessee in a lease contract classified as finance,
assuming substantially all the risks and rewards of ownership, assets held under finance lease were recognized as
assets of the Group at the lower of fair value or present value of the minimum lease payments and depreciated. The
corresponding liability to the lessor was included in the financial statement as a debt. Where CNH Industrial entered as
lessee in a lease contract classified as operating, the lessor retained substantially all the risks and rewards of
ownership of the asset. Operating lease expenditures were expensed on a straight-line basis over the lease terms.
Lessor accounting
Lease contracts where CNH Industrial acts as a lessor, can be classified as either an operating lease or finance lease.
Leases where a significant portion of the risks and rewards are retained by the lessor are classified as operating leases.
Leases that transfer substantially all the risks and rewards incidental to ownership of an underlying asset to the lessee
are classified as a finance leases.
Where CNH Industrial is the lessor in a finance lease, the future minimum lease payments from lessees are classified
as Receivables from financing activities. Lease payments are recognized as repayment of the principal, and financial
income remunerating the initial investment and the services provided.
Where CNH Industrial is the lessor in an operating lease, income from operating leases is recognized over the term of
the lease on a straight-line basis. Leased assets include vehicles leased to retail customers by the Group's leasing
companies. They are stated at cost and depreciated at annual rates of between 20% and 33%.
When leased assets are no longer leased and become held for sale, the Group reclassifies their carrying amount to
Inventories. 
CNH Industrial  Consolidated Financial Statements at December 31, 2021    162
Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets (as
defined under IAS 23 – Borrowing Costs), which are assets that necessarily take a substantial period of time to get
ready for their intended use or sale, are capitalized and amortized over the useful life of the class of assets to which
they refer.
All other borrowing costs are expensed when incurred.
Impairment of assets
The Group reviews, at least annually, the recoverability of the carrying amount of intangible assets (including capitalized
development costs) and property, plant and equipment, in order to determine whether there is any indication that those
assets have suffered an impairment loss. Goodwill and Intangible assets with indefinite useful lives are tested for
impairment annually or more frequently, if there is an indication that an asset may be impaired.
If indicators of impairment are present, the carrying amount of the assets is reduced to its recoverable amount that is
the higher of its fair value less disposal costs and its value in use. Where it is not possible to estimate the recoverable
amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the
asset belongs. In assessing its value in use, the pre-tax estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. An impairment loss is recognized when the recoverable amount is lower than the carrying amount.
Where a previous impairment loss for assets other than goodwill no longer exists or has decreased, the carrying
amount of the asset or cash-generating unit is increased up to the revised estimate of its recoverable amount, but not in
excess of the carrying amount that would have been recorded had no impairment loss been recognized. A reversal of
an impairment loss is recognized in profit or loss immediately.
Financial instruments
Presentation
Financial instruments held by the Group are presented and measured in the financial statements as described in the
following paragraphs.
Investments and other non-current financial assets comprise investments in unconsolidated companies and other non-
current financial assets (securities, and other non-current financial receivables).
Current financial assets include trade receivables, receivables from financing activities (retail financing, dealer
financing, lease financing and other current loans to third parties), current securities and other current financial assets
(which include derivative financial instruments stated at fair value as assets), as well as cash and cash equivalents.
Current securities include short-term or marketable securities which represent temporary investments of available funds
and do not satisfy the requirements for being classified as cash equivalents.
Financial liabilities refer to debt, which includes asset-backed financing (“ABS”), and derivative liabilities (which include
derivative financial instruments stated at fair value as liabilities), trade payables and other liabilities.
Measurement
Investments in unconsolidated companies classified as non-current financial assets are accounted for as described in
the paragraph “Basis of consolidation”.
In accordance with IFRS 9 - Financial Instruments, financial assets are classified as measured at either amortized cost
("AC"), fair value through other comprehensive income ("FVTOCI") or fair value through profit or loss ("FVTPL"),
depending on the business model for managing such financial assets and the asset’s contractual cash flow
characteristics. Financial liabilities are classified as measured at amortized cost using the effective interest method.
Financial assets and current securities acquired through a regular way purchase are recognized on the basis of the
settlement date and, on initial recognition, are measured at fair value, including transaction costs. Subsequent
measurement depends on the business model for managing the asset and the cash flow characteristics of the asset.
Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of
principal and interest, are measured at amortized cost using the effective interest method. Receivables with maturities
of over one year which bear no interest or an interest rate significantly lower than market rates are discounted using
market rates.
Assets that are held for collection of contractual cash flows and for selling the financial assets, where the asset’s cash
flows represents solely payments of principal and interests, are measured at fair value through other comprehensive
income. Gains and losses on assets measured at fair value through other comprehensive income are recognized
CNH Industrial  Consolidated Financial Statements at December 31, 2021    163
directly in other comprehensive income until the financial asset is disposed of or is determined to be impaired; when the
asset is disposed of, the cumulative gains or losses, including those previously recognized in other comprehensive
income, are reclassified to profit or loss; when the asset is impaired, impairment losses are recognized to profit or loss.
Interest income from these financial assets is included in financial income.
As a result of the Group's business model, trade receivables and receivables from financing activities are subsequently
measured at amortized cost.
Assessments are made regularly as to whether there is any objective evidence that a financial asset or group of assets
may be impaired. If any such evidence exists, an impairment loss is included in profit or loss for the period. The
recognition of an impairment is based on expected credit losses.
Cash and cash equivalents include cash at banks, units in liquidity funds, other money market securities and other cash
equivalents. Cash and cash equivalents are subject to an insignificant risk of changes in value. Money market securities
consist of investments in high quality, short-term, diversified financial instruments that can generally be liquidated on
demand and are measured at FVTPL. Cash at banks and Other cash equivalents are measured at amortized cost.
Derivatives financial assets and liabilities are measured either at fair value through other comprehensive income (when
in an hedging relationship) or at fair value through profit or loss.
Financial assets and liabilities hedged by derivative instruments are measured in accordance with hedge accounting
principles applicable to fair value hedges: gains and losses arising from remeasurement at fair value, due to changes in
the respective hedged risk, are recognized in profit or loss and are offset by the effective portion of the loss or gain
arising from remeasurement at fair value of the hedging instrument.
Derivative financial instruments
Derivative financial instruments are used for hedging purposes, in order to reduce currency, interest rate and market
price risks. In accordance with IFRS 9, derivative financial instruments qualify for hedge accounting only when, at the
inception of the hedge, there is formal designation and documentation of the hedging relationship and the entity’s risk
management objective and strategy for undertaking the hedge, there is an economic relationship between the hedging
instrument and the hedged item, credit risk does not dominate the value changes that result from the economic
relationship, and the hedging ratio in the hedging relationship reflects the actual quantity of the hedging instruments and
the hedged item. Further details on qualifying criteria are included in Note 18 “Derivative assets and derivative
liabilities” and Note 30 “Information on financial risks”.
When derivative financial instruments qualify for hedge accounting, the following accounting treatment applies:
▪Fair value hedges – where a derivative financial instrument is designated as a hedge of the exposure to changes in
fair value of a recognized asset or liability that is attributable to a particular risk and could affect profit or loss, the gain
or loss from remeasuring the hedging instrument at fair value is recognized in profit or loss. The gain or loss on the
hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognized in profit
or loss.
▪Cash flow hedges – where a derivative financial instrument is designated as a hedge of the exposure to variability in
future cash flows of a recognized asset or liability or a highly probable forecasted transaction and could affect profit or
loss, the effective portion of any gain or loss on the derivative financial instrument is recognized directly in other
comprehensive income in the cash flow hedge reserve. The cumulative gain or loss is removed from other
comprehensive income and recognized in profit or loss at the same time as the economic effect arising from the
hedged item affects income. The gain or loss associated with a hedge or part of a hedge that has become ineffective
is recognized in profit or loss immediately. When a hedging instrument or hedge relationship is terminated but the
hedged transaction is still expected to occur, the cumulative gain or loss realized to the point of termination remains
in other comprehensive income and is recognized in profit or loss at the same time as the underlying transaction
occurs. If the hedged transaction is no longer probable, the cumulative unrealized gain or loss held in other
comprehensive income is recognized in profit or loss immediately.
If hedge accounting cannot be applied, the gains or losses from the fair value measurement of derivative financial
instruments are recognized immediately in profit or loss.
Transfers of financial assets
The Group derecognizes financial assets when the contractual rights to the cash flows arising from the assets are no
longer held or if it transfers the financial activities, as follows:
▪if the Group transfers substantially all the risks and rewards of ownership of the financial asset, it derecognizes the
financial asset and recognizes separately as assets or liabilities any possible rights and obligations created or
retained in the transfer;
CNH Industrial  Consolidated Financial Statements at December 31, 2021    164
▪if the Group retains substantially all the risks and rewards of ownership of the financial asset, it continues to
recognize the financial asset;
▪if the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, it
determines whether it has retained control of the financial asset. In this case:
▪if the Group has not maintained control, it derecognizes the financial asset and recognizes separately as assets
and liabilities any possible rights and obligations created or retained in the transfer;
▪if the Group has retained control, it continues to recognize the financial asset to the extent of its continuing
involvement in the financial asset.
On derecognition of a financial asset, the difference between the carrying amount of the asset and the consideration
received or receivable for the transfer of the asset is recognized in profit or loss.
Inventories
Inventories of raw materials, semi-finished products and finished goods (including assets leased out under operating
lease) are stated at the lower of cost or market. Cost is determined by the first-in-first-out (FIFO) method. Cost includes
the direct costs of materials, labor and indirect costs (variable and fixed). Provision is made for obsolete and slow-
moving raw materials, finished goods, spare parts and other supplies based on their expected future use and realizable
value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs for sale and distribution.
Assets and liabilities held for sale
Non-current assets are classified as held for sale if their carrying amounts will be principally recovered through a sale
transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable,
with the sale expected to be completed within one year from the date of classification, and the non-current asset (or the
disposal group) is available for immediate sale in its present condition subject only to terms that are usual and
customary for sales of such asset (or disposal group). When the Group is committed to a sale plan involving loss of
control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria
described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary
after the sale.
Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amounts
and fair value less costs to sell.
Employee benefits
Pension plans
The present value of a defined benefit obligation and the related current service cost (and past service cost, where
applicable) for defined benefit pension plans are determined on an actuarial basis using the projected unit credit
method.
The net defined benefit liability that the Group recognizes in the statement of financial position represents the present
value of the defined benefit obligation reduced by the fair value of any plan assets (deficit). In case of a surplus, a net
defined benefit asset is recognized at the lower of the surplus and the asset ceiling.
Remeasurements of the net defined benefit liability/asset (that comprise: a) actuarial gains and losses, b) return on plan
assets, excluding amounts included in net interest on the net defined benefit liability/asset, and c) any change in the
effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability/asset) are
recognized directly in other comprehensive income without reclassification to profit or loss in subsequent years.
Past service cost resulting from a plan amendment (the introduction or withdrawal of, or changes to, a defined benefit
plan) or a curtailment (a significant reduction in the number of employees covered by a plan) and gain or loss on
settlements (a transaction that eliminates all further legal or constructive obligations for part or all of the benefits) are
recognized in profit or loss in the period in which they occur (or, in case of past service costs, when the entity
recognizes related restructuring costs or termination benefits, if earlier).
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset and is recognized as
Financial income/(expenses) in profit or loss. Current service cost and all other costs and income arising from the
measurement of pension plan provisions are allocated to costs by function in profit or loss.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    165
Post-employment plans other than pensions
The Group provides certain post-employment defined benefits, mainly healthcare plans. The method of accounting and
the frequency of valuations are similar to those used for defined benefit pension plans.
Defined contribution plans
Costs arising from defined contribution plans are recognized as an expense in profit or loss as incurred.
Share-based compensation plans
The Group provides additional benefits to certain members of senior management and employees through equity
compensation plans (stock option plans and stock grants). In accordance with IFRS 2 – Share-based Payment, these
plans represent a component of recipient remuneration. The compensation expense, corresponding to the fair value of
the instruments at the grant date, is recognized in profit or loss on a straight-line basis over the requisite service period
for each separately vesting portion of an award, with the offsetting credit recognized directly in equity. Any subsequent
changes to fair value do not have any effect on the initial measurement.
Provisions
The Group records provisions when it has an obligation, legal or constructive, to a third party, as a result from a past
event, when it is probable that an outflow of Group resources will be required to satisfy the obligation and when a
reliable estimate of the amount can be made.
Changes in estimates are reflected in profit or loss in the period in which the change occurs.
Treasury shares
Treasury shares are presented as a deduction from equity. The original cost of treasury shares and the proceeds of any
subsequent sale are presented as movements in equity.
Revenue recognition
Revenue is recognized when control of the vehicles, equipment, services or parts has been transferred and the Group’s
performance obligations to the customers have been satisfied. Revenue is measured as the amount of consideration
the Group expects to receive in exchange for transferring goods or providing services.
The timing of when the Group transfers the goods or services to the customer may differ from the timing of the
customer’s payment.
Revenues are stated net of discounts, allowances, settlement discounts and rebates, as well as costs for sales
incentive programs, which are determined on the basis of historical costs, country by country, and charged against
profit for the period in which the corresponding sales are recognized.
The Group also enters into contracts with multiple performance obligations. For these contracts, the Group allocates
revenue from the transaction price to the distinct goods and services in the contract on a relative standalone selling
price basis. To the extent the Group sells the goods or services separately in the same market, the standalone selling
price is the observable price at which the Group sells the goods or services separately. For all other goods or services,
the Group estimates the standalone selling price considering all information, reasonably available (including market
conditions, entity-specific factors and information about the customer or class of customer).
Sales of goods
The Group has determined that the customers from the sale of vehicles, equipment and parts are generally dealers,
distributors and retail customers.
Transfer of control, and thus related revenue recognition, generally corresponds to when the vehicles, equipment and
parts are made available to the customer. Therefore, the Group recognizes revenue at a point in time, when control is
transferred to the customer at a sale price that the Group expects to receive.
For all sales, no significant uncertainty exists surrounding the purchaser’s obligation to pay for vehicles, equipment and
parts. The Group records appropriate allowance for credit losses and anticipated returns as required. Fixed payment
schedules exist for all sales, but payment terms vary by geographic market and product line.
The cost of incentives, if any, are estimated at the inception of a contract at the amount that is expected to be paid and
is recognized as a reduction to revenue at the time of the sale. If a vehicle or equipment contract transaction has
multiple performance obligations, the cost of incentives is allocated entirely to vehicle or equipment as the intent of the
incentives is to encourage sales of vehicles or equipment. If the estimate of the incentive changes following the sale to
the customer, the change in estimate is recognized as an adjustment to revenue in the period of the change. CNH
Industrial grants certain sales incentives to support sales of its products to retail customers. At the later of the time of
CNH Industrial  Consolidated Financial Statements at December 31, 2021    166
sale or the time an incentive is announced to dealers, CNH Industrial records the estimated impact of sales allowances
in the form of dealer and customer incentives as a reduction of revenue. Subsequent adjustments to sales incentive
programs related to products/vehicles previously sold are recognized as an adjustment to revenues in the period the
adjustment is determinable. The determination of sales allowances requires management to make estimates based
upon historical data, estimated future market demand for products, field inventory levels, announced incentive
programs, competitive pricing and interest rates, among other things.
With reference to the sales to dealers accompanied by “floor plan” agreements under which the Group offers wholesale
financing including “interest-free” financing for a specified period of time (which also vary by geographic market and
product line), two separate performance obligations exist. The first performance obligation consists of the sale of the
equipment/vehicle from Industrial Activities to the dealer. Concurrent with the sale of the equipment/vehicle, Industrial
Activities offers to the dealer wholesale financing through loans extended by Financial Services. Industrial Activities
compensates Financial Services for the cost of the interest-free period. This cost has been determined to represent a
cash sale incentive on the initial sale of the good, and therefore it should be recognized upfront as a reduction of net
sales of Industrial Activities. The second performance obligation consists of a credit facility extended by Financial
Services to the dealer. The remuneration for this performance obligation is represented by the compensation received
from Industrial Activities for the period of the interest-free financing and by the interest charged to dealer for the
remaining period. This remuneration is recognized by Financial Services over the period of the outstanding exposure.
For parts sales, when the Group provides its customers with a right to return a transferred product, revenue and
corresponding cost of sales are recognized for parts that are not expected to be returned. The expected returns are
estimated based on an analysis of historical experience. The portion of revenue (and corresponding cost of sales)
related to the parts that are expected to be returned is recognized at the end of the return period. The amount received
or receivable that is expected to be returned is recognized as a refund liability, representing the obligation to return the
customer’s consideration. Furthermore, at the time of the initial sale, CNH Industrial recognizes a return asset for the
right to recover the goods returned by the customer. This asset is initially measured at the former carrying amount of
the inventory. At each reporting date, both the refund liability and the return asset are remeasured to record for any
revisions to the expected level of returns, as well as any decreases in the value of the returned products.
Rendering of services
Revenues from services provided are primarily comprised of extended warranties and maintenance and repair services
and are recognized over the contract period when the costs are incurred, that is when the claims are charged by the
dealer. Amounts invoiced to customers for which CNH Industrial receives consideration before the performance is
satisfied are recognized as contract liability. These services are either separately-priced or included in the selling price
of the vehicle. In the second case, revenue for the services is allocated based on the estimated stand-alone selling
price. In the event that the costs expected to be incurred to satisfy the remaining performance obligations exceed the
transaction price, an estimated contract loss is recognized.
Shipping and other transportation activities performed as an agent are recognized on a net basis, which is netting the
related freight cost against the freight revenue.
Rents and other income on assets sold with a buy-back commitment
Commercial and Specialty Vehicles enters into transactions for the sale of vehicles to some customers with an
obligation to repurchase (“buy-back commitment”) the vehicles at the end of a period (“buy-back period”) at the
customer’s request. For these types of arrangements, at inception, CNH Industrial assesses whether a significant
economic incentive exists for the customer to exercise the option.
If CNH Industrial determines that a significant economic incentive exists for the customer to exercise the buy-back
option, the transaction is accounted for as an operating lease. In such case, vehicles are accounted for as Property,
plant and equipment because the agreements typically have a long-term buy-back period. The difference between the
carrying value (corresponding to the manufacturing cost) and the estimated resale value (net of refurbishing costs) at
the end of the buy-back period is depreciated on a straight-line basis over the same period. The initial sale price
received is recognized in “Other current liabilities” and is comprised of the repurchase value of the vehicle, and the
rents to be recognized in the future recorded as contract liability. These rents are determined at the inception of the
contract as the difference between the initial sale price and the repurchase price and are recognized as revenue on a
straight-line basis over the term of the agreement. At the end of the agreement term, upon exercise of the option, the
used vehicles are reclassified from Property, plant and equipment to Inventories. The proceeds from the sale of such
vehicles are recognized as Revenues.
If CNH Industrial determines that a significant economic incentive does not exist for the customer to exercise the buy-
back option, the transaction is treated as a sale with a variable consideration whose variable component is the buy-
back provision accrual. The buy-back provision accrual is the difference between the repurchase price and the
estimated market value of the used vehicle at the end of the buy-back period and is recorded only when the repurchase
price is greater than the estimated market value of the used vehicle. The buy-back provision accrual is estimated and
CNH Industrial  Consolidated Financial Statements at December 31, 2021    167
recognized as a reduction of revenues at the time of the sale. Any subsequent change following such periodic
reassessment is recognized as a reduction of revenues at that time.
Finance and interest income
Finance and interest income on retail and other notes receivables and finance leases is recorded using the effective
yield method. Deferred costs on the origination of financing receivables are recognized as a reduction in finance
revenue over the expected lives of the receivables using the effective yield method. When a financial asset becomes
credit-impaired and is, therefore, regarded as “Stage 3”, CNH Industrial calculates interest income by applying the
effective interest rate to the net amortized cost of the financial asset. If the financial asset cures and is no longer credit-
impaired, CNH Industrial reverts to calculating interest income on a gross basis. Receivables are considered past due if
the required principal and interest payments have not been received as of the date such payments were due.
Delinquency is reported on receivables greater than 30 days past due. Charge-offs of principal amounts of receivables
outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will
not be collected.
Rents and other income on operating leases
Income from operating leases is recognized over the term of the lease on a straight-line basis.
Cost of sales
Cost of sales comprises the cost of manufacturing products and the acquisition cost of purchased merchandise which
has been sold. It includes all directly attributable material and production costs and all production overheads. These
include the depreciation of property, plant and equipment and the amortization of intangible assets relating to
production and write-downs of inventories. Cost of sales also includes freight and insurance costs relating to deliveries
to dealers and agency fees in the case of direct sales.
Cost of sales also includes provisions made to cover the estimated cost of product warranties at the time of sale to
dealer networks or to the end customer.
Expenses which are directly attributable to the Financial Services business, including the interest expense related to the
financing of Financial Services business as a whole and charges for risk provisions and write-downs, are reported in
cost of sales.
Research and development costs
This item includes research costs, development costs not eligible for capitalization and the amortization of development
costs recognized as assets in accordance with IAS 38.
Government grants
Government grants are recognized in the financial statements when there is reasonable assurance that the company
concerned will comply with the conditions for receiving such grants and that the grants themselves will be received.
Government grants are recognized as income over the periods necessary to match them with the related costs which
they are intended to offset.
The benefit of a government loan at a below-market rate of interest is treated as a government grant. The benefit of the
below-market rate of interest is measured as the difference between the initial carrying amount of the loan (fair value
plus transaction costs) and the proceeds received, and is accounted for in accordance with the policies already used for
the recognition of government grants.
Income taxes
Income taxes include all taxes based upon the taxable profits of the Group. Taxes on income are recognized in profit or
loss except to the extent they relate to items recognized directly in equity or in other comprehensive income, in which
case the related tax effects are recognized directly in equity or in other comprehensive income. Provisions for income
taxes arising on the distribution of a subsidiary’s undistributed profits are only made where there is a current intention to
distribute such profits. Deferred taxes are provided using the full liability method. They are calculated on all temporary
differences between the tax base of an asset or liability and the carrying amounts in the Consolidated Financial
Statements, except for those arising from non-tax-deductible goodwill and for those related to investments in
subsidiaries where it is possible to control the reversal of the differences and reversal will not take place in the
foreseeable future. Deferred tax assets relating to the carry-forward of unused tax losses and tax credits, as well as
those arising from temporary differences, are recognized to the extent it is probable future profits will be available
against which they can be utilized. Current and deferred income tax assets and liabilities are offset when the income
taxes are levied by the same taxation authority and where there is a legally enforceable right of offset. Deferred tax
assets and liabilities are measured at the enacted or substantively enacted tax rates of the relevant tax jurisdictions that
CNH Industrial  Consolidated Financial Statements at December 31, 2021    168
are expected to apply to taxable income during the period or periods in which the temporary differences reverse. The
Group recognizes tax liabilities for uncertain tax treatments when tax risks arising from positions taken by the Group are
considered probable, assuming the tax authorities have full knowledge of all relevant information when making their
examination. In doing so, the Group evaluates whether to consider each uncertain tax treatment separately or jointly
consider multiple uncertain tax treatments, using the approach that better predicts the resolution of the uncertainty. The
liabilities recognized correspond to the amounts expected to be paid. Other taxes not based on taxable profits, such as
property taxes and taxes on capital, are included in operating expenses.
Dividends
Dividends payable by the Group are reported as a change in equity in the period in which they are approved by the
Company’s shareholders at the Annual General Meeting of Shareholders (“AGM”).
Earnings per share
Basic earnings per share are calculated by dividing the Profit/(loss) attributable to owners of the parent by the weighted
average number of common shares outstanding during the year. Special voting shares are not included in the earnings
per share calculation as they are not eligible for dividends and have only limited economic rights. For diluted earnings
per share, the weighted average number of common shares outstanding is adjusted assuming conversion of dilutive
potential common shares.
Use of estimates
These Consolidated Financial Statements have been prepared in accordance with EU-IFRS which requires CNH
Industrial to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities, and reported amounts of income and expenses. The estimates and
related assumptions are based on available information at the date of preparation of the financial statements, historical
experience and other relevant factors. Actual results may differ from the estimates.
Particularly in light of the current economic uncertainty, developments may occur which may differ from CNH Industrial's
estimates and assumptions, and therefore might require significant adjustments to the carrying amounts of certain
items, which as of the date of these Consolidated Financial Statements cannot be accurately estimated or predicted.
The principal items affected by estimates are the allowances for doubtful accounts receivable and inventories, non-
current assets (tangible and intangible assets), the residual values of vehicles leased out under operating lease
arrangements or sold with buy-back commitments, sales allowances, product warranties, pension and other post-
employment benefits, deferred tax assets and contingent liabilities.
Estimates and assumptions are reviewed periodically and the effects of any changes are recognized in the period in
which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if
the revision affects both current and future periods.
The following are the critical judgments and the key assumptions concerning the future that CNH Industrial has made in
the process of applying its accounting policies and that may have the most significant effect on the amounts recognized
in its Consolidated Financial Statements or that represent a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year.
Allowance for doubtful accounts
The allowance for doubtful accounts for trade receivables and contract assets reflects CNH Industrial’s estimate of
expected lifetime credit losses, and it is measured at an amount equal to the present value of the cash shortfalls over
the expected life of the financial asset.
The allowance for doubtful accounts for receivables from financing activities reflects management’s estimate of forward
looking expected credit losses (“ECL”) in the wholesale and retail credit portfolio. This requires considerable judgement
about how changes in economic factors affect ECLs, which is determined on a probability-weighted basis. The ECL
model applies to financial assets accounted for at amortized cost and at fair value through other comprehensive
income, lease receivables, and certain loan commitments and financial guarantee contracts. The loss allowances will
be measured on either of the following bases:
▪12 month ECLs: these are ECLs that result from possible default events within the 12 months after the reporting date;
and
▪lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial
instrument.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    169
Refer to Note 17 “Current receivables and Other current financial assets” for additional details on the calculation of
allowance for credit losses.
Allowance for obsolete and slow-moving inventory
The allowance for obsolete and slow-moving inventory reflects management’s estimate of the expected loss in value,
and has been determined on the basis of past experience and historical and expected future trends in the used vehicle
market. A worsening of the economic and financial situation could cause a further deterioration in conditions in the used
vehicle market compared to that taken into consideration in calculating the allowances recognized in the financial
statements.
Recoverability of non-current assets (including goodwill)
Non-current assets include property, plant and equipment, intangible assets (including goodwill), investments and other
non-current financial assets. The Group reviews the carrying value of non-current assets held and used and that of
assets to be disposed of when events and circumstances warrant such a review. For goodwill and intangible assets with
indefinite useful lives such analysis is carried out at least annually.
The analysis of the recoverable amount of non-current assets other than goodwill is usually performed using estimates
of future expected cash flows from the use or disposal of the asset and an appropriate discount rate in order to
calculate present value. If the carrying amount is deemed to be impaired, the Group recognizes an impairment loss for
the amount by which the carrying amount of the asset exceeds its estimated recoverable amount from use or disposal
determined by reference to the cash flows included in its most recent business forecasts.
In the second quarter of 2020, CNH Industrial performed a quantitative impairment assessment for the Construction
cash-generating unit which resulted in a recoverable amount below carrying value. Based on the assessment, CNH
Industrial recognized a goodwill impairment loss of $576 million, representing the total impairment of Construction
goodwill. Goodwill impairment test is performed at the cash generating unit level, the segment level. The recoverable
amount of the cash generating units is determined using multiple valuation methodologies, relying largely on an income
approach (based on the present value of estimated future cash flows) but also incorporating value indicators from a
market approach. The carrying amount of a cash generating unit is then compared to the recoverable amount to
determine if there is an impairment loss. Further details on the goodwill impairment test are included in Note 12.
In view of the present economic and financial situation, the Group made the following considerations in respect of its
future prospects:
▪when carrying out impairment testing of tangible and intangible assets, the Group took into account its expected
performance in the upcoming years. CNH Industrial extended such projections for subsequent years to appropriately
cover the period of analysis;
▪should the assumptions underlying the forecast deteriorate further, the following is noted: the Group’s tangible and
intangible assets with a finite useful life (mostly development costs) relate to models or products with high
technological content in line with the latest environmental laws and regulations, which consequently makes them
competitive in the current economic environment, especially in the more mature economies in which particular
attention is placed on the eco-sustainability of those types of products. Consequently, despite the fact that the capital
goods sector is one of the markets which could be most affected by a potential crisis in the immediate term,
management considers that is highly probable that the life cycle of these products can be lengthened to extend over
the period of time involved in a slower economic recovery, allowing the Group to achieve sufficient cash flows to
cover the investments, although over a longer period of time.
Residual values of assets leased out under operating lease arrangements or sold with a buy-back commitment
CNH Industrial records assets rented to customers or leased to them under operating lease as tangible assets.
Furthermore, new vehicle sales with a buy-back commitment are not recognized as sales at the time of delivery but are
accounted for as operating lease if it is probable that the vehicle will be bought back. Income from such operating lease
is recognized on a straight-line basis over the term of the lease. Depreciation expense for assets subject to operating
lease is recognized on a straight-line basis over the lease term in amounts necessary to reduce the cost of an asset to
its estimated residual value at the end of the lease term. The estimated residual value of leased assets is calculated at
the lease commencement date on the basis of published industry information and historical experience and are
reviewed quarterly. Realization of the residual values is dependent on CNH Industrial’s future ability to market the
assets under the then-prevailing market conditions. The Group continually evaluates whether events and circumstances
have occurred which impact the estimated residual values of the assets on operating lease. The used vehicle market
was carefully monitored to ensure that write-downs were properly determined. However, it cannot be excluded that
additional write-downs may be required if market conditions should deteriorate further.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    170
Sales allowances
CNH Industrial grants certain sales incentives to support sales of its products to retail customers. At the later of the time
of sale or the time an incentive is announced to dealers, CNH Industrial records the estimated impact of sales
allowances in the form of dealer and customer incentives as a reduction of revenue. The expense for new programs is
accrued at the inception of the program. The amounts of incentives to be paid are estimated. The determination of sales
allowances requires management to make estimates based upon historical data, estimated future market demand for
products, field inventory levels, announced incentive programs, competitive pricing and interest rates, among other
things.
Product warranties
CNH Industrial makes provisions for estimated expenses related to product warranties at the time products are sold.
Management establishes these estimates based on historical information on the nature, frequency and average cost of
warranty claims. The Group seeks to improve vehicle quality and minimize warranty expenses arising from claims.
Warranty costs may differ from those estimated if actual claim rates are higher or lower than historical rates.
Pension and other post-employment benefits
Group companies sponsor pension and other post-employment benefits in various countries, mainly in the United
States, the United Kingdom and Germany.
Employee benefit liabilities, related assets, costs and net interest connected with them are measured on an actuarial
basis which requires the use of estimates and assumptions to determine the net defined benefit liability/asset for the
Group. The actuarial method takes into consideration parameters of a financial nature such as the discount rate, the
rate for expected return on plan assets, the rate of salary increases and the healthcare costs trend rate and takes into
consideration the likelihood of potential future events by using certain demographic parameters such as mortality rates
and dismissal or retirement rates. The discount rates selected are based on yields or yield curves of high quality
corporate bonds in the relevant market. Trends in healthcare costs are developed on the basis of historical experience,
the near-term outlook for costs and likely long-term trends. Rates of salary increases reflect the Group’s long-term
actual expectations in the reference market and inflation trends. Changes in any of these assumptions may have an
effect on future contributions to the plans.
The effects resulting from revising the estimates for the above parameters (“re-measurements”) are recognized directly
in other comprehensive income without reclassification to profit or loss in subsequent years: refer to “Employee
benefits” section above for further details.
Significant future changes in the yields of corporate bonds, other actuarial assumptions referred to above and returns
on plan assets may significantly impact the net liability/asset.
Recognition of deferred tax assets
At December 31, 2021, CNH Industrial had net deferred tax assets, including tax loss carry forwards, of $538 million, of
which $383 million are not recognized in the financial statements. The corresponding totals at December 31, 2020 were
$1,699 million and $841 million. Management has recognized deferred tax assets it believes are probable to be
realized. In determining the amount of deferred tax assets probable to be realized management has considered figures
from budgets and plans consistent with those used for other purposes within CNH Industrial, for example impairment
testing, as discussed in the paragraph “Recoverability of non-current assets (including goodwill)” above. CNH Industrial
believes the amount of recognized deferred tax assets is appropriate, despite the risk of actual future results potentially
being less than results included in these forecasts, considering many of the recognized net deferred tax assets relate to
temporary differences and tax losses which, to a significant extent, may be recovered over an extended time period, but
do not expire based on currently enacted tax law. As in all financial reporting periods, CNH Industrial assessed the
realizability of its various deferred tax assets, which related to multiple tax jurisdictions in all regions of the world. During
2021, CNH Industrial recognized substantially all the deferred tax assets related to the agricultural and construction
equipment operations in Brazil, resulting in a $142 million non-cash tax benefit, as those operations had consistently
returned to sustained profitability in recent years, with that trend anticipated to continue for the foreseeable future. Also
during 2021, multiple of CNH Industrial’s primary European jurisdictions returned to pre-tax profitability, which
represented a substantial improvement in results as compared to 2020.  Accordingly, Management concluded it was
appropriate to continue recognizing the deferred tax assets related to those jurisdictions.
Contingent liabilities
CNH Industrial is the subject of legal proceedings and tax issues covering a range of matters, which are pending in
various jurisdictions. Due to the uncertainty inherent in such matters, it is difficult to predict the final outcome of such
matters. The cases and claims against CNH Industrial often raise difficult and complex factual and legal issues, which
CNH Industrial  Consolidated Financial Statements at December 31, 2021    171
are subject to many uncertainties, including but not limited to the facts and circumstances of each particular case and
claim, the jurisdiction and the differences in applicable law. In the normal course of business management consults with
legal counsel and certain other experts on matters related to litigation and taxes. The Group accrues a liability when it is
determined that an adverse outcome is probable and the amount of the loss can be reasonably estimated. In the event
an adverse outcome is possible or an estimate is not determinable, the matter is disclosed.
New standards and amendments effective from January 1, 2021
On August 27, 2020 the IASB issued Interest Rate Benchmark Reform—Phase 2 (Amendments to IFRS 9, IAS 39,
IFRS 7, IFRS 4 and IFRS 16), which addresses the accounting for changes in the basis for determining contractual
cash flows as a consequence of IBOR reform. Furthermore, the amendments include additional temporary exceptions
from applying specific hedge accounting requirements and additional disclosures. The amendments are effective
retrospectively for annual reporting periods beginning on or after January 1, 2021. These amendments had no impact
on these Consolidated Financial Statements. The Group intends to apply these amendments in the future periods if
they become applicable.
Accounting standards, amendments and interpretations not yet applicable and not early adopted by the Group
The main accounting standards, amendments and interpretations not yet applicable and not early adopted by the Group
are the following:
▪On May 14, 2020 the IASB issued Property, Plant and Equipment—Proceeds before Intended Use (Amendments to
IAS 16) to prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling
items produced before that asset is available for use and clarifying the meaning of "testing whether an asset is
functioning properly". These amendments are effective retrospectively from January 1, 2022.
▪On May 14, 2020, the IASB issued Onerous Contracts—Cost of Fulfilling a Contract (Amendments to IAS 37)
specifying that the cost of fulfilling a contract comprises the costs that relate directly to the contract, including both the
incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts.
These amendments are effective retrospectively from January 1, 2022.
▪On May 14, 2020 the IASB issued the Annual Improvements to IFRS 2018-2020 Cycle. The most important topics
addressed in these amendments are: (i) on IFRS 9 - Financial Instruments clarifying which fees an entity includes
when it applies the "10 per cent" test in assessing whether to derecognize a financial liability; and (ii) on IFRS 16 -
Leases removing the illustration of the reimbursement of leasehold improvements. These improvements are effective
from January 1, 2022.
Furthermore, at the date of these Consolidated Financial Statements, the European Union has not yet completed its
endorsement process for the amendments and improvements, reported below.
The Group is currently evaluating the impact of the adoption of these amendments and improvements on its
Consolidated Financial Statements or disclosures:
▪On February 12, 2021 the IASB issued the Amendments to IAS 1 Presentation of Financial Statements and IFRS
Practice Statement 2: Disclosure of Accounting policies, requiring to disclose the material accounting policy
information rather than the significant accounting policies. Furthermore, the amendments to IFRS Practice Statement
2 provide guidance on how to apply the concept of materiality to accounting policy disclosures. This amendment is
effective from January 1, 2023.
▪On February 12, 2021 the IASB issued the Amendments to IAS 8 Accounting policies, Changes in Accounting
Estimates and Errors: Definition of Accounting Estimates. The amendments clarify how to distinguish changes in
accounting policies (generally also applied retrospectively to past transactions and other past events) from changes
in accounting estimates (applied prospectively only to future transactions and other future events). This amendment
is effective from January 1, 2023.
▪On May 7, 2021 the IASB issued Deferred Tax related to Assets and Liabilities arising from a Single Transaction
(Amendments to IAS 12), which specifies how companies should account for deferred tax on transactions such as
leases and decommissioning obligations. The amendments clarify that no exemption applies on such transactions
and that companies are required to recognize deferred tax when they recognize the related assets or liabilities for the
first time. The amendments are effective for annual reporting periods beginning on or after January 1, 2023, with
early application permitted.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    172
SCOPE OF CONSOLIDATION
The Consolidated Financial Statements of the Group as of December 31, 2021 include CNH Industrial N.V. and 202
consolidated subsidiaries over which CNH Industrial N.V., directly or indirectly, has control. A total of 173 subsidiaries
were consolidated at December 31, 2020.
Excluded from consolidation are 13 subsidiaries that are either dormant or generate a negligible volume of business:
their proportion of the Group’s assets, liabilities, financial position and earnings is immaterial. In particular, 13 of such
subsidiaries are accounted for using the cost method, and represent in aggregate less than 0.01 percent of Group
revenues, equity and total assets.
Discontinued Operations - Iveco Group Business
This section provides details of the contents of the items relating to Discontinued Operations as reported in the
Consolidated Income Statement, Consolidated Statement of Financial Position and Consolidated Statement of Cash
Flows.
From a methodological standpoint it should be noted that with reference to the presentation required by IFRS 5,
Discontinued Operations are included in the scope of consolidation of CNH Industrial Group at December 31, 2021 and
accordingly the total balances relating to the whole Group have been determined by making the appropriate
eliminations of transactions and balances between Continuing Operations and Discontinued Operations.
More specifically, the approach was as follows:
▪in order to present the financial effects of a Discontinued Operation, revenues and expenses arising from
intercompany transactions were eliminated except for those revenues and expenses that are considered to continue
after the demerger. Eliminations from transactions between Continuing and Discontinued Operations are allocated in
full to Discontinued Operations. However, no profit or loss is recognized for intercompany transactions within the
Consolidated Income Statements. The amounts of income statement items included in Discontinued Operations is
detailed in the following paragraph.
▪intercompany transactions between Continuing and Discontinued Operations have been eliminated in the
consolidated statement of financial position. The net balance between Assets held for distribution and Liabilities held
for distribution represents the net equity of the Discontinued Operations. This amount corresponds to the reduction in
the total equity of CNH Industrial due to the Demerger that occurred on January 1, 2022.
▪all cash flows from Discontinued Operations are reported in the appropriate items for operating activities, investing
activities and financing activities in the Statement of Cash Flows. The cash flows represent those arising from
transactions with third parties.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    173
Assets and liabilities held for distribution
Assets and liabilities classified as Discontinued Operations at December 31, 2021 may be analysed as follows:
($ million)
At December 31, 2021
ASSETS HELD FOR DISTRIBUTION
Intangible assets
1,488
Property, plant and equipment
3,460
Investments and other non-current financial assets
660
Leased assets
65
Defined benefit plan assets
17
Deferred tax assets
731
Inventories
3,003
Trade receivables
165
Receivables from financing activities
3,296
Other receivables and assets
568
Cash and cash equivalents
1,017
Assets held for sale
7
TOTAL ASSETS HELD FOR DISTRIBUTION
14,477
LIABILITIES HELD FOR DISTRIBUTION
Provisions
2,187
Debt
2,566
Trade payables
3,364
Deferred tax liabilities
12
Other payables and liabilities
3,730
TOTAL LIABILITIES HELD FOR DISTRIBUTION
11,859
Profit (Loss) from Discontinued Operations, net of tax
Details of income statement items included in Discontinued Operations, after the eliminations, for the years ended
December 31, 2021 and 2020 are as follows:
($ million)
2021
2020
Net revenues
14,007
11,288
Cost of sales
11,914
10,204
Selling, general and administrative costs
975
805
Research and development costs
569
498
Result from investments:
31
(49)
Share of the profit/(loss) of investees accounted for using the equity method
31
(49)
Gains/(losses) on the disposal of investments
10
—
Restructuring costs
42
37
Other income/(expenses)
(199)
(125)
Financial income/(expenses)
(136)
(128)
PROFIT/(LOSS) BEFORE TAXES
213
(558)
Income tax (expense) benefit
(122)
133
PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
91
(425)
PROFIT/(LOSS) FOR THE PERIOD ATTRIBUTABLE TO:
Owners of the parent
63
(466)
Non-controlling interests
28
41
CNH Industrial  Consolidated Financial Statements at December 31, 2021    174
Cash Flows from Discontinued Operations
Details of cash flows from Discontinued Operations are as follows:
($ million)
2021
2020
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES:
Profit/(loss)
91
(425)
Amortization and depreciation (net of vehicles sold under buy-back commitments and operating
leases)
670
662
(Gains)/losses on disposal of property plant and equipment and intangible assets (net of vehicles 
sold under buy-back commitments) and other non-cash items
1
109
Dividends received
20
1
Change in provisions
149
122
Change in deferred income taxes
51
(182)
Change in items due to buy-back commitments
58
169
Change in operating lease items
3
(34)
Change in working capital
(405)
215
TOTAL
638
637
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES:
Investments in:
Property, plant and equipment and intangible assets (net of vehicles sold under buy-back
commitments and operating leases)
(668)
(458)
Consolidated subsidiaries, net of cash acquired
(54)
(153)
Proceeds from the sale of non-current assets (net of vehicles sold under buy-back commitments)
23
3
Net change in receivables from financing activities
(140)
246
Change in other current financial assets
32
(32)
Other changes
686
361
TOTAL
(121)
(33)
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES:
Net change in other financial payables and derivative assets/liabilities
(104)
(456)
Purchase of ownership interests in subsidiaries
—
(9)
TOTAL
(104)
(465)
BUSINESS COMBINATIONS
Acquisition of Raven Industries
On November 30, 2021, CNH Industrial completed its previously announced acquisition of Raven Industries, Inc.
("Raven"), a U.S.-based leader in precision agriculture technology. CNH Industrial acquired 100% of the capital stock of
Raven for $58 per share funded with available cash on hand. Cash consideration paid to Raven shareholders and
Raven equity award holders totaled $2.1 billion.
Raven, based in Sioux Falls, South Dakota, included three business divisions: Applied Technology, Engineered Films
and Aerostar. The Applied Technologies division offers precision agricultural technologies in the areas of applications
controls, guidance and steering, field computers, boom controls, cloud services and logistics, and injection support. The
acquisition enhances CNH Industrial's precision farming portfolio and aligns with the Company's digital transformation
strategy.
The acquisition of Raven has been accounted for as a business combination using the acquisition method of
accounting, in accordance with IFRS 3 - Business Combinations.
The acquisition method requires, among other things, that assets acquired and liabilities assumed in a business
combination be recognized at their fair values as of the acquisition date. The valuation of assets acquired and liabilities
assumed was preliminary as of December 31, 2021 and will be finalized during the one-year measurement period from
the acquisition date, as provided for by IFRS 3. As a result, CNH Industrial recorded preliminary estimates for the fair
value of assets acquired and liabilities assumed as of the acquisition date, including $1.3 billion and $0.5 billion in
preliminary goodwill and intangible assets. The preliminary assessment will be updated as revised information becomes
available, including the development and review of the necessary valuations.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    175
Applied Technology is included in the Company’s Agriculture segment.
The Company is committed to a plan to sell the Engineered Films and Aerostar business divisions and has classified
them as held for sale as of December 31, 2021. For additional detail of items presented under Assets held for sale and
Liabilities held for sale as of December 31, 2021, see Note 20 "Assets and Liabilities held for sale".
The impact was not material to the 2021 Consolidated Income Statement.
Acquisition of Sampierana
On December 30, 2021, CNH Industrial completed its previously announced purchase of 90% capital stock of
Sampierana S.p.A ("Sampierana").
The acquisition of the remaining 10% of the capital stock in Sampierana will occur over the next four years through
predetermined mechanisms. Sampierana is an Italian company specializing in the development, manufacture and
commercialization of earthmoving machines, undercarriages and spare parts.
The acquisition of Sampierana has been accounted for as a business combination using the acquisition method of
accounting, in accordance with IFRS 3 - Business Combinations.
The acquisition method requires, among other things, that assets acquired and liabilities assumed in a business
combination be recognized at their fair values as of the acquisition date. The valuation of assets acquired and liabilities
assumed was preliminary as of December 31, 2021 and will be finalized during the one-year measurement period from
the acquisition date, as provided for by IFRS 3. As a result, CNH Industrial recorded preliminary estimates for the fair
value of assets acquired and liabilities assumed as of the acquisition date, including approximately $51 million in
preliminary goodwill. The preliminary assessment will be updated as revised information becomes available, including
the development and review of the necessary valuations.
Sampierana is included in the Company's Construction segment.
The impact was not material to the 2021 Consolidated Income Statement.
There were no significant business combinations in 2020.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    176
COMPOSITION AND PRINCIPAL CHANGES
Unless otherwise indicated, the information on the income statement in the following notes relates to Continuing
Operations.
1.Net revenues
The following table summarizes Net revenues for the years ended December 31, 2021 and 2020:
($ million)
2021
2020
Agriculture
14,754
10,916
Construction
3,081
2,170
Eliminations and Other
—
(11)
Total Industrial Activities
17,835
13,075
Financial Services
1,664
1,644
Eliminations and Other
(25)
(23)
Total Net revenues
19,474
14,696
The following table disaggregates Net revenues by major source for the years ended December 31, 2021 and 2020:
($ million)
2021
2020
Revenues from:
Sales of goods
17,816
13,059
Rendering of services
19
16
Revenues from sales of goods and services
17,835
13,075
Finance and interest income
856
891
Rents and other income on operating lease
783
730
Total Net revenues
19,474
14,696
During the years ended December 31, 2021 and 2020, revenues included $1 million and nil, respectively, relating to the
reversal of contract liabilities outstanding at the beginning of each period. Refer to Note 26 "Other current liabilities" for
additional details on contract liabilities.
As of December 31, 2021, the aggregate amount of the transaction price allocated to remaining performance
obligations related to extended warranties/maintenance and repair contracts was approximately $15 million (nil as of
December 31, 2020). As of December 31, 2021 CNH Industrial expects to recognize revenue on approximately 30%
and 89% of the remaining performance obligations over the next 12 and 36 months, respectively, with the remaining
recognized thereafter.
2.Cost of sales
Cost of sales amounted to $15,231 million in 2021 and to $12,287 million in 2020.
3.Selling, general and administrative costs
Selling, general and administrative costs amounted to $1,425 million in 2021, compared to $1,197 million recorded in
2020, as costs returned to more normal levels from the pandemic-affected low levels experienced last year.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    177
4.Research and development costs
In 2021, Research and development costs of $677 million ($634 million in 2020) comprise all the research and
development costs not recognized as assets in the year, amounting to $492 million ($340 million in 2020) and the
amortization of capitalized development costs of $185 million ($201 million in 2020). In 2020, Research and
development costs also included an impairment of capitalized development costs of $93 million in 2020 (nil in 2021).
During 2021, the Group capitalized new development costs of $154 million ($162 million in 2020).
5.Result from investments
This item mainly includes CNH Industrial’s share in the net profit or loss of the investees accounted for using the equity
method, as well as any impairment losses, reversal of impairment losses, accruals to the investment provision, and
dividend income. In 2021 and 2020, CNH Industrial’s share in the net profit or loss of the investees accounted for using
the equity method was a gain of $92 million and $68 million, respectively. In 2021, Result from investments also
included the positive impact of $13 million from the sale of investments by a joint venture accounted for under the equity
method.
6.Restructuring costs
CNH Industrial incurred restructuring costs of $36 million and $19 million in 2021 and 2020, respectively.
7.Other income/(expenses)
This item consists of miscellaneous costs which cannot be allocated to specific functional areas, such as accruals for
various provisions not attributable to other items of Cost of sales or Selling, general and administrative costs, net of
income arising from operations which is not attributable to the sale of goods and services. Other expenses were $124
million in 2021 and $82 million in 2020. In both periods, this item primarily included legal costs, indirect taxes and the
benefit cost for former employees. In 2021, this item also included a pre-tax gain of $95 million related to a healthcare
plan amendment in the U.S. occurred in the fourth quarter of 2021, $133 million separation costs in connection with the
demerger of the Iveco Group Business, $57 million for the transaction costs related to the acquisition of Raven
Industries, Inc., a gain of $12 million ($9 million after-tax) for a fair value adjustment of Monarch Tractor investment.
8.Financial income/(expenses)
The item “Financial income/(expenses)” is detailed as follows:
($ million)
2021
2020
Financial income (a)
47
59
Interest and other financial expenses (b)
180
158
Net (income)/expenses from derivative financial instruments at fair value through profit or
loss
128
(44)
Exchange rate differences from derivative financial instruments
(146)
(18)
Total interest and other financial expenses, net (income)/expenses from derivative
financial instruments and exchange differences (c)
(18)
(62)
Net financial income/(expenses) excluding Financial Services (a) - (b) + (c)
(151)
(161)
CNH Industrial  Consolidated Financial Statements at December 31, 2021    178
Interest earned and other financial income may be analyzed as follows:
($ million)
2021
2020
Interest income from banks
14
15
Interest and financial income from financial assets at amortized cost
6
8
Other interest income and financial income
27
36
Total Interest earned and other financial income
47
59
Interest cost and other financial expenses may be analyzed as follows:
($ million)
2021
2020
Interest expenses on bonds
(145)
(139)
Bank interest expenses
(3)
(8)
Interest expenses related to lease liabilities
(6)
(7)
Commission expenses
(2)
(3)
Other interest cost and other financial expenses
(24)
(1)
Total Interest cost and other financial expenses
(180)
(158)
In the year ended December 31, 2021, net financial expenses (excluding those of Financial Services) included $8
million related to repurchase of notes, as further described in Note 24 "Debt".
Capitalized borrowing costs amounted to $5 million and $8 million in 2021 and 2020, respectively.
Other interest cost and other financial expenses include, amongst other things, interest cost on asset-backed financing
and factoring cost.
9.Income tax (expense) benefit
CNH Industrial N.V. and its subsidiaries have substantial worldwide operations. The Company’s subsidiaries incur tax
obligations in the jurisdictions in which they operate. CNH Industrial's income tax expense (including Continuing and
Discontinued Operations) for the year ended December 31, 2021 was $358 million and consists almost entirely of
income taxes related to subsidiaries of CNH Industrial N.V.
Income taxes for the years ended December 31, 2021 and 2020 consisted of the following:
2021
2020
($ million)
Continuing
Operations
Discontinued
Operations
CNHI Pre-
Demerger
Continuing
Operations
Discontinued
Operations
CNHI Pre-
Demerger
Current taxes
(523)
(96)
(619)
(168)
(70)
(238)
Deferred taxes
269
(25)
244
56
216
272
Taxes relating to prior periods
18
(1)
17
34
(13)
21
Total Income tax (expense)
benefit
(236)
(122)
(358)
(78)
133
55
CNH Industrial N.V. is incorporated in the Netherlands but is a tax resident of the United Kingdom ("U.K."). The
reconciliation of the differences between the theoretical income taxes at the parent statutory rate and the total income
taxes is presented based on the weighted average of the U.K. statutory corporation tax rates in force over each of the
Company’s calendar year reporting periods of 19.00% in 2021 and 2020. A reconciliation of CNH Industrial’s income tax
expense for the years ended December 31, 2021 and 2020 is as follows:
($ million)
2021
2020
Theoretical Income tax (expense) benefit at the parent statutory rate
(406)
142
Foreign income taxed at different rates
(118)
5
Deferred tax assets not recognized and write-down
(18)
(96)
Italian IRAP taxes
(17)
(11)
Taxes relating to prior years
17
21
Recognition or use of previously unrecognized deferred tax assets
161
66
Change in tax rate or law
6
(3)
Goodwill impairment charge
—
(110)
Other
17
41
Total Income tax (expense) benefit
(358)
55
CNH Industrial  Consolidated Financial Statements at December 31, 2021    179
CNH Industrial’s effective tax rates (including both Continuing and Discontinued Operations) for 2021 and 2020 were
16.8% and 7.3%, respectively. The current period effective tax rate was positively impacted by $142 million related to
recognizing deferred tax assets associated with the Company’s agricultural and construction equipment operations in
Brazil, pre-tax earnings in other jurisdictions which allowed previously unrecognized deferred tax assets to be realized,
and the impact of additional tax credit and incentive benefits. These positive impacts were partly offset by the negative
impacts of the non-deductible expenses associated with the Demerger and the acquisition of Raven Industries, Inc. The
2020 effective tax rate reflected the inability to record tax benefits for pre-tax losses in certain jurisdictions and the
goodwill impairment charge related to the Company's Construction segment, the effects of which were partially offset by
the impact of net discrete tax benefits, which were primarily non-cash and included $44 million related to the recognition
of certain deferred tax assets, primarily based on the recent profit history and expected future profitability of
consolidated tax reporting groups in certain jurisdictions.
At December 31, 2021, undistributed earnings in certain subsidiaries outside the U.K. totaled approximately $9 billion
($7 billion at December 31, 2020) for which no deferred tax liability has been recorded because the remittance of
earnings from certain jurisdictions would incur no tax or such earnings are indefinitely reinvested. CNH Industrial has
determined the amount of unrecognized deferred tax liability relating to the $9 billion undistributed earnings is
approximately $264 million and related to withholding taxes and incremental local country income taxes in certain
jurisdictions. Further, CNH Industrial evaluated the undistributed earnings from its joint ventures in which it owned 50%
or less and recorded $11 million of deferred tax liabilities as of December 31, 2021. The repatriation of undistributed
earnings to the U.K. is generally exempt from U.K. income taxes.
CNH Industrial recognizes in its consolidated statement of financial position within Deferred tax assets, the amount of
deferred tax assets less the deferred tax liabilities of the individual consolidated legal entities, where these may be
offset. The components of net deferred tax assets at December 31, 2021 and 2020 are as follows:
($ million)
At December
31, 2020
Recognized
in income
statement
Charged
to equity
Translation
differences
and other
changes
Transfer to
Assets/
Liabilities held
for
distribution
At December
31, 2021
Deferred tax assets arising from:
Taxed provisions
859
121
1
(20)
(399)
562
Inventories
250
(62)
—
(57)
(101)
30
Taxed allowances for doubtful accounts
134
1
—
(8)
(60)
67
Provision for employee benefits
264
(11)
(21)
(30)
(61)
141
Write-downs of financial assets
(1)
(1)
(1)
3
(1)
(1)
Measurement of derivative financial
instruments
13
7
(14)
(9)
(8)
(11)
Other
498
158
(6)
8
(283)
375
Total
2,017
213
(41)
(113)
(913)
1,163
Deferred tax liabilities arising from:
Accelerated depreciation
(560)
23
—
(13)
58
(492)
Inventories
(126)
(23)
—
41
6
(102)
Intangible assets
(2)
(6)
—
(110)
(1)
(119)
Provision from employee benefits
(1)
(4)
2
5
(1)
1
Capitalization of development costs
(305)
22
—
43
52
(188)
Other
(101)
(24)
—
(73)
91
(107)
Total
(1,095)
(12)
2
(107)
205
(1,007)
Theoretical tax benefit arising from tax loss
carryforwards and tax credits
777
(55)
—
(70)
(270)
382
Adjustments for assets whose recoverability
is not probable
(841)
98
1
100
259
(383)
Total net deferred tax assets
858
244
(38)
(190)
(719)
155
($ million)
At December 31, 2021
At December 31, 2020
Deferred tax assets
367
1,061
Deferred tax liabilities
(212)
(203)
Net deferred tax assets
155
858
CNH Industrial  Consolidated Financial Statements at December 31, 2021    180
The decrease of $703 million in net deferred tax assets is mainly due to the net increase recognized in the income
statement of $244 million, which was largely driven by the recognition of certain deferred tax assets in Brazil, being
more than offset by the transfer to Assets/Liabilities held for distribution of $719 million.
The decision to recognize deferred tax assets is made for each legal entity in the Group by critically assessing whether
the conditions exist for the future realization of such assets on the basis of actual results, as well as updated strategic
plans and accompanying tax plans. For this reason, the total theoretical future tax benefits arising from deductible
temporary differences of $1,163 million at December 31, 2021 and of $2,017 million at December 31, 2020, and tax
loss carryforwards and tax credits of $382 million at December 31, 2021 and of $777 million at December 31, 2020,
were reduced by $383 million at December 31, 2021 and by $841 million at December 31, 2020.
Net deferred tax assets include $149 million at December 31, 2021 ($287 million at December 31, 2020) of tax benefits
arising from tax loss carryforwards and tax credits. At December 31, 2021, a further tax benefit of $233 million ($490
million at December 31, 2020) arising from tax loss carryforwards and tax credits has not been recognized.
Tax liabilities primarily include uncertain income tax amounts of $127 million and other tax payables.
The totals of deductible and taxable temporary differences and accumulated tax losses at December 31, 2021, together
with the amounts for which deferred tax assets have not been recognized, analyzed by estimated year of reversal or
expiry, are as follows:
Estimated year of reversal or expiry
($ million)
Total at
December 31,
2021
2022
2023
2024
2025
Beyond
2025
Unlimited/
indeterminable
Temporary differences and tax losses:
Deductible temporary differences
4,646
3,082
391
391
391
391
—
Taxable temporary differences
(3,400)
(348)
(763)
(763)
(763)
(763)
—
Tax losses and tax credits
2,352
90
60
38
23
989
1,152
Temporary differences and tax losses for which deferred
tax assets have not been recognized
(1,844)
(231)
(219)
(199)
(201)
(398)
(596)
Temporary differences and tax losses
1,754
2,593
(531)
(533)
(550)
219
556
CNH Industrial files income tax returns in multiple jurisdictions and is subject to examination by taxing authorities
throughout the world. CNH Industrial has open tax years from 2009 through 2020. Due to the global nature of CNH
Industrial business, transfer pricing disputes may arise and CNH Industrial may seek correlative relief through
competent authority processes. Further, as various ongoing audits are concluded, or as the applicable statutes of
limitations expire, it is possible CNH Industrial’s amount of unrecognized tax benefits could change during the next
twelve months. Those changes, however, are not expected to have a material impact on CNH Industrial’s results of
operations, statement of financial position, or cash flows.
10.Other information by nature of expense
The income statement includes personnel costs for $4,695 million in 2021 ($3,820 million in 2020) for CNH Industrial
Pre-Demerger.
An analysis of the average number of employees by category for CNH Industrial Pre-Demerger is as follows:
2021
2020
Managers
1,068
1,053
White-collar
23,874
23,705
Blue-collar
42,377
38,725
Average number of employees
67,319
63,483
CNH Industrial  Consolidated Financial Statements at December 31, 2021    181
11.Earnings per share
A reconciliation of basic and diluted earnings/(loss) per share is as follows:
2021
2020
Basic:
Profit/(loss) attributable to the owners of the parent
$ million
1,740
(750)
Weighted average common shares outstanding – basic
million
1,354
1,351
Basic earnings/(loss) per common share
$
1.28
(0.55)
Basic:
Profit/(loss) from Continuing Operations attributable to the
owners of the parent
$ million
1,677
(284)
Weighted average common shares outstanding – basic
million
1,354
1,351
Basic earnings/(loss) per common share from
Continuing Operations
$
1.24
(0.21)
Basic:
Profit/(loss) from Discontinued Operations attributable to the
owners of the parent
$ million
63
(466)
Weighted average common shares outstanding – basic
million
1,354
1,351
Basic earnings/(loss) per common share from
Discontinued Operations
$
0.05
(0.34)
Diluted:
Profit/(loss) attributable to the owners of the parent
$ million
1,740
(750)
Weighted average common shares outstanding – basic
million
1,354
1,351
Effect of dilutive potential common shares (when dilutive):
Stock compensation plans
million
7
—
Weighted average common shares outstanding – diluted
million
1,361
1,351
Diluted earnings/(loss) per common share
$
1.28
(0.55)
Diluted:
Profit/(loss) from Continuing Operations attributable to the
owners of the parent
$ million
1,677
(284)
Weighted average common shares outstanding – basic
million
1,354
1,351
Effect of dilutive potential common shares (when dilutive):
Stock compensation plans
million
7
—
Weighted average common shares outstanding – diluted
million
1,361
1,351
Diluted earnings/(loss) per common share from
Continuing Operations
$
1.23
(0.21)
Diluted:
Profit/(loss) from Discontinued Operations attributable to the
owners of the parent
$ million
63
(466)
Weighted average common shares outstanding – basic
million
1,354
1,351
Effect of dilutive potential common shares (when dilutive):
Stock compensation plans
million
7
—
Weighted average common shares outstanding – diluted
million
1,361
1,351
Diluted earnings/(loss) per common share from
Discontinued Operations
$
0.05
(0.34)
Basic earnings/(loss) per common share (“EPS”) is computed by dividing the Profit/(loss) for the period attributable to
the owners of the parent by the weighted average number of common shares outstanding during the period. Diluted
EPS reflects the potential dilution that could occur on the conversion of all dilutive potential common shares into
CNH Industrial  Consolidated Financial Statements at December 31, 2021    182
common shares. Stock options, restricted stock units, and performance stock units deriving from the CNH Industrial
share-based payment awards are considered dilutive potential common shares.
For the year ended December 31, 2021, no shares were outstanding and not included in the calculation of diluted
earnings per share as the impact of these shares would have been anti-dilutive.
For the year ended December 31, 2020, 2.9 million shares (consisting of share grants) were outstanding but not
included in the calculation of diluted earnings per share as the impact of these shares would have been anti-dilutive.
Shares acquired under the buy-back program are included in the issued shares of the Company and treasury stock, but
are not included in average shares outstanding when calculating earnings per share. For additional information on the
buy-back program, see Note 21 “Equity”.
12.Intangible assets
In 2021 and 2020, changes in the carrying amount of Intangible assets were as follows:
($ million)
Goodwill
Trademarks
and other
intangible
assets with
indefinite
useful lives
Development
costs
externally
acquired
Development
costs
internally
generated
Patents,
concessions
and licenses
Other
intangible
assets
externally
acquired
Advances
and
intangible
assets in
progress
externally
acquired
Total
Gross carrying amount Balance at 
December 31, 2019
3,154
293
1,694
5,307
944
1,142
33
12,567
Additions
—
—
120
244
9
97
23
493
Divestitures
—
—
—
(12)
(1)
(8)
—
(21)
Translation differences and other changes
(27)
—
160
256
76
64
(5)
524
Balance at December 31, 2020
3,127
293
1,974
5,795
1,028
1,295
51
13,563
Additions
—
—
192
283
17
126
44
662
Divestitures
—
—
—
(1,064)
(1)
(13)
—
(1,078)
Acquisitions(*)
1,376
—
—
—
—
519
—
1,895
Translation differences and other changes
(32)
—
(154)
(349)
(7)
(48)
(52)
(642)
Transfer to Assets held for distribution
(81)
—
(2,006)
(2,361)
(677)
(92)
(41)
(5,258)
Balance at December 31, 2021
4,390
293
6
2,304
360
1,787
2
9,142
Accumulated amortization and impairment
losses Balance at  December 31, 2019
606
60
1,404
3,337
892
746
—
7,045
Amortization
—
—
187
263
24
72
—
546
Impairment losses
576
—
—
96
—
90
—
762
Divestitures
—
—
—
(12)
(1)
(7)
—
(20)
Translation differences and other changes
1
—
149
152
53
43
—
398
Balance at December 31, 2020
1,183
60
1,740
3,836
968
944
—
8,731
Amortization
—
—
213
240
30
82
—
565
Impairment losses
—
—
19
—
—
8
—
27
Divestitures
—
—
—
(1,062)
(1)
(11)
—
(1,074)
Translation differences and other changes
(21)
—
(139)
(228)
(46)
(62)
—
(496)
Transfer to Assets held for distribution
(1)
—
(1,827)
(1,272)
(593)
(77)
—
(3,770)
Balance at December 31, 2021
1,161
60
6
1,514
358
884
—
3,983
Carrying amount at December 31, 2020
1,944
233
234
1,959
60
351
51
4,832
Carrying amount at December 31, 2021
3,229
233
—
790
2
903
2
5,159
(*) Increases in Goodwill refer to acquisitions discussed in section "Business combinations" above.
Foreign exchange losses were $170 million in 2021 (gains of $157 million in 2020).
CNH Industrial  Consolidated Financial Statements at December 31, 2021    183
Goodwill, trademarks and intangible assets with indefinite useful lives
Goodwill is allocated to the Group’s cash-generating units identified as the Group’s operating segments. The following
table presents the allocation of goodwill across the segments:
($ million)
At December 31, 2021
At December 31, 2020
Agriculture
3,063
1,740
Construction
48
—
Commercial and Specialty Vehicles (*)
—
65
Powertrain (*)
—
7
Financial Services (*)
118
132
Goodwill net carrying amount
3,229
1,944
(*) Goodwill related to Commercial and Specialty Vehicles business, the Powertrain business, and the related Financial Services business (together the
“Iveco Group Business”) were reclassified to Assets held for Distribution; refer to the section "Scope of Consolidation - Discontinued Operations - Iveco
Group Business" above.
The acquisitions of Raven and Sampierana during the fourth quarter of 2021 led to an increase in goodwill for
Agriculture and Construction of $1.3 billion and $48 million, respectively. Goodwill related to the acquisitions was
calculated as the excess of the consideration transferred over the net assets recognized and represents the future
economic benefits arising from the other assets acquired that could not be individually identified and separately
recognized. The valuation of assets acquired and liabilities assumed has not yet been finalized as of December 31,
2021. Thus, goodwill associated with the acquisitions is subject to adjustment during the measurement period.
Goodwill and intangible assets with indefinite useful lives are tested for impairment annually or more frequently if a
triggering event occurs.
During the second quarter of 2020, CNH Industrial considered whether a quantitative interim assessment of goodwill for
impairment was required as a result of the significant economic disruption caused by the COVID-19 pandemic. Based
on the internal and external sources of information considered through June 30, 2020, including the current and
expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on each of the
cash-generating units, industry and market considerations, overall financial performance (both current and projected) as
well as the amount by which the recoverable amount of CNH Industrial’s cash-generating units exceeded their
respective carrying values at the date of the last quantitative assessment, CNH Industrial, as part of the qualitative
assessment performed, determined these conditions indicated that the carrying value of the Construction cash-
generating unit exceeded its recoverable amount. At June 30, 2020, CNH Industrial completed a quantitative
impairment assessment for the Construction cash-generating unit which resulted in a recoverable amount below
carrying value. Based on the assessment, CNH Industrial recognized a goodwill impairment loss of $576 million for the
Construction cash-generating unit, representing the total impairment of Construction goodwill. At December 31, 2020,
the Company completed its annual impairment assessment and concluded there was no impairment to goodwill for the
other cash-generating units. At December 31, 2021, the Company completed its annual assessment of goodwill
excluding that related to the acquisitions in 2021 and concluded that there was no impairment to goodwill for any of the
cash-generating units.
CNH Industrial determines the recoverable amount of these cash-generating units using multiple valuation
methodologies, relying largely on an income approach but also incorporating value indicators from a market approach,
with reference to the cash-generating units with the most significant allocated goodwill.
Under the income approach, CNH Industrial calculates the recoverable amount of a cash-generating unit based on the
present value of estimated future cash flows. The income approach is dependent on several critical management
assumptions, including estimates of future sales in the discrete future period, the weighted average cost of capital
(discount rate) and terminal value growth rates, and also less significant assumptions such as gross margins, operating
costs, income tax rates, capital expenditures and changes in working capital requirements. Discount rate assumptions
include an assessment of the risk inherent in the future cash flows of the respective cash-generating units.
The following discount rates before taxes were selected:
2021
2020(*)
Agriculture
14.5%
14.2%
Construction
n.a.
13.9%
Financial Services
19.7%
21.1%
(*) For Agriculture and Financial Services, discount rate at December 31, 2020; for Construction, discount rate at June 30, 2020.
Expected cash flows used under the income approach are developed in conjunction with CNH Industrial budgeting and
forecasting processes. CNH Industrial used nine years of expected cash flows for Agriculture, and five years of
CNH Industrial  Consolidated Financial Statements at December 31, 2021    184
expected cash flows for Financial Services, as management believes that these periods generally reflect the underlying
market cycles for its businesses. Under the market approach, CNH Industrial estimates the recoverable amount of the
Agriculture cash-generating unit, using earnings before interest, tax, depreciation and amortization multiples, and
estimates the recoverable amount of the Financial Services cash-generating unit using book value multiples. The
multiples are derived from comparable publicly-traded companies with similar operating and investment characteristics
as the respective cash-generating units. The guideline company method makes use of market price data of
corporations whose stock is actively traded in a public, free and open market, either on an exchange or over-the
counter basis. Although it is clear no two companies are entirely alike, the corporations selected as guideline
companies must be engaged in the same, or a similar, line of business or be subject to similar financial and business
risks, including the opportunity for growth.
A terminal value is included at the end of the projection period used in the discounted cash flow analysis in order to
reflect the remaining value that each cash-generating unit is expected to generate. The terminal value represents the
present value in the last year of the projection period of all subsequent cash flows into perpetuity. The terminal value
growth rate is a key assumption used in determining the terminal value as it represents the annual growth of all
subsequent cash flows into perpetuity. The terminal value growth rate was 1.0% in 2021 and 2020 for the Agriculture
cash-generating unit,  and 1.5% in 2021 and 2020 for Financial Services.
As of December 31, 2021, the estimated recoverable amounts, (excluding the balance of the 2021 acquisitions)
calculated using the above method, of the Agriculture and Financial Services cash-generating units exceeded the
carrying values by approximately294% and 75%, respectively. Thus, CNH Industrial did not recognize an impairment for
these cash-generating units.
The results obtained for Commercial and Specialty Vehicles confirmed the absence of an impairment loss with
reference to the goodwill amount included in the Discontinued Operations.
The sum of the recoverable amounts of CNH Industrial’s cash generating units was in excess of CNH Industrial’s
market capitalization at December 31, 2021. CNH Industrial believes that the difference between the recoverable
amount and market capitalization is reasonable (in the context of assessing whether any asset impairment exists) when
market-based control premiums are taken into consideration.
Trademarks and Other intangible assets with indefinite useful lives are mainly attributable to Agriculture and
Construction and consist of acquired trademarks and similar rights which have no legal, contractual, competitive or
economic factors that limit their useful lives. For the purposes of impairment testing, these assets were attributed to the
respective cash-generating units. No impairment loss was recognized.
Finally, the estimates and budget data to which the above-mentioned parameters have been applied are those
determined by management based on past performance and expectations of developments in the markets in which
CNH Industrial operates. Impairment assessments inherently involve management judgments regarding a number of
assumptions such as those described above. Due to the many variables inherent in the estimation of a cash generating
unit’s recoverable amount, differences in assumptions could have a material effect on the estimated recoverable
amount and could result in a goodwill impairment loss in a future period. Circumstances and events, which could
potentially cause further impairment losses, are constantly monitored by CNH Industrial.
Development costs and other intangible assets with finite useful lives
The amortization of development costs and impairment losses are reported in the income statement as Research and
development costs.
Development costs are tested for impairment at the cash-generating unit level.
Intangible assets with finite useful lives are amortized over their estimated useful lives and tested for impairment if
events or changes in circumstances indicate that the asset may be impaired. During the second quarter of 2020, CNH
Industrial recorded an impairment loss of $17 million related to its Construction dealer network and $65 million related
to certain software costs in its Agriculture segment. These impairments are included in the Cost of sales in the
consolidated income statement. Moreover, during the second quarter of 2020, CNH Industrial recorded an impairment
loss of $72 million (included in Research and Development costs) on development costs in Agriculture.
Further impairment charges of $32 million against development costs and other intangible assets were recognized in
the year ended December 31, 2020.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    185
13.Property, plant and equipment
In 2021 and 2020, changes in the carrying amount of Property, plant and equipment were as follows:
($ million)
Land
Industrial
buildings
Plant,
machinery
and
equipment
Right-of-
use assets
Assets sold
with a buy-back
commitment
Other
tangible
assets
Advances
and tangible
assets in
progress
Total
Gross carrying amount Balance at December
31, 2019
271
3,027
8,626
600
2,649
789
163
16,125
Additions
—
32
210
131
663
20
93
1,149
Divestitures
—
(40)
(113)
(77)
(633)
(17)
(4)
(884)
Translation differences
15
100
513
38
216
38
9
929
Other changes
—
56
79
24
(255)
(8)
(112)
(216)
Balance at December 31, 2020
286
3,175
9,315
716
2,640
822
149
17,103
Additions
54
274
122
693
27
171
1,341
Divestitures
(3)
(6)
(87)
(98)
(391)
(32)
—
(617)
Translation differences
(14)
(173)
(580)
(48)
(194)
(52)
(10)
(1,071)
Other changes
(7)
51
123
40
(514)
25
(114)
(396)
Transfer to Assets held for distribution
(132)
(1,329)
(5,813)
(397)
(2,235)
(431)
(68)
(10,405)
Balance at December 31, 2021
130
1,772
3,232
335
(1)
359
128
5,955
Accumulated depreciation and impairment
losses balance at  December 31, 2019
3
1,867
6,800
152
871
663
—
10,356
Depreciation
—
94
405
139
276
34
—
948
Impairment losses
3
72
56
—
144
32
—
307
Divestitures
—
(34)
(116)
(33)
(371)
(15)
—
(569)
Translation differences
—
89
447
16
76
38
—
666
Other changes
—
8
31
(4)
(41)
(13)
—
(19)
Balance at December 31, 2020
6
2,096
7,623
270
955
739
—
11,689
Depreciation
—
93
370
145
261
36
—
905
Impairment losses
—
1
1
—
2
3
—
7
Divestitures
—
(6)
(85)
(76)
(181)
—
—
(348)
Translation differences
—
(112)
(480)
(22)
(63)
(45)
—
(722)
Other changes
(2)
(18)
24
—
(297)
(35)
—
(328)
Transfer to Assets held for distribution
(3)
(904)
(4,820)
(173)
(676)
(369)
—
(6,945)
Balance at December 31, 2021
1
1,150
2,633
144
1
329
—
4,258
Carrying amount at December 31, 2020
280
1,079
1,692
446
1,685
83
149
5,414
Carrying amount at December 31, 2021
129
622
599
191
(2)
30
128
1,697
As a result of the significant decline in industry demand and other market conditions due to the economic disruption
caused by the COVID-19 pandemic, during the second quarter of 2020 CNH Industrial reviewed its current
manufacturing footprint, and has reassessed the recoverability of certain assets. As a result, Agriculture and
Construction recognized an impairment loss of $111 million and $45 million, respectively, against Property, plant and
equipment acquired. Furthermore, during the second quarter of 2020, Commercial and Specialty Vehicles recognized
impairment losses of $134 million in connection with new actions identified in order to realize the asset portfolio of
vehicles sold under buy-back commitments as a result of the significant deterioration of the used vehicle markets in
which the segment operates and the consequent impact on truck residual values. Commercial and Specialty Vehicles
also recognized impairment losses of $7 million against Property, plant and equipment acquired. The impairment losses
were recognized in Cost of sales.
Commercial and Specialty Vehicles recognized an impairment loss of $2 million on Assets sold with a buy-back
commitment for the year ended December 31, 2021 ($144 million for the year ended December 31, 2020). The losses
were recognized in the Cost of sales.
Other changes mainly include the reclassification of the prior year balances for Advances and tangible assets in
progress to the appropriate categories when the assets were effectively acquired and put into operation, as well as the
reclassification to Inventory of Assets sold with a buy-back commitment ($217 million) that are held for sale at the
agreement expiry date.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    186
At December 31, 2021, right-of-use assets refer primarily to the following lease contracts: industrial buildings for $139
million ($311 million at December 31, 2020), plant, machinery and equipment for $13 million ($36 million at December
31, 2020), and other assets for $39 million ($99 million at December 31, 2020). For a description of the related lease
liabilities, refer to Note 24 "Debt".
Short-term and low-value leases are not recorded in the statement of financial position; CNH Industrial recognizes
lease expense ($10 million and $11 million in 2021 and 2020, respectively) in the income statement for these leases on
a straight-line basis over the lease term.
Land and industrial buildings and plant, machinery and equipment pledged as security for debt and other commitments
were immaterial at December 31, 2021 and 2020.
CNH Industrial had contractual commitments of $95 million and $126 million for the acquisition of property, plant and
equipment at December 31, 2021 and 2020, respectively.
14.Investments and other non-current financial assets
($ million)
At December 31, 2021
At December 31, 2020
Investments accounted for using the equity method
298
569
Equity investments measured at fair value through other comprehensive income
—
392
Other investments
47
15
Total Investments
345
976
Non-current financial receivables and other non-current securities
10
45
Total Investments and other non-current financial assets
355
1,021
At December 31, 2021 and 2020, no Non-current financial receivables had been pledged as security.
Investments
Changes in Investments in 2021 and 2020 are set out below:
($ million)
At December
31, 2020
Revaluations/
(Write-downs)
Acquisitions
and
capitalizations
Fair value
remeasu-
rements
Translation
differences
Disposals
and other
changes
Transfer to
Assets held
for
distribution
At December
31, 2021
Investments in:
Unconsolidated
subsidiaries and
other
15
—
52
—
(7)
2
(15)
47
Joint ventures
287
83
—
—
(45)
54
(206)
173
Associates
282
40
3
—
(22)
(33)
(145)
125
Equity investments
measured at fair
value through other
comprehensive
income
392
—
—
(138)
—
—
(254)
—
Total Investments
976
123
55
(138)
(74)
23
(620)
345
($ million)
At December
31, 2019
Revaluations/
(Write-downs)
Acquisitions
and
capitalizations
Fair value
remeasu-
rements
Translation
differences
Disposals
and other
changes
At December
31, 2020
Investments in:
Unconsolidated
subsidiaries and other
3
—
12
—
—
—
15
Joint ventures
323
(10)
8
—
(2)
(32)
287
Associates
227
29
—
—
23
3
282
Equity investments
measured at fair value
through other
comprehensive income
108
—
142
142
—
—
392
Total Investments
661
19
162
142
21
(29)
976
CNH Industrial  Consolidated Financial Statements at December 31, 2021    187
Revaluations and Write-downs include the Group’s share of the profit or loss for the year of investments accounted for
using the equity method for an amount of $123 million in 2021 and $19 million in 2020.
At December 31, 2020, equity investments measured at fair value through other comprehensive income included the
fair value of the approximately 6.6% investment held by CNH Industrial in Nikola Corporation ("Nikola"), made in the
context of the strategic partnership with Nikola to industrialize fuel-cell and battery electric Heavy-Duty trucks. During
the second quarter of 2020, Nikola completed a business combination with VectoIQ Acquisition Corp., a publicly-traded
special purpose acquisition company. Under the terms and conditions of the business combination, the former
shareholders of Nikola received 1.901 shares of VectoIQ for each share held in Nikola and became shareholders of
VectoIQ, which, in turn, changed its name to “Nikola Corporation”. The combined company’s shares continued to list  on
NASDAQ under the new ticker symbol “NKLA”. Before the completion of the business combination, CNH Industrial
increased its investment in Nikola to $250 million. The market price of Nikola shares as of December 31, 2021 was
$9.87, determining a value of $254 million for the 25,661,448 shares held by CNH Industrial through its fully-owned
subsidiary Iveco S.p.A. During the year ended December 31, 2021, CNH Industrial recorded in Other comprehensive
income (classified in the items related to Discontinued Operations) a pre-tax loss of $138 million ($139 million after-tax)
from the remeasurement at fair value of the investment in Nikola.
Iveco S.p.A. and Nikola Corporation are jointly developing cab over battery-electric vehicle (“BEV”) and hydrogen fuel
cell electric vehicle (“FCEV”) trucks, which will be manufactured in Europe through a legal entity 50/50 owned by Iveco
S.p.A. and Nikola Corporation, and in the U.S. by Nikola Corporation. During 2020, Iveco S.p.A. and Nikola entered into
a series of agreements to establish the European legal entity. The set-up activities of the legal entity started in the fourth
quarter of 2020 and are progressing according to internal schedules and production started in Q4 2021.
Investments in joint ventures
A summary of investments in joint ventures at December 31, 2021 and 2020 is as follows:
At December 31, 2021
At December 31, 2020
% of interest
($ million)
% of interest
($ million)
Naveco (Nanjing Iveco Motor Co.) Ltd.
0.0
—
50.0
66
Turk Traktor Ve Ziraat Makineleri A.S.
37.5
49
37.5
69
Other Joint ventures:
New Holland HFT Japan Inc.
50.0
83
50.0
81
CNH de Mexico SA de CV
50.0
35
50.0
32
Other
6
39
Total Other Joint ventures
124
152
Total Investments in joint ventures
173
287
Interests in joint ventures consist of 6 companies at December 31, 2021 (12 companies at December 31, 2020) and
mainly include Turk Traktor Ve Ziraat Makineleri A.S., Turkey, a listed entity (37.5% CNH Industrial and 37.5% Koç
Holding) which manufactures and distributes various models of both New Holland and Case IH tractors.
During the first half of 2021, CNH Industrial and SAIC Group completed the regulatory filings required for the finalization
of the sale of a 30.1% of Naveco (Nanjing Iveco Motor Co.) to SAIC Group. Closing of the transaction occurred in the
third quarter of 2021. The sale resulted in the discontinuation of the equity method of accounting and the recognition of
a pre-tax and after-tax gain of $9 million, which is included in item “Gains/(losses) on disposal of investments” in the
income statement. The remaining 19.9% interest in Naveco is now measured at fair value through profit or loss ($10
million at September 30, 2021, determined on the basis of the sale price for the 30.1% interest).
Interests in joint ventures are accounted for using the equity method.
Summarized financial information relating to the material joint ventures of the Group, prepared in accordance with EU-
IFRS, is as follows:
CNH Industrial  Consolidated Financial Statements at December 31, 2021    188
At December 31, 2021
At December 31, 2020
($ million)
Turk Traktor Ve Ziraat Makineleri
A.S.
Naveco Ltd.
Turk Traktor Ve
Ziraat Makineleri
A.S.
Cash and cash equivalents
139
216
249
Non-current assets
82
318
124
Current assets
206
301
209
Total Assets
427
835
582
Debt
87
107
177
Other liabilities
209
595
220
Total Liabilities
296
702
397
Total Equity
131
133
185
2021
2020
($ million)
Turk Traktor Ve
Ziraat Makineleri
A.S.
Naveco Ltd.
Turk Traktor Ve
Ziraat Makineleri
A.S.
Net revenues
1,245
559
821
Depreciation and amortization
18
35
19
Net Financial income/(expenses)
(11)
(2)
(7)
Profit/(loss) before taxes
171
(100)
104
Income tax (expenses)
(33)
(32)
(10)
Profit/(loss) from continuing operations
138
(132)
94
Profit/(loss) from discontinued operations
—
—
—
Profit/(loss)
138
(132)
94
Total Other comprehensive income, net of tax
—
—
—
Total Comprehensive income
138
(132)
94
This summarized financial information may be reconciled to the carrying amount of the % interest held in the joint
ventures as follows:
At December 31, 2021
At December 31, 2020
($ million)
Turk Traktor Ve Ziraat
Makineleri A.S.
Naveco Ltd.
Turk Traktor Ve
Ziraat Makineleri
A.S.
Total Equity
131
133
185
Group’s interest (%)
37.5
50.0
37.5
Pro-quota equity
49
66
69
Adjustments made by using the equity method
—
—
—
Carrying amount
49
66
69
Summarized financial information relating to the % interest held in the other joint ventures that are not individually
material, is as follows:
($ million)
2021
2020
Profit/(loss) from continuing operations
18
21
Profit/(loss) from discontinued operations
9
—
Profit/(loss)
27
21
Total Other comprehensive income, net of tax
—
—
Total Comprehensive income
27
21
At December 31, 2021, the fair value of Investments in main listed joint ventures, based on prices quoted on regulated
markets, is as follows:
($ million)
Carrying value
Fair value
Turk Traktor Ve Ziraat Makineleri A.S.
49
48
CNH Industrial  Consolidated Financial Statements at December 31, 2021    189
Investments in associates
A summary of investments in associates at December 31, 2021 and 2020 is as follows:
At December 31, 2021
At December 31, 2020
% of interest
($ million)
% of interest
($ million)
CNH Industrial Capital Europe S.a.S.
24.95
106
49.9
235
Other associates:
Al-Ghazi Tractors Ltd.
43.2
9
43.2
6
Other
10
41
Total Other associates
19
47
Total Investments in associates
125
282
Before the Demerger, CNH Industrial held the 49.9% interest in CNH Industrial Capital Europe S.a.S., joint venture with
the BNP Paribas Group providing financing solutions to customers of the CNH Industrial Group in several European
countries. In preparation of the Demerger, such 49.9% interest was transferred into CIFINS S.p.A., a new legal entity
specifically set up legal entity which, following the Demerger, is currently owned for the 50% by CNH Industrial N.V. and
for the 50% by Iveco Group N.V.. As a consequence, the value of the 24.95% interest held through CIFINS S.p.A. in
CNH Industrial Capital Europe S.a.S. by CNH Industrial N.V. is included in the Continuing Operations, while the 24.95%
held by Iveco Group N.V. is included in the Discontinued Operations.
Summarized financial information relating to CNH Industrial Capital Europe S.a.S., material associate of the Group, is
as follows:
($ million)
At December 31, 2021
At December 31, 2020
Non-current assets
—
—
Current assets
5,900
5,854
Total Assets
5,900
5,854
Debt
5,216
5,130
Other liabilities
262
262
Total Liabilities
5,478
5,392
Total Equity
422
462
($ million)
2021
2020
Net revenues
134
130
Profit/(loss) before taxes
86
63
Profit/(loss) from continuing operations
57
43
Profit/(loss) from discontinued operations
—
—
Profit/(loss)
57
43
Total Other comprehensive income, net of tax
—
—
Total Comprehensive income
57
43
This summarized financial information may be reconciled to the carrying amount of the % interest held in the associate
as follows:
($ million)
At December 31, 2021
At December 31, 2020
Total Equity
422
462
Group’s interest (%)
24.95
49.9
Pro-quota equity
106
231
Adjustments made by using the equity method
—
4
Carrying amount
106
235
CNH Industrial  Consolidated Financial Statements at December 31, 2021    190
Summarized financial information relating to the Group’s pro-rata interest in associates that are not individually material,
accounted for using the equity method, is as follows:
($ million)
2021
2020
Profit/(loss) from continuing operations
8
3
Profit/(loss) from discontinued operations
4
—
Profit/(loss)
12
3
Total Other comprehensive income, net of tax
—
—
Total Comprehensive income
12
3
15.Leased assets
This item changed as follows in 2021 and 2020:
($ million)
At December
31, 2020
Additions
Depreciation
Foreign
exchange
effects
Disposals
and other
changes
Transfer to
Assets held
for
distribution
At December
31, 2021
Gross carrying amount
2,442
626
—
(13)
(759)
(128)
2,168
Less: Depreciation and
impairment
(464)
—
(277)
5
243
63
(430)
Net carrying amount of
Leased assets
1,978
626
(277)
(8)
(516)
(65)
1,738
($ million)
At December
31, 2019
Additions
Depreciation
Foreign
exchange
effects
Disposals
and other
changes
At December
31, 2020
Gross carrying amount
2,212
709
—
24
(503)
2,442
Less: Depreciation and impairment
(355)
—
(266)
(6)
163
(464)
Net carrying amount of Leased assets
1,857
709
(266)
18
(340)
1,978
Leased assets include vehicles leased to retail customers by the Group's leasing companies.
At December 31, 2021, minimum lease payments receivable for assets under non-cancelable operating leases amount
to $450 million ($582 million at December 31, 2020) and fall due as follows:
($ million)
At December 31, 2021
At December 31, 2020
Less than one year
212
272
One to two years
134
173
Two to three years
70
90
Three to four years
27
34
Four to five years
7
12
More than five years
—
1
Total Undiscounted lease payments
450
582
No leased assets have been pledged as security at December 31, 2021 and 2020.
16.Inventories
At December 31, 2021 and 2020, Inventories consisted of the following:
($ million)
At December 31, 2021
At December 31, 2020
Raw materials
1,438
1,518
Work-in-progress
570
623
Finished goods
2,220
3,859
Total Inventories
4,228
6,000
At December 31, 2021, Total Inventories of $4,228 million represented the Inventories of Continuing Operations. The
Inventories of Discontinued Operations included in Assets held for distribution totaled $3,003 million.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    191
At December 31, 2021, Inventories included assets which are no longer subject to operating lease arrangements or
buy-back commitments and were held for sale for a total amount of $29 million ($216 million at December 31, 2020).
At December 31, 2021, the amount of Inventories measured at net realizable value (estimated selling price less the
estimated costs of completion and the estimated costs necessary to make the sale) is $478 million ($1,368 million at
December 31, 2020).
There were no inventories pledged as security at December 31, 2021 and 2020.
17.Current receivables and Other current financial assets
A summary of Current receivables and Other current financial assets as of December 31, 2021 and 2020 is as follows:
($ million)
At December 31, 2021
At December 31, 2020
Trade receivables
192
503
Receivables from financing activities
15,443
18,529
Current tax receivables
63
160
Other current receivables and financial assets:
Other current receivables
746
937
Other current financial assets
1
104
Total Other current receivables and financial assets
747
1,041
Total Current receivables and Other current financial assets
16,445
20,233
At December 31, 2021, Total Current receivables and Other current financial assets of $16,445 million referred to
Continuing Operations. Total Current receivables and Other current financial assets of Discontinued Operations totaled
$4,027 million, primarily including Receivables from financing activities of $3,296 million and Trade receivables of $165
million.
An analysis of Current receivables by due date is as follows:
At December 31, 2021
At December 31, 2020
($ million)
due
within
one year
due
between
one and
five years
due
beyond
five
years
Total
due
within
one
year
due
between
one and five
years
due
beyond
five
years
Total
Trade receivables
192
—
—
192
502
1
—
503
Receivables from financing activities
8,114
6,922
407
15,443
11,593
6,640
296
18,529
Current tax receivables
15
—
48
63
5
114
41
160
Other current receivables
667
78
1
746
807
114
16
937
Total Current receivables
8,988
7,000
456
16,444
12,907
6,869
353
20,129
Trade receivables
As of December 31, 2021 and 2020, CNH Industrial had trade receivables of $192 million and 503 million, respectively.
Trade receivables are shown net of allowances for doubtful accounts of $23 million and $62 million at December 31,
2021 and 2020, respectively. The allowances are determined using the simplified approach, as permitted by IFRS 9 for
trade receivables, consisting in the use of lifetime expected loss.
Changes in the allowances for doubtful accounts during 2021, and 2020 were as follows:
Year ended December 31,
($ million)
2021
2020
Opening balance
62
61
Provision
3
10
Use and other changes
4
(9)
Transfer to Assets held for distribution
(46)
—
Ending balance
23
62
The allowances at December 31, 2021 and 2020, have been determined using the following expected loss rates:
CNH Industrial  Consolidated Financial Statements at December 31, 2021    192
At December 31, 2021
Current
31-60 days past
due
61-90 days
past due
Greater than 90
days past due
Total
Expected loss rate
%
4%
—%
—%
79%
11%
Gross carrying amount
$ million
189
4
3
19
215
Allowances for doubtful accounts
$ million
(8)
—
—
(15)
(23)
At December 31, 2020
Current
31-60 days past
due
61-90 days
past due
Greater than 90
days past due
Total
Expected loss rate
%
3%
14%
—%
66%
11%
Gross carrying amount
$ million
477
14
4
70
565
Allowances for doubtful accounts
$ million
(14)
(2)
—
(46)
(62)
Trade accounts have significant concentrations of credit risk in the Agriculture and Construction segments. There is not
a disproportionate concentration of credit risk in any geographic region.
The Industrial Activities businesses sell a significant portion of their trade receivables to Financial Services and provide
compensation to Financial Services at approximate market interest rates.
In 2021 and 2020, trade receivables for an amount of $1 million and $1 million, respectively, were written off.
Charge‑offs of principal amounts of trade receivables outstanding are deducted from the allowance at the point when it
is estimated that amounts due are deemed uncollectible. CNH Industrial continues to engage in collection efforts to
attempt to recover the receivables. When recoveries are collected, these are recognized as income.
Receivables from financing activities
A summary of Receivables from financing activities as of December 31, 2021 and 2020 is as follows:
($ million)
At December 31, 2021
At December 31, 2020
Retail:
Retail financing
9,805
9,050
Finance leases
215
277
Total Retail
10,020
9,327
Wholesale:
Dealer financing
5,373
9,129
Total Wholesale
5,373
9,129
Other
50
73
Total Receivables from financing activities
15,443
18,529
CNH Industrial provides and administers financing for retail purchases of new and used equipment sold through its
dealer network. The terms of retail and other notes and finance leases generally range from two to six years, and
interest rates vary depending on prevailing market interest rates and certain incentive programs offered by Industrial
Activities.
Wholesale receivables arise primarily from the sale of goods to dealers and distributors and, to a lesser extent, the
financing of dealer operations. Under the standard terms of the wholesale receivable agreements, these receivables
typically have “interest-free” periods of up to twelve months and stated original maturities of up to twenty-four months,
with repayment accelerated upon the sale of the underlying equipment by the dealer. During the “interest-free” period,
Financial Services is compensated by Industrial Activities based on market interest rates. After the expiration of any
“interest-free” period, interest is charged to dealers on outstanding balances until CNH Industrial receives payment in
full. The “interest-free” periods are determined based on the type of equipment sold and the time of year of the sale.
CNH Industrial evaluates and assesses dealers on an ongoing basis as to their credit worthiness. CNH Industrial may
be obligated to repurchase the dealer’s equipment upon cancellation or termination of the dealer’s contract for such
causes as change in ownership, closeout of the business, or default. There were no significant losses in 2021 and 2020
relating to the termination of dealer contracts.
CNH Industrial assesses and monitors the credit quality of its financing receivables based on whether a receivable is
classified as Performing or Non-Performing. Financing receivables are considered past due if the required principal and
interest payments have not yet been received as of the date such payments were due. Delinquency is reported on
financing receivables greater than 30 days past due. Non-performing financing receivables represent loans for which
CNH Industrial  Consolidated Financial Statements at December 31, 2021    193
CNH Industrial has ceased accruing finance income. These receivables are generally 90 days past due. Finance
income for non-performing receivables is recognized on a cash basis. Accrued interest is charged-off to interest
income. Interest income charged-off was not material for the year ended December 31, 2021. Interest accrual is
resumed if the receivable becomes contractually current and collection becomes probable. Previously suspended
income is recognized at that time.
The aging of Receivables from financing activities as of December 31, 2021 and 2020 is as follows:
At December 31, 2021
($ million)
Total
Current
31-60 Days
Past Due
61-90 Days
Past Due
Total
Performing
Non-
Performing
Total
Retail
North America
6,620
11
—
6,631
—
6,631
Europe
1
—
—
1
—
1
South America
2,080
—
—
2,080
—
2,080
Rest of World
1,280
14
8
1,302
6
1,308
Total Retail
9,981
25
8
10,014
6
10,020
Wholesale
North America
2,339
—
—
2,339
—
2,339
Europe
1,867
—
—
1,867
—
1,867
South America
626
—
—
626
22
648
Rest of World
517
2
—
519
—
519
Total Wholesale
5,349
2
—
5,351
22
5,373
At December 31, 2020
($ million)
Total
Current
31-60 Days
Past Due
61-90 Days
Past Due
Total
Performing
Non-
Performing
Total
Retail
North America
6,125
25
—
6,150
—
6,150
Europe
99
—
—
99
—
99
South America
1,885
4
1
1,890
12
1,902
Rest of World
1,162
7
4
1,173
3
1,176
Total Retail
9,271
36
5
9,312
15
9,327
Wholesale
North America
2,722
—
—
2,722
31
2,753
Europe
5,252
—
—
5,252
—
5,252
South America
537
—
—
537
42
579
Rest of World
542
3
—
545
—
545
Total Wholesale
9,053
3
—
9,056
73
9,129
Receivables from financing activities have significant concentrations of credit risk in the agriculture and construction
business sectors. On a geographic basis, there is not a disproportionate concentration of credit risk in any area. CNH
Industrial typically retains as collateral a security interest in the equipment associated with retail notes, wholesale notes
and finance leases.
A financial asset has experienced a significant increase in credit risk when the customer shows signs of operational or
financial weakness including past dues, which requires significant collection effort and monitoring and generally occurs
when the customer becomes past due greater than 30 days. The assessment considers available information regarding
the financial stability of the customer and other market/industry data; an account is typically considered in default when
it is 90 days past due.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    194
CNH Industrial utilizes three categories for receivables from financing activities that reflect their credit risk and how the
loan provision is determined.
Internal risk grade
IFRS 9 classification
Definition
Basis for recognition of expected
credit loss provision
Performing
Stage 1
Low risk of default; payments are generally
less than 30 days past due
12 month expected credit losses
Performing
Stage 2
Significant increase in credit risk; payments
generally between 31 and 90 days past due
Lifetime expected credit losses
Non-performing
Stage 3
Accounts are credit impaired and/or a legal
action has been initiated; payments
generally greater than 90 days past due
Lifetime expected credit losses
Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is
estimated that amounts due are deemed uncollectible. CNH Industrial continues to engage in collection efforts to
attempt to recover the receivables. When recoveries are collected, these are recognized as income.
Allowance for Credit Losses
CNH Industrial’s allowance for credit losses is segregated into two portfolio segments: retail and wholesale. A portfolio
segment is the level at which CNH Industrial develops a systematic methodology for determining its allowance for credit
losses. Further, CNH Industrial evaluates its retail and wholesale portfolio segments by class of receivable: North
America, Europe, South America and Rest of World regions. Typically, CNH Industrial’s receivables within a geographic
region have similar risk profiles and methods for assessing and monitoring risk. These classes align with management
reporting.
The Group accounts for its credit risk by appropriately providing for expected credit losses on a timely basis. In
calculating the expected credit loss rates, CNH Industrial considers historical loss rates for each category of customers
and adjusts for forward looking macroeconomic data.
In calculating the expected credit losses, CNH Industrial’s calculations depend on whether the receivable has been
individually identified as being impaired. The first component of the allowance for credit losses covers the receivables
specifically reviewed by management for which CNH Industrial has determined it is probable that it will not collect all of
the contractual principal and interest. Receivables are individually reviewed for impairment based on, among other
items, amounts outstanding, days past due and prior collection history. Expected credit losses are measured by
considering: the unbiased and probability-weighted amount; the time value of money; and reasonable and supportable
information (available without undue costs or effort) at the reporting date about past events, current conditions and
forecasts of future economic conditions. Expected credit losses are measured as the probability-weighted present value
of all cash shortfalls over the expected life of each financial asset. 
The second component of the allowance for credit losses covers all receivables that have not been individually
reviewed for impairment. The allowance for these receivables is based on aggregated portfolio evaluations, generally
by financial product. The allowance for wholesale and retail credit losses is based on loss forecast models that consider
a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and
delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward looking
macroeconomic factors. In addition, qualitative factors that are not fully captured in the loss forecast models are
considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective
and require a degree of management judgment.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    195
Allowance for credit losses activity for the years ended December 31, 2021 and 2020 is as follows:
Year ended December 31, 2021
Retail
Wholesale
($ million)
Stage 1
12
months
ECL
Stage 2
Lifetime
ECL
Stage 3
Lifetime
ECL
Total
Stage 1
12
months
ECL
Stage 2
Lifetime
ECL
Stage 3
Lifetime
ECL
Total
Opening balance
87
26
191
304
26
1
147
174
Provision (benefit)
(14)
4
32
22
2
—
4
6
Charge-offs, net of recoveries
(4)
—
(19)
(23)
—
—
—
—
Transfers
25
(4)
(21)
—
2
—
(2)
—
Foreign currency translation and other
—
(2)
(9)
(11)
1
—
(4)
(3)
Transfer to Assets held for distribution
(38)
—
(99)
(137)
(10)
(1)
(101)
(112)
Ending balance
56
24
75
155
21
—
44
65
Receivables:
Ending balance
9,778
191
51
10,020
5,241
52
80
5,373
At December 31, 2021, the allowance for credit losses includes a reduction in retail reserves primarily due to the
improved outlook for the agricultural industry and a reduced expected impact on credit conditions from the COVID-19
pandemic. CNH Industrial continues to monitor the situation and will update the macroeconomic factors and qualitative
factors in future periods, as warranted.
At December 31, 2020, the allowance for credit losses was based on CNH Industrial's  expectation of deteriorating
credit conditions related to the COVID-19 pandemic.
Year ended December 31, 2020
Retail
Wholesale
($ million)
Stage 1
12
months
ECL
Stage 2
Lifetime
ECL
Stage 3
Lifetime
ECL
Total
Stage 1
12
months
ECL
Stage 2
Lifetime
ECL
Stage 3
Lifetime
ECL
Total
Opening balance
68
5
220
293
35
1
123
159
Provision (benefit)
42
1
32
75
(7)
—
25
18
Charge-offs, net of recoveries
(8)
—
(45)
(53)
—
—
(14)
(14)
Transfers
(10)
20
(10)
—
(2)
—
2
—
Foreign currency translation and other
(5)
—
(6)
(11)
—
—
11
11
Ending balance
87
26
191
304
26
1
147
174
Receivables:
Ending balance
9,012
272
43
9,327
8,820
93
216
9,129
Finance lease receivables mainly relate to Agriculture and Construction equipment leased out under finance lease
arrangements. The interest rate implicit in the lease is determined at the commencement of the lease for the whole
lease term. The average interest rate implicit in total finance lease receivables varies depending on prevailing market
interest rates.
The item may be analyzed as follows stated gross of an allowance of $89 million at December 31, 2021 ($113 million at
December 31, 2020):
($ million)
At December 31, 2021
At December 31, 2020
Less than one year
80
173
One to two years
57
78
Two to three years
54
77
Three to four years
42
41
Four to five years
22
35
More than five years
8
25
Total Undiscounted receivables for future minimum lease payments
263
429
Unearned finance income
(42)
(39)
Present value of future minimum lease payments
221
390
CNH Industrial  Consolidated Financial Statements at December 31, 2021    196
Troubled Debt Restructurings
A restructuring of a receivable constitutes a troubled debt restructuring (“TDR”) when the lender grants a concession it
would not otherwise consider to a borrower that is experiencing financial difficulties. As a collateral-based lender, CNH
Industrial typically will repossess collateral in lieu of restructuring receivables. As such, for retail receivables,
concessions are typically provided based on bankruptcy court proceedings. For wholesale receivables, concessions
granted may include extended contract maturities, inclusion of interest-only periods, modification of a contractual
interest rate to a below market interest rate and waiving of interest and principal.
TDRs are reviewed along with other receivables as part of management’s ongoing evaluation of the adequacy of the
allowance for credit losses. The allowance for credit losses attributable to TDRs is based on the most probable source
of repayment, which is normally the liquidation of the collateral. In determining collateral value, CNH Industrial
estimates the current fair market value of the equipment collateral and considers credit enhancements such as
additional collateral and third-party guarantees.
Before removing a receivable from TDR classification, a review of the borrower is conducted. If concerns exist about the
future ability of the borrower to meet its obligations based on a credit review, the TDR classification is not removed from
the receivable.
As of December 31, 2021, CNH Industrial had 173 retail and finance lease contracts classified as TDRs in North
America where a court has determined the concession. The pre-modification value of these contracts was $4 million
and the post-modification value was $4 million. Additionally, CNH Industrial had 332 accounts with a balance of $22
million in North America undergoing bankruptcy proceedings where a concession has not yet been determined. As of
December 31, 2020, CNH Industrial had 253 retail and finance lease contracts classified as TDRs in North America
where a court has determined the concession. The pre-modification value of these contracts was $9 million and the
post-modification value was $8 million. Additionally, CNH Industrial had 362 accounts with a balance of $26 million in
North America undergoing bankruptcy proceedings where a concession has not yet been determined. As the outcome
of the bankruptcy cases is determined by a court based on available assets, subsequent re-defaults are unusual and
were not material for retail and finance lease contracts that were modified in a TDR during the previous twelve months
ended December 31, 2021 and 2020.
As of December 31, 2021, and 2020, CNH Industrial’s wholesale TDRs were immaterial.
Other current receivables
At December 31, 2021, Other current receivables mainly consisted of other tax receivables for VAT and other indirect
taxes of $638 million ($723 million at December 31, 2020), and receivables from employees of $11 million ($20 million
at December 31, 2020).
Other current financial assets
At December 31, 2021, and 2020, Other current financial assets primarily consist of current securities and short-term
deposits and investments.
Refer to Note 30 “Information on financial risks” for additional information on the credit risk to which CNH Industrial is
exposed and the way it is managed by the Group.
Transfers of financial receivables
The Group transfers a number of its financial receivables to securitization programs or factoring transactions.
A securitization transaction entails the sale of a portfolio of receivables to a securitization vehicle. This structured entity
finances the purchase of the receivables by issuing asset-backed securities (i.e. securities whose repayment and
interest flow depend upon the cash flow generated by the portfolio). Asset-backed securities are divided into classes
according to their degree of seniority and rating: the most senior classes are placed with investors on the market; the
junior class, whose repayment is subordinated to the senior classes, is normally subscribed for by the seller. The
residual interest in the receivables retained by the seller is therefore limited to the junior securities it has subscribed for.
In accordance with IFRS 10 – Consolidated Financial Statements, all securitization vehicles are included in the scope of
consolidation because the subscription of the junior asset-backed securities by the seller implies its control in substance
over the structured entity.
Furthermore, factoring transactions may be either with recourse or without recourse; certain without recourse transfers
include deferred payment clauses (for example, when the payment by the factor of a minor part of the purchase price is
dependent on the total amount collected from the receivables), requiring first loss cover, meaning that the transferor
CNH Industrial  Consolidated Financial Statements at December 31, 2021    197
takes priority participation in the losses, or requires a significant exposure to the cash flows arising from the transferred
receivables to be retained. These types of transactions do not comply with the requirements of IFRS 9 – Financial
Instruments for the derecognition of the assets, since the risks and rewards connected with collection are not
substantially transferred and, accordingly, the Group continues to recognize the receivables transferred by this means
in its consolidated statement of financial position and recognizes a financial liability of the same amount under Asset-
backed financing (see Note 24 “Debt”). The gains and losses arising from the transfer of these assets are only
recognized when the assets are derecognized.
At December 31, 2021 and 2020, the carrying amount of such transferred financial assets not derecognized and the
related liability and the respective fair values were as follows:
At December 31, 2021
At December 31, 2020
($ million)
Receivables
from
financing
activities
transferred
Other
financial
assets
transferred
Total
Receivables
from
financing
activities
transferred
Other
financial
assets
transferred
Total
Carrying amount of assets
10,321
1,080
11,401
13,235
1,312
14,547
Carrying amount of the related liabilities
(7,779)
(1,097)
(8,876)
(10,622)
(1,301)
(11,923)
Liabilities for which the counterparty has the right to
obtain relief on the transferred assets:
Fair value of the assets
10,374
1,080
11,454
13,323
1,312
14,635
Fair value of the liabilities
(7,673)
(1,096)
(8,769)
(10,629)
(1,299)
(11,928)
Net position
2,701
(16)
2,685
2,694
13
2,707
Other financial assets transferred also include the cash with a pre-determined use restricted to the repayment of the
securitization debt.
CNH Industrial has discounted receivables and bills without recourse having due dates beyond December 31, 2021
amounting to $192million ($351 million at December 31, 2020, with due dates beyond that date), which refer to trade
receivables and other receivables for $178 million ($337 million at December 31, 2020) and receivables from financing
activities for $14 million ($14 million at December 31, 2020).
18. Derivative assets and Derivative liabilities
These items consist of derivative financial instruments measured at fair value at the balance sheet date.
CNH Industrial utilizes derivative instruments to mitigate its exposure to interest rate and foreign currency exposures.
Derivatives used as hedges are effective at reducing the risk associated with the exposure being hedged and are
designated as a hedge at the inception of the derivative contract. CNH Industrial does not hold or enter into derivative
or other financial instruments for speculative purposes. The credit and market risk related to derivatives is reduced
through diversification among various counterparties, utilizing mandatory termination clauses and/or collateral support
agreements. Derivative instruments are generally classified as Level 2 in the fair value hierarchy.
In accordance with IFRS 9, derivative financial instruments qualify for hedge accounting only when, at the inception of
the hedge, there is formal designation and documentation of the hedging relationship, there is an economic relationship
between the hedging instrument and the hedged item, credit risk does not dominate the value changes that result from
the economic relationship, and the hedging relationship’s hedging ratio reflects the actual quantity of the hedging
instrument and the hedged item. Hedge effectiveness is determined at the inception of the hedge relationship and
through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the
hedged item and hedging instrument.
Further description of the risk management exposures and strategies for interest rate and currency risk is presented in
Note 30 “Information on financial risks”, paragraph “Market risk” together with sensitivity analysis assessing the
potential impact of changes in interest rates and foreign currencies.
In 2021, the COVID-19 pandemic significantly impacted the economic environment. With regard to hedge accounting,
CNH Industrial continues to monitor significant developments in order to assess the potential future impacts of the
COVID-19 pandemic on the hedging relationships in place and to update its estimates concerning whether forecasted
transactions can still be considered highly likely to occur.
Foreign Exchange Derivatives
CNH Industrial has entered into foreign exchange forward contracts and swaps in order to manage and preserve the
economic value of cash flows in a currency different from the functional currency of the relevant legal entity. CNH
CNH Industrial  Consolidated Financial Statements at December 31, 2021    198
Industrial conducts its business on a global basis in a wide variety of foreign currencies and hedges foreign currency
exposures arising from various receivables, liabilities, and expected inventory purchases and sales. Derivative
instruments utilized to hedge the foreign currency risk associated with anticipated inventory purchases and sales in
foreign currencies are designated as cash flow hedges. Gains and losses on these instruments are deferred in
accumulated other comprehensive income/(loss) and recognized in earnings when the related transaction occurs.
For hedging cash flows in a currency different from the functional currency, the hedge relationship reflects the hedge
ratio of 1:1, which means that relationship is characterized by the value of the hedging instrument and the value of the
hedged item moving in the opposite direction as a result of the common underlying of hedged risk.
The main sources of hedge ineffectiveness are:
▪the effect of the counterparty and the Group’s own credit risk on the fair value of the foreign exchange derivatives,
which is not reflected in the change in the fair value of the hedged cash flow attributable to the change in the
exchange rates, and
▪changes in timing of the hedged transaction.
Ineffectiveness related to these hedge relationships is recognized in the consolidated income statement in the line
“Financial income/(expenses)” and was not significant for all periods presented. The maturity of these instruments does
not exceed 24 months and the after-tax gains/(losses) deferred in accumulated other comprehensive income/(loss) that
will be recognized in net revenues and cost of sales over the next twelve months, assuming foreign exchange rates
remain unchanged, is approximately $-25 million. If a derivative instrument is terminated because the hedge
relationship is no longer effective or because the hedged item is a forecasted transaction that is no longer determined
to be probable, the cumulative amount recorded in accumulated other comprehensive income/(loss) is recognized
immediately in earnings. Such amounts were insignificant in all periods presented.
CNH Industrial also uses forwards and swaps to hedge certain assets and liabilities denominated in foreign currencies.
Such derivatives are considered economic hedges and not designated as hedging instruments. The changes in the fair
values of these instruments are recognized directly in income in “Financial income/(expenses)” and are expected to
offset the foreign exchange gains or losses on the exposures being managed.
All of CNH Industrial’s foreign exchange derivatives are considered Level 2 as the fair value is calculated using market
data input and can be compared to actively traded derivatives.
Interest Rate Derivatives
CNH Industrial has entered into interest rate derivatives (swaps and caps) in order to manage interest rate exposures
arising in the normal course of business. Interest rate derivatives that have been designated as cash flow hedges are
being used by CNH Industrial to mitigate the risk of rising interest rates related to existing debt and anticipated issuance
of fixed-rate debt in future periods. Gains and losses on these instruments, to the extent that the hedge relationship has
been effective, are deferred in other comprehensive income/(loss) and recognized in “Financial income/(expenses)”
over the period in which CNH Industrial recognizes interest expense on the related debt. The after-tax gains (losses)
deferred in other comprehensive income/(loss) that will be recognized in interest expense over the next twelve months
are insignificant.
Interest rate derivatives that have been designated as fair value hedge relationships have been used by CNH Industrial
to mitigate the volatility in the fair value of existing fixed rate bonds and medium-term notes due to changes in floating
interest rate benchmarks. Gains and losses on these instruments are recorded in “Financial income/(expenses)” in the
period in which they occur and an offsetting gain or loss is also reflected in “Financial income/(expenses)” based on
changes in the fair value of the debt instrument being hedged due to changes in floating interest rate benchmarks.
For hedging interest rate exposures, the hedge relationship reflects the hedge ratio 1:1, which means that relationship
is characterized by the value of the hedging instrument and the value of the hedged item that move in the opposite
direction as a result of the common underlying of hedged risk.
The main sources of hedge ineffectiveness are:
▪the effect of the counterparty and the Group’s own credit risk on the fair value of the swaps, which is not reflected in
the change in the fair value of the hedged cash flow attributable to the change in the interest rates, and
▪differences in repricing dates between the swaps and the borrowings.
Any ineffectiveness is recorded in “Financial income/(expenses)” in the consolidated income statement and its amount
was insignificant for all periods presented.
CNH Industrial also enters into offsetting interest rate derivatives with substantially similar terms that are not designated
as hedging instruments, to mitigate interest rate risk related to CNH Industrial’s committed asset-backed facilities.
Unrealized and realized gains and losses resulting from fair value changes in these instruments are recognized directly
CNH Industrial  Consolidated Financial Statements at December 31, 2021    199
in income. Net gains and losses on these instruments were insignificant for the years ending December 31, 2021 and
2020. All of CNH Industrial’s interest rate derivatives outstanding as of December 31, 2021 and 2020 are considered
Level 2. The fair market value of these derivatives is calculated using market data input and can be compared to
actively traded derivatives.
Financial statement impact of CNH Industrial derivatives
The following table summarizes the gross impact of changes in the fair value of derivatives had on other
comprehensive income and profit or loss during the years ended December 31, 2021 and 2020 related to Continuing
Operations:
($ million)
2021
2020
Fair value hedges
Interest rate derivatives – Financial income/(expenses)
(47)
31
Gains/(losses) on hedged items – Financial income/(expenses)
47
(31)
Cash flow hedges
Recognized in Other comprehensive income (effective portion):
Foreign exchange derivatives
(53)
41
Interest rate derivatives
66
(15)
Reclassified from other comprehensive income (effective portion):
Foreign exchange derivatives – Net revenues
(2)
(1)
Foreign exchange derivatives – Cost of sales
(6)
18
Foreign exchange derivatives – Financial income/(expenses)
(6)
(2)
Interest rate derivatives – Cost of sales
3
(5)
Other derivatives – Cost of sales
—
—
Not designated as hedges
Foreign exchange derivatives – Financial income/(expenses)
(48)
(29)
The fair values of CNH Industrial’s derivatives as of December 31, 2021 and 2020 in the consolidated statement of
financial position are recorded as follows:
At December 31, 2021(*)
At December 31, 2020
($ million)
Positive fair
value
Negative fair
value
Positive fair
value
Negative fair
value
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate derivatives
33
(6)
68
(1)
Total Fair value hedges
33
(6)
68
(1)
Cash flow hedges:
Foreign exchange derivatives
5
(9)
67
(62)
Interest rate derivatives
32
(18)
9
(45)
Total Cash flow hedges
37
(27)
76
(107)
Total Derivatives designated as hedging instruments
70
(33)
144
(108)
Derivatives not designated as hedging instruments
Foreign exchange derivatives
102
(111)
16
(31)
Interest rate derivatives
12
(15)
—
—
Total Derivatives not designated as hedging instruments
114
(126)
16
(31)
Elimination of net Continuing Operations balances towards Discontinued
Operations
—
(23)
—
—
Derivative assets/(liabilities)
184
(182)
160
(139)
(*) Related to Continuing Operations.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    200
Derivatives not designated as hedging instruments consist mainly of derivatives (mostly currency based derivatives)
acquired to hedge receivables and payables subject to currency risk and/or interest rate risk which are not formally
designated as hedges at Group level.
The following table provides, for derivatives designated as hedging instruments, the detail of notional amounts and of
the fair vale changes used as a basis to calculate hedge ineffectiveness, and for derivative not designated as hedging
instruments, the detail of notional amounts:
At December 31, 2021
At December 31, 2020
($ million)
Notional
amount
Fair value
changes used
as a basis to
calculate hedge
ineffectiveness
Notional
amount
Fair value
changes used
as a basis to
calculate hedge
ineffectiveness
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate derivatives
1,100
23
1,346
68
Total Fair value hedges
1,100
23
1,346
68
Cash flow hedges:
Foreign exchange derivatives
3,066
12
3,112
46
Interest rate derivatives
2,547
13
3,089
(32)
Total Cash flow hedges
5,613
25
6,201
14
Total Derivatives designated as hedging instruments
6,713
48
7,547
82
Total Derivatives not designated as hedging instruments
7,930
n/a
6,223
n/a
Total Derivatives
14,643
n/a
13,770
n/a
The following table provides the effect of hedged items designated in fair value hedging relationships:
At December 31, 2021
Carrying amount of the
hedged item
Accumulated amount of
fair value hedge
adjustments included in
the carrying amounts
Fair value changes used
as a basis to calculate
hedge ineffectiveness
($ million)
Assets
Liabilities
Assets
Liabilities
Fair value hedges:
Interest rate risk
1,100
23
23
At December 31, 2020
Carrying amount of the
hedged item
Accumulated amount of
fair value hedge
adjustments included in
the carrying amounts
Fair value changes used
as a basis to calculate
hedge ineffectiveness
($ million)
Assets
Liabilities
Assets
Liabilities
Fair value hedges:
Interest rate risk
—
1,346
—
68
68
The following table provides the effects of hedged items designated in cash flow hedging relationships:
At December 31, 2021
At December 31, 2020
($ million)
Cash flow hedge
reserve
(continuing
hedges)
Fair value changes
used as a basis to
calculate hedge
ineffectiveness
Cash flow hedge
reserve
(continuing hedges)
Fair value
changes used
as a basis to
calculate hedge
ineffectiveness
Cash flow hedges:
Foreign exchange risk
4
47
1
46
Interest rate risk
4
—
(29)
(32)
CNH Industrial  Consolidated Financial Statements at December 31, 2021    201
The following table provides further information about the effect of cash flow hedges on the consolidated equity of CNH
Industrial Pre-Demerger:
($ million)
Interest
rate risk
Foreign
exchange risk
Total cash
flow hedge
reserve
As of December 31, 2019
(10)
(39)
(49)
Gains/(losses) recognized in Other comprehensive income
(14)
75
61
Gains/(losses) reclassified from Other comprehensive income in Profit or loss
6
(30)
(24)
Income tax effect
1
(10)
(9)
As of December 31, 2020
(17)
(4)
(21)
Gains/(losses) recognized in Other comprehensive income
49
(26)
23
Gains/(losses) reclassified from Other comprehensive income in Profit or loss
(4)
14
10
Income tax effect
(18)
4
(14)
As of December 31, 2021
10
(12)
(2)
The following table provides an analysis by due date of the notional amount of outstanding derivative financial
instruments at December 31, 2021 and 2020:
At December 31, 2021
At December 31, 2020
($ million)
due
within
one year
due
between
one and
five
years
due
beyond
five
years
Total
due within
one year
due
between
one and
five years
due
beyond
five
years
Total
Currency risk
7,763
434
—
8,197
5,733
537
—
6,270
Interest rate risk
819
4,617
1,010
6,446
283
6,648
569
7,500
Total notional amount
8,582
5,051
1,010
14,643
6,016
7,185
569
13,770
19. Cash and cash equivalents
Cash and cash equivalents consist of:
($ million)
At December 31, 2021
At December 31, 2020
Cash at banks
4,581
7,513
Restricted cash
801
844
Money market securities and other cash equivalents
463
1,272
Total Cash and cash equivalents
5,845
9,629
At December 31, 2021, Total Cash and cash equivalents of $5,845 million referred to Continuing Operations. Cash and
cash equivalents of $1,017 million included as Assets held for distribution referred to Discontinued Operations.
Amounts shown are readily convertible into cash and are subject to an insignificant risk of changes in value. Restricted
cash mainly includes bank deposits that may be used exclusively for the repayment of the debt relating to
securitizations classified as Asset-backed financing.
The credit risk associated with Cash and cash equivalents is considered not significant, because it mainly relates to
deposits spread across primary national and international financial institutions.
20. Assets and Liabilities held for sale
This item may be analyzed as follows at December 31, 2021 and 2020:
($ million)
At December 31, 2021
At December 31, 2020
Assets held for sale
490
14
Liabilities held for sale
125
—
At December 31, 2021 the Group is committed to a plan to sell the Engineered Films and Aerostar business divisions,
acquired in the context of Raven acquisition, and has classified them as held for sale. 
CNH Industrial  Consolidated Financial Statements at December 31, 2021    202
Details of major balance sheet items included in the Assets and Liabilities held for sale are provided in the following
table:
($ million)
At December 31, 2021
Intangible assets
221
Property, plant and equipment
106
Inventories
45
Other receivables and assets
118
TOTAL ASSETS  HELD FOR SALE
490
Trade payables
70
Other payables and liabilities
55
TOTAL LIABILITIES HELD FOR SALE
125
Assets held for sale at December 31, 2020 primarily included buildings related to Iveco Group Business.
21. Equity
Share capital
The Articles of Association of CNH Industrial N.V. provide for authorized share capital of €40 million, divided into 2
billion common shares and 2 billion special voting shares to be held with associated common shares, each with a per
share par value of €0.01. As of December 31, 2021, the Company’s share capital was €18 million (equivalent to $25
million), fully paid-in, and consisted of 1,364,400,196 common shares (1,356,077,000 common shares outstanding, net
of 8,323,196 common shares held in treasury by the Company as described in the following section) and 396,474,276
special voting shares (371,218,250 special voting shares outstanding, net of 25,256,026 special voting shares held in
treasury by the Company as described in the section below).
Changes in the composition of the share capital of CNH Industrial during 2021 and 2020 are as follows:
(number of shares)
CNH Industrial
N.V. common
shares issued
Less:
Treasury
shares
CNH Industrial
N.V. common
shares
outstanding
CNH Industrial
N.V. loyalty
program special
voting shares
issued
Less:
Treasury
shares
CNH Industrial
N.V. loyalty
program
special voting
shares
outstanding
Total Shares
issued by
CNH Industrial
N.V.
Less:
Treasury
shares
Total CNH
Industrial N.V.
outstanding
shares
Total CNH
Industrial N.V.
shares at 
December 31,
2019
1,364,400,196
(14,268,079)
1,350,132,117
396,474,276
(8,523,110)
387,951,166
1,760,874,472
(22,791,189)
1,738,083,283
Capital increase
—
—
—
—
—
—
—
—
—
(Purchases)/Sales
of treasury shares
—
3,778,354
3,778,354
—
(16,623,012)
(16,623,012)
—
(12,844,658)
(12,844,658)
Total CNH
Industrial N.V.
shares at
December 31,
2020
1,364,400,196
(10,489,725)
1,353,910,471
396,474,276
(25,146,122)
371,328,154
1,760,874,472
(35,635,847)
1,725,238,625
Capital increase
—
—
—
—
—
—
—
—
—
(Purchases)/Sales
of treasury shares
—
2,166,529
2,166,529
—
(109,904)
(109,904)
—
2,056,625
2,056,625
Total CNH
Industrial N.V.
shares at
December 31,
2021
1,364,400,196
(8,323,196)
1,356,077,000
396,474,276
(25,256,026)
371,218,250
1,760,874,472
(33,579,222)
1,727,295,250
During the years ended December 31, 2021 and 2020, 109,904 and 16,623,012 special voting shares, respectively,
were acquired by the Company following the de-registration of the corresponding number of qualifying common shares
from the Loyalty Register, net of transfer and allocation of special voting shares in accordance with the Special Voting
Shares - Terms and Conditions.
Furthermore, during the years ended December 31, 2021 and 2020, the Company delivered 2.2 million and 3.8 million
common shares, respectively, under the Company’s stock compensation plan, primarily due to the vesting or exercise
of share-based awards. See paragraph below “Share-based compensation” for further discussion.
The Company is required to maintain a special capital reserve to be credited against the share premium exclusively for
the purpose of facilitating any issuance or cancellation of special voting shares. The special voting shares do not carry
CNH Industrial  Consolidated Financial Statements at December 31, 2021    203
any entitlement to the balance of the special capital reserve. The Board of Directors is authorized to resolve upon (i)
any distribution out of the special capital reserve to pay up special voting shares or (ii) re-allocation of amounts to credit
or debit the special capital reserve against or in favor of the share premium reserve.
The Company is required to maintain a separate dividend reserve for the special voting shares. The special voting
shares shall not carry any entitlement to any other reserve of the Company. Any distribution out of the special voting
shares dividend reserve or the partial or full release of such reserve will require a prior proposal from the Board of
Directors and a subsequent resolution of the general meeting of holders of special voting shares.
From the profits, shown in the annual accounts, as adopted, such amounts shall be reserved as the Board of Directors
may determine.
The profits remaining thereafter shall first be applied to allocate and add to the special voting shares dividend reserve
an amount equal to one percent (1%) of the aggregate nominal amount of all outstanding special voting shares. The
calculation of the amount to be allocated and added to the special voting shares dividend reserve shall occur on a time-
proportionate basis. If special voting shares are issued during the financial year to which the allocation and addition
pertains, then the amount to be allocated and added to the special voting shares dividend reserve in respect of these
newly issued special voting shares shall be calculated as from the date on which such special voting shares were
issued until the last day of the financial year concerned. The special voting shares shall not carry any other entitlement
to the profits.
Any profits remaining thereafter shall be at the disposal of the general meeting of shareholders for distribution of
dividend on the common shares only subject to the provision that the distribution of profits shall be made after the
adoption of the annual accounts, from which it appears that the same is permitted.
Subject to a prior proposal of the Board of Directors, the general meeting of shareholders may declare and pay
dividends in U.S. dollars. Furthermore, subject to the approval of the general meeting of shareholders and the Board of
Directors having been designated as the body competent to pass a resolution for the issuance of shares in accordance
with Article 5 of the Articles of Association, the Board of Directors may decide that a distribution shall be made in the
form of shares or that shareholders shall be given the option to receive a distribution either in cash or in the form of
shares.
On March 1, 2022, the Board of Directors of CNH Industrial N.V. recommended and proposed to the Company’s
shareholders that the Company declare a dividend of €0.28 per common share, totaling approximately €380 million
(equivalent to approximately $426 million, translated at the exchange rate reported by the European Central Bank on
February 25, 2022). The proposal is subject to the approval of the Company’s shareholders at the AGM to be held on
April 13, 2022.
On April 15, 2021, at the AGM, CNH Industrial N.V. shareholders approved a dividend of €0.11 per common share, as
recommended on March 3, 2021 by the Board of Directors. The cash dividend was declared in euro and paid on May 5,
2021 for a total amount of $178 million (€149 million).
The Company shall only have power to make distributions to shareholders and other persons entitled to distributable
profits to the extent the Company's equity exceeds the sum of the paid-up portion of the share capital and the reserves
that must be maintained in accordance with provision of law. No distribution of profits may be made to the Company
itself for shares that the Company holds in its own share capital.
The Board of Directors has the power to declare one or more interim dividends, provided that the requirements of the
Article 22 paragraph 5 of the Articles of Association are duly observed as evidenced by an interim statement of assets
and liabilities as referred to in Article 2:105 paragraph 4 of the Dutch Civil Code and provided further that the policy of
the Company on additions to reserves and dividends is duly observed. The provisions of the Article 22 paragraphs 2
and 3 of the Articles of Association shall apply mutatis mutandis.
The Board of Directors may determine that dividends or interim dividends, as the case may be, shall be paid, in whole
or in part, from the Company's share premium reserve or from any other reserve, provided that payments from reserves
may only be made to the shareholders that are entitled to the relevant reserve upon the dissolution of the Company.
Dividends and other distributions of profit shall be made payable in the manner and at such date(s) - within four weeks
after declaration thereof - and notice thereof shall be given, as the general meeting of shareholders, or in the case of
interim dividends, the Board of Directors shall determine, provided, however, that the Board of Directors shall have the
right to determine that each payment of annual dividends in respect of shares be deferred for a period not exceeding
five consecutive annual periods. Dividends and other distributions of profit, which have not been collected within five
years and one day after the same have become payable, shall become the property of the Company.
In the event of a winding-up, a resolution to dissolve the Company can only be passed by a general meeting of
shareholders pursuant to a prior proposal of the Board of Directors. In the event a resolution is passed to dissolve the
Company, the Company shall be wound-up by the Board of Directors, unless the general meeting of shareholders
would resolve otherwise.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    204
The general meeting of shareholders shall appoint and decide on the remuneration of the liquidators.
Until the winding-up of the Company has been completed, the Articles of Association of the Company shall to the extent
possible, remain in full force and effect.
Effects of the Demerger on the share capital of CNH Industrial N.V.
On January 1, 2022, the share capital of CNH Industrial N.V. did not change as result of the Demerger. CNH Industrial
N.V. also did not receive any shares in Iveco Group N.V. as a part of the Demerger, as the portion of the shares held in
treasury buy CNH Industrial N.V. was not eligible to be part of the Demerger and consequent allotment of Iveco Group
N.V. shares.
Policies and processes for managing capital
The objectives identified by the Group for managing capital are to create value for shareholders as a whole, safeguard
business continuity and support the growth of the Group. As a result, the Group endeavors to maintain an adequate
level of capital that at the same time enables it to obtain a satisfactory economic return for its shareholders and
maintain access to external sources of funds, including by means of achieving an adequate rating.
The Group regularly monitors its debt/equity ratio and in particular the level of net debt and the generation of cash from
Industrial Activities.
To reach these objectives the Group aims at a continuous improvement in the profitability of the business in which it
operates. Further, in general, the Group may sell part of its assets to reduce the level of its debt, while the Board of
Directors may make proposals to shareholders in general meeting to reduce or increase share capital or, where
permitted by law, to distribute reserves.
The Company shall at all times have the authority to acquire fully paid-up shares in its own share capital, provided that
such acquisition is made for no consideration (om niet).
The Company shall also have authority to acquire fully paid-up shares in its own share capital for consideration, if:
▪the general meeting of shareholders has authorized the Board of Directors to make such acquisition – which
authorization shall be valid for no more than eighteen months – and has specified the number of shares which may
be acquired, the manner in which they may be acquired and the limits within which the price must be set;
▪the Company's equity, after deduction of the acquisition price of the relevant shares, is not less than the sum of the
paid-up portion of the share capital and the reserves that have to be maintained by provision of law; and
▪the aggregate par value of the shares to be acquired and the shares in its share capital the Company already holds,
holds as pledgee or are held by a subsidiary, does not amount to more than one half of the aggregate par value of
the issued share capital.
If no annual accounts have been confirmed and adopted when more than six months have expired after the end of any
financial year, then the Group is not allowed any acquisition under Dutch law.
No authorization shall be required, if the Company acquires its own shares for the purpose of transferring the same to
directors or employees of the Company or a Group company as defined in Article 2:24b of the Dutch Civil Code, under
a scheme applicable to such employees. Such own shares must be officially listed on a price list of an exchange.
The preceding provisions shall not apply to shares which the Company acquires under universal title of succession
(algemene titel).
No voting rights may be exercised in the general meeting of shareholders for any share held by the Company or any of
its subsidiaries. Beneficiaries of a life interest on shares that are held by the Company and its subsidiaries are not
excluded from exercising the voting rights provided that the life interest was created before the shares were held by the
Company or any of its subsidiaries. The Company or any of its subsidiaries may not exercise voting rights for shares in
respect of which it holds a usufruct.
Any acquisition by the Company of shares that have not been fully paid up shall be void.
Any disposal of shares held by the Company requires approval of the Board of Directors. Such approval shall also
stipulate the conditions of the disposal.
Loyalty voting program
In order to reward long-term ownership of the Company’s common shares and promote stability of its shareholder base,
the Articles of Association of CNH Industrial N.V. provide for a loyalty-voting program that grants eligible long-term
shareholders the equivalent of two votes for each CNH Industrial N.V. common share that they hold. This has been
accomplished through the issuance of special voting shares.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    205
A shareholder may at any time elect to participate in the loyalty voting program by requesting the registration of all or
some of the common shares held by such shareholder in a separate register (the “Loyalty Register”) of the Company. If
such common shares have been registered in the Loyalty Register for an uninterrupted period of three years in the
name of the same shareholder, such shares will become “Qualifying Common Shares” and the relevant shareholder will
be entitled to receive one special voting share for each such Qualifying Common Share which can be retained only for
so long as the shareholder retains the associated common share and registers it in the Loyalty Register.
Shareholders are not required to pay any amount to the Company in connection with the allocation of the special voting
shares.
The common shares are freely transferable, while, special voting shares are transferable exclusively in limited
circumstances and they are not listed on the NYSE or the Euronext Milan. In particular, at any time, a holder of common
shares that are Qualifying Common Shares who wants to transfer such common shares other than in limited specified
circumstances (e.g., transfers to affiliates or relatives through succession, donation or other transfers) must request a
de-registration of such Qualifying Common Shares from the Loyalty Register. After de-registration from the Loyalty
Register, such common shares no longer qualify as Qualifying Common Shares and, as a result, the holder of such
common shares is required to transfer the special voting shares associated with the transferred common shares to the
Company for no consideration.
The special voting shares have minimal economic entitlements as the purpose of the special voting shares is to grant
long-term shareholders with an extra voting right by means of granting an additional special voting share, without
granting such shareholders with any additional economic rights. However, as a matter of Dutch law, such special voting
shares cannot be fully excluded from economic entitlements. Therefore, the Articles of Association provide that only a
minimal dividend accrues to the special voting shares, which is not distributed, but allocated to a separate special
dividend reserve. The impact of this special voting dividend reserve on the earnings per share of the common shares is
not material.
Treasury shares
In order to maintain the necessary operating flexibility over an adequate time period, including the implementation of the
program in place, on April 15, 2021, the Annual General Meeting (“AGM”) granted to the Board of Directors the authority
to acquire common shares in the capital of the Company through stock exchange trading on the Euronext Milan and the
NYSE or otherwise for a period of 18 months (i.e., up to and including October 14, 2022). Under such authorization the
Board’s authority is limited to a maximum of up to 10% of the issued common shares as of the date of the AGM and, in
compliance with applicable rules and regulations, subject to a maximum price per common share equal to the average
of the highest price on each of the five trading days prior to the date of acquisition, as shown in the Official Price List of
the Euronext Milan or NYSE (as the case may be) plus 10% (maximum price) and to a minimum price per common
share equal to the average of the lowest price on each of the five trading days prior to the date of acquisition, as shown
in the Official Price List of the Euronext Milan or NYSE (as the case may be) minus 10% (minimum price). Neither the
renewal of the authorization, nor the launch of any program obliges the Company to buy-back any common shares. The
launch of any new program will be subject to a further resolution of the Board of Director. In any event, such programs
may be suspended, discontinued or modified at any time for any reason and without previous notice, in accordance with
applicable laws and regulations.
During the year ended December 31, 2021, the Company repurchased no shares of its common stock on the Euronext
Milan and on multilateral trading facilities ("MTFs") under the buy-back program. As of December 31, 2021, the
Company held 8.3 million common shares in treasury, net of transfers of common shares to fulfill its obligations under
its stock compensation plans, at an aggregate cost of $80.6 million. Depending on market and business conditions and
other factors, the Company may continue or suspend purchasing its common stock at any time without notice.
At the 2022 Annual General Meeting of Shareholders, the Board of Directors intends to recommend to the Company’s
shareholders the renewal of the authorization to repurchase up to a maximum of 10% of the Company’s issued
common shares.
During the year ended December 31, 2021, the Company acquired 109,904 special voting shares following the de-
registration of qualifying common shares from the Loyalty Register, net of the transfer and allocation of special voting
shares to those shareholders whose qualifying common shares became eligible to receive special voting shares after
the uninterrupted three-year registration period in the Loyalty Register. As of December 31, 2021, the Company held
25.3 million special voting shares in treasury.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    206
Effects of the Demerger on the treasury shares held CNH Industrial N.V.
On January 1, 2022, CNH Industrial N.V. did not receive any shares in Iveco Group N.V. as a part of the Demerger as
the portion of the shares held in treasury by CNH Industrial N.V. was not eligible to be part of the Demerger and
consequent allotment of Iveco Group N.V. shares.
Capital reserves
At December 31, 2021 capital reserves, amounting to $3,294 million ($3,220 million at December 31, 2020), mainly
consisted of the share premium deriving from the merger occurred in 2013 between Fiat Industrial and its majority
owned subsidiary CNH Global.
Effects of the Demerger on the capital reserves of CNH Industrial N.V.
As a consequence of the Demerger, on January 1, 2022, capital reserves of CNH Industrial N.V. decreased by $2,581
million to $713 million.
Earnings reserves
Earnings reserves, amounting to $7,795 million at December 31, 2021 ($6,211 million at December 31, 2020), mainly
consist of retained earnings and profits attributable to the owners of the parent.
Effects of the Demerger on the earnings reserves of CNH Industrial N.V.
On January 1, 2022, there were no impacts on earnings reserves  as a results of the Demerger.
Other comprehensive income/(loss)
Other comprehensive income/(loss) consisted of the following:
($ million)
2021
2020
Other comprehensive income/(loss) that will not be reclassified subsequently to profit or loss:
Gains/(losses) on the remeasurement of defined benefit plans
134
(5)
Items related to Discontinued Operations
(89)
128
Total Other comprehensive income/(loss) that will not be reclassified subsequently to profit or
loss (A)
45
123
Other comprehensive income/(loss) that may be reclassified subsequently to profit or loss:
Gains/(losses) on cash flow hedging instruments arising during the period
13
26
(Gains)/losses on cash flow hedging instruments reclassified to profit or loss
11
(10)
Gains/(losses) on cash flow hedging instruments
24
16
Exchange gains/(losses) on translating foreign operations arising during the period
271
(716)
Exchange (gains)/losses on translating foreign operations reclassified to profit or loss
—
—
Exchange gains/(losses) on translating foreign operations
271
(716)
Share of Other comprehensive income/(loss) of entities accounted for using the equity method
arising during the period
(51)
1
Reclassification adjustment for the share of Other comprehensive income/(loss) of entities accounted
for using the equity method
—
—
Share of Other comprehensive income/(loss) of entities accounted for using the equity method
(51)
1
Items related to Discontinued Operations
(185)
107
Total Other comprehensive income/(loss) that may be reclassified subsequently to profit or loss
(B)
59
(592)
Tax effect (C)
(32)
10
Tax effect - Discontinued Operations (D)
(6)
(7)
Total Other comprehensive income/(loss), net of tax (A) + (B) + (C) + (D)
66
(466)
CNH Industrial  Consolidated Financial Statements at December 31, 2021    207
The income tax effect for each component of Other comprehensive income/(loss) consisted of the following:
2021
2020
($ million)
Before
tax
amount
Tax
(expense)/
benefit
Net-of-
tax
amount
Before
tax
amount
Tax
(expense)/
benefit
Net-of-
tax
amount
Other comprehensive income/(loss) that will not be reclassified
subsequently to profit or loss:
Gains/(losses) on the remeasurement of defined benefit plans
134
(23)
111
(5)
13
8
Items related to Discontinued Operations
(89)
(1)
(90)
128
(1)
127
Total Other comprehensive income/(loss) that will not be reclassified
subsequently to profit or loss
45
(24)
21
123
12
135
Other comprehensive income/(loss) that may be reclassified
subsequently to profit or loss:
Gains/(losses) on cash flow hedging instruments
24
(9)
15
16
(3)
13
Exchange gains/(losses) on translating foreign operations
271
—
271
(716)
—
(716)
Share of Other comprehensive income/(loss) of entities accounted for
using the equity method
(51)
—
(51)
1
—
1
Items related to Discontinued Operations
(185)
(5)
(190)
107
(6)
101
Total Other comprehensive income/(loss) that may be reclassified
subsequently to profit or loss
59
(14)
45
(592)
(9)
(601)
Total Other comprehensive income/(loss)
104
(38)
66
(469)
3
(466)
Share-based compensation
For the years ended December 31, 2021 and 2020, Continuing Operations recognized total share-based compensation
expense of $78 million and $31 million, respectively. For the years ended December 31, 2021 and 2020, Continuing
Operations recognized a total tax benefit relating to share-based compensation expense of $3 million and $2 million,
respectively. As of December 31, 2021, Continuing Operations had unrecognized share-based compensation expense
related to non-vested awards of approximately $37 million based on current assumptions related to achievement of
specified performance objectives, when applicable. Unrecognized share-based compensation costs will be recognized
over a weighted-average period of 2.1 years.
CNH Industrial’s equity awards are governed by the CNH Industrial N.V. Equity Incentive Plan (“CNH Industrial EIP”)
and CNH Industrial N.V. Directors’ Compensation Plan (“CNH Industrial DCP”).
At the AGM held on April 16, 2014, the Company’s shareholders approved the adoption of the CNH Industrial EIP, an
umbrella program defining the terms and conditions for any subsequent long-term incentive program. The EIP allows
grants of the following specific types of equity awards to any current or prospective executive director, officer, employee
of, or service provider to, CNH Industrial: stock options, stock appreciation rights, restricted share units, restricted stock,
performance shares or performance share units and other stock-based awards that are payable in cash, common
shares or any combination thereof subject to the terms and conditions established by the Compensation Committee.
In February 2020, the Board of Directors approved the issuance of up to 50 million common shares under the EIP. At
the AGM on April 16, 2020, the Company's shareholders approved the issuance of up to 7 million common shares to
executive directors under the 2021-2023 Long-Term Incentive Plan (described below) in accordance with and under the
EIP.
As part of the Demerger, any awards outstanding under the CNH Industrial EIP, and held by directors, officers and other
employees vesting in 2022 were accelerated in December 2021 and the related equity incentives were issued by CNH
Industrial in CNH Industrial stock. As a result of the Demerger, remaining outstanding awards vesting in 2023 and 2024
were converted to the entity the participant is employed with post spin. As such, for Iveco Group employees, the
underlying stock awards under the CNH Industrial EIP vesting in 2023 and 2024 were converted at the effective date of
the Demerger, subject to its terms, to Common Shares of Iveco Group N.V. The conversion of the CNH Industrial EIP
includes appropriate adjustment mechanisms to ensure that the value of the unvested awards granted to all the
beneficiaries under such plan remain unchanged pre and post demerger for employees in both the Iveco Group N.V.
and CNH Industrial N.V.
Performance Share Units
2017-2019 Long-Term Incentive Plan
In December 2017, CNH Industrial canceled all Performance Share Units ("PSU’s") issued in 2014, 2015 and 2016 and
issued a grant of PSU’s to key executive officers and select  employees, with financial performance goals covering the
three-year period from January 1, 2017 to December 31, 2019. The performance goal was a market condition with a
CNH Industrial  Consolidated Financial Statements at December 31, 2021    208
payout schedule ranging from 0% to 130%. In 2019 and 2020, prorated share amounts covering performance through
this same period were issued to select new employees entering the plan. In 2019 and 2020, 0.6 million and 0.4 million
additional PSU's were granted. On February 28, 2020 all PSU’s associated with these grants failed to meet their
performance goals and were therefore forfeited. CNH Industrial still incurred the expense associated with these awards
but the awards themselves were never issued to their recipients.
2021-2023 Long-Term Incentive Plan
In February 2020, the Board of Directors approved the 2021-2023 Long-Term Incentive Plan under the EIP. In
December 2020, CNH Industrial issued a new grant of PSUs to its key executive officers and select employees with the
financial performance goals covering a three-year period culminating with a cliff vest date of February 28, 2024. Two
internal financial metrics, Industrial ROIC (the ratio of Adjusted EBIT (after-tax) over Average Industrial Invested Capital)
and Adjusted EPS (the net income (loss) excluding any nonrecurring items (after-tax), divided by the weighted average
outstanding number of common shares on a fully diluted basis), weighted 50% each, and a multiplier-based on CNH
Industrial’s percentile ranking of Total Shareholder Return among a comparator group, will determine the total PSUs
earned. The internal financial metrics have a payout factor of up to 200% and the market based TSR determinant has a
payout factor of 125%. These metrics are considered performance vesting conditions. As such, compensation cost will
be accrued based on whether it is considered probable that the performance conditions will be satisfied. The fair value
of the PSU awards issued under this plan will be calculated by using the CNH Industrial N.V. stock price on the grant
date adjusted for the present value of future dividends that would not be received during the vesting period.
As of December 31, 2020 CNH Industrial issued 7 million PSUs. The total number of shares that will eventually be
issued may vary from the original estimate due to forfeiture or the level of achievement of the performance goals.
The weighted average fair value of the awards that were issued in 2020 was $10.83 per share. The 2020 PSU awards
distributed under this plan were issued on December 4, 2020 to key executive officers and select employees and on
December 14, 2020 to the Chair of CNH Industrial.
During 2021, CNH Industrial issued an additional 3 million PSUs to key executive officers and select employees. The
weighted average fair value of the awards that were issued in 2021 was $13.15 per share.
The following table reflects the activity of PSUs under the 2017-2019 Long-Term Incentive Plan and 2021-2023 Long-
Term Incentive Plan for the years ended December 31, 2021 and 2020:
2021
2020
Performance
shares
Weighted
average
grant date
fair value
(in $)
Performance shares
Weighted
average
grant date
fair value
(in $)
Nonvested at beginning of year
6,931,030
10.83
4,883,479
7.82
Granted
3,035,985
13.15
6,931,030
10.83
Forfeited/Cancelled
(545,790)
10.83
(4,883,479)
7.82
Vested
—
—
—
—
Nonvested at end of year
9,421,225
11.55
6,931,030
10.83
Restricted Share Units
In 2019, 2020 and 2021 CNH Industrial issued approximately 0.8 million, 8 million, and 1 million Restricted Share Units
(“RSUs”) to key executive officers and select employees with a weighted average fair value of $9.95, $10.90 and
$14.42 per share, respectively. The fair value of the award is measured using the CNH Industrial N.V. stock price on the
grant date adjusted for the present value of future dividends that employees will not receive during the vesting period.
The RSUs vest upon a time-based service requirement.
2017-2019 Long-Term Incentive Plan
On April 3, 2019, 536 thousand RSUs were issued to select key executive officers with a weighted average fair value of
$10.18 measured using the stock price on the grant date adjusted for the present value of future dividends that would
not be received during the vesting period. The grant had a cliff vest date of February 1, 2021 for all awards except for
32 thousand RSUs, which vested on June 30, 2020. Of the remaining 490 thousand RSUs, 162 thousand were forfeited
in the second quarter of 2020. The remaining 296 thousand RSUs vested on February 1, 2021.
2021-2023 Long-Term Incentive Plan
On December 4, 2020, CNH Industrial issued two separate RSU grants to key executive officers and select employees.
Under the first RSU grant, 1.7 million RSUs were awarded to select employees with a weighted average fair value of
$11.43. These awards vested on December 31, 2020. Under the second RSU grant, 5 million RSUs were awarded to
select employees and are set to vest in three equal installments over a three year period. The first tranche which
CNH Industrial  Consolidated Financial Statements at December 31, 2021    209
consisted of 1.7 million RSUs was set to vest on April 30, 2022. The second and third tranches are set to vest on April
30, 2023 and April 30, 2024, respectively. The weighted average fair value for the December 2020 three tranche award
group are $11.23, $11.02, and $10.82, respectively.
On December 14, 2020, CNH Industrial issued 120 thousand RSUs to the Chair of CNH Industrial, of which 17
thousand vested on December 31, 2020. The weighted average fair value for these awards is $10.96. The remaining
103 thousand RSUs vest in three equal installments on February 28, 2022, 2023, and 2024, respectively. The fair value
for these awards are $10.76, $10.55 and $10.35, respectively.
During 2021, CNH Industrial issued an additional 1.5 million RSUs to select employees and key executive officers. Of
the awards that were issued, 1.2 million are set to vest in three equal installments over a three year period. The first
tranche, which consists of 0.4 million RSUs, was set to vest on April 30, 2022. The second and third tranches are set to
vest on April 30, 2023 and April 30, 2024, respectively. The weighted average fair value of these awards are $14.08 per
share for the first tranche, $13.89 per share for the second tranche, and $13.71 per share for the third tranche. The
remaining awards issued in 2021 had a cumulative weighted average fair value of $16.71.  In 2021, CNH Industrial, in
anticipation of the Demerger, accelerated the vesting of awards with a vest date of April 31, 2022 to December 1, 2021,
excluding shares awarded to the CEO and Chairperson. As a result CNH Industrial recorded $6 million of expense due
to the acceleration of these awards. The weighted average fair value of the shares vested during 2021 was $11.59 per
share.
The following table reflects the activity of RSUs under the 2017-2019 Long-Term Incentive Plan and 2021-2023 Long-
Term Incentive Plan for the years ended December 31, 2021 and 2020:
2021
2020
Restricted
shares
Weighted
average grant
date fair value
(in $)
Restricted shares
Weighted
average grant
date fair value
(in $)
Nonvested at beginning of year
5,443,197
10.95
1,842,667
11.69
Granted
1,464,305
14.42
7,727,755
10.90
Forfeited
(396,086)
11.88
(380,221)
10.79
Vested
(2,141,337)
11.59
(3,747,004)
11.22
Nonvested at end of year
4,370,079
11.72
5,443,197
10.95
CNH Industrial N.V. Directors’ Compensation Plan (“CNH Industrial DCP”)
On September 9, 2013, the CNH Industrial DCP was approved by the shareholders and adopted by the Board of
Directors of CNH Industrial N.V. On April 14, 2017, shareholders approved a proposed amendment to the CNH
Industrial DCP pursuant to which non-executive directors would only be paid cash compensation for their service as a
director. The CNH Industrial DCP provides for the payment of the following to eligible members of the CNH Industrial
N.V. Board in the form of cash, provided that such members do not receive salary or other employment compensation
from CNH Industrial N.V. or FCA, and their subsidiaries and affiliates:
▪$125,000 annual retainer fee for each Non-Executive Director.
▪An additional $25,000 for each member of the Audit Committee and $35,000 for the Audit Committee Chairperson.
▪An additional $20,000 for each member of every other Board committee and $25,000 for the committee chairperson
(collectively, the “fees”).
Prior to the amendment of the CNH Industrial DCP, each quarter of the CNH Industrial DCP year, the eligible directors
could elect to receive cash, common shares or stock options.
There were 0.2 million common shares authorized for issuance under the CNH Industrial DCP. No stock options were
issued under this plan in 2021 or 2020 and as of December 31, 2021, no stock options were outstanding under the
CNH Industrial DCP.
22. Provisions for employee benefits
CNH Industrial provides pension, healthcare and insurance plans and other post-employment benefits to their
employees and retirees, either directly or by contributing to independently administered funds. The way these benefits
are provided varies according to the legal, fiscal and economic conditions of each country in which the Group operates,
the benefits generally being based on the employees’ remuneration and years of service. CNH Industrial provides post-
employment benefits under defined contribution and defined benefit plans.
In the case of defined contribution plans, CNH Industrial makes contributions to publicly or privately administered
pension insurance plans on a mandatory, contractual or voluntary basis. Once the contributions have been made, CNH
CNH Industrial  Consolidated Financial Statements at December 31, 2021    210
Industrial has no further payment obligations. CNH Industrial recognizes the contribution cost when the employees
have rendered their service and includes this cost by function in Cost of sales, Selling, general and administrative costs
and Research and development costs. During the years ended December 31, 2021 and 2020, CNH Industrial recorded
expenses of $315 million and $261 million, respectively, for its defined contribution plans, inclusive of social security
contributions.
Defined benefit plans may be unfunded, or they may be wholly or partly funded by contributions made by an entity, and
sometimes by its employees, into an entity, or fund, that is legally separate from the employer from which the employee
benefits are paid. Benefits are generally payable under these plans after the completion of employment. Defined benefit
plans are classified by CNH Industrial on the basis of the type of benefit provided as follows: Pension plans, Healthcare
plans, and Other post-employment benefits.
Pension plans
Pension obligations primarily comprise the obligations of CNH Industrial’s pension plans in the U.S., the U.K., and
Germany.
Under these plans, contributions are made to a separate fund (trust) that independently administers the plan assets.
CNH Industrial’s funding policy is to contribute amounts to the plan equal to the amounts required to meet the minimum
funding requirements pursuant to the laws of the applicable jurisdictions. The significant pension plans that we are
required to fund are in the United States and the U.K. CNH Industrial may also choose to make discretionary
contributions in addition to the funding requirements. To the extent that a fund is overfunded, the Group is not required
to make further contribution to the plan in respect of minimum performance requirements so long as the fund is in
surplus.
In the fourth quarter of 2020, CNH Industrial signed group annuity contracts to transfer the outstanding pension benefit
obligations related to certain retirees and beneficiaries within the U.S. plans. In connection with these transactions,
$551 million of plan obligations were transferred along with $550 million of plan assets; the related non-cash settlement
impact recognized in the income statement in the fourth quarter of 2020 was immaterial.
Healthcare plans
Healthcare plan obligations comprise obligations for healthcare and insurance plans granted to CNH Industrial
employees working in the U.S. and Canada. These plans generally cover employees retiring on or after reaching the
age of 55 who have completed at least 10 years of employment. CNH Industrial U.S. salaried and non-represented
hourly employees and Canadian employees hired after January 1, 2001 and January 1, 2002, respectively, are not
eligible for postretirement healthcare and life insurance benefits under the CNH Industrial plans. These benefits may be
subject to deductibles, co-payment provisions and other limitations, and CNH Industrial has reserved the right to
change or terminate these benefits, subject to the provisions of any collective bargaining agreement. These plans are
not required to be funded. However, beginning in 2007, CNH Industrial began making contributions on a voluntary basis
to a separate and independently managed fund established to finance the North American healthcare plans.
In 2021, CNH Industrial communicated plan changes for the US retiree medical plan. The plan changes resulted in a
reduction of the plan liability by $100 million, recognized immediately in profit or loss as a pre-tax plan amendment gain
of the same amount.
Other post-employment benefits
Other post-employment benefits consist of obligations for Italian Employee Leaving Entitlements up to December 31,
2006, loyalty bonus in Italy and various other similar plans in France, Germany and Belgium. Until December 31, 2006,
Italian companies with more than 50 employees were required to accrue for benefits paid to employees upon them
leaving Italian legal entities. The scheme has since changed to a defined contribution plan. The obligation on our
consolidated balance sheet represents the residual reserve for years until December 31, 2006. Loyalty bonus is
accrued for employees who have reached certain service seniority and are generally settled when employees leave the
company. These plans are not required to be funded and, therefore, have no plan assets.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    211
Provisions for employee benefits at December 31, 2021 and 2020 are as follows:
($ million)
At December 31, 2021
At December 31, 2020
Post-employment benefits:
Pension plans
405
887
Healthcare plans
150
273
Other
80
347
Total Post-employment benefits
635
1,507
Other provisions for employees
276
253
Other long-term employee benefits
28
104
Total Provision for employee benefits
939
1,864
Defined benefit plan assets
19
25
Total Defined benefit plan assets
19
25
At December 31, 2021, Provision for employee benefits of $939 million and Defined benefit plan assets of $19 million
referred to Continuing Operations. With reference to Discontinued Operations, at December 31, 2021, Provision for
employee benefits of $704 million were classified as Liabilities held for distribution and Defined benefit plan assets of
$17 million were classified as Assets held for distribution.
The item Other provisions for employees consists of the best estimate at the balance sheet date of short-term
employee benefits payable by the Group within twelve months from the end of the period in which the employees
render the related service.
The item Other long-term employee benefits consists of the Group’s obligation for those benefits generally payable
during employment on reaching a certain level of seniority in the company or when a specified event occurs, and
reflects the probability of payment and the length of time over which this will be made.
In 2021 and 2020 changes in Other provisions for employees and in Other long-term employee benefits are as follows:
($ million)
At December
31, 2020
Provision
Utilization
Change in the
scope of
consolidation
and other
changes
Transfer to
Liabilities held
for distribution
At December
31, 2021
Other provisions for employees
253
309
(129)
(9)
(148)
276
Other long-term employee benefits
104
11
(6)
(9)
(72)
28
Total
357
320
(135)
(18)
(220)
304
($ million)
At December
31, 2019
Provision
Utilization
Change in the
scope of
consolidation
and other
changes
At December 31,
2020
Other provisions for employees
130
166
(86)
43
253
Other long-term employee benefits
95
9
(9)
9
104
Total
225
175
(95)
52
357
CNH Industrial  Consolidated Financial Statements at December 31, 2021    212
Post-employment benefits
The amounts recognized in the statement of financial position for post-employment benefits at December 31, 2021 and
2020 are as follows:
Pension plans
Healthcare plans(1)
Other(1)
At December 31,
At December 31,
At December 31,
($ million)
2021
2020
2021
2020
2021
2020
Present value of obligations
1,840
2,658
279
418
80
347
Less: Fair value of plan assets
(1,475)
(1,809)
(129)
(145)
—
—
Deficit/(surplus)
365
849
150
273
80
347
Effect of the asset ceiling
21
13
—
—
—
—
Net liability/(Net asset)
386
862
150
273
80
347
Reimbursement rights
—
1
—
—
—
—
Amounts at year-end:
Liabilities
405
887
150
273
80
347
Assets
(19)
(25)
—
—
—
—
Net liability
386
862
150
273
80
347
(1) The healthcare and other post-employment plans are not required to be prefunded.
Changes in the present value of post-employment obligations in 2021 and 2020 are as follows:
Pension plans
Healthcare plans(1)
Other(1)
($ million)
2021
2020
2021
2020
2021
2020
Present value of obligation at the beginning of the year
2,658
2,937
418
412
347
332
Current service cost
20
20
4
4
9
9
Interest expense
22
44
6
10
—
1
Other costs (income)
4
5
—
2
—
—
Contribution by plan participants
3
3
6
5
—
—
Remeasurements:
Actuarial losses/(gains) from changes in demographic assumptions
(13)
24
1
(1)
(4)
(2)
Actuarial losses/(gains) from changes in financial assumptions
(64)
212
(14)
20
1
2
Other remeasurements
(17)
(19)
(7)
1
5
(5)
Total remeasurements
(94)
217
(20)
20
2
(5)
Exchange rate differences
(70)
123
—
1
(26)
30
Benefits paid
(104)
(142)
(36)
(37)
(26)
(20)
Past service cost
—
2
(100)
1
—
—
Change in scope of consolidation
—
—
10
—
—
—
Curtailments
—
—
—
—
—
—
Settlements(2)
—
(551)
—
—
—
—
Other changes
1
—
(1)
—
(1)
—
Transfer to Liabilities held for distribution
(600)
—
(8)
—
(225)
—
Present value of obligation at the end of the year
1,840
2,658
279
418
80
347
(1)The healthcare and other post-employment plans are not required to be prefunded.
(2)Settlements include in 2020 the impact of the transfer of the outstanding pension benefit obligations related to certain retirees and beneficiaries within
the U.S. plans through group annuity contracts purchases in the fourth quarter of 2020 .
Other remeasurements mainly include in 2021 and 2020 the amount of experience adjustments.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    213
Changes in the fair value of plan assets for post-employment benefits in 2021 and 2020 are as follows:
Pension plans
Healthcare plans(1)
($ million)
2021
2020
2021
2020
Fair value of plan assets at the beginning of the year
1,809
2,098
145
152
Interest income
18
36
2
4
Remeasurements:
Return on plan assets
70
197
7
13
Total remeasurements
70
197
7
13
Exchange rate differences
(32)
71
—
—
Contribution by employer
52
70
(15)
(15)
Contribution by plan participants
3
3
—
—
Benefits paid
(78)
(116)
(10)
(9)
Change in scope of consolidation
—
—
—
—
Settlements(2)
—
(550)
—
—
Other changes
(1)
—
—
—
Transfer to Liabilities held for distribution
(366)
—
—
—
Fair value of plan assets at the end of the year
1,475
1,809
129
145
(1)The healthcare plans are not required to be prefunded.
(2)Settlements include in 2020 the impact of the transfer of the outstanding pension benefit obligations related to certain retirees and beneficiaries within
the U.S. plans through group annuity contracts purchases in the fourth quarter of 2020.
Net benefit cost/(income) recognized during 2021 and 2020 for post-employment benefits is as follows:
Pension plans
Healthcare plans
Other
($ million)
2021
2020
2021
2020
2021
2020
Service cost:
Current service cost
12
13
4
4
4
4
Past service cost and (gains)/losses from curtailments
and settlements(1)
—
1
(100)
1
—
Total Service cost
12
14
(96)
5
4
4
Net interest expense
3
6
3
6
—
0
Other costs (income)
3
4
1
1
—
—
Net benefit cost/(income) recognized to profit or loss
18
24
(92)
12
4
4
Remeasurements:
Return on plan assets
(51)
(172)
(7)
(13)
—
—
Actuarial losses/(gains) from changes in demographic assumptions
(1)
23
1
(1)
(6)
(2)
Actuarial losses/(gains) from changes in financial assumptions
(39)
181
(13)
20
—
0
Change in irrecoverable surplus and other
9
(5)
—
—
(1)
(3)
Other remeasurements
(17)
(22)
(8)
1
(1)
(2)
Total remeasurements
(99)
5
(27)
7
(8)
(7)
Exchange rate differences
(19)
28
1
—
(7)
9
Net benefit cost/(income) recognized to other comprehensive income
(118)
33
(26)
7
(15)
2
Total net benefit cost/(income) recognized during the year
(100)
57
(118)
19
(11)
6
(1)In 2021, Past service cost and (gains)/losses from curtailments and settlements included the pre-tax gain of $30 million related to a healthcare plan
amendment in the U.S.
The following summarizes data from CNH Industrial’s defined benefit pension plans by significant geographical area for
the years ended December 31, 2021 and 2020:
CNH Industrial  Consolidated Financial Statements at December 31, 2021    214
U.S.
U.K.
Germany(1)
 Other Countries(1)
($ million)
2021
2020
2021
2020
2021
2020
2021
2020
Change in benefit obligations:
Present value of obligation at the
beginning of the year
177
666
1,608
1,488
449
424
424
359
Current service cost
3
4
—
—
4
4
13
12
Interest expense
4
16
16
24
1
2
1
2
Other costs
1
2
2
1
—
—
1
2
Contribution by plan participants
—
—
—
—
—
—
3
3
Remeasurements
(14)
80
(27)
99
(26)
6
(27)
32
Benefits paid
3
(41)
(62)
(60)
(25)
(25)
(20)
(16)
Past service costs
—
2
—
—
—
—
—
—
Settlements(2)
—
(551)
—
—
—
—
—
—
Exchange rate differences and other
—
(1)
(19)
56
(31)
38
(19)
30
Transfer to Liabilities held for
distribution
—
—
(230)
—
(215)
—
(155)
—
Present value of obligation at the end
of the year
174
177
1,288
1,608
157
449
221
424
Change in the fair value of plans assets:
Fair value of plan assets at the
beginning of the year
204
700
1,230
1,067
7
7
368
324
Interest income
4
17
12
17
—
—
2
2
Remeasurements
(7)
78
51
102
(1)
—
27
17
Contribution by employer
—
—
41
59
—
—
11
11
Contribution by plan participants
—
—
—
—
—
—
3
3
Benefits paid
4
(41)
(62)
(60)
—
—
(20)
(15)
Settlements(2)
—
(550)
—
—
—
—
—
—
Exchange rate differences and other
—
—
(16)
45
—
—
(17)
26
Transfer to Liabilities held for
distribution
—
—
(199)
—
—
—
(167)
—
Fair value of plan assets at the end of
the year
205
204
1,057
1,230
6
7
207
368
Funded status
31
27
(231)
(378)
(151)
(442)
(14)
(56)
(1)Pension benefits in Germany and some other countries are not required to be prefunded.
(2)Settlements include in 2020 the impact of the transfer of the outstanding pension benefit obligations related to certain retirees and beneficiaries within
the U.S. plans through group annuity contract purchases in the fourth quarter of 2020.
Changes in the effects of the asset ceiling for 2021 and 2020 are as follows:
Pension plans
Healthcare plans
($ million)
2021
2020
2021
2020
Effect of the asset ceiling at the beginning of the year
13
17
—
—
Other comprehensive (income)/loss
9
(5)
—
—
Other increase/(decrease)
(1)
1
—
—
Effect of the asset ceiling at the end of the year
21
13
—
—
The weighted average durations of post-employment benefits obligations are as follows:
N° of years
Pension plans
15
Healthcare plans
9
Other
10
CNH Industrial  Consolidated Financial Statements at December 31, 2021    215
Assumptions
The following assumptions were utilized in determining the funded status at December 31, 2021 and 2020, and the
expense of CNH Industrial’s defined benefit plans for the years ended December 31, 2021 and 2020:
Assumptions used to determine funded status at year-end
At December 31, 2021
At December 31, 2020
(in %)
Pension
plans
Healthcare
plans
Other
Pension
plans
Healthcare
plans
Other
Weighted-average discount rates
1.63
2.54
0.90
1.12
2.12
0.43
Weighted-average rate of compensation increase
2.12
n/a
2.13
2.07
n/a
1.84
Weighted-average, initial healthcare cost trend rate
n/a
4.18
n/a
n/a
4.39
n/a
Weighted-average, ultimate healthcare cost trend rate(*)
n/a
3.58
n/a
n/a
3.95
n/a
Assumptions used to determine expense at year-end
At December 31, 2021
At December 31, 2020
(in %)
Pension
plans
Healthcare
plans
Other
Pension
plans
Healthcare
plans
Other
Weighted-average discount rates – current service cost
0.71
2.46
0.59
1.07
3.15
0.81
Weighted-average discount rates – interest cost
0.85
1.53
0.36
1.62
2.58
0.57
Weighted-average rate of compensation increase
2.07
n/a
1.84
2.99
n/a
1.88
Weighted-average, initial healthcare cost trend rate
n/a
4.39
n/a
n/a
4.68
n/a
Weighted-average, ultimate healthcare cost trend rate(*)
n/a
3.95
n/a
n/a
4.20
n/a
(*) CNH Industrial expects to achieve the ultimate healthcare cost trend rate in 2028 for U.S. plans. A flat trend rate assumption is utilized for the Canada
plans.
Assumed discount rates are used in measurements of pension, healthcare and other post-employment benefit
obligations and net interest on the net defined benefit liability/asset. CNH Industrial selects its assumed discount rates
based on the consideration of equivalent yields on high-quality fixed income investments at the measurement date. The
assumed discount rate is used to discount future benefit obligations back to today’s dollars. The discount rates for the
U.S., European, U.K. and Canadian obligations are based on a benefit cash flow-matching approach and represent the
rates at which the benefit obligations could effectively be settled as of the measurement date, December 31. The
benefit cash flow-matching approach involves analyzing CNH Industrial’s projected cash flows against a high-quality
bond yield curve, mainly calculated using a wide population of AA-grade corporate bonds subject to minimum amounts
outstanding and meeting other defined selection criteria. The discount rates for the CNH Industrial’s remaining
obligations are based on benchmark yield data of high-quality fixed income investments for which the timing and
amounts of payments approximate the timing and amounts of projected benefit payments.
The assumed healthcare trend rate represents the rate at which healthcare costs are assumed to increase. Rates are
determined based on CNH Industrial’s specific experience, consultation with actuaries and outside consultants, and
various trend factors including general and healthcare sector-specific inflation projections from the United States
Department of Health and Human Services Healthcare Financing Administration. The initial trend is a short-term
assumption based on recent experience and prevailing market conditions. The ultimate trend is a long-term assumption
of healthcare cost inflation based on general inflation, incremental medical inflation, technology, new medicine,
government cost-shifting, utilization changes, an aging population, and a changing mix of medical services.
CNH Industrial reviews annually mortality assumptions and demographic characteristics of its U.S. pension plan
participants. At December 31, 2018 the Company has decided to use the variant of blue-collar table RP-2014 (with
mortality improvement scale MP-2014 removed) as the base mortality table for the US pension plans and the no-collar
variant RPH-2014 (with MP-2014 removed) as the base mortality table for the US healthcare plans together with the
MP-2018 mortality improvement scale.
In October 2019, the SOA issued an updated mortality base table ("Pri-2012") as well as an updated mortality
improvement scale (“MP-2019”). In 2019, CNH Industrial adopted the variant of blue-collar tables of the Pri-2012 for the
US pension plans and the no collar variant of the PriH-2012 for the US healthcare plans, including the new survivor
mortality as well as MP-2019 mortality improvement scale. The adoption of the new mortality assumptions resulted in a
total decrease of $14 million to CNH Industrial’s benefit obligations at December 31, 2019, of which, $11 million and $3
million were related to pension plans and healthcare plans, respectively.
In 2020, CNH Industrial adopted the no-collar variant of the Pri-2012 base table for the US pension plans subsequent to
the settlement of a portion of the outstanding pension obligation through purchase of annuity contracts. Additionally,
CNH Industrial adopted the updated mortality improvement scale issued by the SOA ("MP-2020"). Management
believes the new mortality assumptions most appropriately represent its plans’ experience and characteristics. The
adoption of the new mortality assumptions resulted in a total increase of $7.8 million to CNH Industrial’s benefit
CNH Industrial  Consolidated Financial Statements at December 31, 2021    216
obligations at December 31, 2020, of which an increase of $8.6 million, and a decrease of $0.8 million were related to
pension plans and healthcare plans, respectively.
In 2021, the Company adopted the updated mortality improvement scale issued by the SOA ("MP-2021"). The adoption
of the new mortality assumptions resulted in a total increase of $1.3 million to the Company’s benefit obligations at
December 31, 2021, of which $0.5 million and $0.8 million were related to pension plans and healthcare plans,
respectively.
CNH Industrial uses the spot yield curve approach to estimate the service cost and net interest components by applying
the specific spot rates along the yield curve used to determine the benefit obligations to relevant projected cash
outflows.
Assumed discount rates and healthcare cost trend rates have a significant effect on the amount recognized in the 2021
financial statements. A one percentage point change in the assumed discount rates would have the following effects:
($ million)
One percentage
point increase
One percentage
point decrease
Effect on pension plans defined benefit obligation at December 31, 2021
(235)
296
Effect on healthcare defined benefit obligation at December 31, 2021
(17)
20
A one percentage point change in the assumed healthcare cost trend rates would have the following effect:
($ million)
One percentage
point increase
One percentage
point decrease
Effect on healthcare defined benefit obligation at December 31, 2020
17
(15)
Plan assets
The investment strategy for the plan assets depends on the features of the plan and on the maturity of the obligations.
Typically, less mature plan benefit obligations are funded by using more equity securities as they are expected to
achieve long-term growth exceeding the rate of inflation. More mature plan benefit obligations are funded using more
fixed income securities as they are expected to produce current income with limited volatility. Risk management
practices include the use of multiple asset classes and investment managers within each asset class for diversification
purposes. Specific guidelines for each asset class and investment manager are implemented and monitored. Plan
assets do not include treasury shares of CNH Industrial N.V. or properties occupied by Group companies.
The fair value of plan assets at December 31, 2021 may be disaggregated by asset class and level as follows. Fair
value levels presented below are described in the “Significant accounting policies – Fair value measurement” section of
these Notes.
Fair value of plan assets at December 31, 2021
($ million)
Total
Level 1
Level 2
Level 3
Fixed income securities:
U.S. government bonds
72
72
—
—
U.S. corporate bonds
7
—
7
—
Non-U.S. government bonds
40
9
31
—
Non-U.S. corporate bonds
18
—
18
—
Total Fixed income securities
137
81
56
—
Other types of investments:
Mutual funds(1)
1,385
—
1,385
—
Insurance contracts
47
—
—
47
Total Other types of investments
1,432
—
1,385
47
Cash
35
15
20
Total
1,604
96
1,461
47
(1)  This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds.
The fair value of the plan assets at December 31, 2020 may be disaggregated by asset class and level as follows. Fair
value levels presented below are described in the “Significant accounting policies – Fair value measurement” section of
these Notes.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    217
Fair value of plan assets at December 31, 2020
($ million)
Total
Level 1
Level 2
Level 3
Fixed income securities:
U.S. government bonds
32
30
2
—
U.S. corporate bonds
42
5
37
—
Non-U.S. government bonds
49
10
39
—
Non-U.S. corporate bonds
25
—
25
—
Total Fixed income securities
148
45
103
—
Other types of investments:
Mutual funds(1)
1,582
21
1,561
—
Insurance contracts
202
—
—
202
Total Other types of investments
1,784
21
1,561
202
Cash
22
10
12
—
Total
1,954
76
1,676
202
(1)  This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds.
Contribution
CNH Industrial expects to contribute approximately $53 million to its pension plans in 2022, related to Continuing
Operations.
The benefit expected to be paid from the benefit plans, which reflect expected future years of service, and the Medicare
subsidy expected to be received related to Continuing Operations are as follows:
Expected benefit payments
($ million)
2022
2023
2024
2025
2026
2027 to
2030
Total
Post-employment benefits:
Pension plans
78
78
76
79
80
431
822
Healthcare plans
24
23
22
21
21
95
206
Other
6
4
5
5
5
28
53
Total Post-employment benefits
108
105
103
105
106
554
1,081
Other long-term employee benefits
2
2
2
2
2
12
22
Total
110
107
105
107
108
566
1,103
Potential outflows in the years after 2022 are subject to a number of uncertainties, including future asset performance
and changes in assumptions.
23. Other provisions
Changes in Other provisions are as follows:
($ million)
At December 31,
2020
Charge
Utilization
Release to
income
and other
changes
Transfer to
Liabilities
held for
distribution
At December 31,
2021
Warranty and technical assistance
provision
995
800
(713)
(95)
(461)
526
Restructuring provision
78
45
(45)
(3)
(43)
32
Investment provision
15
—
—
(9)
(6)
—
Other risks
2,287
3,619
(3,149)
(229)
(973)
1,555
Total Other provisions
3,375
4,464
(3,907)
(336)
(1,483)
2,113
The warranty and technical assistance provision represents management’s best estimate of commitments given by the
Group for contractual, legal or constructive obligations arising from product warranties given for a specified period of
time which begins at the date of delivery to the customer. This estimate has been calculated considering past
experience and specific contractual terms. This provision also includes management’s best estimate of the costs that
are expected to be incurred in connection with product defects that could result in a larger recall of vehicles. This
provision for risks is developed through an assessment of reported damages or returns on a case-by-case basis.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    218
At December 31, 2021, the restructuring provision includes the estimated amount of benefits payable to employees on
termination in connection with restructuring plans amounting to $19 million ($45 million at December 31, 2020), and
other costs totaling $13 million ($33 million at December 31, 2020).
The provision for other risks represents the amounts set aside by the individual companies of the Group principally in
connection with contractual and commercial risks and disputes. The more significant balances of this provision are as
follows:
($ million)
At December 31, 2021
At December 31, 2020
Marketing and sales incentives programs
1,325
1,324
Commercial risks
12
389
Legal proceedings and other disputes
93
197
Environmental risks
29
32
Other reserves for risks and charges
96
345
Total Other risks
1,555
2,287
A description of these provisions follows:
▪Marketing and sales incentives program - this provision relate to sales incentives that are offered on a contractual
basis to the dealer networks and primarily given if the dealers achieve a specific cumulative level of sales
transactions during the calendar year. This provision is estimated based on information available for the sales made
by the dealers during the calendar year.
▪Commercial risks - this provision relates to risks arising in connection with the sale of products and services.
▪Legal proceedings and other disputes - this provision represents management’s best estimate of the liability to be
recognized by the Group with regard to:
▪Legal proceedings arising in the ordinary course of business with dealers, customers, suppliers or regulators
(such as contractual, patent or antitrust disputes).
▪Legal proceedings involving claims with active and former employees.
None of these provisions is individually significant. Each Group company recognizes a provision for legal proceedings
when it is deemed probable that the proceedings will result in an outflow of resources. In determining their best
estimate of the probable liability, each Group company assesses its legal proceedings on a case-by-case basis to
estimate the probable losses that typically arise from events of the type giving rise to the liability. Their estimate takes
into account, as applicable, the views of legal counsel and other experts, the experience of the company and others
in similar situations and the company’s intentions with regard to further action in each proceeding. CNH Industrial’s
consolidated provision combines the individual provisions established by each of the Group’s companies.
▪Environmental risks – this provision represents management’s best estimate of the Group’s probable environmental
obligations. Amounts included in the estimate comprise direct costs to be incurred in connection with environmental
obligations associated with current or formerly owned facilities and sites. This provision also includes costs related to
claims on environmental matters.
24. Debt
Credit Facilities
Lenders of committed credit facilities have the obligation to make advances up to the facility amount. Lenders of
uncommitted facilities have the right to terminate the agreement with prior notice to CNH Industrial. At December 31,
2021, Continuing Operations had available committed unsecured facilities expiring after twelve months amounting to
$5.2 billion ($6.1 billion at December 31, 2020).
In March 2019, CNH Industrial signed a five-year committed revolving credit facility for €4 billion ($4.5 billion at March
31, 2019 exchange rate) due to mature in 2024 with two extension options of 1-year each, exercisable on the first and
second anniversary of the signing date. CNH Industrial exercised the first of the two extension options as of February
28, 2020 and the second extension option as of  February 26, 2021. The facility is now due to mature in March 2026 for
€3,950.5 million; the remaining €49.5 million will mature in March 2025. The credit facility replaced the existing five-year
€1.75 billion credit facility due to mature in 2021. The €4 billion facility is guaranteed by the parent company with cross-
guarantees from each of the borrowers (i.e., CNH Industrial Finance S.p.A., CNH Industrial Finance Europe S.A. and
CNH Industrial Finance North America Inc.), and includes typical provisions for contracts of this type and size, such as:
customary covenants mainly relating to Industrial Activities including negative pledge, a status (or pari passu) covenant,
restrictions on the incurrence of indebtedness by certain subsidiaries, customary events of default (some of which are
subject to minimum thresholds and customary mitigants) including cross-default, failure to pay amounts due or to
comply with certain provisions under the loan agreement, the occurrence of certain bankruptcy-related events and
CNH Industrial  Consolidated Financial Statements at December 31, 2021    219
mandatory prepayment obligations upon a change in control of CNH Industrial or the borrower and a financial covenant
(Net debt/EBITDA ratio relating to Industrial Activities) that is not applicable with the current ratings levels. The failure to
comply with these provisions, in certain cases if not suitably remedied, can lead to the requirement to make early
repayment of the outstanding advances. At December 31, 2021, CNH Industrial was in compliance with all covenants in
the revolving credit facility.
At December 31, 2021, Financial Services’ committed asset-backed facilities expiring after twelve months related to
Continuing operations amounted  to $3.0 billion ($3.9 billion at December 31, 2020), of which $2.0 billion at December
31, 2021 ($3.7 billion at December 31, 2020) were utilized.
Debt
An analysis of debt by nature and due date is as follows:
At December 31, 2021
At December 31, 2020
($ million)
Due
within
one year
Due
between
one and
five years
Due
beyond
five years
Total
Due within
one year
Due between
one and five
years
Due
beyond
five years
Total
Asset-backed financing
4,825
4,018
32
8,875
7,651
4,179
93
11,923
 Other debt:
Bonds
764
5,932
1,853
8,549
1,442
5,143
3,090
9,675
Borrowings from banks
1,170
1,003
80
2,253
1,838
1,441
102
3,381
Payables represented by
securities
511
606
24
1,141
581
243
—
824
Lease liabilities
55
105
36
196
123
234
96
453
Other(1)
667
5
3
675
142
218
2
362
Total Other debt
3,167
7,651
1,996
12,814
4,126
7,279
3,290
14,695
Total Debt
7,992
11,669
2,028
21,689
11,777
11,458
3,383
26,618
(1) At December 31, 2021, included $503 million of net financial payables to Discontinued Operations, mainly paid in January 2022.
At December 31, 2021, Total Debt of $21,689 million represented the Total Debt of Continuing Operations. The Total
Debt of Discontinued Operations included in Liabilities held for distribution totaled $2,566 million.
The item Asset-backed financing represents the financing received through both ABS and factoring transactions which
do not meet IFRS 9 derecognition requirements and are recognized as assets in the statement of financial position. In
2021 there was a decrease of approximately $392 million in asset-backed financing, excluding exchange differences.
In 2021, $62 million for the principal portion of Lease liabilities and $6 million for interest expenses related to lease
liabilities were paid ($61 million and $7 million, respectively, were paid in 2020).
The following table sets out a maturity analysis of Lease liabilities at December 31, 2021:
($ million)
At December 31, 2021
At December 31, 2020
Less than one year
61
133
One to two years
42
98
Two to three years
30
69
Three to four years
25
51
Four to five years
21
39
More than five years
39
108
Total undiscounted lease payments
218
498
Less: Interest
(22)
(45)
Total Lease liabilities
196
453
At December 31, 2021, the weighted average remaining lease term (calculated on the basis of the remaining lease term
and the lease liability balance for each lease) and the weighted average discount rate for leases were 5.5 years and
3.6%, respectively (6.3 years and 3.4%, respectively, at December 31, 2020 for Continuing Operations).
CNH Industrial  Consolidated Financial Statements at December 31, 2021    220
In March 2021, CNH Industrial Finance Europe S.A. repurchased all its outstanding notes due May 23, 2022, equaling
€316 million (approximately $371 million) through the exercise of a make whole option.
In May 2021, CNH Industrial Capital LLC issued $600 million in aggregate principal amount of 1.450% notes due 2026,
with an issue price of 99.208%.
In July 2021, CNH Industrial Capital Australia Pty. Limited issued AUD200 million of 1.75% notes due in 2024 at an
issue price of 99.863% of their principal amount.
In September 2021, CNH Industrial Capital Australia Pty. Limited issued AUD50 million of 1.75% notes due in 2024 at
an issue price of 101.069% of their principal amount. The issue is a private placement.
In September 2021, CNH Industrial Capital Canada Ltd. issued as private placement CAD$300 million in aggregate
principal amount of 1.50% notes due 2024, with an issue price of 99.936%.
With the purpose of further diversifying its funding structure, CNH Industrial has established various commercial paper
programs. CNH Industrial Financial Services S.A. in Europe issued commercial paper under a program which had an
amount of $83 million outstanding at December 31, 2021 ($112 million at December 31, 2020).
The following table shows the summary of the Group’s issued bonds outstanding at December 31, 2021:
Currency
Face value of
outstanding
bonds (in million)
Coupon
Maturity
Outstanding
amount
($ million)
Euro Medium Term Notes
CNH Industrial Finance Europe S.A.(1)
EUR
75
1.625%
March 29, 2022
85
CNH Industrial Finance Europe S.A.(1)
EUR
369
2.875%
May 17, 2023
417
CNH Industrial Finance Europe S.A.(1)
EUR
750
0.000%
April 1, 2024
850
CNH Industrial Finance Europe S.A.(1)
EUR
650
1.75%
September 12, 2025
736
CNH Industrial Finance Europe S.A.(1)
EUR
100
3.5%
November 12, 2025
113
CNH Industrial Finance Europe S.A.(1)
EUR
500
1.875%
January 19, 2026
566
CNH Industrial Finance Europe S.A.(1)
EUR
600
1.75%
March 25, 2027
680
CNH Industrial Finance Europe S.A.(1)
EUR
50
3.875%
April 21, 2028
57
CNH Industrial Finance Europe S.A.(1)
EUR
500
1.625%
July 3, 2029
566
CNH Industrial Finance Europe S.A.(1)
EUR
50
2.2%
July 15, 2039
57
Total Euro Medium Term Notes
4,127
Other Bonds
CNH Industrial Capital LLC
USD
500
4.375%
April 5, 2022
500
CNH Industrial Capital LLC
USD
600
1.95%
July 2, 2023
600
CNH Industrial Capital LLC
USD
500
4.2%
January 15, 2024
500
CNH Industrial Capital LLC
USD
500
1.875%
January 15, 2026
500
CNH Industrial Capital LLC
USD
600
1.45%
July 15, 2026
600
CNH Industrial N.V.(2)
USD
600
4.5%
August 15, 2023
600
CNH Industrial N.V.(2)
USD
500
3.85%
November 15, 2027
500
CNH Industrial Capital Australia Pty. Limited
AUD
175
2.10%
December 12, 2022
127
CNH Industrial Capital Australia Pty. Limited
AUD
200
1.75%
July 8, 2024
145
CNH Industrial Capital Australia Pty. Limited
AUD
50
1.75%
July 8, 2024
36
CNH Industrial Capital Argentina SA
USD
31
0.000%
August 31, 2023
31
CNH Industrial Capital Canada Ltd.
CAD$
300
1.500%
October 1, 2024
236
Total Other bonds
4,375
Hedging effect and amortized cost valuation
47
Total Bonds
8,549
(1)Bond listed on the Irish Stock Exchange.
(2)Bond listed on the New York Stock Exchange.
The bonds issued by the Group may contain commitments of the issuer, and in certain cases commitments of CNH
Industrial N.V. in its capacity as guarantor, which are typical of international practice for bond issues of this type such
as, in particular, negative pledge (in relation to quoted indebtedness), a status (or pari passu) covenant and cross
default clauses. A breach of these commitments can lead to the early repayment of the applicable notes. The bonds
guaranteed by CNH Industrial N.V. under the Euro Medium Term Note Programme (and its predecessor the Global
Medium Term Note Programme), as well as the notes issued by CNH Industrial N.V., contain clauses which could lead
to early repayment if there is a change of control of CNH Industrial N.V. leading to a rating downgrading of CNH
Industrial N.V.
CNH Industrial  Consolidated Financial Statements at December 31, 2021    221
On January 4, 2022 Fitch Ratings raised its Long-Term Issuer Default Rating on CNH Industrial N.V. to ‘BBB+’ from
‘BBB-’. Fitch also upgraded CNH Industrial Finance Europe S.A.’s senior unsecured rating to ‘BBB+’ from ‘BBB-'. The
Outlook is Stable. On January 7, 2022 Fitch has upgraded the Long-Term Issuer Default Ratings and senior unsecured
debt ratings of CNH Industrial Capital LLC (CNHI Capital) and CNH Industrial Capital Canada Ltd. (CNH Canada) to
'BBB+' from 'BBB-'. The Rating Outlook is Stable. Fitch has also upgraded CNHI Capital's Short-Term IDR and
commercial paper (CP) ratings to 'F2' from 'F3'. On February 25, 2022, Moody's upgraded the senior unsecured ratings
of CNH Industrial N.V. and its supported subsidiaries including CNH Industrial Capital LLC, CNH Industrial Finance
Europe S.A., CNH Industrial Capital Australia Pty. Limited and CNH Industrial Capital Canada Ltd. to Baa2 from Baa3.
At the same time, Moody's withdrew CNHI Industrial Finance Europe S.A.'s short-term rating of (P)P-3. The Rating
Outlook is stable.The Company's long-term credit ratings remained unchanged at "BBB" from Standard & Poor's  with
stable outlook.
For further information on the management of interest rate and currency risk reference should be made to Note 30.
At December 31, 2021 and 2020, there was no debt secured with mortgages and other liens on assets of the Group,
and the total carrying amount of assets acting as security for loans was not significant at December 31, 2021 and 2020.
In addition, the Group’s assets include current receivables and cash with a pre-determined use to settle asset-backed
financing of $8,875 million at December 31, 2021 ($11,923 million at December 31, 2020).
25. Trade payables
An analysis by due date of trade payables is as follows:
At December 31, 2021
At December 31, 2020
($ million)
Due
within
one year
Due
between one
and five
years
Due
beyond
five years
Total
Due within
one year
Due
between one
and five
years
Due
beyond
five years
Total
Trade payables
3,435
94
2
3,531
6,326
29
—
6,355
At December 31, 2021, Trade payables of $3,531 million represented the Trade payables of Continuing Operations.
The Trade payables of Discontinued Operations included in Liabilities held for distribution totaled $3,364 million.
26. Other current liabilities
An analysis of Other current liabilities is as follows:
($ million)
At December 31, 2021(*)
At December 31, 2020
Advances on buy-back agreements
—
1,355
Contract liabilities
20
1,381
Indirect tax payables
487
603
Accrued expenses and deferred income
460
561
Payables to personnel
161
275
Social security payables
90
161
Other
503
745
Total Other current liabilities
1,721
5,081
(*) Related to Continuing Operations.
An analysis of Other current liabilities (excluding Accrued expenses and deferred income) by due date is as follows:
At December 31, 2021
At December 31, 2020
($ million)
Due
within one
year
Due
between
one and
five years
Due
beyond
five years
Total
Due within
one year
Due
between
one and
five years
Due
beyond
five years
Total
Other current liabilities
(excluding Accrued expenses
and deferred income)
1,130
58
73
1,261
2,834
1,545
141
4,520
CNH Industrial  Consolidated Financial Statements at December 31, 2021    222
Changes in Contract liabilities for the year ended December 31, 2021 are as follows:
($ million)
At December 31,
2020
Additional
amounts arising
during the period
Amounts
recognized within
revenue
Translation
differences and
other changes
Transfer to
Liabilities held
for distribution
At December 31,
2021
Contract liabilities
1,381
825
(655)
(92)
(1,439)
20
At December 31, 2021, Contract liabilities primarily relate to extended warranties/maintenance and repair contracts. At
December 31, 2020, Contract liabilities primarily related to extended warranties/maintenance and repair contracts, and
transactions for the sale of vehicles with a buy-back commitment, and included $740 million for future rents related to
buy-back agreements. At  December 31, 2020, Advances on buy-back agreements included the repurchase value of
the vehicle relating to new vehicles sold with the buy-back commitment from Commercial and Specialty Vehicles
included in Property, plant and equipment, as described in section “Significant accounting policies”.
27. Commitments and contingencies
As a global company with a diverse business portfolio, CNH Industrial in the ordinary course of business is exposed to
numerous legal risks, including, without limitation, dealer and supplier litigation, intellectual property right disputes,
product warranty and defective product claims, product performance, asbestos, personal injury, emissions and/or fuel
economy regulatory and contractual issues, competition law and other investigations and environmental claims. The
most significant of these matters are described below.
The outcome of any current or future proceedings, claims, or investigations cannot be predicted with certainty. Adverse
decisions in one or more of these proceedings, claims or investigations could require CNH Industrial to pay substantial
damages or fines or undertake service actions, recall campaigns or other costly actions. It is therefore possible that
legal judgments could give rise to expenses that are not covered, or not fully covered, by insurers’ compensation
payments and could affect CNH Industrial’s financial position and results.
When it is probable that an outflow of resources embodying economic benefits will be required to settle obligations and
this amount can be reliably estimated, CNH Industrial recognizes specific provisions for this purpose. At December 31,
2021, contingent liabilities estimated by the Group amount to approximately $47 million (approximately $33 million at
December 31, 2020), for which no provisions have been recognized since an outflow of resources is not considered
probable at the present time.
Although the ultimate outcome of legal matters pending against CNH Industrial and its subsidiaries cannot be predicted,
CNH Industrial believes the reasonable possible range of losses for these unresolved legal matters in addition to the
amounts accrued would not have a material effect on its Consolidated Financial Statements.
Other litigation and investigation
Follow-up on Damages Claims: in 2011 Iveco S.p.A. ("Iveco"), which, following the Demerger, is now part of Iveco
Group N.V., and its competitors in the European Union were subject to an investigation by the European Commission
(the “Commission”) into certain business practices in the European Union (in the period 1997-2011) in relation to
Medium & Heavy trucks. On July 19, 2016, the Commission announced a settlement with Iveco ("the Decision").
Following the Decision, the Company, Iveco and Iveco Magirus AG ("IMAG") have been named as defendants in
proceedings across Europe. The consummation of the Demerger will not allow CNH Industrial to be excluded from
current and future follow on proceedings originating from the Decision because under EU competition law a company
cannot use corporate reorganizations to avoid liability for private damage claims. In the event one or more of these
judicial proceedings would result in a decision against CNH Industrial ordering it to compensate such claimants as a
result of the conduct that was the subject matter of the Decision, and Iveco and IMAG does not comply with such
decisions, as a result of various intercompany arrangements, then CNH Industrial will ultimately have recourse against
Iveco and IMAG for the reimbursement of the damages effectively paid to such claimants. The extent and outcome of
these claims cannot be predicted at this time.
FPT Emissions Investigation: on July 22, 2020, a number of CNH Industrial's offices in Europe were visited by
investigators in the context of a request for assistance by the public prosecutors of Frankfurt am Main, Germany and
Turin, Italy in relation to alleged noncompliance of two engine models produced by FPT Industrial S.p.A. ("FPT"), which
is now part of the Iveco Group N.V., installed in certain Ducato (a vehicle distributed by Stellantis) and Iveco Daily
vehicles. FPT is providing its full cooperation to properly address the requests received. FPT, other companies of Iveco
Group, and in certain instances CNH Industrial and other third parties have received various requests for compensation
by German and Austrian customers on various contractual and tort grounds, including requests for damages resulting
out of the termination of the purchase contracts, or in the form of requests for an alleged lower residual value of their
vehicles as a consequence of the alleged non-compliance with type approval regulations regarding emissions. In
certain instances, other customers have brought judicial claims on the same legal and factual bases. Although, at the
date hereof, the Company has been informed by the Iveco Group that it has no evidence of any wrongdoing, it cannot
CNH Industrial  Consolidated Financial Statements at December 31, 2021    223
predict at this time the extent and outcome of these requests and directly or indirectly related legal proceedings,
including customer claims or potential class actions alleging emissions non-compliance.
Commitments
At December 31, 2021, Financial Services has various agreements to extend credit for the following financing
arrangements:
At December 31, 2021
($ million)
Total Credit Limit
Utilized
Not utilized
Facility
Wholesale and dealer financing
7,549
2,725
4,824
Guarantees
CNH Industrial provided guarantees on the debt or commitments of third parties and performance guarantees, mainly in
the interest of a joint venture related to commercial commitments of defense vehicles, totaling $527 million and $615
million as of December 31, 2021 and 2020, respectively.
28. Segment reporting
The operating segments through which CNH Industrial manages its operations are based on the internal reporting used
by the CNH Industrial Chief Operating Decision Maker (“CODM”) to assess performance and make decisions about
resource allocation.
Until December 31, 2021, before the Demerger, CNH Industrial N.V. owned and controlled the Iveco Group Business,
as well as the Agriculture business, the Construction business, and the related Financial Services business. As
requested by the IFRS 5 - Non-current assets held for sale and discontinued operations, Iveco Group Business was
classified and presented as Discontinued Operations in these Consolidated Financial Statements.
However, the CODM continues to assess in continuity the performance for the Group as a whole in line with U.S.GAAP,
and therefore, the segment reporting disclosures was not unchanged as a consequence of the demerger.
The segments are organized based on products and services provided by CNH Industrial.
Until December 31, 2021, CNH Industrial had the following five operating segments:
Continuing Operations Business - Industrial Activities Segments:
▪Agriculture designs, manufactures and distributes a full line of farm machinery and implements, including two-
wheel and four-wheel drive tractors, crawler tractors (Quadtrac®), combines, cotton pickers, grape and sugar cane
harvesters, hay and forage equipment, planting and seeding equipment, soil preparation and cultivation
implements, and material handling equipment. Agricultural equipment is sold under the New Holland Agriculture
and Case IH brands, as well as the STEYR, Kongskilde and Överum brands in Europe and the Miller brand,
primarily in North America and Australia.
▪Construction designs, manufactures and distributes a full line of construction equipment including excavators,
crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, and compact track loaders.
Construction equipment is sold under the CASE Construction Equipment and New Holland Construction brands.
Discontinued Operations Business - Industrial Activities Segments:
▪Commercial and Specialty Vehicles designs, manufactures and distributes a full range of light, medium, and
heavy vehicles for the transportation and distribution of goods under the IVECO brand, city-buses, commuter
buses under the IVECO BUS (previously Iveco Irisbus) and HEULIEZ BUS brands, quarry and mining equipment
under the IVECO ASTRA brand, firefighting vehicles under the Magirus brand, and vehicles for civil defense and
peace-keeping missions under the Iveco Defence Vehicles brand.
▪Powertrain designs, manufactures and distributes, under the FPT Industrial brand, a range of combustion engines,
alternative propulsion systems, transmission systems and axles for on- and off-road applications, as well as for
marine and power generation.
Financial Services:
▪Financial Services, prior to the Demerger, offered a range of financial products and services to dealers and
customers of both Off-Highway and On-Highway Industrial Activities segments. Financial Services provided and
administered retail financing to customers for the purchase or lease of new and used vehicles and other equipment
CNH Industrial  Consolidated Financial Statements at December 31, 2021  224
sold by CNH Industrial brand dealers. In addition, Financial Services provided wholesale financing to CNH
Industrial brand dealers. Wholesale financing consists primarily of floor plan financing and allows the dealers to
purchase and maintain a representative inventory of products. Financial Services also provided trade receivables
factoring services to CNH Industrial companies.
Following the Demerger, the European operations of CNH Industrial Financial Services will be separated as
follows: the receivable portfolios related to the captive activity of each group (CNH Industrial and Iveco Group),
together with the related funding, will be attributed to each group, while the servicing of these separated portfolios
will be performed by Iveco Group’s Financial Services segment. CNH Industrial will provide financial services to
Iveco Group companies in the rest of the world.
The activities carried out by the four industrial segments Agriculture, Construction, Commercial and Specialty Vehicles,
and Powertrain, as well as corporate functions, are collectively referred to as “Industrial Activities”.
Revenues for each reported segment are those directly generated by or attributable to the segment as a result of its
business activities and include revenues from transactions with third parties as well as those deriving from transactions
with other segments, recognized at normal market prices. Segment expenses represent expenses deriving from each
segment's business activities both with third parties and other operating segments or which may otherwise be directly
attributable to it. Expenses deriving from business activities with other segments are recognized at normal market
prices.
With reference to Industrial Activities' segments, the CODM assesses segment performance and makes decisions
about resource allocation based upon Adjusted EBIT calculated using U.S. GAAP. CNH Industrial believes Adjusted
EBIT more fully reflects Industrial Activities segments' inherent profitability. 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 to be rare or discrete events that are infrequent in nature
and not reflective of on-going operational activities. With reference to Financial Services, the CODM assesses the
performance of the segment and makes decisions about resource allocation on the basis of net income prepared in
accordance with U.S. GAAP.
The following table summarizes Adjusted EBIT of Industrial Activities under U.S. GAAP by reportable segment:
($ million)
2021
2020
Agriculture
1,810
880
Construction
90
(184)
Commercial and Specialty Vehicles
282
(109)
Powertrain
256
233
Unallocated items, eliminations and other
(324)
(268)
Adjusted EBIT of Industrial Activities under U.S. GAAP
2,114
552
A reconciliation from Adjusted EBIT of Industrial Activities under U.S. GAAP to CNH Industrial's consolidated Profit/
(loss) before taxes under EU-IFRS for the years ended December 31, 2021 and 2020 is provided below:
($ million)
2021
2020
Adjusted EBIT of Industrial Activities under U.S. GAAP
2,114
552
Adjustments/reclassifications to convert from Adjusted EBIT of Industrial Activities under U.S.
GAAP to Profit/(loss) before taxes under EU-IFRS:
Financial income/(expenses) under EU-IFRS
(151)
(161)
Development costs
(31)
(132)
Other adjustments(1)
(10)
(451)
Total adjustments/reclassifications
(192)
(744)
Profit/(loss) from Continuing Operations before taxes under EU-IFRS
1,922
(192)
(1) Primarily includes Financial Services results before taxes under IFRS.
CNH Industrial  Consolidated Financial Statements at December 31, 2021  225
Net income of Financial Services prepared under U.S. GAAP for years ended December 31, 2021 and 2020 is
summarized as follows, together with a reconciliation to CNH Industrial’s consolidated Profit/(loss) before taxes under
EU-IFRS for the same periods:
($ million)
2021
2020
Net income of Financial Services under U.S. GAAP (A)
420
249
Eliminations and other (B)(*)
1,340
(687)
CNH Industrial’s consolidated Net income (loss) under
U.S. GAAP (C) = (A) + (B)
1,760
(438)
Adjustments to conform to EU-IFRS (D)(**)
17
(257)
Income tax (expense) benefit under EU-IFRS (E)
(236)
(78)
Less: (Profit)/loss from Discontinued Operations under EU-IFRS (F)
(91)
425
Profit/(loss) from Continuing Operations
before taxes under EU-IFRS (G) = (C) + (D) - (E) + (F)
1,922
(192)
(*)Includes Net income of Industrial Activities under U.S. GAAP.
(**) Details about this item are provided in Note 34 “EU-IFRS to U.S. GAAP reconciliation”.
There are no segment assets reported to the CODM for assessing performance and allocating resources. Additional
reportable segment information under U.S. GAAP is provided as follows.
Additional reportable segment information under U.S. GAAP
Revenues under U.S. GAAP, together with a reconciliation to the corresponding EU-IFRS consolidated item for the
years ended December 31, 2021 and 2020, are provided below:
($ million)
2021
2020
Agriculture
14,721
10,923
Construction
3,081
2,170
Commercial and Specialty Vehicles
12,160
9,421
Powertrain
4,419
3,629
Eliminations and other
(2,759)
(1,858)
Net sales of Industrial Activities
31,622
24,285
Financial Services
1,870
1,823
Eliminations and other
(64)
(76)
Total Revenues under U.S. GAAP
33,428
26,032
Difference(*)
53
(48)
Net Revenues under EU-IFRS reclassified to Profit/(loss) from Discontinued Operations
(14,963)
(11,892)
Eliminations
956
604
Total Net Revenues under EU-IFRS
19,474
14,696
(*) Primarily different classification of interest income of Industrial Activities
CNH Industrial  Consolidated Financial Statements at December 31, 2021  226
Depreciation and amortization under U.S. GAAP by reportable segment, together with a reconciliation to the
corresponding EU-IFRS consolidated item for the years ended December 31, 2021 and 2020, are provided below:
($ million)
2021
2020
Agriculture
254
248
Construction
38
46
Commercial and Specialty Vehicles
196
211
Powertrain
119
120
Eliminations and other
1
2
Total Industrial Activities
608
627
Financial Services
3
3
Total Depreciation and Amortization(*) under U.S. GAAP
611
630
Difference(**)
598
588
Depreciation and amortization  under EU-IFRS reclassified to Profit/(loss) from Discontinued
Operations
(670)
(662)
Total Depreciation and Amortization(*) under EU-IFRS
539
556
(*)  Excluding depreciation of assets on operating lease and assets sold with buy-back commitment.
(**) Primarily amortization of development costs capitalized under EU-IFRS and depreciation of right-of-use assets under EU-IFRS.
Expenditures for long-lived assets under U.S. GAAP by operating segment together with a reconciliation to the
corresponding EU-IFRS consolidated item for the years ended December 31, 2021 and 2020 are provided below:
($ million)
2021
2020
Agriculture
307
185
Construction
53
42
Commercial and Specialty Vehicles
218
160
Powertrain
128
92
Other
—
2
Total Industrial Activities
706
481
Financial Services
8
3
Total Expenditures for long-lived assets(*) under U.S. GAAP
714
484
Difference, principally expenditure for development costs capitalized under EU-IFRS
474
364
Expenditures for long-lived assets under EU-IFRS reclassified to Profit/(loss) from
Discontinued Operations
(667)
(458)
Total Expenditures for long-lived assets(*) under EU-IFRS
521
390
(*)Excluding assets sold with buy-back commitments and equipment on operating lease.
CNH Industrial  Consolidated Financial Statements at December 31, 2021  227
29. Information by geographical area
CNH Industrial N.V. has its principal office in London, England, United Kingdom. Revenues earned in the U.K. from
external customers were $548 million and $429 million in 2021 and 2020, respectively. Revenues earned in the rest of
the world from external customers were $18,926 million and $14,267 million in 2021 and 2020, respectively. The
following highlights revenues related to Continuing Operations earned from external customers in the rest of the world
by destination:
($ million)
2021
2020
United States
6,383
5,049
Italy
547
416
France
1,084
973
Germany
564
482
Brazil
2,406
1,544
Canada
1,341
918
Australia
856
642
Spain
283
229
Argentina
443
322
Poland
425
270
Other
4,594
3,422
Total revenues from external customers in the rest of the world
18,926
14,267
Total non-current Assets located in U.K., excluding financial assets, deferred tax assets, defined benefit assets and
rights arising under insurance contracts, were $147 million and $198 million at December 31, 2021 and 2020,
respectively, and the total of such assets located in the rest of the world totaled $8,791 million and $13,002 million at
December 31, 2021 and 2020, respectively. The following highlights non-current assets by geographical area in the rest
of the world:
($ million)
At December 31, 2021(*)
At December 31, 2020
United States
6,269
4,942
Italy
631
2,711
Canada
563
564
Belgium
237
327
France
191
1,252
Brazil
167
283
India
100
91
China
66
257
Germany
20
673
Spain
2
867
Other
545
1,035
Total non current assets in the rest of the world
8,791
13,002
(*) Related to Continuing Operations.
In 2021 and 2020, no single external customer of CNH Industrial accounted for 10 per cent or more of consolidated
revenues.
30. Information on financial risks
We are exposed to the following financial risks connected with our operations:
▪credit risk related to our financing activities;
▪liquidity risk, with particular reference to the availability of funds and access to the credit market and to financial
instruments in general;
▪market risk (primarily exchange rates and interest rates).
We attempt to actively manage these risks.
CNH Industrial  Consolidated Financial Statements at December 31, 2021  228
The quantitative data reported in the following paragraphs does not have any predictive value. In particular, the
sensitivity analysis on market risks does not reflect the complexity of the market or the reaction, which may result from
any changes that are assumed to take place.
Credit risk
Our credit concentration risk differs in relation to the activities carried out by the segments and sales markets in which
we operate; in all cases, however, the risk is mitigated by the large number of counterparties and customers.
Considered from a global point of view, however, there is a concentration of credit risk in trade receivables and
receivables from financing activities, in particular dealer financing and finance leases in the European Union market and
in North America, as well as in Latin America for Agriculture, Construction and Commercial and Specialty Vehicles.
CNH Industrial measures the loss allowance for its trade receivables and contract assets at an amount equal to the
lifetime expected credit losses, which are the present value of the cash shortfalls over the expected life of the financial
asset.
Financial assets are recognized in the statement of financial position net of write-downs for the risk that counterparties
may be unable to fulfill their contractual obligations, determined on the basis of the available information as to the
creditworthiness of the customer and historical data.
The maximum credit risk to which we were theoretically exposed at December 31, 2021 is represented by the carrying
amounts stated for financial assets in the statement of financial position and the nominal value of the guarantees
provided on debt or commitments of third parties as discussed in Note 27.
Dealers and final customers are generally subject to specific assessments of their creditworthiness under a detailed
scoring system. In addition to carrying out this evaluation process, we may also obtain financial and non-financial
guarantees for risks arising from credit granted for the sale of commercial vehicles, agricultural equipment and
construction equipment. These guarantees are further secured, where possible, by retention of title clauses or specific
guarantees on financed vehicle sales to the distribution network and on vehicles under finance leasing agreements.
A financial asset has experienced a significant increase in credit risk when the customer shows signs of operational or
financial weakness including past dues, which requires significant collection effort and monitoring and generally occurs
when the customer becomes past due greater than 30 days. The assessment considers available information regarding
the financial stability of the customer and other market/industry data. An account is typically considered in default when
they are 90 days past due.
CNH Industrial utilizes three categories for receivables from financing activities that reflect their credit risk and the loan
provision is determined.
Internal risk grade
IFRS 9 classification
Definition
Basis for recognition of expected
credit loss provision
Performing
Stage 1
Low risk of default; payments are generally
less than 30 days past due
12 month expected credit losses
Performing
Stage 2
Significant increase in credit risk; payments
generally between 31 and 90 days past due
Lifetime expected credit losses
Non-performing
Stage 3
Accounts are credit impaired and/or a legal
action has been initiated; payments generally
greater than 90 days past due
Lifetime expected credit losses
Charge‑offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is
estimated that amounts due are deemed uncollectible. CNH Industrial continues to engage in collection efforts to
attempt to recover the receivables. When recoveries are collected, these are recognized as income.
CNH Industrial’s allowance for credit losses is segregated into three portfolio segments: retail, wholesale and other. A
portfolio segment is the level at which CNH Industrial develops a systematic methodology for determining its allowance
for credit losses. Further, CNH Industrial evaluates its retail and wholesale portfolio segments by class of receivable:
North America, Europe, South America and Rest of World regions. Typically, CNH Industrial’s receivables within a
geographic area have similar risk profiles and methods for assessing and monitoring risk. These classes align with
management reporting.
The Group accounts for its credit risk by appropriately providing for expected credit losses on a timely basis. In
calculating the expected credit loss rates, CNH Industrial considers historical loss rates for each category of customers,
and adjusts for forward looking macroeconomic data.
In calculating the expected credit losses, CNH Industrial’s calculations depend on whether the receivable has been
individually identified as being impaired. The first component of the allowance for credit losses covers the receivables
specifically reviewed by management for which CNH Industrial has determined it is probable that it will not collect all of
the contractual principal and interest. Receivables are individually reviewed for impairment based on, among other
CNH Industrial  Consolidated Financial Statements at December 31, 2021  229
items, amounts outstanding, days past due and prior collection history. Expected credit losses are measured by
considering: the unbiased and probability-weighted amount; the time value of money; and reasonable and supportable
information (available without undue costs or effort) at the reporting date about past events, current conditions and
forecasts of future economic conditions. Expected credit losses are measured as the probability-weighted present value
of all cash shortfalls over the expected life of each financial asset. 
The second component of the allowance for credit losses covers all receivables that have not been individually
reviewed for impairment. The allowance for these receivables is based on aggregated portfolio evaluations, generally
by financial product. The allowance for wholesale and retail credit losses is based on loss forecast models that consider
a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and
delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward looking
macroeconomic factors. In addition, qualitative factors that are not fully captured in the loss forecast models are
considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective
and require a degree of management judgment.
Liquidity risk
We are exposed to funding risk if there is difficulty in obtaining finance for operations at any given point in time.
The cash flows, funding requirements and liquidity of our subsidiaries are monitored on a centralized basis. The aim of
this centralized system is to optimize the efficiency and effectiveness of the management of our capital resources.
Additionally, as part of our activities, we regularly carry out funding operations on the various financial markets which
may take on different technical forms and which are aimed at ensuring that it has an adequate level of current and
future liquidity.
Measures taken to generate financial resources through operations and to maintain an adequate level of available
liquidity are an important factor in ensuring normal operating conditions and addressing strategic challenges. We
therefore plan to meet our requirements to settle liabilities as they fall due and to cover expected capital expenditures
by using cash flows from operations and available liquidity, renewing or refinancing bank loans and making recourse to
the bond market and other forms of funding.
The two main factors that determine our liquidity situation are the funds generated by or used in operating and investing
activities and the debt lending period and its renewal features or the liquidity of the funds employed and market terms
and conditions.
CNH Industrial has adopted a series of policies and procedures whose purpose is to optimize the management of funds
and to reduce the liquidity risk, as follows:
▪centralizing the management of receipts and payments, where it may be economical in the context of the local
statutory, currency and fiscal regulations of the countries in which we are present;
▪maintaining an adequate level of available liquidity;
▪diversifying the means by which funds are obtained and maintaining a continuous and active presence on the capital
markets;
▪obtaining adequate credit lines; and
▪monitoring future liquidity on the basis of business planning.
Details as to the repayment structure of the CNH Industrial’s financial assets and liabilities are provided in Note 17
“Current Receivables and Other current financial assets” and in Note 24 “Debt”. Details of the repayment structure of
derivative financial instruments are provided in Note 18 “Derivative assets and Derivative liabilities”.
Management believes that the funds currently available, together with the funds that will be generated from operating
and financing activities, will enable CNH Industrial Post-Demerger to satisfy its requirements resulting from their
investing activities and their working capital needs and to fulfill their obligations to repay their debts at their natural due
date.
Market risk
We operate in numerous markets worldwide and are exposed to market risks stemming from fluctuations in currency
and interest rates.
The exposure to foreign currency risk arises both in connection with the geographical distribution of our industrial
activities compared to the markets in which we sell our products, and in relation to the use of external borrowing
denominated in foreign currencies.
CNH Industrial  Consolidated Financial Statements at December 31, 2021  230
The exposure to interest rate risk arises from the need to fund industrial and financial operating activities and the
necessity to deploy surplus funds. Changes in market interest rates may have the effect of either increasing or
decreasing our profit/(loss), thereby indirectly affecting the costs and returns of financing and investing transactions.
We regularly assess our exposure to foreign currency and interest rate risk and manage those risks through the use of
derivative financial instruments in accordance with its established risk management policies.
Our policy permits derivatives to be used only for managing the exposure to fluctuations in exchange and interest rates
connected with future cash flows and assets and liabilities, and not for speculative purposes.
We utilize derivative financial instruments designated as fair value hedges, mainly to hedge:
▪the currency risk on financial instruments denominated in foreign currency;
▪the interest rate risk on fixed rate loans and borrowings.
The instruments used for these hedges are mainly currency swaps, forward contracts, interest rate swaps and
combined interest rate and currency financial instruments.
We use derivative financial instruments as cash flow hedges for the purpose of pre-determining:
▪the exchange rate at which forecasted transactions denominated in foreign currencies will be accounted for;
▪the interest paid on borrowings, both to match the fixed interest received on loans (customer financing activity), and
to achieve a pre-defined mix of floating versus fixed rate funding structured loans.
The exchange rate exposure on forecasted commercial flows is hedged by currency swaps, forward contracts and
currency options. Interest rate exposures are usually hedged by interest rate swaps and, in limited cases, by forward
rate agreements.
Counterparties to these agreements are major and diverse financial institutions.
Information on the fair value of derivative financial instruments held at the balance sheet date is provided in Note 18
“Derivative assets and Derivative liabilities”.
Currency risk
We are exposed to risk resulting from changes in exchange rates, which can affect our earnings and equity.
Where one of our subsidiaries incurs costs in a currency different from that of its revenues, any change in exchange
rates can affect the profit/(loss) of that company. In 2021, the total net trade flows exposed to currency risk amounted to
the equivalent of 16% of CNH Industrial Pre-Demerger's revenue (13% in 2020).
The principal exchange rates to which the businesses in Continuing Operations are exposed are the following:
▪EUR/USD, in relation to the production/purchases of Agriculture and Construction in the euro area;
▪USD/BRL and EUR/BRL, in relation to production in Brazil and the respective import/export flows;
▪AUD/USD, mainly in relation to sales made by Agriculture and Construction in Australia;
▪EUR/GBP, predominately in relation to sales on the U.K. market.
Trade flows exposed to changes in these exchange rates in 2021 made up approximately 77% of the exposure to
currency risk from trade transactions.
The principal exchange rates to which the businesses in Discontinued Operations are exposed are the following:
▪EUR/GBP predominately in relation to sales in the U.K. market;
▪USD/BRL and EUR/BRL, in relation to production in Brazil and the respective import/export flows;
▪EUR/TRY, mainly in relation to sales made on Turkey narjet;
▪EUR/CZK, predominately in relation to sales on the Czech Republic market.
▪EUR/PLN predominately in relation to sales on the Poland market.
Trade flows exposed to changes in these exchange rates in 2021 made up approximately 65% of the exposure to
currency risk from trade transactions.
It is our policy to use derivative financial instruments to hedge a certain percentage, on average between 55% and
85%, of the forecasted trading transaction exchange risk exposure for the coming 12 months with additional flexibility to
reach 0% or 100% (including risk beyond that date where it is believed to be appropriate) and to hedge completely the
exposure resulting from firm commitments.
Certain subsidiaries may hold trade receivables or payables denominated in a currency different from the subsidiary’s
functional currency. In addition, in a limited number of cases, subsidiaries may obtain financing or use funds in a
CNH Industrial  Consolidated Financial Statements at December 31, 2021  231
currency different from their functional currency. Changes in exchange rates may result in exchange gains or losses
arising from these situations. It is our policy to hedge fully, whenever possible, the exposure resulting from receivables,
payables, and securities denominated in foreign currencies different from the subsidiary’s functional currency.
Certain of our subsidiaries’ functional currency is different than the U.S. dollar, which is the Group presentation
currency. The income statements of those subsidiaries are converted into U.S. dollars using the average exchange rate
for the period, and while revenues and margins are unchanged in local currency, changes in exchange rates may lead
to effects on the converted balances of revenues, costs and the results reported in U.S. dollars.
The assets and liabilities of consolidated companies whose functional currency is different from the U.S. dollar may
acquire converted values in U.S. dollars which differ as a function of the fluctuation in exchange rates. The effects of
these changes are recognized directly in the Cumulative Translation Adjustments reserve, included in Other
comprehensive income (see Note 21).
We monitor our principal exposure to translation exchange risk, although there was no specific hedging in place at
December 31, 2021.
There were no substantial changes in 2021 in the nature or structure of exposure to currency risk or in our hedging
policies.
Sensitivity analysis
The potential loss in fair value of derivative financial instruments held for currency risk management (currency swaps/
forwards, currency options, interest rate and currency swaps) at December 31, 2021 resulting from a hypothetical
change of 10% in the exchange rates amounts to approximately $531 million for CNH Industrial Pre-Demerger and
$344 million for Continuing Operations and $187 million for Discontinued Operations (for CNH Industrial Pre-Demerger,
$512 million at December 31, 2020). The valuation model for currency options assumes that market volatility at year-
end remains unchanged.
Receivables, payables, and future trade flows whose hedging transactions have been analyzed were not considered in
this analysis. It is reasonable to assume that changes in exchange rates will produce the opposite effect, of an equal or
greater amount, on the underlying transactions that have been hedged.
Interest rate risk
Our Industrial Activities make use of external funds obtained in the form of financing and invest in monetary and
financial market instruments. In addition, we sell receivables. Changes in market interest rates can affect the cost of
financing, including the sale of receivables, or the return on investments of funds, causing an impact on the level of net
financial expenses incurred by us.
In addition, Financial Services provides loans (mainly to customers and dealers), financing themselves primarily using
various forms of external borrowings or asset-backed financing (e.g., securitization of receivables). Where the
characteristics of the variability of the interest rate applied to loans granted differ from those of the variability of the cost
of the financing/funding obtained, changes in the current level of interest rates can affect our profit/(loss).
In order to mitigate these risks, we use interest rate derivative financial instruments, mainly interest rate swaps and
forward rate agreements.
Interest rate benchmark reform
Certain existing benchmark InterBank Offered Rates (IBORs) such as USD LIBOR will be reformed by the authority and
gradually replaced with alternative benchmark rates. Despite the uncertainty around the timing and precise nature of
these changes, the existing benchmark interest rates are still applied as reference rates.
To transition existing contracts and agreements that reference USD LIBOR to an alternative benchmark rate (SOFR),
adjustments for term differences and credit differences might need to be applied to the alternative benchmark rate, to
enable the two benchmark rates to be economically equivalent on transition.
The Group has issued US dollar‑denominated fixed rate debt which it fair value hedges using sterling fixed to US dollar
fixed to USD LIBOR interest rate swaps. At December 31, 2021, the notional amount of hedging instruments directly
affected by the reform of benchmark interest rates is $1,228 million related to Continuing Operations.
Group Treasury is managing the Group’s USD LIBOR transition plan. The greatest change will be amendments to the
contractual terms of the USD LIBOR-referenced fixed-rate debt and the corresponding update of the hedge
designation.
In calculating the change in fair value attributable to the hedged risk of fixed-rate debt, the Group has made the
following assumptions that reflect its current expectations:
CNH Industrial  Consolidated Financial Statements at December 31, 2021  232
▪the fixed-rate debt will move to SOFR at the beginning of 2022 (or at July 2023 if the new consultations were
confirmed) and the spread will be similar to the spread included in the interest rate swap used as the hedging
instrument;
▪no other changes to the terms of the fixed-rate debt are anticipated; and
▪the Group does not expect any material impact deriving from the replacement of benchmark interest rate.
Sensitivity analysis
In assessing the potential impact of changes in interest rates, we separate fixed rate financial instruments (for which the
impact is assessed in terms of fair value) from floating rate financial instruments (for which the impact is assessed in
terms of cash flows).
The fixed rate financial instruments used by us consist of retail receivables, debt, ABS securities, and other instruments.
The potential loss in fair value of fixed rate financial instruments (including the effect of interest rate derivative financial
instruments) held at December 31, 2021, resulting from a hypothetical, unfavorable and instantaneous change of
10% in market interest rates, would have been approximately $21 million for CNH Industrial Pre-Demerger, $20 million
for Continuing Operations and $1 million for Discontinued Operations (for CNH Industrial Pre-Demerger, approximately
$16 million at December 31, 2020).
Floating rate financial instruments consist principally of cash and cash equivalents, wholesale receivables, debt, and
ABS securities. The effect of the sale of receivables is also considered in the sensitivity analysis as well as the effect of
hedging derivative instruments.
A hypothetical change of 10% in short-term interest rates at December 31, 2021, applied to floating rate financial assets
and liabilities, operations for the sale of receivables and derivative financial instruments, would have caused increased
net expenses before taxes, on an annual basis, of approximately $8 million for CNH Industrial Pre-Demerger ($3 million
for Continuing Operations and $5 million for Discontinued Operations) (for CNH Industrial Pre-Demerger approximately
$1 million at December 31, 2020).
This analysis is based on the assumption that there is a hypothetical change of 10% in interest rates across
homogeneous categories. A homogeneous category is defined on the basis of the currency in which the financial assets
and liabilities are denominated.
Other risks on derivative financial instruments
We have entered derivative contracts linked to commodity prices to hedge specific exposures on supply contracts.
Sensitivity analysis
In the event of a hypothetical change of 10% in the underlying raw materials prices, the potential loss in fair value of
outstanding derivative financial instruments at December 31, 2021 linked to commodity prices would not have been
significant for Continuing Operations and Discontinued Operations (not significant for CNH Industrial Pre-Demerger at
December 31, 2020).
31. Fair value measurement
Fair value levels presented below are described in the “Significant accounting policies – Fair value measurement”
section of these Notes.
Assets and liabilities measured at fair value on a recurring basis
The following table presents, for each of the fair value hierarchy levels, the assets and liabilities that are measured at
fair value on a recurring basis at December 31, 2021 and 2020:
At December 31, 2021(*)
At December 31, 2020
($ million)
Note
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Equity investments measured at fair value
through other comprehensive income
(14)
—
—
—
—
392
—
—
392
Other investments
(14)
—
—
47
47
—
—
15
15
Derivative assets
(18)
—
184
—
184
—
160
—
160
Money market securities
(19)
336
—
—
336
1,023
—
—
1,023
Total Assets
336
184
47
567
1,415
160
15
1,590
Derivative liabilities
(18)
—
182
—
182
—
(139)
—
(139)
Total Liabilities
—
182
—
182
—
(139)
—
(139)
(*) Related to Continuing Operations.
CNH Industrial  Consolidated Financial Statements at December 31, 2021  233
The following table provides a reconciliation from the opening balance to the closing balance for fair value
measurements categorized in Level 3 in 2021:
($ million)
2021
2020
At January 1
15
108
Acquisitions/(disposals)
47
157
Gains/(Losses) recognized in Other comprehensive income/(loss)
—
1,483
Transfer from Level 3 to Level 1
—
(1,733)
Transfer to Assets held for distribution
(15)
—
At December 31
47
15
In 2020, Transfer from Level 3 include the investment in Nikola Corporation, reclassified to Level 1 upon the completion
in June 2020 of its business combination with VectoIQ Acquisition Corp. and continued listing of the combined
company’s shares. Refer to Note 14 for additional information on this investment.
Description of the valuation techniques used to determine the fair value of derivative financial instruments is included in
Note 18 “Derivative assets and Derivative liabilities”.
Assets and liabilities not measured at fair value
The estimated fair values for financial assets and liabilities that are not measured at fair value in the statement of
financial position at December 31, 2021 and 2020 are as follows:
At December 31, 2021
($ million)
Note
Level 1
Level 2
Level 3
Total Fair
Value
Carrying
amount
Retail financing
(17)
—
—
9,970
9,970
9,805
Dealer financing
(17)
—
—
5,369
5,369
5,373
Finance leases
(17)
—
—
216
216
215
Other receivables from financing activities
(17)
—
—
50
50
50
Total Receivables from financing activities
—
—
15,605
15,605
15,443
Asset-backed financing
(24)
—
8,769
—
8,769
8,875
Bonds
(24)
5,515
3,336
—
8,851
8,549
Borrowings from banks
(24)
—
2,154
—
2,154
2,253
Payables represented by securities
(24)
—
1,144
—
1,144
1,141
Lease liabilities
(24)
—
—
196
196
196
Other debt
(24)
—
172
503
675
675
Total Debt
5,515
15,575
699
21,789
21,689
At December 31, 2020
($ million)
Note
Level 1
Level 2
Level 3
Total Fair
Value
Carrying
amount
Retail financing
(17)
—
—
9,232
9,232
9,050
Dealer financing
(17)
—
—
9,114
9,114
9,129
Finance leases
(17)
—
—
307
307
277
Other receivables from financing activities
(17)
—
—
73
73
73
Total Receivables from financing activities
—
—
18,726
18,726
18,529
Asset-backed financing
(24)
—
11,928
—
11,928
11,923
Bonds
(24)
6,839
3,340
—
10,179
9,675
Borrowings from banks
(24)
—
3,334
—
3,334
3,381
Payables represented by securities
(24)
—
827
—
827
824
Lease liabilities
(24)
—
—
453
453
453
Other debt
(24)
—
362
—
362
362
Total Debt
6,839
19,791
453
27,083
26,618
Receivables from financing activities
The fair value of Receivables from financing activities is based on the discounted values of their related cash flows at
market discount rates that reflect conditions applied in various reference markets on receivables with similar
characteristic, adjusted to take into account the credit risk of the counterparties.
CNH Industrial  Consolidated Financial Statements at December 31, 2021  234
Debt
All Debt is classified as a Level 2 fair value measurement, with the exception of the bonds issued by CNH Industrial
Finance Europe S.A. and the bonds issued by CNH Industrial N.V. that are classified as a Level 1 fair value
measurement. The fair value of these bonds has been estimated making reference to quoted prices in active markets.
The fair value of Asset-backed financing, Borrowings from banks, Payable represented by securities and Other debt are
included in the Level 2 and has been estimated based on discounted cash flows analysis using the current market
interest rates at year-end adjusted for the Group non-performance risk over the remaining term of the financial liability.
The fair value of Lease liabilities classified within Level 3 of the fair value hierarchy has been estimated using
discounted cash flow models that require significant adjustments using unobservable inputs.
Other financial assets and liabilities
The carrying amount of Cash at banks, Restricted cash, Other cash equivalents, Trade receivables, Other current
receivables and financial assets, Trade payables and Other current liabilities included in the statement of financial
position approximates their fair value, due to the short maturity of these items.
32. Related party transactions
In accordance with IAS 24 – Related Party Disclosures, CNH Industrial’s related parties are companies and persons
capable of exercising control, joint control or significant influence over the Group. As of December 31, 2021 and 2020,
related parties included CNH Industrial N.V.’s parent company EXOR N.V. and the companies that EXOR N.V.
controlled or had a significant influence over, including Fiat Chrysler Automobiles N.V. and its subsidiaries and affiliates
(“FCA”) and Ferrari N.V. and its subsidiaries and affiliates including Stellantis N.V. (formerly Fiat Chrysler Automobiles
N.V. which, effective January 16, 2021, merged with Peugeot S.A. by means of a cross-border legal merger) and its
subsidiaries and affiliates ("Stellantis"), and CNH Industrial’s unconsolidated subsidiaries, associates or joint ventures.
In addition, the members of the Board of Directors and managers of CNH Industrial with strategic responsibility and
members of their families were also considered related parties.
As of December 31, 2021, based on public information available and in reference to Company's files, EXOR N.V. held
42.5% of CNH Industrial’s voting power and had the ability to significantly influence the decisions submitted to a vote of
CNH Industrial’s shareholders, including approval of annual dividends, the election and removal of directors, mergers or
other business combinations, the acquisition or disposition of assets, and issuances of equity and the incurrence of
indebtedness. The percentage above has been calculated as the ratio of (i) the aggregate number of common shares
and special voting shares owned by EXOR N.V. to (ii) the aggregate number of outstanding common shares and
special voting shares of CNH Industrial as of December 31, 2021.
In addition, CNH Industrial engages in transactions with its unconsolidated subsidiaries, joint ventures, associates and
other related parties on commercial terms that are normal in the respective markets, considering the characteristics of
the goods or services involved.
The Company’s Audit Committee reviews and evaluates all significant related party transactions.
Related party transactions included in the following paragraphs refer to CNH Industrial Pre-Demerger.
Transactions with EXOR N.V. and its subsidiaries and affiliates
EXOR N.V. is an investment holding company. As of December 31, 2021 and 2020, among other things, EXOR N.V.
managed a portfolio that includes investments in Stellantis. CNH Industrial did not enter into any significant transactions
with EXOR N.V. during the years ended December 31, 2021 and 2020.
In connection with the establishment of Fiat Industrial (now CNH Industrial) through the demerger from Fiat (which was
subsequently merged into Fiat Chrysler Automobiles N.V. which is now Stellantis), the two companies entered into a
Master Services Agreement (“Stellantis MSA”) which sets forth the primary terms and conditions pursuant to which the
service provider subsidiaries of CNH Industrial and FCA provide services to the service receiving subsidiaries. As
structured, the applicable service provider and service receiver subsidiaries become parties to the Stellantis MSA
through the execution of an Opt-in letter that may contain additional terms and conditions. Pursuant to the Stellantis
MSA, service receivers are required to pay to service providers the actual cost of the services plus a negotiated margin.
During 2021 and 2020, Stellantis subsidiaries provided CNH Industrial with administrative services such as accounting,
maintenance of plant and equipment, security, information systems and training under the terms and conditions of the
Stellantis MSA and the applicable Opt-in letters.
Additionally, CNH Industrial sold engines and light commercial vehicles to and purchased engine blocks and other
components from Stellantis subsidiaries. Furthermore, CNH Industrial and Stellantis might engage in other minor
transactions in the ordinary course of business.
CNH Industrial  Consolidated Financial Statements at December 31, 2021  235
These transactions with Stellantis are reflected in the Consolidated Financial Statements as follows:
($ million)
2021
2020
Net revenues
415
599
Cost of sales
269
212
Selling, general and administrative costs
138
127
($ million)
At December 31, 2021
At December 31, 2020
Trade receivables
4
8
Trade payables
72
85
Transactions with joint ventures
CNH Industrial sells commercial vehicles, agricultural and construction equipment, and provides technical services to
joint ventures such as IVECO - OTO MELARA Società Consortile a responsabilità limitata, CNH de Mexico SA de CV,
Turk Traktor ve Ziraat Makineleri A.S. and New Holland HFT Japan Inc. CNH Industrial also purchases equipment from
joint ventures, such as Turk Traktor ve Ziraat Makineleri A.S. These transactions are reflected in the Consolidated
Financial Statements at December 31, 2021 as follows:
($ million)
2021
2020
Net revenues
873
899
Cost of sales
498
399
($ million)
At December 31, 2021
At December 31, 2020
Trade receivables
4
154
Trade payables
100
61
At December 31, 2021 and 2020, CNH Industrial had provided guarantees on commitments of its joint ventures for an
amount of $259 million and $145 million, respectively, mainly related to IVECO - OTO MELARA Società Consortile a
responsabilità limitata.
Transactions with associates
CNH Industrial sells trucks and commercial vehicles and provides services to associates. In 2021, revenues from
associates totaled $224 million ($177 million in 2020). In 2021, cost of sales from associates totaled $13 million ($13
million in 2020). At December 31, 2021, receivables from associates amounted to $12 million ($15 million at December
31, 2020). Trade payables to associates amounted to $26 million at December 31, 2021 ($36 million at December 31,
2020). At December 31, 2021, CNH Industrial had provided guarantees on commitments of its associates for an amount
of $308 million related to CNH Industrial Capital Europe S.a.S. ($323 million at December 31, 2020).
Transactions with unconsolidated subsidiaries
In the years ended December 31, 2021 and 2020, there were no material transactions with unconsolidated subsidiaries.
Compensation to Directors and Key Management
The fees of the Directors of CNH Industrial N.V. for carrying out their respective functions, including those in other
consolidated legal entities, and the notional compensation cost arising from stock grants awarded to certain Executive
Directors and Officers, amounted to an expense of approximately $34 million in 2021 ($7 million in 2020).
The aggregate expense incurred in 2021 and in 2020 for the compensation of Executives with strategic responsibilities
of the Group amounted to approximately $50 million and $27 million, respectively. These amounts included the notional
compensation cost for share-based payments.
33. Explanatory notes to the statement of cash flows
The statement of cash flows sets out changes in cash and cash equivalents during the year. As required by IAS 7 -
Cash Flow Statements, cash flows are separated into operating, investing and financing activities. The effects of
changes in exchange rates on cash and cash equivalents are shown separately under the line item Translation
exchange differences.
The Group presents supplemental discussion and disclosure regarding the statement of cash flows for the purpose of
additional analysis. Certain items discussed below, are reflected within the consolidated statement of cash flows either
on an aggregate or net basis, and accordingly have been discussed further as set forth below.
CNH Industrial  Consolidated Financial Statements at December 31, 2021  236
Amounts included in the present Note refer to Continuing Operations.
Cash flows for income tax payments net of refunds in 2021 amount to $348 million ($80 million in 2020).
Total interest of $539 million was paid and interest of $350 million was received in 2021 (interest of $625 million was
paid in 2020, and interest of $592 million was received in 2020). In 2021, the amount included a charge of $8 million in
connection with CNH Industrial's accelerated debt redemption strategy.
Operating activities
Cash flows from/(used in) operating activities derive mainly from the Group’s main revenue producing activities.
Cash generated from the sale of vehicles under buy-back commitments, net of amounts included in Profit/(loss) for the
period, is recognized under operating activities in a single line item, which includes changes in working capital, capital
expenditure, depreciation and impairment losses.
Cash from operating lease is recognized under operating activities in a single line item, which includes capital
expenditure, depreciation, write-downs and changes in inventory.
The adjustment to exclude Other non-cash items of $19 million in 2021 ($372 million in 2020) includes an amount of 
$-60 million (a gain of $1 million in 2020) related to result from investments net of impairment losses on assets
recognized during the year.
Changes in working capital for 2021 and 2020 are summarized as follows:
($ million)
2021
2020
Change in trade receivables
(1)
(37)
Change in inventories
(1,031)
764
Change in trade payables
776
452
Change in other receivables/payables
455
350
Change in working capital
199
1,529
Investing activities
Cash flows from/(used in) investing activities represent the extent to which expenditures have been made for resources
intended to generate future income and cash flows. Only expenditures resulting in an asset recognized in the balance
sheet are classified as investing activities in the statement of cash flows. In particular, Cash flows from/(used in)
investing activities include net change in receivables from financing activities that may be analyzed as follows:
($ million)
2021
2020
Change in dealer financing
185
957
Change in retail financing
(1,010)
(474)
Change in finance leases
(39)
(74)
Change in other receivables from financing activities
22
(8)
Net change in receivables from financing activities
(842)
401
Liquidity absorbed by the increase in receivables from financing activities in 2021 was primarily a result of increased
financing activities.
For consideration for the acquisition and disposal of subsidiaries and of other investments, refer to section "Business
Combinations" above and to Note 14.
Financing activities
The net change in other financial payables and derivative assets/liabilities mainly reflects changes in borrowings from
banks and in asset-backed financing, together with changes in derivative assets and liabilities (consisting of derivative
financial instruments measured at fair value at the balance sheet date, as discussed in Note 18 above).
CNH Industrial  Consolidated Financial Statements at December 31, 2021  237
Changes in 2021 and 2020 are summarized as follows:
($ million)
2021
2020
Change in asset-backed financing
(392)
(167)
Change in borrowings from banks and other financial payables
(175)
(498)
Net change in other financial payables
(567)
(665)
Net change in derivative assets and derivative liabilities
15
(42)
Net change in other financial payables and derivative assets/liabilities
(552)
(707)
Reconciliation of changes in liabilities arising from financing activities may be analyzed as follows:
($ million)
2021
2020
Total Debt at beginning of year
26,618
25,413
Derivative (assets)/liabilities at beginning of year
(21)
48
Total liabilities from financing activities at beginning of year
26,597
25,461
Cash flows
(1,363)
554
Foreign exchange effects
(1,161)
483
Fair value changes
(23)
(61)
Other changes
195
160
Transfer to Liabilities held for distribution (*)
(2,558)
—
Total liabilities from financing activities at end of year
21,687
26,597
Of which:
Total Debt at end of year
21,689
26,618
Derivative (assets)/liabilities at end of year
(2)
(21)
(*) Related to Discontinued Operations.
34. EU-IFRS to U.S. GAAP reconciliation
These Consolidated Financial Statements have been prepared in accordance with the EU-IFRS (see section
“Significant accounting policies”, paragraph “Basis of preparation”, for additional information).
CNH Industrial reports quarterly and annual consolidated financial results in accordance with EU-IFRS for European
listing purposes and for Dutch law requirements and in accordance with U.S. GAAP for SEC reporting purposes.
Amounts included in the present Note, refer to CNH Industrial Pre-Demerger.
EU-IFRS differ in certain significant requirements from U.S. GAAP. In order to help readers to understand the difference
between the two sets of financial statements of the Group, CNH Industrial has provided, on a voluntary basis, a
reconciliation from EU-IFRS to U.S. GAAP as follows:
Reconciliation of Profit
($ million)
Note
2021
2020
Profit/(loss) in accordance with EU-IFRS
1,777
(695)
Adjustments to conform to U.S. GAAP:
Development costs
(a)
(3)
192
Nikola investment fair value adjustment
(b)
(138)
134
Other adjustments(1)
(c)
108
(64)
Tax impact on adjustments and other income tax differences
(d)
16
(5)
Total adjustments
(17)
257
Net income (loss) in accordance with U.S. GAAP
1,760
(438)
(1)This item also includes the different accounting impact from the modification of a healthcare plan in the U.S.
CNH Industrial  Consolidated Financial Statements at December 31, 2021  238
Reconciliation of Total Equity
($ million)
Note
At December 31,
2021
At December
31, 2020
Total Equity in accordance with EU-IFRS
8,426
6,735
Adjustments to conform to U.S. GAAP:
Development costs
(a)
(2,058)
(2,193)
Other adjustments
(c)
(28)
(34)
Tax impact on adjustments and other income tax differences
(d)
468
481
Total adjustments
(1,618)
(1,746)
Total Equity in accordance with U.S. GAAP
6,808
4,989
Description of reconciling items
Reconciling items presented in the tables above are described as follows:
(a)Development costs
Under EU-IFRS, costs relating to development projects are recognized as intangible assets when costs can be
measured reliably and the technical feasibility of the product, volumes and pricing support the view that the
development expenditure will generate future economic benefits. Under U.S. GAAP, development costs are
expensed as incurred. As a result, costs incurred related to development projects that have been capitalized under
EU-IFRS are expensed as incurred under U.S. GAAP. Amortization expenses, net of result on disposal and
impairment charges of previously capitalized development costs recorded under EU-IFRS, have been reversed
under U.S. GAAP.
(b)Nikola investment fair value adjustment
Under EU-IFRS, CNH Industrial elected to measure its investment in Nikola Corporation at fair value through
other comprehensive income. Under U.S. GAAP, starting from the second quarter of 2020, this investment is
measured at fair value through profit or loss (measured at cost before that period). Any fair value remeasurement
gain or loss is therefore recorded in other comprehensive income under EU-IFRS and in profit or loss under U.S.
GAAP. Refer to Note 14 for a detailed description of this investment and the remeasurement adjustment
recognized under EU-IFRS in 2020.
(c)Other adjustments
It mainly includes the following items:
•Goodwill and other intangible assets: goodwill is not amortized but rather tested for impairment at least
annually under both EU-IFRS and U.S. GAAP. The difference in goodwill and other intangible assets between
the Group’s two sets of financial statements is primarily due to the different times when EU-IFRS and ASC 350
- Intangibles – Goodwill and Other, were adopted. CNH Industrial transitioned to EU-IFRS on January 1, 2004.
Prior to the adoption of EU-IFRS, goodwill was recorded as an intangible asset and amortized to income on a
straight-line basis over its estimated period of recoverability, not exceeding 20 years. CNH Industrial adopted
ASC 350 on January 1, 2002. Under U.S. GAAP through December 31, 2001, goodwill was recorded as an
intangible asset and amortized to income on a straight-line basis over a period not exceeding 40 years.
•Defined benefit plans: the differences related to defined benefit plans are mainly due to the different
accounting for actuarial gains and losses and the net interest component of the defined benefit cost between
EU-IFRS and U.S. GAAP. Under EU-IFRS, actuarial gains and losses are recognized immediately in other
comprehensive income without reclassification to profit or loss in subsequent years; net interest expense or
income is recognized by applying the discount rate to the net defined benefit liability or asset (the defined
benefit obligation less the fair value of plan assets, allowing for any assets ceiling restriction). Under U.S.
GAAP, actuarial gains and losses are deferred through the use of the corridor method; interest cost applicable
to the liability is recognized using the discount rate, while an expected return on assets is recognized reflecting
management’s expectations on long-term average rates of return on funds invested to provide for benefits
included in the projected benefit obligations.
•Restructuring provisions: the main difference between EU-IFRS and U.S. GAAP with respect to accruing for
restructuring costs is that EU-IFRS places emphasis on the recognition of the costs of the exit plan as a whole,
whereas U.S. GAAP requires that each type of cost is examined individually to determine when it may be
accrued. Under IAS 37 – Provisions, Contingent Liabilities and Contingent Assets, a provision for restructuring
costs is recognized when the Group has a constructive obligation to restructure. Under U.S. GAAP, termination
CNH Industrial  Consolidated Financial Statements at December 31, 2021  239
benefits are recognized in the period in which a liability is incurred. The application of U.S. GAAP often results
in different timing recognition for the Group’s restructuring activities.
(d)Tax impact on adjustments and other income tax differences
This item includes the tax effects of adjustments included in (a) and (b), primarily related to development costs,
as well as other differences arising in the accounting for deferred tax assets and liabilities. The Group’s policy
for accounting for deferred income taxes under EU-IFRS is described in section “Significant accounting
policies”. This policy is similar to U.S. GAAP, which states that a deferred tax asset or liability is recognized for
the estimated future tax effects attributable to temporary differences and tax loss carry forwards. Valuation
allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not
be realized based on available evidence. The most significant accounting difference between EU-IFRS and
U.S. GAAP relates to development costs, which also has a significant impact on accumulated deferred tax
assets or liabilities and on U.S. GAAP pre-tax book income or loss in certain jurisdictions. As a result, the
assessment of tax contingencies and recoverability of deferred tax assets in each jurisdiction can vary
significantly between EU-IFRS and U.S. GAAP for financial reporting purposes. This adjustment relates
primarily to jurisdictions with U.S. GAAP pre-tax book losses higher than those recorded for EU-IFRS purposes.
35. Subsequent events
CNH Industrial has evaluated subsequent events through March 1, 2022, which is the date the financial statements
were authorized for issuance, and identified the following:
▪Effective January 1, 2022, the Iveco Group Business was separated from CNH Industrial N.V. by way of a legal
statutory demerger to Iveco Group N.V. and Iveco Group became a public listed company independent from CNH
Industrial with its common shares trading on Euronext Milan, a regulated market organized and managed by Borsa
Italiana S.p.A.
▪On January 4, 2022 Fitch Ratings raised its Long-Term Issuer Default Rating on CNH Industrial N.V. to ‘BBB+’ from
‘BBB-’. Fitch also upgraded CNH Industrial Finance Europe S.A.’s senior unsecured rating to ‘BBB+’ from ‘BBB-'. The
Outlook is Stable.
▪On January 7, 2022 Fitch upgraded the Long-Term Issuer Default Ratings and senior unsecured debt ratings of CNH
Industrial Capital LLC (CNHI Capital) and CNH Industrial Capital Canada Ltd. (CNH Canada) to 'BBB+' from 'BBB-'.
The Rating Outlook is Stable. Fitch has also upgraded CNHI Capital's Short-Term IDR and commercial paper (CP)
ratings to 'F2' from 'F3'.
▪On February 22, 2022, CNH Industrial N.V. held an Investors Day, presenting its Strategic Business Plan for the
years 2022 to 2024.
▪On February 25, 2022, Moody's upgraded the senior unsecured ratings of CNH Industrial N.V. and its supported
subsidiaries including CNH Industrial Capital LLC, CNH Industrial Finance Europe S.A., CNH Industrial Capital
Australia Pty. Limited and CNH Industrial Capital Canada Ltd. to Baa2 from Baa3. The Rating Outlook is stable.
▪In order to optimize the capital structure of the Company and to meet the obligations arising from the Company's
equity incentive plans, on March 1, 2022, CNH Industrial announced a share buy-back program (the "Program") up to
€100 million, within the framework of the authorization granted by the Shareholders’ Meeting held on April 15, 2021,
whereby the Board is vested with the authority to purchase up to 10% of the Company’s issued common shares
during the eighteen-month period following such Shareholders’ Meeting. The purchases will be carried out on the
Italian Stock Exchange (Euronext Milan) and on multilateral trading facilities (MTFs), in compliance with applicable
rules and regulations, subject to a maximum price per common share equal to the average of the highest price on
each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Euronext Milan
plus 10% (maximum price) and to a minimum price per common share equal to the average of the lowest price on
each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Euronext Milan
minus 10% (minimum price). The actual timing, number and value of common shares repurchased under the
Program will depend on various factors, including market conditions, general business conditions, and compliance
with applicable legal requirements. The Program does not oblige the Company to repurchase any common shares,
and it may be suspended, discontinued, or modified upwards at any time, for any reason and without previous notice,
in accordance with applicable laws and regulations.
CNH Industrial  Consolidated Financial Statements at December 31, 2021  240
March 1, 2022
The Board of Directors
Suzanne Heywood
Scott W. Wine
Léo W. Houle
Catia Bastioli
Howard W. Buffett
John Lanaway
Alessandro Nasi
Vagn Sørensen
Åsa Tamsons
CNH Industrial  Consolidated Financial Statements at December 31, 2021  241
COMPANY
FINANCIAL STATEMENTS
At December 31, 2021
Company Financial Statements at December 31, 2021  242
INCOME STATEMENT
for the years ended December 31, 2021 and 2020
(€ thousand)
Note
2021
2020
Net revenues
(1)
1,459,770
1,213,570
Cost of sales
1,222,763
1,043,939
GROSS PROFIT
237,007
169,631
Selling, general and administrative costs
(2)
163,729
128,181
Research and development costs
(3)
23,234
45,503
NET MARGIN
50,044
(4,053)
Restructuring expenses
(4)
1,031
1,209
Other income/(expenses)
(5)
(35,393)
(7,749)
Financial income/(expenses)
(6)
(69,081)
(59,140)
PROFIT/(LOSS) BEFORE TAXES
(55,461)
(72,151)
Income tax benefit (expense)
(7)
12,676
9,422
Result from Investments in Group companies and other equity
interests
(8)
1,513,099
(593,901)
NET PROFIT/(LOSS)
1,470,314
(656,630)
Company Financial Statements at December 31, 2021  243
STATEMENT OF FINANCIAL POSITION
(before allocation of the result)
(€ thousand)
Note
At December 31, 2021
At December 31, 2020
ASSETS
Intangible assets
(10)
94,462
72,151
Property, plant and equipment
(11)
86,647
83,484
Financial fixed assets
(12)
16,148,723
13,715,788
Investments in Group companies and other equity interests
14,772,772
12,401,414
Other financial assets
1,374,557
1,312,530
Deferred tax assets
(7)
1,394
1,844
Total Fixed assets
16,329,832
13,871,423
Inventories
(13)
135,787
105,686
Trade receivables
(14)
292,482
271,788
Current financial receivables
(15)
278,517
192,435
Other current assets
(16)
85,506
71,813
Cash and cash equivalents
(17)
99,003
69,119
Total Current assets
891,295
710,841
TOTAL ASSETS
17,221,127
14,582,264
EQUITY, PROVISIONS AND LIABILITIES
Equity
(19)
Share capital
17,609
17,609
Treasury shares
(71,805)
(93,228)
Capital reserve
2,476,802
2,413,347
Legal reserve
1,624,159
901,779
Retained profit/(loss)
1,893,304
2,837,219
Profit/(loss) for the year
1,470,314
(656,630)
Total Equity
7,410,383
5,420,096
Provision for employee benefits
(20)
204,959
265,057
Other provisions
(21)
125,451
116,742
Total Provisions
330,410
381,799
Non-current debt
(22)
1,026,978
973,553
Total Non-current liabilities
1,026,978
973,553
Trade payables
(23)
374,477
304,900
Current financial liabilities
(24)
7,910,035
7,379,237
Other debt
(25)
168,844
122,679
Total Current liabilities
8,453,356
7,806,816
TOTAL EQUITY, PROVISIONS AND LIABILITIES
17,221,127
14,582,264
Company Financial Statements at December 31, 2021  244
NOTES TO THE
COMPANY FINANCIAL STATEMENTS
PRINCIPAL ACTIVITIES
CNH Industrial N.V. (the “Company” and collectively with its subsidiaries, “CNH Industrial” or the “CNH Industrial Group”
or the “Group”) is the company formed by the business combination transaction (the “Merger”), completed on
September 29, 2013, between Fiat Industrial S.p.A. (“Fiat Industrial” and, together with its subsidiaries, the “Fiat
Industrial Group”) and its majority owned subsidiary CNH Global N.V. (“CNH Global”). CNH Industrial N.V. is
incorporated under the laws of the Netherlands. CNH Industrial N.V. has its corporate seat in Amsterdam, the
Netherlands, and the place of effective management of the Company is in the United Kingdom. The Company’s
principal office and business address is at 25 St. James’s Street, London, SW1A 1HA, United Kingdom. The Company
is registered at the Commercial Register kept at the Chamber of Commerce in Amsterdam under file number 56532474
and at the Companies House in the United Kingdom under file number FC031116 BR016181. The Netherlands is the
Company’s home member state for the purposes of the EU Transparency Directive (Directive 2004/109/EC, as
amended). CNH Industrial is a leading company in the capital goods sector that, through its various businesses,
designs, produces and sells agricultural equipment, construction equipment, trucks, commercial vehicles, buses and
specialty vehicles, in addition to a broad portfolio of powertrain applications (see Note 28 “Segment reporting” of the
Consolidated Financial Statements included in this Annual Report). In addition, CNH Industrial’s Financial Services
segment offers an array of financial products and services, including retail financing for the purchase or lease of new
and used CNH Industrial and other manufacturers’ products and other retail financing programs and wholesale
financing to dealers.
As parent company, CNH Industrial N.V. has also prepared consolidated financial statements for CNH Industrial Group
for the year ended December 31, 2021.
History of CNH Industrial
During 2013, the process of combining the activities of CNH and Fiat Industrial was completed with the following steps:
▪the cross-border merger of Fiat Netherlands Holding N.V. (“FNH”) with and into Fiat Industrial (the “FNH Merger”)
which occurred on August 1, 2013;
▪the cross-border reverse merger of Fiat Industrial with and into FI CBM Holdings N.V. (CNH Industrial after the
Merger) (the “FI Merger”); and
▪the Dutch merger of CNH Global with and into FI CBM Holdings N.V. (the “CNH Merger”).
A primary objective of the Merger was to simplify the capital structure of Fiat Industrial (CNH Industrial subsequent to
the Merger) by creating a single class of liquid stock listed on the NYSE and on the Euronext Milan.
All the companies (i.e., Fiat Industrial, FI CBM Holdings N.V., FNH and CNH Global N.V.) involved in the Merger were
part of Fiat Industrial; in particular: (i) FNH was a wholly-owned direct subsidiary of Fiat Industrial; (ii) FI CBM Holdings
N.V. was a wholly-owned direct subsidiary of Fiat Industrial; and (iii) CNH Global was an indirect subsidiary of Fiat
Industrial (controlled through FNH which owned approximately 87% of CNH Global’s capital stock).
The deeds of merger for the merger of Fiat Industrial and CNH Global with and into CNH Industrial N.V. were executed,
respectively, on September 27 and 28, 2013. The effective date of the Merger was September 29, 2013.
During 2014, the Company acquired the activities of the plant located in Basildon, United Kingdom. These activities,
which were previously held by a subsidiary, were transferred to the Company. The principal activity of the plant is the
manufacture and sale of tractors and the sale of agricultural and construction equipment and machinery in the local
market acting as distributor of product manufactured in other Group companies. With effect May 1, 2014 and as a
consequence of the transfer, CNH Industrial N.V. shows in the Company financial statements the figures related to the
operations of the Basildon plant.
Basis of preparation
The 2021 Company financial statements of the parent company, CNH Industrial N.V., together with the notes thereto
were authorized for issuance by the Board of Directors on March 1, 2022, and have been prepared in accordance with
the legal requirements of Part 9, Book 2 of the Dutch Civil Code.
Company Financial Statements at December 31, 2021  245
Section 362 (8), Book 2, Dutch Civil Code, allows companies that apply IFRS as adopted by the European Union in
their consolidated financial statements to use the same measurement principles in their company financial statements.
The accounting policies are described in a specific section, “Significant accounting policies”, of the Consolidated
Financial Statements included in this Annual Report. In these Company financial statements, investments in
subsidiaries are accounted for using the equity method. The Company financial statements are prepared on a going
concern basis in accordance with paragraph 25 of IAS 1.
CNH Industrial N.V. financial statements are presented in euros, the Company’s functional currency. The euro functional
currency of the Company financial statements differs from the U.S. dollar presentation currency of the Consolidated
Financial Statements, which was elected to be used in order to improve comparability with main competitors, mainly in
agricultural equipment and construction equipment businesses, and to provide more meaningful information to U.S.
investors.
Iveco Group Business Spin-off and Discontinued Operations
During 2021, CNH Industrial completed a strategic project to separate the Commercial and Specialty Vehicles business,
the Powertrain business, and the related Financial Services business (together the “Iveco Group Business”) from the
Agriculture business, the Construction business, and the related Financial Services business.
The Iveco Group Business was separated from CNH Industrial N.V. in accordance with Section 2:334a (3) of the Dutch
Civil Code (Burgerlijk Wetboek) by way of a legal statutory demerger (juridische afsplitsing) to Iveco Group N.V. (the
"Demerger"), effective January 1, 2022.
The principal phases leading up to completion of the Demerger were as follows:
▪On September 3, 2019, CNH Industrial  announced at its Capital Markets Day event the intended Demerger.
▪On December 23, 2021, an Extraordinary General Meeting of CNH Industrial shareholders was held to
approve the Demerger of Iveco Group Business.
▪On December 27, 2021, Borsa Italiana has admitted Iveco Group N.V. common shares to listing on Euronext
Milan.
▪Following receipt of the above authorizations, the deed of Demerger was executed on December 31, 2021,
with effectiveness of the Demerger on January 1, 2022.
▪On January 3, 2022 (the “First Trading Date”) Iveco Group common shares began trading on the regulated
market Euronext Milan, under the ticker symbol ‘IVG’. As a result of the Demerger, each holder of CNH
Industrial common shares (and special voting shares as the case may be) received one Iveco Group share for
every five CNH Industrial common shares (or special voting share as the case may be) held at close of
business on the record date for allocation (January 4, 2022). Since January 3, 2022, CNH Industrial N.V. and
Iveco Group N.V. have been quoted separately on the regulated markets and operate as independent listed
companies, each with its own management and Board of Directors.
As the transaction took effect on January 1, 2022, the consolidated financial statements for the year ended December
31, 2021 relate to CNH Industrial Pre-Demerger. Moreover, in accordance with IFRS 5 – Non-current Assets Held for
Sale and Discontinued Operations, as the Demerger became highly probable in December, the Iveco Group Business
is classified and presented as Discontinued Operations in the Consolidated Financial Statements. That presentation
has resulted in the following:
▪for both years 2021 and 2020 (the latter presented for comparative purposes), the operating results of Iveco
Group Business are presented in a single line item "Profit/(Loss) from Discontinued Operations, net of tax"
within the Consolidated Income Statement;
▪all assets and liabilities (excluding equity) relating to Iveco Group Business at December 31, 2021 are
reclassified as Assets held for distribution and Liabilities held for distribution, respectively, within the
Consolidated Statement of Financial Position;
▪for both years 2021 and 2020 (the latter presented for comparative purposes), the cash flows arising from the
Iveco Group Business are presented in the Consolidated Statement of Cash Flows as separate line items
under cash flows from operating, investing and financing activities.
For additional detail of items presented under Discontinued Operations in the Consolidated Statements of Income,
Financial Position and Cash Flows, refer to the Consolidated Financial Statements,  section "Discontinued Operations -
Iveco Group Business".
Additionally, as the Demerger is a “business combination involving entities or businesses under common control”, it is
outside the scope of application of IFRS 3 – Business Combinations and IFRIC 17- Distributions of Non-cash Assets to
Owners. Accordingly, in the 2022 Consolidated Financial Statements for CNH Industrial Post-Demerger and Iveco
Company Financial Statements at December 31, 2021  246
Group, the opening position for items in the statement of financial position will be equivalent to the carrying amounts
reported in the consolidated financial statements of CNH Industrial Pre-Demerger.
COVID-19 pandemic and use of accounting estimates and management’s assumptions
The COVID-19 pandemic and the related actions of governments and other authorities to contain COVID-19 spread
continue to affect CNH Industrial’s business, results and cash flow.
Governments in many countries where the Company operates, designated part of our businesses as essential critical
infrastructure businesses. This designation allows CNH Industrial to operate in support of its dealers and customers to
the extent possible. CNH Industrial also continues to prioritize the health, safety and well-being of its employees.
The Company remains cautious about future impacts on CNH Industrial's end-markets and business operations of
restrictions on social interactions and business operations to limit the resurgence of the pandemic. CNH Industrial is
closely monitoring the impact of the COVID-19 pandemic on all aspects of its business, its employees and the
Company's results of operations, financial condition and cash flows.
The main impacts of the pandemic on significant accounting matters are disclosed below.
The preparation of the Company Financial Statements requires management to make estimates and assumptions that
affect the reported amounts of income, expenses, assets, liabilities, accumulated other comprehensive income and
disclosure of contingent assets and contingent liabilities, as further described in the following paragraph "Use of
estimates".
Due to the currently unforeseeable global consequences of the COVID-19 pandemic, these estimates and assumptions
are subject to increased uncertainty. Actual results could differ materially from the estimates and assumptions used in
preparation of the financial statements. If in the future such estimates and assumptions, which are based on
management’s best judgment at the date of the Company Financial Statements, deviate from the actual circumstances,
the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change. 
These Company Financial Statements include all updates of estimates and assumptions considered necessary by
management to fairly state the Company’s results of operations and financial position. Updated estimates and
assumptions to incorporate the expected consequences of the COVID-19 pandemic were also included in the analysis
of the recoverability and collectability of financial assets, especially of receivables from financing activities. Finally, with
regard to hedge accounting, estimates were updated concerning whether forecast transactions can still be assumed to
be highly likely to occur.
CNH Industrial is exposed to operational financial risks such as credit risk, liquidity risk and market risk, mainly relating
to exchange rates and interest rates. For a detailed description of this information see the “Risk management and
Control System” section of the Board Report, Note 17 “Current receivables and Other current financial assets” and Note
30 “Information on financial risks” of the Consolidated Financial Statements included in this Annual Report.
Climate related matters
CNH Industrial has an established risk management process that includes the assessment and monitoring of climate-
related risk. These assessments are used by the Company to identify not only risk exposure, but also opportunities, on
which the Company’s climate change strategy is based. The identification of these climate-related risks and
opportunities, along with the analysis of sustainability macrotrends, led to the definition of a decarbonization strategy,
which in turn has been incorporated within, and regularly influences, the Company’s Strategic Business Plan. To further
address the potential impacts of climate change, CNH Industrial has implemented relevant projects and a number of
other specific climate-related topics and has defined long-term strategic targets (e.g., CO2 emissions reduction in
manufacturing plants, reduction of CO2 emissions in logistics processes, share of product portfolio available with natural
gas powertrains).
There has been increasing interest in how climate change will impact the Group’s business. With reference to the
climate related matters, a critical review was undertaken, and a focused analysis performed to identify, and
consequently manage, the principal risks and uncertainties to which the Group is exposed. The most significant area of
effort will be the management of water scarcity and waste and the reducing energy and GHG emissions in the supply
chain area. CNH Industrial recognizes the importance of climate change risk and promotes a responsible use of
resources and a reduction of the environmental impact of production to mitigate climate change. In this context, CNH
Industrial Group has adopted an environmental policy that applies to all company locations and divisions and has set up
a structure dedicated to control environmental pollution, waste, and water disposal as well as emission reduction.
In particular, considering the financial statements information are presented through historical values which, by their
nature, do not fully capture future events, all significant assumptions and estimates underlying the preparation of the
following items were subject to an analysis in order to identify and address the new uncertainties related to climate
changes which could affect the business: going concern, inventory management, property, plant and equipment,
Company Financial Statements at December 31, 2021  247
goodwill, brands, intangible assets with a finite life, tax reliefs, revenue recognition, provisions and onerous contracts.
The analysis conducted were based on the Group strategy outlined in the context of the global supply chain
environmental targets and did not highlight any critical situations that cannot be attributable to and addressed in the
ordinary course of the business.
Format of the financial statements
As a consequence of the acquisition in 2014 of the manufacturing activity carried out in Basildon, CNH Industrial N.V.
presents an income statement using a classification based on the function of the expenses (also referred to as the “cost
of sales” method) rather than one based on their nature, as this is believed to provide information that is more relevant.
New standards and amendments effective from January 1, 2021
▪On August 27, 2020 the IASB issued Interest Rate Benchmark Reform—Phase 2 (Amendments to IFRS 9,
IAS 39, IFRS 7, IFRS 4 and IFRS 16), which addresses the accounting for changes in the basis for
determining contractual cash flows as a consequence of IBOR reform. Furthermore, the amendments include
additional temporary exceptions from applying specific hedge accounting requirements and additional
disclosures. The amendments are effective retrospectively for annual reporting periods beginning on or after
January 1, 2021. These amendments had no impact on these Company Financial Statements. The Company
intends to apply these amendments in the future periods if they become applicable.
Accounting standards, amendments and interpretations not yet applicable and not early adopted by the
Company
The main accounting standards, amendments and interpretations not yet applicable and not early adopted by the
Company are the following:
▪On May 14, 2020 the IASB issued Property, Plant and Equipment—Proceeds before Intended Use
(Amendments to IAS 16) to prohibit deducting from the cost of an item of property, plant and equipment any
proceeds from selling items produced before that asset is available for use and clarifying the meaning of
"testing whether an asset is functioning properly". These amendments are effective retrospectively from
January 1, 2022.
▪On May 14, 2020, the IASB issued Onerous Contracts—Cost of Fulfilling a Contract (Amendments to IAS 37)
specifying that the cost of fulfilling a contract comprises the costs that relate directly to the contract, including
both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to
fulfilling contracts. These amendments are effective retrospectively from January 1, 2022.
▪On May 14, 2020 the IASB issued the Annual Improvements to IFRS 2018-2020 Cycle. The most important
topics addressed in these amendments are: (i) on IFRS 9 - Financial Instruments clarifying which fees an
entity includes when it applies the "10 per cent" test in assessing whether to derecognize a financial liability;
and (ii) on IFRS 16 - Leases removing the illustration of the reimbursement of leasehold improvements. These
improvements are effective from January 1, 2022.
Furthermore, at the date of the Company Financial Statements, the European Union has not yet completed its
endorsement process for the amendments and improvements, as reported below.
The Company is currently evaluating the impact of the adoption of these amendments and improvements on its
Company Financial Statements or disclosures:
▪On February 12, 2021 the IASB issued the Amendments to IAS 1 Presentation of Financial Statements and
IFRS Practice Statement 2: Disclosure of Accounting policies, requiring to disclose the material accounting
policy information rather than the significant accounting policies. Furthermore, the amendments to IFRS
Practice Statement 2 provide guidance on how to apply the concept of materiality to accounting policy
disclosures. This amendment is effective from January 1, 2023.
▪On February 12, 2021 the IASB issued the Amendments to IAS 8 Accounting policies, Changes in Accounting
Estimates and Errors: Definition of Accounting Estimates. The amendments clarify how to distinguish changes
in accounting policies (generally also applied retrospectively to past transactions and other past events) from
changes in accounting estimates (applied prospectively only to future transactions and other future events).
This amendment is effective from January 1, 2023.
▪On May 7, 2021 the IASB issued Deferred Tax related to Assets and Liabilities arising from a Single
Transaction (Amendments to IAS 12), which specifies how companies should account for deferred tax on
transactions such as leases and decommissioning obligations. The amendments clarify that no exemption
applies on such transactions and that companies are required to recognize deferred tax when they recognize
the related assets or liabilities for the first time. The amendments are effective for annual reporting periods
beginning on or after January 1, 2023, with early application permitted.
Company Financial Statements at December 31, 2021  248
COMPOSITION AND PRINCIPAL CHANGES
1. Net revenues
As a result and through the transfer in 2014 of Basildon operations, the Company operates primarily in the agricultural
equipment manufacturing industry in the United Kingdom. Net revenues comprise the following:
(€ thousand)
2021
2020
Revenues from:
Third parties
530,526
438,126
Group companies
929,244
775,444
Total Net revenues
1,459,770
1,213,570
Net revenues are made up of agricultural equipment sales for €1,377,647 thousand (€1,171,485 thousand in 2020) and
construction equipment sales for €82,123 thousand (€42,085 thousand in 2020).
2. Selling, general and administrative costs
The Selling, general and administrative costs of €163,729 thousand in 2021 (€128,181 thousand in 2020) mainly
comprise marketing, advertising, sales personnel costs and other expenses which are not attributable to sales,
production and research and development functions, net of any intercompany recharge due to services provided to
Group subsidiaries.
3. Research and development costs
In 2021, Research and development costs of €23,234 thousand (€45,503 thousand in 2020) comprise all the research
and development costs not recognized as assets in the year, amounting to €12,110 thousand (€21,660 thousand in
2020), and the amortization of capitalized development costs of €11,124 thousand (€23,843 thousand in 2020). During
2021, the Company incurred new expenditure for capitalized development costs of €5,042 thousand (€17,406 thousand
in 2020).
4. Restructuring expenses
Restructuring expenses amount to €1,031 thousand in 2021 (€1,209 thousand in 2020) and represent the total costs
associated to the restructuring due to the Company downsizing of the workforce not replaced.
5. Other income/(expenses)
This item consists of miscellaneous costs which cannot be allocated to specific functional areas, such as accruals for
various provisions not attributable to other items of Cost of sales or Selling, general and administrative costs, costs
arising from the transition terms related to the changes to the current pension arrangement, indirect taxes and duties,
net of income arising from operations which is not attributable to the sale of goods and services. The net amount of
€35,393 thousand in 2021 (€7,749 thousand in 2020) is made up of €11,338 thousand (€8,598 thousand in 2020)
related to Other income, more than offset by €46,731 thousand (€16,347 thousand in 2020) of Other costs. In 2021,
Other costs primarily include costs associated with the Demerger for a total amount of €42,638 thousand, mainly for
strategic advisors, consulting fees, tax and legal advisors, and finance expenses, as well as for other audit services for
€4,175 thousand.
6. Financial income/(expenses)
The breakdown of financial income and expenses was as follows:
(€ thousand)
2021
2020
Financial income
72,761
72,541
Financial expenses
(141,842)
(131,681)
Total Financial income/(expenses)
(69,081)
(59,140)
Company Financial Statements at December 31, 2021  249
Financial income consisted of the following:
(€ thousand)
2021
2020
Financial income from Group companies
66,162
66,881
Interest income from banks
—
337
Currency exchange gains, net
6,599
5,323
Total Financial income
72,761
72,541
Financial income from Group companies includes fees charged to Group subsidiaries on guarantees issued in favor of
third parties but in the interest of the subsidiaries mainly for bonds issued from Group companies and for credit facilities
granted to Group companies. The amount charged during 2021 is €12,921 thousand (€13,287 thousand in 2020).
The remaining income from Group companies of €53,241 thousand (€53,594 thousand in 2020) relates mainly to
Interest income charged to Group companies in relation to loans granted to them.
Financial expenses consisted of the following:
(€ thousand)
2021
2020
Financial expenses payable to Group companies
96,085
79,879
Financial expenses payable to third parties
45,757
51,802
Currency exchange expenses, net
—
—
Total Financial expenses
141,842
131,681
Financial expenses payable to Group companies increased versus prior year by €16,206 thousand mainly due to the
higher average outstanding debt due to the Group treasury companies. The increase was slightly offset by the lower
interest rate applied.
Financial expenses payable to third parties decreased by €6,045 thousand compared to 2020, and this was essentially
due to the decrease of Third parties funding, Bank loans and Commercial Papers.
7. Income taxes
A breakdown of taxes recognized in the income statement is provided below:
(€ thousand)
2021
2020
Current taxes:
United Kingdom corporate income taxes
3,371
5,500
Italian corporate income taxes
7,878
4,813
Total current taxes
11,249
10,313
Deferred taxes for the period:
United Kingdom deferred taxes
—
—
Italian deferred taxes
(450)
773
Total deferred taxes for the period
(450)
773
Taxes relating to prior periods
1,877
(1,664)
Total Income tax benefit (expense)
12,676
9,422
The Italian current corporate income taxes credit of €7,878 thousand relates to tax losses of the CNH Industrial N.V.
Italian branch utilized by the Italian fiscal unit.
The U.K. current corporate income taxes credit of €3,371 thousand relates to a current tax charge of  €575 thousand for
withholding taxes, a corporate income tax payable of €4,355 thousand and a current tax credit of €8,301 thousand  for
tax losses utilized in the CNH Industrial N.V. U.K. tax group.
The Italian deferred tax credit of €450 thousand relates to timing differences of the Italian branch.
Company Financial Statements at December 31, 2021  250
Reconciliation between theoretical income taxes determined on the basis of tax rates applicable in the U.K. and income
taxes reported in the financial statements is as follows:
(€ thousand)
2021
2020
(Loss) before taxes
(55,461)
(72,151)
Weighted average U.K. statutory main corporation tax rate
19.00%
19.00%
Theoretical income tax (expense)
10,538
13,709
Current foreign tax expense
7,303
4,957
Tax effect of permanent differences
(13,903)
(7,113)
Deferred tax assets not recognized and write-down
7,311
(1,240)
Deferred taxes recognized in the Italian branch
(450)
773
Prior year adjustments
1,877
(1,664)
Current and deferred income tax recognized in the financial statements
12,676
9,422
CNH Industrial N.V. is incorporated in the Netherlands, but the Company is a tax resident of the United Kingdom. The
reconciliation of the differences between the theoretical income taxes at the parent statutory rate and the total income
taxes is presented on the basis of the weighted average of the United Kingdom statutory main corporation tax rates in
force over each of the Company’s calendar year reporting periods of 19.00% in both 2021 and 2020.
Deferred tax assets and liabilities are recognized for temporary differences between the carrying amount in the
statement of financial position and the tax base. Deferred tax assets are recognized to the extent it is probable that
future taxable profits will be available against which the temporary differences can be utilized. Amounts recognized and
unrecognized are as follows:
(€ thousand)
2021
2020
Deferred tax assets arising:
In relation to Tax depreciation
5,411
6,495
In relation to Pension deficit
53,874
50,159
In relation to short timing differences
24,056
16,706
Total
83,341
73,360
Deferred tax liabilities arising from:
Capitalization of development costs
(17,250)
(8,770)
Total
(17,250)
(8,770)
Theoretical tax benefit arising from tax loss carryforwards
105,311
78,163
Adjustments for assets whose recoverability is not probable
(170,008)
(140,909)
Total net deferred tax assets
1,394
1,844
The losses can be carried forward indefinitely, provided that the Company carries on the same trade and continues the
manufacturing activity in the United Kingdom.
The net deferred tax assets of €1,394 thousand relate to the Italian branch.
Adjustments for net deferred tax assets of €170,008 thousand (€140,909 thousand in 2020) have been made, as in the
opinion of the management it cannot be regarded as probable that there will be taxable profits against which these net
deferred tax assets can be recovered.
8. Result from Investments in Group companies and other equity interests
Result from Investments in Group companies and other equity interests was a profit of €1,513,099 thousand in 2021
(€593,901 thousand loss in 2020) and includes the Company’s share in the net profit or loss of the investees.
Company Financial Statements at December 31, 2021  251
9. Other information by nature of expense
The income statement includes personnel costs of €83,021 thousand in 2021 (€69,738 thousand in 2020), which
consist of the following:
(€ thousand)
2021
2020
Wages and salaries
58,771
49,571
Defined benefit plans
4
399
Defined contribution plans and other social security costs
12,059
10,849
Other personnel costs
12,187
8,919
Total personnel costs
83,021
69,738
An analysis of the average number of employees by category is as follows:
2021
2020
Managers
52
51
White-collar
339
345
Blue-collar
651
585
Average number of employees
1,042
981
None of these employees are based in The Netherlands, but they are mainly based in the United Kingdom. Some of the
Company’s managers carried out their activities at the principal subsidiaries of the Group and the associated costs were
charged back to the legal entities concerned.
10. Intangible assets
Changes in Intangible assets in 2021 and 2020 are as follows:
(€ thousand)
Goodwill
Development
costs
Concessions,
licenses and
similar rights
Intangible
assets in
progress and
advances
Other
intangible
assets
Total
Gross carrying amount Balance at December 31, 2019
1,968
198,632
14,678
31
74
215,383
Additions
—
17,406
568
3,361
—
21,335
Divestitures and other changes
—
(7,696)
193
—
—
(7,503)
Balance at December 31, 2020
1,968
208,342
15,439
3,392
74
229,215
Additions
—
5,042
1,629
5,046
4,107
15,824
Divestitures and other changes
—
(45,396)
—
(4,769)
—
(50,165)
Balance at December 31, 2021
1,968
167,988
17,068
3,669
4,181
194,874
Accumulated amortization and impairment losses
Balance at December 31, 2019
—
(117,965)
(11,942)
—
(74)
(129,981)
Amortization/Impairment
(1,593)
(23,843)
(1,647)
—
—
(27,083)
Divestitures and other changes
—
—
—
—
—
—
Balance at December 31, 2020
(1,593)
(141,808)
(13,589)
—
(74)
(157,064)
Amortization/Impairment
(11,124)
(998)
—
—
(12,122)
Divestitures and other changes
—
68,774
—
—
—
68,774
Balance at December 31, 2021
(1,593)
(84,158)
(14,587)
—
(74)
(100,412)
Carrying amount at December 31, 2020
375
66,534
1,850
3,392
—
72,151
Carrying amount at December 31, 2021
375
83,830
2,481
3,669
4,107
94,462
There were no Intangible Assets pledged as  security at December 31, 2021 and 2020.
Company Financial Statements at December 31, 2021  252
11. Property, plant and equipment
Changes in Property, plant and equipment in 2021 and 2020 are as follows:
(€ thousand)
Land and
buildings
Plant and
machinery
Special
tools
Tangible
assets in
progress
Other
tangible
assets
Right-of-use-
assets
Total
Gross carrying amount Balance at December 31, 2019
33,220
23,186
174,249
5,348
45,123
12,557
293,683
Additions
420
1,006
3,798
8,832
14,145
1,294
29,495
Divestitures and other changes
—
—
(236)
(5,157)
(14,227)
876
(18,744)
Balance at December 31, 2020
33,640
24,192
177,811
9,023
45,041
14,727
304,434
Additions
1,677
1,890
8,870
9,997
16,227
3,212
41,873
Divestitures and other changes
—
—
(70)
—
(11,636)
291
(11,415)
Balance at December 31, 2021
35,317
26,082
186,611
19,020
49,632
18,230
334,892
Accumulated depreciation and impairment losses
Balance at Balance at December 31, 2019
(23,878)
(11,521)
(147,233)
—
(19,333)
(3,142)
(205,107)
Depreciation
(1,372)
(1,153)
(8,447)
—
(2,054)
(3,254)
(16,280)
Divestitures and other changes
—
—
115
—
—
322
437
Balance at December 31, 2020
(25,250)
(12,674)
(155,565)
—
(21,387)
(6,074)
(220,950)
Depreciation
(1,395)
(1,260)
(7,556)
(12,841)
(1,954)
(3,142)
(28,148)
Divestitures and other changes
—
—
30
—
—
823
853
Balance at December 31, 2021
(26,645)
(13,934)
(163,091)
(12,841)
(23,341)
(8,393)
(248,245)
Carrying amount at December 31, 2020
8,390
11,518
22,246
9,023
23,654
8,653
83,484
Carrying amount at December 31, 2021
8,672
12,148
23,520
6,179
26,291
9,837
86,647
At December 31, 2021, right-of-use assets refer primarily to lease contracts for industrial buildings of €8,248 thousand
(€6,563 thousand at December 31, 2020), plant, machinery and equipment of €741 thousand (€1,124 thousand at
December 31, 2020), and other assets of €845 thousand (€965 thousand at December 31, 2020).
Short-term and low-value leases are not recorded in the statement of financial position; CNH Industrial recognizes
lease expense for these leases on a straight-line basis over the lease term (see Note 21 "Non-current debt"). Lease
expense recognized in 2021, for short-term and low-value leases were €472 thousand and €124 thousand, respectively
(€469 thousand and €143 thousand, respectively, in 2020).
There were no Tangible Assets pledged as security at December 31, 2021 and 2020.
Company Financial Statements at December 31, 2021  253
12. Financial fixed assets
At December 31, 2021, Investments and other financial assets totaled €16,148,723 thousand and were as follows:
(€ thousand)
At December 31, 2021
At December 31, 2020
Change
Investments in Group companies and other equity
interests
14,772,772
12,401,414
2,371,358
Other financial assets
1,374,557
1,312,530
62,027
Deferred tax assets
1,394
1,844
(450)
Total financial fixed assets
16,148,723
13,715,788
2,432,935
Investments in Group companies and other equity interests
At December 31, 2021, Investments in Group companies and other equity interests totaled €14,772,772 thousand and
were subject to the following changes during the year:
(€ thousand)
At December 31, 2021
At December 31, 2020
Balance at beginning of year
12,401,414
13,179,123
Contribution to Investments in Group companies and other equity interests
1,868,602
784,910
Acquisitions
765,781
6,150
Repayment of Capital Reserves
(538,140)
—
Disposal
(1,326,920)
—
Result from Investments in Group companies and other equity interests
1,513,099
(593,901)
Dividend received
(448,971)
(48,856)
Cumulative translation adjustments and other OCI movements
515,640
(939,201)
Other
22,267
13,189
Balance at end of year
14,772,772
12,401,414
The item Other primarily includes the impact of IAS 29 - Financial reporting in hyperinflationary economies applied for
subsidiaries that prepare their financial statements in a functional currency of a hyperinflationary economy. In particular,
from July 1, 2018, Argentina’s economy was considered to be hyperinflationary.
In 2021, in view of the Demerger, some subsidiaries were involved in a series of internal transactions in order to
optimize the Group structure and facilitate the transfer of the subsidiaries belonging to the On-Highway business, now
part of Iveco Group since January 1, 2022. 
“Contribution to Investments in Group companies and other equity interests”, “Acquisitions”, “Repayments of Capital
Reserves” and “Disposal” include the impact of the various transfers which were part of the overall project.
A list of Company’s investments has been included under Appendix of this Annual Report.
Other financial assets
At December 31, 2021, Other financial assets totaled €1,374,557 thousand, as represented below:
(€ thousand)
At December 31, 2021
At December 31, 2020
Change
Other financial assets
1,331,611
1,255,909
75,702
Fees receivable for guarantees issued
42,946
56,621
(13,675)
Total Other financial assets
1,374,557
1,312,530
62,027
At December 31, 2021, Other financial assets are represented by two U.S. dollar term loans facilities granted to Case
New Holland Industrial Inc. In addition, Case New Holland Industrial Inc. issued a Promissory Note to the Company.
The first term loan was issued in August 2016 with maturity date August 15, 2023, consisting of a first tranche having
fixed interest rate in the principal amount of $450 million or €397,316 thousand ($450 million or €366,718 thousand in
2020), and a second tranche having floating interest rate in the principal amount of $150 million or €132,439 thousand
($150 million or €122,239 thousand in 2020).
The second one was issued on November 14, 2017, with maturity date November 15, 2027, for a principal amount of
$500 million or €441,462 thousand ($500 million or €407,465 thousand in 2020). The interest rate is fixed.
The increase of the carrying value of the two U.S. dollar term loans of €75,702 thousand is due to foreign exchange
movement as the U.S. dollar strengthened against the euro during the current year.
Company Financial Statements at December 31, 2021  254
On August 25, 2017, Case New Holland Industrial Inc. issued a Promissory Note to the Company in the principal
amount of €350 million, with a maturity date of August 25, 2024. The Promissory Note carries a floating interest rate.
Moreover, Other financial assets include accrued interest charges related to the term loan facilities for €10,394
thousand (€9,487 thousand in 2020).
At December 31, 2021, the remaining amount of €42,946 thousand (€56,621 thousand in 2020) refers to the present
value of the fees that the Company will collect in future years based on specific agreements for guarantees issued in
favor of third parties in the interest of Group companies, mainly for bonds issued from Group companies and credit
facilities granted to Group companies (see also Note 21 "Non-current debt").
The decrease of €13,675 thousand is mainly due to the reduction of the percentage applied for the commissions
calculated on the guarantees issued and the amount of the guarantees issued.
Deferred tax assets
For Deferred tax assets comment see Note 7 "Income taxes".
13. Inventories
(€ thousand)
At December 31, 2021
At December 31, 2020
Change
Raw materials
67,819
51,345
16,474
Finished goods
48,971
44,389
4,582
Work in progress
18,997
9,952
9,045
Total Inventories
135,787
105,686
30,101
There were no inventories pledged as security at December 31, 2021 and 2020. At December 31, 2021 and 2020,
Inventory amounts are net of the obsolescence reserve of €7,331 thousand and €6,881 thousand, respectively.
14. Trade receivables
At December 31, 2021, trade receivables totaled €292,482 thousand, a net increase of €20,694 thousand over year-
end 2020, and they are essentially attributable to the operations of Basildon plant and almost entirely related to Group
companies. These amounts are net of a provision of €384 thousand (€366 thousand for 2020).
The carrying amount of trade receivables is deemed to approximate their fair value.
All trade receivables are due within one year and there are no significant overdue balances.
15. Current financial receivables
At December 31, 2021, current financial receivables amounted to €278,517 thousand, a net increase of
€86,082 thousand over year-end 2020. The item may be specified as follows:
At December 31, 2021
At December 31, 2020
(€ thousand)
due
within
one year
due
between
one and
five years
due
beyond
five years
Total
due
within
one year
due
between
one and
five years
due
beyond
five years
Total
Assets from derivative financial
instruments
3,511
—
—
3,511
10,319
—
—
10,319
CNH Industrial Finance Europe S.A.
274,856
—
—
274,856
181,272
—
—
181,272
Other current financial receivables
150
—
—
150
844
—
—
844
Total Current financial receivables
278,517
—
—
278,517
192,435
—
—
192,435
Current financial receivables are mainly made up of short-term financial receivables from CNH Industrial Finance
Europe S.A., the Group Treasury company, for €274,856 thousand at December 31, 2021 (€181,272 thousand at
December 31, 2020). Such financial receivables bear floating interest at market rate and their carrying amount is
deemed to approximate their fair value.
Assets from derivative financial instruments consist of derivative financial instruments measured at fair value at the
balance sheet date. Derivative instruments are classified as Level 2 in the fair value hierarchy. CNH Industrial utilizes
derivative instruments to mitigate its exposure to interest rate and foreign currency fluctuations. Derivatives used as
hedges are effective at reducing the risk associated with the exposure being hedged and are designated as a hedge at
the inception of the derivative contract.
Company Financial Statements at December 31, 2021  255
16. Other current assets
At December 31, 2021, other current assets amounted to €85,506 thousand, a net increase of €13,693 thousand
compared to December 31, 2020, and consisted of the following:
(€ thousand)
At December 31, 2021
At December 31, 2020
Change
Receivables from Group companies for consolidated Italian corporate tax
51,654
41,077
10,577
Receivables from Group companies for consolidated U.K. corporate tax
19,052
6,036
13,016
VAT receivables
506
684
(178)
Other indirect and direct taxes
5,136
4,857
279
Other receivables from Group companies and other related parties
315
12,500
(12,185)
Other current receivables
8,843
6,659
2,184
Total Other current assets
85,506
71,813
13,693
Receivables from Group companies for consolidated Italian corporate tax relate to taxes calculated on the taxable
income contributed by Italian subsidiaries participating in the domestic tax consolidation program.
Receivables from Group companies for consolidated U.K. corporate tax relate to taxes calculated on the taxable
income contributed by U.K. subsidiaries participating in the domestic tax consolidation program.
Following Brexit, the Italian VAT tax consolidation scheme was discontinued starting from January 1, 2020 and, as a
result, the Group’s subsidiaries directly manage relations with the Italian Tax Authority, thereby significantly reducing
relations with the parent company.
Other current assets are entirely due within one year.
17. Cash and cash equivalents
(€ thousand)
At December 31, 2021
At December 31, 2020
Change
Cash at banks
1
4
(3)
Restricted cash
99,002
69,115
29,887
Total Cash and cash equivalents
99,003
69,119
29,884
At December 31, 2021, Cash and cash equivalents totaled €99,003 thousand and represented amounts held in euro
and other currency denominated current accounts. The carrying amount of cash and cash equivalents is deemed to be
in line with their fair value.
Credit risk associated with cash and cash equivalents is considered limited as the counterparties are leading national
and international banks.
Restricted cash mainly includes bank deposits that may be used exclusively for the repayment of the net liability relating
to Pension plans in the U.K.
Company Financial Statements at December 31, 2021  256
18. Iveco Group Business Spin-off
(€ thousand)
% owned
At December 31, 2021
Investments in Group companies and other equity interest
Iveco Capital Solutions S.p.A.
100.000%
365,188
FPT Industrial S.p.A.
100.000%
930,494
OOO Iveco Russia
99.960%
39,969
Iveco S.p.A.
100.000%
535,261
Iveco Arac Sanayi VE Ticaret A.S.
100.000%
33,567
Transolver Finance Establecimiento Financiero De Credito S.A.
49.000%
34,834
CNH Industrial Capital Ltd
100.000%
61,966
Iveco Trucks Australia Ltd
100.000%
49,136
ON Highway Brasil Ltda
99.998%
168,125
CNH Industrial Financial Service S.A.
100.000%
199,629
CNH Industrial SA (Pty) Ltd
100.000%
28,731
Iveco Poland Sp. ZO.O.
100.000%
22,952
FPT Industrial Brasil Ltda
100.000%
39,291
Iveco Magirus AG
88.340%
37,162
Iveco Belgium NV
98.983%
32,711
New Business Netherlands Holding B.V.
100.000%
1,152,546
Cifins S.p.A.
50.000%
93,054
Other minor Investments in Group companies which were demerged
32,384
Total Assets to be demerged
3,857,000
Financial payables to CNH Industrial Finance S.p.A.
(1,568,000)
Net Assets to be demerged
2,289,000
During 2021, CNH Industrial completed a strategic project to separate the Commercial and Specialty Vehicles business,
the Powertrain business, and the related Financial Services business (together the “Iveco Group Business”) from the
Agriculture business, the Construction business, and the related Financial Services business.
The Iveco Group Business was separated from CNH Industrial N.V. in accordance with Section 2:334a (3) of the Dutch
Civil Code (Burgerlijk Wetboek) by way of a legal statutory demerger (juridische afsplitsing) to Iveco Group N.V. (the
"Demerger"), effective January 1, 2022.
As the transaction took effect on January 1, 2022, the Company financial statements for the year ended December 31,
2021 relate to CNH Industrial Pre-Demerger.
The share of the profit of Iveco Group Business was recognized within the line item “Result from Investments in Group
companies and other equity interests” and amounts to €52,000 thousand (excluding non-controlling interests).
The above value of net assets to be demerged is equivalent to the effect of the Demerger on equity. The amount of
€2,289,000 thousand reduced the Capital Reserves of the Company as at January 1, 2022.
As values for the Demerger are based on the reported carrying amounts, and in these Company financial statements
the Investments in subsidiaries are accounted for using the equity method, no gains or losses were recognized and,
accordingly, the above items were also transferred to Iveco Group N.V at their book value as resulting in the Company
Financial Statements at December 31, 2021.
The short term financial payables to CNH Industrial Finance S.p.A. relate to an unsecure uncommitted revolving credit
facility which was transferred to Iveco Group N.V. for a total amount of €1,568,000 thousand. The amount was fully paid
by Iveco Group N.V. in January 2022.
Company Financial Statements at December 31, 2021   257
19. Equity
Changes in shareholders’ equity during 2020 and 2021 were as follows:
Share
capital
Treasury
shares
Capital
reserves
Legal reserves:
cumulative
translation
adjustment
reserve/OCI
Legal
reserves:
other
Retained
profit/(loss)
Profit/(loss) for
the year
Total
At December 31, 2019
17,609
(132,202)
2,430,632
(765,752)
2,753,915
1,875,196
780,723
6,960,121
Allocation of prior year result
—
—
—
—
—
780,723
(780,723)
—
Dividend distributed
—
—
—
—
—
—
—
—
Acquisition of treasury stock
—
—
—
—
—
—
—
—
Share based compensation: costs
accrued in the period and effects of share
issuance upon exercise of the grants
—
38,974
(5,903)
—
—
—
—
33,071
Result for the year
—
—
—
—
—
—
(656,630)
(656,630)
Current period change in OCI, net of taxes
—
—
—
(927,848)
—
—
—
(927,848)
Other movements
—
—
(11,381)
—
—
22,763
—
11,382
Legal reserve
—
—
—
—
(158,535)
158,535
—
—
At December 31, 2020
17,609
(93,228)
2,413,348
(1,693,600)
2,595,380
2,837,217
(656,630)
5,420,096
Allocation of prior year result
—
—
—
—
—
(656,630)
656,630
—
Dividend distributed
—
—
—
—
—
(148,967)
—
(148,967)
Acquisition of treasury stock
—
—
—
—
—
—
—
—
Share based compensation: costs
accrued in the period and effects of share
issuance upon exercise of the grants
—
21,423
62,608
—
—
—
—
84,031
Result for the year
—
—
—
—
—
—
1,470,314
1,470,314
Current period change in OCI, net of taxes
—
—
—
563,771
—
—
—
563,771
Other movements
—
—
846
—
—
20,292
—
21,138
Legal reserve
—
—
—
—
158,608
(158,608)
—
—
At December 31, 2021
17,609
(71,805)
2,476,802
(1,129,829)
2,753,988
1,893,304
1,470,314
7,410,383
Other movements of Retained profit/(loss) includes the impact of IAS 29 - Financial reporting in hyperinflationary
economies applied for subsidiaries that prepare their financial statements in a functional currency of a hyperinflationary
economy. In particular, from July 1, 2018, Argentina’s economy was considered to be hyperinflationary.
As the Company financial statements are prepared using the same measurement principles of the Consolidated
Financial Statements, including the investments that are accounted for using the equity method, the total Company
equity of €7,410 million as of December 31, 2021 is in line with the Consolidated equity (excluding non-controlling
interest) of $8,393 million converted using the exchange rate as of December 31, 2021 of 1.1326. In addition, the
Company profit for the year of €1,470 million equals the consolidated profit (excluding non-controlling interest) of
$1,739 million converted using the average exchange rate for 2021 of 1.1827.
The increase in equity of €1,990,287 thousand over year-end 2020 is mainly the result of the profit for the year of
€1,470,314 thousand, the positive changes in Other comprehensive income arising from the positive effect of currency
translation differences of €530,797 thousand, from the gains on the remeasurement of defined benefit plans of
€131,897 thousand, and from the positive impact of the transactions accounted for under the Cash flow hedge reserves
of €16,064 thousand, partly offset by the losses on the remeasurement of Equity Investments at fair value through OCI
of €114,987 thousand.
The positive effect of currency translation differences of €530,797 thousand includes the valuation of the opening
balances of Equity converted using the exchange rate as of December 31, 2021 of 1.1326.
Share capital
The Articles of Association of CNH Industrial N.V. provide for authorized share capital of €40 million, divided into
2 billion common shares and 2 billion special voting shares to be held with associated common shares, each with a per
share par value of €0.01. As of December 31, 2021, the Company’s share capital was €18 million (equivalent to
$25 million), fully paid-in, and consisted of 1,364,400,196 common shares (1,356,077,000 common shares outstanding,
net of 8,323,196 common shares held in treasury by the Company as described in the following section) and
396,474,276 special voting shares (371,218,250 special voting shares outstanding, net of 25,256,026 special voting
shares held in treasury by the Company as described in the section below).
Effects of the Demerger on the share capital of CNH Industrial N.V.
The share capital of CNH Industrial N.V. did not change as result of the Demerger on January 1, 2022. CNH Industrial
N.V. also did not receive any shares in Iveco Group N.V. as a part of the Demerger, as the portion of the shares held in
treasury by CNH Industrial N.V. was not eligible to be part of the Demerger and allocation of Iveco Group N.V. shares.
Company Financial Statements at December 31, 2021  258
Changes in the composition of the share capital of CNH Industrial during 2021 and 2020 are as follows:
(number of shares)
CNH Industrial
N.V. common
shares issued
Less:
Treasury
shares
CNH Industrial
N.V. common
shares
outstanding
CNH Industrial
N.V. loyalty
program
special voting
shares issued
Less:
Treasury
shares
CNH Industrial
N.V. loyalty
program
special voting
shares
outstanding
Total Shares
issued by
CNH
Industrial N.V.
Less:
Treasury
shares
Total CNH
Industrial N.V.
outstanding
shares
Total CNH Industrial
N.V. shares at
December 31, 2019
1,364,400,196
(14,268,079)
1,350,132,117
396,474,276
(8,523,110)
387,951,166
1,760,874,472
(22,791,189)
1,738,083,283
Capital increase
—
—
—
—
—
—
—
—
—
(Purchases)/Sales of
treasury shares
—
3,778,354
3,778,354
—
(16,623,012)
(16,623,012)
—
(12,844,658)
(12,844,658)
Cancellation of shares
—
—
—
—
—
—
—
—
—
Total CNH Industrial
N.V. shares at
December 31, 2020
1,364,400,196
(10,489,725)
1,353,910,471
396,474,276
(25,146,122)
371,328,154
1,760,874,472
(35,635,847)
1,725,238,625
Capital increase
—
—
—
—
—
—
—
—
—
(Purchases)/Sales of
treasury shares
—
2,166,529
2,166,529
—
(109,904)
(109,904)
—
2,056,625
2,056,625
Total CNH Industrial
N.V. shares at
December 31, 2021
1,364,400,196
(8,323,196)
1,356,077,000
396,474,276
(25,256,026)
371,218,250
1,760,874,472
(33,579,222)
1,727,295,250
During the years ended December 31, 2021 and 2020, 109.904 million and 16.6 million special voting shares,
respectively, were acquired by the Company following the de-registration of the corresponding number of qualifying
common shares from the Loyalty Register, net of transfer and allocation of special voting shares in accordance with the
Special Voting Shares - Terms and Conditions.
Furthermore, during the years ended December 31, 2021 and 2020, the Company delivered 2.2 million and 3.8 million
common shares, respectively, under the Company’s stock compensation plan, primarily due to the vesting or exercise
of share-based awards. See paragraph below “Share-based compensation” for further discussion.
The Company is required to maintain a special capital reserve to be credited against the share premium exclusively for
the purpose of facilitating any issuance or cancellation of special voting shares. The special voting shares do not carry
any entitlement to the balance of the special capital reserve. The Board of Directors is authorized to resolve upon (i)
any distribution out of the special capital reserve to pay up special voting shares or (ii) re-allocation of amounts to credit
or debit the special capital reserve against or in favor of the share premium reserve.
The Company is required to maintain a separate dividend reserve for the special voting shares. The special voting
shares shall not carry any entitlement to any other reserve of the Company. Any distribution out of the special voting
shares dividend reserve or the partial or full release of such reserve will require a prior proposal from the Board of
Directors and a subsequent resolution of the general meeting of holders of special voting shares.
From the profits, shown in the annual accounts, as adopted, such amounts shall be reserved as the Board of Directors
may determine.
The profits remaining thereafter shall first be applied to allocate and add to the special voting shares dividend reserve
an amount equal to one percent (1%) of the aggregate nominal amount of all outstanding special voting shares. The
calculation of the amount to be allocated and added to the special voting shares dividend reserve shall occur on a time-
proportionate basis. If special voting shares are issued during the financial year to which the allocation and addition
pertains, then the amount to be allocated and added to the special voting shares dividend reserve in respect of these
newly issued special voting shares shall be calculated as from the date on which such special voting shares were
issued until the last day of the financial year concerned. The special voting shares shall not carry any other entitlement
to the profits.
Any profits remaining thereafter shall be at the disposal of the general meeting of shareholders for distribution of
dividend on the common shares only subject to the provision that the distribution of profits shall be made after the
adoption of the annual accounts, from which it appears that the same is permitted.
Subject to a prior proposal of the Board of Directors, the general meeting of shareholders may declare and pay
dividends in U.S. dollars. Furthermore, subject to the approval of the general meeting of shareholders and the Board of
Directors having been designated as the body competent to pass a resolution for the issuance of shares in accordance
with Article 5 of the Articles of Association, the Board of Directors may decide that a distribution shall be made in the
form of shares or that shareholders shall be given the option to receive a distribution either in cash or in the form of
shares.
Company Financial Statements at December 31, 2021  259
Dividend Proposal and appropriation of the result
On March 1, 2022, the Board of Directors of CNH Industrial N.V. recommended and proposed to the Company’s
shareholders that the Company declare a dividend of €0.28 per common share, totaling approximately €380 million
(equivalent to approximately $426 million, translated at the exchange rate reported by the European Central Bank on
February 25, 2022). The proposal is subject to the approval of the Company’s shareholders at the AGM to be held on
April 13, 2022.
If the proposed dividend is approved, it is expected that the dividend will be paid on May 4, 2022 on the outstanding
common shares. The record date for the dividend will be April 20, 2022 on both Euronext Milan and NYSE and the
outstanding common shares will be quoted ex-dividend from April 19, 2022.
Subject to the adoption of the Annual Financial Statements by the Annual General Meeting of shareholders and after
the allocation of the relevant amount to the special voting shares dividend reserve in accordance with article 22,
paragraph 4, of the Articles of Association, any profits remaining shall be allocated to the Retained earnings and be at
the disposal of the general meeting of shareholders for distribution of dividend on the outstanding common shares only,
based on the recommendations and proposal of the Board of Directors and subject to the provision of the Article 22,
paragraph 8, of the Articles of Association.
On April 15, 2021, at the AGM, CNH Industrial N.V. shareholders approved a dividend of €0.11 per common share, as
recommended on March 3, 2021 by the Board of Directors. The cash dividend was declared in euro and paid on May 5,
2021 for a total amount of $178 million (€149 million).
The Company shall only have power to make distributions to shareholders and other persons entitled to distributable
profits to the extent the Company's equity exceeds the sum of the paid-up portion of the share capital and the reserves
that must be maintained in accordance with provision of law. No distribution of profits may be made to the Company
itself for shares that the Company holds in its own share capital.
The Board of Directors has the power to declare one or more interim dividends, provided that the requirements of the
Article 22 paragraph 5 of the Articles of Association are duly observed as evidenced by an interim statement of assets
and liabilities as referred to in Article 2:105 paragraph 4 of the Dutch Civil Code and provided further that the policy of
the Company on additions to reserves and dividends is duly observed. The provisions of the Article 22 paragraphs 2
and 3 of the Articles of Association shall apply mutatis mutandis.
The Board of Directors may determine that dividends or interim dividends, as the case may be, shall be paid, in whole
or in part, from the Company's share premium reserve or from any other reserve, provided that payments from reserves
may only be made to the shareholders that are entitled to the relevant reserve upon the dissolution of the Company.
Dividends and other distributions of profit shall be made payable in the manner and at such date(s) - within four weeks
after declaration thereof - and notice thereof shall be given, as the general meeting of shareholders, or in the case of
interim dividends, the Board of Directors shall determine, provided, however, that the Board of Directors shall have the
right to determine that each payment of annual dividends in respect of shares be deferred for a period not exceeding
five consecutive annual periods.
Dividends and other distributions of profit, which have not been collected within five years and one day after the same
have become payable, shall become the property of the Company.
In the event of a winding-up, a resolution to dissolve the Company can only be passed by a general meeting of
shareholders pursuant to a prior proposal of the Board of Directors. In the event a resolution is passed to dissolve the
Company, the Company shall be wound-up by the Board of Directors, unless the general meeting of shareholders
would resolve otherwise.
The general meeting of shareholders shall appoint and decide on the remuneration of the liquidators.
Until the winding-up of the Company has been completed, the Articles of Association of the Company shall to the extent
possible, remain in full force and effect.
Loyalty voting Program
In order to reward long-term ownership of the Company’s common shares and promote stability of its shareholder base,
the Articles of Association of CNH Industrial N.V. provide for a loyalty-voting program that grants eligible long-term
shareholders the equivalent of two votes for each CNH Industrial N.V. common share that they hold. This has been
accomplished through the issuance of special voting shares.
A shareholder may at any time elect to participate in the loyalty voting program by requesting the registration of all or
some of the common shares held by such shareholder in a separate register (the “Loyalty Register”) of the Company. If
such common shares have been registered in the Loyalty Register for an uninterrupted period of three years in the
name of the same shareholder, such shares will become “Qualifying Common Shares” and the relevant shareholder will
be entitled to receive one special voting share for each such Qualifying Common Share which can be retained only for
so long as the shareholder retains the associated common share and registers it in the Loyalty Register.
Company Financial Statements at December 31, 2021  260
Shareholders are not required to pay any amount to the Company in connection with the allocation of the special voting
shares.
The common shares are freely transferable, while, special voting shares are transferable exclusively in limited
circumstances and they are not listed on the NYSE or the Euronext Milan. In particular, at any time, a holder of common
shares that are Qualifying Common Shares who wants to transfer such common shares other than in limited specified
circumstances (e.g., transfers to affiliates or relatives through succession, donation or other transfers) must request a
de-registration of such Qualifying Common Shares from the Loyalty Register. After de-registration from the Loyalty
Register, such common shares no longer qualify as Qualifying Common Shares and, as a result, the holder of such
common shares is required to transfer the special voting shares associated with the transferred common shares to the
Company for no consideration.
The special voting shares have minimal economic entitlements as the purpose of the special voting shares is to grant
long-term shareholders with an extra voting right by means of granting an additional special voting share, without
granting such shareholders with any additional economic rights. However, as a matter of Dutch law, such special voting
shares cannot be fully excluded from economic entitlements. Therefore, the Articles of Association provide that only a
minimal dividend accrues to the special voting shares, which is not distributed, but allocated to a separate special
dividend reserve. The impact of this special voting dividend reserve on the earnings per share of the common shares is
not material.
Treasury shares
In order to maintain the necessary operating flexibility over an adequate time period, including the implementation of the
program in place, on April 16, 2020, the Annual General Meeting (“AGM”) granted to the Board of Directors the authority
to acquire common shares in the capital of the Company through stock exchange trading on the Euronext Milan and the
NYSE or otherwise for a period of 18 months (i.e., up to and including October 15, 2021). Under such authorization the
Board’s authority is limited to a maximum of up to 10% of the issued common shares as of the date of the AGM and, in
compliance with applicable rules and regulations, subject to a maximum price per common share equal to the average
of the highest price on each of the five trading days prior to the date of acquisition, as shown in the Official Price List of
the Euronext Milan or NYSE (as the case may be) plus 10% (maximum price) and to a minimum price per common
share equal to the average of the lowest price on each of the five trading days prior to the date of acquisition, as shown
in the Official Price List of the Euronext Milan or NYSE (as the case may be) minus 10% (minimum price).
Neither the renewal of the authorization, nor the launch of any program obliges the Company to buy-back any common
shares. The launch of any new program will be subject to a further resolution of the Board of Directors. In any event,
such program may be suspended, discontinued or modified at any time for any reason and without previous notice, in
accordance with applicable laws and regulations.
During the year ended December 31, 2021, the Company repurchased no shares of its common stock on the Euronext
Milan and on multilateral trading facilities ("MTFs") under the buy-back program. As of December 31, 2021, the
Company held 8.3 million common shares in treasury, net of transfers of common shares to fulfill its obligations under
its stock compensation plans, at an aggregate cost of $ 80.6 million. Depending on market and business conditions and
other factors, the Company may continue or suspend purchasing its common stock at any time without notice.
At the 2022 Annual General Meeting of Shareholders, the Board of Directors intends to recommend to the Company’s
shareholders the renewal of the authorization to repurchase up to a maximum of 10% of the Company’s issued
common shares.
During the year ended December 31, 2021, the Company acquired approximately 109.904 million special voting shares
following the de-registration of qualifying common shares from the Loyalty Register, net of the transfer and allocation of
special voting shares to those shareholders whose qualifying common shares became eligible to receive special voting
shares after the uninterrupted three-year registration period in the Loyalty Register. As of December 31, 2021, the
Company held 25.3 million special voting shares in treasury.
Effects of the Demerger on the treasury shares held CNH Industrial N.V.
CNH Industrial N.V. did not receive any shares in Iveco Group as a part of the Demerger, the portion of the shares held
in treasury by CNH Industrial N.V. was not eligible to be part of the Demerger and consequent allotment of Iveco Group
N.V. shares.
Capital reserves
At December 31, 2021, capital reserves amounting to €2,477 million (€2,413 million at December 31, 2020) mainly
consist of the share premium deriving from the Merger.
Effects of the Demerger on the Capital reserves of CNH Industrial N.V.
The value of the net assets to be demerged equals to €2,289 million and will reduce the Capital reserves of CNH
Industrial N.V. accordingly.
Company Financial Statements at December 31, 2021  261
Legal reserves
As of December 31, 2021, legal reserves amounted to €1,624 million (€902 million at December 31, 2020) and mainly
relate to unrealized currency translation losses and other OCI components for a net negative amount of €1,130 million,
and other reserves for €2,754 million.
Other OCI components includes primarily net unrealized actuarial losses related to the defined benefit plans which as of
December 31, 2021 amounted to €298 million (€469 million at December 31, 2020). This part is considered distributable
reserve. Being a negative amount, it reduced the overall amount available to the distribution. 
As a consequence, the total amount considered not distributable as of December 31, 2021 equaled to €2,772 million
(€2,613 million at December 31, 2020). As a result, the distributable reserves as at December 31, 2021 amounted to
€4,639 million.
Other reserves are made up by research and development costs capitalized by the Company for €5 million and by the
equity investments for €1,806 million (€17 million and €1,765 million, respectively, at December 31, 2020), earnings
from affiliated companies subject to certain restrictions on the transfer of funds to the parent company in form of
dividend or otherwise for €511 million (€376 million at December 31, 2020) and earnings from subsidiaries that due to
local law requirements cannot be distributed as dividend, unless the subsidiary is liquidated, for €432 million (€437
million at December 31, 2020).
Pursuant to Dutch law, limitations exist relating to the distribution of shareholders’ equity for the entire amount of the
legal reserves. By their nature, unrealized losses relating to currency translation differences reduce shareholders’ equity
and thereby distributable amounts.
Share-based compensation
CNH Industrial’s equity awards are governed by several plans: i) CNH Industrial N.V. Equity Incentive Plan (“CNH
Industrial EIP”); ii) CNH Industrial N.V. Directors’ Compensation Plan (“CNH Industrial DCP”); iii) CNH Global N.V.
Equity Incentive Plan (“CNH EIP”); and, iv) CNH Global N.V. Directors’ Compensation Plan (“CNH DCP”).
For more information on Share-based compensation see Note 21 "Equity" of the Consolidated Financial Statements.
20. Provisions for employee benefits
CNH Industrial N.V. provides pension, healthcare and insurance plans and other post-employment benefits to their
employees and retirees, either directly or by contributing to independently administered funds. These benefits are
generally based on the employees’ remuneration and years of service.
The Company provides post-employment benefits under defined contribution and defined benefit plans.
In the case of defined contribution plans, the Company makes contributions to publicly or privately administered
pension insurance plans on a mandatory, contractual or voluntary basis. Once the contributions have been made, the
Company has no further payment obligations. The Company recognizes the contribution cost when the employees
have rendered their service and includes this cost by function in Cost of sales, Selling, general and administrative costs
and Research and development costs. During the years ended December 31, 2021 and 2020, CNH Industrial N.V.
recorded expenses of €12,059 thousand and €10,849 thousand, respectively, for its defined contribution plans,
inclusive of social security contributions in the categories as described above.
Defined benefit plans may be unfunded, or they may be wholly or partly funded by contributions made by an entity, and
sometimes by its employees, into an entity, or fund, that is legally separate from the employer from which the employee
benefits are paid. Benefits are generally payable under these plans after the completion of employment. Defined
benefits plans are classified by the Company as Pension plans or Other post-employment benefits on the basis of the
type of benefit provided.
Pension plans
The item Pension plans principally comprise the obligations towards certain employees and former employees of the
CNH Industrial Group in the United Kingdom.
Under these plans, contributions are made to a separate fund (trust) which independently administers the plan assets.
The Company’s funding policy is to meet the minimum funding requirements pursuant to the laws and regulations of
each individual country. The Company may also choose to make discretionary contributions in addition to the funding
requirements. To the extent that a fund is overfunded, the Company is not required to make further contribution to the
plan in respect of a minimum performance requirements so long as the fund is in surplus.
Following collective consultation with members of the United Kingdom defined benefit pension plans, these
arrangements closed to future accrual on January 31, 2020. Active employees were transferred to the Company’s,
market competitive, defined contribution arrangement.
Company Financial Statements at December 31, 2021  262
The benefits accrued for active members up to January 31, 2020 were not affected by the closure. The closure to future
accrual also had no impact on deferred or pensioner members of the plans.
Other post-employment benefits
Other post-employment benefits consist of obligations for Italian Employee Leaving Entitlements up to December 31,
2006. The TFR scheme has since changed to a defined contribution plan. The obligation on our balance sheet
represents the residual reserve for years prior to December 31, 2006 relating to the Italian employees of the Italian
branch. Loyalty bonuses are accrued for employees who have reached certain service seniority and are generally
settled when employees leave the Company. These plans are not required to be funded and, therefore, have no plan
assets.
Provisions for employee benefits at December 31, 2021 and 2020 are as follows:
(€ thousand)
At December 31, 2021
At December 31, 2020
Post-employment benefits:
Pension plans
203,856
263,995
Other
698
660
Total Post-employment benefits
204,554
264,655
Other long-term employee benefits
405
402
Total Provision for employee benefits
204,959
265,057
The item Other long-term employee benefits consists of the Company’s obligation for those benefits generally payable
during employment on reaching a certain level of seniority in the Company or when a specified event occurs, and
reflects the probability of payment and the length of time over which this will be made.
In 2021 and in 2020 changes in Other long-term employee benefits are as follows:
(€ thousand)
At December 31, 2020
Provision
Utilization
Other changes
At December 31, 2021
Other long-term employee benefits
402
72
(78)
9
405
Total
402
72
(78)
9
405
(€ thousand)
At December 31, 2019
Provision
Utilization
Other changes
At December 31, 2020
Other long-term employee benefits
323
63
(36)
52
402
Total
323
63
(36)
52
402
Company Financial Statements at December 31, 2021  263
Post-employment benefits
The amounts recognized in the statement of financial position for post-employment benefits at December 31, 2021 and
2020 are as follows:
Pension plans
Other
At December 31,
At December 31,
(€ thousand)
2021
2020
2021
2020
Present value of funded obligations
1,137,116
1,102,264
698
660
Less: Fair value of plan assets
(933,261)
(838,269)
—
—
Deficit/(surplus)
203,855
263,995
698
660
Net liability/(Net asset)
203,855
263,995
698
660
Amounts at year-end:
Liabilities
203,855
263,995
698
660
Assets
—
—
—
—
Net liability
203,855
263,995
698
660
Changes in the present value of post-employment obligations in 2021 and 2020 are as follows:
Pension plans
Other
(€ thousand)
2021
2020
2021
2020
Present value of obligation at the beginning of the year
1,102,264
1,118,387
660
653
Current service cost
—
403
4
6
Interest expense
11,689
17,517
(2)
(1)
Other costs
974
765
—
—
Contribution by plan participants
—
6
—
—
Remeasurements:
Actuarial losses/(gains) from changes in demographic assumptions
794
11,986
(2)
1
Actuarial losses/(gains) from changes in financial assumptions
(10,462)
87,911
15
(1)
Other remeasurements
(392)
(31,034)
61
14
Total remeasurements
(10,060)
68,863
74
14
Exchange rate differences
76,118
(60,457)
—
—
Benefits paid
(43,869)
(43,332)
(54)
(15)
Past service cost
—
112
—
—
Change in scope of consolidation
—
—
16
3
Present value of obligation at the end of the year
1,137,116
1,102,264
698
660
In 2021 and 2020 Other remeasurements mainly include the amount of experience adjustments.
Company Financial Statements at December 31, 2021  264
In 2021 and 2020 changes in the fair value of plan assets are as follows:
Pension plans
(€ thousand)
2021
2020
Fair value of plan assets at the beginning of the year
838,269
794,319
Interest income
8,905
12,503
Remeasurements:
Return on plan assets
40,906
74,056
Actuarial gains/(losses) from changes in financial assumptions
—
—
Total remeasurements
40,906
74,056
Exchange rate differences
59,427
(43,520)
Contribution by employer
29,622
44,238
Contribution by plan participants
—
6
Benefits paid
(43,869)
(43,333)
Fair value of plan assets at the end of the year
933,260
838,269
Net benefit cost/(income) recognized during 2021 and 2020 is as follows:
Pension plans
Other
(€ thousand)
2021
2020
2021
2020
Service cost:
Current service cost
—
403
4
6
Past service cost and (gain)/loss from curtailments and settlements
—
113
—
—
Total Service cost
—
516
4
6
Net interest expense
2,784
5,013
(2)
(1)
Other costs
974
765
—
—
Net benefit cost/(income) recognized to profit or loss
3,758
6,294
2
5
Remeasurements:
Return on plan assets
(40,906)
(74,056)
—
—
Actuarial losses/(gains) from changes in demographic assumptions
794
11,986
(1)
1
Actuarial losses/(gains) from changes in financial assumptions
(10,462)
87,911
14
(1)
Other remeasurements
(392)
(31,034)
61
14
Total remeasurements
(50,966)
(5,193)
74
14
Exchange rate differences
16,691
(16,937)
—
—
Net benefit cost/(income) recognized to other comprehensive income
(34,275)
(22,130)
74
14
Total net benefit cost/(income) recognized during the year
(30,517)
(15,836)
76
19
The weighted average durations of post-employment benefits are as follows:
N° of years
Pension plans
16
Other
7
Company Financial Statements at December 31, 2021  265
Assumptions
Post-employment benefits and Other long-term employee benefits are calculated on the basis of the following main
assumptions:
Assumptions used to determine funded status at year-end
At December 31, 2021
At December 31, 2020
(in %)
Pension plans
Other
Pension plans
Other
Weighted-average discount rates
1.85
0.72
1.30
0.24
Weighted-average rate of compensation increase
N/A
1.56
N/A
1.26
Assumptions used to determine expense at year-end
At December 31, 2021
At December 31, 2020
(in %)
Pension plans
Other
Pension plans
Other
Weighted-average discount rates
1.30
0.24
1.88
0.50
Weighted-average rate of compensation increase
N/A
1.26
3.50
1.20
Assumed discount rates are used in measurements of pension and other post-employment benefit obligations and net
interest on the net defined benefit liability/asset. CNH Industrial selects its assumed discount rates based on the
consideration of equivalent yields on high-quality fixed income investments at the measurement date. The discount
rates are based on a benefit cash flow-matching approach and represent the rates at which the benefit obligations
could effectively be settled as of the measurement date, December 31. The benefit cash flow-matching approach
involves analyzing the CNH Industrial’s projected cash flows against a high-quality bond yield curve, mainly calculated
using a wide population of AA-yield corporate bonds subject to minimum amounts outstanding and meeting other
defined selection criteria. The discount rates for CNH Industrial’s remaining obligations are based on benchmark yield
data of high-quality fixed income investments for which the timing and amounts of payments approximate the timing
and amounts of projected benefit payments.
Assumed discount rates have a significant effect on the amount recognized in the 2021 financial statements. A one
percentage point change in assumed discount rates would have the following effects:
(€ thousand)
One percentage
point increase
One percentage
point decrease
Effect on pension plans defined benefit obligation at December 31, 2021
(156,000)
197,000
Plan assets
The investment strategy varies depending on the circumstances of the underlying plan. Typically, less mature plan
benefit obligations are funded by using more equity securities as they are expected to achieve long-term growth while
exceeding the rate of inflation. More mature plan benefit obligations are funded using more fixed income securities as
they are expected to produce current income with limited volatility. Risk management practices include the use of
multiple asset classes and investment managers within each asset class for diversification purposes. Specific
guidelines for each asset class and investment manager are implemented and monitored.
Plan assets do not include treasury shares of CNH Industrial N.V. or properties occupied by it. The fair value of the plan
assets at December 31, 2021 may be disaggregated by asset class and level as follows. Fair value levels presented
below are described in the “Significant accounting policies – Fair value measurement” section of the Notes to the
Consolidated Financial Statements.
At December 31, 2021
Pension plans
(€ thousand)
Level 1
Level 2
Level 3
Total
Other types of investments:
Mutual funds(1)
—
922,000
—
922,000
Total other types of investments
—
922,000
—
922,000
Cash and cash equivalents
11,000
—
—
11,000
Total
11,000
922,000
—
933,000
(1)This category includes mutual funds which primarily invest in non-U.S. equities and non-U.S. corporate bonds.
Company Financial Statements at December 31, 2021  266
The fair value of the plan assets at December 31, 2020 may be disaggregated by asset class and level as follows.
At December 31, 2020
Pension plans
(€ thousand)
Level 1
Level 2
Level 3
Total
Other types of investments:
Mutual funds(1)
—
833,000
—
833,000
Total other types of investments
—
833,000
—
833,000
Cash and cash equivalents
5,000
—
—
5,000
Total
5,000
833,000
—
838,000
(1)This category includes mutual funds which primarily invest in non-U.S. equities and non-U.S. corporate bonds.
Fair value levels presented in the tables above are described in the “Significant accounting policies – Fair value
measurement” section of the Notes to the Consolidated Financial Statements.
Contribution
CNH Industrial expects to contribute approximately €40 million to its pension plans in 2021.
The best estimate of expected benefit payments in 2022 and in the following ten years is as follows:
Expected benefit payments
(€ thousand)
2022
2023
2024
2025
2026
2027 to
2032
Total
Post-employment benefits:
Pension plans
41,557
42,126
42,999
44,250
45,386
242,280
458,598
Other
28
33
19
12
103
178
373
Total Post-employment benefits
41,585
42,159
43,018
44,262
45,489
242,458
458,971
Other long-term employee benefits
71
23
41
17
22
69
243
Total
41,656
42,182
43,059
44,279
45,511
242,527
459,214
Potential outflows in the years after 2022 are subject to a number of uncertainties, including future asset performance
and changes in assumptions.
21. Other provisions
Changes in Other provisions are as follows:
(€ thousand)
At December 31, 2020
Charged to
profit and loss
Utilization
Other
movements
At December 31, 2021
Warranty and incentives
64,643
111,294
(111,766)
17,814
81,985
Restructuring provision
0
—
—
—
—
Modification and campaign
934
3,986
(2,805)
(209)
1,906
Other provisions
51,165
1,786
(11,276)
(115)
41,560
Total Other provisions
116,742
117,066
(125,847)
17,490
125,451
The item Other provisions consists of the best estimate at the balance sheet date of short-term employee benefits
payable by the Company within twelve months from the end of the period in which the employees render the related
service, and in addition it includes the amounts set up by the Company in connection with other risks and other
charges.
Company Financial Statements at December 31, 2021  267
22. Non-current debt
(€ thousand)
At December 31, 2021
At December 31, 2020
Change
Bonds
973,639
908,196
65,443
Financial guarantees
42,946
56,621
(13,675)
Lease liabilities
10,393
8,736
1,657
Total Non-current debt
1,026,978
973,553
53,425
At December 31, 2021, Non-current debt totaled €1,026,978 thousand and consisted mainly of two Bonds:
▪$600 million at an interest rate of 4.50%, due on August 15, 2023, issued by the Company in August 2016. The
outstanding amount at year end is $600 million. The bond is valued using the amortized cost, for a corresponding
amount of €538,630 thousand at December 31, 2021 (€498,904 thousand at December 31, 2020). At December
31, 2021, the fair value of the bond is €556,936 thousand (€542,391 thousand at December 31, 2020).
▪$500 million at an interest rate of 3.85%, due on November 15, 2027, issued by the Company in November 2017.
The outstanding amount at year end is $500 million. The bond is valued using the amortized cost, for a
corresponding amount of €435,008 thousand at December 31, 2021 (€409,292 thousand at December 31, 2020).
At December 31, 2021, the fair value of the bond is €441,462 thousand (€462,823 thousand at December 31,
2020).
The increase of the carrying value of the two Bonds of €65,443 thousand is mainly driven by the foreign exchange
movement as the U.S. dollar strengthened against the euro during the current year.
The two Bonds are classified as a Level 1 fair value measurement. Their fair value has been estimated making
reference to quoted prices in active markets.
The two bonds issued by the Company contain commitments of the issuer which are typical of international practice for
bonds issues of this type such as, in particular, negative pledge (in relation to quoted indebtedness), a status (or pari
passu) and cross default clauses. A breach of these commitments can lead to the early repayment of the issued notes.
In addition, the bonds contain clauses which could lead to early repayment if there is a change of control of CNH
Industrial N.V. leading to a rating downgrading. At December 31, 2021 there were no breaches of such commitments.
The Company intends to repay the issued bonds in cash at the due date by utilizing available liquid resources. In
addition, it can buy back its issued bonds. Such buy backs, if made, depend upon market conditions, the financial
situation of the Group and other factors which could affect such decisions.
At December 31, 2021, Non-current debt included also the item financial guarantees for €42,946 thousand
(€56,621 thousand in 2020) that represent the fair value of liabilities assumed in relation to guarantees issued by the
Company. Following an assessment of potential risks requiring recognition of contingent liabilities and given that those
liabilities essentially related to guarantees issued in favor of third parties in the interest of Group companies, mainly for
bonds issued from Group companies and loans granted to Group companies, the present value of fees receivable (see
Note 12 "Other financial assets") is considered the best estimate of the fair value of those guarantees.
At December 31, 2021 liabilities from leases amounted to €10,393 thousand, (€8,736 thousand at December 31, 2020),
of which €2,851 thousand (€2,711 thousand at December 31, 2020) due within one year, and the remaining part of
€7,542 thousand (€6,025 thousand at December 31, 2020) is due between one and five years.
At December 31, 2021, €3,238 thousand (€3,172 thousand at December 31, 2020) for the principal portion of lease
liabilities and €158 thousand (€187 thousand at December 31, 2020) for interest expenses related to lease liabilities
were paid.
Company Financial Statements at December 31, 2021  268
The following table sets out a maturity analysis of undiscounted lease liabilities at December 31, 2021:
(€ thousand)
At December 31, 2021
At December 31, 2020
Less than one year
2,965
2,846
One to two years
2,415
1,991
Two to three years
1,883
1,663
Three to four years
1,831
1,291
Four to five years
1,751
1,280
More than five years
—
—
Total undiscounted lease payments
10,845
9,071
Less: Interest
(452)
(335)
Total Lease liabilities
10,393
8,736
At December 31 2021, the weighted average remaining lease term (calculated on the basis of the remaining lease term
and the lease liability balance for each lease) and the weighted average discount rate for leases were 4 years and
2.3%, respectively (4 years and 2.4%, respectively, at December 31, 2020).
23. Trade payables
At December 31, 2021, trade payables totaled €374,477 thousand, representing a net increase of €69,577 thousand
compared to December 31, 2020, and consisted of the following:
(€ thousand)
At December 31, 2021
At December 31, 2020
Change
Trade payables to third parties
200,109
189,518
10,591
Trade payables to other related parties
779
224
555
Intercompany trade payables
173,589
115,158
58,431
Total Trade payables
374,477
304,900
69,577
Trade payables include payables for goods and services.
Trade payables are due within one year and their carrying amount at the reporting date is deemed to approximate their
fair value.
24. Current financial liabilities
At December 31, 2021, current financial liabilities totaled €7,910,035 thousand, a €530,798 thousand increase over
December 31, 2020, and related to:
(€ thousand)
At December 31, 2021
At December 31, 2020
Change
Current account with CNH Industrial Finance S.p.A.
2,164,509
1,638,316
526,193
Current account with CNH Industrial Finance Europe S.A.
5,730,630
5,286,023
444,607
Bank loans
—
450,000
450,000
Accrued interest expense
6,962
3,865
3,097
Liability from derivative financial instruments
7,934
1,033
6,901
Total Current financial liabilities
7,910,035
7,379,237
530,798
The short term financial payables to CNH Industrial Finance Europe S.A. relate to an unsecured uncommitted revolving
credit facility agreement with CNH Industrial Finance Europe S.A., where the latter has made available to CNH
Industrial N.V. an uncommitted facility in a maximum aggregate amount of €6.5 billion.
The short term financial payables to CNH Industrial Finance S.p.A. and CNH Industrial Finance Europe S.A. bear
floating interest at market rate. Such credit facilities are unsecured.
At December 31, 2021 the current financial payables to be transferred from the Company to Iveco Group N.V. pursuant
to the Demerger as at January 1, 2022, amounted to €1,568,000 thousand (see Note 18).
The carrying amount of those liabilities is deemed to be in line with their fair value.
On March 22, 2021 and on June 23, 2021, the Company reimbursed the two bank loans of €300,000 thousand and
€150,000 thousand, respectively.
The first bank loan of €300,000 thousand had the maturity date January 19, 2022, but it was repaid in advance.
Company Financial Statements at December 31, 2021  269
Liability from derivative financial instruments consist of derivative financial instruments measured at fair value at the
balance sheet date.
Derivative instruments are classified as Level 2 in the fair value hierarchy.
CNH Industrial utilizes derivative instruments to mitigate its exposure to interest rate and foreign currency fluctuations.
Derivatives used as hedges are effective at reducing the risk associated with the exposure being hedged and are
designated as a hedge at the inception of the derivative contract.
25. Other debt
At December 31, 2021, other debt totaled €168,844 thousand, a net increase of €46,165 thousand over December 31,
2020, and included the following:
(€ thousand)
At December 31, 2021
At December 31, 2020
Change
Other debt:
- Intercompany debt:
- Consolidated Italian corporate tax
43,776
37,460
6,316
- Consolidated VAT
—
0
—
- Other
12
5,011
(4,999)
Total intercompany debt
43,788
42,471
1,317
Current amounts payable to employees, social security, directors
12,852
10,394
2,458
Taxes payable-indirect tax
29,501
23,052
6,449
Accrued expenses
74,161
40,502
33,659
Other
8,542
6,260
2,282
Total Other debt
168,844
122,679
46,165
Intercompany debt for consolidated Italian corporate tax of €43,776 thousand (€37,460 thousand at December 31,
2020) consisted of compensation payable for tax losses and Italian corporate tax credits contributed by Italian
subsidiaries participating in the domestic tax consolidation program for 2021, in relation to which CNH Industrial N.V. is
the consolidating entity.
Following Brexit, the Italian VAT tax consolidation scheme was discontinued starting from January 1, 2020 and, as a
result, the Group’s subsidiaries directly manage relations with the Italian Tax Authority, thereby significantly reducing
relations with the parent company. Hence the reduction in intercompany VAT receivables and payables.
At December 31, 2021, Taxes payable-indirect tax consisted of VAT payable due in the U.K.
Other debt and taxes payable are all due within one year and their carrying amount is deemed to approximate their fair
value.
26. Guarantees, commitments and contingent liabilities
Guarantees issued
At December 31, 2021, Guarantees issued totaled €4,174,336 thousand, decreasing by €753,760 thousand over
December 31, 2020.
All guarantees were issued in favour of third parties and in the interest of Group companies and were made up as
follows:
▪€3,643,548 thousand for ten bonds issued from CNH Industrial Finance Europe SA under the Euro Medium
Term Notes Programme (and the notes issued under its predecessor, the Global Medium Term Notes
Programme) due between 2022 and 2039;
▪€1,548 thousand for borrowings granted to Iveco Espana S.L;
▪€201,541 thousand for credit lines granted from different banks primarily to CNH Industrial America LLC, Iveco
S.p.A. and CNH Industrial Finance Europe SA;
▪€144,766 thousand for sundry guarantees (including property lease guarantees) primarily in the interest of
CNH Industrial America LLC and for good execution of works mainly granted in the interest of Iveco S.p.A.;
▪€182,933 thousand for payment obligations related to excess VAT credits of the direct and indirect subsidiaries
of CNH Industrial N.V.
Company Financial Statements at December 31, 2021  270
At December 31,  2021, there were no guarantees outstanding issued in the interest of entities other than subsidiaries
of the Company.
Support Agreement in the interest of CNH Industrial Capital LLC (Financial Services)
CNH Industrial Capital LLC benefits from a support agreement issued by CNH Industrial N.V., pursuant to which CNH
Industrial N.V. agrees to, among other things, (a) make cash capital contributions to CNH Industrial Capital LLC, to the
extent necessary to cause its ratio of net earnings available for fixed charges to fixed charges to be not less than
1.05:1.0 for each fiscal quarter (with such ratio determined, on a consolidated basis and in accordance with U.S. GAAP,
for such fiscal quarter and the immediately preceding three fiscal quarters taken as a whole), (b) generally maintain an
ownership of at least 51% of the voting equity interests in CNH Industrial Capital LLC and (c) cause CNH Industrial
Capital LLC to have, as of the end of any fiscal quarter, a consolidated tangible net worth of at least $50 million. The
support agreement is not intended to be, and is not, a guarantee by CNH Industrial N.V. of the indebtedness or other
obligations of CNH Industrial Capital LLC. The obligations of CNH Industrial N.V. to CNH Industrial Capital LLC
pursuant to this support agreement are to the company only and do not run to, and are not enforceable directly by, any
creditor of CNH Industrial Capital LLC, including holders of the CNH Industrial Capital LLC’s notes or the trustee under
the indenture governing the notes. The support agreement may be modified, amended or terminated, at CNH Industrial
N.V.’s election, upon thirty days’ prior written notice to CNH Industrial Capital LLC and the rating agencies of CNH
Industrial Capital LLC, if (a) the modification, amendment or termination would not result in a downgrade of CNH
Industrial Capital LLC rated indebtedness; (b) the modification, amendment or notice of termination provides that the
support agreement will continue in effect with respect to the company’s rated indebtedness then outstanding; or (c)
CNH Industrial Capital LLC has no long-term rated indebtedness outstanding.
A Support Agreement was issued in 2019 in the interest of CNH Industrial Capital Australia Pty. Limited, the content of
which is in line with the support agreement issued in the interest of CNH Industrial Capital LLC.
For more information on our outstanding indebtedness, see Note 24 “Debt” to our Consolidated Financial Statements.
Other contingencies
Other contingencies are described in Note 27 “Commitments and contingencies” of the Consolidated Financial
Statements.
27. Audit fees
The following table reports fees paid to the independent auditor Ernst & Young or entities in their network for audit and
other services to the Group.
(€ thousand)
2021
2020
Audit fees of the consolidated and company financial statements
10,495
10,250
Other audit services
5,038
1,036
Total Audit fees
15,533
11,286
Total Audit fees of €15,533 thousand also included audit of Ernst & Young Accountants LLP of €146 thousand
(€144 thousand in 2020) for CNH Industrial N.V. Moreover Ernst & Young Accountants LLP performed other audit
procedures relating to the issuance of comfort letters at bond offerings for €5 thousand (€35 thousand in 2020).
28. Board remuneration
Detailed information on Board of Directors compensation, including their shares and share options, is included in the
Remuneration Report section as included in the Board Report of this Annual Report.
29. Subsequent events
CNH Industrial has evaluated subsequent events through March 1, 2022, which is the date the financial statements
were authorized for issuance, and identified the following:
▪Effective January 1, 2022, the Iveco Group Business was separated from CNH Industrial N.V. by way of a legal
statutory demerger to Iveco Group N.V. and Iveco Group became a public listed company independent from CNH
Industrial with its common shares trading on Euronext Milan, a regulated market organized and managed by Borsa
Italiana S.p.A. (See Note 18)
Company Financial Statements at December 31, 2021  271
▪On January 4, 2022 Fitch Ratings raised its Long-Term Issuer Default Rating on CNH Industrial N.V. to ‘BBB+’ from
‘BBB-’. Fitch also upgraded CNH Industrial Finance Europe S.A.’s senior unsecured rating to ‘BBB+’ from ‘BBB-'. The
Outlook is Stable.
▪On January 7, 2022 Fitch upgraded the Long-Term Issuer Default Ratings and senior unsecured debt ratings of CNH
Industrial Capital LLC (CNHI Capital) and CNH Industrial Capital Canada Ltd. (CNH Canada) to 'BBB+' from 'BBB-'.
The Rating Outlook is Stable. Fitch has also upgraded CNHI Capital's Short-Term IDR and commercial paper (CP)
ratings to 'F2' from 'F3'.
▪On February 22, 2022, CNH Industrial N.V. held an Investors Day, presenting its Strategic Business Plan for the
years 2022 to 2024.
▪On February 25, 2022, Moody's upgraded the senior unsecured ratings of CNH Industrial N.V. and its supported
subsidiaries including CNH Industrial Capital LLC, CNH Industrial Finance Europe S.A., CNH Industrial Capital
Australia Pty. Limited and CNH Industrial Capital Canada Ltd. to Baa2 from Baa3. The Rating Outlook is stable.
▪In order to optimize the capital structure of the Company and to meet the obligations arising from the Company's
equity incentive plans, on March 1, 2022, CNH Industrial announced a share buy-back program (the "Program") up to
€100 million, within the framework of the authorization granted by the Shareholders’ Meeting held on April 15, 2021,
whereby the Board is vested with the authority to purchase up to 10% of the Company’s issued common shares
during the eighteen-month period following such Shareholders’ Meeting. The purchases will be carried out on the
Italian Stock Exchange (Euronext Milan) and on multilateral trading facilities (MTFs), in compliance with applicable
rules and regulations, subject to a maximum price per common share equal to the average of the highest price on
each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Euronext Milan
plus 10% (maximum price) and to a minimum price per common share equal to the average of the lowest price on
each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Euronext Milan
minus 10% (minimum price). The actual timing, number and value of common shares repurchased under the
Program will depend on various factors, including market conditions, general business conditions, and compliance
with applicable legal requirements. The Program does not oblige the Company to repurchase any common shares,
and it may be suspended, discontinued, or modified upwards at any time, for any reason and without previous notice,
in accordance with applicable laws and regulations.
Company Financial Statements at December 31, 2021  272
March 1, 2022
The Board of Directors
Suzanne Heywood
Scott W. Wine
Léo W. Houle
Catia Bastioli
Howard W. Buffett
John Lanaway
Alessandro Nasi
Vagn Sørensen
Åsa Tamsons
Company Financial Statements at December 31, 2021  273
OTHER INFORMATION
Independent Auditor’s Report
The report of the Company’s independent auditor, Ernst & Young Accountants LLP, The Netherlands is set forth
following this Annual Report.
Appropriation of the result of the year
Subject to the adoption of the Annual Financial Statements by the Annual General Meeting of shareholders and after
the allocation of the relevant amount to the special voting shares dividend reserve in accordance with article 22,
paragraph 4, of the Articles of Association, any profits remaining shall be allocated to the Retained earnings and be at
the disposal of the general meeting of shareholders for distribution of dividend on the outstanding common shares only,
based on the recommendations and proposal of the Board of Directors and subject to the provision of the Article 22,
paragraph 8, of the Articles of Association.
Dividends under Articles of Association provisions
Dividends will be determined in accordance with the articles 22 of the Articles of Association of CNH Industrial N.V. The
relevant provisions of the Articles of Association read as follows:
1.The Company shall maintain a special capital reserve to be credited against the share premium exclusively
for the purpose of facilitating any issuance or cancellation of special voting shares. The special voting
shares shall not carry any entitlement to the balance of the special capital reserve. The Board of Directors
shall be authorized to resolve upon (i) any distribution out of the special capital reserve to pay up special
voting shares or (ii) re-allocation of amounts to credit or debit the special capital reserve against or in favour
of the share premium reserve.
2.The Company shall maintain a separate dividend reserve for the special voting shares. The special voting
shares shall not carry any entitlement to any other reserve of the Company. Any distribution out of the
special voting shares dividend reserve or the partial or full release of such reserve will require a prior
proposal from the Board of Directors and a subsequent resolution of the general meeting of holders of
special voting shares.
3.From the profits, shown in the annual accounts, as adopted, such amounts shall be reserved as the Board
of Directors may determine.
4.The profits remaining thereafter shall first be applied to allocate and add to the special voting shares
dividend reserve an amount equal to one percent (1%) of the aggregate nominal amount of all outstanding
special voting shares. The calculation of the amount to be allocated and added to the special voting shares
dividend reserve shall occur on a time-proportionate basis. If special voting shares are issued during the
financial year to which the allocation and addition pertains, then the amount to be allocated and added to
the special voting shares dividend reserve in respect of these newly issued special voting shares shall be
calculated as from the date on which such special voting shares were issued until the last day of the
financial year concerned. The special voting shares shall not carry any other entitlement to the profits.
5.Any profits remaining thereafter shall be at the disposal of the general meeting of shareholders for
distribution of dividend on the common shares only, subject to the provision of paragraph 8 of this article.
6.Subject to a prior proposal of the Board of Directors, the general meeting of shareholders may declare and
pay dividends in U.S. dollars. Furthermore, subject to the approval of the general meeting of shareholders
and the Board of Directors having been designated as the body competent to pass a resolution for the
issuance of shares in accordance with Article 5 of the Articles of Association, the Board of Directors may
decide that a distribution shall be made in the form of shares or that shareholders shall be given the option
to receive a distribution either in cash or in the form of shares.
7.The Company shall only have power to make distributions to shareholders and other persons entitled to
distributable profits to the extent the Company's equity exceeds the sum of the paid-up portion of the share
capital and the reserves that must be maintained in accordance with provision of law. No distribution of
profits may be made to the Company itself for shares that the Company holds in its own share capital.
8.The distribution of profits shall be made after the adoption of the annual accounts, from which it appears
that the same is permitted.
9.The Board of Directors shall have power to declare one or more interim dividends, provided that the
requirements of paragraph 5 hereof are duly observed as evidenced by an interim statement of assets and
liabilities as referred to in Article 2:105 paragraph 4 of the Dutch Civil Code and provided further that the
Other Information   274
policy of the Company on additions to reserves and dividends is duly observed. The provisions of
paragraphs 2 and 3 hereof shall apply mutatis mutandis.
10.The Board of Directors may determine that dividends or interim dividends, as the case may be, shall be
paid, in whole or in part, from the Company's share premium reserve or from any other reserve, provided
that payments from reserves may only be made to the shareholders that are entitled to the relevant reserve
upon the dissolution of the Company.
11.Dividends and other distributions of profit shall be made payable in the manner and at such date(s) - within
four weeks after declaration thereof - and notice thereof shall be given, as the general meeting of
shareholders, or in the case of interim dividends, the Board of Directors shall determine, provided, however,
that the Board of Directors shall have the right to determine that each payment of annual dividends in
respect of shares be deferred for a period not exceeding five consecutive annual periods.
12.Dividends and other distributions of profit, which have not been collected within five years and one day after
the same have become payable, shall become the property of the Company.
Other Information   275
APPENDIX - CNH INDUSTRIAL GROUP AT DECEMBER 31, 2021
CONTINUING OPERATIONS
Controlling company
Parent Company
CNH Industrial N.V.
Amsterdam
Netherlands
17,608,745
EUR
—
—
—
—
Subsidiaries consolidated on a line-by-line basis
Aerostar Integrated Systems, LLC
Wilmington
U.S.A.
1
USD
100.00
Aerostar International, Inc.
100.000
Aerostar International, Inc.
Pierre
U.S.A.
6,000
USD
100.00
Raven Industries, Inc.
100.000
Aerostar Technical Solutions, Inc.
Glendale
U.S.A.
1,000
USD
100.00
Aerostar International, Inc.
100.000
AgDNA Pty Ltd.
St. Marys
Australia
2,175,120
AUD
100.00
CNH Industrial N.V.
100.000
AgDNA Technologies
Carson City
U.S.A.
120
USD
100.00
AgDNA Pty Ltd.
100.000
AgDNA Technologies Pty Ltd.
St. Marys
Australia
2
AUD
100.00
AgDNA Pty Ltd.
100.000
ATD Holding Company, Inc.
Pierre
U.S.A.
 NaN
USD
100.00
Raven Industries, Inc.
100.000
ATI, Inc.
Mt. Vernon
U.S.A.
 NaN
USD
100.00
CNH Industrial America
LLC
100.000
Banco CNH Industrial Capital S.A.
Curitiba
Brazil
940,451,054
BRL
100.00
New Holland Ltd
99.329
CNH Industrial Brasil Ltda.
0.671
BLI Group, Inc.
Wilmington
U.S.A.
1,000
USD
100.00
CNH Industrial America
LLC
100.000
Blue Leaf I.P. , Inc.
Wilmington
U.S.A.
1,000
USD
100.00
BLI Group, Inc.
100.000
Blue Leaf Insurance Company
Colchester
U.S.A.
250,000
USD
100.00
CNH Industrial America
LLC
100.000
Case Baumaschinen AG
Kloten
Switzerland
4,000,000
CHF
100.00
CNH Industrial N.V.
100.000
Case Canada Receivables, Inc.
Calgary
Canada
1
CAD
100.00
CNH Industrial Capital
America LLC
100.000
Case Credit Holdings Limited
Wilmington
U.S.A.
5
USD
100.00
CNH Industrial Capital
America LLC
100.000
Case Dealer Holding Company LLC
Wilmington
U.S.A.
1
USD
100.00
CNH Industrial America
LLC
100.000
Case Equipment Holdings Limited
Wilmington
U.S.A.
5
USD
100.00
CNH Industrial America
LLC
100.000
Case France NSO
Morigny-
Champigny
France
7,622
EUR
100.00
CNH Industrial France
100.000
CASE ILE DE FRANCE
Saint-Pathus
France
600,000
EUR
100.00
CNH Industrial France
100.000
Case New Holland Construction
Equipment (India) Private Limited
New Delhi
India
240,100,000
INR
100.00
CNH Industrial (India)
Private Limited
50.000
CNH Industrial America
LLC
50.000
Case New Holland Industrial Inc.
Wilmington
U.S.A.
55
USD
100.00
CNH Industrial U.S.
Holdings Inc.
100.000
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   276
Case United Kingdom Limited
Basildon
United Kingdom
3,763,618
GBP
100.00
CNH Industrial America
LLC
100.000
CIFINS S.p.A.(1)
Turin
Italy
40,000,000
EUR
100.00
CNH Industrial N.V.
100.000
CNH (China) Management Co., Ltd.
Shanghai
People's Rep.of
China
207,344,542
USD
100.00
CNH Industrial N.V.
100.000
CNH ARGENTINA S.A.
Buenos Aires
Argentina
8,147,618,291
ARS
100.00
CNH Industrial Brasil Ltda.
94.982
CNHI COMERCIO DE
PEÇAS LTDA
5.018
CNH Capital Finance LLC
Wilmington
U.S.A.
5,000
USD
100.00
Case Credit Holdings
Limited
100.000
CNH Capital Operating Lease Equipment
Receivables LLC
Wilmington
U.S.A.
1,000
USD
100.00
CNH Industrial Capital
America LLC
100.000
CNH Capital Receivables LLC
Wilmington
U.S.A.
—
USD
100.00
CNH Industrial Capital
America LLC
100.000
CNH Componentes, S.A. de C.V.
Queretaro
Mexico
135,634,842
MXN
100.00
CNH Industrial America
LLC
100.000
CNH Industrial (Harbin) Machinery Co.
Ltd.
Harbin
People's Rep.of
China
140,000,000
USD
100.00
CNH Industrial Asian
Holding Limited N.V.
100.000
CNH Industrial (India) Private Limited
New Delhi
India
12,416,900,200
INR
100.00
CNH Industrial Asian
Holding Limited N.V.
100.000
CNH Industrial (Thailand) Ltd.
Samut
Prakarn
Thailand
354,500,000
THB
100.00
CNH Industrial N.V.
100.000
CNH Industrial AG and CE (PTY) LTD.
Centurion
South Africa
185,455,900
ZAR
100.00
CNH Industrial N.V.
100.000
CNH Industrial America LLC
Wilmington
U.S.A.
—
USD
100.00
Case New Holland
Industrial Inc.
100.000
CNH Industrial Asian Holding Limited N.V.
Zedelgem
Belgium
114,100,000
EUR
100.00
CNH Industrial N.V.
100.000
CNH Industrial Australia Pty Limited
St. Marys
Australia
293,408,692
AUD
100.00
CNH Industrial N.V.
100.000
CNH Industrial Baumaschinen GmbH
Heilbronn
Germany
61,355,030
EUR
100.00
CNH Industrial N.V.
100.000
CNH Industrial Belgium
Zedelgem
Belgium
106,081,158
EUR
100.00
CNH Industrial N.V.
88.828
New Holland Holding
Limited
11.172
CNH Industrial Brasil Ltda.
Nova Lima
Brazil
3,512,501,440
BRL
100.00
New Holland Ltd
100.000
CNH Industrial Canada, Ltd.
Toronto
Canada
28,000,100
CAD
100.00
CNH Industrial N.V.
100.000
CNH Industrial Capital (India) Private
Limited
New Delhi
India
3,972,000,000
INR
100.00
CNH Industrial (India)
Private Limited
100.000
CNH Industrial Capital (Shanghai)
Commercial Factoring Co. Ltd.
Shanghai
People's Rep.of
China
20,000,000
USD
100.00
CNH Industrial Capital
Australia Pty Limited
100.000
CNH Industrial Capital America LLC
Wilmington
U.S.A.
1,000
USD
100.00
CNH Industrial Capital LLC
100.000
CNH INDUSTRIAL CAPITAL
ARGENTINA S.A.
Buenos Aires
Argentina
1,003,782,818
ARS
100.00
CNH Industrial N.V.
79.790
CNH ARGENTINA S.A.
20.210
CNH Industrial Capital Australia Pty
Limited
St. Marys
Australia
70,675,693
AUD
100.00
CNH Industrial Australia
Pty Limited
100.000
CNH Industrial Capital Canada Ltd.
Calgary
Canada
5,435,350
CAD
100.00
Case Credit Holdings
Limited
100.000
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   277
CNH Industrial Capital Corretora de
Seguros Administração e Serviços Ltda.
Curitiba
Brazil
100,000
BRL
100.00
CNHI COMERCIO DE
PEÇAS LTDA
99.990
CNH Industrial Brasil Ltda.
0.010
CNH Industrial Capital LLC
Wilmington
U.S.A.
—
USD
100.00
CNH Industrial America
LLC
100.000
CNH Industrial Capital Russia LLC
Moscow
Russia
640,740,000
RUR
100.00
CNH Industrial N.V.
100.000
CNH Industrial Capital Solutions S.p.A.
Turin
Italy
53,031,539
EUR
100.00
CNH Industrial N.V.
100.000
CNH Industrial Capital South America
SpA
Las Condes
Chile
5,000,000
USD
100.00
New Holland Ltd
100.000
CNH Industrial Danmark A/S
Albertslund
Denmark
12,000,000
DKK
100.00
CNH Industrial N.V.
100.000
CNH Industrial Deutschland GmbH
Heilbronn
Germany
18,457,650
EUR
100.00
CNH Industrial
Baumaschinen GmbH
90.000
CNH Industrial N.V.
10.000
CNH Industrial Europe Holding S.A. in
liquidation
Luxembourg
Luxembourg
100,000,002
USD
100.00
CNH Industrial N.V.
100.000
CNH Industrial Exports Inc.
Wilmington
U.S.A.
3,000
USD
100.00
CNH Industrial N.V.
100.000
CNH Industrial Finance Europe S.A.
Luxembourg
Luxembourg
50,000,000
EUR
100.00
CNH Industrial N.V.
60.000
CNH Industrial Finance
S.p.A.
40.000
CNH Industrial Finance North America,
Inc.
Wilmington
U.S.A.
25,000,000
USD
100.00
CNH Industrial N.V.
60.000
CNH Industrial Finance
S.p.A.
40.000
CNH Industrial Finance S.p.A.
Turin
Italy
100,000,000
EUR
100.00
CNH Industrial N.V.
100.000
CNH Industrial France
Morigny-
Champigny
France
52,965,450
EUR
100.00
CNH Industrial N.V.
100.000
CNH Industrial Italia s.p.a.
Turin
Italy
56,225,000
EUR
100.00
CNH Industrial N.V.
100.000
CNH Industrial Kutno sp. z o.o.
Kutno
Poland
5,000
PLN
100.00
CNH Industrial Polska Sp.
z o.o.
100.000
CNH Industrial Maquinaria Spain S.A.
Madrid
Spain
21,000,000
EUR
100.00
CNH Industrial N.V.
100.000
CNH Industrial OLDCO Capital Limited
Basildon
United Kingdom
2,480
EUR
100.00
CNH Industrial N.V.
100.000
CNH Industrial Osterreich GmbH
St. Valentin
Austria
2,000,000
EUR
100.00
CNH Industrial N.V.
100.000
CNH Industrial Polska Sp. z o.o.
Plock
Poland
162,591,660
PLN
100.00
CNH Industrial Belgium
100.000
CNH Industrial Portugal-Comercio de
Tractores e Maquinas Agricolas Ltda
Castanheira
do Ribatejo
Portugal
498,798
EUR
100.00
CNH Industrial N.V.
99.980
CNH Industrial Italia s.p.a.
0.020
CNH Industrial Russia LLC
Naberezhnye
Chenly
Russia
608,754,200
RUR
100.00
CNH Industrial Osterreich
GmbH
99.000
CNH Industrial N.V.
1.000
CNH Industrial Sales and services GmbH
Berlin
Germany
25,000
EUR
100.00
CNH Industrial
Baumaschinen GmbH
100.000
CNH Industrial Services (Thailand)
Limited
Bangkok
Thailand
10,000,000
THB
100.00
CNH Industrial Services
S.r.l.
99.997
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   278
CNH Industrial Asian
Holding Limited N.V.
0.002
CNH Industrial Services S.r.l.
Modena
Italy
10,400
EUR
100.00
CNH Industrial Italia s.p.a.
100.000
CNH Industrial Sweden AB
Överum
Sweden
11,000,000
SEK
100.00
CNH Industrial N.V.
100.000
CNH Industrial Technology Services
(India) Private Limited
New Delhi
India
70,000,000
INR
100.00
CNH Industrial (India)
Private Limited
100.000
CNH Industrial U.S. Holdings Inc.
Wilmington
U.S.A.
1,000
USD
100.00
CNH Industrial N.V.
100.000
CNH Industrial UK Limited
London
United Kingdom
200
USD
100.00
CNH Industrial N.V.
100.000
CNH Reman LLC
Wilmington
U.S.A.
4,000,000
USD
50.00
CNH Industrial America
LLC
50.000
CNH U.K. Limited
Basildon
United Kingdom
25,275
GBP
100.00
New Holland Holding
Limited
100.000
CNH Wholesale Receivables LLC
Wilmington
U.S.A.
1,000
USD
100.00
CNH Industrial Capital
America LLC
100.000
CNHI COMERCIO DE PEÇAS LTDA
Nova Lima
Brazil
1,626,298
BRL
100.00
CNH Industrial Brasil Ltda.
100.000
CNHI International SA
Paradiso
Switzerland
100,000
CHF
100.00
CNH Industrial N.V.
100.000
Dot Technology Corp.
Toronto
Canada
12,558,870
CAD
100.00
Raven Industries Canada,
Inc.
100.000
Fiatallis North America LLC
Wilmington
U.S.A.
32
USD
100.00
CNH Industrial America
LLC
100.000
Flagship Dealer Holding Company, LLC
Wilmington
U.S.A.
1
USD
100.00
CNH Industrial America
LLC
100.000
Flexi-Coil (U.K.) Limited
Basildon
United Kingdom
3,291,776
GBP
100.00
CNH Industrial Canada,
Ltd.
100.000
HFI Holdings, Inc.
Wilmington
U.S.A.
1,000
USD
100.00
CNH Industrial America
LLC
100.000
LLC "CNH Industrial Financial Services
Russia"
Moscow
Russia
50,000,000
RUR
100.00
CNH Industrial N.V.
100.000
LLC “CNH Industrial Ukraine”
Kiev
Ukraine
30,000,000
UAH
100.00
CNH Industrial N.V.
100.000
New Holland Credit Company, LLC
Wilmington
U.S.A.
—
USD
100.00
CNH Industrial Capital LLC
100.000
New Holland Holding Limited
Basildon
United Kingdom
33,601
GBP
100.00
CNH Industrial N.V.
100.000
New Holland Ltd
Basildon
United Kingdom
1,079,247,000
GBP
100.00
CNH Industrial N.V.
100.000
New Holland Tractor Ltd.
Basildon
United Kingdom
184,100
GBP
100.00
New Holland Holding
Limited
100.000
O & K - Hilfe GmbH
Heilbronn
Germany
25,565
EUR
100.00
CNH Industrial
Baumaschinen GmbH
100.000
Raven Applied Technologies, LLC
Pierre
U.S.A.
1
USD
100.00
Raven Industries, Inc.
100.000
Raven CLI Construction, Inc.
Pierre
U.S.A.
10,000
USD
100.00
Raven Engineered Films,
Inc.
100.000
Raven do Brazil Participacoes E Servicos
Technicos LTDA
São Paulo
Brazil
53,360,425
BRL
100.00
Raven Applied
Technologies, LLC
100.000
Raven Engineered Films, Inc.
Pierre
U.S.A.
10,000
USD
100.00
Raven Industries, Inc.
100.000
Raven Europe, B.V.
Middenmeer
Netherlands
808,481
EUR
100.00
Raven International
Holding Company B.V.
100.000
Raven Industries Australia PTY Ltd.
Melbourne
Australia
 NaN
AUD
100.00
Raven Applied
Technologies, LLC
100.000
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   279
Raven Industries Canada, Inc.
Nova Scotia
Canada
130,000
CAD
100.00
Raven International
Holding Company B.V.
100.000
Raven Industries Holding, LLC
Pierre
U.S.A.
1
USD
100.00
Raven Industries, Inc.
100.000
Raven Industries, Inc.
Racine
U.S.A.
10
USD
100.00
CNH Industrial U.S.
Holdings Inc.
100.000
Raven International Holding Company
B.V.
Amsterdam
Netherlands
100
EUR
100.00
Raven Applied
Technologies, LLC
100.000
Raven Risk Management I.I.
Scottsdale
U.S.A.
 NaN
USD
100.00
Raven Industries, Inc.
100.000
Raven Slingshot, Inc.
Pierre
U.S.A.
10,000
USD
100.00
Raven Applied
Technologies, LLC
100.000
Receivables Credit II Corporation
Calgary
Canada
1
CAD
100.00
CNH Industrial Capital
America LLC
100.000
SAMPIERANA ASIA PACIFIC LTD
Kunshan
People's Rep.of
China
900,000
USD
90.00
Sampierana S.p.A
100.000
Sampierana S.p.A
Bagno di
Romagna
(FC)
Italy
1,100,000
EUR
90.00
CNH Industrial Italia s.p.a.
90.000
Steyr Center Nord GmbH
Ruckersdorf-
Harmannsdorf
Austria
35,000
EUR
100.00
CNH Industrial Osterreich
GmbH
100.000
Uzcaseagroleasing LLC
Tashkent
Uzbekistan
5,000,000
USD
51.00
Case Credit Holdings
Limited
51.000
UzCaseMash LLC
Tashkent
Uzbekistan
15,000,000
USD
60.00
Case Equipment Holdings
Limited
60.000
UzCaseService LLC
Tashkent
Uzbekistan
224,901,201
UZS
70.35
Case Equipment Holdings
Limited
70.348
UzCaseTractor LLC
Tashkent
Uzbekistan
15,000,000
USD
51.00
Case Equipment Holdings
Limited
51.000
Jointly-controlled entities accounted for using the equity method
CNH Comercial, SA de C.V.
Queretaro
Mexico
160,050,000
MXN
50.00
CNH de Mexico SA de CV
100.000
CNH de Mexico SA de CV
Queretaro
Mexico
165,276,000
MXN
50.00
CNH Industrial N.V.
50.000
CNH Industrial S.A. de C.V.
Queretaro
Mexico
400,050,000
MXN
50.00
CNH de Mexico SA de CV
100.000
CNH Servicios Comerciales, S.A. de C.V.,
SOFOM, E.N.R.
Queretaro
Mexico
50,000,000
MXN
50.00
CNH Industrial N.V.
50.000
New Holland HFT Japan Inc.
Sapporo
Japan
240,000,000
JPY
50.00
CNH Industrial N.V.
50.000
Turk Traktor ve Ziraat Makineleri A.S.
Ankara
Turkey
53,369,000
TRY
37.50
CNH Industrial Osterreich
GmbH
37.500
Subsidiaries valued at cost
Case Construction Equipment, Inc.
Wilmington
U.S.A.
1,000
USD
100.00
CNH Industrial America
LLC
100.000
Case IH Agricultural Equipment, Inc.
Wilmington
U.S.A.
1,000
USD
100.00
CNH Industrial America
LLC
100.000
Case International Limited
Basildon
United Kingdom
1
GBP
100.00
New Holland Holding
Limited
100.000
CNH Trustee Limited
Basildon
United Kingdom
2
GBP
100.00
CNH Industrial N.V.
50.000
New Holland Ltd
50.000
Employers' Health Initiatives L.L.C.
Wilmington
U.S.A.
790,000
USD
100.00
CNH Industrial America
LLC
100.000
International Harvester Company
Wilmington
U.S.A.
1,000
USD
100.00
CNH Industrial America
LLC
100.000
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   280
J.I. Case Company Limited
Basildon
United Kingdom
2
GBP
100.00
Case United Kingdom
Limited
100.000
J.I. Case Trustee Limited
Basildon
United Kingdom
2
GBP
100.00
CNH Industrial N.V.
50.000
New Holland Ltd
50.000
SERFIT S.R.L.
Turin
Italy
50,000
EUR
100.00
CNH Industrial N.V.
100.000
Associated companies accounted for using the equity method
Al-Ghazi Tractors Ltd
Karachi
Pakistan
289,821,005
PKR
43.17
CNH Industrial N.V.
43.169
Bennamann Energy Limited
Newquay
Cornwall
United Kingdom
159
GBP
8.16
CNH Industrial N.V.
8.164
Bennamann Ltd.
Newquay
Cornwall
United Kingdom
15,886
GBP
8.16
CNH Industrial N.V.
8.164
Bennamann Services Ltd.
Newquay
Cornwall
United Kingdom
159
GBP
8.16
CNH Industrial N.V.
8.164
CNH Industrial Capital Europe S.a.S. (2)
Nanterre
France
88,482,297
EUR
49.90
CIFINS S.p.A.
49.900
Farm FZCO
Jebel Ali
United Arab
Emirates
6,600,000
AED
28.79
CNH Industrial Italia s.p.a.
28.788
Geoprospectors GmbH
Traiskirchen
Austria
84,250
EUR
25.00
CNH Industrial N.V.
24.999
Associated companies valued at cost
Consorzio Nido Industria Vallesina
Ancona
Italy
53,903
EUR
38.73
CNH Industrial Italia s.p.a.
38.728
Other companies accounted for using the equity method
Zasso Group AG
Zug
Switzerland
290,599
CHF
10.42
CNH Industrial N.V.
10.418
Other companies valued at cost
Augmenta Holding
Paris
France
6,659,159
EUR
10.00
CNH Industrial N.V.
10.002
CODEFIS Società consortile per azioni
(3)
Turin
Italy
120,000
EUR
19.00
CNH Industrial Capital
Limited
9.500
CNH Industrial Capital
Solutions S.p.A.
9.500
FCA Services S.c.p.a. (4)
Turin
Italy
1,600,000
EUR
12.96
Iveco S.p.A.
7.656
CNH Industrial Italia s.p.a.
4.208
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   281
FPT Industrial S.p.A.
0.846
Astra Veicoli Industriali
S.p.A.
0.042
CNH Industrial Finance
S.p.A.
0.042
CNH Industrial Services
S.r.l.
0.042
Iveco Capital Solutions
S.p.A.
0.042
Iveco Defence Vehicles
S.p.A.
0.042
Officine Brennero S.p.A.
0.042
Nuova Didactica S.c. a r.l.
Modena
Italy
112,200
EUR
12.27
CNH Industrial Italia s.p.a.
12.273
Zimeno, Inc.
Wilmington
U.S.A.
1
USD
10.76
CNH Industrial America
LLC
10.760
(1) At December 31, 2021, it was 100% owned by CNH Industrial; after the Demerger, it is a jointly-controlled entity accounted for using the equity method, owned 50.0% by CNH Industrial and
50.0% by Iveco Group.
(2) At December 31, 2021, it was 49.90% owned by CNH Industrial through CIFINS S.p.A.; after the Demerger, CNH Industrial and Iveco Group have a 24.95% and 24.95% interest in the
entity, respectively.
(3) At December 31, 2021, CNH Industrial had a 19.0% interest in this entity; after the Demerger, CNH Industrial and Iveco Group have each a 9.5% interest in this entity.
(4) At December 31, 2021, CNH Industrial had a 12.96% interest in this entity; after the Demerger, CNH Industrial and Iveco Group have a 4.29% and a 8.67% interest in the entity, respectively.
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   282
DISCONTINUED OPERATIONS
Subsidiaries consolidated on a line-by-line basis
2 H Energy S.A.S.
Fécamp
France
2,000,000
EUR
100.00
CNH Industrial Finance
France S.A.
100.000
Afin Bulgaria EAD
Sofia
Bulgaria
310,110
BGN
100.00
CNH Industrial Capital
Limited
100.000
Afin Slovakia S.R.O.
Bratislava
Slovack Republic
39,833
EUR
99.98
CNH Industrial Capital
Limited
98.120
Iveco Slovakia, s.r.o.
1.880
Amce-Automotive Manufacturing
Co.Ethiopia
Addis Ababa
Ethiopia
100,000,000
ETB
70.00
CNH Industrial N.V.
70.000
Astra Veicoli Industriali S.p.A.
Piacenza
Italy
10,400,000
EUR
100.00
Iveco S.p.A.
100.000
Blitz S19-499 GmbH
Ulm
Germany
25,000
EUR
94.00
Iveco Magirus AG
100.000
CNH Industrial Argentina S.A.
Buenos Aires
Argentina
4,749,441,412
ARS
100.00
FPT Industrial S.p.A.
94.946
FPT INDUSTRIAL BRASIL
LTDA.
5.054
CNH Industrial Capital Limited
Basildon
United Kingdom
18,200,000
EUR
100.00
CNH Industrial N.V.
100.000
CNH Industrial Finance France S.A.
Trappes
France
1,000,000
EUR
100.00
New Business Netherlands
Holding B.V.
99.999
CNH Industrial Financial Services A/S
Albertslund
Denmark
500,000
DKK
100.00
CNH Industrial N.V.
100.000
CNH Industrial SA (Pty) Ltd.
Centurion
South Africa
165,100,750
ZAR
100.00
CNH Industrial N.V.
100.000
Dolphin N2 Limited
Shoreham-by-
Sea
United Kingdom
2
GBP
100.00
FPT Industrial S.p.A.
100.000
Effe Grundbesitz GmbH
Ulm
Germany
10,225,838
EUR
83.77
Iveco Investitions GmbH
90.000
Fiat Powertrain Technologies
(Chongqing) Co., Ltd.
Chongqing
People's Rep.of
China
50,000,000
CNY
100.00
Fiat Powertrain
Technologies Management
(Shanghai) Co. Ltd.
100.000
Fiat Powertrain Technologies
Management (Shanghai) Co. Ltd.
Shanghai
People's Rep.of
China
2,000,000
USD
100.00
FPT Industrial S.p.A.
100.000
Fiat Powertrain Technologies of North
America, Inc.
Wilmington
U.S.A.
1
USD
100.00
FPT Industrial S.p.A.
100.000
FPT - Powertrain Technologies France
SAS
Garchizy
France
73,444,960
EUR
100.00
IVECO FRANCE SAS
97.144
CNH Industrial Finance
France S.A.
2.856
FPT INDUSTRIAL BRASIL LTDA.
Contagem
Brazil
260,604,556
BRL
100.00
CNH Industrial N.V.
100.000
FPT Industrial S.p.A.
Turin
Italy
100,000,000
EUR
100.00
CNH Industrial N.V.
100.000
FPT Motorenforschung AG
Arbon
Switzerland
4,600,000
CHF
100.00
FPT Industrial S.p.A.
100.000
Heuliez Bus S.A.S.
Mauléon
France
9,000,000
EUR
100.00
Société Charolaise de
Participations SAS
100.000
IAV-Industrie-Anlagen-Verpachtung
GmbH
Ulm
Germany
25,565
EUR
88.42
Iveco Investitions GmbH
95.000
IC Financial Services S.A.
Morigny-
Champigny
France
105,860,635
EUR
100.00
CNH Industrial N.V.
100.000
IDV USA INC.
Wilmington
U.S.A.
250,000
USD
100.00
Iveco Defence Vehicles
S.p.A.
100.000
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   283
Iveco (China) Commercial Vehicle Sales
Co. Ltd
Shanghai
People's Rep.of
China
50,000,000
CNY
100.00
Iveco S.p.A.
100.000
Iveco (Schweiz) AG
Kloten
Switzerland
9,000,000
CHF
100.00
Iveco Nederland B.V.
100.000
Iveco Arac Sanayi VE Ticaret A.S.
Samandira-
Kartal/Istanbul
Turkey
375,000,000
TRY
100.00
CNH Industrial N.V.
100.000
IVECO ARGENTINA S.A.
Buenos Aires
Argentina
11,017,857,270
ARS
100.00
Iveco Espana S.L.
94.924
ON-HIGHWAY BRASIL
LTDA.
5.076
Iveco Austria GmbH
Vienna
Austria
6,178,000
EUR
100.00
CNH Industrial N.V.
100.000
Iveco Bayern GmbH
Nuremberg
Germany
742,000
EUR
94.00
Iveco Magirus AG
100.000
Iveco Belgium N.V.
Groot-
Bijgaarden
Belgium
6,000,000
EUR
100.00
CNH Industrial N.V.
99.983
Iveco Nederland B.V.
0.017
Iveco Capital Services S.R.L.
Glina
Romenia
22,519,423
RON
100.00
CNH Industrial Capital
Limited
100.000
Iveco Capital Solutions S.p.A.
Turin
Italy
160,000,000
EUR
100.00
CNH Industrial N.V.
100.000
Iveco Czech Republic A.S.
Vysoke Myto
Czech Republic
1,065,559,000
CZK
98.84
IVECO FRANCE SAS
98.838
Iveco Danmark A/S
Albertslund
Denmark
501,000
DKK
100.00
CNH Industrial N.V.
100.000
IVECO DEFENCE VEHICLES ROMANIA
S.R.L.
Glina
Romenia
4,840,000
RON
100.00
Iveco Defence Vehicles
S.p.A.
100.000
Iveco Defence Vehicles S.p.A.
Bolzano
Italy
25,000,000
EUR
100.00
Iveco S.p.A.
100.000
Iveco Espana S.L.
Madrid
Spain
100,000,001
EUR
100.00
New Business Netherlands
Holding B.V.
100.000
Iveco Est Sas
Hauconcourt
France
2,005,600
EUR
100.00
IVECO FRANCE SAS
100.000
Iveco Finland OY
Espoo
Finland
100,000
EUR
100.00
CNH Industrial N.V.
100.000
IVECO FRANCE SAS
Vénissieux
France
93,104,460
EUR
100.00
Iveco Espana S.L.
50.192
New Business Netherlands
Holding B.V.
49.541
Heuliez Bus S.A.S.
0.267
IVECO Group Korea LLC
Gwangju
South Korea
3,500,000,000
KRW
100.00
CNH Industrial N.V.
100.000
Iveco Group N.V.
Amsterdam
Netherlands
250,000
EUR
100.00
CNH Industrial N.V.
100.000
Iveco Holdings Limited
Basildon
United Kingdom
47,000,000
GBP
100.00
CNH Industrial N.V.
100.000
Iveco Investitions GmbH
Ulm
Germany
2,556,459
EUR
93.08
Iveco Magirus AG
99.020
Iveco L.V.I. S.a.s.
Saint Priest
France
2,000,000
EUR
100.00
IVECO FRANCE SAS
100.000
Iveco Limited
Basildon
United Kingdom
117,000,000
GBP
100.00
Iveco Holdings Limited
100.000
Iveco Magirus AG
Ulm
Germany
50,000,000
EUR
94.00
CNH Industrial N.V.
88.340
Iveco S.p.A.
5.660
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   284
Iveco Magirus Fire Fighting GmbH
Weisweil
Germany
30,776,857
EUR
84.63
Iveco Magirus AG
90.032
Iveco Nederland B.V.
Andelst
Netherlands
21,920,549
EUR
100.00
New Business Netherlands
Holding B.V.
100.000
Iveco Nord Nutzfahrzeuge GmbH
Hamburg
Germany
1,611,500
EUR
94.00
Iveco Magirus AG
100.000
Iveco Nord SAS
Lesquin
France
2,045,701
EUR
100.00
IVECO FRANCE SAS
100.000
Iveco Nord-Ost Nutzfahrzeuge GmbH
Berlin
Germany
2,120,000
EUR
94.00
Iveco Magirus AG
100.000
Iveco Norge A.S.
Voyenenga
Norway
18,600,000
NOK
100.00
CNH Industrial N.V.
100.000
Iveco Otomotiv Ticaret A.S.
Samandira-
Kartal/Istanbul
Turkey
92,000,000
TRY
100.00
CNH Industrial N.V.
100.000
Iveco Participations s.a.s.
Vitrolles
France
468,656
EUR
100.00
IVECO FRANCE SAS
100.000
Iveco Pension Trustee Ltd
Basildon
United Kingdom
2
GBP
100.00
Iveco Holdings Limited
50.000
Iveco Limited
50.000
Iveco Poland Sp. z o.o.
Warsaw
Poland
46,974,500
PLN
100.00
CNH Industrial N.V.
100.000
Iveco Portugal-Comercio de Veiculos
Industriais S.A.
Vila Franca de
Xira
Portugal
15,962,000
EUR
100.00
CNH Industrial N.V.
99.996
Astra Veicoli Industriali
S.p.A.
0.001
Iveco Espana S.L.
0.001
Iveco Nederland B.V.
0.001
Mediterranea de Camiones
S.L.
0.001
Iveco Provence s.a.s.
Vitrolles
France
2,371,200
EUR
100.00
Iveco Participations s.a.s.
100.000
Iveco Retail Limited
Basildon
United Kingdom
7,319,100
GBP
100.00
Iveco Holdings Limited
100.000
Iveco Romania S.r.l.
Glina
Romenia
17,500
RON
100.00
Iveco Austria GmbH
100.000
Iveco S.p.A.
Turin
Italy
200,000,000
EUR
100.00
CNH Industrial N.V.
100.000
Iveco Slovakia, s.r.o.
Bratislava
Slovack Republic
6,639
EUR
98.84
Iveco Czech Republic A.S.
100.000
Iveco South Africa Works (Pty) Ltd
Centurion
South Africa
215,010,239
ZAR
60.00
CNH Industrial SA (Pty) Ltd.
60.000
Iveco Sud-West Nutzfahrzeuge GmbH
Mannheim-
Neckarau
Germany
1,533,900
EUR
94.00
Iveco Magirus AG
100.000
Iveco Sweden A.B.
Helsingborg
Sweden
600,000
SEK
100.00
CNH Industrial N.V.
100.000
Iveco Truck Centrum s.r.o.
Lodenice
Czech Republic
10,000,000
CZK
100.00
CNH Industrial N.V.
100.000
Iveco Truck Services S.R.L.
Glina
Romenia
2,200,200
RON
100.00
Iveco Romania S.r.l.
95.000
Iveco Austria GmbH
5.000
Iveco Trucks Australia Limited
Dandenong
Australia
139,242,022
AUD
100.00
CNH Industrial N.V.
100.000
Iveco Ukraine LLC
Kiev
Ukraine
49,258,692
UAH
100.00
CNH Industrial N.V.
100.000
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   285
Iveco West Nutzfahrzeuge GmbH
Düsseldorf
Germany
3,017,000
EUR
94.00
Iveco Magirus AG
100.000
MAGIRUS CAMIVA S.a.s. (societè par
actions simplifièe)
Chambéry
France
1,870,169
EUR
84.63
Iveco Magirus Fire Fighting
GmbH
100.000
Magirus GmbH
Ulm
Germany
6,493,407
EUR
84.43
Iveco Magirus Fire Fighting
GmbH
99.764
Magirus Italia S.r.l.
Brescia
Italy
50,000
EUR
100.00
Iveco S.p.A.
100.000
Magirus Lohr GmbH
Premstätten
Austria
1,271,775
EUR
84.43
Magirus GmbH
100.000
Mediterranea de Camiones S.L.
Madrid
Spain
48,080
EUR
100.00
Iveco Espana S.L.
99.875
CNH Industrial N.V.
0.125
New Business Netherlands Holding B.V.
Andelst
Netherlands
150,000
EUR
100.00
CNH Industrial N.V.
100.000
Officine Brennero S.p.A.
Trento
Italy
2,833,830
EUR
100.00
Iveco S.p.A.
100.000
ON-HIGHWAY BRASIL LTDA.
Sete Lagoas
Brazil
760,929,213
BRL
100.00
CNH Industrial N.V.
100.000
OOO Iveco Russia
Moscow
Russia
868,545,000
RUR
100.00
CNH Industrial N.V.
99.960
Iveco Austria GmbH
0.040
Potenza Technology Holdings Limited
Birmingham
United Kingdom
200
GBP
100.00
FPT Industrial S.p.A.
100.000
Potenza Technology Limited
Birmingham
United Kingdom
100
GBP
100.00
Potenza Technology
Holdings Limited
100.000
SAIC Fiat Powertrain Hongyan Co. Ltd.
Chongqing
People's Rep.of
China
580,000,000
CNY
60.00
FPT Industrial S.p.A.
60.000
Seddon Atkinson Vehicles Ltd
Basildon
United Kingdom
41,700,000
GBP
100.00
Iveco Holdings Limited
100.000
Société Charolaise de Participations SAS
Vénissieux
France
2,370,000
EUR
100.00
Iveco Espana S.L.
100.000
Société de Diffusion de Vehicules
Industriels-SDVI S.A.S.
ORVAULT
France
7,022,400
EUR
100.00
IVECO FRANCE SAS
100.000
Transolver Service S.A.
Madrid
Spain
610,000
EUR
100.00
CNH Industrial Capital
Limited
99.984
Iveco Espana S.L.
0.016
Transolver Services S.A.S.
Guyancourt
France
38,000
EUR
100.00
CNH Industrial Capital
Limited
100.000
UAB Iveco Capital Baltic
Vilnius
Lithuania
40,110
EUR
100.00
CNH Industrial Capital
Limited
100.000
Zona Franca Alari Sepauto S.A.
Barcelona
Spain
520,560
EUR
51.87
Iveco Espana S.L.
51.867
Jointly-controlled entities accounted for using the equity method
IVECO - OTO MELARA Società
Consortile a responsabilità limitata
Rome
Italy
40,000
EUR
50.00
Iveco Defence Vehicles
S.p.A.
50.000
Iveco Orecchia S.p.A.
Turin
Italy
8,000,000
EUR
50.00
Iveco S.p.A.
50.000
Nikola Iveco Europe GmbH
Ulm
Germany
25,000
EUR
50.00
Iveco S.p.A.
50.000
SAIC IVECO Commercial Vehicle
Investment Company Limited
Shanghai
People's Rep.of
China
224,500,000
USD
50.00
FPT Industrial S.p.A.
50.000
Subsidiaries valued at cost
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   286
Altra S.p.A.
Genoa
Italy
516,400
EUR
100.00
Iveco S.p.A.
100.000
CNH INDUSTRIAL VENEZUELA, C.A.
Caracas
Venezuela
1,715,951,510
VES
100.00
CNH Industrial N.V.
100.000
ITALWATT S.r.l.
Leinì (Torino)
Italy
20,000
EUR
70.00
Iveco Defence Vehicles
S.p.A.
70.000
Iveco Group Switzerland SA
Paradiso
Switzerland
100,000
CHF
100.00
CNH Industrial N.V.
100.000
Associated companies accounted for using the equity method
IVECO-AMT Ltd.
Miass
Russia
65,255,056
RUR
33.33
CNH Industrial N.V.
33.330
Transolver Finance Establecimiento
Financiero de Credito S.A.
Madrid
Spain
29,315,458
EUR
49.00
CNH Industrial N.V.
49.000
Associated companies valued at cost
Sotra S.A.
Abidjan
Ivory Coast
3,000,000,000
XAF
39.80
IVECO FRANCE SAS
39.800
Trucks & Bus Company
Tajoura
Libya
96,000,000
LYD
25.00
Iveco Espana S.L.
25.000
Other companies valued at cost
Naveco (Nanjing IVECO Motor Co.) Ltd.
Nanjing
People's Rep.of
China
2,527,000,000
CNY
19.90
Iveco S.p.A.
19.900
Name
Registered
Office
Country
Share capital
Currency
% of Group
consolidation
Interest held by
% interest
held
% of voting
rights
Appendix - CNH Industrial Group companies at December 31, 2021   287
Independent auditor’s report
To: the shareholders and audit committee of CNH Industrial N.V.
Report on the audit of the financial statements 2021 included
in the annual report
Our opinion
We have audited the financial statements for the year ended December 31, 2021 of CNH Industrial N.V., based in
Amsterdam.
In our opinion the accompanying financial statements give a true and fair view of the financial position of CNH Industrial
N.V. as at December 31, 2021 and of its result and its cash flows for 2021 in accordance with International Financial
Reporting Standards as adopted by the European Union (EU‑IFRS) and with Part 9 of Book 2 of the Dutch Civil Code.
The financial statements comprise the consolidated and company financial statements.
In our opinion:
•The accompanying consolidated financial statements give a true and fair view of the financial position of CNH
Industrial N.V. as at December 31, 2021, and of its result and its cash flows for 2021 in accordance with
International Financial Reporting Standards as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2
of the Dutch Civil Code
•The accompanying company financial statements give a true and fair view of the financial position of CNH Industrial
N.V. as at December 31, 2021 and of its result for 2021 in accordance with Part 9 of Book 2 of the Dutch Civil Code
The consolidated financial statements comprise:
•The consolidated statement of financial position as at December 31, 2021
•The following statements for 2021: the consolidated income statement, the consolidated statements of
comprehensive income, cash flows and changes in equity
•The notes comprising a summary of the significant accounting policies and other explanatory information
The company financial statements comprise:
•The company statement of financial position as at December 31, 2021
•The company income statement for 2021
•The notes comprising a summary of the accounting policies and other explanatory information
Basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities
under those standards are further described in the Our responsibilities for the audit of the financial statements section
of our report.
We are independent of CNH Industrial N.V. in accordance with the EU Regulation on specific requirements regarding
statutory audit of public-interest entities, the “Wet toezicht accountantsorganisaties” (Wta, Audit firms supervision act),
the “Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten” (ViO, Code of Ethics for
Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in
the Netherlands. Furthermore we have complied with the “Verordening gedrags- en beroepsregels
accountants” (VGBA, Dutch Code of Ethics).
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independent auditor's report    288
Information in support of our opinion
We designed our audit procedures in the context of our audit of the financial statements as a whole and in forming our
opinion thereon. The following information in support of our opinion and any findings were addressed in this context,
and we do not provide a separate opinion or conclusion on these matters.
Our understanding of the business
CNH Industrial is a company in the capital goods sector that, through its various businesses, designs, produces and
sells agricultural equipment, construction equipment, trucks, commercial vehicles, buses and specialty vehicles in
addition to powertrain applications. CNH Industrial also offers financial products and services. The group is structured in
segments and components and we tailored our group audit approach accordingly. We paid specific attention in our audit
to a number of areas driven by the operations of the group and our risk assessment. On December 31, 2021, CNH
Industrial and Iveco Group N.V. (“Iveco Group”) have executed the deed of demerger whereby, effective January 1,
2022, the relevant Iveco Group business segments (trucks, commercial vehicles, buses, specialty vehicles as well as
powertrain applications) will separate from CNH Industrial and Iveco Group will become a public listed company
independent from CNH Industrial N.V. Therefore in the 2021 financial statements of CNH Industrial N.V. the Iveco
Group business segments are presented as discontinued operations.
We start by determining materiality and identifying and assessing the risks of material misstatement of the financial
statements, whether due to fraud or error in order to design audit procedures responsive to those risks and to obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Materiality
Materiality
$100 million (or €88 million) (2020: $90 million or €73 million)
Benchmark applied
Approximately 5% of adjusted EBIT (2020: approximately 5% of normalized
adjusted EBIT)
Explanation
Materiality is based on adjusted Earnings Before Interest and Taxes (EBIT), as
we consider an earnings-based measure to be an appropriate basis for
determining our overall materiality. The users of the financial statements of profit-
oriented entities tend to focus on EBIT. We believe that EBIT is an important
metric for the financial performance of the company. Adjustments are made to
EBIT for elements which are not directly related to the operational performance of
the company (restructuring costs, goodwill impairment loss and other discrete
items as disclosed in the paragraph Industrial Activities performance, as part of
the operating and financial review and prospects in the annual report.
In determining this year’s materiality, we have considered the company’s
continuing operations and adjusted for activities relating of the demerger of the
Iveco Group Business.
Whilst we considered alternative benchmarks to adjusted EBIT, we believe that a
adjusted EBIT approach to materiality is appropriate.
We have also taken into account misstatements and/or possible misstatements that in our opinion are material for the
users of the financial statements for qualitative reasons.
We agreed with audit committee that misstatements in excess of $5 million, which are identified during the audit, would
be reported to them, as well as smaller misstatements that in our view must be reported on qualitative grounds.
Independent auditor's report    289
Scope of the group audit
CNH Industrial N.V. is the parent of a group of entities (collectively referred to as ‘the Group’). The consolidated
financial statements of the Group as at December 31, 2021, include CNH Industrial N.V. and 202 consolidated
subsidiaries. The Group is organized in five reportable segments, being Agriculture, Construction, Commercial and
Specialty Vehicles, Powertrain and Financial Services, along with certain other corporate functions which are not
included in the reportable segments. The Group organizes its operations into 214 components in the consolidation and
reporting system.
Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing
the group audit. In this respect we have determined the nature and extent of the audit procedures to be carried out for
group entities. Decisive were the size and/or the risk profile of the group entities or operations. On this basis, we
selected group entities for which an audit or review had to be carried out on the complete set of financial information or
specific items. 
Accordingly, we identified 16 of CNH Industrial N.V.’s components, which, in our view, required an audit of their
complete financial information. Specific audit procedures on certain balances and transactions were performed on a
further 20 components. Group wide control procedures were performed on a further 152 components. The remaining 26
components which are not included in our group scope have been subject to risk based analytic procedures.
In establishing the overall approach to the audit, we determined the type of work that is needed to be done by us, as
group auditors, or by component auditors from Ernst & Young Global member firms and operating under our
instructions. The group audit team audited the group consolidation, financial statements and disclosures and the audit
procedures related to the key audit matter ‘The valuation of deferred taxes’. Because of the (international) travel
restrictions and social distancing due to the Covid-19 pandemic, we needed to restrict or have been unable to visit
management and/or component auditors. Due to these restrictions we intensified communication with significant
component teams using communication technology to ensure we obtained sufficient audit evidence to conclude on our
audit, also in relation to our key audit matter. For all entities in scope, we shared detailed instructions to the component
auditors and we reviewed their deliverables. 
In total these procedures covered approximately 100% of the group’s revenues and 100% of total assets.
By performing the procedures mentioned above at components of the group, together with additional procedures at
group level, we have been able to obtain sufficient and appropriate audit evidence about the group’s financial
information to provide an opinion about the consolidated financial statements.
Independent auditor's report    290
Teaming and use of specialists
We ensured that the audit teams both at group and at component levels included the appropriate skills and
competences which are needed for the audit of a listed client in the automotive industry. We included specialists in the
areas of IT audit, valuation, pensions and income tax.
Our focus on climate risks and the energy transition
Climate objectives will be high on the public agenda in the next decades. Issues such as CO2 reduction impact financial
reporting, as these issues entail risks for the business operation, the valuation of assets ('stranded assets') and
provisions or the sustainability of the business model and access to financial markets of companies with a larger CO2
footprint.
As part of our audit of the financial statements, we evaluated the extent to which climate-related risks and the possible
effects of the energy transition are taken into account in estimates and significant assumptions as well as in the design
of relevant internal control measures by CNH Industrial N.V.
As disclosed in the consolidated financial statements under the significant accounting policies and climate related
matters, all significant assumptions and estimates underlying the preparation of the following items were subject to an
analysis in order to identify and address the new uncertainties related to climate changes which could affect the
business: going concern, inventory management, property, plant and equipment, goodwill, brands, intangible assets
with a finite life, tax reliefs, revenue recognition, provisions and onerous contracts. Furthermore, we read the
management board report and considered whether there is any material inconsistency between the non-financial
disclosure and the financial statements.
Our audit procedures to address the assessed climate-related risks and the possible effects of the energy transition did
not result in a key audit matter.
Our focus on fraud and non-compliance with laws and regulations
Our responsibility
Although we are not responsible for preventing fraud or non-compliance and we cannot be expected to detect non-
compliance with all laws and regulations, it is our responsibility to obtain reasonable assurance that the financial
statements, taken as a whole, are free from material misstatement, whether caused by fraud or error.
Our audit response related to fraud risks
We identify and assess the risks of material misstatements of the financial statements due to fraud. During our audit we
obtained an understanding of the CNH Industrial N.V. and its environment and the components of the system of internal
control, including the risk assessment process and management’s process for responding to the risks of fraud and
monitoring the system of internal control and how audit committee exercises oversight, as well as the outcomes.
We refer to the paragraph Risk Management and Control System of the board report for management’s fraud risk
assessment.
We evaluated the design and relevant aspects of the system of internal control and in particular the fraud risk
assessment, as well as the code of conduct, whistle blower procedures and incident registration. We evaluated the
design and the implementation and, where considered appropriate, tested the operating effectiveness, of internal
controls designed to mitigate fraud risks.
As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to financial reporting fraud,
misappropriation of assets and bribery and corruption. We evaluated whether these factors indicate that a risk of
material misstatement due fraud is present.
We incorporated elements of unpredictability in our audit. We also considered the outcome of our other audit
procedures and evaluated whether any findings were indicative of fraud or non-compliance.
As in all of our audits, we addressed the risks related to management override of controls and when identifying and
assessing fraud risks we presumed that there are risks of fraud in revenue recognition.
We identified the following fraud risks and performed the following specific procedures:
Independent auditor's report    291
Presumed risks of fraud in revenue recognition:
Fraud risk
When identifying and assessing fraud risks we presume that there are risks of fraud in
revenue recognition. We evaluated the revenues streams coming from the various segments:
Agriculture, Construction, Commercial and Specialty Vehicles, Powertrains and Financial
Services. Our risk is mainly focusing on revenues which are inappropriately recognized in the
improper period as a result of manual journal entries recorded in corporate and/or
consolidating entities at or near period end. 
These revenues streams are disclosed in Note 1 to the financial statements.
Our audit approach
We designed and performed the following audit procedures to be responsive to this fraud risk:
•We perform risk assessment procedures as part of our audit planning and include the
corporate and/or consolidating entities in our audit scope.
•We make inquiries of management.
•We perform analytical review and perform tests of detail as to revenue recorded in
corporate and/or consolidating entities at or near period end.
•We perform tests of journal entries recorded in the corporate and/or consolidating
entities and ensure appropriate business rationale, and proper authorization and
documentation of approval.
Finally, we reviewed the adequacy of the disclosures made in Note 1.
We considered available information and made enquiries of relevant executives, directors (including tax, treasury,
internal audit, legal, compliance, human resources and segment/regional management and finance leaders) and the
audit committee.
Our audit response related to risks of non-compliance with laws and regulations
We assessed factors related to the risks of non-compliance with laws and regulations that could reasonably be
expected to have a material effect on the financial statements from our general industry experience, through
discussions with the board of directors, reading minutes, inspection of internal audit and compliance reports and
performing substantive tests of details of classes of transactions, account balances or disclosures and reference is
made to Notes 23 Other provisions and 27 Commitments and contingencies to the financial statements.
We also inspected lawyers’ letters and correspondence with regulatory authorities and remained alert to any indication
of (suspected) non-compliance throughout the audit. Finally, we obtained written representations from management that
all known instances of non-compliance with laws and regulations have been disclosed to us.
The fraud risk we identified, enquires and other available information did not lead to specific indications for fraud or
suspected fraud potentially materially impacting the view of the financial statements.
Independent auditor's report    292
Our audit response related to going concern
We performed the following procedures in order to identify and assess the risks relating to going concern and to
conclude on the appropriateness of management’s use of the going concern basis of accounting. The board of directors
made a specific assessment of the company’s ability to continue as a going concern and to continue its operations for
at least the next 12 months. We discussed and evaluated this assessment with management exercising professional
judgment and maintaining professional skepticism, and specifically focusing on the process followed by management to
make the assessment, management bias that could represent a risk, the impact of current events and conditions have
on the company’s operations and forecasted cash flows, with a focus on whether the company will have sufficient
liquidity to continue to meet its obligations as they fall due. We consider, based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause a company to cease to continue as a going concern. For the company’s disclosure we refer to
the significant accounting policies combined with the climate related matters.
Based on our procedures performed, we did not identify serious doubts on the entity’s ability to continue as a going
concern for the next 12 months.
Our key audit matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements. We have communicated the key audit matter to audit committee. The key audit matter is not a
comprehensive reflection of all matters discussed.
The key audit matter ‘The impact of the Covid-19 pandemic’ which was included in our last year’s auditor’s report, is not
considered a key audit matter for this year as the impact on the valuation of goodwill, valuation of tangible and
intangible fixed assets, and the provision for buy backs as a result of the Covid-19 pandemic was assessed and
recorded in the 2020 financial statements and the exposures for 2021 are limited. The key audit matter for valuation of
deferred taxes is maintained although the focus of the valuation of deferred taxes is changed from the activities in Italy
in prior years to the activities in Brazil in the current year.
Independent auditor's report    293
Valuation of deferred taxes
Note 9
Risk
As more fully described in Note 9, the Company had deferred tax assets recognized of $367
million (including those relating to Brazil that were recognized in the year) as of December 31,
2021. Deferred tax assets are only recognized and to the extent that it is probable that future
taxable profit will be available against which the unused tax losses and unused tax credits can
be utilised.
In preparation for the separation of the Iveco Group business segments from CNH Industrial
N.V., the Company reorganized its Industrial Activities in Brazil. Historically, the Company had
not recorded deferred tax assets in the Industrial Activities in Brazil. These reorganization
actions required the Company to assess whether its deferred tax assets in that jurisdiction will
be recovered. Auditing management’s analysis of the recoverability of its deferred tax assets
and related in the Industrial business in Brazil was key to our audit because the amounts are
material to the financial statements and the assessment process in that jurisdiction is complex.
This assessment involves significant judgment, including the weighting of all available
evidence, and includes assumptions that may be affected by the nature and timing of the
Company’s reorganization of its operations in Brazil, the impact of local tax legislation, and
projections of future taxable income of the reorganized businesses in Brazil.
The Group’s disclosures related to income taxes are included in Note 9 to the consolidated
financial statements.
Our audit
approach
We obtained an understanding, evaluated the design and tested the operating effectiveness of
internal controls that address the risks of material misstatement relating to the recoverability of
deferred tax assets. This included controls over management’s projections of future taxable
income, the future reversal of existing taxable temporary differences, and management’s
identification and use of available tax planning strategies.
To test the recoverability and valuation of the deferred tax assets, our audit procedures
included, among others, evaluating the methodologies used, the significant assumptions
discussed above, and the underlying data used by the Company in its analysis. For example,
as part of our evaluation of management’s significant assumptions, we utilized our tax
specialists and considered the relevant tax laws and regulations in Brazil, including
considering whether the estimated future sources of taxable income were of the appropriate
character to utilize the deferred tax assets in the relevant time period. We also evaluated
cumulative income or loss positions in that jurisdiction and evaluated the Company’s
projections of future taxable income, including comparing the forecasts to business plans and
performing sensitivity analyses to assess the reasonableness of those forecasts.
We have assessed the adequacy of the financial statements disclosure in Note 9 regarding
recognized deferred tax assets.
Key observations
We did not identify any evidence of material misstatement of deferred tax assets as recorded
in the statement of financial position or in the disclosures thereof.
Independent auditor's report    294
Report on other information included in the annual report
The annual report contains other information in addition to the financial statements and our auditor’s report thereon, the
annual report contains other information that consists of:
•The board report
•The remuneration report
•The information on the board of directors and auditor and the letter from the chairperson
•Other information as required by Part 9 of Book 2 of the Dutch Civil Code.
Based on the following procedures performed, we conclude that the other information:
•Is consistent with the financial statements and does not contain material misstatements
•Contains the information as required by Part 9 of Book 2 for the board report and the other information as required
by Part 9 of Book 2 of the Dutch Civil Code and as required by Sections 2:135b and 2:145 sub‑section 2 of the
Dutch Civil Code for the remuneration report.
We have read the other information. Based on our knowledge and understanding obtained through our audit of the
financial statements or otherwise, we have considered whether the other information contains material misstatements.
By performing these procedures, we comply with the requirements of Part 9 of Book 2 and Section 2:135b sub-Section
7 of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is substantially less
than the scope of those performed in our audit of the financial statements.
The board of directors is responsible for the preparation of the other information, including the board report in
accordance with Part 9 of Book 2 of the Dutch Civil Code and other information required by Part 9 of Book 2 of the
Dutch Civil Code. Management and audit committee are responsible for ensuring that the remuneration report is drawn
up and published in accordance with Sections 2:135b and 2:145 sub‑section 2 of the Dutch Civil Code.
Report on other legal and regulatory requirements and ESEF
Engagement
We were engaged by the general meeting as auditor of CNH Industrial N.V. on September 9, 2013 to perform the audit
of the 2013 financial statements and have continued as the statutory auditor since then.
No prohibited non-audit services
We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specific
requirements regarding statutory audit of public-interest entities.
European Single Electronic Reporting Format (ESEF)
CNH Industrial N.V. has prepared the annual report in ESEF. The requirements for this are set out in the Delegated
Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic
reporting format (hereinafter: the RTS on ESEF).
In our opinion, the annual report, prepared in the XHTML format, including the partially marked-up consolidated
financial statements, as included in the reporting package by CNH Industrial N.V., complies in all material respects with
the RTS on ESEF.
Management is responsible for preparing the annual report, including the financial statements, in accordance with the
RTS on ESEF, whereby management combines the various components into a single reporting package.
Our responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package
complies with the RTS on ESEF.
Our procedures, taking into account Alert 43 of the NBA (the Netherlands Institute of Chartered Accountants), included
amongst others:
•obtaining an understanding of the CNH Industrial N.V.’s financial reporting process, including the preparation of
the reporting package
•obtaining the reporting package and performing validations to determine whether the reporting package
containing the Inline XBRL instance document and the XBRL extension taxonomy files, has been prepared in
accordance with the technical specifications as included in the RTS on ESEF
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•examining the information related to the consolidated financial statements in the reporting package to determine
whether all required mark-ups have been applied and whether these are in accordance with the RTS on ESEF.
Description of responsibilities regarding the financial
statements
Responsibilities of management and the audit committee for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with EU-
IFRS and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, management is responsible for such internal control
as management determines is necessary to enable the preparation of the financial statements that are free from
material misstatement, whether due to fraud or error.
As part of the preparation of the financial statements, management is responsible for assessing the company’s ability to
continue as a going concern. Based on the financial reporting framework mentioned, management should prepare the
financial statements using the going concern basis of accounting unless management either intends to liquidate the
company or to cease operations, or has no realistic alternative but to do so. Management should disclose events and
circumstances that may cast significant doubt on the company’s ability to continue as a going concern in the financial
statements.
The audit committee is responsible for overseeing the company’s financial reporting process.
Our responsibilities for the audit of the financial statements
Our objective is to plan and perform the audit engagement in a manner that allows us to obtain sufficient and
appropriate audit evidence for our opinion.
Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all
material errors and fraud during our audit.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified
misstatements on our opinion.
We have exercised professional judgment and have maintained professional skepticism throughout the audit, in
accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. The ‘Information
in support of our opinion’ section above includes an informative summary of our responsibilities and the work performed
as the basis for our opinion.
Our audit further included among others:
•Performing audit procedures responsive to the risks identified, and obtaining audit evidence that is sufficient and
appropriate to provide a basis for our opinion
•Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
CNH Industrial N.V.’s internal control
•Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management
•Evaluating the overall presentation, structure and content of the financial statements, including the disclosures
•Evaluating whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
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Communication
We communicate with the audit committee regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant findings in internal control that we identify during our audit. In this
respect we also submit an additional report to the audit committee in accordance with Article 11 of the EU Regulation on
specific requirements regarding statutory audit of public-interest entities. The information included in this additional
report is consistent with our audit opinion in this auditor’s report.
We provide the audit committee with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with the audit committee, we determine the key audit matters: those matters that were
of most significance in the audit of the financial statements. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, not
communicating the matter is in the public interest.
Rotterdam, March 1, 2022
Ernst & Young Accountants LLP
Signed by P.W.J. Laan
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