CNH Industrial SEC Filings

6-K
CNH INDUSTRIAL N.V. filed this Form 6-K on 11/06/2017
Entire Document
 

As of September 30, 2017, the Company continues to control, and therefore consolidate, its Venezuelan operations. Despite the significant macroeconomic challenges in the country, CNH Industrial intends to continue its presence in the Venezuelan market for the foreseeable future. CNH Industrial continues to monitor the Venezuelan economic situation and is actively engaged in discussions with the Venezuelan government agencies concerning its ongoing business activities. If, in the future, it concludes that it no longer maintains control over its operations in Venezuela, CNH Industrial may need to de-consolidate its operations in Venezuela, which would result in a pre- and after-tax charge of approximately $91 million.

Additionally, at the end of each period, CNH Industrial re-measures the net monetary assets of its Argentinian subsidiaries from the Argentine Peso into the U.S. dollar. During the three and nine months ended September 30, 2017 and 2016, CNH Industrial recorded a charge of $7 million and $17 million, respectively, and $7 million and $19 million, respectively, following the re-measurement of such net monetary assets.

4. VARIABLE INTEREST ENTITIES

The Company consolidates various securitization trusts and facilities that have been determined to be variable interest entities (“VIEs”) and of which the Company is a primary beneficiary. The Company has both the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. For further information regarding VIEs, please see “Note 9: Receivables.”

The following table presents certain assets and liabilities of consolidated VIEs, which are included in the condensed consolidated balance sheets included in this report. The assets in the table include only those assets that can be used to settle obligations of the consolidated VIEs. The liabilities in the table include third party liabilities of the consolidated VIEs, for which creditors do not have recourse to the general credit of the Company.

 

 

September 30, 2017

 

 

December 31, 2016

 

 

 

(in millions)

 

Restricted cash

 

$

637

 

 

$

776

 

Financing receivables

 

 

10,340

 

 

 

10,263

 

Total Assets

 

$

10,977

 

 

$

11,039

 

Debt

 

$

10,278

 

 

$

10,418

 

Total Liabilities

 

$

10,278

 

 

$

10,418

 

 

 

5. EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. Stock options, restricted stock units, and performance stock units are considered dilutive securities.

A reconciliation of basic and diluted earnings (loss) per share is as follows (in millions, except per share amounts):

  

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to CNH Industrial

 

$

53

 

 

$

39

 

 

$

341

 

 

$

(347

)

Weighted average common shares outstanding—basic

 

 

1,364

 

 

 

1,362

 

 

 

1,364

 

 

 

1,362

 

Basic earnings (loss) per share

 

$

0.04

 

 

$

0.03

 

 

$

0.25

 

 

$

(0.25

)

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to CNH Industrial

 

$

53

 

 

$

39

 

 

$

341

 

 

$

(347

)

Weighted average common shares outstanding—basic

 

 

1,364

 

 

 

1,362

 

 

 

1,364

 

 

 

1,362

 

Effect of dilutive securities (when dilutive):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation plans (A)

 

 

2

 

 

 

2

 

 

 

3

 

 

 

-

 

Weighted average common shares outstanding—diluted

 

 

1,366

 

 

 

1,364

 

 

 

1,367

 

 

 

1,362

 

Diluted earnings (loss) per share

 

$

0.04

 

 

$

0.03

 

 

$

0.25

 

 

$

(0.25

)

 

 

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