CNH Industrial N.V.CNH
CNH Industrial N.V. Goodwill & Intangibles Disclosure
Goodwill and Other Intangibles
Changes in the carrying amount of goodwill, for the years ended December 31, 2025 and 2024 are as follows (in millions of dollars):
Agriculture | Construction | Financial Services | Total | |||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 3,426 | $ | 47 | $ | 141 | $ | 3,614 | ||||||||||||||||||
| Foreign currency translation and other | (24) | (3) | (3) | (30) | ||||||||||||||||||||||
| Balance at December 31, 2024 | 3,402 | 44 | 138 | 3,584 | ||||||||||||||||||||||
| Foreign currency translation and other | 25 | 6 | 2 | 33 | ||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 3,427 | $ | 50 | $ | 140 | $ | 3,617 | ||||||||||||||||||
Impairment testing for goodwill is done at a reporting unit level. Under the goodwill impairment test, CNH's estimate of the fair value of the reporting unit is compared with its carrying value. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. CNH has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary.
Goodwill and other indefinite-lived intangible assets are tested for impairment annually or more frequently if a triggering event occurs that would indicate it is more likely than not that the fair value of a reporting unit is less than book value. At December 31, 2025 the Company completed its annual impairment assessment and concluded there were no impairments to goodwill for any of the reporting units. As of December 31, 2025 the estimated fair values of each reporting unit with goodwill exceeded the carrying value by more than 36%.
As of December 31, 2025 and 2024, the Company's other intangible assets and related accumulated amortization consisted of the following (in millions of dollars):
| As of December 31, | ||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Avg. Life | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||||||||
| Other intangible assets subject to amortization: | ||||||||||||||||||||||||||||||||||||||||||||
| Dealer networks | 20-25 | $ | 217 | $ | 204 | $ | 13 | $ | 218 | $ | 203 | $ | 15 | |||||||||||||||||||||||||||||||
| Patents, concessions, licenses and other | 5-25 | 943 | 607 | 336 | 938 | 573 | 365 | |||||||||||||||||||||||||||||||||||||
| Capitalized software | 2-5 | 1,394 | 1,107 | 287 | 1,159 | 910 | 249 | |||||||||||||||||||||||||||||||||||||
| 2,554 | 1,918 | 636 | 2,315 | 1,686 | 629 | |||||||||||||||||||||||||||||||||||||||
| Other intangible assets not subject to amortization: | ||||||||||||||||||||||||||||||||||||||||||||
| In-process research and development | 31 | — | 31 | 198 | — | 198 | ||||||||||||||||||||||||||||||||||||||
| Software in-progress | 147 | — | 147 | 121 | — | 121 | ||||||||||||||||||||||||||||||||||||||
| Trademarks | 272 | — | 272 | 273 | — | 273 | ||||||||||||||||||||||||||||||||||||||
| Total other intangible assets | $ | 3,004 | $ | 1,918 | $ | 1,086 | $ | 2,907 | $ | 1,686 | $ | 1,221 | ||||||||||||||||||||||||||||||||
During 2025, the Company recorded a $172 million non-cash impairment charge related to the IPR&D assets within the Agriculture segment, including $123 million associated with the Raven acquisition and $49 million related to the Bennamann acquisition. The IPR&D assets acquired through the Raven transaction represent core underlying technology supporting autonomous farming solutions, including the integration of autonomous capabilities into CNH tractors and implements. The impairment charge related to the Raven assets was primarily driven by reduced projected cash flows resulting from revisions to the expected commercialization timeline. The IPR&D assets acquired as part of the Bennamann acquisition relate to technologies that capture methane emissions from livestock waste and convert them into better-than-zero carbon biofuel. The impairment charge related to the Bennamann assets was primarily due to reduced projected cash flows following a narrowing of strategic focus to the cleaning and upgrading of methane waste.These charges are included in "Research and development expenses" in the Consolidated Statements of Operations and in "Other non-cash items" within Operating Activities in the Consolidated Statements of Cash Flows. During 2024, the Company recorded an $11 million impairment charge related to an IPR&D asset in the Agriculture segment, which is also included in "Research and development expenses" in the Consolidated Statements of Operations.
CNH recorded amortization expenses of $165 million, $182 million and $164 million during 2025, 2024 and 2023, respectively.
Based on the current amount of other intangible assets subject to amortization, the estimated annual amortization expense for each of the succeeding 5 years is expected to be as follows: $160 million in 2026; $136 million in 2027; $87 million in 2028; $60 million in 2029 and $56 million in 2030.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.