Until December 31, 2013, CNH Industrial N.V. (or the “Company” and collectively with its subsidiaries, “CNH Industrial” or the “CNH Industrial Group” or the “Group”) presented 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, in euros and including three reportable segments: Agricultural and Construction Equipment inclusive of its fi nancial services activities, Trucks and Commercial Vehicles inclusive of its fi nancial services activities, and Powertrain.
Beginning with the fi ling with the SEC of its Annual Report on Form 20-F for the fi scal year ended December 31, 2013, prepared in accordance with accounting standards generally accepted in the United States (“U.S. GAAP”), CNH Industrial reports quarterly and annual fi nancial results both under U.S. GAAP for SEC reporting purposes and under IFRS for European listing purposes and Dutch law requirements. Financial statements under both sets of accounting principles use the U.S. dollar as the reporting currency. Prior period results, prepared in euro, have been consistently recast. The functional currency of the parent company (CNH Industrial N.V.) remained the euro.
IFRS differs in certain signifi cant respects from U.S. GAAP. In order to help readers understand the difference between the CNH Industrial’s two sets of fi nancial statements, the Group has provided, on a voluntary basis, a reconciliation from IFRS to U.S. GAAP as included in Note 38 “IFRS to U.S. GAAP reconciliation”.
In addition, CNH Industrial has expanded its reportable segments from three (Agricultural and Construction Equipment inclusive of its fi nancial services activities, Trucks and Commercial Vehicles inclusive of its fi nancial services activities, and Powertrain) to fi ve (Agricultural Equipment, Construction Equipment, Commercial Vehicles, Powertrain and Financial Services). The activities carried out by the four industrial segments Agricultural Equipment, Construction Equipment, Commercial Vehicles and Powertrain, as well as Corporate functions, are collectively referred to as “Industrial Activities”. Prior period results have been consistently recast.
For a description of the accounting treatment of the change in the presentation currency and in the reportable segments, refer to paragraphs “Change in presentation currency” and “Change in reportable segments”, in section “Signifi cant accounting policies”.