36. Acquisitions and Disposals of subsidiaries and other investments


As discussed in the section “Business combinations”, on November 26, 2014, CNH Industrial completed the acquisition of substantially all of the assets of Miller, a leading manufacturer of precision spraying equipment, for total consideration of $106 million. This transaction has been accounted for as an acquisition in accordance with IFRS 3 - Business Combinations, and the Group has accordingly applied the acquisition method, fi nalized in December.

The identifiable assets acquired and liabilities assumed have been recognized at their fair values at the Acquisition date (November 26, 2014) and are set out below:

($ million)At the Acquisition date
Non-current assets 86
Current assets 30
Total assets acquired (a) 116
Liabilities assumed (b) 10
Net assets acquired/(Net liabilities assumed) (a) – (b) 106

The transaction led to the recognition of goodwill of $8 million given the favorable earnings prospects of the business forming part of the transaction.

The consideration paid in this business combination is set out below, together with the resulting cash flows:

($ million)At the Acquisition date
Consideration due 106
Consideration deferred -
Total Consideration 106
Cash outflows:  
Cash and cash equivalents paid 106
Cash and cash equivalents received -
Total cash fl ows paid/(received) 106

The Group made no significant acquisitions of subsidiaries in 2013.

During 2013 the Group acquired non-controlling interests in companies in which it already held control, leading to the recognition of a total cash outfl ow of $19 million. In particular, the Group purchased:

  • a non-controlling interest of 35.0% in Case Construction Machinery America LLC, with a cash outfl ow of $6 million; 
  • a non-controlling interest of 49.0% of CNH Industrial (Russia) Commercial Operations B.V. and of 50.0% in CNH Industrial (Russia) Industrial Operations B.V., for a total outflow of $13 million.

The changes in the ownership interests in subsidiaries described above did not have any signifi cant effect on the Group’s equity attributable to the owners of the parent.

With reference to the Merger occurred in 2013, the main effect was the acquisition of the non-controlling interests in the profi t and loss and shareholder’s equity of former CNH Global N.V. for no consideration. This effect was immaterial on the CNH Industrial’s consolidated profi t and loss for the year ended December 31, 2013.


The Group made no signifi cant disposals of investments in 2014 and 2013.