Scope of Consolidation

The Consolidated Financial Statements of the Group as of December 31, 2013 include CNH Industrial N.V. and 199 consolidated subsidiaries in which CNH Industrial N.V., directly or indirectly, has a majority of the voting rights, over which it exercises control, or from which it is able to derive benefit by virtue of its power to govern corporate financial and operating policies. A total of 204 subsidiaries were consolidated at December 31, 2012.

Excluded from consolidation are 18 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.

The Group has not subsidiaries with material non-controlling interests and has no unconsolidated structured entities.

There have been no significant changes in the scope of consolidation during 2013.

Interests in joint ventures consist of 16 companies at December 31, 2013 (16 companies at December 31, 2012) and mainly include:

  • Turk Traktor Ve Ziraat Makineleri A.S., Turkey: listed entity (37.5% CNH Industrial and 37.5% Koç Holding) for the production of tractors under the Case IH Agriculture and New Holland Agriculture brands, and import and distribution of agricultural equipment in Turkey; 
  • Naveco (Nanjing IVECO Motor Co.) Ltd, People’s Rep. of China: joint venture (50% Iveco S.p.A. and 50% Nanjing Automotive Corporation, a subsidiary of the SAIC Group) which designs, produces and sells Daily model and light trucks.

Interests in joint ventures are all accounted for using the equity method.

Summarized financial information relating to the material joint ventures of the Group, prepared in accordance with IFRS, is as follows: 

 At December 31, 2013At December 31, 2012
(€ million)Naveco Ltd.Turk Traktor Ve Ziraat Makineleri
A.S.
Naveco Ltd.Turk Traktor Ve Ziraat Makineleri
A.S.
Cash and cash equivalents33648256161
Non-current assets16010514791
Current assets507277443308
Total Assets1,003430846560
Debt48869387151
Other liabilities171135120128
Total Liabilities659204507279
Total Equity344226339281

 20132012
(€ million)Naveco Ltd.Turk Traktor Ve Ziraat Makineleri
A.S.
Naveco Ltd.Turk Traktor Ve Ziraat Makineleri
A.S.
Net revenues1,0718031,021853
Depreciation and amortization1710169
Trading profit/(loss)4312736130
Operating profit/(loss)4412737130
Net Financial income/(expenses)7(9)118
Profit/(loss) before taxes5111848138
Income taxes716722
Profit/(loss) from continuing operations4410241116
Profit/(loss) from discontinued operations----
Profit/(loss)4410241116
Total Other comprehensive income, net of tax----
Total Comprehensive income4410241116

This summarized financial information may be reconciled to the carrying amount of the % interest held in the joint ventures as follows: 

 At December 31, 2013At December 31, 2012
(€ million)Naveco Ltd.Turk Traktor Ve Ziraat Makineleri
A.S.
Naveco Ltd.Turk Traktor Ve Ziraat Makineleri
A.S.
Total Equity344226339281
Group’s interest (%)50.037.550.037.5
Pro-quota equity17285169104
Adjustments made by using the equity method-6--
Carrying amount17291169104

Summarized financial information relating to the % interest held in the other joint ventures that are not individually material, is as follows: 

(€ million)20132012
Profit/(loss) from continuing operations273
Profit/(loss) from discontinued operations--
Profit/(loss)273
Total Other comprehensive income, net of tax--
Total Comprehensive income273

At December 31, 2013, 6 associates are accounted for using the equity method (6 associates at December 31, 2012), and mainly include CNH Capital Europe S.a.S. (49.9% CNH Industrial and 50.1% BNP Paribas Group), managing end-customer financing in Europe.

At December 31, 2013, 4 associates (3 associates at December 31, 2012), that are not individually material, are accounted for using the cost method.

Summarized financial information relating to CNH Capital Europe S.a.S., material associate of the Group, is as follows: 

(€ million)At December 31, 2013At December 31, 2012
Non-current assets--
Current assets1,8071,609
Total Assets1,8071,609
Debt1,5351,425
Other liabilities12340
Total Liabilities1,6581,465
Total Equity149144

(€ million)20132012
Net revenues5045
Trading profit/(loss)2925
Operating profit/(loss)2925
Profit/(loss) before taxes2925
Profit/(loss) from continuing operations2118
Profit/(loss) from discontinued operations--
Profit/(loss)2118
Total Other comprehensive income, net of tax--
Total Comprehensive income2118

This summarized financial information may be reconciled to the carrying amount of the % interest held in the associate as follows: 

(€ million)At December 31, 2013At December 31, 2012
Total Equity149144
Group’s interest (%)49.949.9
Pro-quota equity7472
Adjustments made by using the equity method41
Carrying amount7873

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)20132012
Profit/(loss) from continuing operations610
Profit/(loss) from discontinued operations--
Profit/(loss)610
Total Other comprehensive income, net of tax--
Total Comprehensive income610