GOODWILL AND OTHER INTANGIBLES

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill for the three months ended March 31, 2023 were as follows:


	Agriculture		Construction		Financial Services		Total
	(in millions)
Balance at January 1, 2023	$	3,136	$	46	$	140	$	3,322
Acquisition	194		—		—		194
Foreign currency translation and other	(2)		—		—		(2)
Balance at March 31, 2023	$	3,328	$	46	$	140	$	3,514

Goodwill and other indefinite-lived intangible assets are tested for impairment annually or more frequently if a triggering event occurred that would indicate it is more likely than not that the fair value of a reporting unit is less than book value. CNH Industrial performed its most recent annual impairment review as of December 31, 2022 and concluded that there was no impairment to goodwill for any of the reporting entities.

The acquisitions of Augmenta and Bennamann, during the first quarter of 2023, led to the increase in Goodwill for Agriculture of $76 million and $118 million, respectively. Goodwill related to the acquisitions was calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from the other assets acquired that could not be individually identified and separately recognized. The valuations of assets acquired, and liabilities assumed have not yet been finalized as of March 31, 2023. Thus, goodwill associated with the acquisitions is subject to adjustment during the measurement period.

As of March 31, 2023 and December 31, 2022, the Company’s other intangible assets and related accumulated amortization consisted of the following:


		March 31, 2023						December 31, 2022
	Weighted Avg. Life	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
		(in millions)
Other intangible assets subject to amortization:
Dealer networks	15	$	291	$	244	$	47	$	291	$	242	$	49
Patents, concessions, licenses and other	5-25	1,891		1,176		715		1,796		1,153		643
		2,182		1,420		762		2,087		1,395		692
Other intangible assets not subject to amortization:
In-process research and development		165				165		165				165
Trademarks		272		—		272		272		—		272
Total Other intangible assets		$	2,619	$	1,420	$	1,199	$	2,524	$	1,395	$	1,129

During the first quarter of 2023, the Company recorded $81 million in intangible assets based on the preliminary valuation for the Augment and Bennamann acquisitions. The valuation of assets acquired, and liabilities assumed has not been finalized as of March 31, 2023. The intangible assets associated with the acquisitions are subject to adjustment during the measurement period.

CNH Industrial recorded amortization expense of $38 million and $32 million for the three months ended March 31, 2023 and 2022, respectively