SPECIAL ITEMS (Tables)

6 Months Ended

May 01, 2022

SPECIAL ITEMS

Schedule of Special Items

A summary of the reserves and impairments recorded in the second quarter of 2022 follows in millions of dollars:

	Three Months Ended May 1, 2022
	PPA		SAT		CF		FS		Total
2022 Expense:
Inventory reserve – Cost of sales	$	6			$	2			$	8
Fixed asset impairment – Cost of sales		30				11				41
Intangible asset impairment – Cost of sales						28				28
Allowance for credit losses – Financing receivables – SA&G expenses							$	26		26
Contingent liabilities – Other operating expenses		10	$	1		6				17
Total Russia/Ukraine events pretax expense	$	46	$	1	$	47	$	26	$	120
Net tax impact										(14)
Total Russia/Ukraine events after-tax expense									$	106

The following table summarizes the operating profit impact, in millions of dollars, of the special items recorded for the three months and six months ended May 1, 2022 and May 2, 2021:

	Three Months										Six Months
	PPA		SAT		CF		FS		Total		PPA		SAT		CF		FS		Total
2022 Expense (benefit):
Gain on remeasurement of equity investment – Other income (see Note 19)					$	(326)			$	(326)					$	(326)			$	(326)
Total Russia/Ukraine events pretax expense	$	46	$	1		47	$	26		120	$	46	$	1		47	$	26		120
UAW ratification bonus – Cost of sales												53		9		28				90
Total expense (benefit)	$	46	$	1	$	(279)	$	26	$	(206)	$	99	$	10	$	(251)	$	26	$	(116)
2021 Expense (benefit):
Long-lived asset impairments – Cost of sales											$	5	$	3	$	42			$	50
Brazil indirect tax – Cost of sales												(53)				(5)				(58)
Total expense (benefit)											$	(48)	$	3	$	37			$	(8)
Period over period change	$	46	$	1	$	(279)	$	26	$	(206)	$	147	$	7	$	(288)	$	26	$	(108)