##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





FORM 20-F




|    |                                                                      
|--- | ---------------------------------------------------------------------
|[ ] | REGISTRATION STATEMENT PURSUANT TO SECTIONS 12(b) OR 12(g) OF
    THE

SECURITIES EXCHANGE ACT OF 1934


or




|    |                                                                    
|--- | -------------------------------------------------------------------
|[X] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES

EXCHANGE ACT OF 1934


For the Fiscal Year Ended December 31, 2005


or




|    |                                                                        
|--- | -----------------------------------------------------------------------
|[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES

EXCHANGE ACT OF 1934


or




|    |                                                                           
|--- | --------------------------------------------------------------------------
|[ ] | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES

EXCHANGE ACT OF 1934


Commission File Number 1-14528


CNH GLOBAL N.V.




Kingdom of The Netherlands






World Trade Center, Amsterdam Airport


Tower B, 10th Floor


Schiphol Boulevard 217


1118 BH Amsterdam


The Netherlands




Securities registered pursuant to Section 12(b) of the
Act:


|                                   |  |                         
|---------------------------------- |  | ------------------------
|                                   |  | Name of Each Exchange on
|Title of Each Class                |  | which Registered        
|                                   |  |                         
|Common Shares, par value
    2.25 |  | New York Stock Exchange 

Securities registered pursuant to Section 12(g) of the
Act: None


Securities for which there is a reporting obligation pursuant
to Section 15(d) of the Act: None




o x


o x


x o






|                          |                     |                        
|------------------------- | ------------------- | -----------------------
|Large accelerated filer o | Accelerated filer x | Non-accelerated filer o

o x


12b-2 o x












---



##### 










TABLE OF CONTENTS


|                                                  |  |                                                                                  |     |      |     | 
|------------------------------------------------- |  | -------------------------------------------------------------------------------- | --- | ---- | --- | 
|                                                  |  |                                                                                  |     | Page |    
|                                                  |  |                                                                                  |     |      |    
|PART I                                           
|                                                 
|Item 1.                                           |  | Identity of Directors, Senior Management
    and Advisers                        |     |      | 5   | 
|Item 2.                                           |  | Offer Statistics and Expected Timetable                                          |     |      | 5   | 
|Item 3.                                           |  | Key Information                                                                  |     |      | 5   | 
|Item 4.                                           |  | Information on the Company                                                       |     |      | 20  | 
|Item 4A.                                          |  | Unresolved Staff Comments                                                        |     |      | 48  | 
|Item 5.                                           |  | Operating and Financial Review and
    Prospects                                 |     |      | 48  | 
|Item 6.                                           |  | Directors, Senior Management and
    Employees                                   |     |      | 85  | 
|Item 7.                                           |  | Major Shareholders and Related Party
    Transactions                            |     |      | 97  | 
|Item 8.                                           |  | Financial Information                                                            |     |      | 100 | 
|Item 9.                                           |  | The Offer and Listing                                                            |     |      | 101 | 
|Item 10.                                          |  | Additional Information                                                           |     |      | 102 | 
|Item 11.                                          |  | Quantitative and Qualitative Disclosures
    About Market Risk                   |     |      | 113 | 
|Item 12.                                          |  | Description of Securities Other than Equity
    Securities                       |     |      | 116 | 
|PART II                                          
|Item 13.                                          |  | Defaults, Dividend Arrearages and
    Delinquencies                              |     |      | 116 | 
|Item 14.                                          |  | Material Modifications to the Rights of
    Security Holders and Use of Proceeds |     |      | 116 | 
|Item 15.                                          |  | Controls and Procedures                                                          |     |      | 116 | 
|Item 16A.                                         |  | Audit Committee Financial Expert                                                 |     |      | 116 | 
|Item 16B.                                         |  | Code of Ethics                                                                   |     |      | 117 | 
|Item 16C.                                         |  | Principal Accountant Fees and Services                                           |     |      | 117 | 
|Item 16D.                                         |  | Exemptions from the Listing Standards for
    Audit Committees                   |     |      | 118 | 
|Item 16E.                                         |  | Purchase of Equity Securities by the Issuer
    and Affiliated Purchasers        |     |      | 118 | 
|PART III                                         
|Item 17.                                          |  | Financial Statements                                                             |     |      | 118 | 
|Item 18.                                          |  | Financial Statements                                                             |     |      | 119 | 
|Item 19.                                          |  | Exhibits                                                                         |     |      | 119 | 
|Index to Consolidated Financial
    Statements    |  |                                                                                  | F-1 |     
|Indenture                                        
|Amendment to Outside Directors' Compensation Plan
|2005 Form of Performance Unit Award Agreement    
|2005 Variable Pay Plan                           
|List of Subsidiaries                             
|Certification                                    
|Certification                                    
|Certification                                    
|Consent of Deloitte & Touche LLP                 



2



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##### Table of Contents



PRESENTATION OF FINANCIAL AND CERTAIN OTHER INFORMATION










03-06, 03-06). 03-06 03-06




3



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##### Table of Contents









| |   |                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | North America  United States and Canada.                                                                                                                                                                           
|
| |  | Western Europe  Austria, Belgium, Denmark,
    Finland, France, Germany, Greece, Iceland, Ireland, Italy,
    Luxembourg, The Netherlands, Norway, Portugal, Spain, Sweden,
    Switzerland and the United Kingdom.
|
| |  | Latin America  Mexico, Central and South
    America, and the Caribbean Islands.                                                                                                                                   
|
| |  | Rest of World  Those areas not included in
    North America, Western Europe and Latin America, as defined
    above.                                                                                              



*     *     *     *     *


4



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##### Table of Contents



PART I





Item 1. Identity of Directors, Senior Management
and Advisers







Item 2. Offer Statistics and Expected Timetable







Item 3. Key Information


A. Selected
Financial Data.






|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |       |       |       |   |       |       |       | 
|-------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------- | ------------------------------------ | ------ | ---- | ------ | - | ------ | ---- | ------ | - | ------ | ----- | ------ | ---- | ----- | ----- | ----- | - | ----- | ----- | ----- | 
|                                                                                             |                                                                                                            | For the Years Ended December 31,     |       
|                                                                                             |                                                                                                            |                                      |       
|                                                                                             |                                                                                                            | 2005                                 |        |      | 2004   |   |        | 2003 |        |   | 2002   |       |        | 2001 |      
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |      
|                                                                                             |                                                                                                            | (in millions, except per share data) |       
|Consolidated Statements of Operations Data:                                                  |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |       |       |       |   |       |      
|Revenues:                                                                                    |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |       |       |       |   |       |      
|Net sales                                                                                    |                                                                                                            | $                                    | 11,806 |      |        | $ | 11,545 |      |        | $ | 10,069 |       |        | $    | 9,331 |       |       | $ | 9,030 |      
|Finance and interest income                                                                  |                                                                                                            |                                      | 769    |      |        |   | 634    |      |        |   | 597    |       |        |      | 609   |       |       |   | 685   |      
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |      
|                                                                                             |                                                                                                            | Total revenues                       |        | $    | 12,575 |   |        | $    | 12,179 |   |        | $     | 10,666 |      |       | $     | 9,940 |   |       | $     | 9,715 | 
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |      
|Net income (loss) before cumulative effect of change in
    accounting principle, net of tax |                                                                                                            | $                                    | 163    |      |        | $ | 125    |      |        | $ | (157   | )     |        | $    | (101  | )     |       | $ | (332  | )    
|Cumulative effect of change in accounting principle, net of tax                              |                                                                                                            |                                      |       |      |        |   |       |      |        |   |       |       |        |      | (325  | )     |       |   |      |      
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |      
|Net income (loss)                                                                            |                                                                                                            | $                                    | 163    |      |        | $ | 125    |      |        | $ | (157   | )     |        | $    | (426  | )     |       | $ | (332  | )    
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |      
|Per share data:                                                                              |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |       |       |       |   |       |      
|                                                                                             | Basic earnings (loss) per share before cumulative effect of
    change in accounting principle, net of tax |                                      | $      | 0.77 |        |   | $      | 0.94 |        |   | $      | (1.19 | )      |      | $     | (1.05 | )     |   | $     | (6.00 | )    
|                                                                                             | Cumulative effect of change in accounting principle, net of tax                                            |                                      |        |     |        |   |        |     |        |   |        |      |        |      |       | (3.35 | )     |   |       |      |      
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |      
|                                                                                             | Basic earnings (loss) per share                                                                            |                                      | $      | 0.77 |        |   | $      | 0.94 |        |   | $      | (1.19 | )      |      | $     | (4.40 | )     |   | $     | (6.00 | )    
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |      
|                                                                                             | Diluted earnings (loss) per share before cumulative effect
    of change in accounting principle           |                                      | $      | 0.70 |        |   | $      | 0.54 |        |   | $      | (1.19 | )      |      | $     | (1.05 | )     |   | $     | (6.00 | )    
|                                                                                             | Cumulative effect of change in accounting principle, net of tax                                            |                                      |        |     |        |   |        |     |        |   |        |      |        |      |       | (3.35 | )     |   |       |      |      
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |      
|                                                                                             | Diluted earnings (loss) per share                                                                          |                                      | $      | 0.70 |        |   | $      | 0.54 |        |   | $      | (1.19 | )      |      | $     | (4.40 | )     |   | $     | (6.00 | )    
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |      
|Cash dividends declared per common share                                                     |                                                                                                            | $                                    | 0.25   |      |        | $ | 0.25   |      |        | $ | 0.25   |       |        | $    | 0.50  |       |       | $ | 0.50  |      
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |      |        |   |        |       |        |      |      

5



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|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |        |  |  |   |        | 
|-------------------------------------------- |  | ------------------ | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  |  | - | ------ | 
|                                             |  | As of December 31, |       
|                                             |  |                    |       
|                                             |  | 2005               |        |  | 2004 |   |        | 2003 |  |   | 2002   |  |  | 2001 |       
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|                                             |  | (in millions)      |       
|Consolidated Balance Sheet Data:             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |        |  |  |   |        | 
|Total assets                                 |  | $                  | 17,318 |  |      | $ | 18,080 |      |  | $ | 17,727 |  |  | $    | 16,760 |  |  | $ | 17,212 | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|Short-term debt                              |  | $                  | 1,522  |  |      | $ | 2,057  |      |  | $ | 2,110  |  |  | $    | 2,749  |  |  | $ | 3,217  | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|Long-term debt, including current maturities |  | $                  | 4,765  |  |      | $ | 4,906  |      |  | $ | 4,886  |  |  | $    | 5,115  |  |  | $ | 6,646  | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|Common shares, 2.25 par value               |  | $                  | 315    |  |      | $ | 312    |      |  | $ | 309    |  |  | $    | 305    |  |  | $ | 143    | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|Common shares outstanding                    |  |                    | 135    |  |      |   | 134    |      |  |   | 133    |  |  |      | 131    |  |  |   | 55     | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|Shareholders equity                         |  | $                  | 5,052  |  |      | $ | 5,029  |      |  | $ | 4,874  |  |  | $    | 2,761  |  |  | $ | 1,909  | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       



| |                                    
| | -----------------------------------
| | B. Capitalization and Indebtedness.





| |                                              
| | ---------------------------------------------
| | C. Reasons for the Offer and Use of Proceeds.





| |                 
| | ----------------
| | D. Risk Factors.

Risks Related to Our Business, Strategy and Operations




| |                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------
| | We may not fully realize, or realize within the
    anticipated time frame, the benefits of our profit improvement
    initiatives.



three-year




| |   |                                            
| | - | -------------------------------------------
| |  | recapture our brand heritage;              
|
| |  | strengthen our dealer and customer support;
|
| |  | refocus spare parts activities;            
|
| |  | improve quality and reliability;           
|
| |  | continue developing Financial Services; and
|
| |  | continue efforts to reduce costs.          



6



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| |                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------
| | Our success depends on the implementation of new product
    introductions, which will require substantial
    expenditures.









| |                                                                         
| | ------------------------------------------------------------------------
| | We depend on key suppliers for certain raw materials and
    components.

third-party






| |                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our unionized labor force and our contractual and legal
    obligations under collective bargaining agreements and labor
    laws could subject us to greater risks of work interruption or
    stoppage and impair our ability to achieve cost savings.







7



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| |                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------
| | An increase in health care or pension costs could
    adversely affect our results of operations and financial
    position.















8



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| |                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------
| | Future unanticipated events may require us to take
    additional reserves relating to our non-core financing
    activities.

Non-core write-offs.




| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to currency exchange rate fluctuations and
    interest rate changes, which could adversely affect our
    financial performance.









| |                                                                                                   
| | --------------------------------------------------------------------------------------------------
| | We are exposed to political, economic and other risks from
    operating a multinational business.



9



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Risks Particular to the Industries in Which We Operate




| |                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------
| | We operate in a highly cyclical industry, which could
    adversely affect our growth and results of operations.





| |   |                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------
| |  | the credit quality, availability and prevailing terms of credit
    for customers, including interest rates;
|
| |  | our access to credit;                                                                                       
|
| |  | adverse geopolitical, political and economic developments in our
    existing markets;                      
|
| |  | the effect of changes in laws and regulations;                                                              
|
| |  | the response of our competitors to adverse cyclical
    conditions; and                                     
|
| |  | dealer inventory management.                                                                                





| |                                
| | -------------------------------
| | Agricultural Equipment Industry



| |   |                                                                 
| | - | ----------------------------------------------------------------
| |  | changes in farm income and farmland value;                      
|
| |  | the level of worldwide farm output and demand for farm products;
|
| |  | commodity prices;                                               
|
| |  | government agricultural policies and subsidies;                 
|
| |  | animal diseases and crop pests;                                 
|
| |  | limits on agricultural imports; and                             
|
| |  | weather.                                                        



| |                                
| | -------------------------------
| | Construction Equipment Industry



| |   |                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------
| |  | prevailing levels of construction, especially housing starts,
    and levels of industrial production;
|
| |  | public spending on infrastructure;                                                                    
|
| |  | volatility of sales to rental companies;                                                              
|
| |  | real estate values; and                                                                               
|
| |  | consumer confidence.                                                                                  



| |                   
| | ------------------
| | Financial Services



| |   |                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | cyclical nature of the above-mentioned agricultural and
    construction equipment industries which are the primary markets
    for our financial services;
|
| |  | interest rates;                                                                                                                                            

10



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| |   |                                                                                     
| | - | ------------------------------------------------------------------------------------
| |  | general economic and capital market conditions;                                     
|
| |  | used equipment prices; and                                                          
|
| |  | availability of funding through the Asset Backed Securitization
    (ABS) markets.

un-utilized




| |                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------
| | Changes in governmental agricultural policy in the U.S.
    and Europe could adversely affect sales of agricultural
    equipment.








11



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| |                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Significant competition in the industries in which we
    operate may result in our competitors offering new or better
    products and services or lower prices, which could result in a
    loss of customers and a decrease in our revenues.















| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | Structural declines in the demand for agricultural or
    construction equipment could adversely affect our sales and
    results of operations.



12



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40-horsepower 1997-1998 100-horsepower


















13



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| |                                                                                                         
| | --------------------------------------------------------------------------------------------------------
| | An oversupply of used and rental equipment may adversely
    affect our sales and results of operations.

short-term






| |                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The agricultural equipment industry is highly seasonal,
    and seasonal fluctuations may cause our results of operations
    and working capital to fluctuate significantly from quarter to
    quarter.





14



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| |                                                                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to extensive environmental laws and
    regulations, and our costs related to compliance with, or our
    failure to comply with, existing or future laws and regulations
    could adversely affect our business, financial position and
    results of operations.





| |                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Delinquencies and collateral recovery rates experienced by
    Financial Services can be adversely impacted by a variety of
    factors, many of which are outside our control.



15



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| |                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------
| | An economic downturn may lead to a deterioration in our
    asset quality and adversely affect the earnings and cash flow of
    Financial Services.



Risks Related to Our Indebtedness




| |                                                                                 
| | --------------------------------------------------------------------------------
| | Our substantial indebtedness could adversely affect our
    financial condition.







| |   |                                                                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we may not be able to secure additional funds for working
    capital, capital expenditures, debt service requirements or
    general corporate purposes;                                                                                                                                                      
|
| |  | we will need to use a substantial portion of our projected
    future cash flow from operations to pay principal and interest
    on our debt, which will reduce the amount of funds available to
    us for other purposes;                                                                                   
|
| |  | we may be more highly leveraged than some of our primary
    competitors, which could put us at a competitive disadvantage;                                                                                                                                                                                    
|
| |  | we may not be able to adjust rapidly to changing market
    conditions, which may make us more vulnerable in the event of a
    downturn in general economic conditions or our business;                                                                                                                       
|
| |  | we may not be able to access the ABS markets on as favorable
    terms, which may adversely affect our ability to fund our
    Financial Services business and have an unfavorable impact on
    our results of operations; and                                                                                
|
| |  | we may not be able to access Brazilian government-sponsored
    subsidized funding schemes for our retail Financial Services
    customers in that country, which may adversely affect our
    ability to fund our Financial Services business and have an
    unfavorable impact on our results of operations.



| |                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Servicing our debt obligations requires a significant
    amount of cash, and our ability to generate cash depends on many
    factors that may be beyond our control.



16



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| |                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------
| | Restrictive covenants in our debt agreements could limit
    our financial and operating flexibility and subject us to other
    risks.

1 4 1 4




| |   |                                                                           
| | - | --------------------------------------------------------------------------
| |  | incur additional debt;                                                    
|
| |  | pay dividends on our capital stock or repurchase our capital
    stock;   
|
| |  | make certain investments;                                                 
|
| |  | enter into certain types of transactions with affiliates;                 
|
| |  | limit dividend or other payments by our restricted subsidiaries
    to us;
|
| |  | use assets as security in other transactions;                             
|
| |  | enter into sale and leaseback transactions; and                           
|
| |  | sell certain assets or merge with or into other companies.                






| |                                                                                                          
| | ---------------------------------------------------------------------------------------------------------
| | Credit downgrades of us and Fiat have affected our ability
    to borrow funds and may continue to do so.











17



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| |                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The performance of our Financial Services business is
    dependent on access to funding at competitive rates; we depend
    upon securitization programs to fund our Financial Services
    business.











| |                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The performance of our Financial Services business may be
    subject to volatility due to possible impairment charges
    relating to the valuation of
    interest-only
    securities.





18



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Risks Related to Our Relationship with Fiat




| |                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Fiat owns a significant majority of our capital stock and
    controls the outcome of any shareholder vote, and its interests
    may conflict with those of the other holders of our debt and
    equity securities.





| |   |                                          
| | - | -----------------------------------------
| |  | mergers or other business combinations;  
|
| |  | the acquisition or disposition of assets;
|
| |  | the incurrence of indebtedness; and      
|
| |  | the payment of dividends on our shares.  





| |                                                                                                 
| | ------------------------------------------------------------------------------------------------
| | Fiats ownership of our capital stock may create
    conflicts of interest between Fiat and CNH.





| |                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------
| | We are exposed to Fiat credit risk due to our
    participation in the Fiat affiliates cash management
    pools.





19



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| |                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In the event that Fiat does not provide us financial
    support and services, we would need to increasingly rely on
    other sources, the availability and cost of which cannot be
    assured.

  





Item 4. Information on the Company




| |                                           
| | ------------------------------------------
| | A. History and Development of the Company.

+(31)-20-46-0429). +(1)-847-955-3910).


20



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| |                      
| | ---------------------
| | B. Business Overview.

General












Case & New Holland Merger Integration  1999
through 2004




21



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Dual Brand Families Established:


New Common Components/ Platform Products Developed:


Manufacturing Processes Restructured and Manufacturing
Capacity Reduced:


Parts Distribution Network Consolidated:


Systems and Processes Integrated, Creating a Lean
Structure:


Financial Services Operations Refocused, Profitability
Restored:


22



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Industry Overview




| |                       
| | ----------------------
| | Agricultural Equipment







23



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




24



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|         |                                                                                                                                                                                                                                                                                                           
|-------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Sources: | North America  Association of Equipment
    Manufacturers; Canadian Farm and Industrial Equipment Institute.
    Western Europe  sourced from national government
    agencies within each market. Latin America 
    Management estimates based on data reported by ANFAVEA, AFAT and
    Systematics.





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26



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|         |                                                                                                                                                                                                                                                                                                                  
|-------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Sources: | North America  Association of Equipment
    Manufacturers; Canadian Farm and Industrial Equipment Institute.
    Western Europe  Management estimates based on
    information obtained from Systematics. Latin America 
    Management estimates based on date reported by ANFAVEA, AFAT and
    Systematics.









27



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| |                       
| | ----------------------
| | Construction Equipment











28



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|         |                                                                                                                                                                                                                                                                   
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Sources: | North America  Association of Equipment
    Manufacturers; Canadian Farm and Industrial Equipment Institute.
    Western Europe  Management estimates based on
    shipment data from CECE for Europe and national and local
    agencies in individual markets.





30



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##### Table of Contents



Our Competitive Strengths




Well-Recognized Brands.


Full Range of Competitive Products.


Strong Global Presence and Distribution Network.


Strong Financial Services Capabilities.


Strategic Support of the Fiat Group.


CNH Business Strategy




31



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| |   |                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | emphasize and focus on our customers and further improve our
    distribution and service capabilities and product quality and
    reliability, all designed to increase customer satisfaction and
    market penetration;
|
| |  | achieve higher margins than either Case or New Holland earned
    prior to the merger and deliver profitability throughout the
    industry cycles;                                                                       
|
| |  | generate cash to reduce our debt and strengthen our consolidated
    balance sheet; and                                                                                                                                   
|
| |  | continue to position CNH to take advantage of future
    opportunities for expansion.                                                                                                                                     





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Recapture our brand heritages:We are a full-line
    competitor in the agricultural and construction equipment
    markets, with a proud heritage that goes back through
    generations of our customer base. Our brands have survived by
    satisfying the needs of these customers. To sharpen our focus on
    satisfying customer needs, in the fourth quarter of 2005, we
    reorganized to concentrate on our four distinct global
    brandsCase IH and New Holland in agricultural equipment
    and Case and New Holland Construction in construction equipment.
    Each brand is now focused on maintaining their customer bases by
    more effectively providing the product features and
    requirements, quality and reliability, and service and support
    levels uniquely attributable to each brand. We believe that by
    recapturing this customer connection and increasing each
    customers satisfaction with their brand, we can stimulate
    sales growth, increase capacity utilization and improve the
    efficiency of invested capital.                                                                                                                                                                                                                                
|
| |  | Strengthen our customer and dealer support:We believe
    focused dealers are more dedicated to enhancing their
    brands market position, building customer service
    capabilities, increasing loyalty and earning a larger share of
    their customers equipment and service expenditures. In our
    competitive marketplace, our dealer network is one of the most
    important facets of the retail customer relationship. The
    quality and reliability of a local dealership is an important
    consideration in a retail customers decision to purchase
    one brand of equipment compared with any other. Dealers that are
    stronger, more reliable and better equipped to service a retail
    customer have a greater opportunity to positively influence that
    customers purchase decision. As part of our enhanced brand
    focus, we are allocating new resources to assist our dealers in
    providing enhanced levels of service and reliability to the
    retail customer. We are dedicating additional sales and
    marketing personnel, materials, technical support and training
    to our dealers. We are also continuing to invest in our global
    supply chain systems to allow better visibility and reliability
    in delivery lead times for our equipment.
|
| |  | Refocus spare parts activities:Another key component of
    customer satisfaction is prompt parts availability to ensure
    best possible equipment performance. During critical periods of
    equipment usage, minimized downtime can be a major factor
    affecting customer satisfaction. When we reorganized to
    concentrate on brands, we also created a new activity focused on
    our worldwide parts business. This new organizations role
    is to more effectively satisfy our customers needs for parts.
    Combined with continuing investments to improve our depots and
    global parts system, we expect to provide improved parts
    availability and delivery reliability for our dealers and
    customers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Improve product quality and reliability:With an almost
    completely renewed product lineup since the merger, we are
    concentrating product development, management and manufacturing
    efforts to achieve best-in-class levels of product quality and
    reliability. As we introduce new engines and components to meet
    evolving environmental requirements, we are concentrating on
    increasing parts and component quality, reducing product
    complexity, facilitating product assembly and adjusting product
    content, features and controls to satisfy evolving and
    differentiated customer requirements. Our common platform
    efficiencies should facilitate accomplishing these actions while
    maintaining research and development costs at about 3% of net
    sales. Improved product quality and reliability and reduced
    product complexity should lead to reduced future warranty and
    repair costs. Providing products better                                                                                                                                                                                                                                                                                                                                

32



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | aligned with the needs of customers should allow us to more
    fully capitalize on market leadership positions and command
    better pricing levels.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Continue developing Financial Services:A strong
    Financial Services operation provides another lever for meeting
    customer requirements and tailoring offerings to better support
    customer needs. Our Financial Services operations are focused on
    supporting agricultural and construction equipment sales to our
    equipment dealers and retail customers. We have separated our
    marketing efforts into dedicated, specialized agricultural and
    construction equipment teams to respond quickly with
    specifically tailored financing solutions, including operating
    leases, rental, credit cards, commercial lending and insurance,
    to capture a larger share of our customers financing
    requirements. We are continuing to emphasize underwriting
    processes and remarketing efforts, to maintain the quality of
    our receivables and our access to ABS funding. In addition, we
    have opportunities to take proven products and business
    practices developed for the North American market and adapt them
    for use in Western Europe, Australia and Brazil. We are
    upgrading our operations in Western Europe in anticipation of
    developing additional financing opportunities. In particular, we
    are extending the North American business model of centralizing
    dealer receivables management in Financial Services, with the
    goal of ensuring better financial control and optimizing funding.
|
| |  | Continue efforts to reduce costs:With the completion of
    merger integration activities, our efforts now address
    eliminating excess costs in our systems, processes and flows of
    our production and distribution systems. Our goals for cost
    reductions include:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    



| |   |                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | product cost reductions through design cost engineering and
    appropriate product simplification;                                                                                                                                                                                                             
|
| |  | manufacturing efficiencies and eliminating non-value added
    activities and excess inventories;                                                                                                                                                                                                               
|
| |  | finding lower cost sources for purchased parts and components,
    continuing re-sourcing activities in lower cost countries
    (including those where we already have a manufacturing presence
    and are working with local suppliers to develop their
    capabilities for supplying us on a global basis);
|
| |  | achieving freight and logistics savings through distribution
    process improvements and eliminating penalties from inefficient
    flows or processes;                                                                                                                                                        
|
| |  | minimizing excess capital employed in the business;                                                                                                                                                                                                                                                             
|
| |  | making more efficient capital expenditures; and                                                                                                                                                                                                                                                                 
|
| |  | continuing to reduce overhead costs.                                                                                                                                                                                                                                                                            



Competition




33



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##### Table of Contents









Products and Markets


Agricultural
Equipment




® ®


Tractors


Combine Harvesters




34



---



##### Table of Contents



Other Key Product Lines


Parts Support


Construction
Equipment






Heavy
Construction Equipment


Crawler Excavators


Wheeled Excavators


Wheel Loaders


Other Key Product Lines


Parts Support


Light
Construction Equipment


Backhoe Loaders


35



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##### Table of Contents





Skid Steer Loaders


Mini and Midi Excavators


Other Key Products


Parts Support


New
Products and Markets


best-in






Suppliers




36



---



##### Table of Contents







Distribution and Sales














37



---



##### Table of Contents















Pricing and Promotion




38



---



##### Table of Contents





Parts and Services
















Service and Warranty




39



---



##### Table of Contents







Seasonality and Production Schedules




Financial Services




| |         
| | --------
| | Overview







40



---



##### Table of Contents







| |                   
| | ------------------
| | Finance Operations













41



---



##### Table of Contents











| |                             
| | ----------------------------
| | Asset-Backed Securitizations



Insurance




Legal Proceedings




42



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##### Table of Contents







| |                  
| | -----------------
| | Product Liability



Other
Litigation and Proceedings


Yolton,
et. al v. El Paso Tennessee Pipeline Co., and Case
Corporation a/k/a/ Case Power Equipment Corporation, Docket
number 02-74276 pre-July


In re: Walterman
Implement, Inc. 05-07284,


43



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##### Table of Contents







In the Matter of Certain Participants in the Oil for Food
Program.


44



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##### Table of Contents







| |                             
| | ----------------------------
| | C. Organizational Structure.







20-F.




| |                                   
| | ----------------------------------
| | D. Property, Plants and Equipment.





|                 |  |                                     |  |               |     |  |                  |  |        |   
|---------------- |  | ----------------------------------- |  | ------------- | --- |  | ---------------- |  | ------ | --
|                 |  |                                     |  | Approximate   |     |  |                 
|Location         |  | Primary Functions                   |  | Covered Area* |     |  | Ownership Status | 
|                 |  |                                     |  |               |     |  |                  | 
|United States    |  |                                     |  |               |     |  |                  |  |        |   
|Belleville, PA   |  | Hay and Forage                      |  |               | 540 |  |                  |  | Owned  |   
|Benson, MN       |  | Agricultural Sprayers               |  |               | 200 |  |                  |  | Owned  |   
|Burlington, IA   |  | Backhoe Loaders; Fork Lift Trucks   |  |               | 958 |  |                  |  | Owned  |   
|Burr Ridge, IL   |  | Technology (Engineering) Center     |  |               | 468 |  |                  |  | Owned  |   
|Calhoun, GA      |  | Crawler Excavators and Dozers       |  |               | 267 |  |                  |  | Owned  | **
|Dublin, GA       |  | Compact Tractors                    |  |               | 65  |  |                  |  | Owned  |   
|Fargo, ND        |  | Tractors; Wheel Loaders             |  |               | 633 |  |                  |  | Owned  |   
|Goodfield, IL    |  | Soil Management (Tillage Equipment) |  |               | 233 |  |                  |  | Owned  |   
|Grand Island, NE |  | Combine Harvesters                  |  |               | 680 |  |                  |  | Owned  |   
|Lake Forest, IL  |  | Global Management Offices           |  |               | 65  |  |                  |  | Leased |   

45



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|                           |  |                                                                         |  |               |       |  |                  |  |              |   
|-------------------------- |  | ----------------------------------------------------------------------- |  | ------------- | ----- |  | ---------------- |  | ------------ | --
|                           |  |                                                                         |  | Approximate   |       |  |                 
|Location                   |  | Primary Functions                                                       |  | Covered Area* |       |  | Ownership Status | 
|                           |  |                                                                         |  |               |       |  |                  | 
|New Holland, PA            |  | Administrative Facilities; Hay and Forage; Engineering Center           |  |               | 1,190 |  |                  |  | Owned        |   
|Racine, WI                 |  | Administrative Facilities; Tractor Assembly; Transmissions              |  |               | 1,115 |  |                  |  | Owned/Leased |   
|Wichita, KS                |  | Skid Steer Loaders                                                      |  |               | 399   |  |                  |  | Owned        |   
|Italy                      |  |                                                                         |  |               |       |  |                  |  |              |   
|Imola                      |  | Backhoe Loaders; Engineering Center                                     |  |               | 384   |  |                  |  | Owned        |   
|Jesi                       |  | Tractors                                                                |  |               | 645   |  |                  |  | Owned        |   
|Lecce                      |  | Construction Equipment; Engineering Center                              |  |               | 1,400 |  |                  |  | Owned        |   
|Modena                     |  | Components                                                              |  |               | 1,150 |  |                  |  | Owned        |   
|San Matteo                 |  | Engineering Center                                                      |  |               | 540   |  |                  |  | Owned        |   
|San Mauro                  |  | Crawler Excavators                                                      |  |               | 614   |  |                  |  | Owned        | **
|France                     |  |                                                                         |  |               |       |  |                  |  |              |   
|Coex                       |  | Grape Harvesters; Engineering Center                                    |  |               | 280   |  |                  |  | Owned        |   
|Croix                      |  | Cabs                                                                    |  |               | 565   |  |                  |  | Owned        |   
|United Kingdom             |  |                                                                         |  |               |       |  |                  |  |              |   
|Basildon                   |  | Tractors; Components; Engineering Center; Administrative
    Facilities |  |               | 1,390 |  |                  |  | Owned        |   
|Germany                    |  |                                                                         |  |               |       |  |                  |  |              |   
|Berlin                     |  | Construction Equipment; Engineering Center                              |  |               | 1,113 |  |                  |  | Leased       |   
|Heidelberg                 |  | Administrative and Warehouse Facilities                                 |  |               | 173   |  |                  |  | Owned        |   
|Brazil                     |  |                                                                         |  |               |       |  |                  |  |              |   
|Belo Horizonte             |  | Construction Equipment; Engineering Center                              |  |               | 505   |  |                  |  | Owned        |   
|Curitiba                   |  | Tractors; Combine Harvesters; Engineering Center                        |  |               | 113   |  |                  |  | Owned        |   
|Piracicaba                 |  | Sugar Cane Harvesters                                                   |  |               | 108   |  |                  |  | Owned        |   
|Canada                     |  |                                                                         |  |               |       |  |                  |  |              |   
|Saskatoon                  |  | Planting and Seeding Equipment; Components; Engineering Center          |  |               | 735   |  |                  |  | Owned        |   
|Belgium                    |  |                                                                         |  |               |       |  |                  |  |              |   
|Antwerp                    |  | Components                                                              |  |               | 850   |  |                  |  | Leased       |   
|Zedelgem                   |  | Combine Harvesters; Hay and Forage; Engineering Center                  |  |               | 1,623 |  |                  |  | Owned        |   
|Others                     |  |                                                                         |  |               |       |  |                  |  |              |   
|St. Valentin, Austria      |  | Tractors                                                                |  |               | 398   |  |                  |  | Leased       |   
|Shanghai, China            |  | Tractors                                                                |  |               | 775   |  |                  |  | Leased       | **
|New Delhi, India           |  | Tractors; Engineering Center                                            |  |               | 352   |  |                  |  | Owned        |   
|Plock, Poland              |  | Combine Harvesters; Components                                          |  |               | 1,020 |  |                  |  | Owned        |   
|Queretaro, Mexico          |  | Components                                                              |  |               | 205   |  |                  |  | Leased       |   
|Amsterdam, The Netherlands |  | Administrative                                                          |  |               | 2     |  |                  |  | Leased       |   




|  |                            
|- | ---------------------------
|* | in thousands of square feet



|   |                           
|-- | --------------------------
|** | consolidated joint venture



46



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##### Table of Contents



Environmental Matters




non-U.S.




on-site


47



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##### Table of Contents














|         |                          
|-------- | -------------------------
|Item 4A. | Unresolved Staff Comments








|        |                                             
|------- | --------------------------------------------
|Item 5. | Operating and Financial Review and Prospects





| |                      
| | ---------------------
| | A. Operating Results.



| |                      
| | ---------------------
| | 2005 Compared to 2004



| |         
| | --------
| | Overview





48



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##### Table of Contents









| |         
| | --------
| | Revenues





| |                       
| | ----------------------
| | Net Sales of Equipment



|          |                |                 |   |       |        |  |   |       |        | 
|--------- | -------------- | --------------- | - | ----- | ------ |  | - | ----- | ------ | 
|          |                | 2005            |   |       | 2004   | 
|          |                |                 |   |       |        | 
|          |                | (in millions)   |  
|Net sales |                |                 |   |       |        |  |   |      
|          | North America  |                 | $ | 5,698 |        |  | $ | 5,241 |       
|          | Western Europe |                 |   | 3,643 |        |  |   | 3,834 |       
|          | Latin America  |                 |   | 768   |        |  |   | 913   |       
|          | Rest of World  |                 |   | 1,697 |        |  |   | 1,557 |       
|          |                |                 |   |       |        | 
|          |                | Total net sales |   | $     | 11,806 |  |   | $     | 11,545 | 
|          |                |                 |   |       |        | 





| |                       
| | ----------------------
| | Agricultural Equipment

|          |                |                 |   |       |       |  |   |       |       | 
|--------- | -------------- | --------------- | - | ----- | ----- |  | - | ----- | ----- | 
|          |                | 2005            |   |       | 2004  | 
|          |                |                 |   |       |       | 
|          |                | (in millions)   |  
|Net sales |                |                 |   |       |       |  |   |      
|          | North America  |                 | $ | 3,552 |       |  | $ | 3,383 |      
|          | Western Europe |                 |   | 2,517 |       |  |   | 2,681 |      
|          | Latin America  |                 |   | 455   |       |  |   | 715   |      
|          | Rest of World  |                 |   | 1,319 |       |  |   | 1,221 |      
|          |                |                 |   |       |       | 
|          |                | Total net sales |   | $     | 7,843 |  |   | $     | 8,000 | 
|          |                |                 |   |       |       | 



49



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##### Table of Contents













50



---



##### Table of Contents





| |                       
| | ----------------------
| | Construction Equipment

|          |                |                 |   |       |       |  |   |       |       | 
|--------- | -------------- | --------------- | - | ----- | ----- |  | - | ----- | ----- | 
|          |                | 2005            |   |       | 2004  | 
|          |                |                 |   |       |       | 
|          |                | (in millions)   |  
|Net sales |                |                 |   |       |       |  |   |      
|          | North America  |                 | $ | 2,146 |       |  | $ | 1,858 |      
|          | Western Europe |                 |   | 1,126 |       |  |   | 1,153 |      
|          | Latin America  |                 |   | 313   |       |  |   | 198   |      
|          | Rest of World  |                 |   | 378   |       |  |   | 336   |      
|          |                |                 |   |       |       | 
|          |                | Total net sales |   | $     | 3,963 |  |   | $     | 3,545 | 
|          |                |                 |   |       |       | 









51



---



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| |                            
| | ---------------------------
| | Finance and Interest Income





| |                   
| | ------------------
| | Costs and Expenses







52



---



##### Table of Contents





|                              |  |               |      |  |      |   |      |      |  |   |      | 
|----------------------------- |  | ------------- | ---- |  | ---- | - | ---- | ---- |  | - | ---- | 
|                              |  | 2005          |      |  | 2004 |   |      | 2003 | 
|                              |  |               |      |  |      |   |      |      | 
|                              |  | (in millions) |     
|Non-core portfolio            |  | $             | 78   |  |      | $ | 131  |      |  | $ | 330  | 
|                              |  |               |      |  |      |   |      |      | 
|Percentage of total portfolio |  |               | 0.6% |  |      |   | 1.0% |      |  |   | 2.7% | 
|                              |  |               |      |  |      |   |      |      | 
|Delinquency percentage(1)     |  |               | 28%  |  |      |   | 27%  |      |  |   | 29%  | 
|                              |  |               |      |  |      |   |      |      | 
|Annual loss percentage(2)     |  |               | 1%   |  |      |   | 4%   |      |  |   | 15%  | 
|                              |  |               |      |  |      |   |      |      | 
|Allowance for credit losses   |  | $             | 34   |  |      | $ | 50   |      |  | $ | 68   | 
|                              |  |               |      |  |      |   |      |      | 






|    |                                                                                                
|--- | -----------------------------------------------------------------------------------------------
|(1) | Calculated as the percentage of loans in the relevant portfolio
    more than 30 days past due.
|   
|(2) | Calculated as the ratio of the annual loss to the average
    portfolio for the year.          













53



---



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| |                         
| | ------------------------
| | Tax Rates  Consolidated





| |                                                                          
| | -------------------------------------------------------------------------
| | Equity In Income (Loss) of Unconsolidated Subsidiaries and
    Affiliates





| |           
| | ----------
| | Net Income





| |                               
| | ------------------------------
| | Effect of Currency Translation







54



---



##### Table of Contents







| |                      
| | ---------------------
| | 2004 Compared to 2003



| |         
| | --------
| | Overview











| |         
| | --------
| | Revenues





| |                       
| | ----------------------
| | Net Sales of Equipment



|          |                |                 |   |       |        |  |   |       |        | 
|--------- | -------------- | --------------- | - | ----- | ------ |  | - | ----- | ------ | 
|          |                | 2004            |   |       | 2003   | 
|          |                |                 |   |       |        | 
|          |                | (in millions)   |  
|Net sales |                |                 |   |       |        |  |   |      
|          | North America  |                 | $ | 5,241 |        |  | $ | 4,206 |       
|          | Western Europe |                 |   | 3,834 |        |  |   | 3,739 |       
|          | Latin America  |                 |   | 913   |        |  |   | 712   |       
|          | Rest of World  |                 |   | 1,557 |        |  |   | 1,412 |       
|          |                |                 |   |       |        | 
|          |                | Total net sales |   | $     | 11,545 |  |   | $     | 10,069 | 
|          |                |                 |   |       |        | 

55



---



##### Table of Contents







| |                       
| | ----------------------
| | Agricultural Equipment

|          |                |                 |   |       |       |  |   |       |       | 
|--------- | -------------- | --------------- | - | ----- | ----- |  | - | ----- | ----- | 
|          |                | 2004            |   |       | 2003  | 
|          |                |                 |   |       |       | 
|          |                | (in millions)   |  
|Net sales |                |                 |   |       |       |  |   |      
|          | North America  |                 | $ | 3,383 |       |  | $ | 2,893 |      
|          | Western Europe |                 |   | 2,681 |       |  |   | 2,543 |      
|          | Latin America  |                 |   | 715   |       |  |   | 579   |      
|          | Rest of World  |                 |   | 1,221 |       |  |   | 1,110 |      
|          |                |                 |   |       |       | 
|          |                | Total net sales |   | $     | 8,000 |  |   | $     | 7,125 | 
|          |                |                 |   |       |       | 











56



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##### Table of Contents









| |                       
| | ----------------------
| | Construction Equipment

|          |                |                 |   |       |       |  |   |       |       | 
|--------- | -------------- | --------------- | - | ----- | ----- |  | - | ----- | ----- | 
|          |                | 2004            |   |       | 2003  | 
|          |                |                 |   |       |       | 
|          |                | (in millions)   |  
|Net sales |                |                 |   |       |       |  |   |      
|          | North America  |                 | $ | 1,858 |       |  | $ | 1,313 |      
|          | Western Europe |                 |   | 1,153 |       |  |   | 1,196 |      
|          | Latin America  |                 |   | 198   |       |  |   | 133   |      
|          | Rest of World  |                 |   | 336   |       |  |   | 302   |      
|          |                |                 |   |       |       | 
|          |                | Total net sales |   | $     | 3,545 |  |   | $     | 2,944 | 
|          |                |                 |   |       |       | 









57



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| |                            
| | ---------------------------
| | Finance and Interest Income





| |                   
| | ------------------
| | Costs and Expenses









58



---



##### Table of Contents





|                              |  |               |      |  |      |   |      |      |  |   |      | 
|----------------------------- |  | ------------- | ---- |  | ---- | - | ---- | ---- |  | - | ---- | 
|                              |  | 2004          |      |  | 2003 |   |      | 2002 | 
|                              |  |               |      |  |      |   |      |      | 
|                              |  | (in millions) |     
|Non-core portfolio            |  | $             | 131  |  |      | $ | 330  |      |  | $ | 570  | 
|                              |  |               |      |  |      |   |      |      | 
|Percentage of total portfolio |  |               | 1.0% |  |      |   | 2.7% |      |  |   | 4.5% | 
|                              |  |               |      |  |      |   |      |      | 
|Delinquency percentage(1)     |  |               | 27%  |  |      |   | 29%  |      |  |   | 28%  | 
|                              |  |               |      |  |      |   |      |      | 
|Annual loss percentage(2)     |  |               | 4%   |  |      |   | 15%  |      |  |   | 9%   | 
|                              |  |               |      |  |      |   |      |      | 
|Allowance for credit losses   |  | $             | 50   |  |      | $ | 68   |      |  | $ | 63   | 
|                              |  |               |      |  |      |   |      |      | 




|    |                                                                                                
|--- | -----------------------------------------------------------------------------------------------
|(1) | Calculated as the percentage of loans in the relevant portfolio
    more than 30 days past due.
|   
|(2) | Calculated as the ratio of the annual loss to the average
    portfolio for the year.          















59



---



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| |                         
| | ------------------------
| | Tax Rates  Consolidated





| |                                                                          
| | -------------------------------------------------------------------------
| | Equity In Income (Loss) of Unconsolidated Subsidiaries and
    Affiliates





| |           
| | ----------
| | Net Income





| |                               
| | ------------------------------
| | Effect of Currency Translation







Application of Critical Accounting Estimates




60



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| |                            
| | ---------------------------
| | Allowance for Credit Losses









| |                                             
| | --------------------------------------------
| | Equipment on Operating Lease Residual Values









| |                            
| | ---------------------------
| | Off-Balance Sheet Financing



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|                             |  |                  |       |               |        |   |     |        |  |   |      | 
|---------------------------- |  | ---------------- | ----- | ------------- | ------ | - | --- | ------ |  | - | ---- | 
|                             |  | Weighted Average |       |               | 10%    |   |     | 20%    | 
|                             |  | Assumptions      |       |               | Change |   |     | Change | 
|                             |  |                  |       |               |        |   |     |        | 
|                             |  |                  |       | (in millions) |       
|Constant prepayment rate     |  |                  | 15.82 | %             |        | $ | 1.0 |        |  | $ | 1.2  | 
|Expected credit loss rate    |  |                  | 0.70  | %             |        | $ | 5.3 |        |  | $ | 10.5 | 
|Discount rate                |  |                  | 10.68 | %             |        | $ | 6.9 |        |  | $ | 13.0 | 
|Remaining maturity in months |  |                  | 17    |               |        |   |     |        |  |   |      | 





| |                                    
| | -----------------------------------
| | Recoverability of Long-lived Assets









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| |                                   
| | ----------------------------------
| | Realization of Deferred Tax Assets









| |                 
| | ----------------
| | Sales Allowances









| |                             
| | ----------------------------
| | Warranty Costs and Campaigns

post-production




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| |                                                          
| | ---------------------------------------------------------
| | Defined Benefit Pension and Other Postretirement Benefits





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|                                  |                                                            |                   |   |       |                             |  |   |                 |   |  |                 |        |   |  |   |        |  
|--------------------------------- | ---------------------------------------------------------- | ----------------- | - | ----- | --------------------------- |  | - | --------------- | - |  | --------------- | ------ | - |  | - | ------ | -
|                                  |                                                            | 2005 Benefit Cost |   |       | Year End Benefit Obligation | 
|                                  |                                                            | (income)/expense  |   |       | increase/(decrease)         | 
|                                  |                                                            |                   |   |       |                             | 
|                                  |                                                            | One Percentage-   |   |       | One Percentage-             |  |   | One Percentage- |   |  | One Percentage- |       
|                                  |                                                            | Point Increase    |   |       | Point Decrease              |  |   | Point Increase  |   |  | Point Decrease  |       
|                                  |                                                            |                   |   |       |                             |  |   |                 |   |  |                 |       
|                                  |                                                            | (in millions)     |  
|Pension benefits  U.S.:          |                                                            |                   |   |       |                             |  |   |                 |   |  |                 |        |   |  |   |       
|                                  | Assumed discount rate                                      |                   | $ | (8.5  | )                           |  | $ | 8.3             |   |  | $               | (117.2 | ) |  | $ | 130.6  |  
|                                  | Expected long-term rate of return on plan assets           |                   |   | (7.6  | )                           |  |   | 7.6             |   |  |                 | N/A    |   |  |   | N/A    |  
|Pension benefits  International: |                                                            |                   |   |       |                             |  |   |                 |   |  |                 |        |   |  |   |       
|                                  | Assumed discount rate                                      |                   |   | (7.7  | )                           |  |   | 10.1            |   |  |                 | (216.9 | ) |  |   | 251.0  |  
|                                  | Expected rate of compensation increase                     |                   |   | 10.8  |                             |  |   | (7.7            | ) |  |                 | 57.1   |   |  |   | (51.4  | )
|                                  | Expected long-term rate of return on plan assets           |                   |   | (9.4  | )                           |  |   | 9.4             |   |  |                 | N/A    |   |  |   | N/A    |  
|Other postretirement benefits:    |                                                            |                   |   |       |                             |  |   |                 |   |  |                 |        |   |  |   |       
|                                  | Assumed discount rate                                      |                   |   | (17.9 | )                           |  |   | 19.5            |   |  |                 | (173.3 | ) |  |   | 194.5  |  
|                                  | Assumed health care cost trend rate (initial and ultimate) |                   |   | 31.5  |                             |  |   | (25.9           | ) |  |                 | 196.1  |   |  |   | (153.3 | )

th th




non-U.S.






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New Accounting Pronouncements












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| |                                    
| | -----------------------------------
| | B. Liquidity and Capital Resources.



1 4






| |                  
| | -----------------
| | Consolidated Debt



|                                            |            |               |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |   |       |       |  |   |       |       | 
|------------------------------------------- | ---------- | ------------- | ----- | ----- | -------------------- | - | ----- | ------------------ |  | - | ----- | ----- |  | ---- | ----- | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|                                            |            | Consolidated  |       |       | Equipment Operations |   |       | Financial Services | 
|                                            |            |               |       |       |                      |   |       |                    | 
|                                            |            | 2005          |       |       | 2004                 |   |       | 2005               |  |   | 2004  |       |  | 2005 |       |       | 2004 |  
|                                            |            |               |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|                                            |            | (in millions) |      
|Long-term debt excluding current maturities |            | $             | 3,706 |       |                      | $ | 4,020 |                    |  | $ | 2,011 |       |  | $    | 2,827 |       |      | $ | 1,695 |       |  | $ | 1,893 |      
|Current maturities of long-term debt        |            |               | 1,059 |       |                      |   | 886   |                    |  |   | 385   |       |  |      | 257   |       |      |   | 674   |       |  |   | 629   |      
|Short-term debt                             |            |               | 1,522 |       |                      |   | 2,057 |                    |  |   | 826   |       |  |      | 1,088 |       |      |   | 1,763 |       |  |   | 1,407 |      
|                                            |            |               |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|                                            | Total debt |               | $     | 6,287 |                      |   | $     | 6,963              |  |   | $     | 3,222 |  |      | $     | 4,172 |      |   | $     | 4,132 |  |   | $     | 3,929 | 
|                                            |            |               |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  





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|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |   |        |     |  |   |       |     | 
|------------------------------ | ------------------------------ | --------------------------------- | ----- | ----- | -------------------- | - | ----- | ------------------ |  | - | ----- | ----- |  | ---- | ----- | ----- | ---- | - | ------ | --- |  | - | ----- | --- | 
|                               |                                | Consolidated                      |       |       | Equipment Operations |   |       | Financial Services | 
|                               |                                |                                   |       |       |                      |   |       |                    | 
|                               |                                | 2005                              |       |       | 2004                 |   |       | 2005               |  |   | 2004  |       |  | 2005 |       |       | 2004 |  
|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|                               |                                | (in millions, except percentages) |      
|Total debt                     |                                | $                                 | 6,287 |       |                      | $ | 6,963 |                    |  | $ | 3,222 |       |  | $    | 4,172 |       |      | $ | 4,132  |     |  | $ | 3,929 |    
|Less:                          |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |   |        |     |  |   |       |    
|                               | Cash and cash equivalents      |                                   |       | 1,245 |                      |   |       | 931                |  |   |       | 858   |  |      |       | 637   |      |   |        | 387 |  |   |       | 294 | 
|                               | Deposits with Fiat             |                                   |       | 580   |                      |   |       | 1,151              |  |   |       | 578   |  |      |       | 1,136 |      |   |        | 2   |  |   |       | 15  | 
|                               | Intersegment notes receivables |                                   |       |      |                      |   |       |                   |  |   |       | 1,067 |  |      |       | 1,114 |      |   |        |    |  |   |       | 24  | 
|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|Net debt                       |                                |                                   | 4,462 |       |                      |   | 4,881 |                    |  |   | 719   |       |  |      | 1,285 |       |      |   | 3,743  |     |  |   | 3,596 |    
|Total shareholders equity     |                                |                                   | 5,052 |       |                      |   | 5,029 |                    |  |   | 5,052 |       |  |      | 5,029 |       |      |   | 1,587  |     |  |   | 1,419 |    
|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|Net capitalization             |                                | $                                 | 9,514 |       |                      | $ | 9,910 |                    |  | $ | 5,771 |       |  | $    | 6,314 |       |      | $ | $5,330 |     |  | $ | 5,015 |    
|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|Net debt to net capitalization |                                |                                   | 47%   |       |                      |   | 49%   |                    |  |   | 12%   |       |  |      | 20%   |       |      |   | 70%    |     |  |   | 72%   |    
|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  



|                                   |  |                                   |        |  |                      |   |        |                    |  |   |       |  |  |      |       |  |      |   |       |  |  |   |       | 
|---------------------------------- |  | --------------------------------- | ------ |  | -------------------- | - | ------ | ------------------ |  | - | ----- |  |  | ---- | ----- |  | ---- | - | ----- |  |  | - | ----- | 
|                                   |  | Consolidated                      |        |  | Equipment Operations |   |        | Financial Services | 
|                                   |  |                                   |        |  |                      |   |        |                    | 
|                                   |  | 2005                              |        |  | 2004                 |   |        | 2005               |  |   | 2004  |  |  | 2005 |       |  | 2004 |  
|                                   |  |                                   |        |  |                      |   |        |                    |  |   |       |  |  |      |       |  |      |  
|                                   |  | (in millions, except percentages) |       
|Total debt                         |  | $                                 | 6,287  |  |                      | $ | 6,963  |                    |  | $ | 3,222 |  |  | $    | 4,172 |  |      | $ | 4,132 |  |  | $ | 3,929 | 
|Total shareholders equity         |  |                                   | 5,052  |  |                      |   | 5,029  |                    |  |   | 5,052 |  |  |      | 5,029 |  |      |   | 1,587 |  |  |   | 1,419 | 
|                                   |  |                                   |        |  |                      |   |        |                    |  |   |       |  |  |      |       |  |      |  
|Total capitalization               |  | $                                 | 11,339 |  |                      | $ | 11,992 |                    |  | $ | 8,274 |  |  | $    | 9,201 |  |      | $ | 5,719 |  |  | $ | 5,348 | 
|                                   |  |                                   |        |  |                      |   |        |                    |  |   |       |  |  |      |       |  |      |  
|Total debt to total capitalization |  |                                   | 55%    |  |                      |   | 58%    |                    |  |   | 39%   |  |  |      | 45%   |  |      |   | 72%   |  |  |   | 73%   | 
|                                   |  |                                   |        |  |                      |   |        |                    |  |   |       |  |  |      |       |  |      |  







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Cash Flows






| |                                     
| | ------------------------------------
| | Cash Flows from Operating Activities

|                     |  |                     |      |   |      |   |      |      |  |   |     |  
|-------------------- |  | ------------------- | ---- | - | ---- | - | ---- | ---- |  | - | --- | -
|                     |  | For the Years Ended |     
|                     |  | December 31,        |     
|                     |  |                     |     
|                     |  | 2005                |      |   | 2004 |   |      | 2003 | 
|                     |  |                     |      |   |      |   |      |      | 
|                     |  | (in millions)       |     
|Equipment Operations |  | $                   | 849  |   |      | $ | 879  |      |  | $ | 66  |  
|Financial Services   |  |                     | (240 | ) |      |   | 200  |      |  |   | 752 |  
|Eliminations         |  |                     | (60  | ) |      |   | (109 | )    |  |   | (22 | )
|                     |  |                     |      |   |      |   |      |      | 
|Consolidated         |  | $                   | 549  |   |      | $ | 970  |      |  | $ | 796 |  
|                     |  |                     |      |   |      |   |      |      | 













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| |                                     
| | ------------------------------------
| | Cash Flows from Investing Activities

|                     |  |                     |     |  |      |   |      |      |  |   |        |  
|-------------------- |  | ------------------- | --- |  | ---- | - | ---- | ---- |  | - | ------ | -
|                     |  | For the Years Ended |    
|                     |  | December 31,        |    
|                     |  |                     |    
|                     |  | 2005                |     |  | 2004 |   |      | 2003 | 
|                     |  |                     |     |  |      |   |      |      | 
|                     |  | (in millions)       |    
|Equipment Operations |  | $                   | 331 |  |      | $ | 22   |      |  | $ | (1,136 | )
|Financial Services   |  |                     | 172 |  |      |   | (503 | )    |  |   | 102    |  
|Eliminations         |  |                     | 13  |  |      |   | 85   |      |  |   | 54     |  
|                     |  |                     |     |  |      |   |      |      | 
|Consolidated         |  | $                   | 516 |  |      | $ | (396 | )    |  | $ | (980   | )
|                     |  |                     |     |  |      |   |      |      | 















| |                                     
| | ------------------------------------
| | Cash Flows from Financing Activities

|                     |  |                     |      |   |      |   |      |      |  |   |       |  
|-------------------- |  | ------------------- | ---- | - | ---- | - | ---- | ---- |  | - | ----- | -
|                     |  | For the Years Ended |     
|                     |  | December 31,        |     
|                     |  |                     |     
|                     |  | 2005                |      |   | 2004 |   |      | 2003 | 
|                     |  |                     |      |   |      |   |      |      | 
|                     |  | (in millions)       |     
|Equipment Operations |  | $                   | (952 | ) |      | $ | (754 | )    |  | $ | 1,403 |  
|Financial Services   |  |                     | 132  |   |      |   | 453  |      |  |   | (833  | )
|Eliminations         |  |                     | 47   |   |      |   | 24   |      |  |   | (32   | )
|                     |  |                     |      |   |      |   |      |      | 
|Consolidated         |  | $                   | (773 | ) |      | $ | (277 | )    |  | $ | 538   |  
|                     |  |                     |      |   |      |   |      |      | 





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Credit Ratings










| |   |                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On February 22, 2006, in connection with Case New Holland,
    Inc.s announced 7.125% Senior Notes offering,
    Moodys reaffirmed their Ba3 rating of CNHs long-term
    senior unsecured debt, with a negative outlook.                                                                        
|
| |  | On February 22, 2006, in connection with Case New Holland,
    Inc.s announced 7.125% Senior Notes offering, DBRS
    reaffirmed their BB High rating of CNHs long-term senior
    unsecured debt, with a stable trend.                                                                           
|
| |  | On February 21, 2006, in connection with Case New Holland,
    Inc.s announced 7.125% Senior Notes offering, S&P
    reaffirmed its BB- rating of CNHs long-term senior
    unsecured debt, with a stable outlook.                                                                                
|
| |  | On January 30, 2006, Moodys affirmed the stand alone
    long-term senior unsecured debt rating of CNH of Ba3 and
    negative outlook. Moodys also affirmed Fiats Ba3
    corporate family rating and long-term senior unsecured debt
    rating, upgrading the outlook to stable from negative.
|
| |  | On January 20, 2006, Fitch affirmed Fiats BB-
    long-term senior unsecured debt rating and upgraded its outlook
    to stable from negative.                                                                                                                                                     

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| |   |                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On November 8, 2005 DBRS assigned an issuer rating of BB to
    Fiat, with a stable trend.                                                            
|
| |  | On August 1, 2005, S&P affirmed Fiats and
    CNHs BB- corporate credit ratings and revised its rating
    outlook for each to stable from negative.





Sources of Funding




| |               
| | --------------
| | Funding Policy









| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | To fund Equipment Operations short-term financing requirements
    and to ensure near-term liquidity, we rely primarily on bank
    facilities. We also maintain a funding relationship with Fiat
    through the overdraft facilities granted to us under the cash
    pooling arrangements operated by Fiat in a number of
    jurisdictions. We manage our aggregate short-term borrowings so
    as not to exceed availability under our lines of credit with
    banks and Fiat.                                    
|
| |  | As funding needs of Equipment Operations are determined to be of
    a longer-term nature, we will access medium-and long-term debt
    markets, as appropriate, to refinance short-term borrowings and
    replenish our liquidity.                                                                                                                                                                                                                                                                                     
|
| |  | We maintain unutilized committed lines of credit and other
    liquidity facilities, complemented by available cash and cash
    equivalents and Deposits with Fiat, to cover our expected
    funding needs on both a short-term and long-term basis.                                                                                                                                                                                                                                                                   
|
| |  | The most significant source of liquidity for our Financial
    Services business is loan securitizations to finance the
    receivables we originate, including wholesale receivables
    purchased from Equipment Operations. We intend to continue to
    cultivate and expand our recourse to the ABS and ABCP markets
    worldwide, based on the acceptance of the performance and
    characteristics of our receivables, the performance of our
    existing securities and the continuing growth of such markets.
|
| |  | We complement our ABS funding strategy for Financial Services
    with access to bank facilities, both short- and long-term, to
    the capital markets and to Fiat funding via its cash pooling
    arrangements. In Brazil, Financial Services continues to utilize
    financing provided by the Brazilian development agencies to
    support the growth of the agricultural sector of the economy.                                                                                                                  

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| |   |                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------
| |  | Financial Services has relied in the past and continues to rely
    on intersegment notes from Equipment Operations.













| |               
| | --------------
| | Long-term debt







73



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| |                        
| | -----------------------
| | Certificates of deposit





| |                                
| | -------------------------------
| | Credit and liquidity facilities



74



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|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           |  |  |   |       |  |  |  |        | 
|-------------------------------------------------------------------------------------- |  | ------------- | -------------- |  | ------ | - | ----- | --------- |  |  | ---------- |  |  | -------- | --- |  | ----- | - | ----- | --------- |  | - | --------- |  |  | - | ----- |  |  |  | ------ | 
|                                                                                       |  |               |                |  |        |   |       | Drawn     |  |  |            |  | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  | 
|                                                                                       |  |               |                |  |        |   |       | Equipment |  |  | Financial  |  |  |          |     |  |       |  
|                                                                                       |  | Maturity      |                |  | Amount |   |       | Borrower* |  |  | Operations |  |  | Services |     |  | Total |   |       | Available |  |   | Guarantor | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|                                                                                       |  | (in millions) |               
|Committed lines:                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           |  |  |   |       |  |  |  |        | 
|CNH portion of Fiat revolving syndicated backup credit facility                        |  |               | Jul 08         |  |        | $ | 354   |           |  |  | EO         |  |  | $        |    |  |       | $ |      |           |  | $ |          |  |  | $ | 354   |  |  |  | Fiat   | 
|Credit facilities with third parties                                                   |  |               | Jun 07         |  |        |   | 150   |           |  |  | FS         |  |  |          |     |  |       |   | 150   |           |  |   | 150       |  |  |   |      |  |  |  | Fiat   | 
|Buyers credit Proex                                                                   |  |               | 2006-2010      |  |        |   | 129   |           |  |  | EO         |  |  |          | 129 |  |       |   |      |           |  |   | 129       |  |  |   |      |  |  |  | Fiat   | 
|CNH Capital Australia/Canada facility with UBS                                         |  |               | 2006           |  |        |   | 61    |           |  |  | FS         |  |  |          |    |  |       |   | 61    |           |  |   | 61        |  |  |   |      |  |  |  | Fiat   | 
|BNDES Subsidized Financing Brazil                                                      |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           |  |  |   |       |  |  |  |        | 
|2006                                                                                  |  |               | 2006           |  |        |   | 470   |           |  |  | FS         |  |  |          |    |  |       |   | 470   |           |  |   | 470       |  |  |   |      |  |  |  | Fiat** | 
|2007                                                                                  |  |               | 2007           |  |        |   | 337   |           |  |  | FS         |  |  |          |    |  |       |   | 337   |           |  |   | 337       |  |  |   |      |  |  |  | Fiat** | 
|2008 and Beyond                                                                       |  |               | 2008+          |  |        |   | 483   |           |  |  | FS         |  |  |          |    |  |       |   | 473   |           |  |   | 473       |  |  |   | 10    |  |  |  | Fiat** | 
|Revolving credit facility with Fiat affiliate                                          |  |               | Jan 2007       |  |        |   | 1,000 |           |  |  | Both       |  |  |          | 205 |  |       |   | 77    |           |  |   | 282       |  |  |   | 718   |  |  |  | Fiat   | 
|Various committed linesBrazil                                                         |  |               | Jan 06-Sept 07 |  |        |   | 165   |           |  |  | EO         |  |  |          | 165 |  |       |   |      |           |  |   | 165       |  |  |   |      |  |  |  |        | 
|Various committed lines Australia                                                     |  |               | Jan 06-Jul 06  |  |        |   | 58    |           |  |  | FS         |  |  |          |    |  |       |   | 51    |           |  |   | 51        |  |  |   | 7     |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Total committed lines                                                                  |  |               |                |  |        |   | 3,207 |           |  |  |            |  |  |          | 499 |  |       |   | 1,619 |           |  |   | 2,118     |  |  |   | 1,089 |  |  |  |        | 
|Uncommitted Lines                                                                      |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           |  |  |   |       |  |  |  |        | 
|Portion of Fiat revolving syndicated backup credit facility
    shared with Fiat subs. |  |               | Jul 08         |  |        |   | 826   |           |  |  | EO         |  |  |          |    |  |       |   |      |           |  |   |          |  |  |   | 826   |  |  |  |        | 
|Factoring lines                                                                        |  |               | Jan 06         |  |        |   | 185   |           |  |  | EO         |  |  |          | 185 |  |       |   |      |           |  |   | 185       |  |  |   |      |  |  |  |        | 
|Factoring lines                                                                        |  |               | Jan 06         |  |        |   | 50    |           |  |  | FS         |  |  |          |    |  |       |   |      |           |  |   |          |  |  |   | 50    |  |  |  |        | 
|Other                                                                                  |  |               | Jan 06         |  |        |   | 8     |           |  |  | EO         |  |  |          |    |  |       |   |      |           |  |   |          |  |  |   | 8     |  |  |  |        | 
|Asset-backed Programs                                                                  |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           |  |  |   |       |  |  |  |        | 
|United States                                                                         |  |               | Jan 06         |  |        |   | 1,200 |           |  |  | FS         |  |  |          |    |  |       |   | 157   |           |  |   | 157       |  |  |   | 1,043 |  |  |  |        | 
|United States (Credit Cards)                                                          |  |               | Jun 07         |  |        |   | 250   |           |  |  | FS         |  |  |          |    |  |       |   | 129   |           |  |   | 129       |  |  |   | 121   |  |  |  |        | 
|Canada                                                                                |  |               | Aug 06         |  |        |   | 257   |           |  |  | FS         |  |  |          |    |  |       |   | 26    |           |  |   | 26        |  |  |   | 231   |  |  |  |        | 
|Australia                                                                             |  |               | Apr 06         |  |        |   | 293   |           |  |  | FS         |  |  |          |    |  |       |   | 206   |           |  |   | 206       |  |  |   | 87    |  |  |  |        | 
|ABS Retained Assets financing                                                         |  |               | Dec 08         |  |        |   | 300   |           |  |  | FS         |  |  |          |    |  |       |   | 247   |           |  |   | 247       |  |  |   | 53    |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Total uncommitted lines and ABCP                                                       |  |               |                |  |        |   | 3,369 |           |  |  |            |  |  |          | 185 |  |       |   | 765   |           |  |   | 950       |  |  |   | 2,419 |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Total credit facilities                                                                |  |               |                |  |        | $ | 6,576 |           |  |  |            |  |  | $        | 684 |  |       | $ | 2,384 |           |  | $ | 3,068     |  |  | $ | 3,508 |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Drawn short-term debt                                                                  |  |               |                |  |        |   |       |           |  |  |            |  |  | $        | 495 |  |       | $ | 579   |           |  | $ | 1,074     |  |  |   |       |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Drawn long-term debt                                                                   |  |               |                |  |        |   |       |           |  |  |            |  |  | $        | 189 |  |       | $ | 1,805 |           |  | $ | 1,994     |  |  |   |       |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Total credit facilities with Fiat affiliates or guaranteed by
    Fiat affiliates      |  |               |                |  |        | $ | 3,254 |           |  |  |            |  |  | $        | 334 |  |       | $ | 1,014 |           |  | $ | 1,348     |  |  | $ | 1,906 |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 






|   |                                                                                                                                   
|-- | ----------------------------------------------------------------------------------------------------------------------------------
|*  | EO = Equipment Operations; FS = Financial Services                                                                                
|  
|** | BNDES Subsidized Financing in Brazil is guaranteed by Fiat for
    up to $726 million (1.7 billion Brazilian real
    equivalent).



| |                          
| | -------------------------
| | Committed lines of credit



 


75



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 one-sixth)




day-to




| |                            
| | ---------------------------
| | Uncommitted lines of credit

 




| |                      
| | ---------------------
| | Asset-backed programs





|                                                          |       |               |       |       |              |   |       |       | 
|--------------------------------------------------------- | ----- | ------------- | ----- | ----- | ------------ | - | ----- | ----- | 
|                                                          |       | Program       |       |       |             
|                                                          |       | Size          |       |       | Availability |  
|                                                          |       |               |       |       |              |  
|                                                          |       | (in millions) |      
|United States (expiring in January 2006)                  |       | $             | 1,200 |       |              | $ | 1,043 |      
|United States  credit card (expiring in June 2007)       |       |               | 250   |       |              |   | 121   |      
|Canada (expiring in August 2006)                          |       |               | 257   |       |              |   | 231   |      
|Australia (expiring in April 2006)                        |       |               | 293   |       |              |   | 87    |      
|ABS Retained Assets financing (expiring in December 2008) |       |               | 300   |       |              |   | 53    |      
|                                                          |       |               |       |       |              |  
|                                                          | Total |               | $     | 2,300 |              |   | $     | 1,535 | 
|                                                          |       |               |       |       |              |  





| |                                                                                 
| | --------------------------------------------------------------------------------
| | Cash, cash equivalents, Deposits with Fiat and Intersegment
    notes receivable



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|                                     |            |               |       |           |            |   |           |          |  |   |       |       |  |      |       |     |      |   |     |   |  |   |     |    | 
|------------------------------------ | ---------- | ------------- | ----- | --------- | ---------- | - | --------- | -------- |  | - | ----- | ----- |  | ---- | ----- | --- | ---- | - | --- | - |  | - | --- | -- | 
|                                     |            |               |       | Equipment |            |   | Financial |         
|                                     |            | Consolidated  |       |           | Operations |   |           | Services | 
|                                     |            |               |       |           |            |   |           |          | 
|                                     |            | 2005          |       |           | 2004       |   |           | 2005     |  |   | 2004  |       |  | 2005 |       |     | 2004 |  
|                                     |            |               |       |           |            |   |           |          |  |   |       |       |  |      |       |     |      |  
|                                     |            | (in millions) |      
|Cash and cash equivalents            |            | $             | 1,245 |           |            | $ | 931       |          |  | $ | 858   |       |  | $    | 637   |     |      | $ | 387 |   |  | $ | 294 |   
|                                     |            |               |       |           |            |   |           |          |  |   |       |       |  |      |       |     |      |  
|Deposits with Fiat                   |            | $             | 580   |           |            | $ | 1,151     |          |  | $ | 578   |       |  | $    | 1,136 |     |      | $ | 2   |   |  | $ | 15  |   
|                                     |            |               |       |           |            |   |           |          |  |   |       |       |  |      |       |     |      |  
|Intersegment notes receivable:       |            |               |       |           |            |   |           |          |  |   |       |       |  |      |       |     |      |   |     |   |  |   |     |   
|                                     | Short-term |               | $     |          |            |   | $         |         |  |   | $     | 1,067 |  |      | $     | 414 |      |   | $   |  |  |   | $   | 24 | 
|                                     | Long-term  |               |       |          |            |   |           |         |  |   |       |      |  |      |       | 700 |      |   |     |  |  |   |     |   | 
|                                     |            |               |       |           |            |   |           |          |  |   |       |       |  |      |       |     |      |  
|Total intersegment notes receivables |            | $             |      |           |            | $ |          |          |  | $ | 1,067 |       |  | $    | 1,114 |     |      | $ |    |   |  | $ | 24  |   
|                                     |            |               |       |           |            |   |           |          |  |   |       |       |  |      |       |     |      |  









| |                            
| | ---------------------------
| | Debt and Deposits with Fiat



|                                                      |                      |               |      |           |            |   |           |          |  |   |      |     |  |      |        |       |      |   |     |     |  |   |     |     | 
|----------------------------------------------------- | -------------------- | ------------- | ---- | --------- | ---------- | - | --------- | -------- |  | - | ---- | --- |  | ---- | ------ | ----- | ---- | - | --- | --- |  | - | --- | --- | 
|                                                      |                      |               |      | Equipment |            |   | Financial |         
|                                                      |                      | Consolidated  |      |           | Operations |   |           | Services | 
|                                                      |                      |               |      |           |            |   |           |          | 
|                                                      |                      | 2005          |      |           | 2004       |   |           | 2005     |  |   | 2004 |     |  | 2005 |        |       | 2004 |  
|                                                      |                      |               |      |           |            |   |           |          |  |   |      |     |  |      |        |       |      |  
|                                                      |                      | (in millions) |     
|Long-term debt with Fiat excluding current maturities |                      | $             | 133  |           |            | $ | 1,021     |          |  | $ | 95   |     |  | $    | 873    |       |      | $ | 38  |     |  | $ | 148 |    
|Current maturities of long-term debt with Fiat        |                      |               | 413  |           |            |   | 90        |          |  |   | 279  |     |  |      | 19     |       |      |   | 134 |     |  |   | 71  |    
|Short-term debt with Fiat                             |                      |               | 565  |           |            |   | 672       |          |  |   | 479  |     |  |      | 331    |       |      |   | 86  |     |  |   | 341 |    
|                                                      |                      |               |      |           |            |   |           |          |  |   |      |     |  |      |        |       |      |  
|                                                      | Total debt with Fiat |               |      | 1,111     |            |   |           | 1,783    |  |   |      | 853 |  |      |        | 1,223 |      |   |     | 258 |  |   |     | 560 | 
|Less Deposits with Fiat                               |                      |               | (580 | )         |            |   | (1,151    | )        |  |   | (578 | )   |  |      | (1,136 | )     |      |   | (2  | )   |  |   | (15 | )  
|                                                      |                      |               |      |           |            |   |           |          |  |   |      |     |  |      |        |       |      |  
|Net Debt with Fiat                                    |                      | $             | 531  |           |            | $ | 632       |          |  | $ | 275  |     |  | $    | 87     |       |      | $ | 256 |     |  | $ | 545 |    
|                                                      |                      |               |      |           |            |   |           |          |  |   |      |     |  |      |        |       |      |  



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Securitization




|                                          |       |               |       |       |      |   |       |       | 
|----------------------------------------- | ----- | ------------- | ----- | ----- | ---- | - | ----- | ----- | 
|                                          |       | 2005          |       |       | 2004 |  
|                                          |       |               |       |       |      |  
|                                          |       | (in millions) |      
|Wholesale receivables                     |       | $             | 3,080 |       |      | $ | 2,432 |      
|Retail and other notes and finance leases |       |               | 4,580 |       |      |   | 4,475 |      
|Receivables discounted without recourse   |       |               |      |       |      |   | 108   |      
|                                          |       |               |       |       |      |  
|                                          | Total |               | $     | 7,660 |      |   | $     | 7,015 | 
|                                          |       |               |       |       |      |  



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| |       
| | ------
| | Retail

















| |          
| | ---------
| | Wholesale



79



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364-day 364-day,









| |      
| | -----
| | Other



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Pension and Other Postretirement Benefits






Pension
Benefit Obligations


Current funding and asset allocation.






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Further funding requirements.


Future pension expense.


Other
Postretirement Benefit Obligations


Current funding and asset allocation.


Further funding requirements.


Future postretirement benefit expense.




| |                                                           
| | ----------------------------------------------------------
| | C.Research and Development, Patents and Licenses,
    etc.





Patents and Trademarks


Agricultural Equipment


Construction Equipment






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| |                     
| | --------------------
| | D.Trend Information.

Agricultural equipment market outlook for
2006


Construction equipment market outlook for
2006


CNH outlook for 2006












| |                                  
| | ---------------------------------
| | E.Off-Balance Sheet Arrangements.



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| |                                                     
| | ----------------------------------------------------
| | F.Tabular Disclosure of Contractual
    Obligations.



|                                      |                                    |                        |       |           |        |               |       |           |  |   |           |       |  |               |     |       |  |   |       |       | 
|------------------------------------- | ---------------------------------- | ---------------------- | ----- | --------- | ------ | ------------- | ----- | --------- |  | - | --------- | ----- |  | ------------- | --- | ----- |  | - | ----- | ----- | 
|                                      |                                    | Payments Due by Period |      
|                                      |                                    |                        |      
|                                      |                                    |                        |       | Less than |        |               |      
|                                      |                                    | Total                  |       |           | 1 year |               |       | 1-3 years |  |   | 4-5 years |       |  | After 5 years |    
|                                      |                                    |                        |       |           |        |               |       |           |  |   |           |       |  |               |    
|                                      |                                    |                        |       |           |        | (in millions) |       |           | 
|Long-term debt                        |                                    | $                      | 4,765 |           |        | $             | 1,059 |           |  | $ | 1,629     |       |  | $             | 761 |       |  | $ | 1,316 |      
|Interest on fixed rate debt           |                                    |                        | 1,214 |           |        |               | 256   |           |  |   | 453       |       |  |               | 333 |       |  |   | 172   |      
|Interest on floating rate
    debt(1) |                                    |                        | 899   |           |        |               | 209   |           |  |   | 354       |       |  |               | 308 |       |  |   | 28    |      
|Operating
    leases(2)               |                                    |                        | 162   |           |        |               | 35    |           |  |   | 50        |       |  |               | 29  |       |  |   | 48    |      
|Joint venture funding requirements    |                                    |                        | 33    |           |        |               | 10    |           |  |   | 23        |       |  |               |    |       |  |   |      |      
|                                      |                                    |                        |       |           |        |               |       |           |  |   |           |       |  |               |    
|                                      | Total contractual cash obligations |                        | $     | 7,073     |        |               | $     | 1,569     |  |   | $         | 2,509 |  |               | $   | 1,431 |  |   | $     | 1,564 | 
|                                      |                                    |                        |       |           |        |               |       |           |  |   |           |       |  |               |    






|    |                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The interest funding requirements are based on the 2005 interest
    rates and the assumption that short-term and maturing debt will
    be renewed for the next five years.
|   
|(2) | Minimum rental commitments.                                                                                                                                                 



Other Liabilities
















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Purchase Obligations








| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | G. Safe Harbor Statement under the Private Securities
    Litigation Reform Act of 1995.










Item 6. Directors, Senior Management and
Employees




| |                                    
| | -----------------------------------
| | A. Directors and Senior Management.



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|                     |  |                                                      |  |               |           | 
|-------------------- |  | ---------------------------------------------------- |  | ------------- | --------- | 
|                     |  |                                                      |  | Director/     |          
|                     |  |                                                      |  | Executive     |          
|Name                 |  | Position with CNH                                    |  | Officer Since |          
|                     |  |                                                      |  |               |          
|Harold D. Boyanovsky |  | President and Chief Executive Officer; Director      |  |               | 2005/1999 | 
|Katherine M. Hudson  |  | Director; Chairman of the Board                      |  |               | 1999      | 
|Edward A. Hiler      |  | Director                                             |  |               | 2002      | 
|Kenneth Lipper       |  | Director                                             |  |               | 1996      | 
|Ferruccio Luppi      |  | Director                                             |  |               | 2005      | 
|Sergio Marchionne    |  | Director                                             |  |               | 2004      | 
|Paolo Monferino      |  | Director                                             |  |               | 2000      | 
|Michael E. Murphy    |  | Director                                             |  |               | 2002      | 
|James L.C. Provan    |  | Director                                             |  |               | 1995      | 
|Michel Lecomte       |  | Chief Financial Officer                              |  |               | 2000      | 
|Steven Bierman       |  | President, CNH Capital                               |  |               | 2005      | 
|Franco Fenoglio      |  | President, New Holland Construction Equipment        |  |               | 2005      | 
|Mario Ferla          |  | President, Case IH Agricultural Equipment            |  |               | 2003      | 
|Richard J. Hoffman   |  | Corporate Controller and Chief Accounting Officer    |  |               | 2004      | 
|Marco Mazzú          |  | President, New Holland Agricultural Equipment        |  |               | 2005      | 
|James E. McCullough  |  | President, Case Construction Equipment               |  |               | 2005      | 
|Roberto Miotto       |  | Senior Vice President, General Counsel and Secretary |  |               | 1991      | 
|Roberto Pucci        |  | Senior Vice President, Human Resources               |  |               | 2005      | 
|James P. Sharp       |  | President, Parts and Service                         |  |               | 2005      | 







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87



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88



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| |                 
| | ----------------
| | B. Compensation.

Directors Compensation




|                               |              |       |   |       |           |   |        |              |  |   |         |         |  |            |        |        |            |   |        |              |  |   |            |        |  |       |           |   |  |   |         |   |  |   |           |         | 
|------------------------------ | ------------ | ----- | - | ----- | --------- | - | ------ | ------------ |  | - | ------- | ------- |  | ---------- | ------ | ------ | ---------- | - | ------ | ------------ |  | - | ---------- | ------ |  | ----- | --------- | - |  | - | ------- | - |  | - | --------- | ------- | 
|                               |              | Grant |   |       | Edward A. |   |        | Katherine M. |  |   | Kenneth |         |  | Michael E. |        |        | James L.C. |   |        | Paolo        |  |   | Harold     |        |  |      
|                               |              | Price |   |       | Hiler     |   |        | Hudson       |  |   | Lipper  |         |  | Murphy     |        |        | Provan     |   |        | Monferino(1) |  |   | Boyanovsky |        |  | Total |          
|                               |              |       |   |       |           |   |        |              |  |   |         |         |  |            |        |        |            |   |        |              |  |   |            |        |  |       |          
|Periodic Remuneration in Cash: |              |       |   |       |           |   |        |              |  |   |         |         |  |            |        |        |            |   |        |              |  |   |            |        |  |       |           |   |  |   |         |   |  |   |           |        
|Salary                         |              |       |   |       |           | $ |       |              |  | $ |        |         |  | $          |       |        |            | $ |       |              |  | $ |           |        |  | $     | 780,203   |   |  | $ | 727,616 |   |  | $ | 1,507,819 |        
|                               | Meeting Fees |       |   |       |           |   |        | 18,750       |  |   |         | 22,500  |  |            |        | 16,250 |            |   |        | 22,500       |  |   |            | 28,750 |  |       |           |  |  |   |         |  |  |   |           | 108,750 | 
|                               | Annual Fees  |       |   |       |           |   |        | 52,500       |  |   |         | 150,000 |  |            |        |       |            |   |        | 26,500       |  |   |            | 17,500 |  |       |           |  |  |   |         |  |  |   |           | 246,500 | 
|Relocation                     |              |       |   |       |           |   |       |              |  |   |        |         |  |            |       |        |            |   |       |              |  |   |           |        |  |       | 717,486   |   |  |   |        |   |  |   | 717,486   |        
|Common Shares Granted:         |              |       |   |       |           |   |        |              |  |   |         |         |  |            |        |        |            |   |        |              |  |   |            |        |  |       |           |   |  |   |         |   |  |   |           |        
|                               | 1/20/2005    |       | $ | 18.44 |           |   |        |             |  |   |         |        |  |            |        |       |            |   |        | 6,749        |  |   |            | 11,248 |  |       |           |  |  |   |         |  |  |   |           | 17,997  | 
|                               | 5/2/2005     |       |   | 17.81 |           |   |        |             |  |   |         |        |  |            |        |       |            |   |        | 6,750        |  |   |            | 11,256 |  |       |           |  |  |   |         |  |  |   |           | 18,006  | 
|                               | 7/31/2005    |       |   | 21.08 |           |   |        |             |  |   |         |        |  |            |        |       |            |   |        | 8,748        |  |   |            | 8,748  |  |       |           |  |  |   |         |  |  |   |           | 17,496  | 
|                               | 10/29/2005   |       |   | 18.37 |           |   |        |             |  |   |         |        |  |            |        |       |            |   |        | 8,744        |  |   |            | 8,744  |  |       |           |  |  |   |         |  |  |   |           | 17,488  | 
|Future Remuneration:           |              |       |   |       |           |   |       |              |  |   |        |         |  |            |       |        |            |   |       |              |  |   |           |        |  |       | 7,934     |   |  |   | 51,224  |   |  |   | 59,158    |        
|Pension Plan                   |              |       |   |       |           |   |       |              |  |   |        |         |  |            |       |        |            |   |       |              |  |   |           |        |  |       |          |   |  |   |        |   |  |   |          |        
|Allowance Upon Termination     |              |       |   |       |           |   |       |              |  |   |        |         |  |            |       |        |            |   |       |              |  |   |           |        |  |       | 16,713    |   |  |   |        |   |  |   | 16,713    |        
|Bonus:                         |              |       |   |       |           |   |        |              |  |   |         |         |  |            |        |        |            |   |        |              |  |   |            |        |  |       |           |   |  |   |         |   |  |   |           |        
|Cash                           |              |       |   |       |           |   |       |              |  |   |        |         |  |            |       |        |            |   |       |              |  |   |           |        |  |       |          |   |  |   | 130,000 |   |  |   | 130,000   |        
|Restricted Stock               |              |       |   |       |           |   |       |              |  |   |        |         |  |            |       |        |            |   |       |              |  |   |           |        |  |       | 2,568     |   |  |   |        |   |  |   | 2,568     |        
|Loans:                         |              |       |   |       |           |   |       |              |  |   |        |         |  |            |       |        |            |   |       |              |  |   |           |        |  |       |          |   |  |   |        |   |  |   |          |        
|                               |              |       |   |       |           |   |        |              |  |   |         |         |  |            |        |        |            |   |        |              |  |   |            |        |  |       |          
|Total                          |              |       |   |       |           | $ | 71,250 |              |  | $ | 172,500 |         |  | $          | 16,250 |        |            | $ | 79,991 |              |  | $ | 86,246     |        |  | $     | 1,524,904 |   |  | $ | 908,840 |   |  | $ | 2,859,981 |        
|                               |              |       |   |       |           |   |        |              |  |   |         |         |  |            |        |        |            |   |        |              |  |   |            |        |  |       |          






|    |                                                                                          
|--- | -----------------------------------------------------------------------------------------
|(1) | Mr. Monferino resigned as President and Chief Executive
    Officer on February 28, 2005.



CNH Outside Directors Compensation Plan




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|                                 |           |        |         |          |        |   |       |        |          |  |         |         |   |   |       |       | 
|-------------------------------- | --------- | ------ | ------- | -------- | ------ | - | ----- | ------ | -------- |  | ------- | ------- | - | - | ----- | ----- | 
|                                 |           | 2005   |         |          | 2004   |  
|                                 |           |        |         |          |        |  
|                                 |           |        |         | Exercise |        |   |       |        | Exercise | 
|                                 |           | Shares |         |          | Price* |   |       | Shares |          |  | Price*  |        
|                                 |           |        |         |          |        |   |       |        |          |  |         |        
|Outstanding at beginning of year |           |        | 142,005 |          |        | $ | 22.41 |        |          |  | 142,500 |         |   | $ | 22.76 |      
|                                 | Granted   |        |         | 31,037   |        |   |       | 17.90  |          |  |         | 39,065  |   |   |       | 19.12 | 
|                                 | Forfeited |        |         | (4,000   | )      |   |       | 17.28  |          |  |         | (18,877 | ) |   |       | 35.18 | 
|                                 | Exercised |        |         |         |        |   |       |       |          |  |         | (20,683 | ) |   |       | 11.23 | 
|                                 |           |        |         |          |        |   |       |        |          |  |         |        
|Outstanding at end of year       |           |        | 169,042 |          |        | $ | 21.71 |        |          |  | 142,005 |         |   | $ | 22.41 |      
|                                 |           |        |         |          |        |   |       |        |          |  |         |        
|Exercisable at end of year       |           |        | 141,872 |          |        | $ | 22.50 |        |          |  | 112,714 |         |   | $ | 23.45 |      
|                                 |           |        |         |          |        |   |       |        |          |  |         |        






|  |                 
|- | ----------------
|* | Weighted-average



|                        |  |                     |        |  |                     |  |     |          |  |   |             |  |  |          |        |  |  |   |       | 
|----------------------- |  | ------------------- | ------ |  | ------------------- |  | --- | -------- |  | - | ----------- |  |  | -------- | ------ |  |  | - | ----- | 
|                        |  | Options Outstanding |        |  | Options Exercisable | 
|                        |  |                     |        |  |                     | 
|                        |  | Shares              |        |  | Contractual         |  |     | Exercise |  |   | Shares      |  |  | Exercise |       
|Range of Exercise Price |  | Outstanding         |        |  | Life*               |  |     | Price*   |  |   | Exercisable |  |  | Price*   |       
|                        |  |                     |        |  |                     |  |     |          |  |   |             |  |  |          |       
|$9.15 - $15.70          |  |                     | 64,348 |  |                     |  | 7.3 |          |  | $ | 11.54       |  |  |          | 60,628 |  |  | $ | 11.68 | 
|$15.71 - $26.20         |  |                     | 71,055 |  |                     |  | 8.4 |          |  | $ | 20.80       |  |  |          | 47,605 |  |  | $ | 21.76 | 
|$26.21 - $40.00         |  |                     | 18,654 |  |                     |  | 5.5 |          |  | $ | 30.31       |  |  |          | 18,654 |  |  | $ | 30.31 | 
|$40.01 - $56.00         |  |                     | 4,460  |  |                     |  | 4.9 |          |  | $ | 49.31       |  |  |          | 4,460  |  |  | $ | 49.31 | 
|$56.01 - $77.05         |  |                     | 10,525 |  |                     |  | 4.3 |          |  | $ | 53.03       |  |  |          | 10,525 |  |  | $ | 63.03 | 




|  |                 
|- | ----------------
|* | Weighted-average



| |                          
| | -------------------------
| | CNH Equity Incentive Plan



91



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|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |   |       |       | 
|-------------------------------- | --------- | ------ | --------- | -------- | ------ | - | ----- | ------ | -------- |  | --------- | -------- | - | - | ----- | ----- | 
|                                 |           | 2005   |           |          | 2004   |  
|                                 |           |        |           |          |        |  
|                                 |           |        |           | Exercise |        |   |       |        | Exercise | 
|                                 |           | Shares |           |          | Price* |   |       | Shares |          |  | Price*    |         
|                                 |           |        |           |          |        |   |       |        |          |  |           |         
|Outstanding at beginning of year |           |        | 2,464,575 |          |        | $ | 33.68 |        |          |  | 2,719,842 |          |   | $ | 32.92 |      
|                                 | Granted   |        |           | 10,000   |        |   |       | 18.06  |          |  |           | 20,000   |   |   |       | 18.21 | 
|                                 | Exercised |        |           | (178,700 | )      |   |       | 16.18  |          |  |           | (62,690  | ) |   |       | 16.18 | 
|                                 | Forfeited |        |           | (254,805 | )      |   |       | 49.83  |          |  |           | (212,577 | ) |   |       | 51.80 | 
|                                 |           |        |           |          |        |   |       |        |          |  |           |         
|Outstanding at end of year       |           |        | 2,041,070 |          |        | $ | 34.62 |        |          |  | 2,464,575 |          |   | $ | 33.68 |      
|                                 |           |        |           |          |        |   |       |        |          |  |           |         
|Exercisable at end of year       |           |        | 1,747,634 |          |        | $ | 36.76 |        |          |  | 1,655,585 |          |   | $ | 39.38 |      
|                                 |           |        |           |          |        |   |       |        |          |  |           |         




|  |                 
|- | ----------------
|* | Weighted-average



|                        |  |                     |         |  |                     |  |     |          |  |   |             |  |  |          |         |  |  |   |       | 
|----------------------- |  | ------------------- | ------- |  | ------------------- |  | --- | -------- |  | - | ----------- |  |  | -------- | ------- |  |  | - | ----- | 
|                        |  | Options Outstanding |         |  | Options Exercisable | 
|                        |  |                     |         |  |                     | 
|                        |  | Shares              |         |  | Contractual         |  |     | Exercise |  |   | Shares      |  |  | Exercise |        
|Range of Exercise Price |  | Outstanding         |         |  | Life*               |  |     | Price*   |  |   | Exercisable |  |  | Price*   |        
|                        |  |                     |         |  |                     |  |     |          |  |   |             |  |  |          |        
|$15.20 - $26.20         |  |                     | 886,260 |  |                     |  | 6.6 |          |  | $ | 16.21       |  |  |          | 623,969 |  |  | $ | 16.19 | 
|$26.21 - $40.00         |  |                     | 625,000 |  |                     |  | 5.6 |          |  |   | 31.70       |  |  |          | 625,000 |  |  |   | 31.70 | 
|$40.01 - $77.05         |  |                     | 529,810 |  |                     |  | 4.1 |          |  |   | 68.85       |  |  |          | 498,665 |  |  |   | 68.85 | 




|  |                 
|- | ----------------
|* | Weighted-average



three-year three-year


92



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|                                                     |        |            |           |         |            |   |           |         | 
|---------------------------------------------------- | ------ | ---------- | --------- | ------- | ---------- | - | --------- | ------- | 
|                                                     |        | 2005 Award |           |         | 2004 Award |  
|                                                     |        |            |           |         |            |  
|Total potential shares subject to award              |        |            | 206,118   |         |            |   | 171,966   |        
|                                                     |        |            |           |         |            |  
|Total potential cash portion of award                |        | $          | 3,836,479 |         |            | $ | 3,164,306 |        
|                                                     |        |            |           |         |            |  
|Of which amounts relate to executive officers of CNH |        |            |           |         |            |   |           |        
|                                                     | Shares |            |           | 31,119  |            |   |           | 24,634  | 
|                                                     |        |            |           |         |            |  
|                                                     | Cash   |            | $         | 563,137 |            |   | $         | 458,000 | 
|                                                     |        |            |           |         |            |  

three-year






| |                          
| | -------------------------
| | Fiat Stock Option Program



|              |  |               |        |                |          |  |         |         |  |  |         |  |  |           |         |  |             |  |         |           |  |  |             |   |  |             |   |  |  |  |         |  |  |  |         | 
|------------- |  | ------------- | ------ | -------------- | -------- |  | ------- | ------- |  |  | ------- |  |  | --------- | ------- |  | ----------- |  | ------- | --------- |  |  | ----------- | - |  | ----------- | - |  |  |  | ------- |  |  |  | ------- | 
|              |  |               |        | Exercise Price |          |  | Options |        
|              |  | Date of Grant |        |                |          |  |         |         | 
|Date of Grant |  | Share Price   |        |                | Original |  |         | Current |  |  | Granted |  |  | Transfers |         |  | Forfeitures |  |         | Exercises |  |  | Outstanding |   |  | Exercisable |  
|              |  |               |        |                |          |  |         |         |  |  |         |  |  |           |         |  |             |  |         |           |  |  |             |   |  |             |  
|3/30/1999     |  |               | 29.38 |                |          |  | 28.45  |         |  |  | 26.12  |  |  |           | 53,300  |  |             |  | 2,200   |           |  |  | (24,900     | ) |  |             |  |  |  |  | 30,600  |  |  |  | 30,600  | 
|2/18/2000     |  |               | 33.00  |                |          |  | 30.63   |         |  |  | 28.12   |  |  |           | 102,500 |  |             |  | (3,000  | )         |  |  | (24,500     | ) |  |             |  |  |  |  | 75,000  |  |  |  | 75,000  | 
|2/27/2001     |  |               | 26.77  |                |          |  | 27.07   |         |  |  | 24.85   |  |  |           | 50,000  |  |             |  | (50,000 | )         |  |  |            |   |  |             |  |  |  |  |        |  |  |  |        | 
|10/31/2001    |  |               | 18.06  |                |          |  | 18.00   |         |  |  | 16.52   |  |  |           | 249,000 |  |             |  | 10,000  |           |  |  | (95,000     | ) |  |             |  |  |  |  | 164,000 |  |  |  | 164,000 | 
|9/12/2002     |  |               | 11.88  |                |          |  | 11.16   |         |  |  | 10.39   |  |  |           | 513,000 |  |             |  | (43,000 | )         |  |  | (150,000    | ) |  |             |  |  |  |  | 320,000 |  |  |  | 240,000 | 



Other
Programs




93



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| |                    
| | -------------------
| | C. Board Practices.







one-tier day-to










94



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##### Table of Contents





Audit Committee.




Corporate Governance and Compensation Committee.






| |              
| | -------------
| | D. Employees.





95



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##### Table of Contents







| |                   
| | ------------------
| | E.Share Ownership.





|                             |                    |       |            |            |          |  |       |              |  |  |         |       |  |            |       |       |           |  |       |            |  |  |            |       |  |              |   |       |       |  |        |   |  |  |        |   |  |  |        |        | 
|---------------------------- | ------------------ | ----- | ---------- | ---------- | -------- |  | ----- | ------------ |  |  | ------- | ----- |  | ---------- | ----- | ----- | --------- |  | ----- | ---------- |  |  | ---------- | ----- |  | ------------ | - | ----- | ----- |  | ------ | - |  |  | ------ | - |  |  | ------ | ------ | 
|                             |                    | Grant |            |            | Exercise |  |       | Katherine M. |  |  | Kenneth |       |  | James L.C. |       |       | Edward A. |  |       | Michael E. |  |  | Harold     |       |  | Paolo        |   |       |      
|                             |                    | Date  |            |            | Price    |  |       | Hudson       |  |  | Lipper  |       |  | Provan     |       |       | Hiler     |  |       | Murphy     |  |  | Boyanovsky |       |  | Monferino(1) |   |       | Total | 
|                             |                    |       |            |            |          |  |       |              |  |  |         |       |  |            |       |       |           |  |       |            |  |  |            |       |  |              |   |       |       | 
|Opening Balance as of 1/1/05 |                    |       |            |            |          |  |       |              |  |  |         |       |  |            |       |       |           |  |       |            |  |  |            |       |  |              |   |       |       |  |        |   |  |  |        |   |  |  |        |       
|                             | (automatic option) |       |            | 11/12/1999 |          |  | $     | 77.05        |  |  |         | 750   |  |            |       | 750   |           |  |       | 750        |  |  |            |      |  |              |   |      |       |  |        |   |  |  |        |  |  |  |        | 2,250  | 
|                             |                    |       | 12/20/1999 |            |          |  | 68.85 |              |  |  |        |       |  |            |      |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  | 60,000 |   |  |  |       |   |  |  | 60,000 |       
|                             |                    |       | 2/29/2000  |            |          |  | 56.09 |              |  |  | 624     |       |  |            | 713   |       |           |  | 624   |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 1,961  |       
|                             |                    |       | 4/18/2000  |            |          |  | 68.85 |              |  |  |        |       |  |            |      |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  | 45,000 |   |  |  | 45,000 |       
|                             |                    |       | 6/6/2000   |            |          |  | 60.63 |              |  |  | 577     |       |  |            | 660   |       |           |  | 577   |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 1,814  |       
|                             | (automatic option) |       |            | 6/7/2000   |          |  |       | 60.00        |  |  |         | 1,500 |  |            |       | 1,500 |           |  |       | 1,500      |  |  |            |      |  |              |   |      |       |  |        |  |  |  |        |  |  |  |        | 4,500  | 
|                             |                    |       | 9/4/2000   |            |          |  | 49.55 |              |  |  | 706     |       |  |            | 807   |       |           |  | 706   |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 2,219  |       
|                             |                    |       | 12/3/2000  |            |          |  | 49.08 |              |  |  | 713     |       |  |            | 815   |       |           |  | 713   |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 2,241  |       
|                             |                    |       | 3/2/2001   |            |          |  | 38.63 |              |  |  | 906     |       |  |            | 1,036 |       |           |  | 906   |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 2,848  |       
|                             |                    |       | 5/2/2001   |            |          |  | 26.90 |              |  |  | 1,301   |       |  |            | 1,487 |       |           |  | 1,301 |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 4,089  |       
|                             | (automatic option) |       |            | 5/3/2001   |          |  |       | 27.88        |  |  |         | 1,500 |  |            |       | 1,500 |           |  |       | 1,500      |  |  |            |      |  |              |   |      |       |  |        |  |  |  |        |  |  |  |        | 4,500  | 
|                             |                    |       | 7/23/2001  |            |          |  | 31.70 |              |  |  |        |       |  |            |      |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  | 17,000 |   |  |  |       |   |  |  | 17,000 |       
|                             |                    |       | 7/31/2001  |            |          |  | 36.35 |              |  |  | 963     |       |  |            | 1,101 |       |           |  | 963   |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 3,027  |       
|                             |                    |       | 10/29/2001 |            |          |  | 26.25 |              |  |  | 1,333   |       |  |            | 1,524 |       |           |  | 1,333 |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 4,190  |       
|                             |                    |       | 1/27/2002  |            |          |  | 29.48 |              |  |  | 1,188   |       |  |            | 1,357 |       |           |  | 1,188 |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 3,733  |       
|                             |                    |       | 5/6/2002   |            |          |  | 26.60 |              |  |  | 1,436   |       |  |            | 1,368 |       |           |  | 1,316 |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 4,120  |       
|                             | (automatic option) |       |            | 5/7/2002   |          |  |       | 26.45        |  |  |         | 1,500 |  |            |       | 1,500 |           |  |       | 1,500      |  |  |            | 1,500 |  |              |   |      |       |  |        |  |  |  |        |  |  |  |        | 6,000  | 
|                             |                    |       | 7/22/2002  |            |          |  | 16.18 |              |  |  |        |       |  |            |      |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  | 24,600 |   |  |  | 34,000 |   |  |  | 58,600 |       
|                             |                    |       | 8/2/2000   |            |          |  | 15.23 |              |  |  | 2,627   |       |  |            | 2,299 |       |           |  |      |            |  |  | 2,299      |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 7,225  |       
|                             | (automatic option) |       |            | 9/3/2002   |          |  |       | 18.53        |  |  |         |      |  |            |       |      |           |  |       |           |  |  |            |      |  |              |   | 1,011 |       |  |        |  |  |  |        |  |  |  |        | 1,011  | 
|                             |                    |       | 11/2/2002  |            |          |  | 15.18 |              |  |  | 2,636   |       |  |            | 2,307 |       |           |  |      |            |  |  | 2,307      |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 7,250  |       
|                             | (automatic option) |       |            | 1/31/2003  |          |  |       | 15.70        |  |  |         | 2,547 |  |            |       | 2,229 |           |  |       |           |  |  |            | 2,229 |  |              |   |      |       |  |        |  |  |  |        |  |  |  |        | 7,005  | 
|                             |                    |       | 5/7/2003   |            |          |  | 9.15  |              |  |  | 4,374   |       |  |            | 3,827 |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 8,201  |       
|                             | (automatic option) |       |            | 5/8/2003   |          |  |       | 9.23         |  |  |         | 6,212 |  |            |       | 6,380 |           |  |       | 6,194      |  |  |            | 4,000 |  |              |   | 4,000 |       |  |        |  |  |  |        |  |  |  |        | 26,786 | 
|                             |                    |       | 8/4/2003   |            |          |  | 9.90  |              |  |  | 1,136   |       |  |            |      |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 1,136  |       
|                             |                    |       | 11/3/2003  |            |          |  | 13.49 |              |  |  | 834     |       |  |            |      |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 834    |       
|                             |                    |       | 2/1/2004   |            |          |  | 16.54 |              |  |  | 2,721   |       |  |            |      |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 2,721  |       
|                             |                    |       | 3/22/2004  |            |          |  | 9.90  |              |  |  | 3,409   |       |  |            |      |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 3,409  |       
|                             |                    |       | 3/22/2004  |            |          |  | 13.49 |              |  |  | 2,502   |       |  |            |      |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 2.502  |       
|                             |                    |       | 4/25/2004  |            |          |  | 20.66 |              |  |  | 2,178   |       |  |            |      |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 2,178  |       
|                             | (automatic option) |       |            | 4/26/2004  |          |  |       | 21.22        |  |  |         | 4,000 |  |            |       | 4,000 |           |  |       | 4,000      |  |  |            | 4,000 |  |              |   | 4,000 |       |  |        |  |  |  |        |  |  |  |        | 20,000 | 
|                             |                    |       | 7/24/2004  |            |          |  | 20.44 |              |  |  |        |       |  |            | 1,957 |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 1,957  |       
|                             |                    |       | 10/22/2004 |            |          |  | 17.41 |              |  |  |        |       |  |            | 2,298 |       |           |  |      |            |  |  |           |       |  |              |  |       |       |  |       |   |  |  |       |   |  |  | 2,298  |       
|                             |                    |       |            |            |          |  |       |              |  |  |         |       |  |            |       |       |           |  |       |            |  |  |            |       |  |              |   |       |       | 

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|                                    |                       |       |            |          |          |   |       |              |  |  |         |        |  |            |        |        |           |  |        |            |  |  |            |        |  |              |       |        |       |  |         |         |  |  |        |        |  |  |         |         | 
|----------------------------------- | --------------------- | ----- | ---------- | -------- | -------- | - | ----- | ------------ |  |  | ------- | ------ |  | ---------- | ------ | ------ | --------- |  | ------ | ---------- |  |  | ---------- | ------ |  | ------------ | ----- | ------ | ----- |  | ------- | ------- |  |  | ------ | ------ |  |  | ------- | ------- | 
|                                    |                       | Grant |            |          | Exercise |   |       | Katherine M. |  |  | Kenneth |        |  | James L.C. |        |        | Edward A. |  |        | Michael E. |  |  | Harold     |        |  | Paolo        |       |        |      
|                                    |                       | Date  |            |          | Price    |   |       | Hudson       |  |  | Lipper  |        |  | Provan     |        |        | Hiler     |  |        | Murphy     |  |  | Boyanovsky |        |  | Monferino(1) |       |        | Total | 
|                                    |                       |       |            |          |          |   |       |              |  |  |         |        |  |            |        |        |           |  |        |            |  |  |            |        |  |              |       |        |       | 
|Opening Total                       |                       |       |            |          |          |   |       |              |  |  | 50,173  |        |  |            | 41,415 |        |           |  | 25,071 |            |  |  | 16,335     |        |  |              | 9,011 |        |       |  | 101,600 |         |  |  | 79,000 |        |  |  | 322,605 |        
|                                    |                       |       |            |          |          |   |       |              |  |  |         |        |  |            |        |        |           |  |        |            |  |  |            |        |  |              |       |        |       | 
|                                    | Vested/ Not Exercised |       |            |          |          |   |       |              |  |  |         | 38,461 |  |            |        | 29,535 |           |  |        | 13,377     |  |  |            | 6,835  |  |              |       | 0      |       |  |         | 79,914  |  |  |        | 54,296 |  |  |         | 222,418 | 
|                                    | Not Vested            |       |            |          |          |   |       |              |  |  |         | 11,712 |  |            |        | 11,880 |           |  |        | 11,694     |  |  |            | 9,500  |  |              |       | 9,011  |       |  |         | 21,686  |  |  |        | 24,704 |  |  |         | 100,187 | 
|Options Granted in 2005             |                       |       | 1/20/2005  |          |          | $ | 18.44 |              |  |  |        |        |  |            | 2,169  |        |           |  |       |            |  |  |           |        |  |              |      |        |       |  |        |         |  |  |       |        |  |  | 2,169   |        
|                                    |                       |       | 5/2/2005   |          |          |   | 17.81 |              |  |  |        |        |  |            | 2,246  |        |           |  |       |            |  |  |           |        |  |              |      |        |       |  |        |         |  |  |       |        |  |  | 2,246   |        
|                                    | (automatic option)    |       |            | 5/3/2005 |          |   |       | 17.28        |  |  |         | 4,000  |  |            |        | 4,000  |           |  |        | 4,000      |  |  |            | 4,000  |  |              |       | 4,000  |       |  |         |        |  |  |        |       |  |  |         | 20,000  | 
|                                    |                       |       | 7/31/2005  |          |          |   | 21.08 |              |  |  |        |        |  |            | 3,084  |        |           |  |       |            |  |  |           |        |  |              |      |        |       |  |        |         |  |  |       |        |  |  | 3,084   |        
|                                    |                       |       | 10/28/2005 |          |          |   | 18.37 |              |  |  |        |        |  |            | 3,538  |        |           |  |       |            |  |  |           |        |  |              |      |        |       |  |        |         |  |  |       |        |  |  | 3,538   |        
|                                    |                       |       |            |          |          |   |       |              |  |  |         |        |  |            |        |        |           |  |        |            |  |  |            |        |  |              |       |        |       | 
|                                    | 2005 Sub-Total        |       |            |          |          |   |       |              |  |  |         | 4,000  |  |            |        | 15,037 |           |  |        | 4,000      |  |  |            | 4,000  |  |              |       | 4,000  |       |  |         |        |  |  |        |       |  |  |         | 31,037  | 
|Options Terminated                  |                       |       |            |          |          |   |       |              |  |  |        |        |  |            |       |        |           |  |       |            |  |  |           |        |  |              |      |        |       |  |        |         |  |  |       |        |  |  |        |        
|Total Options Terminated            |                       |       |            |          |          |   |       |              |  |  |        |        |  |            |       |        |           |  |       |            |  |  |           |        |  |              |      |        |       |  |        |         |  |  |       |        |  |  |        |        
|Options Exercised in 2005           |                       |       |            |          |          |   |       |              |  |  |        |        |  |            |       |        |           |  |       |            |  |  |           |        |  |              |      |        |       |  |        |         |  |  |       |        |  |  |        |        
|Total Options Exercised 2005        |                       |       |            |          |          |   |       |              |  |  |        |        |  |            |       |        |           |  |       |            |  |  |           |        |  |              |      |        |       |  |        |         |  |  |       |        |  |  |        |        
|Closing Balance as 12/31/05 Closing |                       |       |            |          |          |   |       |              |  |  |         |        |  |            |        |        |           |  |        |            |  |  |            |        |  |              |       |        |       |  |         |         |  |  |        |        |  |  |         |        
|                                    | Total                 |       |            |          |          |   |       |              |  |  |         | 54,173 |  |            |        | 56,452 |           |  |        | 29,071     |  |  |            | 20,335 |  |              |       | 13,011 |       |  |         | 101,600 |  |  |        | 79,000 |  |  |         | 353,642 | 
|                                    |                       |       |            |          |          |   |       |              |  |  |         |        |  |            |        |        |           |  |        |            |  |  |            |        |  |              |       |        |       | 
|                                    | Vested/ Not Exercised |       |            |          |          |   |       |              |  |  |         | 39,961 |  |            |        | 42,072 |           |  |        | 14,877     |  |  |            | 8,335  |  |              |       | 1,011  |       |  |         | 90,314  |  |  |        | 62,796 |  |  |         | 259,366 | 
|                                    |                       |       |            |          |          |   |       |              |  |  |         |        |  |            |        |        |           |  |        |            |  |  |            |        |  |              |       |        |       | 
|                                    | Not Vested            |       |            |          |          |   |       |              |  |  |         | 14,212 |  |            |        | 14,380 |           |  |        | 14,194     |  |  |            | 12,000 |  |              |       | 12,000 |       |  |         | 11,286  |  |  |        | 16,204 |  |  |         | 94,276  | 
|                                    |                       |       |            |          |          |   |       |              |  |  |         |        |  |            |        |        |           |  |        |            |  |  |            |        |  |              |       |        |       | 






|    |                                                                                          
|--- | -----------------------------------------------------------------------------------------
|(1) | Mr. Monferino resigned as President and Chief Executive
    Officer on February 28, 2005.






Item 7. Major Shareholders and Related Party
Transactions




| |                      
| | ---------------------
| | A.Major Shareholders.

 




|                   |  |             |             |  |            |  |     |  
|------------------ |  | ----------- | ----------- |  | ---------- |  | --- | -
|                   |  | Number of   |             |  |           
|                   |  | Outstanding |             |  | Percentage | 
|                   |  | Common      |             |  | Ownership  | 
|Shareholders       |  | Shares      |             |  | Interest   | 
|                   |  |             |             |  |            | 
|Fiat Netherlands   |  |             | 111,866,037 |  |            |  | 83  | %
|Other shareholders |  |             | 22,999,587  |  |            |  | 17  |  
|                   |  |             |             |  |            | 
|Total              |  |             | 134,865,624 |  |            |  | 100 | %
|                   |  |             |             |  |            | 





97



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| |                               
| | ------------------------------
| | B. Related Party Transactions.



 




98



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99



---



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|                                                                  |                           |               |     |     |      |   |     |      |  |   |     |     | 
|----------------------------------------------------------------- | ------------------------- | ------------- | --- | --- | ---- | - | --- | ---- |  | - | --- | --- | 
|                                                                  |                           | 2005          |     |     | 2004 |   |     | 2003 | 
|                                                                  |                           |               |     |     |      |   |     |      | 
|                                                                  |                           | (in millions) |    
|Sales of equipment                                                |                           | $             | 6   |     |      | $ | 9   |      |  | $ | 6   |    
|Sales to affiliated companies and joint ventures                  |                           |               | 115 |     |      |   | 115 |      |  |   | 179 |    
|                                                                  |                           |               |     |     |      |   |     |      | 
|                                                                  | Total sales to affiliates |               |     | 121 |      |   | $   | 124  |  |   | $   | 185 | 
|                                                                  |                           |               |     |     |      |   |     |      | 
|Purchase of materials, production parts, merchandise and services |                           | $             | 525 |     |      | $ | 565 |      |  | $ | 584 |    
|                                                                  |                           |               |     |     |      |   |     |      | 
|Finance and interest income                                       |                           | $             | 41  |     |      | $ | 28  |      |  | $ | 25  |    
|                                                                  |                           |               |     |     |      |   |     |      | 



| |                                    
| | -----------------------------------
| | C.Interests of Experts and Counsel.






Item 8. Financial Information




| |                                                               
| | --------------------------------------------------------------
| | A.Consolidated Statements and Other Financial
    Information.





| |                       
| | ----------------------
| | B.Significant Changes.





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Item 9. The Offer and Listing




| |                              
| | -----------------------------
| | A. Offer and Listing Details.





| |                   
| | ------------------
| | Common Share Price

|                             |                |      |       |       |     |   |       |       | 
|---------------------------- | -------------- | ---- | ----- | ----- | --- | - | ----- | ----- | 
|                             |                | High |       |       | Low |  
|                             |                |      |       |       |     |  
|Most recent six months:      |                |      |       |       |     |   |       |      
|                             | February 2006  |      | $     | 25.58 |     |   | $     | 19.50 | 
|                             | January 2006   |      |       | 19.18 |     |   |       | 18.14 | 
|                             | December 2005  |      |       | 18.60 |     |   |       | 16.07 | 
|                             | November 2005  |      |       | 18.51 |     |   |       | 16.60 | 
|                             | October 2005   |      |       | 20.37 |     |   |       | 17.98 | 
|                             | September 2005 |      |       | 22.10 |     |   |       | 19.70 | 
|Year ended December 31, 2005 |                |      |       |       |     |   |       |      
|                             | First Quarter  |      | $     | 19.06 |     |   | $     | 16.70 | 
|                             | Second Quarter |      |       | 19.03 |     |   |       | 16.90 | 
|                             | Third Quarter  |      |       | 22.10 |     |   |       | 18.90 | 
|                             | Fourth Quarter |      |       | 20.37 |     |   |       | 16.07 | 
|                             | Full Year      |      |       | 22.10 |     |   |       | 16.07 | 
|Year ended December 31, 2004 |                |      |       |       |     |   |       |      
|                             | First Quarter  |      | $     | 18.88 |     |   | $     | 16.37 | 
|                             | Second Quarter |      |       | 21.38 |     |   |       | 17.99 | 
|                             | Third Quarter  |      |       | 20.80 |     |   |       | 16.55 | 
|                             | Fourth Quarter |      |       | 19.90 |     |   |       | 16.22 | 
|                             | Full Year      |      |       | 21.38 |     |   |       | 16.22 | 
|2003                         |                |      | 19.00 |       |     |   | 5.95  |      
|2002                         |                | $    | 32.15 |       |     | $ | 14.00 |      
|2001                         |                | $    | 48.75 |       |     | $ | 25.50 |      





| |                         
| | ------------------------
| | B. Plan of Distribution.



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| |            
| | -----------
| | C. Markets.





| |                         
| | ------------------------
| | D. Selling Shareholders.





| |             
| | ------------
| | E. Dilution.





| |                          
| | -------------------------
| | F. Expenses of the Issue.








|         |                       
|-------- | ----------------------
|Item 10. | Additional Information



| |                  
| | -----------------
| | A. Share Capital.





| |                                           
| | ------------------------------------------
| | B. Memorandum and Articles of Association.



Registration and Objectives








| |   |                                                                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | engage in, and/ or to participate in and operate one or more
    companies engaged in the design, engineering, manufacture, sale
    or distribution of agricultural and construction equipment;                 
|
| |  | engage in and/ or to participate in and operate one or more
    companies engaged in any business, financial or otherwise, which
    we may deem suitable to be carried on in conjunction with the
    foregoing;
|
| |  | render management and advisory services;                                                                                                                                                                         
|
| |  | issue guarantees, provide security, warrant performance or in
    any other way assume liability for or in respect of obligations
    of group companies; and                                                    
|
| |  | do anything which a company may lawfully do under the laws of
    The Netherlands which may be deemed conducive to the attainment
    of the objectives set out in the foregoing paragraphs.                     

Authorized Capital


 


Dividends




102



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103



---



##### Table of Contents



Shareholder Meetings and Voting Rights










Board of Directors; Adoption of Annual Accounts










104



---



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Liquidation Rights




Issue of Shares; Preference Rights










Repurchases of Shares






| |   |                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our shareholders equity, less the amount to be paid for
    the shares to be acquired, exceeds the sum of (1) our share
    capital account plus (2) any reserves required to be
    maintained by Dutch law; and

105



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| |   |                                                                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | after the acquisition of shares, we and our subsidiaries would
    not hold, or hold as pledges, shares having an aggregate par
    value that exceeds 10% of our issued share capital account, as
    these amounts would be calculated under generally accepted
    accounting principles in The Netherlands.



Reduction of Share Capital




Amendment of the Articles of Association




Significant Transactions








| |   |                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the transfer of all or substantially all of CNHs business
    to a third party;                                                                                                                                                                                                                                                           
|
| |  | the entry into or termination of a long-term joint venture of
    CNH or of any of CNHs subsidiaries with another legal
    entity or company, or of CNHs position as a fully liable
    partner in a limited partnership or a general partnership, where
    such entry into or termination is of far-reaching importance to
    CNH; or
|
| |  | the acquisition or disposal, by CNH or any of CNHs
    subsidiaries, of an interest in the capital of a company valued
    at one-third or more of CNHs assets according to
    CNHs most recently adopted consolidated annual balance
    sheet.                                                                                       

Disclosure of Holdings


2 3


Limitations on Right to Hold or Vote Shares




106



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| |                       
| | ----------------------
| | C. Material Contracts.



1 4 1 4 pari
passu 1 4 1 4






| |   |                                                                            
| | - | ---------------------------------------------------------------------------
| |  | incur additional debt;                                                     
|
| |  | pay dividends on our capital stock or repurchase our capital
    stock;    
|
| |  | make certain investments;                                                  
|
| |  | enter into certain types of transactions with affiliates;                  
|
| |  | limit dividends or other payments by our restricted subsidiaries
    to us;
|
| |  | use assets as security in other transactions;                              
|
| |  | enter into sale and leaseback transactions; and                            
|
| |  | sell certain assets or merge with or into other companies.                 





| |                      
| | ---------------------
| | D. Exchange Controls.



107



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| |             
| | ------------
| | E. Taxation.

United States Federal Income Taxation












| |   |                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an individual citizen or resident of the United States for U.S.
    federal income tax purposes;                                                                               
|
| |  | a corporation created or organized under the laws of the United
    States or a state thereof;                                                                                 
|
| |  | an estate the income of which is subject to U.S. federal income
    taxation regardless of its source; or                                                                      
|
| |  | a trust subject to primary supervision of a U.S. court and the
    control of one or more U.S. persons or with a valid election in
    place to be treated as a domestic trust.



| |                      
| | ---------------------
| | Taxation of Dividends





108



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| |                          
| | -------------------------
| | Taxation of Capital Gains







| |                       
| | ----------------------
| | Backup Withholding Tax



109



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Netherlands Taxation










Netherlands Taxation of Non-Resident Holders of Shares




| |        
| | -------
| | General







| |   |                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | he is neither resident, nor deemed to be resident, in the
    Netherlands for purposes of Dutch income tax and corporation
    tax, as the case may be, and, in the case of an individual, has
    not elected to be treated as a resident of the Netherlands for
    Dutch income tax purposes;
|
| |  | in the case of an individual, his shares and income or capital
    gains derived therefrom have no connection with his past,
    present or future employment, if any; and                                                                                                                      
|
| |  | his shares do not form part, and are not deemed to form part, of
    a substantial interest (aanmerkelijk belang)in us within
    the meaning of Chapter 4 of the Dutch Income Tax Act 2001,
    unless such interest forms part of the assets of an enterprise.                                





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | such person alone or, in case such person is an individual,
    together with his partner, if any, has, directly or indirectly,
    the ownership of, our shares representing 5% or more of our
    total issued and outstanding capital (or the issued and
    outstanding capital of any class of our shares), or rights to
    acquire, directly or indirectly, shares, whether or not already
    issued, that represent at any time 5% or more of our total
    issued and outstanding capital (or the issued and outstanding
    capital of any class of our shares) or the

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| |   |                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | ownership of profit participating certificates that relate to 5%
    or more of our annual profit or to 5% or more of liquidation
    proceeds;                                                                                                                     
|
| |  | such persons partner or any of the relatives by blood or
    by marriage in the direct line (including foster children) of
    this person or of his partner has a substantial interest in us;                                                                     
|
| |  | such persons shares, profit participating certificates or
    rights to acquire our shares or profit participating
    certificates have been acquired by such person or are deemed to
    have been acquired by such person under a non-recognition
    provision.





| |                                  
| | ---------------------------------
| | Taxes on Income and Capital Gains





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | he derives profit from an enterprise, whether as an entrepreneur
    or pursuant to a co-entitlement to the net value of an
    enterprise, other than as an entrepreneur or a shareholder, in
    the case of an individual, or other than as a holder of
    securities, in other cases, which enterprise is either managed
    in The Netherlands or, in whole or in part, carried on through a
    permanent establishment of a permanent representative in The
    Netherlands and his shares are attributable to that enterprise;
    or
|
| | he (in the case of an individual) derives benefits from shares
    that are taxable as benefits from miscellaneous activities in
    The Netherlands.                                                                                                                                                                                                                                                                                                                                                                                         



| |                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------
| | The concept dividends distributed by CNH as used in
    this section includes, but is not limited to, the following:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | distributions in cash or in kind, deemed and constructive
    distributions (including, as a rule, consideration for the
    repurchase of our shares (other than a repurchase as a temporary
    investment) in excess of the average capital recognized as
    paid-in for Dutch dividend withholding tax purposes), and
    repayments of capital not recognized as paid-in for Dutch
    dividend withholding tax purposes;
|
| |  | liquidation proceeds and proceeds of redemption of our shares in
    excess of the average capital recognized as paid-in for Dutch
    dividend withholding tax purposes;                                                                                                                                                                                                                                                      
|
| |  | the par value of shares we issued to a holder of shares or an
    increase of the par value of shares, as the case may be, to the
    extent that it does not appear that a contribution, recognized
    for Dutch dividend withholding tax purposes, has been made or
    will be made; and                                                                                                                                   
|
| |  | partial repayment of capital, recognized as paid-in for Dutch
    dividend withholding tax purposes, if and to the extent that
    there are net profits, unless (a) the general meeting of
    our shareholders has resolved in advance to make such repayment
    and (b) the par value of the shares concerned has been
    reduced by an equal amount by way of an amendment to our
    articles of association.           





| |   |                                                                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | his investment activities go beyond the activities of an active
    portfolio investor, for instance in case of the use of insider
    knowledge or comparable forms of special knowledge; or                                                                     
|
| |  | he makes our shares available or is deemed to make our shares
    available, legally or in fact, directly or indirectly, to a
    connected party as described in articles 3.91 and 3.92 of the
    Dutch Income Tax Act 2001 under circumstances described there.

111



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| |                         
| | ------------------------
| | Dividend Withholding Tax









| |          
| | ---------
| | Reduction







| |                           
| | --------------------------
| | Gift and Inheritance Taxes





| |   |                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the donor or the deceased was resident or deemed to be resident
    in The Netherlands for purposes of gift or inheritance tax (as
    the case may be); or

112



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| |   |                                                                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the shares are or were attributable to an enterprise or part of
    an enterprise that the donor or the deceased carried on through
    a permanent establishment or a permanent representative in The
    Netherlands at the time of the gift or of the death of the
    deceased; or
|
| |  | the donor made a gift of shares, then becomes a resident or
    deemed resident of The Netherlands, and dies as a resident or
    deemed resident of The Netherlands within 180 days after
    the date of the gift.                                                                  







| |            
| | -----------
| | Capital Tax





| |                       
| | ----------------------
| | Other Taxes and Duties





| |                                
| | -------------------------------
| | F. Dividends and Paying Agents.





| |                         
| | ------------------------
| | G. Statement of Experts.





| |                         
| | ------------------------
| | H. Documents on Display.

20-F, 6-K 1-800-SEC-0330.




| |                           
| | --------------------------
| | I. Subsidiary Information.






Item 11. Quantitative and Qualitative Disclosures
About Market Risk




113



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| |                                                      
| | -----------------------------------------------------
| | Transaction Risk and Foreign Currency Risk Management













| |                                
| | -------------------------------
| | Effects of Currency Translation



114



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| |                              
| | -----------------------------
| | Interest Rate Risk Management









115



---



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| |                                
| | -------------------------------
| | Commodity Price Risk Management





| |                                                    
| | ---------------------------------------------------
| | Changes in Market Risk Exposure as Compared to 2004






Item 12. Description of Securities Other than
Equity Securities




PART II





Item 13. Defaults, Dividend Arrearages and
Delinquencies







Item 14. Material Modifications to the Rights of
Security Holders and Use of Proceeds


 







Item 15. Controls and Procedures


13a-15.







Item 16A. Audit Committee Financial Expert




116



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Item 16B. Code of Ethics







Item 16C. Principal Accountant Fees and Services




|                   |  |      |           |  |      |   |           | 
|------------------ |  | ---- | --------- |  | ---- | - | --------- | 
|                   |  | 2005 |           |  | 2004 |  
|                   |  |      |           |  |      |  
|Audit Fees         |  | $    | 4,304,000 |  |      | $ | 4,226,100 | 
|Audit-Related Fees |  |      | 886,600   |  |      |   | 869,900   | 
|Tax Fees           |  |      | 1,386,800 |  |      |   | 1,100,400 | 
|All Other Fees     |  |      |          |  |      |   | 80,500    | 
|                   |  |      |           |  |      |  
|Total              |  | $    | 6,577,400 |  |      | $ | 6,276,900 | 
|                   |  |      |           |  |      |  



Audit Committees pre-approval policies and
procedures




117



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Item 16D. Exemptions from the Listing Standards for
Audit Committees







Item 16E. Purchase of Equity Securities by the
Issuer and Affiliated Purchasers




PART III





Item 17. Financial Statements







Item 18. Financial Statements


INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


CNH GLOBAL N.V. AND SUBSIDIARIES


|                                                                                                                        |  |      |     | 
|----------------------------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|                                                                                                                        |  | Page |    
|                                                                                                                        |  |      |    
|Report of Independent Registered Public
    Accounting Firm                                                             |  |      | F-2 | 
|Consolidated statements of operations for
    the years ended December 31, 2005, 2004, and 2003                         |  |      | F-3 | 
|Consolidated balance sheets as of
    December 31, 2005 and 2004                                                        |  |      | F-4 | 
|Consolidated statements of cash flows for
    the years ended December 31, 2005, 2004 and 2003                          |  |      | F-5 | 
|Consolidated statements of changes in
    shareholders equity for the years ended December 31,
    2005, 2004 and 2002 |  |      | F-6 | 
|Notes to consolidated financial
    statements                                                                          |  |      | F-7 | 




Item 19. Exhibits


20-F


118



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##### Table of Contents






INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


CNH GLOBAL N.V. AND SUBSIDIARIES


|                                                                                                                        |  |      |     | 
|----------------------------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|                                                                                                                        |  | Page |    
|                                                                                                                        |  |      |    
|Report of Independent Registered Public
    Accounting Firm                                                             |  |      | F-2 | 
|Consolidated statements of operations for
    the years ended December 31, 2005, 2004, and 2003                         |  |      | F-3 | 
|Consolidated balance sheets as of
    December 31, 2005 and 2004                                                        |  |      | F-4 | 
|Consolidated statements of cash flows for
    the years ended December 31, 2005, 2004 and 2003                          |  |      | F-5 | 
|Consolidated statements of changes in
    shareholders equity for the years ended December 31,
    2005, 2004 and 2003 |  |      | F-6 | 
|Notes to consolidated financial
    statements                                                                          |  |      | F-7 | 

F-1



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##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












/s/ Deloitte & Touche
LLP






F-2



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##### Table of Contents



CNH GLOBAL N.V.





CONSOLIDATED STATEMENTS OF OPERATIONS


For the Years Ended December 31, 2005, 2004, and 2003


(and Supplemental Information)


|                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |     |     |  |   |     |     |  |   |     |     | 
|--------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------- | ------------------------------------ | ------ | ------ | -------------------- | - | ------ | ------------------------ |  | - | ------ | ------ |  | ---- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ |  | ---- | --- | --- |  | - | --- | --- |  | - | --- | --- | 
|                                                                                                                            |                                             |                                      |        |        |                      |   |        | Supplemental Information | 
|                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          | 
|                                                                                                                            |                                             | Consolidated                         |        |        | Equipment Operations |   |        | Financial Services       | 
|                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          | 
|                                                                                                                            |                                             | 2005                                 |        |        | 2004                 |   |        | 2003                     |  |   | 2005   |        |  | 2004 |        |        | 2003 |   |        | 2005   |  |   | 2004   |        |  | 2003 |    
|                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |    
|                                                                                                                            |                                             | (in millions, except per share data) |       
|Revenues:                                                                                                                   |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                            | Net sales                                   |                                      | $      | 11,806 |                      |   | $      | 11,545                   |  |   | $      | 10,069 |  |      | $      | 11,806 |      |   | $      | 11,545 |  |   | $      | 10,069 |  |      | $   |    |  |   | $   |    |  |   | $   |    | 
|                                                                                                                            | Finance and interest income                 |                                      |        | 769    |                      |   |        | 634                      |  |   |        | 597    |  |      |        | 129    |      |   |        | 82     |  |   |        | 83     |  |      |     | 801 |  |   |     | 672 |  |   |     | 621 | 
|                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |    
|                                                                                                                            |                                             |                                      | 12,575 |        |                      |   | 12,179 |                          |  |   | 10,666 |        |  |      | 11,935 |        |      |   | 11,627 |        |  |   | 10,152 |        |  |      | 801 |     |  |   | 672 |     |  |   | 621 |    
|Costs and Expenses:                                                                                                         |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                            | Cost of goods sold                          |                                      |        | 9,934  |                      |   |        | 9,782                    |  |   |        | 8,590  |  |      |        | 9,934  |      |   |        | 9,782  |  |   |        | 8,590  |  |      |     |    |  |   |     |    |  |   |     |    | 
|                                                                                                                            | Selling, general and administrative         |                                      |        | 1,184  |                      |   |        | 1,110                    |  |   |        | 1,042  |  |      |        | 971    |      |   |        | 929    |  |   |        | 839    |  |      |     | 213 |  |   |     | 181 |  |   |     | 203 | 
|                                                                                                                            | Research, development and engineering       |                                      |        | 296    |                      |   |        | 267                      |  |   |        | 259    |  |      |        | 296    |      |   |        | 267    |  |   |        | 259    |  |      |     |    |  |   |     |    |  |   |     |    | 
|                                                                                                                            | Restructuring                               |                                      |        | 73     |                      |   |        | 104                      |  |   |        | 271    |  |      |        | 71     |      |   |        | 102    |  |   |        | 268    |  |      |     | 2   |  |   |     | 2   |  |   |     | 3   | 
|                                                                                                                            | Interest expense  Fiat affiliates          |                                      |        | 99     |                      |   |        | 88                       |  |   |        | 113    |  |      |        | 72     |      |   |        | 63     |  |   |        | 85     |  |      |     | 27  |  |   |     | 25  |  |   |     | 28  | 
|                                                                                                                            | Interest expense  other                    |                                      |        | 452    |                      |   |        | 404                      |  |   |        | 368    |  |      |        | 269    |      |   |        | 255    |  |   |        | 236    |  |      |     | 240 |  |   |     | 183 |  |   |     | 182 | 
|                                                                                                                            | Interest compensation to Financial Services |                                      |        |       |                      |   |        |                         |  |   |        |       |  |      |        | 159    |      |   |        | 113    |  |   |        | 79     |  |      |     |    |  |   |     |    |  |   |     |    | 
|                                                                                                                            | Other, net                                  |                                      |        | 280    |                      |   |        | 265                      |  |   |        | 241    |  |      |        | 188    |      |   |        | 186    |  |   |        | 149    |  |      |     | 36  |  |   |     | 52  |  |   |     | 71  | 
|                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |    
|                                                                                                                            |                                             |                                      | 12,318 |        |                      |   | 12,020 |                          |  |   | 10,884 |        |  |      | 11,960 |        |      |   | 11,697 |        |  |   | 10,505 |        |  |      | 518 |     |  |   | 443 |     |  |   | 487 |    
|                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |    
|Income (loss) before taxes, minority interest and equity in
    income (loss) of unconsolidated subsidiaries and affiliates |                                             |                                      | 257    |        |                      |   | 159    |                          |  |   | (218   | )      |  |      | (25    | )      |      |   | (70    | )      |  |   | (353   | )      |  |      | 283 |     |  |   | 229 |     |  |   | 134 |    
|Income tax provision (benefit)                                                                                              |                                             |                                      | 116    |        |                      |   | 39     |                          |  |   | (49    | )      |  |      | 24     |        |      |   | (39    | )      |  |   | (97    | )      |  |      | 92  |     |  |   | 78  |     |  |   | 47  |    
|Minority interest                                                                                                           |                                             |                                      | 26     |        |                      |   | 23     |                          |  |   | 7      |        |  |      | 27     |        |      |   | 23     |        |  |   | 7      |        |  |      |    |     |  |   |    |     |  |   |    |    
|Equity in income (loss) of unconsolidated subsidiaries and
    affiliates:                                                  |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                            | Financial Services                          |                                      |        | 9      |                      |   |        | 8                        |  |   |        | 6      |  |      |        | 200    |      |   |        | 159    |  |   |        | 93     |  |      |     | 9   |  |   |     | 8   |  |   |     | 6   | 
|                                                                                                                            | Equipment Operations                        |                                      |        | 39     |                      |   |        | 20                       |  |   |        | 13     |  |      |        | 39     |      |   |        | 20     |  |   |        | 13     |  |      |     |    |  |   |     |    |  |   |     |    | 
|                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |    
|Net income (loss)                                                                                                           |                                             | $                                    | 163    |        |                      | $ | 125    |                          |  | $ | (157   | )      |  | $    | 163    |        |      | $ | 125    |        |  | $ | (157   | )      |  | $    | 200 |     |  | $ | 159 |     |  | $ | 93  |    
|                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |    
|Per Share Data:                                                                                                             |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |     |     |  |   |     |     |  |   |     |    
|Basic earnings (loss) per share                                                                                             |                                             | $                                    | 0.77   |        |                      | $ | 0.94   |                          |  | $ | (1.19  | )      |  |      |        |        |      |   |        |        |  |   |        |        |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |    
|Diluted earnings (loss) per share                                                                                           |                                             | $                                    | 0.70   |        |                      | $ | 0.54   |                          |  | $ | (1.19  | )      |  |      |        |        |      |   |        |        |  |   |        |        |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          |  |   |        |        |  |      |        |        |      |   |        |        |  |   |        |        |  |      |    



F-3



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##### Table of Contents



CNH GLOBAL N.V.





CONSOLIDATED BALANCE SHEETS


As of December 31, 2005 and 2004


(and Supplemental Information)


|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        |  |       |       |       |  |       |       |       | 
|--------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------- | ----- | --------- | ---------- | ------------------------ | --------- | -------- | ------ |  | ----- | ----- | ------ | ---- | ----- | ------ | ------ |  | ----- | ----- | ----- |  | ----- | ----- | ----- | 
|                                        |                                                                                                                                                          |                                  |       |           |            | Supplemental Information |          
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |          
|                                        |                                                                                                                                                          |                                  |       | Equipment |            |                          | Financial |         
|                                        |                                                                                                                                                          | Consolidated                     |       |           | Operations |                          |           | Services |       
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |       
|                                        |                                                                                                                                                          | 2005                             |       |           | 2004       |                          |           | 2005     |        |  | 2004  |       |        | 2005 |       |        | 2004   | 
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|                                        |                                                                                                                                                          | (in millions, except share data) |      
|ASSETS                                  |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        |  |       |       |       |  |       |      
|Current Assets:                         |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        |  |       |       |       |  |       |      
|                                        | Cash and cash equivalents                                                                                                                                |                                  | $     | 1,245     |            |                          | $         | 931      |        |  | $     | 858   |        |      | $     | 637    |        |  | $     | 387   |       |  | $     | 294   |      
|                                        | Deposits in Fiat affiliates cash management pools                                                                                                        |                                  |       | 580       |            |                          |           | 1,151    |        |  |       | 578   |        |      |       | 1,136  |        |  |       | 2     |       |  |       | 15    |      
|                                        | Accounts and notes receivable, net                                                                                                                       |                                  |       | 3,192     |            |                          |           | 3,171    |        |  |       | 1,146 |        |      |       | 1,493  |        |  |       | 2,118 |       |  |       | 1,772 |      
|                                        | Intersegment notes receivable                                                                                                                            |                                  |       |          |            |                          |           |         |        |  |       | 1,067 |        |      |       | 414    |        |  |       |      |       |  |       | 24    |      
|                                        | Inventories, net                                                                                                                                         |                                  |       | 2,466     |            |                          |           | 2,515    |        |  |       | 2,466 |        |      |       | 2,515  |        |  |       |      |       |  |       |      |      
|                                        | Deferred income taxes                                                                                                                                    |                                  |       | 534       |            |                          |           | 374      |        |  |       | 436   |        |      |       | 301    |        |  |       | 98    |       |  |       | 73    |      
|                                        | Prepayments and other                                                                                                                                    |                                  |       | 99        |            |                          |           | 93       |        |  |       | 95    |        |      |       | 91     |        |  |       | 4     |       |  |       | 2     |      
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|                                        |                                                                                                                                                          | Total current assets             |       |           | 8,116      |                          |           |          | 8,235  |  |       |       | 6,646  |      |       |        | 6,587  |  |       |       | 2,609 |  |       |       | 2,180 | 
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|Long-term receivables                   |                                                                                                                                                          |                                  | 2,649 |           |            |                          | 2,724     |          |        |  | 97    |       |        |      | 103   |        |        |  | 2,552 |       |       |  | 2,621 |      
|Intersegment long-term notes receivable |                                                                                                                                                          |                                  |      |           |            |                          |          |          |        |  |      |       |        |      | 700   |        |        |  |      |       |       |  |      |      
|Property, plant and equipment, net      |                                                                                                                                                          |                                  | 1,311 |           |            |                          | 1,478     |          |        |  | 1,303 |       |        |      | 1,470 |        |        |  | 8     |       |       |  | 8     |      
|Other Assets:                           |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        |  |       |       |       |  |       |      
|                                        | Investments in unconsolidated subsidiaries and affiliates                                                                                                |                                  |       | 449       |            |                          |           | 457      |        |  |       | 353   |        |      |       | 373    |        |  |       | 96    |       |  |       | 84    |      
|                                        | Investment in Financial Services                                                                                                                         |                                  |       |          |            |                          |           |         |        |  |       | 1,587 |        |      |       | 1,419  |        |  |       |      |       |  |       |      |      
|                                        | Equipment on operating leases, net                                                                                                                       |                                  |       | 180       |            |                          |           | 215      |        |  |       |      |        |      |       |       |        |  |       | 180   |       |  |       | 215   |      
|                                        | Goodwill                                                                                                                                                 |                                  |       | 2,388     |            |                          |           | 2,402    |        |  |       | 2,243 |        |      |       | 2,258  |        |  |       | 145   |       |  |       | 144   |      
|                                        | Intangible assets, net                                                                                                                                   |                                  |       | 775       |            |                          |           | 834      |        |  |       | 775   |        |      |       | 834    |        |  |       |      |       |  |       |      |      
|                                        | Other                                                                                                                                                    |                                  |       | 1,450     |            |                          |           | 1,735    |        |  |       | 955   |        |      |       | 1,250  |        |  |       | 495   |       |  |       | 526   |      
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|                                        |                                                                                                                                                          | Total other assets               |       |           | 5,242      |                          |           |          | 5,643  |  |       |       | 5,913  |      |       |        | 6,134  |  |       |       | 916   |  |       |       | 969   | 
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|                                        |                                                                                                                                                          | Total                            |       | $         | 17,318     |                          |           | $        | 18,080 |  |       | $     | 13,959 |      |       | $      | 14,994 |  |       | $     | 6,085 |  |       | $     | 5,778 | 
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|LIABILITIES AND SHAREHOLDERS EQUITY    |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        |  |       |       |       |  |       |      
|Current Liabilities:                    |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        |  |       |       |       |  |       |      
|                                        | Current maturities of long-term debt  Fiat affiliates                                                                                                   |                                  | $     | 413       |            |                          | $         | 90       |        |  | $     | 279   |        |      | $     | 19     |        |  | $     | 134   |       |  | $     | 71    |      
|                                        | Current maturities of long-term debt  other                                                                                                             |                                  |       | 646       |            |                          |           | 796      |        |  |       | 106   |        |      |       | 238    |        |  |       | 540   |       |  |       | 558   |      
|                                        | Short-term debt  Fiat affiliates                                                                                                                        |                                  |       | 565       |            |                          |           | 672      |        |  |       | 479   |        |      |       | 331    |        |  |       | 86    |       |  |       | 341   |      
|                                        | Short-term debt  other                                                                                                                                  |                                  |       | 957       |            |                          |           | 1,385    |        |  |       | 347   |        |      |       | 733    |        |  |       | 610   |       |  |       | 652   |      
|                                        | Intersegment short-term debt and current maturities of
    intersegment long-term debt                                                                   |                                  |       |          |            |                          |           |         |        |  |       |      |        |      |       | 24     |        |  |       | 1,067 |       |  |       | 414   |      
|                                        | Accounts payable                                                                                                                                         |                                  |       | 1,609     |            |                          |           | 1,657    |        |  |       | 1,641 |        |      |       | 1,679  |        |  |       | 32    |       |  |       | 66    |      
|                                        | Restructuring liability                                                                                                                                  |                                  |       | 47        |            |                          |           | 47       |        |  |       | 45    |        |      |       | 46     |        |  |       | 2     |       |  |       | 1     |      
|                                        | Other accrued liabilities                                                                                                                                |                                  |       | 1,795     |            |                          |           | 1,718    |        |  |       | 1,600 |        |      |       | 1,521  |        |  |       | 203   |       |  |       | 204   |      
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|                                        |                                                                                                                                                          | Total current liabilities        |       |           | 6,032      |                          |           |          | 6,365  |  |       |       | 4,497  |      |       |        | 4,591  |  |       |       | 2,674 |  |       |       | 2,307 | 
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|Long-term debt  Fiat affiliates        |                                                                                                                                                          |                                  | 133   |           |            |                          | 1,021     |          |        |  | 95    |       |        |      | 873   |        |        |  | 38    |       |       |  | 148   |      
|Long-term debt  other                  |                                                                                                                                                          |                                  | 3,573 |           |            |                          | 2,999     |          |        |  | 1,916 |       |        |      | 1,954 |        |        |  | 1,657 |       |       |  | 1,045 |      
|Intersegment long-term debt             |                                                                                                                                                          |                                  |      |           |            |                          |          |          |        |  |      |       |        |      |      |        |        |  |      |       |       |  | 700   |      
|Other Liabilities:                      |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        |  |       |       |       |  |       |      
|                                        | Pension, postretirement and postemployment benefits                                                                                                      |                                  |       | 2,132     |            |                          |           | 2,224    |        |  |       | 2,116 |        |      |       | 2,204  |        |  |       | 16    |       |  |       | 20    |      
|                                        | Other                                                                                                                                                    |                                  |       | 305       |            |                          |           | 336      |        |  |       | 192   |        |      |       | 238    |        |  |       | 113   |       |  |       | 138   |      
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|                                        |                                                                                                                                                          | Total other liabilities          |       |           | 2,437      |                          |           |          | 2,560  |  |       |       | 2,308  |      |       |        | 2,442  |  |       |       | 129   |  |       |       | 158   | 
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|Commitments and contingencies (Note 15) |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        |  |       |       |       |  |       |      
|Minority interest                       |                                                                                                                                                          |                                  | 91    |           |            |                          | 106       |          |        |  | 91    |       |        |      | 105   |        |        |  |      |       |       |  | 1     |      
|Shareholders equity:                   |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        |  |       |       |       |  |       |      
|                                        | Preference shares, 2.25 par value; authorized 200,000,000 shares
    in 2005 and 2004; issued 8,000,000 shares in 2005 and 2004                         |                                  |       | 19        |            |                          |           | 19       |        |  |       | 19    |        |      |       | 19     |        |  |       |      |       |  |       |      |      
|                                        | Preference shares, $1.00 par value; authorized and issued
    74,800,000 shares in 2005                                                                  |                                  |       |          |            |                          |           |         |        |  |       |      |        |      |       |       |        |  |       | 35    |       |  |       |      |      
|                                        | Common shares, 2.25 par value; authorized 400,000,000 shares
    in 2005 and 2004, issued 135,020,437 shares in 2005 and
    133,937,488 shares in 2004 |                                  |       | 315       |            |                          |           | 312      |        |  |       | 315   |        |      |       | 312    |        |  |       | 192   |       |  |       | 170   |      
|                                        | Paid-in capital                                                                                                                                          |                                  |       | 6,348     |            |                          |           | 6,328    |        |  |       | 6,348 |        |      |       | 6,328  |        |  |       | 1,193 |       |  |       | 1,186 |      
|                                        | Treasury stock, 154,813 shares in 2005 and 2004, at cost                                                                                                 |                                  |       | (8        | )          |                          |           | (8       | )      |  |       | (8    | )      |      |       | (8     | )      |  |       |      |       |  |       |      |      
|                                        | Retained earnings (deficit)                                                                                                                              |                                  |       | (996      | )          |                          |           | (1,125   | )      |  |       | (996  | )      |      |       | (1,125 | )      |  |       | 83    |       |  |       | (12   | )    
|                                        | Accumulated other comprehensive income (loss)                                                                                                            |                                  |       | (626      | )          |                          |           | (496     | )      |  |       | (626  | )      |      |       | (496   | )      |  |       | 84    |       |  |       | 75    |      
|                                        | Unearned compensation on restricted shares and options                                                                                                   |                                  |       |          |            |                          |           | (1       | )      |  |       |      |        |      |       | (1     | )      |  |       |      |       |  |       |      |      
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|                                        |                                                                                                                                                          | Total shareholders equity       |       |           | 5,052      |                          |           |          | 5,029  |  |       |       | 5,052  |      |       |        | 5,029  |  |       |       | 1,587 |  |       |       | 1,419 | 
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 
|                                        |                                                                                                                                                          | Total                            |       | $         | 17,318     |                          |           | $        | 18,080 |  |       | $     | 13,959 |      |       | $      | 14,994 |  |       | $     | 6,085 |  |       | $     | 5,778 | 
|                                        |                                                                                                                                                          |                                  |       |           |            |                          |           |          |        |  |       |       |        |      |       |        |        | 



F-4



---



##### Table of Contents



CNH GLOBAL N.V.





CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Years Ended December 31, 2005, 2004 and 2003


(and Supplemental Information)


|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |      |        |     |      |      |        |     |      |      |        |     |      |  
|------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------ | ----------------------------------------------------------- | ------ | -------------------- | ---- | ---- | ------------------------ | --- | ---- | ---- | ------ | --- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | --- | ---- | ------ | ----- | ---- | ---- | ---- | ------ | --- | ---- | ---- | ------ | --- | ---- | ---- | ------ | --- | ---- | -
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      | Supplemental Information |    
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |    
|                                                                         |                                                                                                     | Consolidated                                                       |                                                             |        | Equipment Operations |      |      | Financial Services       |    
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |    
|                                                                         |                                                                                                     | 2005                                                               |                                                             |        | 2004                 |      |      | 2003                     |     |      | 2005 |        |     | 2004 |      |      | 2003 |      |      | 2005 |     |      | 2004   |       |      | 2003 |     
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |     
|                                                                         |                                                                                                     | (in millions)                                                      |                                                            
|Operating activities:                                                    |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |      |        |     |      |      |        |     |      |      |       
|                                                                         | Net income (loss)                                                                                   |                                                                    | $                                                           | 163    |                      |      | $    | 125                      |     |      | $    | (157   | )   |      | $    | 163  |      |      | $    | 125  |     |      | $      | (157  | )    |      | $    | 200    |     |      | $    | 159    |     |      | $    | 93     |    
|                                                                         | Adjustments to reconcile net income (loss) to net cash
    provided (used) by operating activities: |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |      |        |     |      |      |        |     |      |      |        |    
|                                                                         |                                                                                                     | Depreciation and amortization                                      |                                                             |        | 309                  |      |      |                          | 325 |      |      |        | 346 |      |      |      | 263  |      |      |      | 261 |      |        |       | 246  |      |      |        | 46  |      |      |        | 64  |      |      |        | 100 |     
|                                                                         |                                                                                                     | Deferred income tax expense (benefit)                              |                                                             |        | 132                  |      |      |                          | 4   |      |      |        | (72 | )    |      |      | 169  |      |      |      | 64  |      |        |       | (125 | )    |      |        | (37 | )    |      |        | (60 | )    |      |        | 53  |     
|                                                                         |                                                                                                     | (Gain) loss on disposal of fixed assets                            |                                                             |        | (1                   | )    |      |                          | (21 | )    |      |        | (1  | )    |      |      | (1   | )    |      |      | (21 | )    |        |       | (1   | )    |      |        |    |      |      |        |    |      |      |        |    |     
|                                                                         |                                                                                                     | Undistributed (earnings) losses of unconsolidated
    subsidiaries |                                                             |        | (7                   | )    |      |                          | 2   |      |      |        | 10  |      |      |      | (138 | )    |      |      | (43 | )    |        |       | (61  | )    |      |        | (9  | )    |      |        | (5  | )    |      |        |    |     
|                                                                         |                                                                                                     | Changes in operating assets and liabilities:                       |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |      |        |     |      |      |        |     |      |      |        |     |     
|                                                                         |                                                                                                     |                                                                    | (Increase) decrease in intersegment activities              |        |                      |     |      |                          |     |     |      |        |     |     |      |      |      | 56   |      |      |     | (97  | )      |       |      | 138  |      |        |     | (56  | )    |        |     | 97   |      |        |     | (138 | )
|                                                                         |                                                                                                     |                                                                    | (Increase) decrease in wholesale and other notes receivable |        |                      | (197 | )    |                          |     | 911  |      |        |     | 593  |      |      |      | 271  |      |      |     | 712  |        |       |      | (26  | )    |        |     | (468 | )    |        |     | 199  |      |        |     | 619  |  
|                                                                         |                                                                                                     |                                                                    | (Increase) decrease in inventories                          |        |                      | (102 | )    |                          |     | 85   |      |        |     | (139 | )    |      |      | (102 | )    |      |     | 85   |        |       |      | (139 | )    |        |     |     |      |        |     |     |      |        |     |     |  
|                                                                         |                                                                                                     |                                                                    | (Increase) decrease in prepayments and other current assets |        |                      | (10  | )    |                          |     | (10  | )    |        |     | 36   |      |      |      | (8   | )    |      |     | (12  | )      |       |      | 34   |      |        |     | (2   | )    |        |     | 2    |      |        |     | 2    |  
|                                                                         |                                                                                                     |                                                                    | (Increase) decrease in other assets                         |        |                      | (42  | )    |                          |     | (369 | )    |        |     | (14  | )    |      |      | (145 | )    |      |     | (122 | )      |       |      | (17  | )    |        |     | 103  |      |        |     | (247 | )    |        |     | 3    |  
|                                                                         |                                                                                                     |                                                                    | Increase (decrease) in accounts payable                     |        |                      | 103  |      |                          |     | (59  | )    |        |     | (4   | )    |      |      | 95   |      |      |     | (58  | )      |       |      | (5   | )    |        |     | 8    |      |        |     | (1   | )    |        |     | 1    |  
|                                                                         |                                                                                                     |                                                                    | Increase (decrease) in other accrued liabilities            |        |                      | 89   |      |                          |     | 26   |      |        |     | (173 | )    |      |      | 118  |      |      |     | (10  | )      |       |      | (213 | )    |        |     | (29  | )    |        |     | 36   |      |        |     | 40   |  
|                                                                         |                                                                                                     |                                                                    | Increase (decrease) in other liabilities                    |        |                      | 71   |      |                          |     | (24  | )    |        |     | 204  |      |      |      | 63   |      |      |     | (7   | )      |       |      | 209  |      |        |     | 8    |      |        |     | (17  | )    |        |     | (5   | )
|                                                                         | Other, net                                                                                          |                                                                    |                                                             | 41     |                      |      |      | (25                      | )   |      |      | 167    |     |      |      | 45   |      |      |      | 2    |     |      |        | 183   |      |      |      | (4     | )   |      |      | (27    | )   |      |      | (16    | )  
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |     
|Net cash (used) provided by operating activities                         |                                                                                                     |                                                                    | 549                                                         |        |                      |      | 970  |                          |     |      | 796  |        |     |      | 849  |      |      |      | 879  |      |     |      | 66     |       |      |      | (240 | )      |     |      | 200  |        |     |      | 752  |       
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |     
|Investing activities:                                                    |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |      |        |     |      |      |        |     |      |      |       
|                                                                         | Acquisitions and investments, net of cash acquired                                                  |                                                                    |                                                             | (19    | )                    |      |      | (38                      | )   |      |      | (40    | )   |      |      | (29  | )    |      |      | (113 | )   |      |        | (83   | )    |      |      | (3     | )   |      |      | (10    | )   |      |      | (11    | )  
|                                                                         | Additions to retail receivables                                                                     |                                                                    |                                                             | (5,351 | )                    |      |      | (5,183                   | )   |      |      | (4,463 | )   |      |      |     |      |      |      |     |     |      |        |      |      |      |      | (5,351 | )   |      |      | (5,183 | )   |      |      | (4,463 | )  
|                                                                         | Proceeds from new retail securitizations                                                            |                                                                    |                                                             | 2,799  |                      |      |      | 2,218                    |     |      |      | 2,857  |     |      |      |     |      |      |      |     |     |      |        |      |      |      |      | 2,799  |     |      |      | 2,218  |     |      |      | 2,857  |    
|                                                                         | Collections of retail receivables                                                                   |                                                                    |                                                             | 2,674  |                      |      |      | 2,281                    |     |      |      | 1,263  |     |      |      |     |      |      |      |     |     |      |        |      |      |      |      | 2,674  |     |      |      | 2,281  |     |      |      | 1,263  |    
|                                                                         | Collections of retained interests in securitized retail
    receivables                             |                                                                    |                                                             | 49     |                      |      |      | 115                      |     |      |      | 151    |     |      |      |     |      |      |      |     |     |      |        |      |      |      |      | 49     |     |      |      | 115    |     |      |      | 151    |    
|                                                                         | Proceeds from sale of businesses and assets                                                         |                                                                    |                                                             | 124    |                      |      |      | 255                      |     |      |      | 212    |     |      |      | 19   |      |      |      | 93   |     |      |        | 54    |      |      |      | 105    |     |      |      | 162    |     |      |      | 158    |    
|                                                                         | Expenditures for property, plant and equipment                                                      |                                                                    |                                                             | (155   | )                    |      |      | (180                     | )   |      |      | (194   | )   |      |      | (152 | )    |      |      | (179 | )   |      |        | (192  | )    |      |      | (3     | )   |      |      | (1     | )   |      |      | (2     | )  
|                                                                         | Expenditures for equipment on operating leases                                                      |                                                                    |                                                             | (111   | )                    |      |      | (81                      | )   |      |      | (51    | )   |      |      |     |      |      |      |     |     |      |        |      |      |      |      | (111   | )   |      |      | (81    | )   |      |      | (51    | )  
|                                                                         | (Deposits in) withdrawals from Fiat affiliates cash management
    pools                            |                                                                    |                                                             | 506    |                      |      |      | 217                      |     |      |      | (715   | )   |      |      | 493  |      |      |      | 221  |     |      |        | (915  | )    |      |      | 13     |     |      |      | (4     | )   |      |      | 200    |    
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |     
|Net cash (used) provided by investing activities                         |                                                                                                     |                                                                    | 516                                                         |        |                      |      | (396 | )                        |     |      | (980 | )      |     |      | 331  |      |      |      | 22   |      |     |      | (1,136 | )     |      |      | 172  |        |     |      | (503 | )      |     |      | 102  |       
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |     
|Financing activities:                                                    |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |      |        |     |      |      |        |     |      |      |       
|                                                                         | Intersegment activity                                                                               |                                                                    |                                                             |       |                      |      |      |                         |     |      |      |       |     |      |      | 23   |      |      |      | (72  | )   |      |        | 484   |      |      |      | (23    | )   |      |      | 72     |     |      |      | (484   | )  
|                                                                         | Proceeds from issuance of long-term debt  Fiat
    affiliates                                      |                                                                    |                                                             | 62     |                      |      |      | 5                        |     |      |      | 147    |     |      |      | 62   |      |      |      | 5    |     |      |        | 147   |      |      |      |       |     |      |      |       |     |      |      |       |    
|                                                                         | Proceeds from issuance of long-term debt  other                                                    |                                                                    |                                                             | 839    |                      |      |      | 1,452                    |     |      |      | 1,282  |     |      |      | 56   |      |      |      | 497  |     |      |        | 1,053 |      |      |      | 783    |     |      |      | 955    |     |      |      | 229    |    
|                                                                         | Payment of long-term debt  Fiat affiliates                                                         |                                                                    |                                                             | (627   | )                    |      |      | (634                     | )   |      |      | (16    | )   |      |      | (580 | )    |      |      | (490 | )   |      |        |      |      |      |      | (47    | )   |      |      | (144   | )   |      |      | (16    | )  
|                                                                         | Payment of long-term debt  other                                                                   |                                                                    |                                                             | (566   | )                    |      |      | (923                     | )   |      |      | (800   | )   |      |      | (215 | )    |      |      | (130 | )   |      |        | (535  | )    |      |      | (351   | )   |      |      | (793   | )   |      |      | (265   | )  
|                                                                         | Net increase (decrease) in short-term revolving credit
    facilities                               |                                                                    |                                                             | (447   | )                    |      |      | (143                     | )   |      |      | (23    | )   |      |      | (264 | )    |      |      | (530 | )   |      |        | 306   |      |      |      | (183   | )   |      |      | 387    |     |      |      | (329   | )  
|                                                                         | Issuance of common shares                                                                           |                                                                    |                                                             |       |                      |      |      |                         |     |      |      |       |     |      |      |     |      |      |      |     |     |      |        |      |      |      |      |       |     |      |      |       |     |      |      | 54     |    
|                                                                         | Dividends paid                                                                                      |                                                                    |                                                             | (34    | )                    |      |      | (33                      | )   |      |      | (33    | )   |      |      | (34  | )    |      |      | (33  | )   |      |        | (33   | )    |      |      | (60    | )   |      |      | (109   | )   |      |      | (22    | )  
|                                                                         | Other, net                                                                                          |                                                                    |                                                             |       |                      |      |      | (1                       | )   |      |      | (19    | )   |      |      |     |      |      |      | (1   | )   |      |        | (19   | )    |      |      | 13     |     |      |      | 85     |     |      |      |       |    
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |     
|Net cash (used) provided by financing activities                         |                                                                                                     |                                                                    | (773                                                        | )      |                      |      | (277 | )                        |     |      | 538  |        |     |      | (952 | )    |      |      | (754 | )    |     |      | 1,403  |       |      |      | 132  |        |     |      | 453  |        |     |      | (833 | )     
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |     
|Effect of foreign exchange rate changes on cash and cash
    equivalents |                                                                                                     |                                                                    | 22                                                          |        |                      |      | 15   |                          |     |      | 34   |        |     |      | (7   | )    |      |      | 4    |      |     |      | 20     |       |      |      | 29   |        |     |      | 11   |        |     |      | 14   |       
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |     
|Increase (decrease) in cash and cash equivalents                         |                                                                                                     |                                                                    | 314                                                         |        |                      |      | 312  |                          |     |      | 388  |        |     |      | 221  |      |      |      | 151  |      |     |      | 353    |       |      |      | 93   |        |     |      | 161  |        |     |      | 35   |       
|Cash and cash equivalents, beginning of year                             |                                                                                                     |                                                                    | 931                                                         |        |                      |      | 619  |                          |     |      | 231  |        |     |      | 637  |      |      |      | 486  |      |     |      | 133    |       |      |      | 294  |        |     |      | 133  |        |     |      | 98   |       
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |     
|Cash and cash equivalents, end of year                                   |                                                                                                     | $                                                                  | 1,245                                                       |        |                      | $    | 931  |                          |     | $    | 619  |        |     | $    | 858  |      |      | $    | 637  |      |     | $    | 486    |       |      | $    | 387  |        |     | $    | 294  |        |     | $    | 133  |       
|                                                                         |                                                                                                     |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |     |      |      |      |      |      |      |      |     |      |        |       |      |      |     





F-5



---



##### Table of Contents



CNH GLOBAL N.V.





CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS
EQUITY


For the Years Ended December 31, 2005, 2004 and 2003


|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |    |   |   |   |       |      |     |   |   |      |     |     | 
|----------------------------------------------------------------- | -------------------------------------------------------------------------------- | ------------------------------------------- | ----- | - | ------ | - | --- | ------- | - | -------- | -------- | ----------- | ------------- | --------- | -- | - | ------ | - | ------ | ------------- | - | - | ----- | --- | ------ | ------ | -- | - | - | - | ----- | ---- | --- | - | - | ---- | --- | --- | 
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          | Accumulated |               |           |    |   |        |   |       
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          | Other       |               |           |    |   |        |   |       
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   | Retained |          |             | Comprehensive |           |    |   |        |   |        | Comprehensive |  
|                                                                  |                                                                                  | Preference                                  |       |   | Common |   |     | Paid-in |   |          | Treasury |             |               | Earnings  |    |   | Income |   |        | Unearned      |   |   |       |     | Income |       
|                                                                  |                                                                                  | Shares                                      |       |   | Shares |   |     | Capital |   |          | Stock    |             |               | (Deficit) |    |   | (Loss) |   |        | Compensation  |   |   | Total |     |        | (Loss) |   
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |   
|                                                                  |                                                                                  | (in millions)                               |      
|Balance, January 1, 2003                                          |                                                                                  | $                                           |      |   |        | $ | 305 |         |   | $        | 4,327    |             |               | $         | (7 | ) |        | $ | (1,027 | )             |   | $ | (835  | )   |        | $      | (2 | ) |   | $ | 2,761 |      |     |   |   |     
|Comprehensive income:                                             |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |    |   |   |   |       |      |     |   |   |     
|                                                                  | Net loss                                                                         |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        | (157          | ) |   |       |    |        |        |    |  |   |   |       | (157 | )   |   | $ | (157 | )  
|                                                                  | Translation adjustment                                                           |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        |              |   |   |       | 263 |        |        |    |  |   |   |       | 263  |     |   |   | 263  |    
|                                                                  | Pension liability adjustment (net of tax of $1 million)                          |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        |              |   |   |       | (1  | )      |        |    |  |   |   |       | (1   | )   |   |   | (1   | )  
|                                                                  | Unrealized gain on available for sale securities (net of tax of
    $13 million) |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        |              |   |   |       | 20  |        |        |    |  |   |   |       | 20   |     |   |   | 20   |    
|                                                                  | Derivative financial instruments:                                                |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |    |   |   |   |       |      |     |   |   |      |    
|                                                                  |                                                                                  | Losses deferred (net of tax of $7 million)  |       |   |       |   |     |         |  |          |          |             |              |           |    |   |       |   |        |               |  |   |       |     | (4     | )      |    |   |  |   |       |      | (4  | ) |   |      | (4  | )  
|                                                                  |                                                                                  | Losses reclassified to earnings             |       |   |       |   |     |         |  |          |          |             |              |           |    |   |       |   |        |               |  |   |       |     | 18     |        |    |   |  |   |       |      | 18  |   |   |      | 18  |    
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |   
|                                                                  |                                                                                  |                                             | Total |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |    |   |   |   |       |      |     |   |   |      | $   | 139 | 
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |   
|Issuance of common shares                                         |                                                                                  |                                             |      |   |        |   | 4   |         |   |          | 16       |             |               |           |   |   |        |   |       |               |   |   |      |     |        |        |   |   |   |   | 20    |      |     |   |   |     
|Conversion of debt to equity                                      |                                                                                  |                                             | 19    |   |        |   |    |         |   |          | 1,967    |             |               |           |   |   |        |   |       |               |   |   |      |     |        |        |   |   |   |   | 1,986 |      |     |   |   |     
|Dividends declared                                                |                                                                                  |                                             |      |   |        |   |    |         |   |          |         |             |               |           |   |   |        |   | (33    | )             |   |   |      |     |        |        |   |   |   |   | (33   | )    |     |   |   |     
|Recognition of compensation on restricted stock and stock options |                                                                                  |                                             |      |   |        |   |    |         |   |          |         |             |               |           |   |   |        |   |       |               |   |   |      |     |        |        | 1  |   |   |   | 1     |      |     |   |   |     
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |   
|Balance, December 31, 2003                                        |                                                                                  |                                             | 19    |   |        |   | 309 |         |   |          | 6,310    |             |               |           | (7 | ) |        |   | (1,217 | )             |   |   | (539  | )   |        |        | (1 | ) |   |   | 4,874 |      |     |   |   |     
|Comprehensive income:                                             |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |    |   |   |   |       |      |     |   |   |     
|                                                                  | Net income                                                                       |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        | 125           |   |   |       |    |        |        |    |  |   |   |       | 125  |     |   | $ | 125  |    
|                                                                  | Translation adjustment                                                           |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        |              |   |   |       | 86  |        |        |    |  |   |   |       | 86   |     |   |   | 86   |    
|                                                                  | Pension liability adjustment (net of tax of $58 million)                         |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        |              |   |   |       | (64 | )      |        |    |  |   |   |       | (64  | )   |   |   | (64  | )  
|                                                                  | Unrealized gain on available for sale securities (net of tax of
    $2 million)  |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        |              |   |   |       | (2  | )      |        |    |  |   |   |       | (2   | )   |   |   | (2   | )  
|                                                                  | Derivative financial instruments:                                                |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |    |   |   |   |       |      |     |   |   |      |    
|                                                                  |                                                                                  | Gains deferred (net of tax of $16 million)  |       |   |       |   |     |         |  |          |          |             |              |           |    |   |       |   |        |               |  |   |       |     | 18     |        |    |   |  |   |       |      | 18  |   |   |      | 18  |    
|                                                                  |                                                                                  | Losses reclassified to earnings             |       |   |       |   |     |         |  |          |          |             |              |           |    |   |       |   |        |               |  |   |       |     | 5      |        |    |   |  |   |       |      | 5   |   |   |      | 5   |    
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |   
|                                                                  |                                                                                  |                                             | Total |   |        |  |     |         |   |         |          |             |               |          |    |   |        |  |        |               |   |  |       |     |        |       |    |   |   |  |       |      |     |  |   |      | $   | 168 | 
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |   
|Purchase of treasury shares                                       |                                                                                  |                                             |      |   |        |   |    |         |   |          |         |             |               |           | (1 | ) |        |   |       |               |   |   |      |     |        |        |   |   |   |   | (1    | )    |     |   |   |     
|Issuance of common shares                                         |                                                                                  |                                             |      |   |        |   | 3   |         |   |          | 18       |             |               |           |   |   |        |   |       |               |   |   |      |     |        |        |   |   |   |   | 21    |      |     |   |   |     
|Dividends declared                                                |                                                                                  |                                             |      |   |        |   |    |         |   |          |         |             |               |           |   |   |        |   | (33    | )             |   |   |      |     |        |        |   |   |   |   | (33   | )    |     |   |   |     
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |   
|Balance, December 31, 2004                                        |                                                                                  |                                             | 19    |   |        |   | 312 |         |   |          | 6,328    |             |               |           | (8 | ) |        |   | (1,125 | )             |   |   | (496  | )   |        |        | (1 | ) |   |   | 5,029 |      |     |   |   |     
|Comprehensive income:                                             |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |    |   |   |   |       |      |     |   |   |     
|                                                                  | Net income                                                                       |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        | 163           |   |   |       |    |        |        |    |  |   |   |       | 163  |     |   | $ | 163  |    
|                                                                  | Translation adjustment                                                           |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        |              |   |   |       | (68 | )      |        |    |  |   |   |       | (68  | )   |   |   | (68  | )  
|                                                                  | Pension liability adjustment (net of tax of ($27) million)                       |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        |              |   |   |       | 16  |        |        |    |  |   |   |       | 16   |     |   |   | 16   |    
|                                                                  | Unrealized gain on available for sale securities (net of tax of
    $8 million)  |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        |              |   |   |       | (9  | )      |        |    |  |   |   |       | (9   | )   |   |   | (9   | )  
|                                                                  | Derivative financial instruments:                                                |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |    |   |   |   |       |      |     |   |   |      |    
|                                                                  |                                                                                  | Losses deferred (net of tax of $25 million) |       |   |       |   |     |         |  |          |          |             |              |           |    |   |       |   |        |               |  |   |       |     | (87    | )      |    |   |  |   |       |      | (87 | ) |   |      | (87 | )  
|                                                                  |                                                                                  | Gains reclassified to earnings              |       |   |       |   |     |         |  |          |          |             |              |           |    |   |       |   |        |               |  |   |       |     | 18     |        |    |   |  |   |       |      | 18  |   |   |      | 18  |    
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |   
|                                                                  |                                                                                  |                                             | Total |   |        |  |     |         |   |         |          |             |               |          |    |   |        |  |        |               |   |  |       |     |        |       |    |   |   |  |       |      |     |  |   |      | $   | 33  | 
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |   
|Issuance of common shares                                         |                                                                                  |                                             |      |   |        |   | 3   |         |   |          | 17       |             |               |           |   |   |        |   |       |               |   |   |      |     |        |        |   |   |   |   | 20    |      |     |   |   |     
|Accrual of common stock due under the Long-Term Incentive Plan    |                                                                                  |                                             |      |   |        |   |    |         |   |          | 3        |             |               |           |   |   |        |   |       |               |   |   |      |     |        |        |   |   |   |   | 3     |      |     |   |   |     
|Dividends declared                                                |                                                                                  |                                             |      |   |        |   |    |         |   |          |         |             |               |           |   |   |        |   | (34    | )             |   |   |      |     |        |        |   |   |   |   | (34   | )    |     |   |   |     
|Recognition of compensation on restricted stock and stock options |                                                                                  |                                             |      |   |        |   |    |         |   |          |         |             |               |           |   |   |        |   |       |               |   |   |      |     |        |        | 1  |   |   |   | 1     |      |     |   |   |     
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |   
|Balance, December 31, 2005                                        |                                                                                  | $                                           | 19    |   |        | $ | 315 |         |   | $        | 6,348    |             |               | $         | (8 | ) |        | $ | (996   | )             |   | $ | (626  | )   |        | $      |   |   |   | $ | 5,052 |      |     |   |   |     
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |     |        |        |   





F-6



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##### Table of Contents



CNH GLOBAL N.V.





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 1: Nature of Operations






Note 2: Summary of Significant Accounting Policies




| |                                                          
| | ---------------------------------------------------------
| | Principles of Consolidation and Basis of
    Presentation



Equipment Operations


Financial Services




F-7



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                                                                
| | ---------------------------------------------------------------
| | Use of Estimates in the Preparation of Financial
    Statements





| |                    
| | -------------------
| | Revenue Recognition







F-8



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                 
| | ----------------
| | Sales Allowances





| |                                         
| | ----------------------------------------
| | Modification Programs and Warranty Costs





| |            
| | -----------
| | Advertising





| |                         
| | ------------------------
| | Research and Development





| |              
| | -------------
| | Restructuring





| |                             
| | ----------------------------
| | Foreign Currency Translation





| |                          
| | -------------------------
| | Cash and Cash Equivalents



F-9



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                                             
| | ----------------------------------------------------------------------------
| | Deposits in Fiat Affiliates Cash Management Pools
    (Deposits with Fiat)





| |                                 
| | --------------------------------
| | Receivables and Receivable Sales







| |            
| | -----------
| | Inventories





| |                              
| | -----------------------------
| | Property, Plant and Equipment



|                           |  |       |               | 
|-------------------------- |  | ----- | ------------- | 
|Category                   |  | Lives |              
|                           |  |       |              
|Buildings and improvements |  |       | 10  40 years | 
|Plant and machinery        |  |       | 5  16 years  | 
|Other equipment            |  |       | 3  10 years  | 





F-10



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                              
| | -----------------------------
| | Equipment on Operating Leases





| |                         
| | ------------------------
| | Goodwill and Intangibles











| |             
| | ------------
| | Income Taxes





| |                    
| | -------------------
| | Retirement Programs



F-11



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |            
| | -----------
| | Derivatives







| |                               
| | ------------------------------
| | Stock-Based Compensation Plans





F-12



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                                  |              |         |     |   |      |   |     |      |      |   |      |   |       |  
|----------------------------------------------------------------------------------------------------------------- | ------------ | ------- | --- | - | ---- | - | --- | ---- | ---- | - | ---- | - | ----- | -
|                                                                                                                  |              | 2005    |     |   | 2004 |   |     | 2003 |     
|                                                                                                                  |              |         |     |   |      |   |     |      |     
|Net income (loss), as reported                                                                                    |              | $       | 163 |   |      | $ | 125 |      |      | $ | (157 | )
|Add: Stock-based employee compensation expense included in
    reported net income (loss), net of tax             |              |         | 1   |   |      |   |    |      |      |   | 1    |  
|Deduct: Total stock-based employee compensation expense
    determined under fair value based methods, net of tax |              |         | (4  | ) |      |   | (4  | )    |      |   | (5   | )
|                                                                                                                  |              |         |     |   |      |   |     |      |     
|Pro forma net income (loss)                                                                                       |              | $       | 160 |   |      | $ | 121 |      |      | $ | (161 | )
|                                                                                                                  |              |         |     |   |      |   |     |      |     
|Earnings (loss) per share:                                                                                        |              |         |     |   |      |   |     |      |      |   |      |  
|                                                                                                                  | As reported: |         |     |   |      |   |     |      |      |   |      |   |      
|                                                                                                                  |              | Basic   |     | $ | 0.77 |   |     | $    | 0.94 |   |      | $ | (1.19 | )
|                                                                                                                  |              | Diluted |     | $ | 0.70 |   |     | $    | 0.54 |   |      | $ | (1.19 | )
|                                                                                                                  | Pro Forma:   |         |     |   |      |   |     |      |      |   |      |   |      
|                                                                                                                  |              | Basic   |     | $ | 0.76 |   |     | $    | 0.91 |   |      | $ | (1.22 | )
|                                                                                                                  |              | Diluted |     | $ | 0.68 |   |     | $    | 0.52 |   |      | $ | (1.22 | )



| |                   
| | ------------------
| | Earnings Per Share

04-8, 04-8) 04-8,


03-6, 03-6)




| |                  
| | -----------------
| | Reclassifications





| |                              
| | -----------------------------
| | New Accounting Pronouncements



F-13



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|        |                                           
|------- | ------------------------------------------
|Note 3: | Acquisitions of Businesses and Investments

Kobelco




F-14



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                              
|------- | -----------------------------
|Note 4: | Accounts and Notes Receivable



| |                    
| | -------------------
| | On-Book Receivables





:


|                                          |                                  |               |        |       |      |   |        |       | 
|----------------------------------------- | -------------------------------- | ------------- | ------ | ----- | ---- | - | ------ | ----- | 
|                                          |                                  | 2005          |        |       | 2004 |  
|                                          |                                  |               |        |       |      |  
|                                          |                                  | (in millions) |       
|Wholesale notes and accounts              |                                  | $             | 1,667  |       |      | $ | 1,920  |      
|Retail and other notes and finance leases |                                  |               | 3,596  |       |      |   | 3,441  |      
|Other notes                               |                                  |               | 825    |       |      |   | 745    |      
|                                          |                                  |               |        |       |      |  
|                                          | Gross receivables                |               |        | 6,088 |      |   |        | 6,106 | 
|Less:                                     |                                  |               |        |       |      |   |        |      
|Allowance for credit losses               |                                  |               | (247   | )     |      |   | (211   | )    
|Current portion                           |                                  |               | (3,192 | )     |      |   | (3,171 | )    
|                                          |                                  |               |        |       |      |  
|                                          | Total long-term receivables, net |               | $      | 2,649 |      |   | $      | 2,724 | 
|                                          |                                  |               |        |       |      |  



|                    |                                  |               |       |       | 
|------------------- | -------------------------------- | ------------- | ----- | ----- | 
|                    |                                  | Amount        |      
|                    |                                  |               |      
|                    |                                  | (in millions) |      
|2007                |                                  | $             | 1,064 |      
|2008                |                                  |               | 761   |      
|2009                |                                  |               | 488   |      
|2010                |                                  |               | 286   |      
|2011 and thereafter |                                  |               | 50    |      
|                    |                                  |               |      
|                    | Total long-term receivables, net |               | $     | 2,649 | 
|                    |                                  |               |      



F-15



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                            |  |               |     |   |      |   |     |      |  |   |      |  
|--------------------------- |  | ------------- | --- | - | ---- | - | --- | ---- |  | - | ---- | -
|                            |  | 2005          |     |   | 2004 |   |     | 2003 | 
|                            |  |               |     |   |      |   |     |      | 
|                            |  | (in millions) |    
|Balance, beginning of year  |  | $             | 211 |   |      | $ | 190 |      |  | $ | 229  |  
|Provision for credit losses |  |               | 104 |   |      |   | 76  |      |  |   | 98   |  
|Receivables written off     |  |               | (63 | ) |      |   | (69 | )    |  |   | (172 | )
|Other, net                  |  |               | (5  | ) |      |   | 14  |      |  |   | 35   |  
|                            |  |               |     |   |      |   |     |      | 
|Balance, end of year        |  | $             | 247 |   |      | $ | 211 |      |  | $ | 190  |  
|                            |  |               |     |   |      |   |     |      | 



| |                         
| | ------------------------
| | Off-Book Securitizations



| |                                      
| | -------------------------------------
| | Wholesale Receivables Securitizations



364-day 364-day,




F-16



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                     |  |               |       |  |      |   |       | 
|---------------------------------------------------- |  | ------------- | ----- |  | ---- | - | ----- | 
|                                                     |  | 2005          |       |  | 2004 |  
|                                                     |  |               |       |  |      |  
|                                                     |  | (in millions) |      
|Proceeds from new securitizations                    |  | $             | 630   |  |      | $ | 874   | 
|Repurchase of receivables                            |  |               | 183   |  |      |   | 605   | 
|Proceeds from collections reinvested in the facility |  |               | 6,824 |  |      |   | 6,618 | 









| |                                   
| | ----------------------------------
| | Retail Receivables Securitizations





F-17



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                   
| | ------------------
| | Retained Interests



|              |                                      |                                                              |   |     |       |  |   |     |       | 
|------------- | ------------------------------------ | ------------------------------------------------------------ | - | --- | ----- |  | - | --- | ----- | 
|              |                                      | 2005                                                         |   |     | 2004  | 
|              |                                      |                                                              |   |     |       | 
|              |                                      | (in millions)                                                |  
|Receivables:  |                                      |                                                              |   |     |       |  |   |    
|              | Collateralized wholesale receivables |                                                              | $ | 588 |       |  | $ | 448 |      
|              | Interest only strips                 |                                                              |   | 83  |       |  |   | 103 |      
|              | Spread and other                     |                                                              |   | 353 |       |  |   | 389 |      
|              |                                      |                                                              |   |     |       | 
|              |                                      | Total amount included in Accounts and notes
    receivable |   |     | 1,024 |  |   |     | 940   | 
|Other assets: |                                      |                                                              |   |     |       |  |   |    
|              | ABS certificates                     |                                                              |   | 180 |       |  |   | 241 |      
|              | Other investments in ABS trusts      |                                                              |   | 251 |       |  |   | 228 |      
|              |                                      |                                                              |   |     |       | 
|              |                                      | Total amount included in Other assets                      |   |     | 431   |  |   |     | 469   | 
|              |                                      |                                                              |   |     |       | 
|              |                                      | Total retained interests                                     |   | $   | 1,455 |  |   | $   | 1,409 | 
|              |                                      |                                                              |   |     |       | 





|                             |  |       |               |          |         |  |               |      |  |  |       |   |  |  |       |  
|---------------------------- |  | ----- | ------------- | -------- | ------- |  | ------------- | ---- |  |  | ----- | - |  |  | ----- | -
|                             |  |       |               | Weighted |        
|                             |  | Range |               |          | Average | 
|                             |  |       |               |          |         | 
|                             |  | 2005  |               |          | 2004    |  |               | 2005 |  |  | 2004  |  
|                             |  |       |               |          |         |  |               |      |  |  |       |  
|Constant prepayment rate     |  |       | 17.00  20.00 | %        |         |  | 17.00  20.00 | %    |  |  | 17.28 |   |  |  | 17.39 | %
|Expected credit loss rate    |  |       | 0.57   0.68  | %        |         |  | 0.37   0.83  | %    |  |  | 0.67  | % |  |  | 0.48  | %
|Discount rate                |  |       | 8.50  13.00  | %        |         |  | 8.50  10.00  | %    |  |  | 10.62 | % |  |  | 9.52  | %
|Remaining maturity in months |  |       | 20  24       |          |         |  | 20  22       |      |  |  | 22    |   |  |  | 22    |  



F-18



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                     
| | --------------------
| | Impact on Fair Value



|                             |  |                  |       |   |                  |   |     |        |  |   |              |  |  |        |       |   |        |   |     |  |  |   |     | 
|---------------------------- |  | ---------------- | ----- | - | ---------------- | - | --- | ------ |  | - | ------------ |  |  | ------ | ----- | - | ------ | - | --- |  |  | - | --- | 
|                             |  | 2005             |       |   | 2004             |  
|                             |  |                  |       |   |                  |  
|                             |  | December 31,     |       |   | 10%              |   |     | 20%    |  |   | December 31, |  |  | 10%    |       |   | 20%    |  
|                             |  | Assumption       |       |   | Change           |   |     | Change |  |   | Assumption   |  |  | Change |       |   | Change |  
|                             |  |                  |       |   |                  |   |     |        |  |   |              |  |  |        |       |   |        |  
|                             |  | Weighted Average |       |   | Weighted Average |  
|Constant prepayment rate     |  |                  | 15.82 | % |                  | $ | 1.0 |        |  | $ | 1.2          |  |  |        | 16.56 | % |        | $ | 1.9 |  |  | $ | 3.5 | 
|Expected credit loss rate    |  |                  | 0.70  | % |                  | $ | 2.6 |        |  | $ | 5.1          |  |  |        | 0.69  | % |        | $ | 2.4 |  |  | $ | 4.9 | 
|Discount rate                |  |                  | 10.68 | % |                  | $ | 6.9 |        |  | $ | 13.0         |  |  |        | 9.37  | % |        | $ | 4.0 |  |  | $ | 6.9 | 
|Remaining maturity in months |  |                  | 17    |   |                  |   |     |        |  |   |              |  |  |        | 17    |   |        |   |     |  |  |   |     | 





|                        |  |                            |      |   |      |  |      |      |  |  |      |   |  |  |      |  
|----------------------- |  | -------------------------- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | - |  |  | ---- | -
|                        |  | Receivables Securitized in |     
|                        |  |                            |     
|                        |  | 2002                       |      |   | 2003 |  |      | 2004 |  |  | 2005 |  
|                        |  |                            |      |   |      |  |      |      |  |  |      |  
|As of December 31, 2005 |  |                            | 0.65 | % |      |  | 0.68 | %    |  |  | 0.54 | % |  |  | 0.56 | %
|As of December 31, 2004 |  |                            | 0.58 | % |      |  | 0.89 | %    |  |  | 0.57 | % |  |  |      |  
|As of December 31, 2003 |  |                            | 0.66 | % |      |  | 0.65 | %    |  |  |      |   |  |  |      |  





|                                         |  |               |       |  |      |   |       |      |  |   |       | 
|---------------------------------------- |  | ------------- | ----- |  | ---- | - | ----- | ---- |  | - | ----- | 
|                                         |  | 2005          |       |  | 2004 |   |       | 2003 | 
|                                         |  |               |       |  |      |   |       |      | 
|                                         |  | (in millions) |      
|Proceeds from new retail securitizations |  | $             | 2,799 |  |      | $ | 2,218 |      |  | $ | 2,857 | 
|Servicing fees received                  |  |               | 40    |  |      |   | 37    |      |  |   | 51    | 
|Cash received on retained interests      |  |               | 93    |  |      |   | 85    |      |  |   | 70    | 
|Cash paid upon cleanup call              |  |               | 104   |  |      |   | 77    |      |  |   | 213   | 



| |                                  
| | ---------------------------------
| | Other Receivables Securitizations





F-19



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                                       
| | --------------------------------------
| | Managed Portfolio  Financial Services



|                                              |  |                |        |  |                |   |     |                |  |   |    | 
|--------------------------------------------- |  | -------------- | ------ |  | -------------- | - | --- | -------------- |  | - | -- | 
|                                              |  | Principal      |        |  | Principal More |   |     |               
|                                              |  | Amount of      |        |  | Than 30 Days   |   |     | Net Credit     | 
|                                              |  | Receivables At |        |  | Delinquent At  |   |     | Losses for the | 
|                                              |  | December 31,   |        |  | December 31,   |   |     | Year Ending    | 
|                                              |  |                |        |  |                |   |     |                | 
|                                              |  | (in millions)  |       
|2005                                          |  |                |        |  |                |   |     |                |  |   |    | 
|                                              |  |                |        |  |                |   |     |                | 
|Type of receivable:                           |  |                |        |  |                |   |     |                |  |   |    | 
|Wholesale notes and accounts                  |  | $              | 4,036  |  |                | $ | 87  |                |  | $ | 2  | 
|Retail and other notes and finance leases     |  |                | 9,734  |  |                |   | 239 |                |  |   | 35 | 
|                                              |  |                |        |  |                |   |     |                | 
|Total managed                                 |  | $              | 13,770 |  |                | $ | 326 |                |  | $ | 37 | 
|                                              |  |                |        |  |                |   |     |                | 
|Comprised of:                                 |  |                |        |  |                |   |     |                |  |   |    | 
|Receivables held in portfolio                 |  | $              | 4,438  |  |                |   |     |                |  |   |    | 
|Receivables serviced for Equipment Operations |  |                | 224    |  |                |   |     |                |  |   |    | 
|Receivables serviced for Joint Venture        |  |                | 1,448  |  |                |   |     |                |  |   |    | 
|Securitized                                   |  |                | 7,660  |  |                |   |     |                |  |   |    | 
|                                              |  |                |        |  |                |   |     |                | 
|Total managed                                 |  | $              | 13,770 |  |                |   |     |                |  |   |    | 
|                                              |  |                |        |  |                |   |     |                | 
|2004                                          |  |                |        |  |                |   |     |                |  |   |    | 
|                                              |  |                |        |  |                |   |     |                | 
|Type of receivable:                           |  |                |        |  |                |   |     |                |  |   |    | 
|Wholesale notes and accounts                  |  | $              | 3,540  |  |                | $ | 105 |                |  | $ | 7  | 
|Retail and other notes and finance leases     |  |                | 9,719  |  |                |   | 250 |                |  |   | 43 | 
|                                              |  |                |        |  |                |   |     |                | 
|Total managed                                 |  | $              | 13,259 |  |                | $ | 355 |                |  | $ | 50 | 
|                                              |  |                |        |  |                |   |     |                | 
|Comprised of:                                 |  |                |        |  |                |   |     |                |  |   |    | 
|Receivables held in portfolio                 |  | $              | 4,153  |  |                |   |     |                |  |   |    | 
|Receivables serviced for Equipment Operations |  |                | 545    |  |                |   |     |                |  |   |    | 
|Receivables serviced for Joint Venture        |  |                | 1,654  |  |                |   |     |                |  |   |    | 
|Securitized                                   |  |                | 6,907  |  |                |   |     |                |  |   |    | 
|                                              |  |                |        |  |                |   |     |                | 
|Total managed                                 |  | $              | 13,259 |  |                |   |     |                |  |   |    | 
|                                              |  |                |        |  |                |   |     |                | 



| |                                                                   
| | ------------------------------------------------------------------
| | Non-Cash Retail Receivables Operating and Investing
    Activities



F-20



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 5: Inventories




|                |                   |               |       |       |      |   |       |       | 
|--------------- | ----------------- | ------------- | ----- | ----- | ---- | - | ----- | ----- | 
|                |                   | 2005          |       |       | 2004 |  
|                |                   |               |       |       |      |  
|                |                   | (in millions) |      
|Raw materials   |                   | $             | 494   |       |      | $ | 501   |      
|Work-in-process |                   |               | 195   |       |      |   | 212   |      
|Finished goods  |                   |               | 1,777 |       |      |   | 1,802 |      
|                |                   |               |       |       |      |  
|                | Total inventories |               | $     | 2,466 |      |   | $     | 2,515 | 
|                |                   |               |       |       |      |  

Note 6: Property, Plant and Equipment




|                                 |                                   |               |        |       |      |   |        |       | 
|-------------------------------- | --------------------------------- | ------------- | ------ | ----- | ---- | - | ------ | ----- | 
|                                 |                                   | 2005          |        |       | 2004 |  
|                                 |                                   |               |        |       |      |  
|                                 |                                   | (in millions) |       
|Land, buildings and improvements |                                   | $             | 812    |       |      | $ | 873    |      
|Plant and machinery              |                                   |               | 1,951  |       |      |   | 2,083  |      
|Other equipment                  |                                   |               | 448    |       |      |   | 465    |      
|Construction in progress         |                                   |               | 72     |       |      |   | 80     |      
|                                 |                                   |               |        |       |      |  
|                                 |                                   |               | 3,283  |       |      |   | 3,501  |      
|Accumulated depreciation         |                                   |               | (1,972 | )     |      |   | (2,023 | )    
|                                 |                                   |               |        |       |      |  
|                                 | Net property, plant and equipment |               | $      | 1,311 |      |   | $      | 1,478 | 
|                                 |                                   |               |        |       |      |  



Note 7: Investments in Unconsolidated Subsidiaries and
Affiliates




|                     |       |               |     |     |      |   |     |     | 
|-------------------- | ----- | ------------- | --- | --- | ---- | - | --- | --- | 
|Method of Accounting |       | 2005          |     |     | 2004 |  
|                     |       |               |     |     |      |  
|                     |       | (in millions) |    
|Equity method        |       | $             | 441 |     |      | $ | 450 |    
|Cost method          |       |               | 8   |     |      |   | 7   |    
|                     |       |               |     |     |      |  
|                     | Total |               | $   | 449 |      |   | $   | 457 | 
|                     |       |               |     |     |      |  





|           |  |                                  |       |  |      |   |       |      |  |   |       | 
|---------- |  | -------------------------------- | ----- |  | ---- | - | ----- | ---- |  | - | ----- | 
|           |  | For the years ended December 31, |      
|           |  |                                  |      
|Operations |  | 2005                             |       |  | 2004 |   |       | 2003 | 
|           |  |                                  |       |  |      |   |       |      | 
|           |  | (in millions)                    |      
|Sales      |  | $                                | 3,325 |  |      | $ | 3,341 |      |  | $ | 2,301 | 
|           |  |                                  |       |  |      |   |       |      | 
|Net Income |  | $                                | 188   |  |      | $ | 110   |      |  | $ | 67    | 
|           |  |                                  |       |  |      |   |       |      | 

F-21



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                   |  |                    |       |  |      |   |       | 
|------------------ |  | ------------------ | ----- |  | ---- | - | ----- | 
|                   |  | As of December 31, |      
|                   |  |                    |      
|Financial Position |  | 2005               |       |  | 2004 |  
|                   |  |                    |       |  |      |  
|                   |  | (in millions)      |      
|Total Assets       |  | $                  | 4,220 |  |      | $ | 4,705 | 
|                   |  |                    |       |  |      |  



Note 8: Equipment on Operating Leases




|                                  |  |               |     |   |      |   |      |  
|--------------------------------- |  | ------------- | --- | - | ---- | - | ---- | -
|                                  |  | 2005          |     |   | 2004 |  
|                                  |  |               |     |   |      |  
|                                  |  | (in millions) |    
|Equipment on operating leases     |  | $             | 249 |   |      | $ | 341  |  
|Accumulated depreciation          |  |               | (69 | ) |      |   | (126 | )
|                                  |  |               |     |   |      |  
|Net equipment on operating leases |  | $             | 180 |   |      | $ | 215  |  
|                                  |  |               |     |   |      |  





|                    |  |               |    | 
|------------------- |  | ------------- | -- | 
|                    |  | Amount        |   
|                    |  |               |   
|                    |  | (in millions) |   
|2006                |  | $             | 45 | 
|2007                |  |               | 27 | 
|2008                |  |               | 14 | 
|2009                |  |               | 6  | 
|2010 and thereafter |  |               | 1  | 
|                    |  |               |   
|Total               |  | $             | 93 | 
|                    |  |               |   

F-22



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 9: Goodwill and Intangibles




|                               |  |               |       |   |              |   |     |           |  |   |       |   |  |   |       |  
|------------------------------ |  | ------------- | ----- | - | ------------ | - | --- | --------- |  | - | ----- | - |  | - | ----- | -
|                               |  | Agricultural  |       |   | Construction |   |     | Financial |  |   |      
|                               |  | Equipment     |       |   | Equipment    |   |     | Services  |  |   | Total |  
|                               |  |               |       |   |              |   |     |           |  |   |       |  
|                               |  | (in millions) |      
|Balance at January 1, 2004     |  | $             | 1,775 |   |              | $ | 634 |           |  | $ | 145   |   |  | $ | 2,554 |  
|Purchase accounting adjustment |  |               | (107  | ) |              |   | (58 | )         |  |   |      |   |  |   | (165  | )
|Impact of foreign exchange     |  |               | 9     |   |              |   | 5   |           |  |   | (1    | ) |  |   | 13    |  
|                               |  |               |       |   |              |   |     |           |  |   |       |  
|Balance at December 31, 2004   |  |               | 1,677 |   |              |   | 581 |           |  |   | 144   |   |  |   | 2,402 |  
|Purchase accounting adjustment |  |               | (8    | ) |              |   | (6  | )         |  |   |      |   |  |   | (14   | )
|Impact of foreign exchange     |  |               | (1    | ) |              |   |    |           |  |   | 1     |   |  |   |      |  
|                               |  |               |       |   |              |   |     |           |  |   |       |  
|Balance at December 31, 2005   |  | $             | 1,668 |   |              | $ | 575 |           |  | $ | 145   |   |  | $ | 2,388 |  
|                               |  |               |       |   |              |   |     |           |  |   |       |  







|                                               |                      |               |  |         |       |   |             |              |  |   |     |     |  |             |     |     |              |   |       |     |  |   |     |    |  |   |     |     | 
|---------------------------------------------- | -------------------- | ------------- |  | ------- | ----- | - | ----------- | ------------ |  | - | --- | --- |  | ----------- | --- | --- | ------------ | - | ----- | --- |  | - | --- | -- |  | - | --- | --- | 
|                                               |                      |               |  | 2005    |       |   | 2004        |             
|                                               |                      |               |  |         |       |   |             |             
|                                               |                      | Weighted      |  |         |       |   | Accumulated |              |  |   |     |     |  | Accumulated |     |     |             
|                                               |                      | Avg. Life     |  |         | Gross |   |             | Amortization |  |   | Net |     |  | Gross       |     |     | Amortization |   |       | Net | 
|                                               |                      |               |  |         |       |   |             |              |  |   |     |     |  |             |     |     |              |   |       |     | 
|                                               |                      | (in millions) | 
|Intangible assets subject to Amortization:     |                      |               |  |         |       |   |             |              |  |   |     |     |  |             |     |     |              |   |       |     |  |   |     |    |  |   |     |    
|                                               | Engineering Drawings |               |  | 20      |       |   | $           | 335          |  |   | $   | 103 |  |             | $   | 232 |              |   | $     | 335 |  |   | $   | 86 |  |   | $   | 249 | 
|                                               | Dealer Networks      |               |  | 25      |       |   |             | 216          |  |   |     | 53  |  |             |     | 163 |              |   |       | 216 |  |   |     | 44 |  |   |     | 172 | 
|                                               | Software             |               |  | 5       |       |   |             | 50           |  |   |     | 37  |  |             |     | 13  |              |   |       | 53  |  |   |     | 27 |  |   |     | 26  | 
|                                               | Other                |               |  | 10  30 |       |   |             | 116          |  |   |     | 48  |  |             |     | 68  |              |   |       | 123 |  |   |     | 46 |  |   |     | 77  | 
|                                               |                      |               |  |         |       |   |             |              |  |   |     |     |  |             |     |     |              |   |       |     | 
|                                               |                      |               |  |         |       |   | 717         |              |  |   | 241 |     |  |             | 476 |     |              |   | 727   |     |  |   | 203 |    |  |   | 524 |    
|                                               |                      |               |  |         |       |   |             |              |  |   |     |     |  |             |     |     |              |   |       |     | 
|Intangible assets not subject to amortization: |                      |               |  |         |       |   |             |              |  |   |     |     |  |             |     |     |              |   |       |     |  |   |     |    |  |   |     |    
|                                               | Trademarks           |               |  |         |       |   |             | 273          |  |   |     |    |  |             |     | 273 |              |   |       | 273 |  |   |     |   |  |   |     | 273 | 
|                                               | Pension              |               |  |         |       |   |             | 26           |  |   |     |    |  |             |     | 26  |              |   |       | 37  |  |   |     |   |  |   |     | 37  | 
|                                               |                      |               |  |         |       |   |             |              |  |   |     |     |  |             |     |     |              |   |       |     | 
|                                               |                      |               |  |         |       | $ | 1,016       |              |  | $ | 241 |     |  | $           | 775 |     |              | $ | 1,037 |     |  | $ | 203 |    |  | $ | 834 |    
|                                               |                      |               |  |         |       |   |             |              |  |   |     |     |  |             |     |     |              |   |       |     | 

F-23



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|         |                      
|-------- | ---------------------
|Note 10: | Debt and Credit Lines



| |             
| | ------------
| | Credit lines







F-24



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           |  |  |   |       |  |  |  |        | 
|-------------------------------------------------------------------------------------- |  | ------------- | -------------- |  | ------ | - | ----- | --------- |  |  | ---------- |  |  | -------- | --- |  | ----- | - | ----- | --------- |  | - | --------- |  |  | - | ----- |  |  |  | ------ | 
|                                                                                       |  |               |                |  |        |   |       | Drawn     |  |  |            |  | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  | 
|                                                                                       |  |               |                |  |        |   |       | Equipment |  |  | Financial  |  |  |          |     |  |       |  
|                                                                                       |  | Maturity      |                |  | Amount |   |       | Borrower* |  |  | Operations |  |  | Services |     |  | Total |   |       | Available |  |   | Guarantor | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|                                                                                       |  | (in millions) |               
|Committed lines:                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           |  |  |   |       |  |  |  |        | 
|CNH portion of Fiat revolving syndicated backup credit facility                        |  |               | Jul 08         |  |        | $ | 354   |           |  |  | EO         |  |  | $        |    |  |       | $ |      |           |  | $ |          |  |  | $ | 354   |  |  |  | Fiat   | 
|Credit facilities with third parties                                                   |  |               | Jun 07         |  |        |   | 150   |           |  |  | FS         |  |  |          |    |  |       |   | 150   |           |  |   | 150       |  |  |   |      |  |  |  | Fiat   | 
|Buyers credit Proex                                                                   |  |               | 2006-2010      |  |        |   | 129   |           |  |  | EO         |  |  |          | 129 |  |       |   |      |           |  |   | 129       |  |  |   |      |  |  |  | Fiat   | 
|CNH Capital Australia/Canada facility with UBS                                         |  |               | 2006           |  |        |   | 61    |           |  |  | FS         |  |  |          |    |  |       |   | 61    |           |  |   | 61        |  |  |   |      |  |  |  | Fiat   | 
|BNDES Subsidized Financing Brazil                                                      |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           |  |  |   |       |  |  |  |        | 
|2006                                                                                  |  |               | 2006           |  |        |   | 470   |           |  |  | FS         |  |  |          |    |  |       |   | 470   |           |  |   | 470       |  |  |   |      |  |  |  | Fiat** | 
|2007                                                                                  |  |               | 2007           |  |        |   | 337   |           |  |  | FS         |  |  |          |    |  |       |   | 337   |           |  |   | 337       |  |  |   |      |  |  |  | Fiat** | 
|2008 and Beyond                                                                       |  |               | 2008+          |  |        |   | 483   |           |  |  | FS         |  |  |          |    |  |       |   | 473   |           |  |   | 473       |  |  |   | 10    |  |  |  | Fiat** | 
|Revolving credit facility with Fiat affiliate                                          |  |               | Jan 2007       |  |        |   | 1,000 |           |  |  | Both       |  |  |          | 205 |  |       |   | 77    |           |  |   | 282       |  |  |   | 718   |  |  |  | Fiat   | 
|Various committed linesBrazil                                                         |  |               | Jan 06-Sept 07 |  |        |   | 165   |           |  |  | EO         |  |  |          | 165 |  |       |   |      |           |  |   | 165       |  |  |   |      |  |  |  |        | 
|Various committed lines Australia                                                     |  |               | Jan 06-Jul 06  |  |        |   | 58    |           |  |  | FS         |  |  |          |    |  |       |   | 51    |           |  |   | 51        |  |  |   | 7     |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Total committed lines                                                                  |  |               |                |  |        |   | 3,207 |           |  |  |            |  |  |          | 499 |  |       |   | 1,619 |           |  |   | 2,118     |  |  |   | 1,089 |  |  |  |        | 
|Uncommitted Lines                                                                      |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           |  |  |   |       |  |  |  |        | 
|Portion of Fiat revolving syndicated backup credit facility
    shared with Fiat subs. |  |               | Jul 08         |  |        |   | 826   |           |  |  | EO         |  |  |          |    |  |       |   |      |           |  |   |          |  |  |   | 826   |  |  |  |        | 
|Factoring lines                                                                        |  |               | Jan 06         |  |        |   | 185   |           |  |  | EO         |  |  |          | 185 |  |       |   |      |           |  |   | 185       |  |  |   |      |  |  |  |        | 
|Factoring lines                                                                        |  |               | Jan 06         |  |        |   | 50    |           |  |  | FS         |  |  |          |    |  |       |   |      |           |  |   |          |  |  |   | 50    |  |  |  |        | 
|Other                                                                                  |  |               | Jan 06         |  |        |   | 8     |           |  |  | EO         |  |  |          |    |  |       |   |      |           |  |   |          |  |  |   | 8     |  |  |  |        | 
|Asset-backed Programs                                                                  |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           |  |  |   |       |  |  |  |        | 
|United States                                                                         |  |               | Jan 06         |  |        |   | 1,200 |           |  |  | FS         |  |  |          |    |  |       |   | 157   |           |  |   | 157       |  |  |   | 1,043 |  |  |  |        | 
|United States (Credit Cards)                                                          |  |               | Jun 07         |  |        |   | 250   |           |  |  | FS         |  |  |          |    |  |       |   | 129   |           |  |   | 129       |  |  |   | 121   |  |  |  |        | 
|Canada                                                                                |  |               | Aug 06         |  |        |   | 257   |           |  |  | FS         |  |  |          |    |  |       |   | 26    |           |  |   | 26        |  |  |   | 231   |  |  |  |        | 
|Australia                                                                             |  |               | Apr 06         |  |        |   | 293   |           |  |  | FS         |  |  |          |    |  |       |   | 206   |           |  |   | 206       |  |  |   | 87    |  |  |  |        | 
|ABS Retained Assets financing                                                         |  |               | Dec 08         |  |        |   | 300   |           |  |  | FS         |  |  |          |    |  |       |   | 247   |           |  |   | 247       |  |  |   | 53    |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Total uncommitted lines and ABCP                                                       |  |               |                |  |        |   | 3,369 |           |  |  |            |  |  |          | 185 |  |       |   | 765   |           |  |   | 950       |  |  |   | 2,419 |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Total credit facilities                                                                |  |               |                |  |        | $ | 6,576 |           |  |  |            |  |  | $        | 684 |  |       | $ | 2,384 |           |  | $ | 3,068     |  |  | $ | 3,508 |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Drawn short-term debt                                                                  |  |               |                |  |        |   |       |           |  |  |            |  |  | $        | 495 |  |       | $ | 579   |           |  | $ | 1,074     |  |  |   |       |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Drawn long-term debt                                                                   |  |               |                |  |        |   |       |           |  |  |            |  |  | $        | 189 |  |       | $ | 1,805 |           |  | $ | 1,994     |  |  |   |       |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 
|Total credit facilities with Fiat affiliates or guaranteed by
    Fiat affiliates      |  |               |                |  |        | $ | 3,254 |           |  |  |            |  |  | $        | 334 |  |       | $ | 1,014 |           |  | $ | 1,348     |  |  | $ | 1,906 |  |  |  |        | 
|                                                                                       |  |               |                |  |        |   |       |           |  |  |            |  |  |          |     |  |       |   |       |           |  |   |           | 






|   |                                                                                                                                   
|-- | ----------------------------------------------------------------------------------------------------------------------------------
|*  | EO = Equipment Operations; FS = Financial Services                                                                                
|  
|** | BNDES Subsidized Financing in Brazil is guaranteed by Fiat for
    up to $726 million (1.7 billion Brazilian real
    equivalent).

F-25



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                              
| | ---------------------------------------------
| | Short-term debt including use of credit lines



|                                                  |                       |                                 |     |     |           |   |       |              |     |           |            |       |           |          |     |       |              |   |     |       |     |   |     |       |       | 
|------------------------------------------------- | --------------------- | ------------------------------- | --- | --- | --------- | - | ----- | ------------ | --- | --------- | ---------- | ----- | --------- | -------- | --- | ----- | ------------ | - | --- | ----- | --- | - | --- | ----- | ----- | 
|                                                  |                       | 2005                            |     |     | 2004      |  
|                                                  |                       |                                 |     |     |           |  
|                                                  |                       | Equipment                       |     |     | Financial |   |       |              |     | Equipment |            |       | Financial |          |     |      
|                                                  |                       | Operations                      |     |     | Services  |   |       | Consolidated |     |           | Operations |       |           | Services |     |       | Consolidated |  
|                                                  |                       |                                 |     |     |           |   |       |              |     |           |            |       |           |          |     |       |              |  
|                                                  |                       | (in millions)                   |    
|Drawings under ABCP liquidity facilities          |                       | $                               |    |     |           | $ | 390   |              |     | $         | 390        |       |           | $        |    |       |              | $ | 448 |       |     | $ | 448 |      
|Drawings under other credit lines  third parties |                       |                                 | 290 |     |           |   | 112   |              |     |           | 402        |       |           |          | 725 |       |              |   | 113 |       |     |   | 838 |      
|Drawings under credit lines  Fiat affiliates     |                       |                                 | 205 |     |           |   | 77    |              |     |           | 282        |       |           |          | 248 |       |              |   | 193 |       |     |   | 441 |      
|                                                  |                       |                                 |     |     |           |   |       |              |     |           |            |       |           |          |     |       |              |  
|                                                  |                       | Drawn under credit lines & ABCP |     |     | 495       |   |       |              | 579 |           |            |       | 1,074     |          |     |       | 973          |   |     |       | 754 |   |     |       | 1,727 | 
|Other short-term debt  third parties             |                       |                                 | 57  |     |           |   | 108   |              |     |           | 165        |       |           |          | 8   |       |              |   | 91  |       |     |   | 99  |      
|Other short-term debt  Fiat affiliates           |                       |                                 | 274 |     |           |   | 9     |              |     |           | 283        |       |           |          | 83  |       |              |   | 148 |       |     |   | 231 |      
|Intersegment short-term debt                      |                       |                                 |    |     |           |   | 1,067 |              |     |           |           |       |           |          | 24  |       |              |   | 414 |       |     |   |    |      
|                                                  |                       |                                 |     |     |           |   |       |              |     |           |            |       |           |          |     |       |              |  
|                                                  | Total short-term debt |                                 | $   | 826 |           |   | $     | 1,763        |     |           | $          | 1,522 |           |          | $   | 1,088 |              |   | $   | 1,407 |     |   | $   | 2,057 |      
|                                                  |                       |                                 |     |     |           |   |       |              |     |           |            |       |           |          |     |       |              |  











| |   |                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the initial maturity of the facility/credit line;                                                                                                                                                                                                               
|
| |  | the rating of short-term or long-term unsecured debt at the time
    the facility/credit line was negotiated; in cases where Fiat
    provides a guarantee, the margin reflects Fiats credit
    standing at the time the facility or credit line was arranged;
|
| |  | the extent of over-collateralization, in the case of receivables
    warehouse facilities; and                                                                                                                                                                  
|
| |  | the level of availability of credit lines for CNH in different
    jurisdictions.                                                                                                                                                                               





F-26



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                            |                                                                                           |                                                   |     |       |           |  |       |              |       |           |            |        |           |          |    |       |              |  |       |      |       |  |       |       |       | 
|------------------------------------------- | ----------------------------------------------------------------------------------------- | ------------------------------------------------- | --- | ----- | --------- |  | ----- | ------------ | ----- | --------- | ---------- | ------ | --------- | -------- | -- | ----- | ------------ |  | ----- | ---- | ----- |  | ----- | ----- | ----- | 
|                                            |                                                                                           | 2005                                              |     |       | 2004      | 
|                                            |                                                                                           |                                                   |     |       |           | 
|                                            |                                                                                           | Equipment                                         |     |       | Financial |  |       |              |       | Equipment |            |        | Financial |          |    |      
|                                            |                                                                                           | Operations                                        |     |       | Services  |  |       | Consolidated |       |           | Operations |        |           | Services |    |       | Consolidated | 
|                                            |                                                                                           |                                                   |     |       |           |  |       |              |       |           |            |        |           |          |    |       |              | 
|                                            |                                                                                           | (in millions)                                     |    
|Public Notes:                               |                                                                                           |                                                   |     |       |           |  |       |              |       |           |            |        |           |          |    |       |              |  |       |      |       |  |       |      
|                                            | Payable in 2005, interest rate of 7.25%                                                   |                                                   | $   |      |           |  | $     |             |       |           | $          |       |           |          | $  | 218   |              |  | $     |     |       |  | $     | 218   |      
|                                            | Payable in 2007, interest rate of 6.75%                                                   |                                                   |     |      |           |  |       | 125          |       |           |            | 125    |           |          |    |      |              |  |       | 127  |       |  |       | 127   |      
|                                            | Payable in 2009, interest rate of 6.00%                                                   |                                                   |     | 482   |           |  |       |             |       |           |            | 482    |           |          |    | 474   |              |  |       |     |       |  |       | 474   |      
|                                            | Payable in 2011, average interest rate of 9.25%                                           |                                                   |     | 1,051 |           |  |       |             |       |           |            | 1,051  |           |          |    | 1,052 |              |  |       |     |       |  |       | 1,052 |      
|                                            | Payable in 2016, interest rate of 7.25%                                                   |                                                   |     | 247   |           |  |       |             |       |           |            | 247    |           |          |    | 254   |              |  |       |     |       |  |       | 254   |      
|Third Party Loans:                          |                                                                                           |                                                   |     |       |           |  |       |              |       |           |            |        |           |          |    |       |              |  |       |      |       |  |       |      
|                                            | Payable in 2006-2007, interest rate of 4.60% (floating rate)                              |                                                   |     | 153   |           |  |       |             |       |           |            | 153    |           |          |    | 169   |              |  |       |     |       |  |       | 169   |      
|Notes with Fiat affiliates:                 |                                                                                           |                                                   |     |       |           |  |       |              |       |           |            |        |           |          |    |       |              |  |       |      |       |  |       |      
|                                            | Payable in 2006, interest rate of 6.60% (floating rate)                                   |                                                   |     | 150   |           |  |       |             |       |           |            | 150    |           |          |    | 700   |              |  |       |     |       |  |       | 700   |      
|                                            | Payable in 2006, interest rate of 3.36% (floating rate)                                   |                                                   |     | 94    |           |  |       |             |       |           |            | 94     |           |          |    | 109   |              |  |       |     |       |  |       | 109   |      
|                                            | Other affiliated notes, weighted average interest rate of 5.75%                           |                                                   |     |      |           |  |       |             |       |           |            |       |           |          |    | 21    |              |  |       |     |       |  |       | 21    |      
|                                            | Other affiliate notes, weighted-average interest rate of 4.80%
    and 4.86% respectively |                                                   |     |      |           |  |       | 173          |       |           |            | 173    |           |          |    |      |              |  |       | 219  |       |  |       | 219   |      
|Long-term drawings under credit lines       |                                                                                           |                                                   | 189 |       |           |  | 1,805 |              |       |           | 1,994      |        |           |          | 62 |       |              |  | 1,098 |      |       |  | 1,160 |      
|Other debt                                  |                                                                                           |                                                   | 30  |       |           |  | 266   |              |       |           | 296        |        |           |          | 25 |       |              |  | 378   |      |       |  | 403   |      
|Intersegment debt with Equipment Operations |                                                                                           |                                                   |    |       |           |  |      |              |       |           |           |        |           |          |   |       |              |  | 700   |      |       |  |      |      
|                                            |                                                                                           |                                                   |     |       |           |  |       |              |       |           |            |        |           |          |    |       |              | 
|                                            |                                                                                           | Total long-term debt                              |     |       | 2,396     |  |       |              | 2,369 |           |            |        | 4,765     |          |    |       | 3,084        |  |       |      | 2,522 |  |       |       | 4,906 | 
|                                            | Less-current maturities                                                                   |                                                   |     | (385  | )         |  |       | (674         | )     |           |            | (1,059 | )         |          |    | (257  | )            |  |       | (629 | )     |  |       | (886  | )    
|                                            |                                                                                           |                                                   |     |       |           |  |       |              |       |           |            |        |           |          |    |       |              | 
|                                            |                                                                                           | Total long-term debt excluding current maturities |     | $     | 2,011     |  |       | $            | 1,695 |           |            | $      | 3,706     |          |    | $     | 2,827        |  |       | $    | 1,893 |  |       | $     | 4,020 | 
|                                            |                                                                                           |                                                   |     |       |           |  |       |              |       |           |            |        |           |          |    |       |              | 

F-27



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                    |       |               |       |       |           |   |     |              |  |   |       |       | 
|------------------- | ----- | ------------- | ----- | ----- | --------- | - | --- | ------------ |  | - | ----- | ----- | 
|                    |       | Equipment     |       |       | Financial |   |     |             
|                    |       | Operations    |       |       | Services  |   |     | Consolidated | 
|                    |       |               |       |       |           |   |     |              | 
|                    |       | (in millions) |      
|2007                |       | $             | 145   |       |           | $ | 872 |              |  | $ | 1,017 |      
|2008                |       |               | 28    |       |           |   | 584 |              |  |   | 612   |      
|2009                |       |               | 522   |       |           |   | 168 |              |  |   | 690   |      
|20010               |       |               | 12    |       |           |   | 59  |              |  |   | 71    |      
|2011 and thereafter |       |               | 1,304 |       |           |   | 12  |              |  |   | 1,316 |      
|                    |       |               |       |       |           |   |     |              | 
|                    | Total |               | $     | 2,011 |           |   | $   | 1,695        |  |   | $     | 3,706 | 
|                    |       |               |       |       |           |   |     |              | 

1 4 1 4 1 4


1 4 1 4


on-book.






| |                            
| | ---------------------------
| | Non-Cash Financing Activity



F-28



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |             
|-------- | ------------
|Note 11: | Income Taxes



|                                                                                                                            |  |               |     |  |      |   |     |      |  |   |      |  
|--------------------------------------------------------------------------------------------------------------------------- |  | ------------- | --- |  | ---- | - | --- | ---- |  | - | ---- | -
|                                                                                                                            |  | 2005          |     |  | 2004 |   |     | 2003 | 
|                                                                                                                            |  |               |     |  |      |   |     |      | 
|                                                                                                                            |  | (in millions) |    
|The Netherlands source                                                                                                      |  | $             | 4   |  |      | $ | (25 | )    |  | $ | (80  | )
|Foreign sources                                                                                                             |  |               | 253 |  |      |   | 184 |      |  |   | (138 | )
|                                                                                                                            |  |               |     |  |      |   |     |      | 
|Income (loss) before taxes, minority interest and equity in
    income (loss) of unconsolidated subsidiaries and affiliates |  | $             | 257 |  |      | $ | 159 |      |  | $ | (218 | )
|                                                                                                                            |  |               |     |  |      |   |     |      | 



|                      |                               |               |     |     |      |   |    |      |  |   |     |     |  
|--------------------- | ----------------------------- | ------------- | --- | --- | ---- | - | -- | ---- |  | - | --- | --- | -
|                      |                               | 2005          |     |     | 2004 |   |    | 2003 | 
|                      |                               |               |     |     |      |   |    |      | 
|                      |                               | (in millions) |    
|Current income taxes  |                               | $             | (16 | )   |      | $ | 35 |      |  | $ | 23  |    
|Deferred income taxes |                               |               | 132 |     |      |   | 4  |      |  |   | (72 | )  
|                      |                               |               |     |     |      |   |    |      | 
|                      | Total tax provision (benefit) |               | $   | 116 |      |   | $  | 39   |  |   | $   | (49 | )
|                      |                               |               |     |     |      |   |    |      | 



|                                                     |                               |      |     |    |      |  |     |      |   |  |     |     |   
|---------------------------------------------------- | ----------------------------- | ---- | --- | -- | ---- |  | --- | ---- | - |  | --- | --- | --
|                                                     |                               | 2005 |     |    | 2004 |  |     | 2003 |  
|                                                     |                               |      |     |    |      |  |     |      |  
|Tax provision (benefit) at the Netherlands statutory |                               |      | 32  | %  |      |  | 35  | %    |   |  | (35 | )% 
|Foreign income taxed at different rates              |                               |      | 13  |    |      |  | 13  |      |   |  | 2   |    
|Change in tax status of certain entities             |                               |      |    |    |      |  | 6   |      |   |  |    |    
|Current year losses not benefitted                   |                               |      | 41  |    |      |  | 47  |      |   |  | 18  |    
|Change in valuation allowance                        |                               |      | (9  | )  |      |  | (18 | )    |   |  | (17 | )  
|Dividend withholding taxes and credits               |                               |      | 1   |    |      |  | 1   |      |   |  | 1   |    
|Reversal of tax contingency reserves                 |                               |      | (21 | )  |      |  | (11 | )    |   |  |    |    
|Stock deduction from legal entity rationalization    |                               |      |    |    |      |  | (41 | )    |   |  |    |    
|Other                                                |                               |      | (12 | )  |      |  | (7  | )    |   |  | 9   |    
|                                                     |                               |      |     |    |      |  |     |      |  
|                                                     | Total tax provision (benefit) |      |     | 45 | %    |  |     | 25   | % |  |     | (22 | )%
|                                                     |                               |      |     |    |      |  |     |      |  



F-29



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                          |                                                     |                                |                         |       |       |     |   |        |       |       | 
|------------------------- | --------------------------------------------------- | ------------------------------ | ----------------------- | ----- | ----- | --- | - | ------ | ----- | ----- | 
|                          |                                                     | 2005                           |                         |       | 2004  |    
|                          |                                                     |                                |                         |       |       |    
|                          |                                                     | (in millions)                  |                        
|Deferred tax assets:      |                                                     |                                |                         |       |       |     |   |       
|                          | Marketing and sales incentive programs              |                                | $                       | 173   |       |     | $ | 136    |      
|                          | Allowance for credit losses                         |                                |                         | 80    |       |     |   | 41     |      
|                          | Pension, postretirement and postemployment benefits |                                |                         | 575   |       |     |   | 670    |      
|                          | Inventories                                         |                                |                         | 56    |       |     |   | 32     |      
|                          | Warranty and modification programs                  |                                |                         | 75    |       |     |   | 94     |      
|                          | Restructuring                                       |                                |                         | 29    |       |     |   | 10     |      
|                          | Other reserves                                      |                                |                         | 319   |       |     |   | 458    |      
|                          | Tax loss carryforwards                              |                                |                         | 1,143 |       |     |   | 1,496  |      
|                          | Less: Valuation allowance                           |                                |                         | (929  | )     |     |   | (1,025 | )    
|                          |                                                     |                                |                         |       |       |    
|                          |                                                     | Total deferred tax assets      |                         |       | 1,521 |     |   |        | 1,912 |      
|                          |                                                     |                                |                         |       |       |    
|Deferred tax liabilities: |                                                     |                                |                         |       |       |     |   |       
|                          | Property, plant and equipment, net                  |                                |                         | 118   |       |     |   | 67     |      
|                          | Intangibles assets                                  |                                |                         | 266   |       |     |   | 261    |      
|                          | Inventories                                         |                                |                         | 75    |       |     |   | 75     |      
|                          | Other                                               |                                |                         | 125   |       |     |   | 349    |      
|                          |                                                     |                                |                         |       |       |    
|                          |                                                     | Total deferred tax liabilities |                         |       | 584   |     |   |        | 752   |      
|                          |                                                     |                                |                         |       |       |    
|                          |                                                     |                                | Net deferred tax assets |       | $     | 937 |   |        | $     | 1,160 | 
|                          |                                                     |                                |                         |       |       |    



|                                                                             |                        |               |     |     |      |   |     |       | 
|---------------------------------------------------------------------------- | ---------------------- | ------------- | --- | --- | ---- | - | --- | ----- | 
|                                                                             |                        | 2005          |     |     | 2004 |  
|                                                                             |                        |               |     |     |      |  
|                                                                             |                        | (in millions) |    
|Current deferred tax asset                                                   |                        | $             | 534 |     |      | $ | 374 |      
|Long-term deferred tax asset (included in Other
    assets)                |                        |               | 518 |     |      |   | 858 |      
|Current deferred tax liability (included in Other accrued
    liabilities) |                        |               | (61 | )   |      |   | (5  | )    
|Long-term deferred tax liability (included in Other
    liabilities)       |                        |               | (54 | )   |      |   | (67 | )    
|                                                                             |                        |               |     |     |      |  
|                                                                             | Net deferred tax asset |               | $   | 937 |      |   | $   | 1,160 | 
|                                                                             |                        |               |     |     |      |  







F-30



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|         |              
|-------- | -------------
|Note 12: | Restructuring









| |   |                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | rationalization of the construction equipment manufacturing
    facility in Berlin, Germany                                                                                                                                                             
|
| |  | rationalization of the combine manufacturing plant in East
    Moline, United States                                                                                                                                                                    
|
| |  | rationalization of the crawler excavator product line and
    transfer of production of the loader/backhoe product line
    produced at the Crepy, France facility;                                                                                     
|
| |  | rationalization of the manufacturing facility in Neustadt,
    Germany, and                                                                                                                                                                             
|
| |  | other actions which take into consideration duplicate capacity
    and other synergies including purchasing and supply chain
    management, research and development and selling, general and
    administrative functions related to CNHs operations.



F-31



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                             |  |               |      |   |                  |   |     |             |  |   |               |   |  |       |     |   |  |   |      |  
|---------------------------- |  | ------------- | ---- | - | ---------------- | - | --- | ----------- |  | - | ------------- | - |  | ----- | --- | - |  | - | ---- | -
|                             |  | Severance and |      |   |                  |   |     |             |  |   |              
|                             |  | Other         |      |   |                  |   |     |             |  |   |              
|                             |  | Employee      |      |   | Facility Related |   |     | Asset       |  |   | Other         |   |  |      
|                             |  | Costs         |      |   | Costs            |   |     | Impairments |  |   | Restructuring |   |  | Total |    
|                             |  |               |      |   |                  |   |     |             |  |   |               |   |  |       |    
|                             |  | (in millions) |     
|Balance at January 1, 2003   |  | $             | 30   |   |                  | $ | 6   |             |  | $ | 3             |   |  | $     | 11  |   |  | $ | 50   |  
|Additions                    |  |               | 220  |   |                  |   | 6   |             |  |   | 38            |   |  |       | 10  |   |  |   | 274  |  
|Reserves utilized: cash      |  |               | (57  | ) |                  |   | (10 | )           |  |   |              |   |  |       | (10 | ) |  |   | (77  | )
|Reserves utilized: non-cash  |  |               | (148 | ) |                  |   |    |             |  |   | (24           | ) |  |       |    |   |  |   | (172 | )
|Changes in estimates         |  |               | (3   | ) |                  |   |    |             |  |   |              |   |  |       |    |   |  |   | (3   | )
|                             |  |               |      |   |                  |   |     |             |  |   |               |   |  |       |    
|Balance at December 31, 2003 |  |               | 42   |   |                  |   | 2   |             |  |   | 17            |   |  |       | 11  |   |  |   | 72   |  
|Additions                    |  |               | 55   |   |                  |   | 30  |             |  |   | 12            |   |  |       | 7   |   |  |   | 104  |  
|Reserves utilized: cash      |  |               | (60  | ) |                  |   | (31 | )           |  |   |              |   |  |       | (9  | ) |  |   | (100 | )
|Reserves utilized: non-cash  |  |               |     |   |                  |   |    |             |  |   | (29           | ) |  |       |    |   |  |   | (29  | )
|                             |  |               |      |   |                  |   |     |             |  |   |               |   |  |       |    
|Balance at December 31, 2004 |  |               | 37   |   |                  |   | 1   |             |  |   |              |   |  |       | 9   |   |  |   | 47   |  
|Additions                    |  |               | 61   |   |                  |   | 5   |             |  |   | 1             |   |  |       | 6   |   |  |   | 73   |  
|Reserves utilized: cash      |  |               | (51  | ) |                  |   | (6  | )           |  |   |              |   |  |       | (15 | ) |  |   | (72  | )
|Reserves utilized: non-cash  |  |               |     |   |                  |   |    |             |  |   | (1            | ) |  |       |    |   |  |   | (1   | )
|                             |  |               |      |   |                  |   |     |             |  |   |               |   |  |       |    
|Balance at December 31, 2005 |  | $             | 47   |   |                  | $ |    |             |  | $ |              |   |  | $     |    |   |  | $ | 47   |  
|                             |  |               |      |   |                  |   |     |             |  |   |               |   |  |       |    







|         |                                                   
|-------- | --------------------------------------------------
|Note 13: | Employee Benefit Plans and Postretirement Benefits







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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




106-2, 106-2). 106-2 re-measured








|                                                           |  |       |       |  |          |  |       |       |  |  |          |  |  |       |       |  |          |  |       |  |  |  |       | 
|---------------------------------------------------------- |  | ----- | ----- |  | -------- |  | ----- | ----- |  |  | -------- |  |  | ----- | ----- |  | -------- |  | ----- |  |  |  | ----- | 
|                                                           |  | 2005  |       |  | 2004     |  |       | 2003  | 
|                                                           |  |       |       |  |          |  |       |       | 
|                                                           |  | U.S.  |       |  | Non-U.S. |  |       | U.S.  |  |  | Non-U.S. |  |  | U.S.  |       |  | Non-U.S. | 
|                                                           |  | Plans |       |  | Plans    |  |       | Plans |  |  | Plans    |  |  | Plans |       |  | Plans    | 
|                                                           |  |       |       |  |          |  |       |       |  |  |          |  |  |       |       |  |          | 
|Weighted-average discount rates for obligations            |  |       | 5.50% |  |          |  | 4.57% |       |  |  | 5.75%    |  |  |       | 5.07% |  |          |  | 6.25% |  |  |  | 5.31% | 
|Weighted-average discount rates for expense                |  |       | 5.75% |  |          |  | 5.07% |       |  |  | 6.25%    |  |  |       | 5.31% |  |          |  | 6.75% |  |  |  | 5.58% | 
|Rate of increase in future compensation                    |  |       | N/A   |  |          |  | 2.73% |       |  |  | N/A      |  |  |       | 3.45% |  |          |  | N/A   |  |  |  | 3.43% | 
|Weighted-average, long-term rates of return on plan assets |  |       | 8.25% |  |          |  | 7.16% |       |  |  | 8.75%    |  |  |       | 7.16% |  |          |  | 8.75% |  |  |  | 7.33% | 

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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                               |  |       |       |   |          |  |      |       |  |  |          |   |  |       |      |   |          |  |       |   |  |  |      |  
|-------------------------------------------------------------- |  | ----- | ----- | - | -------- |  | ---- | ----- |  |  | -------- | - |  | ----- | ---- | - | -------- |  | ----- | - |  |  | ---- | -
|                                                               |  | 2005  |       |   | 2004     |  |      | 2003  | 
|                                                               |  |       |       |   |          |  |      |       | 
|                                                               |  | U.S.  |       |   | Canadian |  |      | U.S.  |  |  | Canadian |   |  | U.S.  |      |   | Canadian | 
|                                                               |  | Plans |       |   | Plan     |  |      | Plans |  |  | Plan     |   |  | Plans |      |   | Plan     | 
|                                                               |  |       |       |   |          |  |      |       |  |  |          |   |  |       |      |   |          | 
|Weighted-average discount rates for obligations                |  |       | 5.50  | % |          |  | 5.00 | %     |  |  | 5.75     | % |  |       | 5.75 | % |          |  | 6.25  | % |  |  | 6.00 | %
|Weighted-average discount rates for expense (A)                |  |       | 5.75  | % |          |  | 5.75 | %     |  |  | 6.25     | % |  |       | 6.00 | % |          |  | 6.75  | % |  |  | 6.75 | %
|Rate of increase in future compensation                        |  |       | 4.00  | % |          |  | 3.50 | %     |  |  | 4.00     | % |  |       | 3.50 | % |          |  | 4.00  | % |  |  | 3.50 | %
|Weighted-average, assumed initial healthcare cost trend rate   |  |       | 10.00 | % |          |  | 9.00 | %     |  |  | 10.00    | % |  |       | 9.00 | % |          |  | 10.00 | % |  |  | 9.00 | %
|Weighted-average, assumed ultimate healthcare cost trend rate  |  |       | 5.00  | % |          |  | 5.00 | %     |  |  | 5.00     | % |  |       | 5.00 | % |          |  | 5.00  | % |  |  | 5.00 | %
|Year anticipated attaining ultimate healthcare cost trend rate |  |       | 2011  |   |          |  | 2014 |       |  |  | 2010     |   |  |       | 2013 |   |          |  | 2009  |   |  |  | 2012 |  






th th






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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                |                   |            |  |               |              |  |  |             |               |  |              |    |   |               |  |     |              |  |  |      |   |  |      |    |   |      |  |    |   |  |  |    |   |  |  |    |  
|--------------- | ----------------- | ---------- |  | ------------- | ------------ |  |  | ----------- | ------------- |  | ------------ | -- | - | ------------- |  | --- | ------------ |  |  | ---- | - |  | ---- | -- | - | ---- |  | -- | - |  |  | -- | - |  |  | -- | -
|                |                   | U.S. Plans |  |               | U.K. Plans   |  |  | Other Plans |              
|                |                   |            |  |               |              |  |  |             |              
|                |                   |            |  | Percentage of |              |  |  |             | Percentage of |  |              |    |   | Percentage of | 
|                |                   |            |  | Plan Assets   |              |  |  |             | Plan Assets   |  |              |    |   | Plan Assets   | 
|                |                   | Target     |  |               | as of        |  |  | Target      |               |  | as of        |    |   | Target        |  |     | as of        | 
|                |                   | Allocation |  |               | December 31, |  |  | Allocation  |               |  | December 31, |    |   | Allocation    |  |     | December 31, | 
|                |                   | 2006       |  |               | 2005         |  |  | 2004        |               |  | 2006         |    |   | 2005          |  |     | 2004         |  |  | 2006 |   |  | 2005 |    |   | 2004 | 
|                |                   |            |  |               |              |  |  |             |               |  |              |    |   |               |  |     |              |  |  |      |   |  |      |    |   |      | 
|Asset category: |                   |            |  |               |              |  |  |             |               |  |              |    |   |               |  |     |              |  |  |      |   |  |      |    |   |      |  |    |   |  |  |    |   |  |  |   
|                | Equity securities |            |  | 53            | %            |  |  | 53          | %             |  |              | 54 | % |               |  | 60% |              |  |  | 61   | % |  |      | 59 | % |      |  | 54 | % |  |  | 56 | % |  |  | 65 | %
|                | Debt securities   |            |  | 47            | %            |  |  | 47          | %             |  |              | 46 | % |               |  | 40% |              |  |  | 39   | % |  |      | 41 | % |      |  | 35 | % |  |  | 18 | % |  |  | 12 | %
|                | Cash/ Other       |            |  |              | %            |  |  |            | %             |  |              |   | % |               |  | %  |              |  |  |     | % |  |      |   | % |      |  | 11 | % |  |  | 26 | % |  |  | 23 | %







|                                              |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |    |    |  |   |    |     | 
|--------------------------------------------- | --------------- | ---------------- | --- | -------------- | -------- | ----- | ------ | ------------- | -------- | - | -------- | --- |  | ----- | -- | -- |  | - | -- | --- | 
|                                              |                 |                  |     |                |          | Other |        |               | Medicare |  
|                                              |                 |                  |     | Postretirement |          |       | Part D |              
|                                              |                 | Pension Benefits |     |                | Benefits |       |        | Reimbursement |         
|                                              |                 |                  |     |                |          |       |        |               |         
|                                              |                 | U.S.             |     |                | Non-U.S. |       |        | U.S.          |          |   | Non-U.S. |     |  | U.S.  |   
|                                              |                 | Plans            |     |                | Plans    |       |        | Plans         |          |   | Plans    |     |  | Plans |   
|                                              |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |   
|                                              |                 | (in millions)    |    
|Employer Contributions:                       |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |    |    |  |   |    |    
|                                              | 2006 (expected) |                  | $   | 120            |          |       | $      | 68            |          |   | $        | 70  |  |       | $  | 4  |  |   | $  | N/A | 
|                                              |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |   
|Expected benefit payments and reimbursements: |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |    |    |  |   |    |    
|                                              | 2006            |                  | $   | 72             |          |       | $      | 85            |          |   | $        | 88  |  |       | $  | 2  |  |   | $  | 1   | 
|                                              | 2007            |                  |     | 73             |          |       |        | 91            |          |   |          | 84  |  |       |    | 3  |  |   |    | 2   | 
|                                              | 2008            |                  |     | 73             |          |       |        | 96            |          |   |          | 84  |  |       |    | 3  |  |   |    | 1   | 
|                                              | 2009            |                  |     | 74             |          |       |        | 99            |          |   |          | 89  |  |       |    | 3  |  |   |    | 2   | 
|                                              | 2010            |                  |     | 74             |          |       |        | 101           |          |   |          | 89  |  |       |    | 3  |  |   |    | 2   | 
|                                              | 2011  2015     |                  |     | 380            |          |       |        | 505           |          |   |          | 481 |  |       |    | 14 |  |   |    | 14  | 
|                                              |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |   
|Total                                         |                 | $                | 746 |                |          | $     | 977    |               |          | $ | 915      |     |  | $     | 28 |    |  | $ | 22 |    
|                                              |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |   

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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                              |  |                  |       |                      |          |   |        |      |  |   |        |   |  |   |        |  
|--------------------------------------------------------------------------------------------- |  | ---------------- | ----- | -------------------- | -------- | - | ------ | ---- |  | - | ------ | - |  | - | ------ | -
|                                                                                              |  |                  |       | Other Postretirement |         
|                                                                                              |  | Pension Benefits |       |                      | Benefits |  
|                                                                                              |  |                  |       |                      |          |  
|                                                                                              |  | 2005             |       |                      | 2004     |   |        | 2005 |  |   | 2004   |  
|                                                                                              |  |                  |       |                      |          |   |        |      |  |   |        |  
|                                                                                              |  | (in millions)    |      
|Change in benefit obligations:                                                                |  |                  |       |                      |          |   |        |      |  |   |        |   |  |   |        |  
|Actuarial present value of benefit obligation at beginning of
    measurement period          |  | $                | 2,816 |                      |          | $ | 2,426  |      |  | $ | 1,616  |   |  | $ | 1,494  |  
|Service cost                                                                                  |  |                  | 37    |                      |          |   | 26     |      |  |   | 15     |   |  |   | 15     |  
|Interest cost                                                                                 |  |                  | 146   |                      |          |   | 142    |      |  |   | 75     |   |  |   | 83     |  
|Plan participants contributions                                                              |  |                  | 1     |                      |          |   | 5      |      |  |   | 8      |   |  |   | 7      |  
|Actuarial loss                                                                                |  |                  | 233   |                      |          |   | 276    |      |  |   | 220    |   |  |   | 197    |  
|Currency translation adjustments                                                              |  |                  | (209  | )                    |          |   | 127    |      |  |   | 2      |   |  |   | 3      |  
|Gross benefits paid                                                                           |  |                  | (175  | )                    |          |   | (156   | )    |  |   | (80    | ) |  |   | (75    | )
|Plan amendments                                                                               |  |                  | 17    |                      |          |   | (30    | )    |  |   | (186   | ) |  |   | (34    | )
|Medicare Part D                                                                               |  |                  |      |                      |          |   |       |      |  |   |       |   |  |   | (74    | )
|                                                                                              |  |                  |       |                      |          |   |        |      |  |   |        |  
|Actuarial present value of benefit obligation at end of
    measurement period                |  |                  | 2,866 |                      |          |   | 2,816  |      |  |   | 1,670  |   |  |   | 1,616  |  
|                                                                                              |  |                  |       |                      |          |   |        |      |  |   |        |  
|Change in plan assets:                                                                        |  |                  |       |                      |          |   |        |      |  |   |        |   |  |   |        |  
|Plan assets at fair value at beginning of measurement period                                  |  |                  | 1,685 |                      |          |   | 1,393  |      |  |   |       |   |  |   |       |  
|Actual return on plan assets                                                                  |  |                  | 230   |                      |          |   | 164    |      |  |   |       |   |  |   |       |  
|Currency translation adjustments                                                              |  |                  | (51   | )                    |          |   | 71     |      |  |   |       |   |  |   |       |  
|Employer contributions                                                                        |  |                  | 182   |                      |          |   | 208    |      |  |   | 72     |   |  |   | 68     |  
|Plan participants contributions                                                              |  |                  | 1     |                      |          |   | 5      |      |  |   | 8      |   |  |   | 7      |  
|Gross benefits paid                                                                           |  |                  | (175  | )                    |          |   | (156   | )    |  |   | (80    | ) |  |   | (75    | )
|                                                                                              |  |                  |       |                      |          |   |        |      |  |   |        |  
|Plan assets at fair value at end of measurement period                                        |  |                  | 1,872 |                      |          |   | 1,685  |      |  |   |       |   |  |   |       |  
|                                                                                              |  |                  |       |                      |          |   |        |      |  |   |        |  
|Funded status:                                                                                |  |                  | (994  | )                    |          |   | (1,131 | )    |  |   | (1,670 | ) |  |   | (1,616 | )
|Unrecognized prior service cost                                                               |  |                  | 3     |                      |          |   | 15     |      |  |   | (198   | ) |  |   | (55    | )
|Unrecognized net loss resulting from plan experience and changes
    in actuarial assumptions |  |                  | 849   |                      |          |   | 892    |      |  |   | 925    |   |  |   | 783    |  
|Remaining unrecognized net asset at initial application                                       |  |                  |      |                      |          |   |       |      |  |   | 14     |   |  |   | 26     |  
|                                                                                              |  |                  |       |                      |          |   |        |      |  |   |        |  
|Net amount recognized at end of year                                                          |  | $                | (142  | )                    |          | $ | (224   | )    |  | $ | (929   | ) |  | $ | (862   | )
|                                                                                              |  |                  |       |                      |          |   |        |      |  |   |        |  

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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                                      |  |                  |        |                |          |       |        |      |  |   |      |   |  |   |      |  
|--------------------------------------------------------------------- |  | ---------------- | ------ | -------------- | -------- | ----- | ------ | ---- |  | - | ---- | - |  | - | ---- | -
|                                                                      |  |                  |        |                |          | Other |       
|                                                                      |  |                  |        | Postretirement |         
|                                                                      |  | Pension Benefits |        |                | Benefits |      
|                                                                      |  |                  |        |                |          |      
|                                                                      |  | 2005             |        |                | 2004     |       |        | 2005 |  |   | 2004 |  
|                                                                      |  |                  |        |                |          |       |        |      |  |   |      |  
|                                                                      |  | (in millions)    |       
|Amounts recognized in the consolidated balance sheets consist
    of: |  |                  |        |                |          |       |        |      |  |   |      |   |  |   |      |  
|Prepaid benefit cost                                                  |  | $                | 380    |                |          | $     | 218    |      |  | $ |     |   |  | $ |     |  
|Investments in unconsolidated subsidiaries and affiliates             |  |                  | (8     | )              |          |       | (8     | )    |  |   |     |   |  |   |     |  
|Accrued benefit liability                                             |  |                  | (1,239 | )              |          |       | (1,213 | )    |  |   | (929 | ) |  |   | (862 | )
|Intangible asset                                                      |  |                  | 26     |                |          |       | 37     |      |  |   |     |   |  |   |     |  
|Deferred tax assets                                                   |  |                  | 253    |                |          |       | 280    |      |  |   |     |   |  |   |     |  
|Accumulated other comprehensive loss                                  |  |                  | 446    |                |          |       | 462    |      |  |   |     |   |  |   |     |  
|                                                                      |  |                  |        |                |          |       |        |      |  |   |      |  
|Net amount recognized at end of year                                  |  | $                | (142   | )              |          | $     | (224   | )    |  | $ | (929 | ) |  | $ | (862 | )
|                                                                      |  |                  |        |                |          |       |        |      |  |   |      |  



|                                         |                    |                  |      |                      |          |   |      |      |    |   |      |    |     |      |     |     |      |   |     |     |     |   |     |     |     | 
|---------------------------------------- | ------------------ | ---------------- | ---- | -------------------- | -------- | - | ---- | ---- | -- | - | ---- | -- | --- | ---- | --- | --- | ---- | - | --- | --- | --- | - | --- | --- | --- | 
|                                         |                    |                  |      | Other Postretirement |         
|                                         |                    | Pension Benefits |      |                      | Benefits |  
|                                         |                    |                  |      |                      |          |  
|                                         |                    | 2005             |      |                      | 2004     |   |      | 2003 |    |   | 2005 |    |     | 2004 |     |     | 2003 |  
|                                         |                    |                  |      |                      |          |   |      |      |    |   |      |    |     |      |     |     |      |  
|                                         |                    | (in millions)    |     
|Components of net periodic benefit cost: |                    |                  |      |                      |          |   |      |      |    |   |      |    |     |      |     |     |      |   |     |     |     |   |     |    
|Service cost                             |                    | $                | 37   |                      |          | $ | 26   |      |    | $ | 27   |    |     | $    | 15  |     |      | $ | 15  |     |     | $ | 17  |    
|Interest cost                            |                    |                  | 146  |                      |          |   | 142  |      |    |   | 123  |    |     |      | 75  |     |      |   | 83  |     |     |   | 71  |    
|Expected return on assets                |                    |                  | (128 | )                    |          |   | (121 | )    |    |   | (95  | )  |     |      |    |     |      |   |    |     |     |   |    |    
|Amortization of:                         |                    |                  |      |                      |          |   |      |      |    |   |      |    |     |      |     |     |      |   |     |     |     |   |     |    
|                                         | Transition asset   |                  |      |                     |          |   |      |     |    |   |      |   |     |      |     | 7   |      |   |     | 9   |     |   |     | 9   |    
|                                         | Prior service cost |                  |      | 2                    |          |   |      | 3    |    |   |      | 3  |     |      |     | (36 | )    |   |     | (23 | )   |   |     | (17 | )  
|                                         | Actuarial loss     |                  |      | 78                   |          |   |      | 47   |    |   |      | 49 |     |      |     | 77  |      |   |     | 50  |     |   |     | 35  |    
|                                         |                    |                  |      |                      |          |   |      |      |    |   |      |    |     |      |     |     |      |  
|Net periodic benefit cost                |                    |                  | 135  |                      |          |   | 97   |      |    |   | 107  |    |     |      | 138 |     |      |   | 134 |     |     |   | 115 |    
|Curtailment loss                         |                    |                  |     |                      |          |   |     |      |    |   | 58   |    |     |      |    |     |      |   |    |     |     |   | 93  |    
|                                         |                    |                  |      |                      |          |   |      |      |    |   |      |    |     |      |     |     |      |  
|                                         |                    | Total expense    |      | $                    | 135      |   |      | $    | 97 |   |      | $  | 165 |      |     | $   | 138  |   |     | $   | 134 |   |     | $   | 208 | 
|                                         |                    |                  |      |                      |          |   |      |      |    |   |      |    |     |      |     |     |      |  





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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |               
| | --------------
| | Other Programs





| |                           
| | --------------------------
| | Defined Contribution Plans



Note 14: Other Accrued Liabilities




|                                          |                                 |               |     |       |      |   |     |       | 
|----------------------------------------- | ------------------------------- | ------------- | --- | ----- | ---- | - | --- | ----- | 
|                                          |                                 | 2005          |     |       | 2004 |  
|                                          |                                 |               |     |       |      |  
|                                          |                                 | (in millions) |    
|Marketing and sales incentive programs    |                                 | $             | 533 |       |      | $ | 407 |      
|Warranty and modification programs        |                                 |               | 192 |       |      |   | 198 |      
|Accrued payroll and incentives            |                                 |               | 204 |       |      |   | 181 |      
|Value-added taxes and other taxes payable |                                 |               | 107 |       |      |   | 165 |      
|Other accrued expenses                    |                                 |               | 759 |       |      |   | 767 |      
|                                          |                                 |               |     |       |      |  
|                                          | Total other accrued liabilities |               | $   | 1,795 |      |   | $   | 1,718 | 
|                                          |                                 |               |     |       |      |  

Note 15: Commitments and Contingencies






| |              
| | -------------
| | Environmental





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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


non-U.S.




on-site




F-39



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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                  
| | -----------------
| | Product Liability





| |                 
| | ----------------
| | Other Litigation

(Yolton,
et. Al v. El Paso Tennessee Pipeline Co., and Case
Corporation a/k/a/ Case Power Equipment Corporation, Docket
number 02-74276)


F-40



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




(In re: Walterman
Implement, Inc. 05-07284,




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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




In the Matter of Certain Participants in the Oil for Food
Program.




| |            
| | -----------
| | Commitments



|                |                                  |               |    |     | 
|--------------- | -------------------------------- | ------------- | -- | --- | 
|                |                                  | Amount        |   
|                |                                  |               |   
|                |                                  | (in millions) |   
|2006            |                                  | $             | 35 |    
|2007            |                                  |               | 25 |    
|2008            |                                  |               | 25 |    
|2009            |                                  |               | 16 |    
|2010            |                                  |               | 13 |    
|2011 and beyond |                                  |               | 48 |    
|                |                                  |               |   
|                | Total minimum rental commitments |               | $  | 162 | 
|                |                                  |               |   







| |           
| | ----------
| | Guarantees



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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                                   
| | ----------------------------------
| | Warranty and Modification Programs



|                                  |  |               |      |   |      |   |      |  
|--------------------------------- |  | ------------- | ---- | - | ---- | - | ---- | -
|                                  |  | 2005          |      |   | 2004 |  
|                                  |  |               |      |   |      |  
|                                  |  | (in millions) |     
|Balance, beginning of year        |  | $             | 198  |   |      | $ | 183  |  
|Current year provision            |  |               | 300  |   |      |   | 287  |  
|Claims paid and other adjustments |  |               | (306 | ) |      |   | (272 | )
|                                  |  |               |      |   |      |  
|Balance, end of year              |  | $             | 192  |   |      | $ | 198  |  
|                                  |  |               |      |   |      |  

Note 16: Financial Instruments


A. Fair Market Value of Financial Instruments




|                                                             |  |               |       |   |       |   |       |          |  |   |       |  |  |   |       | 
|------------------------------------------------------------ |  | ------------- | ----- | - | ----- | - | ----- | -------- |  | - | ----- |  |  | - | ----- | 
|                                                             |  | 2005          |       |   | 2004  |  
|                                                             |  |               |       |   |       |  
|                                                             |  | Carrying      |       |   | Fair  |   |       | Carrying |  |   | Fair  | 
|                                                             |  | Amount        |       |   | Value |   |       | Amount   |  |   | Value | 
|                                                             |  |               |       |   |       |   |       |          |  |   |       | 
|                                                             |  | (in millions) |      
|Accounts and notes receivable, net and long term receivables |  | $             | 5,841 |   |       | $ | 5,858 |          |  | $ | 5,895 |  |  | $ | 5,906 | 
|Long-term debt                                               |  | $             | 4,765 |   |       | $ | 4,883 |          |  | $ | 4,906 |  |  | $ | 5,047 | 
|Derivative contracts, net asset (liability)                  |  | $             | (70   | ) |       | $ | (70   | )        |  | $ | 8     |  |  | $ | 8     | 



| |                                                                 
| | ----------------------------------------------------------------
| | Accounts and notes receivable, net and long term
    receivables





| |               
| | --------------
| | Long-term debt



F-43



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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                          
| | -------------------------
| | Derivative contracts, net



B. Derivatives






| |                           
| | --------------------------
| | Foreign Exchange Contracts









| |                          
| | -------------------------
| | Interest Rate Derivatives



F-44



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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










Note 17: Shareholders Equity


 






F-45



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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












F-46



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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                         |                                                          |                |         |          |                   |  |         |      |  |  |         |       |  |      |       |   |      |  |       |   |  |  |       |   | 
|---------------------------------------- | -------------------------------------------------------- | -------------- | ------- | -------- | ----------------- |  | ------- | ---- |  |  | ------- | ----- |  | ---- | ----- | - | ---- |  | ----- | - |  |  | ----- | - | 
|                                         |                                                          |                |         | Series A |                  
|                                         |                                                          | Common Shares  |         |          | Preference Shares | 
|                                         |                                                          |                |         |          |                   | 
|                                         |                                                          | 2005           |         |          | 2004              |  |         | 2003 |  |  | 2005    |       |  | 2004 |       |   | 2003 | 
|                                         |                                                          |                |         |          |                   |  |         |      |  |  |         |       |  |      |       |   |      | 
|                                         |                                                          | (in thousands) |        
|Issued as of beginning of year           |                                                          |                | 133,937 |          |                   |  | 132,914 |      |  |  | 131,238 |       |  |      | 8,000 |   |      |  | 8,000 |   |  |  |      |  
|Issuances of CNH Common Shares:          |                                                          |                |         |          |                   |  |         |      |  |  |         |       |  |      |       |   |      |  |       |   |  |  |       |  
|                                         | Contributions to CNH benefit plans                       |                |         | 904      |                   |  |         | 918  |  |  |         | 1,463 |  |      |       |  |      |  |       |  |  |  |       |  | 
|                                         | Restricted shares issued under the equity incentive plan |                |         |         |                   |  |         |     |  |  |         | 207   |  |      |       |  |      |  |       |  |  |  |       |  | 
|                                         | Stock option exercises                                   |                |         | 179      |                   |  |         | 105  |  |  |         | 6     |  |      |       |  |      |  |       |  |  |  |       |  | 
|Issuance of CNH Series A Preferred Stock |                                                          |                |        |          |                   |  |        |      |  |  |        |       |  |      |      |   |      |  |      |   |  |  | 8,000 |  
|                                         |                                                          |                |         |          |                   |  |         |      |  |  |         |       |  |      |       |   |      | 
|Issued as of end of year                 |                                                          |                | 135,020 |          |                   |  | 133,937 |      |  |  | 132,914 |       |  |      | 8,000 |   |      |  | 8,000 |   |  |  | 8,000 |  
|                                         |                                                          |                |         |          |                   |  |         |      |  |  |         |       |  |      |       |   |      | 



Note 18: Option and Incentive Plans




| |                    
| | -------------------
| | CNH Directors Plan



F-47



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                 |           |        |         |          |        |   |       |        |          |  |         |         |   |          |       |       |        |  |         |        |  |   |       |       | 
|-------------------------------- | --------- | ------ | ------- | -------- | ------ | - | ----- | ------ | -------- |  | ------- | ------- | - | -------- | ----- | ----- | ------ |  | ------- | ------ |  | - | ----- | ----- | 
|                                 |           | 2005   |         |          | 2004   |   |       | 2003   |         
|                                 |           |        |         |          |        |   |       |        |         
|                                 |           |        |         | Exercise |        |   |       |        | Exercise |  |         |         |   | Exercise |      
|                                 |           | Shares |         |          | Price* |   |       | Shares |          |  | Price*  |         |   | Shares   |       |       | Price* | 
|                                 |           |        |         |          |        |   |       |        |          |  |         |         |   |          |       |       |        | 
|Outstanding at beginning of year |           |        | 142,005 |          |        | $ | 22.41 |        |          |  | 142,500 |         |   | $        | 22.76 |       |        |  | 82,464  |        |  | $ | 33.10 |      
|                                 | Granted   |        |         | 31,037   |        |   |       | 17.90  |          |  |         | 39,065  |   |          |       | 19.12 |        |  |         | 60,036 |  |   |       | 10.28 | 
|                                 | Forfeited |        |         | (4,000   | )      |   |       | 17.28  |          |  |         | (18,877 | ) |          |       | 35.18 |        |  |         |       |  |   |       |      | 
|                                 | Exercised |        |         |         |        |   |       |       |          |  |         | (20,683 | ) |          |       | 11.23 |        |  |         |       |  |   |       |      | 
|                                 |           |        |         |          |        |   |       |        |          |  |         |         |   |          |       |       |        | 
|Outstanding at end of year       |           |        | 169,042 |          |        |   | 21.71 |        |          |  | 142,005 |         |   |          | 22.41 |       |        |  | 142,500 |        |  |   | 22.76 |      
|                                 |           |        |         |          |        |   |       |        |          |  |         |         |   |          |       |       |        | 
|Exercisable at end of year       |           |        | 141,872 |          |        | $ | 22.50 |        |          |  | 112,714 |         |   |          | 23.45 |       |        |  | 95,009  |        |  |   | 25.68 |      
|                                 |           |        |         |          |        |   |       |        |          |  |         |         |   |          |       |       |        | 




|  |                 
|- | ----------------
|* | Weighted-average



|                        |  |                     |        |  |                     |  |     |          |  |   |             |  |  |          |        |  |  |   |       | 
|----------------------- |  | ------------------- | ------ |  | ------------------- |  | --- | -------- |  | - | ----------- |  |  | -------- | ------ |  |  | - | ----- | 
|                        |  | Options Outstanding |        |  | Options Exercisable | 
|                        |  |                     |        |  |                     | 
|                        |  | Shares              |        |  | Contractual         |  |     | Exercise |  |   | Shares      |  |  | Exercise |       
|Range of Exercise Price |  | Outstanding         |        |  | Life*               |  |     | Price*   |  |   | Exercisable |  |  | Price*   |       
|                        |  |                     |        |  |                     |  |     |          |  |   |             |  |  |          |       
|$ 9.15 - $15.70         |  |                     | 64,348 |  |                     |  | 7.3 |          |  | $ | 11.54       |  |  |          | 60,628 |  |  | $ | 11.68 | 
|$15.71 - $26.20         |  |                     | 71,055 |  |                     |  | 8.4 |          |  | $ | 20.80       |  |  |          | 47,605 |  |  | $ | 21.76 | 
|$26.21 - $40.00         |  |                     | 18,654 |  |                     |  | 5.5 |          |  | $ | 30.31       |  |  |          | 18,654 |  |  | $ | 30.31 | 
|$40.01 - $56.00         |  |                     | 4,460  |  |                     |  | 4.9 |          |  | $ | 49.31       |  |  |          | 4,460  |  |  | $ | 49.31 | 
|$56.01 - $77.05         |  |                     | 10,525 |  |                     |  | 4.3 |          |  | $ | 53.03       |  |  |          | 10,525 |  |  | $ | 63.03 | 




|  |                 
|- | ----------------
|* | Weighted-average



| |                          
| | -------------------------
| | CNH Equity Incentive Plan



F-48



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        |  |           |          |   |   |       |       | 
|-------------------------------- | --------- | ------ | --------- | -------- | ------ | - | ----- | ------ | -------- |  | --------- | -------- | - | -------- | ----- | ----- | ------ |  | --------- | -------- | - | - | ----- | ----- | 
|                                 |           | 2005   |           |          | 2004   |   |       | 2003   |         
|                                 |           |        |           |          |        |   |       |        |         
|                                 |           |        |           | Exercise |        |   |       |        | Exercise |  |           |          |   | Exercise |      
|                                 |           | Shares |           |          | Price* |   |       | Shares |          |  | Price*    |          |   | Shares   |       |       | Price* | 
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 
|Outstanding at beginning of year |           |        | 2,464,575 |          |        | $ | 33.68 |        |          |  | 2,719,842 |          |   | $        | 32.92 |       |        |  | 3,219,995 |          |   | $ | 34.35 |      
|                                 | Granted   |        |           | 10,000   |        |   |       | 18.06  |          |  |           | 20,000   |   |          |       | 18.21 |        |  |           | 3,000    |   |   |       | 19.25 | 
|                                 | Exercised |        |           | (178,700 | )      |   |       | 16.18  |          |  |           | (62,690  | ) |          |       | 16.18 |        |  |           |         |   |   |       |      | 
|                                 | Forfeited |        |           | (254,805 | )      |   |       | 49.83  |          |  |           | (212,577 | ) |          |       | 51.80 |        |  |           | (503,153 | ) |   |       | 41.97 | 
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 
|Outstanding at end of year       |           |        | 2,041,070 |          |        |   | 34.62 |        |          |  | 2,464,575 |          |   |          | 33.68 |       |        |  | 2,719,842 |          |   |   | 32.94 |      
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 
|Exercisable at end of year       |           |        | 1,747,634 |          |        |   | 36.76 |        |          |  | 1,655,585 |          |   |          | 39.38 |       |        |  | 1,216,093 |          |   |   | 42.43 |      
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 




|  |                 
|- | ----------------
|* | Weighted-average



|                        |  |                     |         |  |                     |  |     |          |  |   |             |  |  |          |         |  |  |   |       | 
|----------------------- |  | ------------------- | ------- |  | ------------------- |  | --- | -------- |  | - | ----------- |  |  | -------- | ------- |  |  | - | ----- | 
|                        |  | Options Outstanding |         |  | Options Exercisable | 
|                        |  |                     |         |  |                     | 
|                        |  | Shares              |         |  | Contractual         |  |     | Exercise |  |   | Shares      |  |  | Exercise |        
|Range of Exercise Price |  | Outstanding         |         |  | Life*               |  |     | Price*   |  |   | Exercisable |  |  | Price*   |        
|                        |  |                     |         |  |                     |  |     |          |  |   |             |  |  |          |        
|$15.20 - $26.20         |  |                     | 886,260 |  |                     |  | 6.6 |          |  | $ | 16.21       |  |  |          | 623,969 |  |  | $ | 16.19 | 
|$26.21 - $40.00         |  |                     | 625,000 |  |                     |  | 5.6 |          |  |   | 31.70       |  |  |          | 625,000 |  |  |   | 31.70 | 
|$40.01 - $77.05         |  |                     | 529,810 |  |                     |  | 4.1 |          |  |   | 68.85       |  |  |          | 498,665 |  |  |   | 68.85 | 




|  |                 
|- | ----------------
|* | Weighted-average





F-49



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                       |        |            |           |         |            |   |           |         | 
|------------------------------------------------------ | ------ | ---------- | --------- | ------- | ---------- | - | --------- | ------- | 
|                                                       |        | 2005 Award |           |         | 2004 Award |  
|                                                       |        |            |           |         |            |  
|Total potential shares subject to award                |        |            | 206,118   |         |            |   | 171,966   |        
|                                                       |        |            |           |         |            |  
|Total potential cash portion of award                  |        | $          | 3,836,479 |         |            | $ | 3,164,306 |        
|                                                       |        |            |           |         |            |  
|Of which, amounts relate to executive officers of CNH: |        |            |           |         |            |   |           |        
|                                                       | Shares |            |           | 31,119  |            |   |           | 24,634  | 
|                                                       |        |            |           |         |            |  
|                                                       | Cash   |            | $         | 563,137 |            |   | $         | 458,000 | 
|                                                       |        |            |           |         |            |  







| |                          
| | -------------------------
| | Fiat Stock Option Program



|              |  |               |        |                |          |  |         |         |  |  |         |  |  |           |         |  |             |  |         |           |  |  |             |   |  |             |   |  |  |  |         |  |  |  |         | 
|------------- |  | ------------- | ------ | -------------- | -------- |  | ------- | ------- |  |  | ------- |  |  | --------- | ------- |  | ----------- |  | ------- | --------- |  |  | ----------- | - |  | ----------- | - |  |  |  | ------- |  |  |  | ------- | 
|              |  |               |        | Exercise Price |          |  | Options |        
|              |  | Date of Grant |        |                |          |  |         |         | 
|Date of Grant |  | Share Price   |        |                | Original |  |         | Current |  |  | Granted |  |  | Transfers |         |  | Forfeitures |  |         | Exercises |  |  | Outstanding |   |  | Exercisable |  
|              |  |               |        |                |          |  |         |         |  |  |         |  |  |           |         |  |             |  |         |           |  |  |             |   |  |             |  
|3/30/1999     |  |               | 29.38 |                |          |  | 28.45  |         |  |  | 26.12  |  |  |           | 53,300  |  |             |  | 2,200   |           |  |  | (24,900     | ) |  |             |  |  |  |  | 30,600  |  |  |  | 30,600  | 
|2/18/2000     |  |               | 33.00  |                |          |  | 30.63   |         |  |  | 28.12   |  |  |           | 102,500 |  |             |  | (3,000  | )         |  |  | (24,500     | ) |  |             |  |  |  |  | 75,000  |  |  |  | 75,000  | 
|2/27/2001     |  |               | 26.77  |                |          |  | 27.07   |         |  |  | 24.85   |  |  |           | 50,000  |  |             |  | (50,000 | )         |  |  |            |   |  |             |  |  |  |  |         |  |  |  |        | 
|10/31/2001    |  |               | 18.06  |                |          |  | 18.00   |         |  |  | 16.52   |  |  |           | 249,000 |  |             |  | 10,000  |           |  |  | (95,000     | ) |  |             |  |  |  |  | 164,000 |  |  |  | 164,000 | 
|9/12/2002     |  |               | 11.88  |                |          |  | 11.16   |         |  |  | 10.39   |  |  |           | 513,000 |  |             |  | (43,000 | )         |  |  | (150,000    | ) |  |             |  |  |  |  | 320,000 |  |  |  | 240,000 | 



F-50



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                        
| | -----------------------
| | SFAS No. 123 Disclosure



|                    |  |      |       |  |      |   |       |      |  |   |       | 
|------------------- |  | ---- | ----- |  | ---- | - | ----- | ---- |  | - | ----- | 
|                    |  | 2005 |       |  | 2004 |   |       | 2003 | 
|                    |  |      |       |  |      |   |       |      | 
|CNH Directors Plan |  | $    | 10.13 |  |      | $ | 9.94  |      |  | $ | 5.87  | 
|CNH EIP             |  | $    | 10.18 |  |      | $ | 10.61 |      |  | $ | 11.04 | 



|                        |  |            |      |   |      |  |            |      |  |  |      |            |  |      |      |   |     |  |      |   |  |  |      |  
|----------------------- |  | ---------- | ---- | - | ---- |  | ---------- | ---- |  |  | ---- | ---------- |  | ---- | ---- | - | --- |  | ---- | - |  |  | ---- | -
|                        |  | 2005       |      |   | 2004 |  |            | 2003 | 
|                        |  |            |      |   |      |  |            |      | 
|                        |  | Directors |      |   |      |  | Directors |      |  |  |      | Directors |  |      |     
|                        |  | Plan       |      |   | EIP  |  |            | Plan |  |  | EIP  |            |  | Plan |      |   | EIP | 
|                        |  |            |      |   |      |  |            |      |  |  |      |            |  |      |      |   |     | 
|Risk-free interest rate |  |            | 3.9  | % |      |  | 3.7        | %    |  |  | 3.4  | %          |  |      | 3.5  | % |     |  | 2.7  | % |  |  | 3.0  | %
|Dividend yield          |  |            | 1.3  | % |      |  | 1.3        | %    |  |  | 1.3  | %          |  |      | 1.3  | % |     |  | 2.1  | % |  |  | 2.1  | %
|Stock price volatility  |  |            | 72.0 | % |      |  | 71.5       | %    |  |  | 75.0 | %          |  |      | 75.3 | % |     |  | 79.8 | % |  |  | 79.8 | %
|Option life (years)     |  |            | 5.0  |   |      |  | 5.0        |      |  |  | 5.0  |            |  |      | 5.0  |   |     |  | 5.0  |   |  |  | 5.0  |  



Note 19: Earnings (Loss) per Share


03-06




F-51



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                    |                                                      |   |      |         |  |   |         |      |  |   |       |       |  
|-------- | -------------------------------------------------- | ---------------------------------------------------- | - | ---- | ------- |  | - | ------- | ---- |  | - | ----- | ----- | -
|         |                                                    | 2005                                                 |   |      | 2004(A) |  |   | 2003(A) |     
|         |                                                    |                                                      |   |      |         |  |   |         |     
|         |                                                    | (In millions, except per share                       |  
|         |                                                    | data)                                                |  
|Basic:   |                                                    |                                                      |   |      |         |  |   |         |      |  |   |      
|         | Net income (loss)                                  |                                                      | $ | 163  |         |  | $ | 125     |      |  | $ | (157  | )    
|         | Dividend to common shares ($0.25 per share)        |                                                      |   | (34  | )       |  |   |        |      |  |   |      |      
|         |                                                    |                                                      |   |      |         |  |   |         |     
|         | Undistributed earnings                             |                                                      |   | 129  |         |  |   | 125     |      |  |   | (157  | )    
|         | Earnings allocated to Series A Preferred Stock     |                                                      |   | (59  | )       |  |   |        |      |  |   |      |      
|         |                                                    |                                                      |   |      |         |  |   |         |     
|         | Earnings available to common shareholders          |                                                      |   | 70   |         |  |   | 125     |      |  |   | (157  | )    
|         | Dividend to common shares                          |                                                      |   | 34   |         |  |   |        |      |  |   |      |      
|         |                                                    |                                                      |   |      |         |  |   |         |     
|         | Net income (loss) available to common shareholders |                                                      | $ | 104  |         |  | $ | 125     |      |  | $ | (157  | )    
|         |                                                    |                                                      |   |      |         |  |   |         |     
|         | Weighted average common shares outstanding  basic |                                                      |   | 134  |         |  |   | 133     |      |  |   | 132   |      
|         |                                                    |                                                      |   |      |         |  |   |         |     
|         | Basic earnings (loss) per share                    |                                                      | $ | 0.77 |         |  | $ | 0.94    |      |  | $ | (1.19 | )    
|         |                                                    |                                                      |   |      |         |  |   |         |     
|Diluted: |                                                    |                                                      |   |      |         |  |   |         |      |  |   |      
|         | Net income (loss)                                  |                                                      | $ | 163  |         |  | $ | 125     |      |  | $ | (157  | )    
|         |                                                    |                                                      |   |      |         |  |   |         |     
|         | Weighted average common shares outstanding  basic |                                                      |   | 134  |         |  |   | 133     |      |  |   | 132   |      
|         | Effect of dilutive securities (when dilutive):     |                                                      |   |      |         |  |   |         |      |  |   |       |      
|         |                                                    | Series A Preferred Stock                             |   |      | 100     |  |   |         | 100  |  |   |       |      |  
|         |                                                    | Stock Compensation Plans(B)                          |   |      |        |  |   |         |     |  |   |       |      |  
|         |                                                    |                                                      |   |      |         |  |   |         |     
|         |                                                    | Weighted average common shares outstanding  diluted |   |      | 234     |  |   |         | 233  |  |   |       | 132   |  
|         |                                                    |                                                      |   |      |         |  |   |         |     
|         |                                                    | Diluted earnings (loss) per share                    |   | $    | 0.70    |  |   | $       | 0.54 |  |   | $     | (1.19 | )
|         |                                                    |                                                      |   |      |         |  |   |         |     






|    |                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) | -EITF 03-6 did not impact basic earnings per share in 2004 or
    2003 as the Series A Preferred Stock was not considered
    participating during 2004 or 2003.



|    |                                                                                                                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(B) | Stock options to purchase approximately 1.2 million,
    1.2 million and 2.9 million shares during 2005, 2004
    and 2003, respectively, were outstanding but not included in the
    calculation of diluted earnings (loss) per share as the impact
    of these options would have been anti-dilutive.

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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 20: Accumulated Other Comprehensive Income
(Loss)




|                                                                                                           |       |               |      |      |      |   |      |      |  
|---------------------------------------------------------------------------------------------------------- | ----- | ------------- | ---- | ---- | ---- | - | ---- | ---- | -
|                                                                                                           |       | 2005          |      |      | 2004 |  
|                                                                                                           |       |               |      |      |      |  
|                                                                                                           |       | (in millions) |     
|Cumulative translation adjustment                                                                          |       | $             | (138 | )    |      | $ | (70  | )   
|Minimum pension liability adjustment, net of taxes ($253 and
    $280, respectively)                       |       |               | (446 | )    |      |   | (462 | )   
|Deferred gains (losses) on derivative financial instruments, net
    of taxes ($16 and $(9), respectively) |       |               | (51  | )    |      |   | 18   |     
|Unrealized gain on available for sale securities, net of taxes
    ($3 and $11, respectively)              |       |               | 9    |      |      |   | 18   |     
|                                                                                                           |       |               |      |      |      |  
|                                                                                                           | Total |               | $    | (626 | )    |   | $    | (496 | )
|                                                                                                           |       |               |      |      |      |  

Note 21: Segment and Geographical Information




| |                    
| | -------------------
| | Segment Information





| |                       
| | ----------------------
| | Agricultural Equipment





| |                       
| | ----------------------
| | Construction Equipment





| |                   
| | ------------------
| | Financial Services





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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














|                                                                                                                             |                                                                                                                                                                           |                                                                             |     |  |      |   |     |  |      |  
|---------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------- | --- |  | ---- | - | --- |  | ---- | -
|                                                                                                                             |                                                                                                                                                                           | Years Ended                                                                 |    
|                                                                                                                             |                                                                                                                                                                           | December 31,                                                                |    
|                                                                                                                             |                                                                                                                                                                           | 2005                                                                        |     |  | 2004 |  
|                                                                                                                             |                                                                                                                                                                           |                                                                             |     |  |      |  
|                                                                                                                             |                                                                                                                                                                           | (in millions)                                                               |    
|Trading profit reported to Fiat under IFRS                                                                                   |                                                                                                                                                                           | $                                                                           | 869 |  |      | $ | 581 | 
|                                                                                                                             | Adjustments to convert from trading profit to U.S. GAAP
    income (loss) before taxes, minority interest and equity in
    income (loss) of unconsolidated subsidiaries: |                                                                             |     |  |      |   |     |  |     
|                                                                                                                             |                                                                                                                                                                           | Accounting for benefit plans                                                |     |  | (258 | ) |     |  | (128 | )
|                                                                                                                             |                                                                                                                                                                           | Accounting for intangible assets, primarily development costs               |     |  | 11   |   |     |  | 20   |  
|                                                                                                                             |                                                                                                                                                                           | Restructuring                                                               |     |  | (73  | ) |     |  | (104 | )
|                                                                                                                             |                                                                                                                                                                           | Net financial expense                                                       |     |  | (283 | ) |     |  | (360 | )
|                                                                                                                             |                                                                                                                                                                           | Purchase accounting adjustment (see Note 9: Goodwill
    and Intangibles) |     |  |     |   |     |  | 165  |  
|                                                                                                                             |                                                                                                                                                                           | Accounting for receivable securitizations and other                         |     |  | (9   | ) |     |  | (15  | )
|                                                                                                                             |                                                                                                                                                                           |                                                                             |     |  |      |  
|Income (loss) before taxes, minority interest and equity in
    income (loss) of unconsolidated subsidiaries under U.S. GAAP |                                                                                                                                                                           | $                                                                           | 257 |  |      | $ | 159 | 
|                                                                                                                             |                                                                                                                                                                           |                                                                             |     |  |      |  

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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                       |                           |               |     |     |      |   |      |      | 
|---------------------- | ------------------------- | ------------- | --- | --- | ---- | - | ---- | ---- | 
|                       |                           | Years Ended   |    
|                       |                           | December 31,  |    
|                       |                           | 2005          |     |     | 2004 |  
|                       |                           |               |     |     |      |  
|                       |                           | (in millions) |    
|Agricultural equipment |                           | $             | 352 |     |      | $ | 352  |     
|Construction equipment |                           |               | 224 |     |      |   | 164  |     
|Financial services     |                           |               | 293 |     |      |   | 235  |     
|Eliminations and other |                           |               |    |     |      |   | (170 | )(A)
|                       |                           |               |     |     |      |  
|                       | Trading profit under IFRS |               | $   | 869 |      |   | $    | 581  | 
|                       |                           |               |     |     |      |  






|    |                                                                                          
|--- | -----------------------------------------------------------------------------------------
|(A) | Principally a purchase accounting adjustment (see
    Note 9: Goodwill and Intangibles)



|                               |                                                                                                           |               |   |        |      |  |   |        |  
|------------------------------ | --------------------------------------------------------------------------------------------------------- | ------------- | - | ------ | ---- |  | - | ------ | -
|                               |                                                                                                           | 2005          |   |        | 2004 | 
|                               |                                                                                                           |               |   |        |      | 
|                               |                                                                                                           | (in millions) |  
|Revenues:                      |                                                                                                           |               |   |        |      |  |   |       
|                               | Agricultural equipment                                                                                    |               | $ | 7,843  |      |  | $ | 8,000  |  
|                               | Construction equipment                                                                                    |               |   | 3,963  |      |  |   | 3,545  |  
|                               | Financial services                                                                                        |               |   | 1,094  |      |  |   | 905    |  
|                               | Eliminations                                                                                              |               |   | (194   | )    |  |   | (31    | )
|                               |                                                                                                           |               |   |        |      | 
|                               | Net revenues under IFRS                                                                                   |               |   | 12,706 |      |  |   | 12,419 |  
|                               | Difference, principally finance and interest income on
    receivables held by QSPEs (on-book under IFRS) |               |   | (131   | )    |  |   | (240   | )
|                               |                                                                                                           |               |   |        |      | 
|                               | Revenues under U.S. GAAP                                                                                  |               | $ | 12,575 |      |  | $ | 12,179 |  
|                               |                                                                                                           |               |   |        |      | 
|Depreciation and amortization: |                                                                                                           |               |   |        |      |  |   |       
|                               | Agricultural equipment                                                                                    |               | $ | 234    |      |  | $ | 233    |  
|                               | Construction equipment                                                                                    |               |   | 82     |      |  |   | 78     |  
|                               | Financial services                                                                                        |               |   | 46     |      |  |   | 64     |  
|                               |                                                                                                           |               |   |        |      | 
|                               | Depreciation and amortization under IFRS                                                                  |               |   | 362    |      |  |   | 375    |  
|                               | Difference, principally amortization of development costs
    capitalized under IFRS                      |               |   | (53    | )    |  |   | (50    | )
|                               |                                                                                                           |               |   |        |      | 
|                               | Depreciation and amortization under U.S. GAAP                                                             |               | $ | 309    |      |  | $ | 325    |  
|                               |                                                                                                           |               |   |        |      | 

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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                |                                                                                   |               |   |        |      |  |   |        |  
|--------------- | --------------------------------------------------------------------------------- | ------------- | - | ------ | ---- |  | - | ------ | -
|                |                                                                                   | 2005          |   |        | 2004 | 
|                |                                                                                   |               |   |        |      | 
|                |                                                                                   | (in millions) |  
|Segment assets: |                                                                                   |               |   |        |      |  |   |       
|                | Agricultural equipment*                                                           |               | $ | 6,041  |      |  | $ | 6,112  |  
|                | Construction equipment*                                                           |               |   | 2,553  |      |  |   | 2,561  |  
|                | Financial services                                                                |               |   | 13,522 |      |  |   | 12,246 |  
|                | Assets not allocated to segments, principally goodwill,
    intangibles and taxes |               |   | 7,986  |      |  |   | 8,185  |  
|                | Eliminations                                                                      |               |   | (6,190 | )    |  |   | (5,396 | )
|                |                                                                                   |               |   |        |      | 
|                | Segment assets under IFRS                                                         |               |   | 23,912 |      |  |   | 23,708 |  
|                | Difference, principally receivables held by QSPEs (on-book under
    IFRS)        |               |   | (6,594 | )    |  |   | (5,628 | )
|                |                                                                                   |               |   |        |      | 
|                | Total assets under U.S. GAAP                                                      |               | $ | 17,318 |      |  | $ | 18,080 |  
|                |                                                                                   |               |   |        |      | 






|  |                                                               
|- | --------------------------------------------------------------
|* | Includes receivables legally transferred to Financial Services

|                                                  |                                                                  |               |     |     |      |   |     |     |  
|------------------------------------------------- | ---------------------------------------------------------------- | ------------- | --- | --- | ---- | - | --- | --- | -
|                                                  |                                                                  | 2005          |     |     | 2004 |  
|                                                  |                                                                  |               |     |     |      |  
|                                                  |                                                                  | (in millions) |    
|Expenditures for additions to long-lived assets*: |                                                                  |               |     |     |      |   |     |    
|                                                  | Agricultural equipment                                           |               | $   | 144 |      |   | $   | 129 |  
|                                                  | Construction equipment                                           |               |     | 38  |      |   |     | 35  |  
|                                                  | Financial services                                               |               |     | 114 |      |   |     | 82  |  
|                                                  | Unallocated                                                      |               |     | 21  |      |   |     | 26  |  
|                                                  |                                                                  |               |     |     |      |  
|                                                  | Expenditures for additions to long-lived assets under IFRS       |               |     | 317 |      |   |     | 272 |  
|                                                  | Difference, principally development costs capitalized under IFRS |               |     | (51 | )    |   |     | (11 | )
|                                                  |                                                                  |               |     |     |      |  
|                                                  |                                                                  | $             | 266 |     |      | $ | 261 |    
|                                                  |                                                                  |               |     |     |      |  






|  |                                                                             
|- | ----------------------------------------------------------------------------
|* | Includes equipment on operating leases and property, plant and
    equipment

|                                                           |                                                                               |               |   |     |      |  |   |     |  
|---------------------------------------------------------- | ----------------------------------------------------------------------------- | ------------- | - | --- | ---- |  | - | --- | -
|                                                           |                                                                               | 2005          |   |     | 2004 | 
|                                                           |                                                                               |               |   |     |      | 
|                                                           |                                                                               | (in millions) |  
|Investments in unconsolidated subsidiaries and affiliates: |                                                                               |               |   |     |      |  |   |    
|                                                           | Agricultural equipment                                                        |               | $ | 175 |      |  | $ | 187 |  
|                                                           | Construction equipment                                                        |               |   | 181 |      |  |   | 188 |  
|                                                           | Financial services                                                            |               |   | 96  |      |  |   | 84  |  
|                                                           |                                                                               |               |   |     |      | 
|                                                           | Investments in unconsolidated subsidiaries and affiliates under
    IFRS      |               |   | 452 |      |  |   | 459 |  
|                                                           | Difference, principally historical goodwill                                   |               |   | (3  | )    |  |   | (2  | )
|                                                           |                                                                               |               |   |     |      | 
|                                                           | Investments in unconsolidated subsidiaries and affiliates under
    U.S. GAAP |               | $ | 449 |      |  | $ | 457 |  
|                                                           |                                                                               |               |   |     |      | 

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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                         
| | ------------------------
| | Geographical Information



|                                                   |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       |  |   |       |  |  |   |        | 
|-------------------------------------------------- |  | ------------- | ----- |  | ------ | - | ------ | ------- |  | - | ----- |  |  | ------- | ----- |  | ----- | - | ----- | ----- |  | - | ----- |  |  | - | ------ | 
|                                                   |  | United        |       |  |        |   | United |         |  |   |       |  |  |         |       | 
|                                                   |  | States        |       |  | Canada |   |        | Kingdom |  |   | Italy |  |  | Belgium |       |  | Other |   |       | Total | 
|                                                   |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       | 
|                                                   |  | (in millions) |      
|At December 31, 2005, and for the year then ended: |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       |  |   |       |  |  |   |        | 
|Total revenues                                     |  | $             | 5,435 |  |        | $ | 915    |         |  | $ | 1,292 |  |  | $       | 2,422 |  |       | $ | 1,125 |       |  | $ | 1,386 |  |  | $ | 12,575 | 
|                                                   |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       | 
|Long-lived assets*                                 |  | $             | 667   |  |        | $ | 79     |         |  | $ | 121   |  |  | $       | 173   |  |       | $ | 116   |       |  | $ | 335   |  |  | $ | 1,491  | 
|                                                   |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       | 
|At December 31, 2004, and for the year then ended: |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       |  |   |       |  |  |   |        | 
|Total revenues                                     |  | $             | 4,921 |  |        | $ | 776    |         |  | $ | 1,564 |  |  | $       | 2,239 |  |       | $ | 1,035 |       |  | $ | 1,644 |  |  | $ | 12,179 | 
|                                                   |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       | 
|Long-lived assets*                                 |  | $             | 679   |  |        | $ | 88     |         |  | $ | 146   |  |  | $       | 276   |  |       | $ | 143   |       |  | $ | 361   |  |  | $ | 1,693  | 
|                                                   |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       | 
|At December 31, 2003, and for the year then ended: |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       |  |   |       |  |  |   |        | 
|Total revenues                                     |  | $             | 4,036 |  |        | $ | 701    |         |  | $ | 1,594 |  |  | $       | 2,116 |  |       | $ | 942   |       |  | $ | 1,277 |  |  | $ | 10,666 | 
|                                                   |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       | 
|Long-lived assets*                                 |  | $             | 880   |  |        | $ | 94     |         |  | $ | 139   |  |  | $       | 268   |  |       | $ | 151   |       |  | $ | 349   |  |  | $ | 1,881  | 
|                                                   |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       | 




|  |                                                                              
|- | -----------------------------------------------------------------------------
|* | Includes equipment on operating leases and property, plant and
    equipment.



Note 22: Related Party Information






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##### Table of Contents



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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




 










F-58



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)
















F-59



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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                  |                           |               |     |     |      |   |     |      |  |   |     |     | 
|----------------------------------------------------------------- | ------------------------- | ------------- | --- | --- | ---- | - | --- | ---- |  | - | --- | --- | 
|                                                                  |                           | 2005          |     |     | 2004 |   |     | 2003 | 
|                                                                  |                           |               |     |     |      |   |     |      | 
|                                                                  |                           | (in millions) |    
|Sales of equipment                                                |                           | $             | 6   |     |      | $ | 9   |      |  | $ | 6   |    
|Sales to affiliated companies and joint ventures                  |                           |               | 115 |     |      |   | 115 |      |  |   | 179 |    
|                                                                  |                           |               |     |     |      |   |     |      | 
|                                                                  | Total sales to affiliates |               |     | 121 |      |   | $   | 124  |  |   | $   | 185 | 
|                                                                  |                           |               |     |     |      |   |     |      | 
|Purchase of materials, production parts, merchandise and services |                           | $             | 525 |     |      | $ | 565 |      |  | $ | 584 |    
|                                                                  |                           |               |     |     |      |   |     |      | 
|Finance and interest income                                       |                           | $             | 41  |     |      | $ | 28  |      |  | $ | 25  |    
|                                                                  |                           |               |     |     |      |   |     |      | 

Note 23: Supplemental Condensed Consolidating Financial
Information


1 4 1 4




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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |  |              |       |       |              |  |        |        |   |  |        |        | 
|------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------ | -- | --- | ------------ |  | --- | ------------ | - |  | ------------ | ----- |  | ------------ | ----- | ----- | ------------ |  | ------ | ------ | - |  | ------ | ------ | 
|                   |                                                                                                                                                                                    | Condensed Statements of Operations   |   
|                   |                                                                                                                                                                                    | For the Year Ended December 31, 2005 |   
|                   |                                                                                                                                                                                    |                                      |   
|                   |                                                                                                                                                                                    | CNH                                  |    |     |             
|                   |                                                                                                                                                                                    | Global                               |    |     | Case New     |  |     | Guarantor    |   |  | All Other    |       |  |             
|                   |                                                                                                                                                                                    | N.V.                                 |    |     | Holland Inc. |  |     | Subsidiaries |   |  | Subsidiaries |       |  | Eliminations |       |       | Consolidated | 
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |  |              |       |       |              | 
|                   |                                                                                                                                                                                    | (in millions)                        |   
|Revenues:          |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |  |              |       |       |              |  |        |        |   |  |        |       
|                   | Net sales                                                                                                                                                                          |                                      | $  |    |              |  | $   |             |   |  | $            | 9,085 |  |              | $     | 5,766 |              |  | $      | (3,045 | ) |  | $      | 11,806 | 
|                   | Finance and interest income                                                                                                                                                        |                                      |    | 35  |              |  |     | 110          |   |  |              | 87    |  |              |       | 823   |              |  |        | (286   | ) |  |        | 769    | 
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |  |              |       |       |              | 
|                   |                                                                                                                                                                                    |                                      | 35 |     |              |  | 110 |              |   |  | 9,172        |       |  |              | 6,589 |       |              |  | (3,331 | )      |   |  | 12,575 |       
|Cost and Expenses: |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |  |              |       |       |              |  |        |        |   |  |        |       
|                   | Cost of goods sold                                                                                                                                                                 |                                      |    |     |              |  |     |             |   |  |              | 7,893 |  |              |       | 5,086 |              |  |        | (3,045 | ) |  |        | 9,934  | 
|                   | Selling, general and administrative                                                                                                                                                |                                      |    | 2   |              |  |     |             |   |  |              | 589   |  |              |       | 593   |              |  |        |       |   |  |        | 1,184  | 
|                   | Research, development and engineering                                                                                                                                              |                                      |    |    |              |  |     |             |   |  |              | 211   |  |              |       | 85    |              |  |        |       |   |  |        | 296    | 
|                   | Restructuring                                                                                                                                                                      |                                      |    |    |              |  |     |             |   |  |              | 18    |  |              |       | 55    |              |  |        |       |   |  |        | 73     | 
|                   | Interest expense                                                                                                                                                                   |                                      |    | 55  |              |  |     | 139          |   |  |              | 122   |  |              |       | 418   |              |  |        | (183   | ) |  |        | 551    | 
|                   | Interest compensation to Financial Services                                                                                                                                        |                                      |    |    |              |  |     |             |   |  |              | 159   |  |              |       |      |              |  |        | (159   | ) |  |        |       | 
|                   | Other, net                                                                                                                                                                         |                                      |    | 15  |              |  |     |              |   |  |              | 118   |  |              |       | 91    |              |  |        | 56     |   |  |        | 280    | 
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |  |              |       |       |              | 
|                   |                                                                                                                                                                                    |                                      | 72 |     |              |  | 139 |              |   |  | 9,110        |       |  |              | 6,328 |       |              |  | (3,331 | )      |   |  | 12,318 |       
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |  |              |       |       |              | 
|                   | Income (loss) before taxes, minority interest and equity in
    income (loss) of unconsolidated affiliates and consolidated
    subsidiaries accounted for under the equity method |                                      |    | (37 | )            |  |     | (29          | ) |  |              | 62    |  |              |       | 261   |              |  |        |       |   |  |        | 257    | 
|                   | Income tax provision (benefit)                                                                                                                                                     |                                      |    | (1  | )            |  |     | (12          | ) |  |              | 92    |  |              |       | 37    |              |  |        |        |   |  |        | 116    | 
|                   | Minority interest                                                                                                                                                                  |                                      |    |    |              |  |     |             |   |  |              |      |  |              |       | 26    |              |  |        |       |   |  |        | 26     | 
|                   | Equity in income (loss) of unconsolidated affiliates and
    consolidated subsidiaries accounted for under the equity method                                                       |                                      |    | 199 |              |  |     | 127          |   |  |              | 177   |  |              |       | (112  | )            |  |        | (343   | ) |  |        | 48     | 
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |  |              |       |       |              | 
|                   | Net income (loss)                                                                                                                                                                  |                                      | $  | 163 |              |  | $   | 110          |   |  | $            | 147   |  |              | $     | 86    |              |  | $      | (343   | ) |  | $      | 163    | 
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |  |              |       |       |              | 

F-61



---



##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              |  |        |        |         |   |        |       |        | 
|----------------------- | ---------------------------------------------------------------------------------- | ---------------------------- | ----- | ----- | ------------ |  | ----- | ------------ | ----- |  | ------------ | ----- | ------ | ------------ | ----- | ----- | ------------ |  | ------ | ------ | ------- | - | ------ | ----- | ------ | 
|                        |                                                                                    | Condensed Balance Sheets     |      
|                        |                                                                                    | As of December 31, 2005      |      
|                        |                                                                                    |                              |      
|                        |                                                                                    | CNH                          |       |       |             
|                        |                                                                                    | Global                       |       |       | Case New     |  |       | Guarantor    |       |  | All Other    |       |        |             
|                        |                                                                                    | N.V.                         |       |       | Holland Inc. |  |       | Subsidiaries |       |  | Subsidiaries |       |        | Eliminations |       |       | Consolidated | 
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    | (in millions)                |      
|Assets:                 |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              |  |        |        |         |   |        |      
|                        | Cash and cash equivalents                                                          |                              | $     |      |              |  | $     | 653          |       |  | $            | 90    |        |              | $     | 502   |              |  | $      |       |         |   | $      | 1,245 |       
|                        | Deposits in Fiat affiliates cash management pools                                  |                              |       | 66    |              |  |       |             |       |  |              | 145   |        |              |       | 369   |              |  |        |       |         |   |        | 580   |       
|                        | Accounts, notes receivable and other, net                                          |                              |       | 82    |              |  |       | 19           |       |  |              | 735   |        |              |       | 5,741 |              |  |        | (736   | )       |   |        | 5,841 |       
|                        | Intercompany notes receivable                                                      |                              |       | 594   |              |  |       | 1,732        |       |  |              | 1,084 |        |              |       | 328   |              |  |        | (3,738 | )       |   |        |      |       
|                        | Inventories                                                                        |                              |       |      |              |  |       |             |       |  |              | 1,336 |        |              |       | 1,130 |              |  |        |       |         |   |        | 2,466 |       
|                        | Property, plant and equipment, net                                                 |                              |       |      |              |  |       |             |       |  |              | 826   |        |              |       | 485   |              |  |        |       |         |   |        | 1,311 |       
|                        | Equipment on operating leases, net                                                 |                              |       |      |              |  |       |             |       |  |              |      |        |              |       | 180   |              |  |        |       |         |   |        | 180   |       
|                        | Investments in unconsolidated affiliates                                           |                              |       | 314   |              |  |       |             |       |  |              | 12    |        |              |       | 123   |              |  |        |       |         |   |        | 449   |       
|                        | Investments in consolidated subsidiaries accounted for under the
    equity method |                              |       | 5,471 |              |  |       | 2,828        |       |  |              | 1,512 |        |              |       | (57   | )            |  |        | (9,754 | )       |   |        |      |       
|                        | Goodwill and intangible assets, net                                                |                              |       | 1     |              |  |       |             |       |  |              | 2,926 |        |              |       | 236   |              |  |        |       |         |   |        | 3,163 |       
|                        | Other assets                                                                       |                              |       | 15    |              |  |       | 17           |       |  |              | 1,341 |        |              |       | 800   |              |  |        | (90    | )       |   |        | 2,083 |       
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    | Total Assets                 |       | $     | 6,543        |  |       | $            | 5,249 |  |              | $     | 10,007 |              |       | $     | 9,837        |  |        | $      | (14,318 | ) |        | $     | 17,318 | 
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|Liabilities and Equity: |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              |  |        |        |         |   |        |      
|                        | Short-term debt                                                                    |                              | $     | 245   |              |  | $     |             |       |  | $            | 686   |        |              | $     | 591   |              |  | $      |       |         |   | $      | 1,522 |       
|                        | Intercompany short-term debt                                                       |                              |       | 971   |              |  |       |             |       |  |              | 894   |        |              |       | 1,119 |              |  |        | (2,984 | )       |   |        |      |       
|                        | Accounts payable                                                                   |                              |       | 116   |              |  |       | 6            |       |  |              | 986   |        |              |       | 1,205 |              |  |        | (704   | )       |   |        | 1,609 |       
|                        | Long-term debt                                                                     |                              |       | 150   |              |  |       | 1,534        |       |  |              | 557   |        |              |       | 2,524 |              |  |        |       |         |   |        | 4,765 |       
|                        | Intercompany long-term debt                                                        |                              |       |      |              |  |       |             |       |  |              | 525   |        |              |       | 229   |              |  |        | (754   | )       |   |        |      |       
|                        | Accrued and other liabilities                                                      |                              |       | 9     |              |  |       |             |       |  |              | 3,127 |        |              |       | 1,357 |              |  |        | (123   | )       |   |        | 4,370 |       
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    |                              | 1,491 |       |              |  | 1,540 |              |       |  | 6,775        |       |        |              | 7,025 |       |              |  | (4,565 | )      |         |   | 12,266 |      
|Equity                  |                                                                                    |                              | 5,052 |       |              |  | 3,709 |              |       |  | 3,232        |       |        |              | 2,812 |       |              |  | (9,753 | )      |         |   | 5,052  |      
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    | Total Liabilities and Equity |       | $     | 6,543        |  |       | $            | 5,249 |  |              | $     | 10,007 |              |       | $     | 9,837        |  |        | $      | (14,318 | ) |        | $     | 17,318 | 
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 

F-62



---



##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                 |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |   |      |      |     |   |       |     |      |  
|------------------------------------------------ | --------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | ---- | --- | ------------ | - | --- | ------------ | ---- | - | ------------ | --- | ---- | ------------ | ---- | -- | ------------ | - | ---- | ---- | --- | - | ----- | --- | ---- | -
|                                                 |                                                                                                     | Condensed Statements of Cash Flow                                                   |     
|                                                 |                                                                                                     | For the Year Ended December 31, 2005                                                |     
|                                                 |                                                                                                     |                                                                                     |     
|                                                 |                                                                                                     | CNH                                                                                 |      |     |             
|                                                 |                                                                                                     | Global                                                                              |      |     | Case New     |   |     | Guarantor    |      |   | All Other    |     |      |             
|                                                 |                                                                                                     | N.V.                                                                                |      |     | Holland Inc. |   |     | Subsidiaries |      |   | Subsidiaries |     |      | Eliminations |      |    | Consolidated |  
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |  
|                                                 |                                                                                                     | (in millions)                                                                       |     
|Operating Activities:                            |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |   |      |      |     |   |       |    
|                                                 | Net income (loss)                                                                                   |                                                                                     | $    | 163 |              |   | $   | 110          |      |   | $            | 147 |      |              | $    | 86 |              |   | $    | (343 | )   |   | $     | 163 |     
|                                                 | Adjustments to reconcile net income (loss) to net cash provided
    (used) by operating activities: |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |   |      |      |     |   |       |     |     
|                                                 |                                                                                                     | Depreciation and amortization                                                       |      |     |             |   |     |              |     |   |              |     | 170  |              |      |    | 139          |   |      |      |    |   |       |     | 309  |  
|                                                 |                                                                                                     | Intercompany activity                                                               |      |     |             |   |     |              | 4    |   |              |     | 23   |              |      |    | (27          | ) |      |      |    |   |       |     |     |  
|                                                 |                                                                                                     | Changes in operating assets and liabilities                                         |      |     | 3            |   |     |              | (13  | ) |              |     | (73  | )            |      |    | (5           | ) |      |      |    |   |       |     | (88  | )
|                                                 |                                                                                                     | Other, net                                                                          |      |     | (136         | ) |     |              | (133 | ) |              |     | 205  |              |      |    | 131          |   |      |      | 98  |   |       |     | 165  |  
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |  
|Net cash provided (used) by operating activities |                                                                                                     |                                                                                     | 30   |     |              |   | (32 | )            |      |   | 472          |     |      |              | 324  |    |              |   | (245 | )    |     |   | 549   |    
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |  
|Investing activities:                            |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |   |      |      |     |   |       |    
|                                                 |                                                                                                     | Expenditures for property, plant and equipment                                      |      |     |             |   |     |              |     |   |              |     | (87  | )            |      |    | (68          | ) |      |      |    |   |       |     | (155 | )
|                                                 |                                                                                                     | Expenditures for equipment on operating leases                                      |      |     |             |   |     |              |     |   |              |     |     |              |      |    | (111         | ) |      |      |    |   |       |     | (111 | )
|                                                 |                                                                                                     | Net (additions) collections from retail receivables and related
    securitizations |      |     |             |   |     |              |     |   |              |     |     |              |      |    | 171          |   |      |      |    |   |       |     | 171  |  
|                                                 |                                                                                                     | Other, net (primarily acquisitions and divestitures)                                |      |     | (104         | ) |     |              |     |   |              |     | 90   |              |      |    | 119          |   |      |      |    |   |       |     | 105  |  
|                                                 |                                                                                                     | (Deposits in) withdrawals from Fiat affiliates cash management
    pools            |      |     | (6           | ) |     |              |     |   |              |     | 597  |              |      |    | (85          | ) |      |      |    |   |       |     | 506  |  
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |  
|Net cash provided (used) by investing activities |                                                                                                     |                                                                                     | (110 | )   |              |   |    |              |      |   | 600          |     |      |              | 26   |    |              |   |     |      |     |   | 516   |    
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |  
|Financing Activities:                            |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |   |      |      |     |   |       |    
|                                                 |                                                                                                     | Intercompany activity                                                               |      |     | 671          |   |     |              | 228  |   |              |     | (827 | )            |      |    | (72          | ) |      |      |    |   |       |     |     |  
|                                                 |                                                                                                     | Net increase (decrease) in indebtedness                                             |      |     | (557         | ) |     |              | 6    |   |              |     | 421  |              |      |    | (609         | ) |      |      |    |   |       |     | (739 | )
|                                                 |                                                                                                     | Dividends paid                                                                      |      |     | (34          | ) |     |              |     |   |              |     |     |              |      |    |             |   |      |      |    |   |       |     | (34  | )
|                                                 |                                                                                                     | Other, net                                                                          |      |     |             |   |     |              |     |   |              |     | (630 | )            |      |    | 385          |   |      |      | 245 |   |       |     |     |  
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |  
|Net cash provided (used) by financing activities |                                                                                                     |                                                                                     | 80   |     |              |   | 234 |              |      |   | (1,036       | )   |      |              | (296 | )  |              |   | 245  |      |     |   | (773  | )  
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |  
|                                                 |                                                                                                     | Other, net                                                                          |      |     |             |   |     |              |     |   |              |     | (7   | )            |      |    | 29           |   |      |      |    |   |       |     | 22   |  
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |  
|Increase (decrease) in cash and cash equivalents |                                                                                                     |                                                                                     |     |     |              |   | 202 |              |      |   | 29           |     |      |              | 83   |    |              |   |     |      |     |   | 314   |    
|Cash and cash equivalents, beginning of year     |                                                                                                     |                                                                                     |     |     |              |   | 451 |              |      |   | 61           |     |      |              | 419  |    |              |   |     |      |     |   | 931   |    
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |  
|Cash and cash equivalents, end of year           |                                                                                                     | $                                                                                   |     |     |              | $ | 653 |              |      | $ | 90           |     |      | $            | 502  |    |              | $ |     |      |     | $ | 1,245 |    
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |     |              |      |   |              |     |      |              |      |    |              |  

F-63



---



##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |   |              |       |       |              |  |        |        |   |  |        |        | 
|------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------ | -- | --- | ------------ |  | --- | ------------ | - |  | ------------ | ----- | - | ------------ | ----- | ----- | ------------ |  | ------ | ------ | - |  | ------ | ------ | 
|                   |                                                                                                                                                                                    | Condensed Statements of Operations   |   
|                   |                                                                                                                                                                                    | For the Year Ended December 31, 2004 |   
|                   |                                                                                                                                                                                    |                                      |   
|                   |                                                                                                                                                                                    | CNH                                  |    |     |             
|                   |                                                                                                                                                                                    | Global                               |    |     | Case New     |  |     | Guarantor    |   |  | All Other    |       |   |             
|                   |                                                                                                                                                                                    | N.V.                                 |    |     | Holland Inc. |  |     | Subsidiaries |   |  | Subsidiaries |       |   | Eliminations |       |       | Consolidated | 
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |   |              |       |       |              | 
|                   |                                                                                                                                                                                    | (in millions)                        |   
|Revenues:          |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |   |              |       |       |              |  |        |        |   |  |        |       
|                   | Net sales                                                                                                                                                                          |                                      | $  |    |              |  | $   |             |   |  | $            | 8,430 |   |              | $     | 5,779 |              |  | $      | (2,664 | ) |  | $      | 11,545 | 
|                   | Finance and interest income                                                                                                                                                        |                                      |    | 37  |              |  |     | 72           |   |  |              | 60    |   |              |       | 694   |              |  |        | (229   | ) |  |        | 634    | 
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |   |              |       |       |              | 
|                   |                                                                                                                                                                                    |                                      | 37 |     |              |  | 72  |              |   |  | 8,490        |       |   |              | 6,473 |       |              |  | (2,893 | )      |   |  | 12,179 |       
|Cost and Expenses: |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |   |              |       |       |              |  |        |        |   |  |        |       
|                   | Cost of goods sold                                                                                                                                                                 |                                      |    |    |              |  |     |             |   |  |              | 7,373 |   |              |       | 5,079 |              |  |        | (2,670 | ) |  |        | 9,782  | 
|                   | Selling, general and administrative                                                                                                                                                |                                      |    | 5   |              |  |     |             |   |  |              | 532   |   |              |       | 573   |              |  |        |       |   |  |        | 1,110  | 
|                   | Research, development and engineering                                                                                                                                              |                                      |    |    |              |  |     |             |   |  |              | 188   |   |              |       | 79    |              |  |        |       |   |  |        | 267    | 
|                   | Restructuring                                                                                                                                                                      |                                      |    |    |              |  |     |             |   |  |              | 53    |   |              |       | 51    |              |  |        |       |   |  |        | 104    | 
|                   | Interest expense                                                                                                                                                                   |                                      |    | 43  |              |  |     | 122          |   |  |              | 116   |   |              |       | 346   |              |  |        | (135   | ) |  |        | 492    | 
|                   | Interest compensation to Financial Services                                                                                                                                        |                                      |    |    |              |  |     |             |   |  |              | 113   |   |              |       |      |              |  |        | (113   | ) |  |        |       | 
|                   | Other, net                                                                                                                                                                         |                                      |    | 21  |              |  |     |             |   |  |              | 199   |   |              |       | 17    |              |  |        | 28     |   |  |        | 265    | 
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |   |              |       |       |              | 
|                   |                                                                                                                                                                                    |                                      | 69 |     |              |  | 122 |              |   |  | 8,574        |       |   |              | 6,145 |       |              |  | (2,890 | )      |   |  | 12,020 |       
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |   |              |       |       |              | 
|                   | Income (loss) before taxes, minority interest and equity in
    income (loss) of unconsolidated affiliates and consolidated
    subsidiaries accounted for under the equity method |                                      |    | (32 | )            |  |     | (50          | ) |  |              | (84   | ) |              |       | 328   |              |  |        | (3     | ) |  |        | 159    | 
|                   | Income tax provision (benefit)                                                                                                                                                     |                                      |    | 1   |              |  |     | (19          | ) |  |              | (88   | ) |              |       | 145   |              |  |        |       |   |  |        | 39     | 
|                   | Minority interest                                                                                                                                                                  |                                      |    |    |              |  |     |             |   |  |              |      |   |              |       | 23    |              |  |        |       |   |  |        | 23     | 
|                   | Equity in income (loss) of unconsolidated affiliates and
    consolidated subsidiaries accounted for under the equity method                                                       |                                      |    | 158 |              |  |     | 167          |   |  |              | 128   |   |              |       | (77   | )            |  |        | (348   | ) |  |        | 28     | 
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |   |              |       |       |              | 
|                   | Net income (loss)                                                                                                                                                                  |                                      | $  | 125 |              |  | $   | 136          |   |  | $            | 132   |   |              | $     | 83    |              |  | $      | (351   | ) |  | $      | 125    | 
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |   |              |       |       |              | 

F-64



---



##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              |  |         |         |         |   |        |       |        | 
|----------------------- | ---------------------------------------------------------------------------------- | ---------------------------- | ----- | ----- | ------------ |  | ----- | ------------ | ----- |  | ------------ | ----- | ------ | ------------ | ----- | ----- | ------------ |  | ------- | ------- | ------- | - | ------ | ----- | ------ | 
|                        |                                                                                    | Condensed Balance Sheets     |      
|                        |                                                                                    | As of December 31, 2004      |      
|                        |                                                                                    |                              |      
|                        |                                                                                    | CNH                          |       |       |             
|                        |                                                                                    | Global                       |       |       | Case New     |  |       | Guarantor    |       |  | All Other    |       |        |             
|                        |                                                                                    | N.V.                         |       |       | Holland Inc. |  |       | Subsidiaries |       |  | Subsidiaries |       |        | Eliminations |       |       | Consolidated | 
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    | (in millions)                |      
|Assets:                 |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              |  |         |         |         |   |        |      
|                        | Cash and cash equivalents                                                          |                              | $     |      |              |  | $     | 451          |       |  | $            | 61    |        |              | $     | 419   |              |  | $       |        |         |   | $      | 931   |       
|                        | Deposits in Fiat affiliates cash management pools                                  |                              |       | 60    |              |  |       |             |       |  |              | 750   |        |              |       | 341   |              |  |         |        |         |   |        | 1,151 |       
|                        | Accounts, notes receivable and other, net                                          |                              |       | 86    |              |  |       | 19           |       |  |              | 816   |        |              |       | 5,537 |              |  |         | (563    | )       |   |        | 5,895 |       
|                        | Intercompany notes receivable                                                      |                              |       | 674   |              |  |       | 1,960        |       |  |              | 543   |        |              |       | 296   |              |  |         | (3,473  | )       |   |        |      |       
|                        | Inventories                                                                        |                              |       |      |              |  |       |             |       |  |              | 1,236 |        |              |       | 1,279 |              |  |         |        |         |   |        | 2,515 |       
|                        | Property, plant and equipment, net                                                 |                              |       |      |              |  |       |             |       |  |              | 904   |        |              |       | 574   |              |  |         |        |         |   |        | 1,478 |       
|                        | Equipment on operating leases, net                                                 |                              |       |      |              |  |       |             |       |  |              |      |        |              |       | 215   |              |  |         |        |         |   |        | 215   |       
|                        | Investments in unconsolidated affiliates                                           |                              |       | 214   |              |  |       |             |       |  |              | 102   |        |              |       | 141   |              |  |         |        |         |   |        | 457   |       
|                        | Investments in consolidated subsidiaries accounted for under the
    equity method |                              |       | 5,463 |              |  |       | 2,942        |       |  |              | 1,347 |        |              |       | 278   |              |  |         | (10,030 | )       |   |        |      |       
|                        | Goodwill and intangible assets, net                                                |                              |       | 1     |              |  |       |             |       |  |              | 2,993 |        |              |       | 242   |              |  |         |        |         |   |        | 3,236 |       
|                        | Other assets                                                                       |                              |       | 2     |              |  |       | 16           |       |  |              | 1,543 |        |              |       | 1,011 |              |  |         | (370    | )       |   |        | 2,202 |       
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    | Total Assets                 |       | $     | 6,500        |  |       | $            | 5,388 |  |              | $     | 10,295 |              |       | $     | 10,333       |  |         | $       | (14,436 | ) |        | $     | 18,080 | 
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|Liabilities and Equity: |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              |  |         |         |         |   |        |      
|                        | Short-term debt                                                                    |                              | $     | 252   |              |  | $     |             |       |  | $            | 91    |        |              | $     | 1,714 |              |  | $       |        |         |   | $      | 2,057 |       
|                        | Intercompany short-term debt                                                       |                              |       | 79    |              |  |       |             |       |  |              | 1,109 |        |              |       | 454   |              |  |         | (1,642  | )       |   |        |      |       
|                        | Accounts payable                                                                   |                              |       | 128   |              |  |       | 2            |       |  |              | 1,003 |        |              |       | 1,310 |              |  |         | (786    | )       |   |        | 1,657 |       
|                        | Long-term debt                                                                     |                              |       | 700   |              |  |       | 1,528        |       |  |              | 723   |        |              |       | 1,955 |              |  |         |        |         |   |        | 4,906 |       
|                        | Intercompany long-term debt                                                        |                              |       | 301   |              |  |       |             |       |  |              | 596   |        |              |       | 934   |              |  |         | (1,831  | )       |   |        |      |       
|                        | Accrued and other liabilities                                                      |                              |       | 11    |              |  |       | 15           |       |  |              | 3,092 |        |              |       | 1,460 |              |  |         | (147    | )       |   |        | 4,431 |       
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    |                              | 1,471 |       |              |  | 1,545 |              |       |  | 6,614        |       |        |              | 7,827 |       |              |  | (4,406  | )       |         |   | 13,051 |      
|Equity                  |                                                                                    |                              | 5,029 |       |              |  | 3,843 |              |       |  | 3,681        |       |        |              | 2,506 |       |              |  | (10,030 | )       |         |   | 5,029  |      
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    | Total Liabilities and Equity |       | $     | 6,500        |  |       | $            | 5,388 |  |              | $     | 10,295 |              |       | $     | 10,333       |  |         | $       | (14,436 | ) |        | $     | 18,080 | 
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 

F-65



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                 |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |   |        |      |        |   |      |     |      |  
|------------------------------------------------ | --------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | ---- | --- | ------------ | - | ------ | ------------ | ------ | - | ------------ | --- | ------ | ------------ | ---- | -- | ------------ | - | ------ | ---- | ------ | - | ---- | --- | ---- | -
|                                                 |                                                                                                     | Condensed Statements of Cash Flow                                                   |     
|                                                 |                                                                                                     | For the Year Ended December 31, 2004                                                |     
|                                                 |                                                                                                     |                                                                                     |     
|                                                 |                                                                                                     | CNH                                                                                 |      |     |             
|                                                 |                                                                                                     | Global                                                                              |      |     | Case New     |   |        | Guarantor    |        |   | All Other    |     |        |             
|                                                 |                                                                                                     | N.V.                                                                                |      |     | Holland Inc. |   |        | Subsidiaries |        |   | Subsidiaries |     |        | Eliminations |      |    | Consolidated |  
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |  
|                                                 |                                                                                                     | (in millions)                                                                       |     
|Operating Activities:                            |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |   |        |      |        |   |      |    
|                                                 | Net income (loss)                                                                                   |                                                                                     | $    | 125 |              |   | $      | 136          |        |   | $            | 132 |        |              | $    | 83 |              |   | $      | (351 | )      |   | $    | 125 |     
|                                                 | Adjustments to reconcile net income (loss) to net cash provided
    (used) by operating activities: |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |   |        |      |        |   |      |     |     
|                                                 |                                                                                                     | Depreciation and amortization                                                       |      |     |             |   |        |              |       |   |              |     | 168    |              |      |    | 157          |   |        |      |       |   |      |     | 325  |  
|                                                 |                                                                                                     | Intercompany activity                                                               |      |     | 52           |   |        |              | (15    | ) |              |     | 526    |              |      |    | (563         | ) |        |      |       |   |      |     |     |  
|                                                 |                                                                                                     | Changes in operating assets and liabilities                                         |      |     | (54          | ) |        |              | (10    | ) |              |     | 240    |              |      |    | 384          |   |        |      |       |   |      |     | 560  |  
|                                                 |                                                                                                     | Other, net                                                                          |      |     | (72          | ) |        |              | (97    | ) |              |     | (72    | )            |      |    | 71           |   |        |      | 130    |   |      |     | (40  | )
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |  
|Net cash provided (used) by operating activities |                                                                                                     |                                                                                     | 51   |     |              |   | 14     |              |        |   | 994          |     |        |              | 132  |    |              |   | (221   | )    |        |   | 970  |    
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |  
|Investing activities:                            |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |   |        |      |        |   |      |    
|                                                 |                                                                                                     | Expenditures for property, plant and equipment                                      |      |     |             |   |        |              |       |   |              |     | (103   | )            |      |    | (77          | ) |        |      |       |   |      |     | (180 | )
|                                                 |                                                                                                     | Expenditures for equipment on operating leases                                      |      |     |             |   |        |              |       |   |              |     |       |              |      |    | (81          | ) |        |      |       |   |      |     | (81  | )
|                                                 |                                                                                                     | Net (additions) collections from retail receivables and related
    securitizations |      |     |             |   |        |              |       |   |              |     |       |              |      |    | (569         | ) |        |      |       |   |      |     | (569 | )
|                                                 |                                                                                                     | Other, net (primarily acquisitions and divestitures)                                |      |     | (583         | ) |        |              | (1,526 | ) |              |     | (37    | )            |      |    | (85          | ) |        |      | 2,448  |   |      |     | 217  |  
|                                                 |                                                                                                     | (Deposits in) withdrawals from Fiat affiliates cash management
    pools            |      |     | (27          | ) |        |              |       |   |              |     | 259    |              |      |    | (15          | ) |        |      |       |   |      |     | 217  |  
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |  
|Net cash provided (used) by investing activities |                                                                                                     |                                                                                     | (610 | )   |              |   | (1,526 | )            |        |   | 119          |     |        |              | (827 | )  |              |   | 2,448  |      |        |   | (396 | )  
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |  
|Financing Activities:                            |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |   |        |      |        |   |      |    
|                                                 |                                                                                                     | Intercompany activity                                                               |      |     | 656          |   |        |              | 236    |   |              |     | (529   | )            |      |    | (363         | ) |        |      |       |   |      |     |     |  
|                                                 |                                                                                                     | Net increase (decrease) in indebtedness                                             |      |     | (64          | ) |        |              | 476    |   |              |     | (1,097 | )            |      |    | 442          |   |        |      |       |   |      |     | (243 | )
|                                                 |                                                                                                     | Dividends paid                                                                      |      |     | (33          | ) |        |              |       |   |              |     |       |              |      |    |             |   |        |      |       |   |      |     | (33  | )
|                                                 |                                                                                                     | Other, net                                                                          |      |     |             |   |        |              | 938    |   |              |     | 449    |              |      |    | 839          |   |        |      | (2,227 | ) |      |     | (1   | )
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |  
|Net cash provided (used) by financing activities |                                                                                                     |                                                                                     | 559  |     |              |   | 1,650  |              |        |   | (1,177       | )   |        |              | 918  |    |              |   | (2,227 | )    |        |   | (277 | )  
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |  
|                                                 |                                                                                                     | Other, net                                                                          |      |     |             |   |        |              |       |   |              |     | 40     |              |      |    | (25          | ) |        |      |       |   |      |     | 15   |  
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |  
|Increase (decrease) in cash and cash equivalents |                                                                                                     |                                                                                     |     |     |              |   | 138    |              |        |   | (24          | )   |        |              | 198  |    |              |   |       |      |        |   | 312  |    
|Cash and cash equivalents, beginning of year     |                                                                                                     |                                                                                     |     |     |              |   | 313    |              |        |   | 85           |     |        |              | 221  |    |              |   |       |      |        |   | 619  |    
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |  
|Cash and cash equivalents, end of year           |                                                                                                     | $                                                                                   |     |     |              | $ | 451    |              |        | $ | 61           |     |        | $            | 419  |    |              | $ |       |      |        | $ | 931  |    
|                                                 |                                                                                                     |                                                                                     |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |  

F-66



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                   |                                                                                                                                                                                    |                                      |    |      |              |  |    |              |   |  |              |       |   |              |       |       |              |  |        |        |   |  |        |        |  
|------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------ | -- | ---- | ------------ |  | -- | ------------ | - |  | ------------ | ----- | - | ------------ | ----- | ----- | ------------ |  | ------ | ------ | - |  | ------ | ------ | -
|                   |                                                                                                                                                                                    | Condensed Statements of Operations   |   
|                   |                                                                                                                                                                                    | For the Year Ended December 31, 2003 |   
|                   |                                                                                                                                                                                    |                                      |   
|                   |                                                                                                                                                                                    | CNH                                  |    |      |             
|                   |                                                                                                                                                                                    | Global                               |    |      | Case New     |  |    | Guarantor    |   |  | All Other    |       |   |             
|                   |                                                                                                                                                                                    | N.V.                                 |    |      | Holland Inc. |  |    | Subsidiaries |   |  | Subsidiaries |       |   | Eliminations |       |       | Consolidated | 
|                   |                                                                                                                                                                                    |                                      |    |      |              |  |    |              |   |  |              |       |   |              |       |       |              | 
|                   |                                                                                                                                                                                    | (in millions)                        |   
|Revenues:          |                                                                                                                                                                                    |                                      |    |      |              |  |    |              |   |  |              |       |   |              |       |       |              |  |        |        |   |  |        |       
|                   | Net sales                                                                                                                                                                          |                                      | $  |     |              |  | $  |             |   |  | $            | 7,806 |   |              | $     | 5,025 |              |  | $      | (2,762 | ) |  | $      | 10,069 |  
|                   | Finance and interest income                                                                                                                                                        |                                      |    | 61   |              |  |    | 19           |   |  |              | 52    |   |              |       | 651   |              |  |        | (186   | ) |  |        | 597    |  
|                   |                                                                                                                                                                                    |                                      |    |      |              |  |    |              |   |  |              |       |   |              |       |       |              | 
|                   |                                                                                                                                                                                    |                                      | 61 |      |              |  | 19 |              |   |  | 7,858        |       |   |              | 5,676 |       |              |  | (2,948 | )      |   |  | 10,666 |       
|Cost and Expenses: |                                                                                                                                                                                    |                                      |    |      |              |  |    |              |   |  |              |       |   |              |       |       |              |  |        |        |   |  |        |       
|                   | Cost of goods sold                                                                                                                                                                 |                                      |    |     |              |  |    |             |   |  |              | 6,915 |   |              |       | 4,446 |              |  |        | (2,771 | ) |  |        | 8,590  |  
|                   | Selling, general and administrative                                                                                                                                                |                                      |    | 9    |              |  |    | 2            |   |  |              | 496   |   |              |       | 535   |              |  |        |       |   |  |        | 1,042  |  
|                   | Research, development and engineering                                                                                                                                              |                                      |    |     |              |  |    |             |   |  |              | 180   |   |              |       | 79    |              |  |        |       |   |  |        | 259    |  
|                   | Restructuring                                                                                                                                                                      |                                      |    |     |              |  |    |             |   |  |              | 187   |   |              |       | 84    |              |  |        |       |   |  |        | 271    |  
|                   | Interest expense                                                                                                                                                                   |                                      |    | 66   |              |  |    | 38           |   |  |              | 134   |   |              |       | 366   |              |  |        | (123   | ) |  |        | 481    |  
|                   | Interest compensation to Financial Services                                                                                                                                        |                                      |    |     |              |  |    |             |   |  |              | 79    |   |              |       |      |              |  |        | (79    | ) |  |        |       |  
|                   | Other, net                                                                                                                                                                         |                                      |    | 10   |              |  |    | (1           | ) |  |              | 128   |   |              |       | 79    |              |  |        | 25     |   |  |        | 241    |  
|                   |                                                                                                                                                                                    |                                      |    |      |              |  |    |              |   |  |              |       |   |              |       |       |              | 
|                   |                                                                                                                                                                                    |                                      | 85 |      |              |  | 39 |              |   |  | 8,119        |       |   |              | 5,589 |       |              |  | (2,948 | )      |   |  | 10,884 |       
|                   |                                                                                                                                                                                    |                                      |    |      |              |  |    |              |   |  |              |       |   |              |       |       |              | 
|                   | Income (loss) before taxes, minority interest and equity in
    income (loss) of unconsolidated affiliates and consolidated
    subsidiaries accounted for under the equity method |                                      |    | (24  | )            |  |    | (20          | ) |  |              | (261  | ) |              |       | 87    |              |  |        |       |   |  |        | (218   | )
|                   | Income tax provision (benefit)                                                                                                                                                     |                                      |    | 4    |              |  |    | (8           | ) |  |              | (119  | ) |              |       | 74    |              |  |        |       |   |  |        | (49    | )
|                   | Minority interest                                                                                                                                                                  |                                      |    |     |              |  |    |             |   |  |              |      |   |              |       | 7     |              |  |        |       |   |  |        | 7      |  
|                   | Equity in income (loss) of unconsolidated affiliates and
    consolidated subsidiaries accounted for under the equity method                                                       |                                      |    | (129 | )            |  |    | (109         | ) |  |              | 11    |   |              |       | 66    |              |  |        | 180    |   |  |        | 19     |  
|                   |                                                                                                                                                                                    |                                      |    |      |              |  |    |              |   |  |              |       |   |              |       |       |              | 
|                   | Net income (loss)                                                                                                                                                                  |                                      | $  | (157 | )            |  | $  | (121         | ) |  | $            | (131  | ) |              | $     | 72    |              |  | $      | 180    |   |  | $      | (157   | )
|                   |                                                                                                                                                                                    |                                      |    |      |              |  |    |              |   |  |              |       |   |              |       |       |              | 

F-67



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                 |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |   |        |     |        |   |      |      |      |  
|------------------------------------------------ | --------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | ------ | ---- | ------------ | - | ------ | ------------ | ------ | - | ------------ | ---- | ----- | ------------ | ------ | -- | ------------ | - | ------ | --- | ------ | - | ---- | ---- | ---- | -
|                                                 |                                                                                                     | Condensed Statements of Cash Flow                                                   |       
|                                                 |                                                                                                     | For the Year Ended December 31, 2003                                                |       
|                                                 |                                                                                                     |                                                                                     |       
|                                                 |                                                                                                     | CNH                                                                                 |        |      |             
|                                                 |                                                                                                     | Global                                                                              |        |      | Case New     |   |        | Guarantor    |        |   | All Other    |      |       |             
|                                                 |                                                                                                     | N.V.                                                                                |        |      | Holland Inc. |   |        | Subsidiaries |        |   | Subsidiaries |      |       | Eliminations |        |    | Consolidated |  
|                                                 |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |  
|                                                 |                                                                                                     | (in millions)                                                                       |       
|Operating Activities:                            |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |   |        |     |        |   |      |     
|                                                 | Net income (loss)                                                                                   |                                                                                     | $      | (157 | )            |   | $      | (121         | )      |   | $            | (131 | )     |              | $      | 72 |              |   | $      | 180 |        |   | $    | (157 | )   
|                                                 | Adjustments to reconcile net income (loss) to net cash provided
    (used) by operating activities: |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |   |        |     |        |   |      |      |     
|                                                 |                                                                                                     | Depreciation and amortization                                                       |        |      |             |   |        |              |       |   |              |      | 171   |              |        |    | 175          |   |        |     |       |   |      |      | 346  |  
|                                                 |                                                                                                     | Intercompany activity                                                               |        |      | 95           |   |        |              | (2     | ) |              |      | (498  | )            |        |    | 405          |   |        |     |       |   |      |      |     |  
|                                                 |                                                                                                     | Changes in operating assets and liabilities                                         |        |      | 32           |   |        |              | 27     |   |              |      | (319  | )            |        |    | 763          |   |        |     |       |   |      |      | 503  |  
|                                                 |                                                                                                     | Other, net                                                                          |        |      | 91           |   |        |              | 109    |   |              |      | 334   |              |        |    | (250         | ) |        |     | (180   | ) |      |      | 104  |  
|                                                 |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |  
|Net cash provided (used) by operating activities |                                                                                                     |                                                                                     | 61     |      |              |   | 13     |              |        |   | (443         | )    |       |              | 1,165  |    |              |   |       |     |        |   | 796  |     
|                                                 |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |  
|Investing activities:                            |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |   |        |     |        |   |      |     
|                                                 |                                                                                                     | Expenditures for property, plant and equipment                                      |        |      |             |   |        |              |       |   |              |      | (111  | )            |        |    | (83          | ) |        |     |       |   |      |      | (194 | )
|                                                 |                                                                                                     | Expenditures for equipment on operating leases                                      |        |      |             |   |        |              |       |   |              |      |      |              |        |    | (51          | ) |        |     |       |   |      |      | (51  | )
|                                                 |                                                                                                     | Net (additions) collections from retail receivables and related
    securitizations |        |      |             |   |        |              |       |   |              |      |      |              |        |    | (192         | ) |        |     |       |   |      |      | (192 | )
|                                                 |                                                                                                     | Other, net (primarily acquisitions and divestitures)                                |        |      | (1,977       | ) |        |              | (1,115 | ) |              |      | (1    | )            |        |    | 150          |   |        |     | 3,115  |   |      |      | 172  |  
|                                                 |                                                                                                     | (Deposits in) withdrawals from Fiat affiliates cash management
    pools            |        |      | (33          | ) |        |              |       |   |              |      | (856  | )            |        |    | 174          |   |        |     |       |   |      |      | (715 | )
|                                                 |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |  
|Net cash provided (used) by investing activities |                                                                                                     |                                                                                     | (2,010 | )    |              |   | (1,115 | )            |        |   | (968         | )    |       |              | (2     | )  |              |   | 3,115  |     |        |   | (980 | )   
|                                                 |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |  
|Financing Activities:                            |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |   |        |     |        |   |      |     
|                                                 |                                                                                                     | Intercompany activity                                                               |        |      | 1,766        |   |        |              | (1,618 | ) |              |      | 630   |              |        |    | (778         | ) |        |     |       |   |      |      |     |  
|                                                 |                                                                                                     | Net increase (decrease) in indebtedness                                             |        |      | 216          |   |        |              | 1,052  |   |              |      | (287  | )            |        |    | (391         | ) |        |     |       |   |      |      | 590  |  
|                                                 |                                                                                                     | Dividends paid                                                                      |        |      | (33          | ) |        |              |       |   |              |      |      |              |        |    |             |   |        |     |       |   |      |      | (33  | )
|                                                 |                                                                                                     | Other, net                                                                          |        |      |             |   |        |              | 1,981  |   |              |      | 1,115 |              |        |    |             |   |        |     | (3,115 | ) |      |      | (19  | )
|                                                 |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |  
|Net cash provided (used) by financing activities |                                                                                                     |                                                                                     | 1,949  |      |              |   | 1,415  |              |        |   | 1,458        |      |       |              | (1,169 | )  |              |   | (3,115 | )   |        |   | 538  |     
|                                                 |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |  
|                                                 |                                                                                                     | Other, net                                                                          |        |      |             |   |        |              |       |   |              |      | 4     |              |        |    | 30           |   |        |     |       |   |      |      | 34   |  
|                                                 |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |  
|Increase (decrease) in cash and cash equivalents |                                                                                                     |                                                                                     |       |      |              |   | 313    |              |        |   | 51           |      |       |              | 24     |    |              |   |       |     |        |   | 388  |     
|Cash and cash equivalents, beginning of year     |                                                                                                     |                                                                                     |       |      |              |   |       |              |        |   | 34           |      |       |              | 197    |    |              |   |       |     |        |   | 231  |     
|                                                 |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |  
|Cash and cash equivalents, end of year           |                                                                                                     | $                                                                                   |       |      |              | $ | 313    |              |        | $ | 85           |      |       | $            | 221    |    |              | $ |       |     |        | $ | 619  |     
|                                                 |                                                                                                     |                                                                                     |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |  

F-68



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 24: Subsequent Events








F-69



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##### Table of Contents



SIGNATURE


20-F




| |                        
| | -----------------------
| | CNH GLOBAL N.V.        
| | (Registrant)           
|
| | /s/ Michel Lecomte     
| |                        
| | Michel Lecomte         
| | Chief Financial Officer





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##### Table of Contents



INDEX TO EXHIBITS


|        |   |      |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|------- | - | ---- | ----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |   |      | Description
|        |   |      |            
|        | 1 | .1   |             | Amended Articles of Association of CNH Global N.V. (Previously
    filed as Exhibit 2 to Form 6-K of CNH Global N.V. on July 23,
    2004 and incorporated herein by reference).                                                                                                                                                                                                                                                                    
|        | 1 | .2   |             | Regulations of the Board of Directors of CNH Global N.V. dated
    December 8, 1999 (Previously filed as Exhibit 1.2 to the
    annual report on Form 20-F of the registrant for the year
    ended December 31, 1999 (File No. 001-14528) and
    incorporated herein by reference).                                                                                                                                                               
|        | 1 | .3   |             | Resolution of the Board of Directors of CNH Global N.V. dated
    March 31, 2003 (Previously filed as Exhibit 2 to Form 6-K of CNH
    Global N.V. on April 4, 2003 and incorporated herein by
    reference).                                                                                                                                                                                                                                      
|        | 2 | .1   |             | Registration Rights Agreement entered into among CNH Global
    N.V., Fiat S.p.A. and Sicind S.p.A. dated April 8, 2003
    (Previously filed as Exhibit 2.1 to the annual report on
    Form 20-F of the registrant for the year ended
    December 31, 2002 and incorporated herein by reference).                                                                                                                                                
|        | 2 | .2   |             | Indenture, dated as of August 1, 2003, by and among Case New
    Holland Inc., as issuer, the Guarantors named therein and JP
    Morgan Chase, as trustee (Previously filed as
    Exhibit 10.5.1 to the annual report on Form 20-F of
    the registrant for the year ended December 31, 2003 and
    incorporated herein by reference).                                                                                                          
|        | 2 | .3   |             | First Supplemental Indenture, dated as of September 16, 2003, by
    and among Case New Holland Inc., as issuer, the Guarantors named
    therein and JP Morgan Chase, as trustee (Previously filed as
    Exhibit 10.5.2 to the annual report on Form 20-F of
    the registrant for the year ended December 31, 2003 and
    incorporated herein by reference).                                                                                   
|        | 2 | .4   |             | Indenture, dated as of May 18, 2004 between Case New
    Holland Inc., a subsidiary of CNH Global N.V., as issuer, the
    Guarantors named therein and J.P. Morgan Chase Bank, as trustee,
    regarding 6% Senior Notes due 2009, Series A and 6% Senior
    Notes due 2009, Series B (Previously filed as
    Exhibit 3 to Form 6-K of CNH Global N.V. on
    July 23, 2004 and incorporated herein by reference).                               
|        | 2 | .5   |             | Indenture, dated March 3, 2006, between Case New Holland,
    Inc., as issuer, the Guarantors named therein and J.P. Morgan
    Chase Bank N.A., as trustee, regarding 7.125% Senior Notes due
    2014.                                                                                                                                                                                                                                            
|        |   |      |             | There have not been filed as exhibits to this Form 20-F
    certain long-term debt instruments, none of which relates to
    indebtedness that exceeds 10% of the consolidated assets of CNH
    Global N.V. CNH Global N.V. agrees to furnish the Securities and
    Exchange Commission, upon its request, a copy of any instrument
    defining the rights of holders of long-term debt of CNH Global
    N.V. and its consolidated subsidiaries.
|        | 4 | .1   |             | Outside Directors Compensation Plan of CNH Global N.V. as
    amended and restated May 8, 2003 (Previously filed as
    Exhibit 4.1 to the annual report on Form 20-F of the
    registrant for the year ended December 31, 2003 and
    incorporated herein by reference).                                                                                                                                                                        
|        | 4 | .1.1 |             | Amendment to Outside Directors Compensation Plan of CNH
    Global N.V., dated April 27, 2004 (Previously filed as
    Exhibit 4.1.1 to the annual report on Form 20-F of the
    registrant for the year ended December 31, 2004 and
    incorporated herein by reference).                                                                                                                                                                       
|        | 4 | .1.2 |             | Amendment to Outside Directors Compensation Plan of CNH
    Global N.V., dated May 3, 2005.                                                                                                                                                                                                                                                                                                                                                        
|        | 4 | .2   |             | Equity Incentive Plan of CNH Global N.V. as amended and restated
    on July 23, 2001 (Previously filed as Exhibit 10.1 to the
    Registration Statement on Form F-3 of CNH Global N.V. (File No.
    333-84954) and incorporated herein by reference).                                                                                                                                                                                            
|        | 4 | .2.1 |             | CNH Global N.V. Long-term Incentive Program under the Equity
    Incentive Plan. (Previously filed as Exhibit 4.2.1 to the
    annual report on Form 20-F of the registrant for the year
    ended December 31, 2004 and incorporated herein by
    reference).                                                                                                                                                                                     



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##### Table of Contents



|        |    |      |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|------- | -- | ---- | ----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |      | Description
|        |    |      |            
|        | 4  | .2.2 |             | 2005 Form of Performance Unit Award Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        | 4  | .2.3 |             | 2005 Variable Pay Plan (Management Bonus Program).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 4  | .3   |             | Form of Top Hat Plan Letter. (Previously filed as
    Exhibit 4.3 to the annual report on Form 20-F of the
    registrant for the year ended December 31, 2004 and
    incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                    
|        | 4  | .4   |             | Case New Holland Inc. Deferred Compensation Plan. (Previously
    filed as Exhibit 4.4 to the annual report on Form 20-F
    of the registrant for the year ended December 31, 2004 and
    incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                              
|        | 4  | .5   |             | Amended and Restated Transfer and Administration Agreement dated
    December 15, 2000 between CNH Capital Receivables Inc. as
    Transferor, Case Credit Corporation, in its individual capacity
    and as Servicer, Certain APA Banks named therein, Certain
    Funding Agents named therein and The Chase Manhattan Bank as
    Administrative Agent (Previously filed as Exhibit 10(e)(1) to
    the Annual Report on Form 10-K of Case Credit Corporation (File
    No. 33-80775-01) for the year ended December 31, 2000 and
    incorporated herein by reference).
|        | 4  | .6   |             | First Amendment, dated as of January 15, 2002, to the Amended
    and Restated Transfer and Administration Agreement (Previously
    filed as Exhibit 10.2.2 to the annual report on
    Form 20-F of the registrant for the year ended
    December 31, 2003 and incorporated herein by reference).                                                                                                                                                                                                                                                                        
|        | 4  | .7   |             | Second Amendment, dated as of January 14, 2003, to the Amended
    and Restated Transfer and Administration Agreement (Previously
    filed as Exhibit 10.2.3 to the annual report on
    Form 20-F of the registrant for the year ended
    December 31, 2003 and incorporated herein by reference).                                                                                                                                                                                                                                                                       
|        | 4  | .8   |             | Third Amendment, dated as of January 13, 2004, to the Amended
    and Restated Transfer and Administration Agreement (Previously
    filed as Exhibit 10.2.4 to the annual report on
    Form 20-F of the registrant for the year ended
    December 31, 2003 and incorporated herein by reference).                                                                                                                                                                                                                                                                        
|        | 4  | .9   |             | Fourth Amendment, dated as of April 19, 2004, to the Amended and
    Restated Transfer and Administration Agreement (Previously filed
    as Exhibit 10.2.5 to the annual report on Form 20-F of
    the registrant for the year ended December 31, 2004 and
    incorporated herein by reference).                                                                                                                                                                                                                                                                         
|        | 4  | .10  |             | Fifth Amendment, dated as of January 11, 2005, to the Amended
    and Restated Transfer and Administration Agreement (Previously
    filed as Exhibit 10.2.6 to the annual report on
    Form 20-F of the registrant for the year ended
    December 31, 2004 and incorporated herein by reference).                                                                                                                                                                                                                                                                        
|        | 8  | .1   |             | List of subsidiaries of registrant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 12 | .1   |             | Certification Pursuant to the Securities Exchange Act
    Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 12 | .2   |             | Certification Pursuant to the Securities Exchange Act
    Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 13 |      |             | Certification required by Rule 13(a)-14(b) or
    Rule 15(d)-14(b) and Section 1350 of Chapter 63
    of Title 18 of the United States Code (18 U.S.C. 1350).                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 15 |      |             | Consent of Deloitte & Touche LLP